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Inside This Issue Confined Spaces, New Federal Rule | pg. 32 Growing Skilled Labor from Within | pg. 52 Digital First Impressions | pg. 62


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Publisher’s Desk 219.226.0300 • 317.632.1410

New Year, New Goals

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www.buildingindiana.com www.buildingindianablog.com

brand new year, a clean slate – it’s refreshing isn’t it? It’s time to dust ourselves off from 2013, and roll up our sleeves as 2014 begins. As we begin our new calendar year, it’s important to reflect on the

successes and failures of the previous one. 2013 was a storm of uncertainty with the issues surrounding the fiscal cliff, the sequester, the Affordable Care Act, and the end of federal stimulus monies from several years ago, but it was inspiring to see a bipartisan agreement on the federal budget come through right at the end of the year. Hopefully this will stand out as a solid beginning for 2014, and will work towards restoring confidence in the nation’s overall economic status. Our staff at Building Indiana is optimistic about the new year. Though several of Indiana’s leading economists are predicting economic growth will be at a slower than desired pace, we’re proud of the fact that business is flourishing all over our state. Recently, Indiana Governor Mike Pence announced recordsetting job developments taking place across numerous different businesses, and new studies have shown that Indiana’s output growth is expected to double in 2014, outpacing the nation’s rate. Facts like these prove what we’ve known all

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

along: that Indiana is indeed a state that works for businesses. For our first issue of the new year, Building Indiana is shining the spotlight on education. We’re taking a close look at outreach programs to Indiana’s youth, renewed interest in continued education among older demographics, returns on investment for education, ways that companies can grow skilled workers internally, new educational infrastructure, and so much more. Our goal is to enlighten and inform our readers about the integral role education plays in

Indianapolis Office Business Development Manager Lee Ann Richardson 888.226.0330

Warsaw Office Business Development Manager Julie Monteith 888.226.0330

successful business, and the ways it will brighten Indiana’s future. We hope that the new year brings continued success to you and your company. Building Indiana

Building Indiana is published by Diversified Marketing Strategies

truly is your knowledge network for all things relating to Hoosier business, and we wish you all the

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Andrea M. Pearman Publisher

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

www.buildingindiana.com | JANUARY/FEBRUARY 2014


THE MIDWEST’S LARGEST CIGAR AND LUXURY SHOW

April 24, 2014 5 - 10 PM

5 When to Stop Before You Start® Gambling Problem? Call 1.800.522.4700. ©2012 Caesars License Company, LLC. All Rights Reserved. JANUARY/FEBRUARY 2014 | Know www.buildingindiana.com


Contents J A N U A R Y/ F E B R U A R Y

2014

EVERY ISSUE

04 Publisher’s Desk 08 Contributors 09 Business Buzz 23 People News E X P E RT A DV I C E

28

30

32 38

D E PA R T M E N T S

40

30

State of the Industry New Legislative Topics

BEING PRODUCTIVE

Old Dogs are Learning

New Tricks

44

Construction Feature IU’s New Global and

International Studies Building

50

Construction Feature

Lake Central High School

Expansion and Renovation

52

RULE OF LAW Better Quality of Life for the Future

LOGISTICS

Growing Skilled Labor

from Within

54

Safety Zone Confined Spaces, New Rules

WOrker’s comp

The bottom line Timing is Everything

56

Prescribed and Employed REAL ESTATE

F E AT U R E S

26 PHOTO FEATURE 34 cover story

A Solid Foundation

42

42

Small Business Spotlight Where Are They Now?

46 48

Facts & Stats Education Statistics

Regions Booming

58

YOUR WELL-BEING

Business

60

LIFELONG LEARNING Facts about ROI for Employee Education

62

58

Marketing

Digital First Impressions

64

Economic Development

Eyes on the Horizon

66 the last word

6

Healthy Employees, Healthy

Advanced Manufacturing

Central and Northeast

mass Production

Rail Corridor from Columbus, Ohio to Chicago is a possibility

www.buildingindiana.com | JANUARY/FEBRUARY 2014


THE AMERICAN GROUP OF CONSTRUCTORS

FOUNDATION STONES Determination in our Commitment to Safety Pride in our Workmanship Trust in our Relationships Care in our Stewardship

“A sure foundation inspires confidence, encourages creative thinking, and enables us all to achieve wonderful things...”

Phone: 877-937-1508 | Fax: 219-937-1512 www.tagconstructors.com


Contributors John Sutkowski

the Graduate School of Banking. He completed the American Bankers

John Sutkowski graduated from Purdue University in

Association Commercial Lending School and earned the prestigious

West Lafayette, IN with a Bachelor of Science in Computer

Certified Lender Business Banking designation - awarded to individuals

Graphics Technology; his focus was web development

who demonstrate excellence in the field of small business lending.

with a minor in Computer and Information Technology. Upon graduation he started employment at Royal Brush Mfg. in Munster,

Monica J. Conrad

IN as well as working freelance in his spare time before joining Diversi-

Monica Conrad is a Partner with the Merrillville office of

fied Marketing Strategies in early 2013.

Church, Church, Hittle & Antrim.  In September 2013, Governor Pence appointed Ms. Conrad to the Works Council

Dewey Pearman

for Region 1.  Ms. Conrad has degrees from Indiana State

Dewey Pearman serves as Executive Director for the Con-

University in education and a law degree from Valparaiso University. 

struction Advancement Foundation. He has a Master’s in

Ms. Conrad’s legal practice focuses on school law as well as labor and

Economics from Indiana State University. The foundation

employment matters. 

promotes the union construction industry of northwest Job Site Safety Doug Dicke, Operations Manager, LA. Paul Decker, Operations Manager, IN.

Indiana by helping to enhance its efficiency and competitiveness via labor relations and government management, education, training, safety and workforce development. Steve Kring Steve Kring is Horizon Bank’s Market President in La Porte County, Commercial Lending. Steve has 20 years banking experience and is a graduate of Ball State University and

Job-Site Safety, LTD is a trusted contract safety and rescue services company. Job-Site Safety understands that safety is a top priority and partners with its clients to achieve this goal. Started in 2006, Job-Site Safety offers audits, contact safety (on-site Safety Professionals), Confined Space Rescue, Safety Equipment, and Training.

SERVING NORTHWEST INDIANA FOR OVER

30 YEARS

WITH SCAFFOLD

• RENTAL • SALES • MAST CLIMBERS & SWING STAGES • TRAINING • INSTALLATION & DISMANTLE

219-932-3045 8

www.buildingindiana.com | JANUARY/FEBRUARY 2014


MAIN BUZZ

Enjoy the Finer Things in Life

By Nick Dmitrovich

live entertainment, gambling tables, elements of luxury, and so much more.” “For our guests in the business community, the Midwest Smoke Out offers a networking opportunity like nothing you’ve ever seen. Your colleagues and clients will leave the Smoke Out feeling impressed and refined,” Pearman said. At last year’s event, Bo DePaoli, Vice President of ACMS Group Inc., said “A suite at the Midwest Smoke Out is the best

able online at midwestsmokeout.com. For the first time in the Midwest Smoke s the ice and snow begins to fade Out’s history, VIP tickets provide guests this spring, consider treating yourwith special access to a once-in-a-lifetime self to one of the most luxurious meet and greet party where they can rub parties in the entire Midwest region: the elbows with some of the most legendary 2014 Midwest Smoke Out, the largest and members of the cigar industry, receive most recognized cigar show in the a beautifully designed commemorative Midwest area. poster, participate in autograph and phoThis year, the fifth annual Midwest to opportunities, and receive additional Smoke Out plans to return with a bang on cigars over the standard entry ticket. LimApril 24, 2014, at The Venue ited numbers of VIP tickets within the Horseshoe Casino, are available for groups wish“A suite at the Midwest Smoke Out is the best in Hammond, IN. The evening ing to spend the evening at way for us to entertain our clients. It is a one is one of the most highly anthe very pinnacle of extravastop location that hosts all of the luxuries ticipated events of the year, gance. people want.” offering one wild night of All VIP ticket proceeds Bo DePaoli, Vice President of ACMS Group Inc. premium cigars, fine spirits, benefit the Cigar Rights of craft beers, and exclusive luxAmerica, and over the course ury goods to attendees. Over of the next few weeks lead2,000 cigar and luxury-lovers ing up to the event, the six are expected to fill Hammond, Indiana’s way for us to entertain our clients. It is a mystery cigar industry legends particiHorseshoe Casino to experience the latest one stop location that hosts all of the lux- pating in the fundraising effort will be anin everything from gourmet food to strong uries people want. We have been in busi- nounced. Past events have been attended whiskey, and of course, high-end cigars. ness many years, and this event is the one by cigar industry leaders, such as Carlito “There’s truly something for everyone that our customers talk about the most, Fuente, Alejandro Turrent, Victor Vitale, at the Midwest Smoke Out,” said Andrea even for years past.” Lou Rodriguez, and more. Pearman, Midwest Smoke Out Event CoA ticket to the Midwest Smoke Out inordinator. “Whether you’re a cigar enthu- cludes free cigars, spirits, beer tastings, Visit www.midwestsmokeout.com siast or a non-smoker, the evening is all gourmet food, exclusive gifts and a one- for additional ticket, sponsorship or about relaxing, having fun and enjoying year membership (or renewal) to the CRA, vendor information, or contact us yourself. Our guests can taste some of the Cigar Rights of America. This event directly at 219-226-0300. the finest spirits and amazing dishes from has sold out four years in a row, so the some of the Midwest’s most impressive Midwest Smoke Out team suggests you vendors and restaurants while enjoying buy your tickets early. Tickets are avail-

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JANUARY/FEBRUARY 2014 | www.buildingindiana.com

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BUSINESS BUZZ

Northwest Downtown South Bend Continues Development The City of South Bend announced two new downtown projects underway, continuing the momentum from the 13 new restaurants, shops, and attractions that have opened over the past months. Larry Katz has signed a five-year lease to open a Yummy Cupcakes store at 119 South Michigan Street. He plans to open in mid-February and hire 8 to 10 employees. The City of South Bend has also agreed to sell a parcel of land at 228 Sycamore Street to Matthews LLC. The local developer plans to build a five-story

You want a contractor who can keep you a step ahead. Graycor Industrial brings over eight decades of experience to the power, metals and process markets. We deliver expertise for your toughest challenges, self performance capabilities for your most sophisticated jobs, and planning for the long term. Think beyond what you need today. Start building something more. Call (630) 684-7110

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Power

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Five Bidders Show Interest In Building the Illiana Expressway Five construction bid teams have responded to the Illinois Department of Transportation requests for construction firms to design and build the Illinois portions of the Illiana Expressway. Indiana’s requests for bidders are due by mid-January. INDOT and IDOT officials have stated that they expect the Illinois-side construction bidders to also bid on the Indiana portions of the road. The proposed expressway will be a toll road and will run 47 miles from Interstate 65 in Indiana just northeast of Lowell to Interstate 55 in Illinois near Wilmington, Ill. Total costs for the project are expected to fall around $1.3 billion. The five firms that responded to the Illinois request for bidders were: • Illiana Open Road Innovators • Illiana West Mobility Partners • Illinois Corridor Connection Group • Illinois Mobility Partners • WM Illinois - Illiana Partners, LLC

Ground Broken on Purdue Cal Athletics Complex

Facing the industry’s toughest challenges head-on

Metals

apartment building on the site with 12 one-, two-, and three-bedroom units plus groundfloor retail space. The units will range from 1,000 to 2,000 square feet. Matthews LLC, the developer of the River Race Townhomes and the East Bank Townhomes in downtown South Bend, expects to break ground on its latest project in December with completion scheduled for spring 2014.

www.graycor.com

Purdue University Calumet celebrated the groundbreaking of a new outdoor athletics complex at Dowling Park. The future home of Purdue Calumet men's and women's soccer, baseball, softball, and men's and women's tennis squads is located one mile southeast of campus, just north of Interstate 80/94 and east of Kennedy Avenue. Development of the Purdue University Calumet Athletics Complex is part of a wideranging, multi-faceted partnership between Purdue Calumet and the city of Hammond, led by Mayor Thomas M. McDermott, Jr. While the city takes the lead in furthering the Dowling

www.buildingindiana.com | JANUARY/FEBRUARY 2014


Southlake Mall Purchased by Starwood Capital Group Starwood Capital Group, a private investment firm, announced that it has completed, through a controlled affiliate, the acquisition of a majority interest in seven regional malls in the U.S. from the Westfield Group. As previously disclosed, Westfield will maintain a 10% common equity interest in the properties. The malls contain 7.9 million square feet of retail space across four states on the West Coast and the Midwest. The sites are all anchored by major national retailers and have an average occupancy of approximately 96%. The properties include: • Belden Village Mall in Canton, OH

JANUARY/FEBRUARY 2014 | www.buildingindiana.com

• • • • • •

Capital Mall in Olympia, WA Franklin Park Mall in Toledo, OH Great Northern Mall in North Olmsted, OH Parkway Plaza in El Cajon, CA Plaza West Covina in West Covina, CA Southlake Mall in Merrillville, IN

BUSINESS BUZZ

complex, Purdue Calumet is advancing several economic development and cultural initiatives in Hammond. Soccer, baseball and softball fields will be developed during the first phase of the Dowling complex. Plans call for the fields to be completed by next August in time for the start of the 2014-15 intercollegiate athletics year. Phase two, still in the planning stage, includes development of six tennis courts. The complex has been in the works since collaboratively announced by McDermott and former Purdue Calumet Chancellor Howard Cohen in spring of 2011.

Popovich Family Trust Donates Airplane to Ivy Tech Ivy Tech Community College has received a Boeing 737-400 as a donation from the Popovich Family Trust. The plane, valued at $1.375 million, will be utilized by the Community College for various training and teaching opportunities. Ivy Tech will use the plane in its Emergency Response Training Lab, which opened on November 22 at the Gary/Chicago International Airport. The lab will give Ivy Tech students the chance to train with special instructors as part of their education. Students will be greatly benefited by the opportunity for response training prior to graduation, as many are studying professions in highly demanding fields. The use of the plane will allow them to be better prepared for the workforce once they have completed their degrees.

11


BUSINESS BUZZ

UChicago Medicine, Franciscan Alliance Announce Regional Partnership

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The University of Chicago Medicine and Franciscan Alliance have entered into a master affiliation agreement that creates a novel partnership between a prominent academic medical center and a leading regional health system. The affiliation provides for the joint development and implementation of clinical, research and educational initiatives. The affiliation will boost access to primary and specialty care and clinical research. Officials from both institutions emphasized the synergies that will result from the affiliation agreement, which focuses on the University of Chicago Medicine and Franciscan Alliance’s Northwest Indiana facilities including Crown Point, Michigan City, Dyer, Hammond and Munster. Franciscan Alliance, one of the largest Catholic health care systems in the Midwest, has emerged as a leader in new approaches to payment and care delivery models. In December 2011, it formed the Franciscan Alliance Accountable Care Organization, the first and only federally recognized “Pioneer ACO” in Indiana and among the first in the country to partner with Medicare as an ACO. Headquartered in Mishawaka, Franciscan Alliance provides primary and specialty care services throughout its multi-state hospital system that includes more than 40 ambulatory sites. The University of Chicago Medicine, an academic medical institution that includes the Pritzker School of Medicine, ranked eighth among medical schools in the country, attracts patients regionally, nationally and internationally for its specialty care services. Its faculty physicians undertake research in an extensive array of areas and are in the top five U.S. medical schools in generating federal research dollars per faculty member. For daily news from Nortwest Indiana and around the state, visit our blog at www.buildingindianablog.com and follow us on Twitter @BuildingIndiana.

Northeast Blue M Medical Adding Jobs in Columbia City Blue M Medical, LLC, a manufacturer of custom medical devices, announced that the company will locate its operations in Columbia City, creating up to 25 new jobs by 2016. Blue M Medical, LLC plans to renovate a former medical office building to house the company's administrative, design and engineering, quality, and marketing and sales. The company supplies stainless steel instrumentation for the orthopedic, spine, trauma, and sports medicine medical device markets across the United States. Blue M Medical, LLC joins Micropulse, Inc., Red Star Contract Manufacturing, Inc., and Sound Ideas as Whitley County based companies involved in the medical device sector announcing job www.buildingindiana.com | JANUARY/FEBRUARY 2014


Florida Company Announces Indiana Division Allied Specialty Vehicles (ASV) announced the formation of Allied Recreation Group, Inc. (ARG), with the appointment of John Draheim as CEO for the new group. Allied Recreation Group will be comprised of some of the industry's most iconic brands including: American Coach, Fleetwood, Holiday Rambler and Monaco. Additionally, the group also owns the Beaver, National, and Safari brands. The brands will be produced at the company's manufacturing campus in Decatur, Indiana.

Northeast Indiana Seeing Income Growth The U.S. Bureau of Economic Analysis released 2012 per capita personal income numbers this week and there is good news for Northeast Indiana. There is now $1.2 billion more in personal income circulating in Northeast Indiana's economy than there was last year. Northeast Indiana is outpacing the nation in growth with the region demonstrating a 5 percent growth rate versus the national rate of 3.4 percent. The Northeast Indiana Regional Partnership is tracking per capita personal income relative to the nation as the core call to action for the Vision 2020 initiative. In 2009, per capita income in Northeast Indiana was 79 percent of that for the nation (NEI: $31,146; US: $39,357) and today Northeast Indiana is at 81.2 percent (NEI: $35,509; US: $43,735). For the past several decades, per capita personal income in Northeast Indiana has been declining relative the nation and that trend has been effectively reversed in the past three years. Indiana has declined now standing at 6.55 percent compared to 7.8 percent in October of last year and compared to the nation's current rate of 7.3 percent. The last time the unemployment rate in the region was below 7 percent was in November of 2008.

Packaging Systems Company Adding Jobs in Steuben County Rieke Corporation, a global manufacturer and distributor of specialty, highly-engineered closure and dispensing systems, announced plans to expand its operations in Hamilton, Indiana, creating up to 15 new jobs by 2016.

JANUARY/FEBRUARY 2014 | www.buildingindiana.com

The Auburn, Indiana headquartered company, a subsidiary of Bloomfield Hills, Michigan based TriMas Corporation, will invest $7.5 million to equip its existing 73,360 square-foot facility located at 2855 E. Bellefontaine Road in Hamilton. The expansion, which began in August, will allow the company to expand its capacity and capabilities, better serving its customers. Rieke, which currently employs about 1,400 employees internationally, including more than 210 Hoosiers in Hamilton and Auburn, has already begun hiring skilled maintenance associates, skilled plastic mold setters and assembly operators. The Indiana Economic Development Corporation offered Rieke Corporation up to $150,000 in training grants based on the company's job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The town of Hamilton approved additional tax abatement at the request of the Steuben County Economic Development Corporation. 

Metal Recycler Selects DeKalb County for New Plant MetalX, LLC, a scrap metal recycling company, announced plans to locate a new facility in Auburn, IN, creating up to 80 new jobs by 2017.  The Waterloo, Indiana based company will invest $12.4 million to purchase, renovate and equip a 240,000 square-foot industrial facility at 1101 Oren Drive in Auburn. Located on a 30-acre site with main line rail access, the company expects to commission its first line in April, with plans to have the plant fully operational by September. The facility will allow MetalX to develop a consolidated nonferrous metal recycling and reclamation operation that will be capable of recycling more than 100 million pounds of nonferrous metals per year, half of which will be reclaimed from material streams previously going to landfills. MetalX, which currently employs more than 100 Indiana associates, plans to begin hiring for the Auburn facility next month. With family roots in scrap metal dating back to 1943, MetalX is a full-service scrap metal recycling company that processes and distributes all grades of ferrous and non-ferrous scrap metals. MetalX was founded by Danny and Neal Rifkin, third and fourth generation members of the Rifkin family, which had owned and managed OmniSource Corporation until it became part of Steel Dynamics in 2007. MetalX opened its first facility on a 70-acre site in Waterloo and has grown from 12 employees to more than 100 in just more than a year.   The Indiana Economic Development Corporation offered MetalX, LLC up to $725,000 in conditional tax credits and up to $40,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Auburn also approved additional incentives at the request of the DeKalb County Economic Development Partnership.

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BUSINESS BUZZ

creation and investment plans during 2013. The Indiana Economic Development Corporation offered Blue M Medical, LLC up to $250,000 in in conditional tax credits based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim the incentives. Whitley County approved CEDITbased grant and loan incentives, and Columbia City approved vacant building tax abatement, all at the request of the Whitley County Economic Development Corporation (EDC).


BUSINESS BUZZ

Expansions Begin at Elkhart General Elkhart General Hospital is embarking on a $74 million dollar building project which includes the replacement of existing surgical and endoscopy suites, the addition of hybrid surgery capability and 44 private patient rooms for post-surgery care. This 150,000 square-foot expansion will provide space for 10 state-of-the-art operating rooms to accommodate both inpatient and outpatient surgeries. Each surgical suite will be approximately 700 sq. ft. in size and equipped with ceiling suspended technology offering the surgeons maximum flexibility for future growth and technology. The existing surgery suites were built over 40 years ago and the structural limitations of the space made the option of renovation unrealistic to physically accommodate newer technology. Construction is slated to begin the third quarter of 2013 and projected to be completed by the end of 2015.

Lake City Bank Commits to Fort Wayne Development Lake City Bank, the single bank subsidiary of Lakeland Financial Corporation (Nasdaq:LKFN), announced that it has approved approximately $20 million in financing for Ash Brokerage Corporation's new headquarters in downtown Fort Wayne, Ind. The company also announced that it will open a Lake City Bank office in the planned first floor retail space, marking the first tenant to make a commitment to the development. As previously announced, the new Ash Brokerage headquarters will include 95,000 square feet of office space and will house 230 employees in the initial move downtown. According to Ash, future plans include the addition of 115 new positions by 2018. The building is part of a major commitment to downtown Fort Wayne that includes a parking garage and residential units. The new office, which is expected to occupy approximately 4,000 square feet of the 20,000 square feet of first floor space, will be home to a full service retail office, including a drive through, and will also include office space for the bank's Commercial Banking Department, Lake City Bank Investment and Wealth Advisory Group. The office will provide direct access to every commercial and retail product that the bank offers.

Tech Company Expanding in Fort Wayne Aptera Software, Inc., a software development and web design firm, announced plans to expand its operations in Fort Wayne, creating up to 17 new jobs by 2016. The homegrownHoosier company will invest $785,000 to renovate and equip its current 13,500 square-foot building located at 201 West Main St. in Fort Wayne. The renovations, which are expected to be complete by January, will allow the company to accommodate additional employees and streamline work processes. Aptera, which currently has more than 70 employees, has already begun to hire software developers, network engineers and graphic designers, as well as expand its marketing and sales teams. As part of the project, Aptera plans to train and equip 14

its new and current employees. Interested applicants can visit www.apterainc.com for more details. The Indiana Economic Development Corporation offered Aptera Software, Inc. up to $150,000 in conditional tax credits and up to $100,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Fort Wayne supports this project at the request of the Fort Wayne-Allen County Economic Development Alliance. 

ArcelorMittal Announces Changes to Organizational Structure ArcelorMittal announced it has reviewed its organization with the aim of simplifying it. As a result, it has been decided to manage the business according to region, while also maintaining the product specialization within those regions.  This will enable the businesses to continue to have their own dedicated strategy and focus, while capturing all the synergies within the region. Separately, Michel Wurth has notified his intention to retire from the company in April 2014.  He will retain his links with the company as chairman of ArcelorMittal Luxembourg and, subject to approval at the annual general meeting, as a member of the ArcelorMittal board of directors. Management of the business will be re-organized as follows, with the following Group Management Board (GMB) responsibilities: • Flat Carbon Europe, Long Carbon Europe and distribution solutions will report to Aditya Mittal as CEO of ArcelorMittal Europe.  He will remain CFO of ArcelorMittal. • Flat Carbon Americas, Long Carbon Americas will report to Lou Schorsch as CEO of ArcelorMittal Americas.  He remains in charge of several corporate activities (strategy, technology, R&D, global automotive and commercial co-ordination). • Sudhir Maheshwari’s responsibilities remain the same, as CEO of India and China and head of M&A, finance and risk management. • Algeria, Kazakhstan, South Africa and Ukraine will report to Davinder Chugh as CEO of ArcelorMittal Africa and the CIS. • Tubular products will report to Gonzalo Urquijo, who will also become head of health and safety and corporate affairs (government affairs, corporate responsibility and communication) Separately Henri Blaffart, in addition to being executive vice president and group head of human resources, will also take responsibility for corporate services encompassing legal, capital goods, shipping and IT, reporting to the CEO.  Bill Scotting remains CEO of Mining. Robrecht Himpe is appointed head of business optimization Europe and will report to Aditya Mittal. Geert Van Poelvoorde is appointed head of Flat Carbon Europe and will also report to Aditya Mittal. The company does not expect significant changes to the way it currently groups its operating segments for external reporting purposes. www.buildingindiana.com | JANUARY/FEBRUARY 2014


BUSINESS BUZZ

USF Offering Online Master of Organizational Leadership at New Rate The University of Saint Francis is introducing a new online Master of Organizational Leadership to support the development of professionals from a variety of fields. The degree will refine the leadership and skills needed to compete in industries demonstrably experiencing change and growth, and will be offered at a new competitive online tuition rate. The degree draws upon the expertise of the Keith Busse School of Business and Entrepreneurial Leadership. Students will learn theories informing the issues and best practices of respective fields and engage in practical experiences to make them more effective leaders. The online format provides the flexibility working professionals need as they hone leadership skills to advance in the workplace. Applicants must possess a bachelor’s degree or higher with minimum 2.75 GPA on a 4.0 scale from a regionally accredited institution. Those with GPA below 2.75 with less than five years professional experience must take the graduate management admission test (GMAT) for university review. Applicants with five or more years’ experience can submit a resume. For daily news from Northeast Indiana and around the state, visit our blog at www.buildingindianablog.com and follow us on Twitter @BuildingIndiana.

Central Celadon Announces Canadian Deal Celadon Group, Inc. (NYSE:CGI) announced an agreement to acquire selected assets of N. Yanke Transfer Limited (“Yanke”), based in Saskatoon, Saskatchewan. Yanke operates approximately 300 tractors, including more than 100 team expedited trucks, and generated approximately $90 million in revenue in 2012. The company comprises both domestic Canadian shipments and international shipments between Canada and the United States. Additional terms and conditions of the transaction were not disclosed. With this acquisition, Celadon will continue to grow its international footprint and service offerings in Canada, with an increased presence in the western provinces. Celadon grew its western Canadian business earlier in the year with its acquisition of Hyndman Transport. Celadon will maintain a number of Yanke’s terminal locations throughout Canada. The acquisition enters Celadon into container rail movements in Canada, which represents approximately $30 million of Yanke’s 2012 revenue. Paired with Celadon’s existing intermodal revenue in the U.S., the company now expects to generate 16

approximately $60 million in annual revenue from rail shipments in North America. Celadon anticipates having more than 800 drivers in its Canadian operations upon conclusion of this transaction, making the company one of the country’s largest carriers.

Tech Electronics Completes Installations on Avondale Meadows Health & Wellness Center Tech Electronics of Indiana, a solutions-based systems integrator and technology services organization, recently completed installations of sound, surveillance and monitoring systems for the new Avondale Meadows Health & Wellness Center, a 68,000-square-foot, LEED-certified facility that houses the new location of the Avondale Meadows YMCA and the HealthNet Northeast Health Clinic. Tech Electronics broke ground on the project in June 2012 and worked directly with the YMCA to identify systems and solutions needed to outfit the 34,000-square-foot YMCA office and the 18,000-square-foot health clinic. Tech Electronics custom-designed nearly $40,000 of professional sound systems for multi-purpose rooms in the center, and installed IP clocks and surveillance cameras that are easily monitored by staff within the building. The Avondale Meadows Health & Wellness Center marks the latest milestone in the $140 million redevelopment of the community, which is a strategic partnership between YMCA of Indianapolis, IU Health, HealthNet, United Northeast Community Development Corporation, and the Meadows Community Foundation, Inc.

Purdue Partners with Gallup Gallup has partnered with Purdue University to build and conduct the largest representative study of college graduates in U.S. history. The Gallup-Purdue Index will measure the most important outcomes of higher education - great careers and lives that matter - and provide higher education leaders with productive insights for meaningful performance improvements. The initiative aims to create a national movement toward a new set of measures, created by and for higher education, and to help foster a new level of accountability for the sector. The Gallup-Purdue Index provides a definitive measure of how college graduates are doing on five key dimensions of wellbeing: purpose, social, physical, financial, and community. It will also measure their workplace engagement including things such as whether they like what they do, do what they’re best at, and have someone who cares about their development. Purdue will be the first university to contract for a simultaneous sampling of its own graduates, to determine how they are faring in life and at work compared to these national norms. Gallup will invite other institutions of higher education to join this research collaborative to measure these outcomes www.buildingindiana.com | JANUARY/FEBRUARY 2014


Science Engineering Lab Opens IUPUI students and researchers have a new home for science-based courses and research. The new Science Engineering Laboratory Building will provide much needed research space for researchers and strengthen the University's life and health sciences mission. BSA LifeStructures designed the Science Engineering Laboratory Building in conjunction with Blackburn Architects on Indiana University-Purdue University Indianapolis' campus. The building combines both academic and research space, creating a dynamic home for learning and discovery. The 45,000 square foot facility houses multidisciplinary research laboratories and classroom space for the School of Science and the School of Engineering and Technology. The $25 million high-tech facility provides space for faculty and students to conduct research that contributes to the economic vitality of the state. The design of the facility encourages interaction between students and researchers. Public gathering spaces on the first floor are intentionally located next to biology and forensics labs to encourage these connections. The second level features a mix of faculty offices and research labs that are organized around a block of biology and biomedical engineering labs. The project is connected to the existing science and engineering technology buildings in the core of the academic campus. The facility is designed to accommodate future expansion to meet the planned growth of the research programs at the University. The building is designed to achieve LEED Silver Certification. The facility features occupancy sensors for lighting control and uses high-efficiency windows and sunscreens to reduce solar gains. The HVAC system uses chilled beams to reduce energy consumption and uses enthalpy wheels for energy recovery. The site also contributes a number of sustainable design features, including a rain garden for storm water management and the use of native and adaptive plants in the landscaping.

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among their students and alumni starting this academic year, and will work with them to drive continual process improvement throughout the student experience. The findings of the inaugural Index will be available in early spring of 2014 with public findings reported on Gallup.com annually. The Gallup-Purdue Index is made possible in part by Lumina Foundation's $2 million grant to Purdue University.

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Applied Composites Engineering Bringing Jobs to Indy

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An Indianapolis-based aerospace engineering company is seeking abatement on a nearly $2.5 million expansion plan. Applied Composites Engineering Inc. says the project would result in more than 100 new jobs by 2019. The company manufactures composite and metal products for the aerospace and military sectors. ACE says the expansion would also allow it to retain its 96 current employees.

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Arizona Company Acquires Frontier Airlines

Ivy Tech Announces Major Reorganization Ivy Tech Community College's State Board of Trustees has announced regional structure changes, the most substantial organizational changes that the Community College has experienced in its 50 years. The changes will result in increased efficiencies and further focus on the various communities the Community Colleges serves. Ivy Tech will now operate with 11 regional chancellors, a number that was as high as 14 in the past. Chancellors will continue to oversee the 31-degree granting locations and 75+ educational sites throughout the state within the various regional boundaries. While the College will consolidate administrative functions across the new combined regions, the current 14 regional board of trustees will continue to operate just as they have in the past. Those regional board members will provide vital community outreach and operational expertise in assisting the regional chancellors. The College also plans to name what it will refer to as Campus Presidents for an estimated 20 educational sites throughout the state, many of the College's degree granting locations. This new title will replace the current title of Vice Chancellor/Dean that exists in many of these locations, thus resulting in no additional new staff. The Campus Presidents will report to the chancellors within the sites they serve. The focus of the local Campus President will

Kroger Store Upgrades with $2 Million Expansion Kroger Central Division leaders celebrated the grand reopening of the company’s store at 2629 East 65th Street in Indianapolis at a celebration. The total economic investment in this store is $2 million. Kroger's project was led by Project Manager Holly Fritz. This investment strengthens Kroger’s economic and workforce commitment to the local Indianapolis community and will create additional jobs over time. This is the third of four major remodel projects completed by Kroger in Indianapolis in 2013. Those projects exceed $13 million in value and added several dozen new jobs. During the grand reopening event, Kroger made the following donations: $1,000 to the Glendale Christian Church food pantry, $10,000 to Indy hunger Network, $25,000 to Gleaners Food Bank, $12,000 to Riley Hospital for Children and $1,000 anonymously to the family of a Kroger associate whose home was destroyed by a recent tornado.

JANUARY/FEBRUARY 2014 | www.buildingindiana.com

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Indigo Partners today announced that, through an affiliate, it has completed the acquisition of Frontier Airlines from Republic Airways Holdings. Final terms of the transaction, which was first announced on October 1, 2013, are not being disclosed. Indigo Partners and its principals, led by managing partner William A. Franke, have considerable experience in successful, airline-related investments. Frontier will remain headquartered in Denver, Colorado.

be outreach to the local community. Further details are expected to be released next month. The anticipated savings from these consolidations will permit the College to achieve the recently announced $4M budget reversion from the State and to the extent possible add a limited number of additional advisors and full-time faculty. In total, because of resources it has had to defer, the College estimates it needs over 300 more advisors and 1,000 more professors converted to full-time in order to reach the ratios it desires.


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Lilly Endowment Donates Millions to Indiana Universities

Good Samaritan Hospital Achieves Building Milestone

Indiana's 39 accredited colleges and universities will receive a significant boost to their efforts to enhance and expand opportunities for their college graduates to find meaningful employment in Indiana as a result of $62.7 million in grants from Lilly Endowment Inc. In preparing their proposals, virtually all of the colleges and universities engaged with organizations from other sectors, such as CICP, Indiana INTERNnet, chambers of commerce and community foundations, Indiana Humanities, governmental entities and scores of Indiana businesses. Leaders in many sectors have important roles to play in fostering meaningful economic opportunity in the state for Indiana college graduates. Together they can enhance the quality of life in Indiana communities and make the state more attractive for new or expanding businesses that provide high-skilled job opportunities. All 39 colleges and universities submitted promising proposals that will be funded by the Endowment. These grant funds will enable the schools to pursue a broad range of activities that span all points on the college to career spectrum. Common strategies include: developing new courses, certificates, credentials and degrees; beginning more deliberate career counseling for all students during their freshman year rather than waiting until their junior or senior years; offering more internship and co-op opportunities; and strengthening their efforts to promote entrepreneurship and technology transfer.

Good Samaritan Hospital, in Vincennes, IN, celebrated a significant milestone in its $109 million BEACON Project with a steel topping out ceremony. The event marked the completion of the structural steel construction for the hospital's new patient pavilion, Gibault Memorial. Distinguished guests, colleagues, community members and friends of Good Samaritan Hospital gathered for the ceremony in Eva Hill Auditorium in the Health Pavilion. A long-standing tradition in the construction industry, a steel topping out ceremony is celebrated when a project's final piece of steel is placed on the building’s highest point. Staff, volunteers, physicians, patients and visitors are invited to sign the beam located by the Health Pavilion lobby and the Healing Garden prior to its installation. The white beam will be hoisted atop the 200,000 square foot, five-story tower Thursday morning, completing the steel erection of the new patient pavilion. The BEACON Project includes the construction of the new Gibault Memorial, a redesign of key health care service areas, upgrade of the hospitals critical engineering systems, and demolition of the current Memorial, Gibault and Willis buildings; all to be completed by December 2016. The new building will enhance patient care by providing one stop shopping with the hospital's five centers of excellence all within the new pavilion. All patient services will be conveniently located for better patient access with an aim toward an efficient patient experience.

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

South Old National Insurance Purchases Evansville Wells Fargo Accounts Old National Insurance (ONI), a subsidiary of Evansvillebased Old National Bancorp (NASDAQ: ONB), has agreed to purchase the insurance accounts presently serviced by the Evansville branch office of Wells Fargo Insurance (WFI). This consists primarily of commercial property and casualty accounts. As part of the acquisition, current WFI sales executives Rollie Lehnus and Mike Retter will join ONI's Evansville commercial insurance sales team.

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SABIC's Innovative Plastics Announces Expansions SABIC’s Innovative Plastics business announced two major investments at its largest U.S. facility aimed at further increasing the business’ global competitiveness and sustainability by enhancing the reliability and efficiency of production. These investments at the Mount Vernon, Indiana site will benefit the business’ customers through efficient and reliable production, and the local community with the anticipated creation of between 150 and 200 temporary construction jobs over two and a half years. The first investment involves the production of a state-ofthe-art cogeneration (CoGen) plant that will use natural gas to create a majority of the steam for the site. Currently, coal boilers power 40 percent of the site’s steam. The EPA recently issued new Boiler Maximum Achievable Control Technology (MACT) Standards for industrial, commercial, and institutional boilers. Innovative Plastics is building a CoGen plant that addresses the EPA standards and offers an economical and sustainable solution by leveraging the long-term supply of natural gas. The CoGen plant is expected to reduce the Mount Vernon facility’s greenhouse gas intensity, which includes GHG from the site and from electricity used from the regional grid, by 35 - 40 percent compared to a 2010 baseline. The GHG intensity www.buildingindiana.com | JANUARY/FEBRUARY 2014


Huber's Starlight Distillery is excited about Indiana's new state law changes which will now allow them to produce other spirits such as whiskey, bourbon, vodka, and gin. This expansion represents an investment in our local community and partnerships with local companies such as Vendome from Louisville, KY; Libs Paving and Koetter Construction of Floyds Knobs, Indiana. State Rep. Ed Clere, R-New Albany, authored the legislation. Clere said he expects the new law to spur activity. The new law allows artisan distillers to offer samples for tasting and to sell spirits by the glass and by the bottle - similar to provisions for wineries and breweries, which have proliferated in Indiana in recent years. Previously, distilling was possible to Indiana, but, with the exception of brandy, distillers could not sell directly to consumers.

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tions.  The Company will invest approximately $31 million for new infrastructure and equipment, and will also transfer existing equipment from other Berry Plastics facilities.  The project will begin in early 2014 and will result in the addition of more than 330 production jobs, over the next two years, at the Company’s downtown Evansville, Evansville airport, Princeton, and Richmond facilities located within Vanderburgh, Gibson, and Wayne counties in Indiana.  To encourage the investment and job creation in Indiana, the Indiana Economic Development Corporation (IEDC) offered the company a grant up to $300,000 to facilitate job skills training and $2.35 million in Economic Development for Growing Economy (EDGE) tax credits which may be certified over the next 10 years.  In addition, the City of Evansville offered the company a 10-year tax phase-in on real property investment, with an estimated value of $1.7 million, and a modified schedule of tax abatement on personal property investment, with an estimated value of $2.8 million.  The City also offered a hiring/training grant with a maximum of $100,000.

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Berry Plastics Announces Plans to Relocate Manufacturing Equipment to IN Facilities Berry Plastics Group, Inc. (NYSE: BERY) announced plans to further optimize production and relocate manufacturing equipment to four of its Indiana manufacturing opera-

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savings are equivalent to removing more than 110,000 passenger vehicles from the road annually. The second investment will reduce energy intensity, and promotes safety and sustainability. The new technology is expected to operate 20-30 percent more efficiently than the current technology, using less steam and electricity, further increasing the Mount Vernon site’s competitive position. Additionally, this significant investment will enable the site to reduce its GHG intensity. The new technology is expected to be completed in 2015 and, compared to a 2010 baseline, is expected to reduce GHG intensity equivalent to removing nearly 3,000 passenger vehicles from the road annually. The Mount Vernon site is SABIC’s largest U.S. manufacturing facility employing approximately 1,200 employees.


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Hydroelectric Power Coming to Bedford Ground Broken on St. Mary-of-theHydroelectric Power will be generated at Williams Dam Woods Sports Center on the White River, after a 60-year hiatus. Free Flow Power Corp., of Boston, today announced it is close to receiving the necessary license from the Federal Energy Regulatory Commission to "re-power" Williams Dam. The company plans to invest $12-million dollars to create a 4-megawatt "run-of-river" power facility. Free Flow is currently in discussions with potential customers for long-term purchase contracts for the power, which will begin being generated in mid-2016. The Williams Dam project is one of 55 current of planned hydroelectric projects in Free Flow’s long-term strategy to harness the untapped power of Army Corps of Engineers and state-owned dams across the country. Free Flow has been working in Indiana the past three years, with representatives of Department of Natural Resources, Indiana Department of Environmental Management, U.S. Fish and Wildlife, and local elected officials, to address all potential issues. Williams Dam is owned by the Department of Natural Resources, and was originally constructed as hydro-electric dam in 1910. The dam was de-commissioned as a power producer in the 1950's. The project is expected to generate 25 construction jobs, and two permanent highly-skilled jobs. There are no local or state economic development funds set aside for the project. Free Flow expects the final FERC license to be granted in the first quarter of 2014.

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Shovels entered the ground at Saint Mary-of-the-Woods College (SMWC) campus as a decade-long vision of the new sports and recreation center was finally coming to fruition. Over 300 students, staff, faculty, alums and friends gathered at the site of the future building as SMWC President Dottie King, Ph.D., spoke about the Pomeroy Pride campaign and thanked all of those who contributed to the success. King announced that the new facility would be named after the late Jeanne Knoerle, Sister of Providence and former SMWC president. Knoerle was a Sister of Providence for 62 years as well as an encouraging mentor, author, educator and theologian, continuing the legacy of educating women for positions of leadership began by the College and Congregation's foundress, Saint Mother Theodore Guerin. Though the College is moving forward with construction, the campaign has not officially concluded. The opportunity remains for friends, alums, faculty and staff to share in the campaign's success by adding to this historic time in the life of the College. The College's advancement team will continue to work to close the Pomeroy Pride campaign, as another $1.1 million is needed to meet the goal of $11 million. Other speakers at the groundbreaking ceremony included Terre Haute Mayor Duke Bennett; Marcia Reder Schmidt, 1972 graduate of SMWC, and Jerry Schmidt, campaign co-chairs; and Ralph Wagle of Garmong Construction. Since the estimated 45,000 square foot facility will be completed in 10 months, most of the current students will be able to experience campus life with the new sports and recreation center.

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The Vincennes University Board of Trustees approved a series of actions related to major renovation projects at Vincennes and Indianapolis facilities. A $4.5 million residence hall bond resolution was approved for renovation projects for both Morris Residence Hall and Vanderburgh Residence Hall that were completed in October on the Vincennes Campus. The project included complete upgrades of the HVAC systems in both residence halls and replacement of exterior windows in Vanderburgh Hall. Morris Hall renovations included a complete electrical system upgrade, a new ADA compliant entry vestibule, and an upgrade to the building's exterior surface. The total cost of the renovations is about $7.4 million with some of the cost funded by Housing operating reserves. The Board also approved giving authority to the Finance/Revenue Committee to approve bids for major renovations of the original part of the Technology Center on the Vincennes Campus and the Aviation Technology Center that is located at the Indianapolis International Airport. For daily news from Southern Indiana and around the state, visit our blog at www.buildingindianablog.com and follow us on Twitter @BuildingIndiana.

www.buildingindiana.com | JANUARY/FEBRUARY 2014


People News Northwest Indiana Times Selects Tucker as New Advertising VP John Tucker has been selected to be The Times new Vice President of Sales. Tucker was most recently a senior group publisher for GateHouse Media, overseeing its news organizations in Arkansas and northern Louisiana. Prior to that he managed the company’s southern Missouri properties in the Lakes of the Ozarks area, a highly competitive tourism market. In 2003, Tucker was named as one of Presstime’s 20 Under 40 class of outstanding achievers. Presstime is the monthly magazine of the Newspaper Association of America.

Susan Drew Promoted to Office Manager Susan Drew was recently promoted to the position of Office Manager of Diversified Marketing Strategies, Inc., previously functioning as administrative assistant. She brings a wealth of experience and professionalism to the company, having been with DMS for roughly a year. Susan graduated from Indiana University where she focused on Management, and spent seven years working as a Visual Manager for Anthropologie. In her new role with DMS, Drew will be responsible for

project management, office coordination and event planning.

Salin Bank Hires VP Family owned and Indianabased Salin Bank today announced that Frank Whelan has joined Salin Bank as Vice President and Business Development Team Leader. Whelan brings two decades of experience in the financial services and investment field to his new position. Most recently, Whelan served as Vice President of a Canadian financial institution, Bank of Montreal -- BMO Harris Bank. Whelan is a graduate of Hobart College, with a Bachelor’s of Arts degree in political science. An active member in his local community, Whelan serves as President of the Indianapolis Symphonic Choir’s Board of Directors and is a past member of the Carmel Arts Council Board.

Miles Named Berry Plastics CFO Berry Plastics Group, Inc. (NYSE: BERY), has elected Mark Miles, who currently serves as Executive Vice President, Controller and Treasurer, to be the company’s next Chief Financial Officer. Miles joined Berry Plastics more than 15 years ago as Corporate

JANUARY/FEBRUARY 2014 | www.buildingindiana.com

Controller. Prior to joining the Company, Miles was an Audit Manager for Ernst & Young and a Controller at USA Group, both in Indianapolis. He holds a B.S. in Accounting from the University of Southern Indiana and is a Certified Public Accountant.

will complete the Doctorate in Nursing Practice at Rush University in Chicago in December 2013. King brings clinical and administrative experience to her dean’s role. Previously, she served as President of the Indiana Board of Nursing.

United Way Hires Hughes as Multimedia Specialist

Melangton Added to OneAmerica’s Board

United Way of Central Indiana has hired Derik Hughes as a multimedia specialist in its marketing and communications department. Previously, Hughes was a videographer at WXIN Fox 59.

King named University of St. Francis, Crown Point, Dean Marsha King has been named dean of the University of Saint Francis Crown Point, Vice President for Academic Affairs Dr. J. Andrew Prall has announced. She joined the university last year as an assistant professor and Director of the Nursing Resource Center and Simulation Laboratory. She has been interim dean for a number of months. King holds associate, bachelors and master degrees in nursing from Purdue University Calumet, and also completed a Master of Business Administration with emphasis on health care at Keller Graduate School of Management at DeVry. She

The board of directors for OneAmerica Financial Partners Inc. announced that it has elected Indiana Sports Corporation President Allison Melangton as its newest member. Melangton served in a variety of roles at Indiana Sports Corporation from 1994-2008, including leading Indianapolis’s successful bid to host the 2012 Super Bowl. As a result of her leadership, more than 1.1 million people visited downtown Indianapolis during Super Bowl week, $154 million were invested in the city’s Near Eastside through the Legacy Project, and a number of community, youth and green initiatives were implemented impacting hundreds of thousands of individuals. She returned to Indiana Sports Corporation as president in 2012. Melangton is a graduate of Colorado State University with a bachelor of arts in Sports Administration.

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Department Of Revenue Announces CFO The Indiana Department of Revenue announced Valerie Hunt, CPA, MBA, as the department’s new chief financial officer. Hunt has served as deputy controller for the department since July 2012. As chief financial officer, Hunt will lead the department’s finance division, which includes accounting operations and reporting, electronic funds transfer and related banking functions, contracts and accounts payable, internal audit, and financial planning and analysis. Hunt brings strong finance and accounting experience to the department having been engaged in financial management roles at Brightpoint, Rolls Royce and Guidant Corporation. Hunt is a CPA with a BS in accounting and an MBA in finance from the Kelley School of Business at Indiana University, Bloomington.  She replaces Mike Ashley, who was appointed chief financial officer by Governor Mitch Daniels in May 2012.

Pridemark Hires Lanier as Controller Pridemark Construction recently announced the hiring of Alison Lanier to the position of Controller for the Muncie, Indiana based commercial construction company. Alison attended Indiana University Kelley School of Business, equipping her for the responsibilities that 24

will include preparation of financial statements and reports, billing, banking, and general office administration. She has more than twenty years of experience in construction accounting and management. Pridemark Construction is a full-service commercial construction company serving Indiana and western Ohio. Pridemark Construction provides expertise in both large and small-scale projects including; Design Builds, Construction Management, Site Development, Renovations, Building Maintenance and Water & Sewage projects.

Blue & Co., LLC Grows Staff with Hatcher and Mucci Blue & Co., LLC, a leading regional public accounting firm with offices strategically located in Indiana, Kentucky and Ohio, is pleased to announce the addition of the following individuals to the organization at their office in Carmel, IN: Renae Hatcher, for the position of Administrative Assistant, and Michael Mucci, as the company’s new Manager.

Ambassador Feinstein to Lead IU’s School of Global and International Studies Ambassador Lee A. Feinstein, whose experience includes two decades serving in highlevel positions in diplomacy and foreign affairs, has been appointed founding dean of

Indiana University’s School of Global and International Studies. Feinstein, the U.S. ambassador to the Republic of Poland from 2009 to 2012, has had a distinguished career in and out of government. A noted scholar-practitioner, Feinstein has served two secretaries of state and a secretary of defense and has worked at the nation’s top research institutes, including the Council on Foreign Relations and the Brookings Institution. IU President Michael A. McRobbie praised the efforts of the search committee in helping attract a person who will bring extensive diplomatic and policymaking experience to the school. The School of Global and International Studies was approved by the IU Trustees in August 2012 and will be housed in a new state-of-the-art building that is under construction in the heart of the IU Bloomington campus.

Ted McKinney Announced as New IN Director of Agriculture Lt. Governor and Secretary of Agriculture Sue Ellspermann introduced Ted McKinney as the new Director of the Indiana State Department of Agriculture. Ted McKinney grew up on a family farm in Tipton County, where he has continuing interests. After graduating with a degree in Agricultural Economics from Purdue University where he was named Outstanding Male Graduate, he began a successful career with Elanco Products Company, DowElanco and Dow

AgroSciences. Most recently he was Director, Global Corporate Affairs for Elanco Animal Health, a division of Eli Lilly and Company.

Conexus Appoints New Director of Industry Outreach Conexus Indiana is pleased to announce the appointment of David Buskill as director of industry outreach. With more than 16 years of business development, fundraising, marketing, and communications experience, Buskill will assist David Holt, vice president of operations and business development, in strengthening Conexus Indiana’s Regional Logistics Councils across Indiana. Buskill most recently worked as a political and fundraising consultant, providing leadership and counsel. Previously, he served as director of business processes at the Indiana Department of Education; finance director for retired U.S. Representative Mike Sodrel; financial consultant for A.G. Edwards; executive assistant for retired U.S. Representative David McIntosh; and deputy clerk at the Indiana Supreme Court and Court of Appeals. Following his graduation from Hanover College with a Bachelor of Arts, Buskill earned a Master of Arts degree in political science from Ball State University. Want to add a promotion, announcement or appointment to People News? Email your news to: NickD@buildingindiana.com

www.buildingindiana.com | JANUARY/FEBRUARY 2014

 


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NWI CO N T R AC TO R S A S S O C I AT I O N

Iron Workers Local #395 / 219-763-7900 / www.ironworkers395.com Construction Advancement Foundation / 219-764-2883 / www.cafnwin.org NWI Contractors Association / 219-764-2883 / www.nwicontractors.org


Photo Feature BP Completes Commissioning of Whiting Refinery Units BP announced all of the major new units associated with the Whiting modernization project have been successfully brought on stream.  The start-up of the new 102,000 barrel per day coker marked the last major milestone of the multi-year, multi-billion dollar modernization project at the facility in Northwest Indiana. The new facility is expected to create $1 billion per annum of additional future operating cash flow.

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

The refinery expects to be ready to begin the ramp up of progressively higher Canadian crude processing through the first quarter of 2014 as previously announced. Facts about the BP Whiting Refinery As BP’s largest U.S. refinery, the 413,000 barrel per day (bpd) Whiting facility provides the Midwest and other parts of the U.S. with enough fuel every day to run 430,000 cars, 22,000 commercial trucks, 2,000 commercial jet liners, 10,000 tractors and fill 350,000 propane tanks. BP supports nearly 60,000 jobs in Indiana and Illinois and spends more than $3 billion annually with outside vendors in these two states, according to BP’s US Economic Impact Report 2013. A coker is a refinery processing unit that converts residual oil from the crude oil distillation process and converts it into lighter naphtha, light and heavy gas oils for use in gasoline and diesel production and petroleum coke which can be used in power generation and other industrial applications.

Photo courtesy of BP.

26

www.buildingindiana.com | JANUARY/FEBRUARY 2014


From left to right: Jim Arendas, CAF Environmental Safety & Health Director, Dan Szany, Architect, Steve Pangere, President and CEO of The Pangere Corporation, James Snyder, Mayor of Portage, IN, Joe Coar, Northwest Indiana Business Roundtable Executive Committee Chairman, Brad Niebert, CAF Board Member, Shawn Kelly, CAF Chairman, Dewey Pearman, CAF Executive Director, celebrate the unveiling of the 100% U.S.A.-made CAF Safety Training Institute.

Construction Advancement Foundation Opens New Safety Institute The Construction Advancement Foundation (CAF) unveiled its brand new Safety Training Institute – a one of a kind facility built entirely from U.S.A.-made construction materials – in Portage, IN, along with Portage Mayor James Snyder. Totaling roughly $1.6 million, the 7,000 square foot building will house state-of-the-art safety technology that will be used to instruct individuals across both a classroom setting and a handson workspace environment. Construction materials came from a variety of U.S.A. manufacturers, including: Steel Dynamics & Nucor-Yamato, Marshfield, Design Tanks, Smith Ready Mix and many more. The Pangere Corporation, general contractor for the project, ensured that all of the construction materials came from American factories. In one case, they had to change suppliers when it was learned that one of the roof systems had been made

in Mexico, but that was the only small obstacle that the project encountered. “We thought that designing an all-U.S.A. made building was going to be difficult,” Jim Arendas, Environmental Safety & Health Director with the CAF said.“But it was as easy as adding what we wanted as a stipulation in the construction documents. Everything in the building is U.S.A.-made; from the lights to the floors, the steel, the doors, windows, everything. It was easy, and it only cost us roughly 1 to 2% over what we would have spent otherwise.” “We believe this is the first 100% made-in-the-U.S.A. facility dedicated exclusively to safety training for safety professionals and field personnel,” according to Dewey Pearman, CAF Executive Director.

2013 Rail Summit Held in Chicago Railroad industry leaders from around the country gathered in Chicago for the 2013 Rail Summit, focusing on the economic importance of short-line railroads. Four different short-lines operate in Northwest Indiana, including: Indiana Harbor Belt; Chicago South Shore and South Bend; Chicago, Fort Wayne and Eastern; and Chesapeake & Indiana. Short line railroads are smaller regional companies that typically bring in less than $20 million a year and haul most of their freight locally. The purpose of the summit was discussion on how the rail industry can give local businesses access to new markets by expanding a company’s reach, and reducing logistics costs. The Indiana Department of Transportation published a statistic that stated trains get 202 miles per gallon for every ton of cargo, as compared to 59 mpg for every ton of cargo with semi-trailer trucks. JANUARY/FEBRUARY 2014 | www.buildingindiana.com

David Holt, Vice President of Conexus Indiana, delivered a presentation during one of the breakout sections of the Rail Summit.

27


STATE OF INDUSTRY By Dewey Pearman, Executive Director, Construction Advancement Foundation

T

he 2014 session of the Indiana General Assembly began in early January. At the date of this writing, in late December it appeared a number of issues would be on the table for consideration by the legislature which would have broad implications for Indiana’s construction industry. A few of these are listed below along with position statements the Construction Advancement Foundation of Northwest Indiana, Inc. will promote during the session.

ISSUE - Worker Misclassification BACKGROUND – For some years many contractors in Indiana and across the country have engaged in an illegal business model that allows them to avoid lawfully required payment obligations such as payroll taxes, workers compensation coverage, unemployment insurance costs by classifying workers as “independent contractors” when they should be paid as employees. Avoidance of these costs give contractors operating under this practice a competitive cost advantage in bidding work in the market. This practice also 28

New Business

New Legislature Topics Have Broad Implications for Indiana’s Construction Industry

results in the loss of hundreds of millions of dollars in loss tax revenues to local, state and federal government. POSITION – The Construction Advancement Foundation of Northwest Indiana, Inc. (CAF) supports legislation, regulation and enhanced enforcement of existing laws to curb the illegal practice of classifying individuals who should be paid as employees as “independent contractors”.

ISSUE - Common Construction Wage BACKGROUND – Under Indiana’s current common construction wage law all construction projects undertaken by public agencies with a cost of $350,000 or more must have wages set by a common construction wage committee in the county where the work is to be performed. The successful bidder for the project must pay at least the wage and fringe levels for work on the project as set by this committee. As in past years, bills are likely to be introduced in the 2014 session of the Indiana General Assembly to change or repeal the requirements of the common construction wage law. Changes in the common construction wage would significantly disrupt the current competitive balance between

contractors bidding on public works projects and likely result in inferior work performance on the jobs. POSITION – The CAF opposes any changes in the current common construction wage law.

ISSUE - Project Labor Agreements BACKGROUND – Under current state and federal laws both state and local government agencies in Indiana can require contractors working on their construction projects to sign a Project Labor Agreement (PLA). Typically, the PLA will insure the following advantages to the public agency – guaranteed no work stoppages during the life of the project; consistent work rules across the various trades working on the project; and, a guaranteed labor supply during the life of the project. As has occurred in past sessions of the Legislature bills are expected to be introduced in the 2014 session of the Indiana General Assembly which would prohibit state and local governments from taking advantage of the many benefits offered by using PLA’s on their construction projects. POSITION – The CAF opposes legislation

www.buildingindiana.com | JANUARY/FEBRUARY 2014


which would prohibit state and local government agencies from of current highway funds and an additional $200 million in 2015 obtaining the benefits of PLA’s on their construction projects. highway funds into an account for future “major projects”.

BACKGROUND – In the 2013 session of the Indiana General Assembly a bill was introduced which would have allowed state universities to utilize a construction manager as constructor (CMC) project delivery system for projects exceeding a certain dollar amount. The bill was being pushed by Purdue University and was restricted to vertical construction. That bill was not passed by the Legislature. A similar bill will be introduced in the 2014 session of the Indiana General Assembly. However, the 2014 proposed bill is expected to extend the CMC delivery system to all state and local government entities. Several problems have been identified related to the bill including the timing of the establishment of a guaranteed maximum price provision of the legislation, transparency in the bidding process, and self performance by the CMC. POSITION – The CAF opposes legislation that allows local and state public agencies to engage construction managers in an at risk position if such legislation does not provide for adequate transparency in the bid process, addresses the establishment of the guaranteed maximum price at an appropriate time in the design and bidding process.

ISSUE - APPRENTICESHIP TRAINING

ISSUE - UTILITY CONFLICTS DURING CONSTRUCTION BACKGROUND – Current law prohibits the use of mechanical equipment operating within 3 feet of the located center of an underground utility. That is, all excavation within this zone must be done by hand, even if the utility line(s) have been definitely located. POSITION STATEMENT – The Construction Advancement Foundation of Northwest Indiana, Inc. supports changes to Indiana law that accomplishes the following: 1) Allowing the use of mechanical equipment in the excavation of underground utilities; 2) Require the utility operator to locate not only the path of the line but also the depth of the lien; 3) Require the operator to assist the contractor in locating and exposing their lines if the contractor has difficulties doing so.

2012 NWIBRT

INNOVATION AWARD RECIPIENT

EXCELLENCE IN SAFETY AWARD RECIPIENT 2 0 1 2

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BACKGROUND – For many years the State of Indiana, through the Indiana Department of Workforce Development (DWD), has supported the construction industry’s apprenticeship training program with an annual $4 million grant. These funds have been used to pay expenses related to apprentices attending Ivy Tech State College. The vast majority of apprentices in the industry receive an associate’s degree from Ivy Tech upon completion of their apprenticeship program. Additionally, that state has financially supported the Indiana Plan – a program to encourage and assist minorities to enter apprenticeship training programs. There has been some discussion in the Pence administration to eliminate this funding for the program.

POSITION – The CAF opposes legislation to divert current funding for highway projects to a reserve account to fund unidentified future projects.

AR

R

ISSUE - CONSTRUCTION MANAGER AS CONSTRUCTOR

D WINN

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POSITION – The CAF supports legislation to continue state financial support for the union construction industry’s apprenticeship training program through Ivy Tech and to restore funding to The Indiana Plan.

ISSUE – HIGHWAY FUNDING BACKGROUND – The Indiana Department of Transportation budget for the next fiscal year will decrease by 30% the past “Major Moves” era funding levels. A proposal has been made to place $200 million JANUARY/FEBRUARY 2014 | www.buildingindiana.com

29


RULE OF LAW

Better quality of life for the future

By Monica J. Conrad, Partner, Church Church Hittle & Antrim

M

ost every parent aspires for their child to have a better standard of living, a better home and a better education than they have had. In a Gallup poll released in January 2013, almost all students between 5th grade to 12th grade who were polled indicated that they too thought they were likely (52%) to very likely (43%) to have a better standard of living, a better home and a better education than their parents. We often link an improved standard of living to college attainment. Education remains an important factor driving quality of life. The commonly held belief for many generations has been that people with a college degree earn more over a lifetime than people without a degree. The same Gallup poll results showed 50% of today’s adults are doubtful that our current youth will have a better life than their parents. Professional occupations have suffered lay-offs, out-sourcing, and job restructuring with the increase of technological efficiencies since the “Great Recession.” The increased cost of tuition and expenses for college is rising more rapidly than inflation rates. It is not uncommon for college graduates to face debt and underemployed in jobs that are part-time or not specific to the field they studied. In short, post-secondary education now merely opens opportunities to have a job. In September 2013, the Complete Col30

Improving educational opportunities for today’s youth

lege America organization, which works with states to increase the number of college and career certificates, released additional statistics filling in the college graduation picture for Indiana’s youth. Only 42.5% of full-time students graduate from college within the four years. If measuring the number of full-time students who graduate from college with an extended time frame of six year, the rate increases to 68.8%. Part-time students rarely graduate; rates reported for either a 2-year or 4-year degree are less than 10%. Recent Indiana statistics reveal slightly more than

Part-time students rarely graduate; rates reported for either a 2-year or 4-year degree are less than 10%. Gallup Poll, 2013

20% of the population has college degrees. The clear link between coursework and relevancy to a career path is often missing in the educational experience for high school and college students. They lack clearly defined pathways that begin in high school and continue onward into a postsecondary education which includes bachelor’s degree, associate degree, or career certificate. The Indiana Business Research Center from Indiana University’s Kelly School released a September 2013 report identifying a growing “skills gap” between employer expectations and qualified candi-

dates - including those with certificates as well as those with associate or bachelor degrees. This is even more pronounced with “middle skill” jobs that require an associate degree or a career certification. These “middle skill” jobs are sometimes high wage jobs that can be obtained without college debt. In the next several years, 2/3 of jobs will be in the “middle skill” category requiring either an associate degree or career certification which can be obtained without college debt. Also a shortage of scientists, engineers, technicians and skilled production workers is expected. Affecting all employers is the lack of candidates with “soft skills” of interpersonal skills, critical thinking, and professionalism. During the 2013 legislative session, Governor Pence signed two pieces of legislation to strengthen the pathways between Indiana’s K12 education to college and career programs. One legislation, co-sponsored by House Minority Leader Scott Pelath of Michigan City, created the Indiana Career Council to bring together the efforts of Indiana’s job creation and education. The other legislation established Works Councils within geographic regions throughout Indiana. The Works Council is charged to evaluate available, career, technical, and vocation opportunities for high school students in each region. Key questions for both Councils are identifying: 1) what are essential components of demand driven education and training system; 2) what are the challenges to grow a skilled workforce; and 3)

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what are examples of regional high school programs that are successfully partnering with industries to develop relevant college and career programs. Toward the fulfillment one of its legislative charges, the Region I Work Council completed its initial report on November 1, 2013. Of the 26,850 projected new jobs to be added in Northwest Indiana within the next five years, health care, manufacturing, construction, and professional services are expected to be areas of high growth. Initial reports suggest that these positions are going unfilled due to shortages in available qualified candidates or delayed retirements. (See table.) Before the Works Council is the opportunity to review career pathways offered in area high schools. Ideally, a college readiness pathway would include Core 40 classes in a career technical format. In other words, this would allow a high mechanical engineering course as a technical skill course to be integrated into an academic course such as algebra or an anatomy course to be integrated with a

nursing course. These types of integrated courses help prepare students for more advanced college courses or for paid internships. These experiences also prepare students to successfully matriculate into post-secondary programs that can be linked to part-employment opportunities in students’ field of study. The goal of the Works Council and Career Council is to foster better understandings and collaboration between high schools, post-secondary institutions and

industry. A close collaboration between employers and educators is expected to yield better preparedness for high school students choosing to enter college or to pursue an associate degree and/or a technical certification. In the end, we hope that children born today will have a satisfying quality life with an improved standard of living, better home, and improved educational opportunities than those currently offered.

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31


SAFETY ZONE

New Federal Rule Protects Construction Workers

By Job Site Safety employees: Doug Dicke, operations manager in Slidell, LA and Paul Decker, operations manager, Michigan City, IN

D

id you know that under CFR 192 there is no standard for protecting workers in confined spaces in the construction industry? Most safety professionals would likely have missed a true/false statement if asked this question. Thankfully, in early 2014 a federal rule to protect construction workers under OSHA is scheduled to go into effect in the construction industry. In 1993, OSHA issued a rule protecting general industry workers under (29 CFR 1910.146), but did not implement a rule for the construction industry. Construction sites typically have higher turnover than the general industry and the worksites, particularly the confined spaces, are continually evolving as work progresses. Because of these unique characteristics, the protection rules for the general industry have not extended to construction site workers. From the OSHA viewpoint, the general industry rules were not adequate 32

enough to address the changing nature of confined spaces on construction worksites. There are two regulations that OSHA has been able to use to somewhat protect and enforce standards for construction workers. Subpart C, 1926.21, safety Many smaller contractors and construction companies do not have an effective safety program because they “can’t afford it”. The new regulations will address this problem by mandating that all companies implement safety programs to protect their workers on-site.

training and education specifies training for personnel who are required to enter confined spaces and defines a confined or enclosed space. Secondly, the General Duty Clause, Section 5(a)(1) of OSHA states, “each employer shall furnish to each of his employees employment and a

place of employment which are free from recognized hazards that are causing or likely to cause death or serious physical harm to his employees.” As you can see, one regulation pertains to training, while the other provides vague guidance on safe work environments, failing to address any specific standards for safety in confined spaces on construction sites. While OSHA has had some success with enforcement using these regulations, there is still room for much improvement. Outside of these regulations, protection for construction workers in confined spaces has relied heavily on contractors and companies with effective safety programs. Since these programs generally supersede OSHA standards, they typically have safety requirements for both general industry and construction workers. Most mid- to large-sized construction establishments have implemented these programs because they understand that safety on the job site is crucial to their success. Unfortunately, many smaller contractors and construction companies do not have an

www.buildingindiana.com | JANUARY/FEBRUARY 2014


effective safety program because they “can’t afford it�. The new regulations will address this problem by mandating that all companies implement safety programs to protect their workers on-site. So what exactly is included in the new standards? There are two major changes that will greatly improve the safety of construction workers who work in or around confined spaces. Currently, clear guidelines are only in place for permit-required confined spaces. The new rule takes a step-by-step approach to outlining the safety requirements for all confined spaces on construction sites. Before work can begin, employers will need to determine if there are any confined spaces at a job site. If so, the employer will evaluate the space for existing or potential hazards and then classify the space according to the physical and atmospheric hazards. The four classifications include: Isolated-Hazard Confined Space, Controlled-Atmosphere Confined Space, PermitRequired Confined Space (PRCS) and Continuous System-Permit-Required Confined Space. The proposed rule will have requirements that are tailored to each type of confined space so that the potential hazards can be controlled. The second major improvement relates to the management of employees working in or around confined spaces. Under the General Industry guidelines, when both site employees and contractors are working in or near a confined space, the site manager and the lead contactor share the responsibility of managing entry into the confined space. Under the new rule, there will be a single controlling contractor who will coordinate entry into the site for all employees. This will help eliminate any confusion around the site and ensure there is one clear log of employees entering and exiting a confined space. In addition to these two key improvements to the safety regulations, there are several additional requirements that will be included in the new rule to improve safety in confined spaces. Employers can establish an Isolated-Hazard Confined Space by eliminating all physical and atmospheric hazards in a confined space. For controlled atmosphere confined spaces, continuous monitoring is required unless the employer can demonstrate the periodic monitoring is sufficient.

Entry supervisors must monitor the conditions of a confined space during entry by any site employee. No written plan for confined space entry is required when the employers maintains a copy of the proposed rule at the worksite. Early warning for upstream hazards in sewer-type spaces will be required. All of these requirements are being proposed as part of the new rule with the goal of improving safety on the job site. Currently, OSHA estimates that each year there are 644 fatalities and 967 injuries among employees working in confined spaces on construction sites. OSHA has predicted that the proposed rule, when implemented properly by employers, will reduce the average number of fatalities and injuries in confined spaces in the construction industry by about 90%. That is 6 fatalities and 880 injuries prevented annually! In our business, that is a slam dunk. Look for more information to come in early 2014 about improving your job sites with these improved safety standards for your employees.

JANUARY/FEBRUARY 2014 | www.buildingindiana.com

33


COVER STORY

A Solid Foundation Matters Most

Basic Skills Are The Most Vital For 2014’s Growing Occupations

By Nick Dmitrovich

T

he state of Indiana has grown into a leader in the advanced manufacturing and life sciences industries, but in order to sustain this level of prestige, Hoosier workers must continually develop their abilities and strive for elevated skillsets. Surprisingly, the skills that are presently in the highest demand from Hoosier employers are still relatively basic ones, not the high-tech skills that most people would expect. Using data from the Indiana Department of Workforce Development (IDWD), the Indiana Business Research Center (IBRC), part of the Kelley School of Business at Indiana University, found that a pattern of need for basic skills existed across 11 different occupational growth regions, even for jobs requiring different levels of preparation. Their reports found that the projected needs for social skills (including categories such as coordination and instructing) were higher than the needs for technical, systems and resource management skills. This demand also reflected predictions from the United States Bureau of Labor Statistics (BLS) for large occupation growth in professional and business services such as the healthcare and social assistance industries. “While every job entails a unique mix of skill requirements, higher paying jobs overwhelmingly expect workers to improve competence in basic skills like reading, writing and arithmetic, as well as active listening, speaking and critical thinking,” said Michael F. Thompson, IBRC Economic Research Analyst who authored the skills report. “Developing these skills is a crucial first step to building advanced skills needed to move even further up the career ladder.” To project the demand for skills, the IBRC and IDWD analyzed employment projections were analyzed to produce a skills gap index. The measure quantifies the rate of growth 34

for each skill based on the job requirements of projected openings through 2014 for 712 occupations across Indiana. Essentially, the higher the index number, the higher the potential gap between the supply and the demand for that particular skill. The findings of this projection were as follows: Skills in Highest Demand for all Indiana Occupations, through 2014

Rank

Skill

Index

1

Reading Comprehension

100.0

2

Active Listening

97.1

3

Critical Thinking

94.3

4

Speaking

91.4

5

Coordination

88.6

6

Active Learning

85.7

7

Instructing

82.9

8

Monitoring

80.0

9

Writing

77.1

10

Time Management

74.3

11

Learning Strategies

71.4

12

Social Perceptiveness

68.6

Source: IBRC and the Indiana Dept. of Workforce Development One of the recurring themes that IBRC reported was the need to develop clear educational pathways that begin in the early years of a student’s educational career and continue on to post-secondary education. They stated that regardless of what type of degree or certification a student hopes to achieve, having well-defined learning goals can help establish a solid foundation for the student’s entire career pathway. Northwest Indiana’s Center of Workforce Innovations published several materials that concur with these notions. www.buildingindiana.com | JANUARY/FEBRUARY 2014


After surveying over 100 Northwest Indiana employers, asking them the skills that are lacking from those younger people applying for positions, the Center of Workforce Innovations released posters to local area schools depicting ten traits that employers are consistently seeking: • Have a positive attitude • Work well with others • Follow directions • Show up for work on time • Recognize problems and find solutions • Manage time effectively • Apply good listening skills • Be honest and dependable • Pass a drug or background test • Dress properly and practice good grooming JANUARY/FEBRUARY 2014 | www.buildingindiana.com

Considering that these highly demanded skills are so rudimentary, one might wonder what kind of outreach is being done to develop these skills in young Hoosiers. Woloshansky said, “There is a grassroots initiative in NWI called READY NWI.  It is a coalition of businesses, K-12, post-secondary, economic and workforce organizations which are working towards creating an awareness of the careers/jobs available in Indiana as well as the skills necessary to be competitive for the job.  Youth are receiving information about these jobs as well as seeing how their current education and skills position them to secure these jobs through new assessment strategies and career planning starting in the 7th and 8th grade.  They enter high school with their individual plan and take course work to prepare them to be both college and career ready.” To take things a step beyond just the basic skills, 35


READY NWI has also identified a need to encourage Hoosier individuals to pursue higher education. One of READY NWI’s studies found that between 2008 and 2018, new jobs in Indiana requiring postsecondary education and training will grow by 79,000 while jobs for high school graduates and dropouts will grow by only 16,000. Approximately 55 percent of all jobs in Indiana (1.7 million) will require some postsecondary training beyond high school in 2018. As such, READY NWI has developed initiatives with business leaders, school districts, and higher education leaders to work collectively to help students become college and career ready.  Two other major programs from throughout the state of Indiana are also working hard to develop strong career skills among the younger Hoosier demographic: the “Dream It. Do It.” campaign established by Conexus, Indiana, and the “Economic Opportunities through Education by 2015” (EcO15) initiative led by the Community Education Coalition (CEC) of Columbus, Indiana and the Heritage Fund, a Community Foundation of Bartholomew County. EcO15 was funded by $38 million provided from Lilly Endowment Inc. and $15 million leveraged from the Southeast Indiana region, and has since used the funds to develop infrastructure and common support services that work toward the goal of helping each person in southeast

Indiana move up at least one level in their education, training or job placement within the region’s three strongest economic clusters: advanced manufacturing, health care, and hospitality/tourism. “Dream it. Do it.” is a campaign funded by Conexus, Indiana, designed specifically to attract and motivate young people into pursuing careers in advanced manufacturing and logistics. Speaking about the Conexus educational programs, Conexus President & CEO, Steve Dwyer said, “Our goal is hand-in-hand collaboration between industry and academia to create the right programs that are teaching the skills that employers really need, a pathway to employment that begins in high school.” Though it may seem surprising to learn that the traits in highest demand from today’s employers are fairly basic skills, it becomes apparent that Indiana companies are looking for workers who can adapt to their particular niche. Rudimentary reading, writing, mathematic and communication skills are essential for flexibility – and in today’s ever-changing work environment, flexibility is certainly a trait that will enhance any labor force. As Indiana workforce development organizations continue to foster the growth of targeted skillsets in Hoosier youth, a larger demographic of skilled workers will continue to grow over the coming years, boosting the strengths of any work environment in which they being their careers.

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BOTTOM LINE

Timing Is Everything Put an Investment in Your Business Today and Take the Uncertainty Out of Your Business Equation

By Steve Kring, Market President La Porte County, Commercial Lending, Horizon Bank

E

ven during slow economic times, successful business owners never stop investing in their organizations. When times are tight, enhancing efficiency with minimal spending may be top of mind. But as the economy begins to improve – as it appears to be doing now – making larger monetary investments may be the real key to growth. Whether it’s for new equipment, facilities, talent or training, making the decision to invest in your business requires careful planning and precise timing.  By working closely with a business advisor and the right financial institution, you will have the opportunity to explore the types of loans that are available to you so that you will have the capital to make a larger investment into your operations.  This enables you to take a proactive approach to your business growth...with the assets you need to take the uncertainty out of your business equation

So is now the right time to invest in your business? Answering the following questions may help you decide.

• 38

Are your long-term goals well-defined? Knowing where you want your business to be in five years – and how you plan to get there – will help guide your investment decision. For example, if you want to sell the company within five years, you may want to focus your improvements on attributes attractive to potential buyers, such as a strong infrastructure or brand. When drafting your goals, make sure they are specific, measurable, actionable, realistic and time-based (SMART). Are you in touch with your customers? Just as you’ve adjusted

throughout the Great Recession, so have your customers. Do your products and services still meet their needs and desires? Do your marketing efforts fit their buying patterns? What do customers like and dislike about what you’re doing? An investment in your business could help you keep pace with and anticipate shifting customer expectations. Do you understand your market and competitors? Market research can reveal both current and potential competition in your industry, and highlight what your company needs to do to maintain a competitive advantage. Can you estimate the benefits of the investment? Do you have processes in place to track the success of your investment? Lenders will want to know how the investment will add to the company’s bottom line. You’ll want to be able to gauge progress and adjust as necessary.

The Time Is Now If the time is right to invest in your business, a business banker can help determine what type of financing may be right for you, and potentially customize a loan for your specific needs and goals. How to Find a Business Banker That’s a Right “Fit” for You? Many business owners already have a relationship with a bank and may not want to go out of their “comfort zone” to seek a new bank or a new business advisor. However, it makes smart business sense to do your homework and research area financial institutions that have exceptional credentials in the business arena. Specifically, you should seek banks with the following credentials: www.buildingindiana.com | JANUARY/FEBRUARY 2014


Small Business Administration (SBA) Preferred Lender According to the SBA, the Preferred Lenders Program (PLP) is an effort to streamline the procedures necessary to provide financial assistance to the small business community. Under this program, SBA delegates the final credit decision and most servicing and liquidation authority and responsibility to carefully selected PLP lenders. As an SBA Preferred Lender, your business advisor can evaluate and approve a loan with more timely approvals and less paperwork, especially for the small business client. The experience and expertise in SBA loans simply gives your bank another arrow in the lending quiver. Rather than turn down a loan that is somewhat outside of our comfort zone of lending, the financial advisor can make it an SBA loan, thus enabling the borrower to secure a loan that might otherwise be turned down. Additionally SBA guarantees provide banks with the comfort to stretch the terms beyond the normal, such as doing the loan over a longer period of time, which reduces the borrower’s payment amount, or doing a loan with insufficient collateral when viewed on a conventional basis on time-sensitive purchases or investments. A Top Performing Bank How do you know if a bank is a top performer and has the longevity, experience, and financial stability to customize a loan

JANUARY/FEBRUARY 2014 | www.buildingindiana.com

that is best for you? Take a look at their financial performance. In the financial world, one widely-known index of performance – especially for the investment community - is the Keefe, Bruyette & Woods (KBW) Honor Roll. According to the criteria set forth by KBW, Honor Roll Winners are publicly traded banking institutions with ore than $500 million in total assets that meet some pretty stringent criteria, such as consecutive increases in net income per share. Another indicator, specific to community banks community banks and thrifts with less than $2 billion in assets, is the annual listing of the top 200 community banks in the nation conducted by US Banker magazine. This recognition is bestowed upon the nation’s top community banks based upon their 3-year average Return on Equity. When researching a bank, you may also check its Bauer Rating. Bauer Financial has been reporting on and analyzing the performance of U.S. banks since 1983. The best rated banks are given 5 Stars, rated Superior, based upon Bauer’s independent analysis of financial performance. These awards and rankings show that the bank is financially strong, stable, and going to be around to service your loan for the long-term. Timing is everything in the business world. And, by building a relationship with an experienced business lender, the time to invest, grow, and build is now.

39


BEING PRODUCTIVE

Old Dogs Are Learning New Tricks Demand for Mature Workers is Stronger than Ever

collaborated to survey numerous employers and companies throughout 14 Indiana counties to showcase the emerging trends ecently, Gallup published a study that highlighted a truth of today’s older workers. More than 75% of the companies surveyed said that older many Hoosiers are already aware of; the average age of retirement is steadily rising each year. Gallup stated that workers were more reliable and had a better work ethic – certhe average age that current U.S. retirees said they retired is now tainly qualities that every business would hope to find in their 61, compared with 59 in 2003 and 57 in 1993, and that the aver- workers. Many employers also said that older workers had a age retirement age is likely to continue to increase in the years lower absentee rate, and were more knowledgeable about their positions with the company. ahead, as more nonretirees expect to This knowledge has proven valudelay their retirement past age 65. More than 70% of the companies able to many employers, who are inAs the demographics of Indiana’s surveyed said that they are using creasingly placing their mature worklabor pool continue to expand into their aging workers to mentor ers into training roles. More than 70% more mature age ranges, defined as younger workers, either to impart of the companies surveyed said that those over the average retirement age, knowledge and skills or to model they are using their aging workers to shifts begin to emerge in the trends of good work behaviors. mentor younger workers, either to imolder worker’s roles in the workplace part knowledge and skills or to model and their participation in adult congood work behaviors. tinued education. The Tecumseh Area There is, however, one flip side to this coin; though aging Partnership, an aging worker initiative service in West Central Indiana, and Indiana WIRED, an organization that was created by workers serve as a solid model for younger employees, many are the Department of Labor Employment Training Administration, lacking skills in emerging technology. The current trends of older

By Nick Dmitrovich

R

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www.buildingindiana.com | JANUARY/FEBRUARY 2014


workers enrolling in college courses or continuing education reveal that many individuals are taking classes for skills pertaining to specific jobs or positions, not just for attaining a degree. And the majority of the courses mature workers are enrolling in pertain directly to developing technology skills. “Some companies have said they value the work ethic the older labor force has and that many of the younger job applicants are missing. Employers are looking for workers who have solid technical skills, strong current computer skills, and solid work ethic skills or success skills. These skills are ageless! Having to catch up with today’s technology is probably one of the biggest barriers to older workers when looking for a job—so upskilling on technology skills is one trend related to the education they are seeking,” said Linda Woloshansky, President and CEO of the Center of Workforce Innovations, in Northwest Indiana. Woloshansky also said that mature job-seekers need to keep up on the current resume trends, and to be aware of what today’s employers are looking for in their applicants. “When looking for employment the job seeker needs to be sure the format and style of the resume is updated to match current trends in resumes. Also, it is important to eliminate recent gaps in work history,” Woloshansky said. “This can be done via internships, volunteer work, and other related part-time employment. Employers want to see that the person is motivated, willing, and working. Older workers need to position themselves as life-long learners. It is never too late to go back to school. It is important to stay current and seek out in-demand occupations. It is important to access educational opportunities so that any skill limitations can be quickly remediated.” James Moore, Board Development Chairperson and Coordinator for the Wabash Area Lifetime Learning Association (WALLA), said that older individuals are becoming increasingly enthusiastic to learn new technological skills which they often incorporate into the volunteer work they conduct. “Keeping up with technology is difficult for many people because the technology changes so rapidly,” Moore said. “So here at WALLA we’ve developed classes to instruct people about vari-

ous gadgets, smartphones, tablets, etcetera, and we’re finding that our students are continually asking us for more each semester. There is a strong demand, and many of our students are using what they’ve learned in their volunteer work, which is saving companies lots of money every day. It never ceases to amaze me how much talent there is among our older workers.” As the average age of retirement continues to climb into higher age ranges, the number of older individuals in the workforce will subsequently rise. Additionally, individuals involved in continued education programs will become increasingly common as the need for their particular experience becomes more sought after by employers. The old adage of not being able to teach an old dog new tricks seems to become more invalid every single day, as post-retirement age employees continue to enhance companies by being willing to acquire new skills and serve as an example to their younger counterparts.

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SMALL BUSINESS

“Where Are They Now?” Task Force Tips

By Nick Dmitrovich

T

o commemorate twenty years in business, the Regional Development Company looks back at a few of the most successful borrowers and how the 504 loan has helped their business evolve If you’re looking for a reliable worldwide supplier of firefighting equipment then look no further than 504 borrower Task Force Tips. Located in Valparaiso, Indiana, this business is a perfect example of how a dream and a 504 loan can change a family’s life. Task Force Tips has roots that go back to the family basement, but the company has come a long way in the forty plus years since they’ve been in business. Going back to 1968, and a drawing on a paper napkin, founder Clyde McMillan was always a man with a vision. Starting off with a design for an automatic nozzle for hose lines, it wouldn’t take long before the entire world would be using Task Force Tips firefighting nozzles and equipment to put out and maintain fires. Their products would be demanded and used globally as T.F.T. represents Midwest businesses in over 100 countries, effectively making the job safer for firefighters around the world. After applying for, and receiving, the Regional Development Company’s 504 loan in 1999, the McMillan family saw their dreams begin to come to life. The family used the loan to purchase a building on twenty five acres that President & CEO Stewart McMillan described as “literally our field of dreams.” Task Force Tips has proven that when an organization has a dream, a drive, and a direction, then a 504 loan can be the wings that elevate them to their goals. 42

“The RDC loan allowed us to take on a MUCH larger opportunity than would have been thinkable under any other conventional form of financing.  Without it, we would have simply added on to the facility we had, which would have been a very poor short sighted decision.” revealed Stewart McMillan. He added, “The loan allowed us to buy a dream, a vision and to set course in pursuit of it.” Erica Dombey, RDC President & Executive Director, said, “When we first began our partnership with Task Force Tips for their 504 Loan, our staff at the RDC felt very confident that this was a company that was going to succeed. They had innovative ideas, and a solid business platform. In the time since the loan was issued, Task Force Tips has shown itself to be an outstanding organization. The RDC takes great pride in helping small business

Photo Courtesy of Task Force Tips, Inc.

www.buildingindiana.com | JANUARY/FEBRUARY 2014


dreams come to life.” Task Force Tips continues to flourish. When asked about the company’s growth, McMillian proudly declared, “When we took the loan, we had sales of about $10 million and employed roughly 70 people.  Today, our revenue now is quickly approaching $50 million and we employ over 200 individuals.” Martin Sonnenberg, the company’s Executive Vice President, spoke a little bit about how the company has grown, and its plans for the future. He said, “In the time since we used the 504 loan, we have since added on a 180 thousand square foot headquarters in Valparaiso, Indiana. Currently, we are well poised for the future in terms of being able to meet all of our customer’s needs, and our plan is to continue achieving that goal.” Thanks to constant innovation and the RDC 504 loan, Task Force Tips is now one of the leading companies in the fire industry. From its humble beginnings to its present international status, Task Force Tips is a stellar example of what a company can achieve with the backing of a solid loan program. The Regional Development Company is a Certified Development Company licensed to make loans under the SBA 504 with a focus on assisting small businesses grow to their full potential. For more information on what RDC can do for your business, visit www.rdc504.org or call 219-476-0504. Photos Courtesy of Task Force Tips, Inc.

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43


CONSTRUCTION FEATURE

Building International Relations IU’s New Global and International Studies Building Brings The World To Bloomington

Construction Partners for IU School of Global & International Studies Building

By Nick Dmitrovich

I

ndiana University, Bloomington, is crossing some major borders with its current Browning Day Mullins construction project; the brand new Dierdorf Architects School of Global and International Studies Design Phase Building (GISB). The new facility, expected to Ennead Architects, NY be completed in July of 2015, will house apDesign Phase proximately 10 academic departments and Messer Construction 19 research centers or programs focused General Contractor on the study of global cultural processes Milestone Construction and foreign languages. These departments Site Excavation will be drawn from the College of Arts and Hefiln Sciences and also the School of Education. Mechanical, Plumbing The Dean’s offices for the School of Global ERMCO/Cassady and International Studies will also be housed Electrical Work within the new building. Gribbins Insulation Construction began on the new fourHVAC story, 165,000-square-foot structure in May Geiger and Peters Inc. of 2013. Back then, the state had approved Structural Steel $53 million in funding for the proposed building, which ultimately has required $1.7 milSkyline Roofing Roofing, Sheet Metal lion for the site-work and excavation, and roughly $38 million for the actual build. The Gate Precast Architectural Precast Concrete project has not required state financing; roughly half of the funds have Davenport Masonry, Inc. Masonry, Stone come from IU’s share of revenue from the Big Ten Network. The Waltek and Company Aluminum Work rest of the financing has come from a combination of indirect PPMI Firestop Inc. research cost recovery, proFire Protection ceeds from real estate sales and Santarossa Mosaic & Tile Co., Inc. other university sources. Stone Flooring IU President Michael Carpet Decorators Inc. McRobbie referred to the GISB Wood Flooring “one of the most important deBrown Sprinkler Corporation velopments in the nearly 200 Fire Protection Work years of IU’s history,” due to the fact that the new facility will 44

quite literally bring the world to Bloomington. IU offers instruction in more foreign languages than at any other university, and its longstanding regional/area studies programs are world-renowned. United States Vice President Joe Biden provided a video regarding the importance of the new building for its groundbreaking ceremony. He said, “This is important because international studies are becoming more and more consequential every single day. As you all know, right now we live in a fundamentally different world than we did even 20 years ago. Today there are stateless actors wielding incredible power, even with very few resources. Technology is transforming security and international relations. And new challenges emerge every single day, from the Middle East to Africa, from South America to Asia. Schools like the one you’re inaugurating are going to be needed in order for us to be able to keep up.” U.S. Senator Dan Coats, R-Ind, said, “The Indiana University I have known has always been active and interested in international

www.buildingindiana.com | JANUARY/FEBRUARY 2014


affairs, foreign cultures and languages, and America’s place in an increasingly interconnected world. This remarkable initiative - to establish the School of Global and International Studies - has been an astounding achievement.” The building will provide facilities for 320 core faculty members – several of which are highly distinguished. Former U.S. Sen. Richard Lugar, and the former U.S. Rep. Lee Hamilton, will join the faculty of IU’s School of Global and International Studies. Additionally, Ambassador Lee A. Feinstein, whose experience includes two decades serving in high-level positions in diplomacy and foreign affairs, has been appointed founding dean of Indiana University’s School of Global and International Studies. The building will feature technologically advanced learning and research environments that will enable faculty and students to work with partners around the world to understand today’s and tomorrow’s global issues. “This was a high-profile, complex project,” Ryan Steinert, Senior Project Executive at Messer Construction Company, the general contractor for the GISB. “But it was one that was very rewarding for Messer Construction. There is not a lot of new construction of this magnitude going on around the state, so we were proud to be a part of this project. Like a lot of the IU buildings, this one uses Indiana limestone in its design and will qualify for LEED Silver, potentially LEED Gold, rating status.” Robert Richardson, Senior Associate University Architect and coordinator for the planning of the GISB project said, “One of the most interesting aspects of this project is the fact that we have classrooms designed to be flexible in that furniture and technology can be rearranged to allow for more interactive teaching. We have traditional classrooms as well, in which students would be hearing a lecture from their professor, but the flexible spaces allow for a more customizable space where interactive work can be done in small groups where students are active in their learning.” “The whole Global and International Studies Building is a new school for the university. It’s a new opportunity for IU that’s bringing all of these different schools together. Different language studies that were spread out in different buildings across campus will now PANTONE PROCESS COATED be brought together under one roof.” DS 77-1 C“The building is architecturally interesting,” Richardson addC-10 ed. “There are two different wings that are connected by a three M-100 story glass atrium, and one building incorporates curvature into Y-100 its design. The architecture is contemporary, but designed in such a manner as to fit into the overall design plan of the campus. It’s K cutting-edge in technology and design, but fits into the style of the Bloomington campus. It’s also situated as a connector between the main library and locations on campus where most of the students have various activities.” Upon completion, the new School of Global and International Studies will surely catapult Indiana University onto the world’s stage of diplomatic relations. The skills that students will develop under the GISB roof will prove invaluable as the 21st century progresses. Maria Bucur-Deckard, IU’s Associate Dean for International Programs, probably described the innovations of the GISB best when she said, “We are living in exciting times as knowledge makers.”

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45


MASS PRODUCTION

Advanced Manufacturing

How Indiana Institutions Meet the Technical Needs of Employers

By Nick Dmitrovich

A

s new technologies and methods emerge, the face of manufacturing throughout Indiana has begun to shift into what many are referring to as Advanced Manufacturing. Presently, Advanced Manufacturing is Indiana’s largest economic sector, accounting for approximately 23 percent of Indiana’s jobs, according to a report from Duke Energy. Statistically speaking, Indiana is a proven leader in advanced manufacturing. The makeup of the advanced manufacturing industry throughout the state is one of the most diverse in terms of types of businesses and careers, and as a whole it’s the state’s primary economic driver. No other industrial sub-sector accounts for more than 23 percent of employment. In order to meet the demand for a highly technically skilled labor force in manufacturing, several Indiana institutions have put programs in place designed specifically to develop the skills that today’s employers need. These programs transcend the boundaries of academia and employment by reaching out to manufacturing companies and tailoring instruction to fit the 46

specific employers’ needs. Here’s a look at just a few of the targeted training initiatives taking place throughout the state: Purdue University’s Center for Advanced Manufacturing The Purdue University Center for Advanced Manufacturing works with local companies to bring together academic research and the applied needs of manufacturers. In 2000, the Central Indiana Corporate Partnership (CICP), a coalition of business and academic leaders, conducted a feasibility study and needs assessment to determine how to best help manufacturers. The study concluded that large and small companies - including automotive, food processing, electronics, steel, and pharmaceuticals - needed advanced technology. Specifically, CICP principals recommended a centralized resource that would assist existing companies, help attract new businesses to the state, and create opportunities for citizens, helping to alleviate what many call Indiana’s “brain drain.” Purdue’s Office of the Vice Provost for Research then completed a survey of 80 Indiana companies to determine existing manufacturers’ specific needs, and formed the Center www.buildingindiana.com | JANUARY/FEBRUARY 2014


for Advanced Manufacturing in 2004 based on those findings. “A high school diploma by itself just doesn’t cut it The Center works with Purdue faculty members in all anymore. Manufacturers and logistics companies need colleges and research centers, employees with high-tech skills; and develops research and The makeup of the advanced manufacturing ideally, that means taking the engagement programs meeting right classes in high school and industry throughout the state is one of the the sponsoring company’s most diverse in terms of types of businesses getting into the right programs and careers, and as a whole it’s the state’s time, cost, and technology after graduation.” primary economic driver. needs. Projects can range from The website for “Dream it. classroom assignments, to Do it.” contains several logistics capstone projects, mastersand manufacturing themed video and PhD-level research programs, or to longer term, more games to hook the attention of youngsters, many listings strategic relationships leveraging the benefits of master regarding job and career recruiting events, numerous portals research agreements. through which individuals can apply for schools or training programs, and take a look at current hot jobs throughout Ivy Tech’s Advanced Manufacturing Indiana’s manufacturing industries. Technology Program The Advanced Manufacturing Technology Program at These three Advanced Manufacturing programs are just Ivy Tech is designed to prepare students for the modern a brief example of the numerous different initiatives taking manufacturing environment. This program prepares students place around Indiana. Each year, as manufacturing becomes for employment with companies that have implemented more and more specialized, new methods of instruction team oriented design, production, quality, and maintenance emerge to meet the demands of today’s high-tech employers. systems within the manufacturing industries. In keeping with the times, Hoosier institutions are always American manufacturing companies are constantly evolving to maintain a constant flow of skilled individuals into the Advanced Manufacturing labor force, making sure utilizing increasing levels of high-tech equipment involving that Indiana remains number one in this industry. multiple integrated systems. As such, the purpose of the Ivy Tech Advanced Manufacturing program is to produce individuals who are able to operate, troubleshoot, and maintain these high-tech systems, and connect them with recruiters for today’s modern manufacturing companies. The program is designed to introduce students to a broad range of technical/automation skills that provide a broad, practical education that prepares students for the modern manufacturing industries. This program prepares students for employment with companies that have implemented team oriented design, production, safety, quality, and maintenance systems within the manufacturing environment.

The “Dream It. Do It.” Campaign “Dream It. Do It.” is a campaign to broaden awareness about today’s manufacturing careers, and exists as a collaboration between the Indiana Department of Workforce Development, the National Association of Manufacturers, the Manufacturing Institute, and Conexus Indiana. The primary goal of this program is reaching out to Hoosier youths to get them interested in careers in manufacturing. “We’re working to connect the most tech-savvy generation in history with high-tech jobs here in Indiana,” said Steve Dwyer, President & CEO of Conexus Indiana. “It’s clear that the web is the best vehicle to capture the imaginations of our young people with these careers, and encourage them to take the first steps towards getting the education they need.” JANUARY/FEBRUARY 2014 | www.buildingindiana.com

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Indiana top ranked schools

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Indiana Rank

Overall (Forbes) rank

College

1

24

2 3

92 97

4

106

5 6

141 146

University of Notre Dame DePauw University Indiana University Bloomington Purdue University West Lafayette Wasbash College Earlhamm College

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CONSTRUCTION FEATURE

Construction Partners for Lake Central HS Construction Project Turner Construction Construction Management

Education Upgraded Lake Central High School’s Ambitious Construction Project

Powers & Sons Construction Construction Management Turner Construction General Contractor, Excavation Schmidt Associates Architectural and Engineering Barton Malow Company General Contractor, Interior, Carpentry

By Nick Dmitrovich

C

onstruction on one of the largest educational projects currently being built in Indiana, is nearing completion; the EMCOR/Hyre Electric Company Lake Central High School expansion and renElectrical Work ovation is taking place in St. John. Arctic Engineering Company Work began on the 850,000 square foot Plumbing project in June of 2012, and has been divided into two phases. Approximately 560,000 Mechanical, Inc. HVAC square feet was retained from the original building and approximately 269,000 square Ziolkowski Construction, Inc. feet of new area was added. The final buildConcrete, Brick Work ing will be approximately 30% larger than the Larson Danielson Construction original facility. Insulation The first phase of construction consists SUBCONTRACTORS of an academic wing that will stand three Lenex Steel Company stories and feature approximately 100 classBalco, Inc. rooms, a 50-meter competition swimming The Lazarro Companies, Inc. Werntz Supply pool and locker rooms, which will all be atMidwest Dock Solutions tached to an existing freshman center. The CDS of Indiana, Inc. second phase of the school will involve the Spray Insulations, Inc. addition of a building that will feature a fine JP Phillips, Inc. arts band area, a 1,000-seat auditorium, a Mr. David’s Flooring Intnl, LTD Oosterbaan & Sons Co. large media center, a large gym and adminisIndustrial Dec Flooring by B&E, LLC tration offices. The 140,000 square foot freshKiefer Specialty Flooring, Inc. man center is also slated for renovation. Construction Specialties, Inc. The need to update and rebuild Lake Won Door Corp. Pole Tech Co., Inc. Central High School was prompted by agSpecialty Construction, Inc. ing infrastructure and overcrowding due to Republic Storage Systems, LLC enrollment growth. The original core of the Modernfold Chicago, Inc. Diskey Architectural Signage, Inc. building was established in 1964, and last Prestige Distribution, Inc. school-year there were 20 teachers who had Interior Concepts of Indiana, LLC to teach in portable classrooms due to a lack Indiana Wire Products, Inc. of space. New features coming to the school Daktronics, Inc. include: a three-story classroom addition, Associated Controls + Design new vocational classrooms, a new auditoTri-Electronics, Inc. Interkal, LLC rium, new media center, and a new athletics Lee Company, Inc. gym. Indecor, Inc. Total costs for the high school construcThyssenKrupp Elevator Corp. Turner Construction Greenwood

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tion are estimated to fall around $101 million, which will come from $160 million that the Lake Central School Corporation (LCSC) allocated through a property tax referendum that voters passed in November 2011. The remaining funds are being used for an additional construction project that the school corporation is simultaneously undertaking at its Protsman Elementary School facility. The build is being managed by a joint effort of two construction management firms: Turner Construction of Chicago, and Powers and Sons of Gary. Schmidt Associates of Indianapolis is the architectural and engineering firm. Due to requirements in place on the tax referendum, the pace of this project is taking place rather rapidly, with the school remaining open during all phases of construction. In fact, LCSC, Turner/Powers and Schmidt Associates have stated that the project is one of the fastest projects of this size that they’ve ever worked on. “The only way we could design a project this large and complex and meet the schedule was to start on the design immediately after we were hired and work as fast and efficiently as possible to ensure that science rooms, classrooms and athletic facilities meet the needs of each department,” said Tom Neff, AIA, LEED AP, of Schmidt Associates, the lead architect on the project. “Teachers and administrators have been generous with their time and diligent about reacting to plans quickly. In my 30 years of designing schools, I’ve never experienced a design project that has moved as quickly as this one.” A primary goal of the school corporation was to maintain previous levels of energy costs and consumption levels, even

www.buildingindiana.com | JANUARY/FEBRUARY 2014


though the building is growing by roughly 30% in size. To accomplish this goal, Schmidt Associates chose Energy Star as a guide post to establish energy usage goals and then to be able to track the potential energy consumption through the design. One of the most interesting and unique aspects of the Lake Central High School project that helps attain the preset energy consumption goals is the fact that the new facility incorporates one of the largest VRF systems (variable refrigerant flow system) ever designed and installed in the United States. The VRF system allowed for a phased construction process that integrated the new system within the existing structure to be able to keep the students and staff in the building throughout the entire construction process. According to Schmidt Associates, the use of a separate fresh air delivery system allows for compliance with the new ASHRAE indoor air quality standards, while providing a continuously tempered air system to maintain a balance of humidity with temperature control, resulting in a projected 48% energy and CO2 savings as compared to the median building. The total annual energy savings for this project is 85,675,126 kBtu with an estimated cost savings of $695,590. Recently, Lake Central High School Principal Robin Tobias published some updates on the current status of the school’s construction. He stated that for the academic wing on the west side of the school, the exterior landscaping is in place, and facial architectures, such as bricks, windows, roofing, and cornice molding are complete. The new parking lot and sidewalk lights are in place, finishing touches are being made to classrooms and all three floors have been cleaned and waxed. Currently the

school is beginning preparations with teachers and staff to start moving everything into the new facility. As for the new swimming pool, Principal Tobias said that final stress tests have been completed and the pool has been filled with water and is circulating chemicals and temperature. As of the first day of school in 2014, students will begin using the new academic center and swimming areas. Lake Central Assistant Superintendent Al Gandolfi said, “It is exciting to think about how the renovated Lake Central High School will improve the lives of our students. They will have more space, better science labs, a more interactive learning environment, more technology and a modern media center, and better facilities for the arts and athletics. It will be a high school everyone in our community can be proud of.”

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51


LOGISTICS

Growing Skilled Labor from Within

Internal Ways to Bridge the Skills Gap

Kris Deckard, Ready Indiana’s Executive Director.  Indiana is the leading provider in terms of the number of ow are Hoosier companies working out the problem of MSSC certifications awarded, recording 7,078 Certified Produchaving open, good-paying jobs in logistics and manufac- tion Technician (CPT) and 574 Certified Logistics Technician turing but not having anyone skilled enough to fill the (CLT) certifications in 2012. Dozens of Indiana companies have position? By growing their own qualified workers from within. publically stated their preference for hiring MSSC certified The Manufacturing Skill Standards Council (MSSC) provides workers; with Cummins being the most visible of those employprograms for internal training of logistics and production tech- ers, as they mention preferring MSSC certified individuals on nicians that companies can take advantage of to literally pro- their application website. duce their own highly-skilled labor force. Ivy Tech President Thomas J. Snyder said, “When compaMSSC is a non-profit, industry-led, nies consider expanding to Indiana, training, assessment and certificathey want to know, with certainty, “When companies consider tion system focused on core skills and the skill level and proficiency of the expanding to Indiana, they knowledge needed by the nation’s frontworkforce. MSSC certifications prowant to know, with certainty, line production and material handling vide assurance that Indiana workers the skill level and proficiency workers. The MCCS system offers both in advanced manufacturing and loof the workforce. MSSC new and current employees the opporgistics are here and ready to contribtunity to verify that they have the skills certifications provide assurance ute. We are proud of Ivy Tech’s leadneeded in today’s technology-intensive ership and achievement. This recogthat Indiana workers in advanced jobs. MSSC’s credentials are based on nition tells the world that our state manufacturing and logistics are standards endorsed by the National Asis ready to help companies grow and here and ready to contribute.” sociation of Manufacturers (NAM) as expand.” - Thomas J. Snyder, President, Ivy Tech part of its skill certification system.  “MSSC-certified workers can “The beauty of the NAM system, of help Indiana to be more competitive which MSSC is the second tier, is that it in attracting high-wage, high-skilled connects the dots from entry-level skills verification for all sec- jobs. (MSSC’s) efforts in improving workplace safety and protors of manufacturing to more specialized technical certifica- ductivity are appreciated,” said former Indiana Governor Mitch tion. Workforce development research has shown that individu- Daniels. als are more likely to persist in education, and ultimately deEverything about the MSSC certification programs is degree completion, if they experience achievement sooner in the signed to help businesses conduct their educational processes educational process; the NAM system of ‘stackable’ credentials in-house, by creating accredited company trainers who “act as leading to an associate degree provides exactly that,” explains go-to people in the workplace” helping other employees to comBy Nick Dmitrovich

H

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www.buildingindiana.com | JANUARY/FEBRUARY 2014


plete MSSC courses online at work or on their own time – particularly within the positions of Certified Production Technician (CPT) and Certified Logistics Associate (CLA) / Certified Logistics Technician (CLT). What’s important about this “do it yourself” style of learning is that companies large and small can easily take advantage of the program and use it to strengthen their staff using nationally recognized standards. “This joint action between industry, education and the public sector will grow a skilled manufacturing workforce and strengthen the US economy,” stated Leo Reddy, CEO, MSSC. “Given the MSSC’s focus on front-line workforce populations with the greatest number of jobs, it is able to certify a large number of individuals for employment and advancement.” The specific courses offered cover a wide range of topics, merging technical skills with academic and employability skills such as math, English, science, computers, communications, teamwork, and decision-making abilities. The Certified Logistics Associate (CLA) and Technician (CLT) courses cover wide range of credentials that could greatly benefit Indiana’s workforce. These qualifications address the core competencies of higher skilled, front-line material handling workers (entrylevel to first line of supervision) across the supply chain: from factories, to warehouses, to distribution centers to transporters. The Certified Production Technician (CPT) course of study focuses on four primary qualifications: Safety, MSSC Quality Practices and Measurement, Manufacturing Processes and Production, and Maintenance Awareness. The point is to instill employees with skills such as: identifying unsafe conditions and taking corrective action, train personnel to use equipment safely, suggest processes and procedures that support safety of work environment, and many other things. Across each of these courses, whether it is in manufacturing or logistics, an overarching theme of communication and competency persists. Of course, employers want workers who practice safety regulations and fulfill all of the aspects of their position – but beyond that, they also seek employees who

are good at clearly and effectively communicating thoughts, ideas and information both orally and in writing. Fundamentally it all boils down to problem solving; better communication leads to better collaboration and attainable solutions, and a better workforce for the entire Hoosier state. This is all part of a strategy to address a shortage of skilled applicants throughout the workforce – something that Indiana definitely faces. Companies have begun turning to the MSSC certification program because it offers a way around the problem of finding skilled labor: rather than searching for the best possible candidates for a position, companies can essentially grow their own. And research has shown that the program works: over 90% of individuals who have become certified through the programs reported that they are more able to problem solve and are better equipped to handle emergency situations, have a better understanding of their industry, and are able to be more flexible in a high-performance environment. 

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53


WORKER’S COMP

Prescribed and Employed Do Prescription Drugs Negatively Impact the Workplace?

By Nick Dmitrovich

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ccording to the National Institute on Drug Abuse, 7 million Americans currently abuse prescription drugs —more than the number using cocaine, heroin, hallucinogens, and inhalants combined. In the United States, someone dies from a prescription drug overdose every 25 minutes. “While prescription drugs provide relief to millions of people every year when used properly, the abuse of these potent and sometimes deadly drugs has become one of the gravest issues facing Hoosiers today,” Indiana Attorney General Greg Zoeller’s office stated. Prescription drugs were blamed for 718 overdose deaths in Indiana in 2011, a nearly 10 percent increase from 2010, and those numbers are continually on the rise as new prescriptions are filled each day. Specifically, the majority of these deaths were attributed to the misuse and abuse of opioid prescriptions, of which some 5,830,367 prescriptions were dispensed in 2011, comprising 45.8 percent of all Schedule II-V drug dispersions. So how exactly do these facts impact the workplace? It’s well known that 54

p ro f e s s i o n a l s in industrial and construction trades undergo testing to ensure a drug-free workplace, but how do companies manage individuals who are legally prescribed a narcotic by their doctor? According to the Americans with

Prescription drugs were blamed for 718 overdose deaths in Indiana in 2011, a nearly 10 percent increase from 2010.

Disabilities Act (ADA), an applicant or employee who is taking medication for a disability is protected by federal law. If an applicant is turned down because of a positive drug test, and the applicant’s medication was legally prescribed for a disability, the company could be liable, according to state and federal laws under the ADA. However, even though these narcotics are dangerous when they’re abused, they don’t necessarily pose an immediate threat to the workplace when taken with the appropriate levels of care. In fact, many companies have

programs in place to help their employees overcome addiction and substance abuse issues. Tiffany Ellefson, Vice President of Policy and Program Development of Midwest Toxicology Services in Indianapolis, said, “Everything depends on a person’s job function and their physician’s opinion about the individual dosage and directions. We would never encourage a company to issue a blanket statement saying a person couldn’t work if they were taking a prescription, it’s the physician’s opinion and it’s relative to the individual.” The Substance Abuse and Mental Health Services Administration (SAMHSA) published a study titled “Prescription Drug Abuse in the Workplace” which stated, “Prescription drugs are safe when they are taken as directed under a doctor’s orders. Fear of addiction and dependence should not stop an individual from taking medications that can help treat his or her problems, nor prevent a physician from prescribing appropriate medications.

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Proper usage of prescription drugs can help workers protect their health and thus perform more productively in the workplace. However, when taken for nonmedical or recreational purposes, prescription drugs are no safer than illicit or street drugs.” Robert Anadell, Executive Director for the Building Construction Resource Center Inc. (BCRC), in Portage, Indiana, shed some light on the direction that numerous companies follow when faced with a situation involving an employee taking narcotics. The BCRC provides confidential professional resources to individuals who face problems caused by substance abuse, chemical dependency and personal life matters; and specializes in counseling, prevention programs and educational services.  “As far as the danger, that is pretty subjective in my view,” Anadell said. “There are plenty of over the counter medications people use every day that indicate you should not drive or use equipment. I would point out that the new Medical Marijuana Laws have opened the door to a lot of discussion on the topic of the employer’s rights. Basically, so far, the recommendations are not to deny employment to anyone with a medical marijuana card, but employers have the right to expect everyone at their facility to be substance free.” “There was one case that I am aware of, in Michigan, where an employee filed a lawsuit alleging his rights were violated when he was terminated for being under the influence, and the court found for the employer. I’m certain that in the future there will be more test cases of this example.” Anadell described one path that companies can take to assist their employees as they overcome their dependence on medications through education, treatment and counseling. He said, “In the case of the BCRC there is an employee assistance program (EAP). We use “Perspectives” as our EAP. If someone is abusing drugs or alcohol and test positive, they are referred to this program and are ineligible to work until they are evaluated and follow the recommendations of the EAP, whether it be education or treatment. They are then released to for a return to duty test and probably several follow-up tests to make sure they are in compliance.

In addition, anyone can self-refer themselves to the EAP without consequence.” Considering the risks that prescription drugs can cause when they’re abused, and the uncertainty regarding legitimate prescriptions and employee drug-testing, it’s understandable why so many companies are taking a cautious approach to their policies regarding prescriptions in their drug-free workplace. Many are choosing to provide alternatives to termination, which can greatly benefit the employee in the long run. There is no “one size fits all” answer when it comes to this topic, but the evidence is clear that when p r e s c r i b e d medications are used appropriately and companies take a proactive approach to their risk-management the problems are minimized.

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55


REAL ESTATE

Where has the Most Economic Growth Been Happening in Indiana? Central and Northeast Regions Booming

Recently, the Northeast Indiana Regional Partnership delivered its State of the Region assessment, sharing the hroughout the state of Indiana, job development and results of 2013 Regional Dashboard Update and Northeast new investment in infrastructure is happening in Indiana Manufacturing Study. Key findings from the two numerous different ways. This growth is particularly studies included facts stating: distinguishable in the Northeast and Central regions, where • Northeast Indiana is outpacing the nation in the growth private investment and the Indiana Economic Development of per capita personal income. The region saw a 5 Corporation’s (IEDC) activity have percent growth rate in 2012 while been at their highest. the national rate was 3.4 percent. “While the IEDC is on record • Employment in Northeast Indiana Northeast Indiana is pace this year in regards to number outpacing the nation in the was hit harder by the recession than growth of per capita personal of projects secured, the Central and comparable regions, but Northeast income. The region saw a 5 Northeast regions have experienced Indiana outperformed both groups percent growth rate in 2012 the most economic development for three-year and one-year job while the national rate was activity thus far this year,” said growth. 3.4 percent. Katelyn Hancock, Director of Media • Northeast Indiana's gross metro Relations & Public Affairs for the product (gross domestic product IEDC. at the regional level) has grown at “That is merely based on the number of IEDC projects a rate double that of our peer regions over the past 10 secured thus far this year. However, Indiana offers years. companies a highly-rated business climate which includes • Northeast Indiana saw a period of strong recovery from a low-tax climate, skilled workforce, triple-A credit rating, 2009 to 2012, gaining an average of 2,850 manufacturing convenient location, robust infrastructure and right-to-work jobs each year. status. These are just a few of the factors that companies "The information presented at today's State of the often mention to us regarding why they pick the Hoosier Region shows that Northeast Indiana is on the right track State for new jobs and capital investment,” she said. as we continue to recover from the last recession," said By Nick Dmitrovich

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Katy Silliman, vice president of regional initiatives at the Northeast Indiana Regional Partnership. "We will use the results from the two reports presented today to help focus Vision 2020's efforts as we move forward in our mission to create a strong economic climate focused on developing, attracting and retaining talent." Indiana Govenor Mike Pence said, "Indiana is leading the charge in the national race to win manufacturing jobs. With a laser sharp focus on building Indiana into the best place in the world to start or grow a business, we take great pride in offering companies a climate conducive to creating more Hoosier jobs. From our low taxes to our knowledgeable workforce, Indiana is a state that works for manufacturing." The Central Indiana region is also seeing quite a lot of Key investments that companies have made throughout the Northeast and Central regions of Indiana, since September 2013: Central • Newegg, Inc., investing $20 million in Indianapolis, creating 150 new jobs • hc1.com, Inc., investing $1.4 million in Indianapolis, creating 62 new jobs • Motionwear, LLC, investing $229,600 in Indianapolis, creating 28 new jobs • Finance System of Richmond, investing $800,000 in Richmond, creating 42 new jobs • Sims-Lohman, Inc., investing $2 million in Zionsville, creating 32 new jobs • Patriot Porcelain LLC, investing under $15 million in Kokomo, creating 140 new jobs • Wayzata Home Products, LLC, investing $12.1 million in Connersville, creating 309 new jobs • Express Motor Vehicle Administration Corporation, investing $700,000 in Indianapolis, creating 20 new jobs Northeast • Koester Metals, investing $2.7 million in Freemont, creating 44 new jobs • Rieke Corporation, investing $7.5 million in Hamilton, creating 15 new jobs • Exo-s US, LLC, investing $6.8 million in Howe, creating 250 new jobs • Gator Cases, Inc., investing $15 million in Columbia City, creating 106 new jobs • Micropulse, Inc., investing $14.3 million in Columbia City, creating 100 new jobs • Coram USA LLC, investing $1.1 million in Fort Wayne, creating 35 new jobs • Ash Brokerage Corporation, investing $19.6 million in Fort Wayne, creating 115 new jobs • Breyden Products, Inc., investing $2.2 million in Columbia City, creating 23 new jobs JANUARY/FEBRUARY 2014 | www.buildingindiana.com

economic development activity. Recently, Indianapolis Downtown, Inc., and other community leaders, revealed the results of their year-long planning effort dubbed Velocity. The plan will serve as a framework and action plan that is intended to guide future improvements and focus investments in Downtown - especially for the next 18 months to five years. “Downtown Indianapolis serves as a model for urban revival across the country," said Indianapolis Mayor Greg Ballard. "Velocity charts a path forward to ensure that Indy remains a safe, clean and beautiful place for people to live, work, visit and raise a family." Additionally, the PNC Financial Services Group, stated in their recent Indianapolis Market Outlook that stated, “Labor market conditions are progressing nicely in the Indianapolis market area. Hiring in manufacturing, and the high pay rates those jobs entail, have provided a catalyst for the economy. Labor force growth in Indianapolis has seen accelerating gains since late 2012. All indications are that Indianapolis’ economy will continue to offer broad based employment opportunities over the coming year, allowing the jobless rate to improve steadily.”

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57


YOUR WELL BEING

Healthy Employees, Healthy Business Holistic Health Education Can Help Lower Premiums

of education to businesses is Franciscan WorkingWell. Their “Healthy U At Work” program still provides the wellness ealth care expenses are at an all-time high for businesses screenings and assessments that employers are familiar with, throughout Indiana, and experts agree that the future but adds in the additional education about healthy lifestyles that holds increasing costs for insurance premiums and many never knew existed. “This is a whole different ball game; it’s a lifestyle change,” medical care. The Centers for Disease Control and Prevention estimate that by the year 2019, the premiums for a single said Tim Ross, Director of Franciscan WorkingWell. “This is an employee will reach $25,000 per year. Corporations need a innovative approach to corporate wellness that addresses core issues affecting productivity. Right now, I solution to the never-ending increase don’t think there are enough companies in costs and many of them have begun The Holistic out there who have considered this to realize that searching for a different Nutrition Model because it’s something really different. coverage option isn’t going to help; they It’s a customizable, strategic plan to boost need healthier employees. • Know Your Primary Food employee wellness.” One new approach to growing a • Eat as Nature Intended According to Compliance and Safety, healthier staff is the addition of a holistic • Eat Whole Foods the return on investment for wellness employee wellness education program. • Reduce Toxins programming is documented to reach While “holistic” isn’t really a term used by • Identify Nutrient Deficiencies up to 600% for traditional incentives the business world very often, the facts • Identify Food Sensitivities and education. The addition of holistic have begun to reflect that the addition • Identify Underlying Infections education carries the potential to raise of holistic education can dramatically that return to even greater heights due improve the health and well-being of to the fact that it won’t cost companies participating individuals. very much, and can boost employee The overarching point of holistic wellness education is to provide individuals with the means to productivity by influencing positive lifestyle choices. Fundamentally, the holistic model states that the root causes address the underlying causes of medical conditions, rather than just treating the symptoms. Typically, this is information that of disease can be traced to nutrient deficiencies, toxicities and traditional wellness programs fail to address. In a sense, it’s a food sensitivities; but this isn’t a dieting program. It’s not about highly preventative form of healthy lifestyle, in terms of avoiding counting calories and watching your carbs – it’s about eating real, unadulterated foods. Debilitating chronic diseases such serious problems before they develop. One organization that has begun to provide this form as heart disease, diabetes and obesity, allergies, depression, By Nick Dmitrovich

H

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irritable bowel syndrome (IBS) and gastrointestinal reflux disease (GIRD) cause millions of dollars in lost productivity every year – but they can all be successfully resolved by simply understanding how to navigate the food supply and to identify what each person needs for optimal health. Holistic education utilizes the science of epigenetics, which studies the alterations in gene expression that do not involve changes in the DNA sequence. It was previously thought that a person’s genetic code was set at the moment of conception, but science has revealed that environmental factors (such as a person’s diet) can change a person’s genetic expression throughout life. Basically, a person has the ability to modify this genetic expression through the choices they make in life – and that’s exactly what programs like this aim to teach. WorkingWell’s holistic wellness programs include topics such as optimizing digestion, reducing inflammation, regulating hormones, detoxification, energy metabolism and tools for managing toxic thoughts. Pamela Johnson, Wellness Supervisor with Franciscan WorkingWell, said, “The holistic model, by definition, addresses the needs of the entire person. We are teaching people about how the food supply has changed and how additives and genetically modified foods are creating a host of new health problems. Our wellness portal supports our clients as we help them navigate through lifestyle modification.” “Occupational health has grown very positive towards holistic education,” she added, “Because it is preventative medicine and it’s much more affordable for employers.” Johnson is scheduled to deliver a presentation on this topic at the upcoming Beyond Safety Conference and Expo. Jennifer Gadzala, MS4 Operator and GIS Coordinator for the town of Chesterton, was one of the learners who benefitted from holistic education. She said, “Making the conscious decision to follow a holistic nutrition lifestyle was life changing for me.  Eating a clean diet filled with leafy greens, fruits and vegetables, nuts and grains, small amounts of animal protein and healthy fish oil has allowed my body to naturally lower bad cholesterol and raise good cholesterol, completely end 30 years of suffering with irritable bowel syndrome, and keep inflammation levels low.  Giving up the processed, chemicalladen products labeled as food was much easier than I thought it would be, and I actually crave fruit now.  I recommend whole and healthy foods and a clean lifestyle to everyone.”   Sue Gozdecki, another holistic learner from the Schererville Police Department, said that she feels a holistic lifestyle makes her better at her job. “I’ve only made a few changes in my life so far, but I can definitely say that I have more energy and I’m sleeping better, which makes me more productive. My colleagues and I learned a lot, it was great.” Investing in programs that boost productivity should always be a priority for businesses. Holistic education and healthier lifestyles are a simple approach to solving the problem of rising health care costs, but it’s an approach that’s predicted to have a tremendous impact over the coming years.

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LIFELONG LEARNING

Is It Worth It?

Facts About The ROI For Employee Education

By Nick Dmitrovich

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t’s a fundamental question facing many of today’s employers: Should I invest in educational programs for my employees? Is it worth the investment? Many business owners are concerned there won’t be an identifiable return for establishing additional training and educational programs for their staff, but research shows that the benefits far outweigh the costs. In an effort to bring companies the most discernable proof that investment in education is a smart move, we’ve gathered some interesting bits of data about employee education for your organization to consider. The American Society for Training and Development (ASTD) published a study in which researchers studied the training expenditures and practices of 2,500 different firms. The results of the study showed a strong correlation between investment in training/ education and increased profitability of the surveyed companies, especially those that were publically traded on the stock 60

market. Specifically, the report stated that companies who offer comprehensive educational programs can expect to see a higher profit margin than those who don’t by an average of roughly 24%. In fact, investment in training and education is so valuable that some studies have shown it can actually

Investment in training and education is so valuable that some studies have shown it can actually supersede investment in new equipment or materials.

supersede investment in new equipment or materials. The National Center on the Educational Quality of the Workforce (EQW) conducted a survey of 3,100 businesses across the United States and found “Increasing workers’ education produces twice the gain in workplace efficiency than increasing the value of tools and machinery does. A 10 percent

increase in education yielded an 8.6 percent increase in productivity; a similar increase in capital stock (tools, buildings, and machinery) yielded only a 3.4 percent productivity increase. The effect rises to 11 percent in the nonmanufacturing sector.” For example, Motorola, who has locations in Indianapolis as well as nationally, estimates that for every dollar spent on problem solving and statistical process control training, thirty dollars are returned to the corporation. Fortune magazine characterized them as having the “gold standard of corporate training.” In an effort to boost the levels of continuing education being conducted among Indiana businesses, recently Lt. Governor Sue Ellspermann announced a statewide partnership between the Indiana Small Business Development Center (ISBDC) and Ivy Tech Community College, which will provide business and technical skills training for employees and owners of small and emerging businesses in Indiana. “We know that often entrepreneurs

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and their employees need to enhance the business practices and technical skills that are so vital to a successful business. Accessing the resources of Ivy Tech through this partnership will enable our own ISBDC staff to be an even more valuable and effective resource for businesses throughout Indiana,” Lt. Governor Ellspermann said, Ivy Tech Community College President Thomas J. Snyder said, “This partnership is going to present training opportunities to important companies throughout our state. We will be able to streamline the access to information and knowledge that will help advance existing businesses and spur entrepreneurial ideas within emerging companies,” Beyond just the return on investment, many employers are concerned that if they spend money on educating their employees they could lose the investment entirely if the employee decides to move on to a different company or position. Interestingly, the facts actually point to the contrary in this instance; employees are actually more likely to remain with a company that provides educational opportunities. In another study done by the ASTD, 41% of employees at companies with poor training planned on leaving within a year vs. 12% planned departures at companies with excellent training. Training not only boosts employee proficiency, it improves employee satisfaction. Workers view training as a critical element in their professional development, and advancing the education of employees also helps increase their engagement and commitment within the organization. For example, ArcelorMittal is one company that invests millions into their educational programs, The ArcelorMittal Institute, each year. In 2012 more than 27,000 employees took a total of around 203,100 hours of courses and training linked to the University. As a result of this huge investment in employee education, ArcelorMittal has one of the lowest employee turnover rates in its industry; roughly 0.5% to 0.6%. Most ArcelorMittal employees remain with the company throughout their entire careers. “Because quality outcomes depend on quality people, we seek to attract and nurture the best talent to deliver superior solutions to our customers. We should not only continuously challenge and improve ourselves; we should also actively encourage and foster talent and responsibility in others. We want everyone in our company to find in their professional lives a capacity to put the best into what they do,” said Lakshmi Mittal, President and CEO of ArcelorMittal. Considering the myriad of educational options available to companies, from seminars conducted in house to tuition reimbursement programs with major institutions, and the immense potential to generate new revenue, increase productivity, retain employees and augment the workforce, it’s abundantly clear that investment in education is a sound investment in the future of any company within every industry. In order for companies to remain effective and competitive in the years to come, it is essential for companies to be made of highly educated and skilled employees.

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Digital First Impressions MARKETING

How a Website Can Make Or Break Your Company’s Image

By John Sutkowski, Web Developer, Diversified Marketing Strategies, Inc.

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he face of marketing is changing dramatically at a rapid rate. Gone are the days when a single-tracked advertising campaign will be of much use to today’s companies. Fundamentally, modern companies know that if they don’t go digital, they’re going to go broke. Quite possibly the single most effective form of digital advertising is a company’s website. Most prospective customers, particularly the ones of a younger demographic, will visit a company’s website long before they visit the physical location or dial the number of the business they’re interested in connecting with. Because of this, companies need to bear in mind that a website can dramatically affect the public’s perception of an organization. In a sense, a bad website can ruin your company’s image before you’re ever given the opportunity to meet that perspective customer. Nowadays, websites are typically a company’s frontline method of creating a good first impression in the eyes of the general public. People visit a company’s site to attempt to find the content or information they need, and to determine if working with this particular company is the right move for their situation. Since your website is probably going to be the first thing that customers see about your business, careful consideration needs to be taken to ensure that your company comes across as being professional and capable. Emphasis should be placed on speed, functionality and userfriendliness; no one wants to use a site that contains frustrating 62

technical issues, they’ll move on to another location. Make sure that things are easy to find on your website, because generally people will not have the patience to hunt for things. Functionality should relate directly to minimizing user frustration, and keeping things as streamlined as possible. Another important item to consider is browser compatibility. Many companies fail to realize that websites behave differently depending on the type of internet browser that’s being used to view the site due to the constant evolution of technology and programming. Each browser renders a page differently, which ultimately changes what displays to the user. For example, a site that looks just fine in Google Chrome may not display properly when viewed on Internet Explorer; the older the browser is, the less it’s able to support current technical evolutions. This also applies to mobile devices, as different devices use different internet browsers. The use of mobile devices for browsing the internet is constantly on the rise – more rapidly than ever. In the third quarter of 2012, mobile internet browsing accounted for 20.9% of the click share on Google. That number has since jumped up considerably to 33% of all clicks made on Google in quarter three of 2013. Companies need to recognize that their site needs to load correctly across all devices and browsers. The current trend with most of the major corporations across the United States is to have a mobile website in addition to a traditional desktop-style site, or to have a site that incorporates responsive technology that can appropriate the content of the site to fit any device’s screen. This insures greater user-friendliness in that individuals are using the device differently. Touchscreens, for example, are www.buildingindiana.com | JANUARY/FEBRUARY 2014


increasingly replacing the standard keyboard and mouse, and companies need to ensure that their audience is able to access their organization’s information across all mediums. Search engine optimization is another essential item to consider for your company’s website. When people search for your company’s name online, or simply search for topics relating to your business, you want those individuals to find your company in the search results. A few solid rules to follow to boost your company’s appearance in searches are to allow for strong titles and headlines, using “alt” tags in your images, and generate as many links to your site from others. Since most readers scan through a webpage rather quickly, having definitive headlines and titles helps viewers quickly determine what your site is all about. For example, if you’re an electrician from Carmel, IN, be sure to have the phrases “Electrician” and “Carmel, IN,” appear in the main sections of your site so viewers can easily discern what your site is about. Good content with quality labeling and tagging of materials will ensure that your site is read appropriately by web-crawling search technology. Links to your site from other pages help search engines determine that your page is trustworthy and will help your site appear higher on related internet search lists. Asking business associates to post links to your site from theirs will help this process grow, as well as having your site linked on the various associations with whom organization partners. Making sure that your company is easy to find online is very

important. Technically your website is a promotional tool for your organization, and it should be treated as such. Sites should include detailed contact information, and various ways for customers to access your product or services. The bottom line here is that a website should serve the purpose of selling your company’s image. Following steps to guarantee that viewers will appreciate what they see about your company online is an excellent way to grow your company and promote new business ventures.

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63


ECONOMIC DEVELOPMENT

Eyes on the Horizon Expert Predictions for the 2014 Hoosier Economy

By Nick Dmitrovich

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ith the new year commencing, many economic experts across the state of Indiana are devoting their attention to forecasting the 2014 Hoosier economy. Last year saw numerous uphill battles with the hard-pressed issues of the fiscal cliff, the sequester, and the end of federal stimulus monies from several years ago. As a result of it all, Indiana saw less-than exciting economic gains in 2013. As recovery started to take effect throughout the state, Indiana regained about half of the jobs lost in 2008-2009; totaling roughly 57,000 jobs in 2011, and 56,000 jobs in 2012. This momentum began to slow down quite a bit in 2013, when only about 37,200 jobs were created. Of course, this is still a positive result, but not quite as strong as the years prior. Growth in Indiana’s gross domestic product (GDP) slowed in 2013 as well. Indiana’s GDP was hit harder than the nation’s was in 2008-2009 but output growth rose more quickly as the years went by, until 2013 when it dipped slightly with a growth rate of 1.3 percent compared to the nation’s 1.7 percent. “Next year, Indiana output growth is expected to double and 64

eclipse the nation’s rate,” writes Timothy Slaper, Ph.D, Director of Economic Analysis at the Indiana Business Research Center, IU’s Kelley School of Business. “That said, it is forecast that neither Indiana nor the United States will return to long-run growth trends. Rather, more of the sub-par growth rates are expected.” “On the employment front, the return to sub-par growth is likely to generate an additional 55,000 jobs in 2014, about the same rate as in 2011 and 2012. With the forecast of 47,000 new jobs added to the Indiana economy in 2015, the state will then be back to pre-recession employment levels of 2007,” Slaper said. He added that Indiana’s unemployment rates for 2014 and 2015 are expected to fall roughly a percentage point each year, closing at an annual average of 6.8 and 6.0 respectively. “It won’t be until 2016 that the rate is expected to reach “full employment,” about 5.5 percent,” Slaper said. Carol O. Rogers, Deputy Director at the Indiana Business Research Center, Kelley School of Business, discussed the Hoosier per capita personal income (PCPI) predictions for 2014, with respect to various metropolitan areas. She said, “Indiana is expected to see a 6 percent increase in PCPI in 2014. The metros at the front end of this growth (growing at a faster rate than the Indiana forecast) include Muncie, Terre Haute and Anderson.” www.buildingindiana.com | JANUARY/FEBRUARY 2014


Slaper said, “Indiana’s per capita personal income (PCPI), has stabilized. The gap between U.S. PCPI and Indiana PCPI widened in the first decade of the century, but while the large gap has been a source of consternation of breadwinners and policy makers, the gap has closed ever-so-slightly.” Recently, in early December, Ball State University Professor Michael Hicks, PhD., Director of the Center for Business and Economic Research, released his department’s 2014 Economic Forecast. Hicks stated that the Midwestern states, including Indiana, have experienced an economic downturn and recovery that largely mirrors the national economy, and that these states are expected to see overall growth in GDP similar to what’s expected of the U.S. as a whole through 2014. But when it comes to personal income growth, Indiana is expected to outpace the other Midwestern states. “Indiana is expected to see accelerating personal income growth, while the remaining Midwestern states will see growth, but at slower rates than in 2012 and 2013,” Hicks stated. With specific regard to the Central Indiana region, Hicks predicts that this region will see more growth than the rest of the state. “Since the end of the Great Recession, the region has seen strong population growth of 2.14 percent, per capita income growth of more than 8 percent, and employment growth of 1.8 percent. These are remarkably robust growth conditions, which mark the region as one of the more resilient and growing metropolitan areas in the nation,” Hicks said. “The Central Indiana region is forecasted to grow through 2014 at a faster rate than both the nation and state as a whole. We project this region to see GDP growth of 2.4 percent, and growth of more than 13,000 jobs by the end of the year. Personal income will grow by 2.5 percent, led by growth of durable goods manufacturing, construction, trade, and finance,” Hicks said. Hicks points out that two of the primary factors attributed to this growth in the Central Indiana region are the strong gains the manufacturing industry has made and the structural changes which have taken place within the private sector. Due to the fact that manufacturing has rebounded so strongly since the recession, new income and job growth throughout the manufacturing indus-

try will be due to long-term effects, not lasting effects of the recession. In the private sector, employment growth in the area will depend upon the growth of the regional population, and less on attracting new companies, due to a shift that has occurred in the level of income earned from sectors which produce goods exported from the region. Hicks states that Indianapolis has been unusually adept at attracting residents, and subsequently growing new employment in non-exportable sectors. With all of the trials and tribulations over the last few years, it’s comforting to see that the experts are forecasting generally positive predictions for 2014. Though economic growth is still beneath the levels that many would like to see, at least 2014 is expected to be a continued step in the right direction. As levels of employment, GDP and personal income rise, so too will the continued success of Hoosiers across Indiana.

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The Last Word Rail Corridor from Columbus, OH to Chicago is a Real Possibility By Dave Wellman, Communications Manager, Regional Development Authority (RDA)

I

s a high-speed passenger rail corridor from Columbus, OH, to Chicago a real possibility? A group of Indiana communities stretching from the Illinois to Ohio border believe so – and have taken the first steps toward realizing the project. Last January, the group – the Northeast Indiana Passenger Rail Association – unveiled a feasibility study and business plan outlining the advantage of the proposed corridor and the benefits to local communities and the two states involved. This year, they are working together to amass funding needed for the first stage environmental study required to build the line. The effort has the support of leaders in Fort Wayne, Warsaw, Plymouth, Valparaiso and Gary, all of whose communities would have a stop on the line. Five more communities in Ohio would also have stop, with the route terminating at Port Columbus International Airport. Plans call for 12 trains carrying up to 350 passengers in each direction per day, with travel times to Chicago from as far east as Plymouth barely an hour. This growing interest in passenger rail in northern Indiana is being driven by some overarching changes in transportation patterns. The most obvious is the dramatic rise in fuel prices over the last decade. Since 2004, prices at the pump have doubled. Unsurprisingly, miles driven peaked that year and have been declining ever

since. This decline is especially notable among younger adults, who drove more than 2,000 fewer miles in 2009 than in 2001. More than a quarter (26 percent) of adults under 34 didn’t even have a driver’s license as of ’09, up from 21 percent in 2001. At the same time, rail ridership is booming. Amtrak recorded ridership of nearly 62.5 million in 2012, up from 40.3 million in 1997. In the Chicago region, several Amtrak lines, including connections to St. Louis and Milwaukee, have seen ridership gains of 40 percent or more since 2007. As of 2012, the Chicago MSA was Amtrak’s fourthlargest market and had ridership growth of 64 percent since 1997. With transportation patterns shifting toward rail, a high-speed corridor between Columbus and Chicago not only makes sense, it will make money. The feasibility study indicates that the proposed line would actually turn a profit and would not require ongoing state subsidies for operations. In Federal Railroad Administration parlance, this is referred to as “independent utility,” and gives the route a top rating for construction funding. It would also be a boon to Indiana businesses. A 2012 study done by the Environmental Law & Policy Center examined the rail supply chain in the upper Midwest and identified 460 companies across seven states that manufacture products used in highspeed rail. There were 99 of these

manufacturers in Indiana, more than any of the other states except Ohio (122). Overall, the feasibility study estimates that the line would create some 12,000 temporary construction jobs, more than 26,000 permanent jobs over the next 30 years, and increase household income and development opportunities all along the route. With the feasibility study in hand, the group is now working on gathering funds needed for the tier 1 environmental impact study, with a deadline of January of next year for completion. If all goes as hoped, a second environmental study and design work could be finished by 2016, and the route in operation by about 2020. Of course, there is the small issue of actually paying for the project. Capital construction costs for the 300-mile route come to a cool $1.285 billion. However, the strong cost/benefit ratio would qualify the project for up to 80 percent federal funding, leaving Indiana and Ohio to split the remaining amount. State investment could be further reduced by the kind of public/ private partnerships currently being sought for the construction of the Illiana expressway between Indiana and Illinois. In sum, the time is right, the cost is low and benefits immense in both the short and long terms. If you’re interested in learning more, visit http:// niprarail.org/.

The opinions expressed in this article are the views of the authors. We welcome your response. If you are interested in writing an opinion piece, send an e-mail to editor@buildingindiananews.com.

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Building Indiana: January/February 2014