A publication of
JUly 2014
Measuring up Advanced Manufacturing Center of Excellence promotes collaboration
JUly 2014 The Business Connection 1
2 The Business Connection JUly 2014
Contents
Also inside
EcO15’s Seamless Pathways page 8
Chamber Connection . . . . . . . . . . . . . . . . . 12 On the Move . . . . . . . . . . . . . . . . . . . . . . . . . 16 Around the Watercooler . . . . . . . . . . . . . . 18 Business Leads . . . . . . . . . . . . . . . . . . . . . . . 20 Mark McNulty column . . . . . . . . . . . . . . . . 21 Morton Marcus column . . . . . . . . . . . . . . 22 Business Indicators . . . . . . . . . . . . . . . . . . . 22
Comments should be sent to Doug Showalter, The Republic, 333 Second St., Columbus, IN 47201 or call 812-379-5625 or dshowalter@therepublic.com. Advertising information: Call 812379-5652. ©2014 by Home News Enterprises. All rights reserved. Reproduction of stories, photographs and advertisements without permission is prohibited. Stock images provided by © Thinkstock.
On the cover
Joe Fuehne, Austin Creasy and Matt Ferrell in the metrology lab at the Advanced Manufacturing Center of Excellence. Photo by Joe Harpring. Story page 4.
Small businesses not hiring page 14
JUly 2014 The Business Connection 3
Success, by any measure Advanced Manufacturing Center of Excellence matches needs of students with those of businesses By Barney Quick n photos by Joe Harpring
It’s a bit amazing that one building can provide so much value for such an array of southeastern Indiana stakeholders, but that’s what the Advanced Manufacturing Center of Excellence has been doing since its June 2011 opening. Three schools, a variety of corporations and a growing number of aspirants to manufacturing careers are making use of every one of the 43,000 square feet of the structure. “I’ve worked in two other Ivy Tech regions, and the center is a truly unique facility,” says Steven Combs, interim chancellor for Ivy Tech Community College’s Columbus region. “It’s a great showcase and venue for collaboration.” Top right: The Advanced Manufacturing Center of Excellence holds the key to replication: proper technique and equipment. The center is a hands-and-mindson experience for students and researchers. Below: The main entrance.
4 The Business Connection JUly 2014
Above: Robotic controls. Top left: Material flies as a mill cuts forms from a block of stock. Opposite page: Revealed by a CNC mill: forms within a block. Bottom left: Fabricated in plastic at an AMCE lab, a replica of a connecting rod from the original Oldsmobile Aurora engine used at the inception of the Indy Racing League in 1997. The center is a project of EcO15, a regional education initiative undertaken in 2007 by the Community Education Coalition and Heritage Fund, the Community Foundation of Bartholomew County. The actual building was designed by Pelli Clarke Pelli Architects and Ratio Architects Inc. Its classes are used by IUPUC, which has a mechanical engineering program; the Purdue College of Technology, which offers various degrees and certificates, most relevantly in mechanical engineering technology; and Ivy Tech, which likewise offers a number of credentials, many of which are transferable to other institutions. The main distinction between mechanical engineering and mechanical engineering technology is that the students of the former are more immersed in design and theory, while those on the MET path are generally preparing for shop-floor occupations. IUPUC currently has about 80 students in the ME pipeline. “A lot of courses are the same for ME and MET students, such as statistics, dynamics, thermodynamics, fluids and strength of materials,” says Austin Creasy, a Purdue clinical assistant professor, “but MET students do more lab work.” The Purdue side of the center includes a fabrication lab, but for Creasy and director and associate professor Joseph Fuehne, the really exciting environment is the metrology lab. “It’s what sets us apart,” says Fuehne. The metrology (the science of measurement) lab is controlled for temperature and humidity, has its own heating, ventilation and airconditioning system, and has positive pressure to prevent dust. Its equipment was donated by Cummins Inc., Faurecia and Eli Lilly and Co. The coordinate measuring machine, the probe of which travels the length of a part, gets a lot of use. “In several of the classes we’ve created, see AMCE on page 6 JUly 2014 The Business Connection 5
AMCE continued from page 5 students conduct reproducibility and repeatability studies to find the errors in measurements,” says Fuehne. One of Creasy’s students will present a paper at a conference this summer on his measurements of a ren cylinder. Ren is a material frequently used by pattern makers in pre-production projects. A lot of surface-finish study occurs in the metrology lab. An important piece of equipment for that is a Surfcom Flex unit manufactured by Zeiss. The unit was made possible by a grant from the Vibrations Institute. “The goal is to determine when chatter is about to occur,” says Creasy. Chatter is an undue level of vibration in a machining operation. The Smart Scope, made by Optical Gaging Products, can determine nearly infinitesimal dimensions with amazing precision. Fuehne, Creasy and metrology manager Matt Ferrell like to demonstrate its capabilities with the side of a penny on which Abraham Lincoln’s face, unable to be discerned with the naked eye, peers between the columns of his memorial. The Smart Scope can zoom in and measure the width of his head (.00425 inches in one recent demonstration). The surface finish machine yielded the information that his head rose 23 microns above the surface of the penny. Other Purdue College of Technology equipment in the center includes two MakerBot Replicator 2X rapid prototypers and a Z Corporation Spectrum Z510 3-D printer. Fuehne says that a 3-D scanner is “on our wish list.” Several area companies, such as Cummins, Faurecia, Edinburgh-based container manufacturer George Utz and Illinois-based Elkay, give the college projects to work on. “I would guess that we’re the only facility in the state that can
A penny is measured by an OGP Smartscope. The face of Lincoln, inside the engraving of the Lincoln Memorial on the back of the coin, was optically measured by the machine to be .00425 inches across.
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A coordinate measuring machine probes the dimensions of a standard trailer hitch down to the tens-of-thousands of an inch.
undertake these kinds of projects,” says Fuehne. “We’ve been approached by companies such as Batesville Tool & Die that didn’t have electronic drawings for their existing parts, and we created CAD (computer-aided design) files for them.” Students come from all 10 EcO15 counties, as well as Johnson County. They are a mix of those fresh out of high school and older students. “I think the ‘traditional’ population is growing,” says Fuehne. “We used to have exclusively later-afternoon and evening classes, because everyone worked during the day.” Cummins has begun a trend with its school-to-work program. It’s an opportunity for students to work 19 hours a week while earning academic credentials. “By the time they graduate, they have a nice relationship with their employer,” says Fuehne. Other companies are seeing its merits. “In terms of recruiting, it’s much cheaper.” The entities within Ivy Tech pertinent to the center are its School of Technology, which is skills-based, its School of Applied Science and Engineering Technology, which prepares students to transfer to other institutions, and its Advanced Manufacturing Institute, which readies students for careers in that field within a year. The institute, according to Combs, is “unique in that students come to school four days a week. Disciplines such as English and math are embedded in the project-based curriculum in such a way as to be relevant to what they’ll be doing.” Another Ivy Tech entity, the Corporate College, approaches companies to find out what they need. It recently conducted a light-duty diesel training program for Cummins. see AMCE on page 11
JUly 2014 The Business Connection 7
Following the path
EcO15 program helps develop habits needed by skilled workforce By Barney Quick n photos by Greg Jones
The Columbus area’s focus on technical prowess is well-known. Its high concentration of available occupations on the more refined levels of manufacturing and health care, as well as the relative robustness of its overall economy, makes it an attractive place for job-seekers. Organizations offering positions say they’re generally equipped to provide the training needed to bring people into their workforces. What they’ve conveyed to those focused on strategic planning for the area is that the main issue is a sociocultural gap between the jobs they can offer and the 8 The Business Connection JUly 2014
Above: Jake Lucas, right, a CSA student, takes a reading in the C4 building trades class as teacher Mike Metz takes notes for him. Left: Columbus North student Jessica Buenrostro works in the C4 computer tech support class as she troubleshoots the computer on her bench. Opposite page top: Columbus North students Christian Mahoney, left, and Joe Johnson watch as the Haas CNC lathe turns out a part in the precision machining class. Opposite page bottom: Standing at the control panel of a Hurco CNC mill, Mackinnen Geon monitors the machine as the head works through a block of steel.
requisite soft skills needed for applicants to be effective. A wide array of people is working to address this. Most are associated one way or another with EcO15, an area education initiative, and the Seamless Pathways Project, the second phase of its activity. EcO15 was established in 2007 by the Community Education Coalition and Heritage Fund, the Community Foundation of Bartholomew County. Projects of its first phase of activity included the Advanced Manufacturing Center of Excellence, the implementation of the “Dream It. Do It.� manufacturing-career campaign in the high schools in the 10-county EcO15 area, and enhanced training and education in the health care and hospitality fields. The second phase addresses the fact that the EcO15 area, and Columbus in particular, are creating more job openings than there are people to fill them. The root of the dilemma is a cycle of generational poverty that has resulted in a sizable group of people unacquainted with the world of work. Hence the focus on soft skills. see EcO15 on page 10 JUly 2014 The Business Connection 9
EcO15 continued from page 9 “As Seamless Pathways began, it really came down to two parallel programs: a pipeline for entry-level production positions and employerled outreach for specific positions,” says Al Degner, director of workforce development at Elwood Staffing and longtime EcO15 participant. Both of these programs involve a number of partners and activities. Partners include several area manufacturers; a United Way program called Bartholomew County Works; area staffing agencies; McDowell Education Center; C4, which is a career and technical education program in the high schools of Bartholomew, Brown, Decatur and Jackson counties and parts of Johnson County; WorkOne Southeast; the Columbus Area Chamber of Commerce; and Columbus Regional Health. Jim Battin, president of Strategic Consulting Group and EcO15 consultant, says partnerships and coalitions are the key to addressing the issues comprehensively. “There are steps in a circle when building coalitions,” he explains. “You develop trust, implement, learn and go around the circle again.” Bartholomew County Works is tasked with breaking the generational poverty cycle. It began operating in February and has, to date, put two groups through its program. It involves mock interviews, a skills inventory and segments on attitude and empowerment, legal issues, money and budgeting, and health considerations. “We do a lot of screening before we accept people into the program,” says Cathy King, financial stability coordinator for United Way of Bartholomew County and spearhead of Bartholomew County Works. Once accepted, a participant is assigned a self-sufficiency coach. see EcO15 on page 11
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AMCE continued from page 7 An aviation operations program is in the works, in collaboration with Columbus Municipal Airport. Course work would take place at the center. It would start on a certificate-of-training basis. Combs says his school’s goal is to add a technical certificate and, by the fall of 2017, a full two-year degree. Equipment in Ivy Tech’s mechatronics lab includes industrial robotics and programmable logic controllers. “Our MotoMan Robotics lab is one of four in the country,” says Randy Proffitt, the Ivy Tech Columbus campus’s executive director of marketing and communications. “It’s a pretty big deal when people come here to get certification.” Siemens, the technology conglomerate, recently used the center for its Training the Trainer program. “They chose Columbus because of the center,” says Combs. In August, the local campus will host a two-day get-together of Ivy Tech’s state and regional boards of trustees, chancellors and Ivy Tech President Tom Snyder and his cabinet. A community reception will be held Aug. 6 at the center. The AMCE has already established a track record of enriching lives in our region, and the possibilities for more are still presenting themselves.
EcO15 continued from page 10 “Before they start, they sign a contract with a call-before-you-quit provision,” King says. “If someone is on the verge of leaving the program, his or her first call is to the coach, who can walk the person through what’s appropriate.” The program is based on one in Cincinnati, which has been operating successfully for several years. “I went through the Cincinnati course, and several of our team members went there to observe,” says King. The team conducted research for about 12 months prior to launch. Staffing agencies play an important role in the program. Degner reports that its first placement was through Elwood. Heather Babb, regional vice president of Malone Staffing, says, “We make openings available for Cathy to pass along to participants.” C4 is headquartered at Columbus North High School, and those involved are constantly looking at how to maximize its relevance. “Right now, we are asking, where can we get the most bang for our buck?” says Stephanie Weber, EcO15’s communications and outreach specialist. “We said to our manufacturing partners, ‘Can you come over to C4 with us and conduct a gap analysis?’” Those partners identified three high-skill, high-demand jobs — CNC machine operation, electronics and computer-aided design — that C4 should focus on. To that end, they developed a new C4 pathway proposal. It includes a pilot industrial-maintenance-overview class and an array of choices for specialty classes and a work-based learning option. “We’ve submitted the proposal to the Indiana Department of Education. If it’s approved, it will go live in the fall of 2015,” Weber says. Elwood Staffing is addressing the soft-skills issue with an in-house program called Success Through Associate Readiness (STAR). It’s a computer-based curriculum and proficiency test designed to inculcate in associates the habits of responsibility, teamwork, communication and attention to detail. “On average, we’ve seen about a 55 percent reduction in turnover in 15 days on an assignment,” Degner says. Clearly, the web of relationships among interested parties in the effort to bring people and jobs together is dense and intricate. It’s also successful, because there are so many minds attuned to what has worked and how to improve various initiatives. As Battin says, “That’s the power of collaboration.” JUly 2014 The Business Connection 11
chamberc july 2014
Monthly publication of the Columbus Area Chamber of Commerc
TEN Networking Roundtable
From the president “The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” — George Bernard Shaw Recently, Rick Johnson, president of Johnson Ventures, shared this quote with a room full of entrepreneurs. At the Chamber, we meet a lot of these “unreasonable” folks. These are the people who use their kitchens as offices, their garages as factories and their living rooms as distribution centers.
Friday, Aug. 8 8-9:30 a.m. Columbus Visitors Center
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As a community, we are wise to focus on these risk-takers because they make the wheels of our economy turn. America’s 28 million small businesses create nearly two out of three jobs in our economy, employing half of our private-sector workforce. It is prudent to support the efforts of entrepreneurs by removing red tape, providing financing and offering business counseling and mentoring. When we create an environment that fosters business development, the community will be rewarded. The footprints that entrepreneurs leave behind include patents, investment, jobs and new businesses. On Aug. 18, the Columbus Area Chamber of Commerce will salute some of these “unreasonable” people at the Venture Awards. And we invite you to come help us celebrate. Cindy Frey
12 The Business Connection JUly 2014
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Venture: a risky or daring journey or undertaking On Aug. 18, the Columbus Area Chamber of Commerce will launch a new event: The Venture Awards. It will be a celebration of those who dare to venture into the unmapped territory of entrepreneurship. At the Venture Awards at Factory 12 Event Loft, the Columbus Chamber will spotlight notable businesses adding jobs and wealth to Columbus. The Chamber will be honoring businesses in these categories: Entrepreneur of the Year, Most Innovative Business, New and Emerging Business and a Small Business Advocate. This promises to be a lively event with John C. Wall, Cummins vice president and chief technical officer, sharing his unique perspective on risky undertakings. The cost of dinner is $40 for chamber members, $45 for non-members. Reservations are required. For more information, contact the Chamber at 812-3794457. The event is sponsored by MainSource Bank.
TEN Talk Friday, July 11 “Reading Financial Statements” Presented by Sara Jacobi, CPA at Blue & Co. LLC Do you struggle to understand your financial statements? Have you ever wondered what exactly debit and credit really are or what assets and liabilities really mean and why it is important to know? Do you find you are trusting your accountant to get things right but have no way to really know if the financial statements or tax returns are accurate? Are you curious as to what the bank is looking for when it looks at your financial statements? If any of these questions have circulated through your mind, the July TEN meeting will help provide the answers. Register online at www.columbusarea chamber.com.
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New members CCI Roofing 2346 N. Road 200W Columbus, IN 47201-6214 812-375-972 http://www.cciroofingsystems.com Chicago’s Pizza 3780 W. Jonathan Moore Pike Columbus, IN 47201 812-657-7003 http://www.chicagospizzaindy.com Express Employment Professionals 3515 Two Mile House Road Columbus, IN 47201 812-376-242 http://www.expresscolumbus.com Mike the Graphics Guy 1604 18th St. Columbus, IN 47201-6214 812-345-8389 Pomp & Bloom 442 Fifth St., Suite 4 Columbus, IN 47201 812-344-1302 www.pompandbloom.com Taku Japanese Steakhouse 305 Fourth St. Columbus, IN 47201-6214 812-799-7956 www.takusteakhouse.com Woodforest National Bank 735 Whitfield Drive Columbus, IN 47201 812-376-3940 http://www.woodforest.com
JUly 2014 The Business Connection 13
Waiting game:
Why small businesses won’t hire By JOYCE M. ROSENBERG n AP Business Writer
Even as the economy extends its growth and small businesses slowly add jobs, most owners are still holding off on hiring. Many owners have no plans to add to their payrolls, according to recent surveys. In three released recently, the most optimistic reading came from Bank of America Corp., which found that 52 percent of owners plan to hire over the next 12 months. But Wells Fargo & Co. found only 21 percent planned to hire, and in a Citibank survey, 25 percent had plans — numbers consistent with other surveys in the past year. Some owners who do want to hire face obstacles like finding workers who can and want to do the job. In monthly reports from the National Federation of Independent Business, owners have said they can’t find people with the skills they need. What will it take for companies to hire? The answer differs from one business to another.
WANTED: FOUR CLIENTS
Marilyn Trent estimates it would take four more clients bringing in revenue of about $250,000 for her to hire for her company that designs websites and company logos. Trent Creative is based in Detroit, where the local economy has been hurt by the devastation the auto industry suffered during the recession. Competition is a problem. Plenty of companies do the kind of work Trent does. Trent Creative has enough clients to keep the company’s seven employees busy, but they’re not overworked. So at this point, Trent has no need to hire. But she’s optimistic she’ll get more clients. Trent specializes in work for manufacturing companies, and their business is picking up as their customers, Detroit’s automakers, sell more cars. She needs to do more sales work to persuade them to create or update their Web pages. “I need to update my website and do more marketing,” she says.
THE BURNOUT FACTOR
Mike Coffey isn’t planning to hire now, but he will start recruiting if his staff of 16 shows signs of overload. Coffey’s company, Imperative Information Group, does background checks for employers. Business is good for the Fort Worth, Texas, company because the local economy is strong. Employers are hiring and want information about job candidates. Rather than hire to meet the increased demand, Coffey gives workers overtime two or three times a week. He’s cautious about hiring because he had to lay off 11 employees in 2009, when the job market froze, and he doesn’t want to cut staff again if business slows. His workers like the overtime. But he keeps an eye on them, watching for clerical mistakes and other signs of burnout. “Once you start seeing things like that you think, we’re probably starting to get a little fatigued,” Coffey says.
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MORE MONEY, MORE WORKERS
associated press
CEO Joe Carter poses in the warehouse at Snyder Environmental in Maumelle, Ark.
Joe Carter wants to hire workers to expand his company that removes asbestos, lead paint and other toxic materials from buildings. Snyder Environmental has two problems: It needs money, and it needs people willing to do the work. Investors who prefer Silicon Valley startups aren’t interested in an unglamorous Little Rock, Arkansas, company, Carter says. And bankers are slow or unwilling to lend to Snyder Environmental or its clients. “This week, we were delayed again on a project because the bank had not met all the regulatory requirements on the deal,” he says. Snyder Environmental has enough demand to double its business over the next two years, Carter says. But besides the money issue, he can’t find the people he needs to add to his staff of about 55. Applicants must pass drug tests, and they need background checks to get clearance for military projects. They must also pass a physical examination because Carter’s employees work around dust. But Carter’s afraid that those who are hired will leave because they hate the work. He’s had people quit in their first week. “They have either an unwillingness to perform the work or an inability to meet the criteria,” he says.
HEALTH CARE FALLOUT
Dr. Omar Ibrahimi’s dermatology practice needs two more employees, one full-time and one part-time, to run more efficiently. But the rising costs of treating patients and the drop in reimbursement from insurance companies prevent the Stamford, Connecticut, office from hiring, says office manager Saida Ibrahimi. Because of the changes in insurance under the new health care law, the practice gets 20 percent to 30 percent less revenue from insurers than it did last year, Ibrahimi says. Meanwhile, the practice pays more for medications and supplies. More staffers would free Ibrahimi to talk to insurance companies to get approvals for procedures, something that Dr. Ibrahimi does. Time he spends talking to insurers is time not spent with patients. The economic saving grace for the practice is cosmetic procedures like Botox injections and tattoo or scar removals, which are not covered by insurance. Patients pay for those procedures out of their own pockets. “If we weren’t doing cosmetic work, we’d be in the red,” Saida Ibrahimi says.
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JUly 2014 The Business Connection 15
on the move
Roberta Smith-Miller
Ryan Crissinger
Todd Sims
Nancy Stroia
Roberta Smith-Miller, Ryan Crissinger and Todd Sims of Prudential Indiana Realty Team Columbus have earned Prudential Real Estate’s 2013 President’s Circle award. Prudential Real Estate is part of the HSF Affiliates LLC real estate brokerage family, which includes Berkshire Hathaway Home Services. The award recognizes the network’s top 3 percent of residential sales professionals who exemplified great sales measures in closed residential GCI, commercial GCI or closed 50 residential units for the year. Nancy Stroia, Robin Knorr, Cindy Mitchell, April Hooker, Ryan Ebener, Carol Rudicel and Spring Parsons have been named to Prudential’s Leading Edge Society. The award recognizes residential sales professionals who reached great sales thresholds in closed residential GCI, commercial GCI or closed at least 35 residential units for the year. Leigh Burchyett and Barry Czachura of Burchyett Realty Group were named to the Honor Society for 2013. The award recognizes residential sales professionals who exemplified great performance in closed residential GCI, commercial GCI or
Robin Knorr
Cindy Mitchell
April Hooker
Ryan Ebener
Carol Rudicel
Spring Parsons
closed residential units for the year. Outstanding Sales Achievement award recipients are Ryan Crissinger, Todd Sims, Nancy Stroia, Robin Knorr, Cindy Mitchell, April Hooker, Ryan Ebener, Carol Rudicel, Spring Parsons, Roberta Smith-Miller, Leigh Burchyett, Barry Czachura, Dawn Hauck, Dan Fish, Jillian Mishler, Denise Hammer and Kevin Metz. Brenda Showalter, activity director at Hickory Creek at Columbus, successfully completed the activity director course approved by the Indiana State Department of Health. The course included instruction on regulatory compliance and the overall functions of an activity department within a health care facility. Hickory Creek is a 36-bed, nonprofit residential nursing facility for short- and long-term care.
Columbus firefighter Norvin Williams has been promoted to the position of inspector. He began his fire service career in 1996, serving in the mechanic division of Columbus Fire Department. In 1999 he became a sworn city firefighter and is also a certified emergency medical technician and certified emergency vehicle technician. Norvin Williams
Columbus Regional Health recently received a Lifetime Achievement Award for supply chain management from VHA Inc., a national health care network. The award recognized Columbus Regional for strong results in lowering the cost of supplies for patients through the VHA PriceLYNX HCO Price Index and maintaining that level of high performance.
16 The Business Connection JUly 2014
Brenda Showalter
Cody Thompson of Columbus has joined One Click Ventures in Greenwood as art director. Prior to joining OCV he was creative director at Tactic branding and design agency in Indianapolis and also worked as a graphic designer for Delta Chi Educational Foundation in Columbus, creating direct mail, poster, video,
brochure, website and advertising designs. Thompson is a 2004 graduate of Indiana University.
engineering technology program of the School of Applied Science and Engineering Technology at Ivy Tech Community College-Columbus/ Franklin. He received an associate of science degree in mechanical engineering technology, summa cum laude, at the commencement ceremony on May 10.
Express Employment Professionals and Specialized Recruiting Group will open a new location at 3515 Two Mile House Road in early June. Headquartered in Oklahoma City, the local office will offer businesses in Columbus, Edinburgh, Seymour, Greensburg, Shelbyville and surrounding areas a full line of employment services, specializing in clients who need workers with specific skills and training but also employers handling extra projects or looking for seasonal and temporary workers. Franchise owner Mike Heffner has operated an Express office in Greenwood for nine years. The Flooring Gallery has moved from 4510 Progress Drive to 1601 Cottage Ave. Interior designer Margy Nierman is available by appointment at 812-343-4490. The business has 37 years’ experience with new home construction, residential replacement, work and commercial interiors. It offers hardwood, ceramic, carpet, vinyl, laminate and window coverings. Dr. Marian Klaes, a health care provider for 26 years, has joined Secrest ChiroMed Center at 1960 N. National Road. She is an honors graduate of Western Kentucky University, a graduate of Palmer College of Chiropractic and is a certified and licensed acupuncturist. She also holds several specialty acupuncture certifications and offers treatment in a variety of areas, including arthritis, sports injuries, fibromyalgia, posttraumatic stress disorder, migraine headaches, back and neck pain and other problems.
Amy Counts
Amy Counts has joined Salin Bank as a vice president and business development officer for the Columbus, Bartholomew County and Johnson County areas. She will be responsible for the growth of the bank’s business banking segment and finding solutions to clients’ banking needs. A graduate of the Kelley School of Business at Indiana University with a degree in finance, she has worked in the banking industry since 2001 and most recently was a small business banker with BMO Harris Bank. Walter Kansoriwula, a native of Ghana and a current resident of Columbus, has been named to this year’s All-Indiana Academic Team. The academic competition, which scores students on academic honors, activities including leadership and work experience, and an essay, is sponsored by Phi Theta Kappa, an international honor society for two-year colleges, USA Today and the American Association of Community Colleges. Kansoriwula also was named the outstanding graduate in the mechanical
Steve Charlton
Jeff Jones
Amy Boerger
Lori Thompson
Cummins Inc. has announced Steve Charlton, vice president and CTO of Engine Business since 2010, will retire July 1. Charlton joined Cummins in 1993 as director of advanced engineering, working with early plans for the V-8 light-duty diesel engine, and has held several executive engineering positions since. Prior to that he was an engineer at General Electric in England and taught engineering at Staffordshire University and the University of Bath. He is a graduate of Staffordshire University, with a degree in mechanical engineering, and the University of Aston, with a doctorate in mechanical engineering. He also was awarded an honorary doctorate in mechanical engineering from the University of Bath in recognition of his leadership in engine technology. Jeff Jones, vice president of North American engine business and marketing communications at Cummins Inc., announced plans to retire as of June 30. He joined Cummins in 1977 as a regional service manager after beginning his career as an application engineer at General Motors. During his 37 years at Cummins he has worked in customer-facing roles including service, field sales and support, OEM account management, market communications and national accounts. Succeeding Jones in the leadership of North American engine business will be 30-year Cummins veteran Amy Boerger. She will be responsible for national accounts, field sales and support and North American on- and-offhighway OEM business. She began her Cummins career in 1984 after graduating from Valparaiso University, with a degree in mechanical engineering, and has held roles in automotive marketing, field sales and service, OEM account management and Cummins Emission Solutions aftermarket business. She most recently served as general manager of field sales and support. Lori Thompson will assume a new position, vice present of engine business marketing, and will be responsible for global marketing, marketing communications and emerging growth opportunities. Her most recent position was vice president of truck and bus engine business. She graduated from Carleton College, with a degree in economics, and earned a master’s degree in business finance/marketing from the Wharton School of the University of Pennsylvania. She joined Cummins in 1979 as a planning specialist and has held roles in marketing, logistics, plant management, quality, parts and Cummins ReCon business. — Staff Reports JUly 2014 The Business Connection 17
Around the WATERCOOLER Local training opportunity
Two noncredit management workshops will be offered by the Center for Business and Economic Development July 18 at IUPUC. The workshops will be held in CC Room 176 in the Arvin Center for Graduate Business Education at 4601 Central Ave. near Columbus Municipal Airport. The three-hour, back-to-back programs, with a lunch break between them, are appropriate for business executives, human resource specialists, front-line managers and team leaders in a
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variety of workplace settings, including large manufacturing enterprises, small and mid-sized businesses, municipal government and nonprofit organizations. Engaging Employees: Creating an Effective Work Environment will be held from 9 a.m. to noon, followed by Coaching and Developing Employees from 1 to 4 p.m. The cost for each program is $135. A 20 percent discount is available when three or more individuals from the same organization register. Register online at iupuc. edu/cbed. Information: Kevin McCracken at 348-7302 or kjmccrac@iupuc.edu.
Cummins expects Indiana hiring
Cummins Inc. expects to start hiring this year at the Columbus Engine Plant as it starts building a new diesel engine that will go into the light-duty Nissan Titan pickup. Cummins CEO Tom Linebarger says production of the 5-liter V-8 engine will begin late this year. Linebarger says the initial production will be engines for vehicles such as school buses, commercial vans and small cargo haulers. He says the factory will start making engines for Nissan starting next year. Cummins said last year when it announced the Nissan deal that it could mean adding up to 500 workers over several years. Linebarger says the timing of adding new workers depends on the production needs of customers.
Companies sign marketing agreement
(812) 376-2425 3515 Two Mile House Rd. Columbus, IN 47201 Located on 46, ¼ mile west of I-65. Next to Indiana Wesleyan University.
Shepherd Insurance Agency, a family-owned insurance agency founded in 1977 with offices in Columbus, Seymour and Evansville, has entered into a marketing agreement with F.C. Tucker Co. The partnership will be called Tucker Shepherd Insurance. F.C. Tucker will use the Shepherd agency exclusively to provide its home-buying clients custom home and liability insurance options. Shepherd was recently recognized by Insurance Journal as one of the top 100 independent agencies in the United States.
Hospital plans expansion
ExpressColumbus.com
18 The Business Connection JUly 2014
Columbus Regional Hospital is about to start work on an expansion project that was first planned before it was badly damaged in flooding six years ago. The $30 million project will expand the hospital’s emergency
department and cancer center. Hospital CEO Jim Bickel says the emergency department’s patient volume far exceeds what it was designed to handle, and the cancer center has experienced a steady growth in the number of patients. The expansion is expected to be complete by the end of next year. The hospital had planned a larger expansion project before 2008 flash flooding of its first floor and basement, which forced its evacuation and closure for several months.
Indiana Limestone Co. back at work
OOLITIC — A southern Indiana company known for supplying limestone to the Empire State Building and the Pentagon is cutting stone under new ownership after going through bankruptcy. Indiana Limestone Co. technically closed and laid off all its workers earlier this month to fulfill a bankruptcy plan, then a few days later reopened with the new owners and rehired employees. The Oolitic-based company’s president says stone is being quarried from its Oolitic and Bloomington sites, with fabrication work being done in Bloomington. Duffe Elkins says the company’s loyal employees helped make it attractive to the investment firm Wynnchurch Capital. The firm bought the limestone company’s assets after it filed for bankruptcy protection in February and notified state officials it would lay off 166 workers.
Chrysler dedicates plant
TIPTON — Chrysler’s Tipton Transmission Plant, a sprawling factory seven years in the making, was recently dedicated during an event that celebrated the promise of 850 jobs. The plant, which currently employs 200 workers transferred from Chrysler’s four other plants in the Kokomo area, will build the automaker’s fuel-efficient, nine-speed transmission. When it reaches full capacity, forecast for next year, it is expected to employ 850 workers and ship about 800,000 finished transmissions to Toledo, Ohio, for the Jeep Cherokee and to Sterling Heights, Michigan, for the Chrysler 200. It also will supply Fiat plants in Italy, Turkey, Brazil and China. The factory was under construction for seven years and went through two other tenants before reaching its dedication. Chrysler and German auto parts maker Getrag originally had a deal that would have employed 1,400 workers and built the $580 million plant together, but the two parted ways after a financial dispute that ended with both companies filing bankruptcy in 2009.
Metal-processing firm to renovate factory
JEFFERSONVILLE — Delaco Kasle Processing Indiana, a joint venture between metal processing firms, plans to locate its operations in Jeffersonville, creating up to 105 jobs by 2017. The Diez Group and Steel Technologies, in a joint venture with Kasle Metal Processing, plan to invest $14.28 million in upgrades and expand the 120,000-square-foot former Kasle Metal Processing facility in Port of Indiana-Jeffersonville to 226,000 square feet by summer 2015. DKP Indiana serves the automotive, agriculture and appliance industries, processing exposed and unexposed aluminum, steel coils and blanks. The company plans to add production lines at Jeffersonville. Diez Group is a subsidiary of Delaco Steel Corp., based in Dearborn, Mich. Steel Technologies is a flat-rolled steel processor based in Louisville, Ky., a joint venture between Nucor Corp. and Mitsui & Co., with 25 company-owned and joint-venture facilities in the United States, Mexico and Canada. The Indiana Economic Development Corp. offered up to $750,000 in conditional tax credits to Delaco Steel, as well as up to $100,000 in training grants based on the company’s job creation plans. The company will not be eligible to claim these incentives until Hoosiers are hired.
Isotope maker plans $40M project
NOBLESVILLE — Radiopharmaceuticals maker Zevacor Molecular plans to open a $40 million isotope-production facility in Noblesville, creating nearly 50 good-paying jobs within five years. Noblesville will provide an estimated $1.9 million — about 85 percent of the new property taxes the project should produce — in equipment and other necessities, according to a development deal the Common Council unanimously approved. The agreement also calls for Zevacor to get a 95 percent abatement on personal property taxes for 10 years. If the company fails to deliver on its promises, so-called clawback provisions allow the city to recoup its investment, municipal attorney Mike Howard told the council. Zevacor, which has eight employees and an office in Fishers, is a for-profit subsidiary of Decatur, Ill.-based not-for-profit Illinois Health & Science — also the parent of Decatur Memorial Hospital. It operates hospital cyclotrons and nuclear pharmacies in several states, said Kenneth Smithmier, Illinois Health’s president and CEO. — Staff and Wire Reports
Cities see population surges
BLOOMINGTON — A new report by an Indiana University research group says Indiana’s four largest cities are in the midst of some big population increases. The Indiana Business Research Center report says Indianapolis, Fort Wayne, Evansville and South Bend all saw population increases between 2010 and 2013 significantly larger than seen in previous years. The report is based on U.S. Census Bureau population estimates the IU group analyzed. The authors say Indianapolis added an average of about 7,200 residents annually from 2010 to 2013, nearly twice its pace from 2000 to 2010. Indiana’s capital now has a population of about 843,000. Fort Wayne had seen flat population growth, but it grew by nearly 900 residents annually from 2010 to 2013 and is now home to roughly 256,500 people. JUly 2014 The Business Connection 19
BUSINESS LEADS COMMERCIAL BUILDING PERMITS 2665 STATE ST NEW COMMERCIAL BUILDING $550,000 GSJ PROPERTIES LLC, OWNER ESTEP & COMPANY NEW SUBWAY 1740 SF 711 CREEKVIEW DR COMMERCIAL REMODEL $1,130,000 KOHL’S DEPT STORE, OWNER WOODS CONSTRUCTION, CONTRACTOR KOHLS REMODELING 51 N BROOKS ST NEW COMMERCIAL BUILDING $60,000 THE RIDGE, OWNER SHAPE BUILDERS, CONTRACTOR THE RIDGE 2501 LINCOLN PARK DR COMMERCIAL ADDITION $400,000 CITY OF COLUMBUS/PARKS & REC, OWNER TAYLOR BROTHERS CONSTRUCTION, CONTRACTOR HAMILTON CENTER REMODEL AND ADDN 2068 2800 BONNELL RD NEW COMMERCIAL BUILDING $90,000 THE RIDGE, OWNER SHAPE BUILDERS, CONTRACTOR THE RIDGE 2625 17TH ST COMMERCIAL REMODEL $149,600 COLUMBUS REGIONAL HOSPITAL, OWNER R ADAMS ROOFING INC, CONTRACTOR ROOF COL REGIONAL HOSPITAL 2120 W 450 S NEW COMMERCIAL BUILDING $200,000 FRATERNAL ORDER OF POLICE, OWNER CLINT LOWRY CUSTOM HOMES, CONTRACTOR NEW COM BLDG FOP LODGE 2940 SF 230 S MARR RD COMMERCIAL REMODEL 20 The Business Connection JUly 2014
$1,610,000 COLUMBUS EAST HIGH SCHOOL, OWNER DUNLAP GENERAL CONTRACT, CONTRACTOR ASSEMBLY /COL EAST STADIUM 2220 W JONATHAN MOORE PK NEW COMMERCIAL BUILDING $470,000 AUTOZONE DEVELOPMENT, OWNER/CONTRACTOR NEW AUTOZONE STORE 7381 SF 2615 CENTRAL AVE COMMERCIAL REMODEL $9,110 AT&T RETAIL, OWNER G.D. SMITH INC, CONTRACTOR REPL ROOF TOP HVAC UNIT 2920 10TH ST COMMERCIAL REMODEL $572,700 DEVELOPMENTAL SERVICES INC, OWNER ONO BROTHERS, CONTRACTOR 4014 MIDDLE RD COMMERCIAL ADDITION $10,000 VERIZON WIRELESS, OWNER BLACKFOOT SPECTRUM, CONTRACTOR VERIZON WIRELESSC 15793 E 800 N COMMERCIAL ADDITION $10,000 VERIZON WIRELESS, OWNER JDH CONTRACTING INC, CONTRACTOR ADDN TO CELL TOWER 1441 W 700 S COMMERCIAL ADDITION $10,000 VERIZON WIRELESS, OWNER FORTUNE WIRELESS/HALCOM, CONTRACTOR CELL TOWER 2121 STATE ST COMMERCIAL REMODEL $4,000 WILLIAMS, ORVIL, OWNER/ CONTRACTOR REROOF COM BLDG 352 JONES ST COMMERCIAL REMODEL $2,000
may
WILLIAMS, ORVIL, OWNER/ CONTRACTOR 727 WASHINGTON ST COMMERCIAL REMODEL $10,000 SPRAGUE, RICK, OWNER MCCRORY CONSTRUCTION INC, CONTRACTOR COM REMODEL 1600 SF 4618 PROGRESS DR COMMERCIAL REMODEL $400,000 BREEDEN INVESTMENT GROUP, OWNER DRIFTWOOD BUILDERS, CONTRACTOR COM REMODEL 8750 SF
RESIDENTIAL BUILDING PERMITS 4265 BROOKFIELD DR $500,000 SINGLE FAM RESIDENTIAL NEW PHILLIPS DEVELOPMENT INC, OWNER/CONTRACTOR 4420 BROOKFIELD DR $400,000 NEW SINGLE FAM RES PHILLIPS DEVELOPMENT INC, OWNER/CONTRACTOR 5142 EAST HARVARD CT $280,000 NEW 2935 SF RES/GAR SKAGGS BUILDERS INC, OWNER/ CONTRACTOR 2070 PAWNEE TRL $300,000 NEW 3383 SF RES/GAR THOMPSON HOMES OF COLUMBUS, OWNER/ CONTRACTOR 1605 PINION CIR $90,000 NEW 2443 SF RES/GAR BEACON BUILDERS LLC, OWNER/ CONTRACTOR 3184 RED FOX TRL $220,000 NEW 5578 SF RES/BMT/GAR DREES HOMES, OWNER/ CONTRACTOR 3193 RED FOX TRL $220,000
NEW 6150 SF RES/BMT/GAR DREES HOMES, OWNER/ CONTRACTOR 3223 RED FOX TRL $220,000 NEW 5035 SF RES/BMT/GAR DREES HOMES, OWNER/ CONTRACTOR 6990 SCARBOROUGH DR $454,000 NEW RESIDENTIAL M/I HOMES OF INDIANA, OWNER/ CONTRACTOR 2338 SHADOW BEND DR $134,000 NEW 2549 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 2378 SHADOW BEND DR $117,400 NEW 1716 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 2388 SHADOW BEND DR $113,000 NEW 2331 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 1987 SHADOW CREEK BLVD $132,400 NEW 2491 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 1997 SHADOW CREEK BLVD $119,300 NEW 2077 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 2372 SHADOW CT $178,000 NEW 3540 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 2126 SHADOW FOX DR $133,700 NEW 2484 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 247 WESTBROOK CT $375,000 NEW 4610 SF RES/BMT/GAR
see leads on page 21
coach’s corner
Mark McNulty
Help customers find benefits of buying from you I’ve recently begun working with some high-tech businesses that are selling premium products and services to their clients. One of the most common issues I find in the marketing strategies of high-end (higher quality, higher price) businesses is the tendency to talk about the features of their products and services. While this issue is particularly common in technology, I see it in construction, medical, HVAC and just about every other industry. The problem with this approach is that features are all about you, your company and your product, while your customers are far more interested in the benefits they receive when they buy your product. All the business owners I have ever met are proud of what they have created, whether it is a product, service or combination of the two. They often speak proudly of the features they have created for the benefit of their patients/customers/ clients, yet they miss the opportunity to attract more customers by making the features the focal point of their marketing communications. When you are standing in front of a prospect, either literally or virtually in your online store, the thought going through that person’s head is commonly called WIIFM – What’s In It For Me? When you focus on the features of your
products and services, what you are really doing is focusing on yourself and what it is you think you do that is so important to the world. What your prospects are looking and listening for is evidence that you have been thinking about them and that your business makes their life better in some way by providing them with meaningful benefits. Here are two of the most common traps and some suggestions for avoiding them. Overuse of industry jargon – The biggest problems with jargon are that everyone uses it and not everyone outside the industry truly understands it. When you use jargon, you make yourself appear like a “me too” business, using the same language that everyone else does. Me too businesses can’t charge a premium, and most often get stuck competing on price, as their customers don’t appreciate (understand) the value your features provide. Overuse of details – Business owners are often quite proud of what they have done and communicate what they do with long lists of detailed features and useless (from a consumer’s perspective) facts, some obvious and some not so obvious. Marketing your business with a list of features misses out on the opportunity to achieve what marketing is all about – educating your potential new customers on what you do for them.
The good news is that the fix for these mistakes is fairly simple. The first step is to read through all of your communications and ask yourself “so what?” about every single feature of your services. If you can’t come up with a compelling answer to a simple question about your features, then you can remove them from your marketing. The simple question? Why should I care about that? The second step is to rephrase every statement you make about your products to be customer/ user centered. You must help your customers find their unmet needs satisfied by your marketing to help them become buying customers instead of distant prospects. One of the easiest ways to do this is to use the word “you” or “your,” or some variation of these. It is easy to get overly excited about what you do, and the temptation is to want to tell your customers all about it. While a few might care (your family maybe), what most of your customers really want to know is how your product benefits them, so be sure to always put yourself in their shoes. Remember that your marketing isn’t for you – it’s for them. Mark McNulty is a business coach with ActionCoach Business Coaching. He can be reached at 350-4903 or mark@coachmark.biz.
leads continued from page 20 SPOON, JOEL, OWNER/ CONTRACTOR 1023 WESTVIEW POINT DR $1,146,886 NEW 9523 SF RES/BMT/GAR SITARAM, DIPESH, OWNER WILLIAMS CUSTOM ART BUILDERS, CONTRACTOR 8668 WISTERIA LN $435,175 NEW 6476 SF RES/BMT/GAR
SHAW, JAMES, OWNER DONICA CONSTRUCTION, CONTRACTOR
Michael A. Perkins, DBA Perkins Pest Control LLC, 5342 S. Road 1005E, Grammer
CERTIFICATES TO DO BUSINESS UNDER ASSUMED NAME
Adam Scott Rediker, DBA Ceramics for a Cure (pottery), 3244 Nugent Blvd., Columbus
Evangeline Porter, DBA Evangeline Renee LLC (photography), 2016 Elm St., Columbus
David Swaney, DBA Cross Heating & Air, 7357 E. Road 1000N, Seymour
Mike, Stephani and Heath Thompson, DBA Thompson Hauling and Grading (handyman services), 5404 S. Vine St., Columbus Gonzalo Vazquez, DBA Taqueria Vazquez (food truck), 545 Parkway Drive, Columbus
JUly 2014 The Business Connection 21
Eye on the pie
Morton Marcus
Targeted economic development Where, oh where, should we put our economic development resources? This question often goes unasked by economic development agencies. There are those who are philosophically opposed to answering that question. Others believe the answers are so obvious, it is not necessary to give voice to the issue. We have free market advocates who believe firms should locate wherever they wish and economic development is best when not guided by government or private local interests. Alternatively, there are planners who believe that development should be guided to meet a community’s needs. States and localities give tax breaks to specific businesses to encourage investments. This is basic real estate promotion similar to an apartment complex offering “free” rent for two months. Building a highway or installing sewers is less direct because many can benefit from those advances, but it remains property development. Most jurisdictions are hesitant to be too directive. Many attempts at guiding where firms should locate have been unsuccessful; think
Urban Enterprise Zones. Nonetheless, federal and state funds still pour out of Washington and Indianapolis designated for urban or rural purposes. Where should the subsidies go? The U.S. Bureau of the Census reports only 18 Indiana counties in 2012 had median household incomes higher than the national average. Five of the top six are adjacent to Marion County (Indianapolis). Two others (Warrick and Posey) are next door to Vanderburgh County (Evansville). Porter County is part of the Chicago metroplex. Dearborn County cuddles up to Cincinnati. Other than Bartholomew County (Columbus), none of the top 18 counties is the center of a metropolitan area. This pattern is a result of reinforcing suburbanization with state and federal subsidies. For example, Indiana widens Interstate 69 to help Marion County workers live in Hamilton County. Why don’t homeowners in suburban counties pay for the transportation they use? Why don’t central county businesses pay for the infrastructure costs generated by their commuting workers? The
answers are simple. It would not be popular; it would be branded as contrary to the popular will, the “natural” desire for big houses on big lawns, the agrarian DNA of our farming ancestors. Yet would it make sense to underwrite economic development in poor counties? Apparently, left alone, high-paying businesses do not choose to locate in the five counties with the lowest median household income: Wayne, Delaware, Orange, Blackford and Grant counties. Nor are those counties close enough to high-paying jobs for them to achieve the elite status of suburbs. Of course, Wayne (Richmond), Delaware (Muncie) and Grant (Marion) were once strong centers of manufacturing. Today they have longterm problems with under-employment of people and properties. Are there state programs to revitalize these once prosperous counties? Or will we continue to endorse rural programs and the relentless suburbanization of our state? Morton Marcus is an economist who may be reached at mortonjmarcus@yahoo.com.
Business Indicators for Bartholomew County
Jan 2014 Feb 2014
Mar 2014
Apr 2014
Labor Force % Chg from Year Ago
41,674 41,652 41,863 42,054 2.46% 2.7% 3.59% 3.77%
Employed % Chg from Year Ago
39,610 39,495 39,907 40,402 5.22% 4.71% 5.79% 5.87%
Unemployed % Chg from Year Ago
2,064 2,157 1,956 1,652 -31.9% -24.02% -27.29% -30.06%
Unemployment Rate 5.0 5.2 4.7 3.9 Chg from Year Ago -2.5 -1.8 -2.0 -1.9 — Center for Business and Economic Research, Ball State University 22 The Business Connection JUly 2014
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Find the right fit for your next job at www.columbusindianajobs.com. 24 The Business Connection JUly 2014