Business Connection September 2014

A publication of

SEPTEMBER 2014

Direct approach

Eluna Coffee buys and sells worldwide

SEPTEMBER 2014 The Business Connection 1

2 The Business Connection SEPTEMBER 2014

Contents

On the cover

Ken and Tsukie Yasui roast a batch of coffee at Eluna Coffee in Edinburgh.

Photo by Greg Jones. Story page 4.

Consolidation at Toyota page 8

Called home page 14

Also inside Chamber Connection. . . . . . . . . . . . . . . . . . . . . 12 Mark McNulty column. . . . . . . . . . . . . . . . . . . . . 15 Around the Watercooler. . . . . . . . . . . . . . . . . . . 16 On the Move. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Business Leads . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 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 812-379-5652. Š2014 by Home News Enterprises. All rights reserved. Reproduction of stories, photographs and advertisements without permission is prohibited. Stock images provided by Š Thinkstock.

SEPTEMBER 2014 The Business Connection 3

Growing globally

By Barney Quick n photos by Greg Jones

Eluna Coffee can buy from one continent, process in a second and sell to a third

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T

Opposite page: Tsukie and Ken Yasui wait on Emma Metz Sipple at their Edinburgh store. Above: Ken holds coffee beans that have been blended and roasted and are ready to be ground and packaged. Top left: Bags of coffee beans from around the world sit in the warehouse. Top right: Raw coffee beans. Ken sorts through every bag before roasting, picking out stones, bits of wood and other unwanted debris that end up in the bag.

he term “business operating on a global scale” generally conjures the image of a sprawling corporation and layers of bureaucracy. An enterprise consisting solely of a husband and wife operating from a storefront on Edinburgh’s Main Cross Street offers a different model.

Eluna Coffee has suppliers, customers and partners on several continents but occupies little physical space to make it happen.

Ken and Tsukie Yasui maintain a retail shop in their facility, with comfortable chairs and a coffee table stacked with magazines. Jars of cookies line the counter by the register.

That’s a mere 5 percent of what they do, though. Eluna is primarily in the business of buying coffee in bulk from farmers and co-ops in Latin America and selling to markets in Asia. The Yasuis feel that they have just begun to tap the potential of this arrangement.

They’ve been in the coffee business for seven years. The couple moved to Columbus from Missouri in 1989. Ken worked as a consultant in the automotive industry supply chain. About seven years ago, with their children grown, he and Tsukie began to consider other occupational paths.

“Our neighbor was getting out of his family business,” says Ken. “We explored a few ideas. We went to Central America with the idea of buying some land and developing

it. While down there, we started talking to coffee growers, who were interested in exporting abroad.”

They decided to go with coffee. They set up their original facility on Commerce Drive in Columbus.

The name comes from the fact that “tsuki” means “moon” in Japanese. It was Tsukie’s idea to use a word with a lunar connotation and tack the “e” from her name on the front end.

“We did things kind of backwards,” says Ken. “Because of our circumstances, knowing the growers and the certification process, we learned about getting customers afterwards. We just figured the market would be there.”

At first they were strictly into roasting and selling, with no retail. A booth at the Columbus Farmers Market gave them a taste of selling the finished product in individual servings.

They purchased the Edinburgh space in 2008 as zoning issues arose. “We did the electrical and plumbing work,” says Ken. “It had been a hardware store.” They opened at that location in April 2011.

“Our goals changed over the years,” Ken explains. “We found it difficult to operate a coffee shop, particularly retaining part-time help. Now, we’re 95 percent wholesale.”

They picked up some local restaurants, such as the Timbergate Golf Course sandwich shop, Bistro 310 and Pacheco see coffee on page 6 SEPTEMBER 2014 The Business Connection 5

coffee continued from page 5 Winery, as customers. They also began selling to area Japanese manufacturing companies, who use the coffee as gifts for customers and visitors. “They use their own logos,” says Ken. “We package it the way they like.”

Eluna recently embarked on a relationship with a Japanese partner that is currently buying raw beans and plans to expand into roasted beans. The Yasuis are also in talks with potential partners in Taiwan and South Korea. “A Columbus friend has business associates in China with coffee connections,” Ken says.

In September, the Yasuis will attend the Specialty Coffee Association of Japan’s Conference and Exhibition in Tokyo. “It’s one of the biggest coffee shows in the world,” says Ken. “Customers and suppliers from all over will be there.”

It’s been a rather travel-intensive year for the Yasuis. “We just got back from Peru,” says Ken. “It was an excellent trip. We met numerous farmers and visited lots of co-ops.

We think those coffees will match very well with the Japanese coffee market.”

He speaks of interest from a Japanese food company that is “willing to help me

with expenses for a feasibility study on what would work for the Japanese market.” He explains that Japanese coffee consumers are very discerning and willing to pay well for high quality.

“Our slogan is ‘Direct trade equals direct sustainable benefits,’” Ken says. “We don’t want to go through layers of middle men.”

His years in the auto supply chain field taught him how to establish quality standards. This allows Eluna to be confident that product being shipped directly from Latin America to Asia meets its specifications.

Above: A muffin tin holds different varieties of coffee beans from around the world. Top right: Bags of roasted and blended coffees. Bottom right: Fruit grows on a coffee tree on the deck at the Yasuis’ home. Opposite page: Samples of coffee beans from a recent trip to several countries sit ready to be evaluated at Eluna Coffee.

6 The Business Connection SEPTEMBER 2014

The Main Cross Street facility is where it all comes together. The roasting machine at Eluna has the capacity to process 18 pounds per 30 minutes. Other areas include a supplier evaluation room, a kitchen, a staging area and a warehouse.

Bags of samples from aspiring suppliers fill the table in the evaluation room.

Ken holds up various samples that are problematic for reasons such as lack of uniformity in bean size or questionable color.

Tsukie is particularly interested in the evaluation room for its potential as an art gallery space. Currently, a local artist’s scalemodel sculptures and pen-and-ink drawings are on display.

“I’d like to show the work of more local artists,” she says. “We have available room.

I had wanted to also find ways to help musicians and engage in children’s activities, but with our increasing focus on retail, we really don’t have the resources.”

So they fly off to various locales and expand the reach of their dynamic venture.

It’s not a bad level of achievement for an easygoing couple who always seem to have time for a bit of conversation over a cup of great coffee.

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Jeff Rufener is president of Toyota Material Handling, U.S.A.

Tracy Stachniak is national manager of human resources.

Toyota on the move Consolidation of functions in Columbus benefits company and community

By Barney Quick n photos by Joe Harpring

Above: A timeline along the wall at Toyota outlines the history of the company in Columbus.

Opposite page top: The customer receiving area at Toyota Material Handling, U.S.A. Opposite page center left: Dylan Ryan helps put the finishing touches on a lift truck at Toyota Industrial Equipment Manufacturing. Opposite page center right: Completed trucks in Toyota’s distribution center await shipment to Toyota dealerships in North America and beyond. Opposite page bottom: The newest addition to the Toyota campus southwest of Columbus is the Toyota Material Handling, U.S.A. headquarters.

In the ongoing chronology of economic development milestones in Columbus history, April 12, 2012, must surely loom large. That’s when Toyota Material Handling, U.S.A. Inc. announced the move of its North American headquarters from Irvine, California, its base since 2002, to Columbus. It’s a development that is already having an impact on the area and the company, and that’s sure to continue.

“TMHU already had about half its staff in Columbus,” says President Jeff Rufener. “We wanted to foster enhanced communication within the company by having all associates together on one campus.”

Another company within the Toyota Industries Corp., Toyota Industrial Equipment Manufacturing has been located in Columbus since 1990. TIEM’s primary business is making forklifts. TMHU is the distribution arm. The entire array of businesses is part of Toyota Group, which also includes Toyota Motor Corp., as well as companies focusing on steel production, research and financial services.

TMHU operates primarily through its network of 70 dealers in the United States and Canada. It also has some directaccount customers.

“It’s important for our associates to be around our products,” says Rufener. He also notes the greater proximity to most TMHU customers afforded by the Columbus location, allowing the company to be more responsive to their needs.

There were three phases to the move. The first was the relocation of the after-market function; the second involved administrative functions, such as information technology and accounting; and the third focused on sales. The original target for completion was this December.

“As we got into it, it became clear to us that we should move the schedule up six months,” says Rufener.

The Columbus area has benefited from TMHU’s need to round out its staff as a result of the move. Approximately 35 percent of the California associates chose to relocate, which see Toyota on page 10 SEPTEMBER 2014 The Business Connection 9

Toyota continued from page 9

A new 8-Series large lift truck is driven from manufacturing to complete vehicle inspection process, a separate area of the plant set up for inspection and testing.

Have

meant that 65 percent of the positions had to be filled.

“We’ve recruited locally as well as regionally,” says Rufener.

“We’re very pleased with the quantity and quality we’ve found.”

Tracy Stachniak, national manager of human resources, adds, “Had we not been so impressed with the talent pool, we wouldn’t have been able to facilitate the relocation so well.”

The Toyota Group sets great store by its culture and the principles that guide it. These have their roots in the worldview of Sakichi Toyoda, founder of the loom-making company that began the entire enterprise. The emphasis is on a personal excellence that fosters a collective creativity and humanity.

“Our core values are very simple and personal,” says Rufener.

“We’ve seen tremendous alignment between those and the values of the community here in Columbus.”

The comparative economic robustness of Indiana and Columbus was a major point of attraction for Toyota. “Indiana has become a preferred manufacturing site for companies making the kinds of products we do,” Rufener notes. “We employ about 1,100 people, yet we’re only the fifth-largest employer in the area. That speaks very well for this city.”

Both Rufener and Stachniak are native Midwesterners, from Kansas and Chicago respectively. Both speak of the refreshing familiarity of the way of life they’ve encountered here.

“One reason we’ve found it attractive is its open environment and the hospitality characteristic of this part of the country,” says Rufener. “There’s a trust between neighbors that I identify with.”

Stachniak says, “I hear repeatedly how our associates

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Lift trucks move through the inspection process. A portion of the plant is dedicated to the specialized task of confirming features and functions of trucks produced in other parts of the plant. appreciate the warm welcome they’ve received.”

Rufener has begun immersing himself in civic life. In August, he spoke to the Rotary Club. He speaks of a good working relationship with the current city administration.

He’s also taken note of the quality of life Columbus offers.

“In addition to being an attractive business environment, I think features such as the number of locally owned restaurants downtown, the presence of the philharmonic and the great nearby state parks are wonderful.”

He also says that the housing and transportation situations definitely compare favorably to California. “No doubt about it, from a climate and scenery standpoint, Southern California is really desirable, but the downside is the dense concentration of people. The comparatively short commute time here is a definite plus. You don’t take up a half-day when you go shopping.”

In 2011, Toyota Group unveiled its Vision 2020 initiative.

It’s based on the group’s guiding principles, and among its points are a commitment to constant innovation, enriching lives worldwide, setting challenging goals to which the group’s people can apply their creativity, and continuous improvement, known as kaizen in Japanese.

The consolidation of sales and marketing activities with manufacturing within Toyota Industries is part of this global vision. Along with the move of the forklift distribution arm to Columbus, the company has made similar moves in Takahama, Japan, and Mjolby, Sweden. Also, the national headquarters of Toyota Motor Sales and its 3,000 jobs will move from Southern California to Plano, Texas, over the next three years.

“The world continues to be a smaller place,” says Rufener.

“Toyota’s material handling business has been number one in the U.S. and globally, and to maintain that lead, we have to look for ways to be more efficient. One campus saves us money. This is part of our march forward.”

SEPTEMBER 2014 The Business Connection 11

chamberc SEPTEMBER 2014

Monthly publication of the Columbus Area Chamber of Commerc

Ribbon Cuttings

From the president As a chamber, we seek to foster creativity and inventiveness in this community. One of the ways we accomplish this is through the Maverick Challenge, a business planning competition for high school students. The challenge kicks off this month.

In the Maverick Challenge, students will compete individually or on a team for a chance to win prizes totaling over $10,000. This competition will focus on area high school students from Bartholomew County and seven additional counties in the region.

Last year’s team of Columbus North High School students, Nick Streit, Taylor Basler and Braden Trimpe, impressed the judges with a plan for a bikeshare business they named Wayfare. Not only did this team capture the top prize locally, it went on to place second in the regionals.

By the end of the project, these students had learned how to research and develop a written business plan, complete a project with a team and give a professional pitch, while working closely with dedicated high school teachers, business mentors and college instructors. These experiences likely will serve them well in the next phase of their lives.

Prior to the competition, most students have never considered entrepreneurship as a viable career option. Through this program, we are changing that. Since 2008, more than 500 students in eight counties have participated in the Maverick Challenge, and over $50,000 has been raised and awarded to these young innovators.

The program is successful thanks to local partners and supporters, including Bartholomew Consolidated School Corp. C4 Program, EcO15, Indiana University Purdue University Columbus, Heritage Fund of Bartholomew County, Southeast Indiana Small Business Development Center, regional partners and countless volunteers from the business community.

It appears that more than 60 local students will participate in this year’s challenge. We can’t wait to see the ideas these bright, passionate students will come up with.

Cindy Frey

12 The Business Connection SEPTEMBER 2014

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Chamber decal ambassador blitz We want you to be proud to display the fact that you are a member of the Chamber of Commerce. That’s why in September (mainly Sept. 24 and 25) you’ll see some of our ambassadors out and about removing your old Chamber decal and putting up new ones. Be sure to photo bomb any of them taking pictures of your businesses.

New Members 240Sweet Artisan Foodworks 9600 N. U.S. 31 Columbus, IN 47201 812-372-9898 www.240sweet.com Indiana Historical Society 450 W. Ohio St. Indianapolis, IN 46202 317-234-8853 www.indianahistory.org Travel Management Co. 5280 N. Warren Road Columbus, IN 47203 866-569-3296 www.Tmcjets.com

Growing BUSINESS. Growing people.

Data Cave sparks interest On Sept. 25, we will host our second SPARK Columbus event at Data Cave on Technology Boulevard.

Data Cave is a Tier 4, fully redundant data center built from the ground up to give its customers peace of mind in trusting their critical IT infrastructure to it. Data Cave’s advantage is simple: a world-class, state-of-the-art data center, high levels of security, unparalleled uptime capabilities, and hardened protection from the elements. Now CIOs and IT decision makers of major hospitals, banks, critical infrastructure companies, and municipalities trust their IT infrastructure to Data Cave.

Join us to tour this impressive facility and hear from several of our community’s outstanding entrepreneurs. Free to attend, reservations requested.

SPARK Columbus is a partnership between IUPUC Center for Business and Economic Development & the Columbus Chamber.

Calendar Sept. 4 — Networking After-Hours, 5 to 7 p.m., kidscommons, 309 Washington St. Sept. 25 — SPARK Columbus: Networking for Entrepreneurs, 5 to 7 p.m., Data Cave, 2425 Technology Blvd.

Oct. 3 — TEN Talk, 8 to 9:30 a.m., Columbus Visitors Center

SEPTEMBER 2014 The Business Connection 13

MCT photos

Carlettia Ellis works as a customer service representative at Dialog Direct call center in Highland Park, Mich. Keontay Kelley says he enjoys his job as a customer service representative because he likes helping people.

More calls are being answered in U.S.

By Frank Witsil n Detroit Free Press (MCT)

I

n a hive of cubicles at the Dialog Direct offices in Highland Park, Mich., Keontay Kelley and other employees answer calls through headsets.

While they work, LED signs on the walls flash reminders: “Manners Matter,” “Phone Etiquette,” “Yes Ma’am/Sir,” “Thank You” and “I Apologize.” The room buzzes with conversation, the sound of hundreds of metro Detroiters earning paychecks.

“I was looking for a job,” said Kelley, 26, of Detroit. “This did it.”

After years of sending call center jobs to India, the Philippines, Mexico and other countries, companies are bringing them back to the U.S. An estimated 5 million Americans are employed in call centers.

The trend, industry watchers said, is driven by changes in technology, rising overseas labor costs — and customers demanding better service.

Dialog Direct, which employs about 800 people in its headquarters, announced recently it is planning to add 500 more — 300 in Highland Park and 200 in its Grand Rapids offices. Another call-center company, S&P Data, said it plans to add 420 employees at its offices.

So far this year, the Michigan Economic Development Corp. estimated, at least 1,400 call center jobs have been created in the state.

“We’re all about more and better jobs,” said Amy Cell, senior vice president for talent enhancement at the MEDC. “Call centers offer great entry-level opportunities for new college graduates or people trying to get a foothold in customer service fields.”

Kelley, a Ferris State graduate, has worked at Dialog Direct for less than a year. He said he enjoys working there. Some calls can be frustrating. But, he said, the job lets him work inside an office, wear professional attire — and best of all, the work lets him feel like he’s helping solve people’s problems, he said.

“I like to be the knight in shining armor,” he said. In his experience, Kelley said, callers appreciate that the center is in the U.S. Doug Kearney, Dialog Direct’s president and CEO, said, “A lot of jobs are coming back to the U.S.” In the next few years, he said, he expects more growth in the industry as customers increasingly turn to social media.

Companies began sending call center jobs overseas years ago because they sought to reduce labor costs, said Matt Zemon, chairman of the nonprofit group Jobs4America based in Chapel Hill, N.C. But in recent years, as overseas labor costs have increased, companies have been reversing some of those decisions, he said.

Some companies also found that customers were unhappy with the service from overseas call centers.

By Zemon’s count, about 180,000 call center jobs were created nationally in 2012 and 2013.

Paul Stockford, the director of research for the National Association of Call Centers in Hattiesburg, Miss., said the nonprofit membership group estimates there are about 66,000 call centers in the U.S., with that number expected to grow.

Companies are still using overseas centers to handle sales calls involving low-price, low-margin items and also to address calls seeking technical help.

“The higher the value of the customer, the more likely the job will be in the U.S.,” he said.

If a customer is confused or dissatisfied, it could cost a company sales, and they don’t want to miss out on opportunities, especially when it comes to big-ticket items. Stockford pointed to airlines, which are selling plane tickets worth hundreds, even thousands, of dollars. United Airlines has a reservation center in Dearborn. In addition, he said, though many call center jobs are entry level, they require skills — and expertise — that can lead to advancement.

“Lots of people make a career out of it,” he said. “Other people get burned out. If you’re picking up a phone, and you’ve got someone screaming in your ear for something you didn’t do, it can be very frustrating.”

Last year, General Motors started moving call center jobs from overseas to the U.S. GM closed a call center in Buenos Aires, Argentina, and moved most of the work to a customer engagement center, where it employs about 300 contractors to address customer calls and social media posts.

GM managers now oversee the workers, who are in offices closer to the engineers and top leaders, said Klaus-Peter Martin, a GM spokesman. see call center on page 15

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coach’s corner

Mark McNulty

Growing your business by word-of-mouth Whenever I talk to business owners about how they are growing their businesses, four of five quickly respond, “Word-of-mouth.” If you have read any of the latest marketing books, especially those targeted toward startups and small businesses with tight (or no) marketing budget, they all jump on the word-of-mouth bandwagon, but often without going into enough detail to help make it really work.

At the seminars and workshops I teach, I often ask a follow-up question, something like, “How many referrals do you get a week?” or “Who is your best referral source?” Too many business owners don’t know the answer to these questions, and that is why their businesses aren’t growing fast enough.

When helping business owners to grow via referrals, we have to look at the dozens of different referral/word-of-mouth strategies and choose the ones that make the most sense for them. Here are my Top 3 favorite referral strategies, in no particular order.

The Personal Ask Strategy – This referral strategy is the simplest, yet many owners are afraid to use it. It involves directly asking your clients/patients for referrals when you complete your interaction with them. I teach my clients to look their clients in the eye and simply ask them

to refer their friends and colleagues, because you are trying to grow your business through referrals and you want to fill it with people just like them.

Hand them two business cards at the same time and watch the magic start to happen.

Referral Rewards – This strategy requires you to have a system to track your referrals (you should have this for every marketing strategy you use), so that you can thank the referrer for sending you a new client. There are multiple ways to thank people for referrals, and they all work.

You can send a hand-written thank-you note, a gift card, a credit on their account, etc.

People often refer once to test if you care enough to thank them. When you do, they send the rest of their family and friends. Be sure to tell your clients if you plan to use tangible rewards as an incentive; incentives don’t work if you don’t tell anyone.

Testimonials – This strategy again actually requires you to communicate with your customers.

When a client has a great experience and goes out of his way to thank you or a member of your team, ask him if you can use his experience as a testimonial about your business in your marketing.

I have never been turned down when I ask.

In the current digital age, you can collect testimonials in many ways – email, social media,

video or in person. Always ask for permission to use the testimonial in your marketing, particularly if you want to use their name (which makes the words much more powerful). Testimonials should be on your website, your Facebook page and in your brag sheet that you use to market your goods and services.

Here are two other critical things to think about when planning the implementation of your referral strategies. First, you must track where your new customers are coming from, which means you have to train your team to always ask and then to record the answer in your customer tracking system.

Second, when asking for referrals, focus on your A and B customers – the ones you really like, who are a great fit for your business. You want more customers like them, and people tend to work with and know more people just like themselves.

In order to make word-of-mouth marketing work – and it does work – you need to be organized, have a system and consistently follow through on any promises you make to your customers in return for their recommendations.

from domestic customers are answered in U.S. call centers. The company employs nearly 500 agents at a call center and another 250 customer support employees. It also has a center in Cleveland, Tenn., that employs 600 and a center in Knoxville, Tenn., with about 150 employees.

Earlier this year, AT&T announced it was hiring workers in Michigan for call center jobs. In late 2011, as AT&T was seeking to buy T-Mobile, the communications giant announced it planned to bring back 5,000 call center jobs that had been sent overseas. It touted the plan as the largest commitment by a company to bring jobs back to the

U.S. since 2008.

But the bid was abandoned. AT&T said “that initiative didn’t happen.”

Dialog Direct, which employs about 2,000 workers in Michigan, expects to continue growing nationally and in Michigan. It offers most starting employees from $22,000 to $45,000. In many cases, the company will pay for training and reimburse costs for licenses.

“It’s a job that requires patience,” said Kelley, who hopes to make a long career out of it. “But if you have that patience and you are about serving people, you can do it.”

Mark McNulty is a business coach with ActionCoach Business Coaching. He can be reached at 350-4903 or mark@coachmark.biz.

call center continued from page 14 To deal with questions and concerns related to recalls and other issues, GM temporarily reassigned more workers to the center, he added. A big part of the move back to domestic call centers, Martin said, was to shift efforts away from mostly documenting and escalating customer complaints to trying to resolve them quicker and on the same call, if possible.

“We want to provide the best possible service,” Martin said, pointing out that a bad experience on the phone with a GM representative could result in a lost sale for the company. “Every touch point is an opportunity.”

At Whirlpool, all of its customer service calls

SEPTEMBER 2014 The Business Connection 15

Around the WATERCOOLER Elwood Staffing growing

Elwood Staffing Services will expand its Columbus headquarters and create up to 40 jobs by 2017. Chief Executive Officer Mark Elwood said the company has outgrown its office space in the corporate headquarters at 4111 Central Ave. The company has purchased a building across the street at 4105 Vickers Drive, which was constructed in 2002 and owned

by Russell Development. It had served since 2005 as the Ivy Tech Community College administration building.

Elwood Staffing plans to renovate the 5,344-square-foot Vickers Drive building into new offices for corporate staff and provide additional meeting and training space.

The company will continue to use the Central Avenue location for corporate employees, Mark Elwood said.

Rezoning requested for site

About 217 acres of land near Edinburgh could be rezoned to create the only shovel-ready industrial site with rail access available in Bartholomew County. Economic development officials and a local real estate agent trying to sell the land hope rezoning the acreage as industrial will attract a buyer who could bring jobs to the county.

The parcel is at the northeast corner of U.S. 31 and County Road 800N in German Township, just south of the Edinburgh town limits. The acreage is just north of the Interstate 65 interchange at Taylorsville.

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Owned by Florida-based Meadow Lawn Farms, the parcel has been on the market for 10 years, said Mark Pratt, with Breeden Realtors, who is working to sell the property. There have been companies interested in the site, he said, but site selection is a highly competitive process.

Jason Hester, executive director of the Columbus Economic Development Board, said prospective buyers look for a reason to cross a site off their list. The current zoning has been a reason, he said, because, while it allows for industrial use, it gives the Edinburgh/Bartholomew/Columbus Joint District Plan Commission, a 10-member board that governs planning and zoning in the 2.5 square miles surrounding Edinburgh Premium Outlets, full discretion over any proposed site plans.

Cummins recognized

For the third consecutive year, Cummins Inc. has been recognized as a Supply Chain Top 25 company by Gartner Inc., a leading information technology research and advisory company. The ranking is based on financial performance and an evaluation of supply chain performance by Gartner analysts and industry peers.

Cummins was one of only two industrial companies on the list, which also commended Apple, Amazon, Unilever and Procter & Gamble for supply chain excellence.

Firm with local office honored

Donaldson Capital Management, an Evansville-based company with offices at 700 Washington St., Suite 203, has been named one the top 300 investment advisers in the country by Financial Times newspaper. Only six Indiana firms were chosen for the award which recognizes “the best advisers to be found across the U.S.”

Lowe’s plans call center

INDIANAPOLIS — Home improvement retailer Lowe’s says it will open a new call center in Indianapolis that could have up to 1,000 employees in the next couple of years.

The North Carolina-based retailer announced that it would spend about $20 million to buy and equip an office building in a business park on the city’s northwest side. The company expects to open the center early next year.

Lowe’s Vice President Don Easterling says the Indianapolis site was picked to add a Midwestern location to its current call centers in North Carolina and New Mexico. The Indianapolis center will

occupy a building that housed information technology operations for drug maker Eli Lilly and Co. until its lease expired last year.

The Indiana Economic Development Corp. offered Lowe’s up to $5.5 million in tax credits.

Tower maker gets approval for plant

SOUTH BEND — A South Bend company that makes steel towers has gained zoning approval for plans to build a new factory where it expects to hire more than 600 workers over the next several years.

The St. Joseph County Area Plan Commission voted unanimously to give Nello Corp. permission for its planned factory on undeveloped land on South Bend’s southwest side. The company expects to spend about $60 million on the project.

Nello Corp. was founded in 2002 and makes steel towers for several uses, including telecommunications, utilities and wind energy.

Steel shipments feed shipping boom

BURNS HARBOR — Steel shipments are feeding a 40 percent increase in shipping at Indiana’s main port on Lake Michigan so far this year.

Steel cargoes passing through the Port of Indiana-Burns Harbor have more than doubled this shipping season to feed the automotive industry.

Iron ore and coal are usually two of the largest commodities shipped, but they’ve been down this year, while steel shipments have soared 111 percent higher than during the first half of 2013.

Much of the steel goes to auto assembly plants or is processed at service centers so suppliers can use it to make fenders or other auto parts.

Economy grew faster in 2013

Fueled by healthier consumer spending, the U.S. economy grew in the second half of last year at the strongest pace in a decade and more than previously estimated, new government data show.

Revised data released July 30 also suggest a possible factor behind the pickup: Americans saved much more in 2012 than previously thought, leaving more to spend in 2013.

The economy grew at an annual rate of 4.5 percent in last year’s third quarter, up from a previous estimate of 4.1 percent.

Growth was 3.5 percent in the fourth quarter, up from 2.6 percent. The average 4 percent annual pace was the best sixmonth showing since 2003.

For 2013 as a whole, the economy expanded 2.2 percent, up from the previous estimate of 1.9 percent.

could be worse. Nationally, employment in primary metals manufacturing has fallen by 36 percent. Meanwhile, the number of metal manufacturing jobs in the Gary metropolitan area has risen by 3.5 percent since 2010.

The number of steelworkers nationally fell sharply after LTV Corp. and other companies filed bankruptcy, according to the U.S. Bureau of Labor Statistics. U.S. mills produced 95 million tons of steel last year, or about 10 percent less than they made between 2000 and 2007. That’s due primarily to weakened demand and increased imports.

Two-hotel tower planned near arena

INDIANAPOLIS — A developer is looking to build two high-end hotels in a single 15-story building near Bankers Life Fieldhouse in downtown Indianapolis.

Plans filed with city officials say Minneapolis-based CSM Corp. is planning the hotels totaling 286 rooms at what is now a surface parking lot across the street from the arena.

Ratio Architects President Bill Browne tells the Indianapolis Business Journal that plans include a parking structure and restaurants on the hotel’s street level and second floors. The developer’s proposal says the hotels would carry the Aloft and Element brands.

Browne says developers hope for city approval of the project this fall.

— Staff and Wire Reports

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Fewer steel jobs; output increases

GARY — A struggling industry and increasing automation have cost northwestern Indiana a third of its steel jobs since 2000, but the remaining workers are producing more raw metal than their counterparts did. The number of metal workers in the region has fallen by 8,700 jobs, or 33 percent, since 2000. But those workers are producing nearly 27 percent more tons than their predecessors, according to ArcelorMittal USA’s recently published 2013 Fact Book.

“This strong growth continues the trend of expansion following the significant weather-related decline in the early months of 2014,” Micah Pollak, assistant professor of economics at Indiana University Northwest, noted in the Northwest Indiana Index, which tracks the region’s economy.

Pollak said that despite the job losses, Indiana’s situation

(812) 376-2425 3515 Two Mile House Rd. Columbus, IN 47201 Located on 46, ¼ mile west of I-65.

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SEPTEMBER 2014 The Business Connection 17

on the move

Amy Adams

Mark Osowick

Srikanth Padmanabhan

Amy Adams has been named vice president and general manager of Cummins Emission Solutions. She is a graduate of Purdue University, with a degree in industrial engineering, and earned a master’s degree in management from the J.L. Kellogg School of Business at Northwestern University.

Adams joined Cummins in 1995 and has held several positions in business development, product management, market management and distributor management in Europe, Brazil, Australia, Japan and Korea as well as North America. She has been general manager of the Global On-Highway business for Cummins Emissions Solutions since 2011.

Mark Osowick has been named vice president of human resources operations at Cummins Inc. He will lead a team that manages day-to-day operations for the human resources function across Cummins’ four business units.

He is a 1989 graduate of Franklin and Marshall College, with a degree in economics, and earned a master’s degree in industrial and labor relations from Cornell University in 1991. Since joining Cummins in 1993, he has held various human resources positions within the company and most recently served as executive director of components business.

Srikanth Padmanabhan has been named vice president of Heavy Duty MidRange Light Duty, a segment of the engine business at Cummins Inc. He has been president of Cummins Emission Solutions, the largest division of Cummins Components, since 2008.

Over the course of his 23-year career with Cummins, Padmanabhan has held a wide variety of leadership positions, including managing director of Cummins

18 The Business Connection SEPTEMBER 2014

Generator Technologies in Stamford, England, country manager of Cummins Filtration Mexico, plant manager of Cummins filtration plant in Cookeville, Tennessee, and a number of manufacturing management roles within the Cummins Fuel Systems Business in Columbus.

He is a graduate of the National Institute of Technology in Trichy, India, and earned a doctorate in mechanical engineering at Iowa State University.

He also is a graduate of the Advanced Management Program at Harvard Business School.

Annie Smith

Melissa Hennessee

Annie Smith is the new director of education and engagement for the Columbus Area Chamber of Commerce.

She is the primary connector to other members, potential customers, marketing opportunities, training and other resources.

Additionally, she will refine and execute the marketing strategies for a suite of online business training tools developed by the organization.

She most recently worked at Cummins as a shows and events coordinator, and prior to that, she served as a marketing communications specialist at Cummins.

She received her Bachelor of Arts in communications from Indiana State University, with a major in public relations and a minor in marketing.

Melissa Hennessee has also joined the chamber team as project leader. As the first point of contact, she ensures that customers get the answers they need. She also manages special projects, including ribbon cuttings, event coordination and member communication. She is a graduate of Indiana University, with a Bachelor of Arts in journalism and a minor in Spanish.

She most recently worked as an executive assistant at Junior Achievement of Central Indiana and prior to that provided

veteran. He has most recently been serving as director of sports programs and athletic facilities.

marketing support for two commercial real estate developers.

Dr. Daniel J. Hurley

Dr. Daniel J. Hurley has joined Four Seasons Senior Living Community as medical director.

He is a graduate of the University of Notre Dame and Loyola University’s Stritch School of Medicine in Illinois. He is boardcertified in internal medicine and geriatric medicine and has focused on gerontology for the past 30 years, developing and implementing a clinical geriatrics program at Indiana University, conducting geriatric research at Eli Lilly and working in private geriatric practice.

Stephanie Brown of Seymour was honored recently by Experience Works for her achievements in providing outstanding leadership and delivery of services. Brown works with the Senior Community Service Employment Program in Jackson County.

Experience Works is a national nonprofit organization that provides employment, training and community service opportunities for individuals 55 and older.

Mark Wischmeier has been promoted to senior manager at the Blue & Co. LLC Seymour office, and Holly Fields was promoted to manager.

Mark Jones is the new director of Columbus Parks and Recreation Department. Parks board members unanimously approved Mayor Kristen Brown’s nomination of Jones, an Edinburgh native and 18-year department

Randy Scheidt

Randy Scheidt, president of Don R. Scheidt & Co., recently was one of 32 real estate agents in the United States chosen to attend the inaugural Realtors Environmental Summit in Washington, D.C. Panel topics included the economic impact of environmental changes, politics of natural resource management, public perceptions of environmental risks and threats, smart growth and environmental protections.

— Staff Reports

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SEPTEMBER 2014 The Business Connection 19

BUSINESS LEADS COMMERCIAL BUILDING PERMITS 840 DEPOT ST COMMERCIAL ADDITION $365,877 BARTHOLOMEW COUNTY BEVERAGE, OWNER DESIGN & BUILD CORP., CONTRACTOR COM ADDN BARTH CO BEVERAGE 6740 SF 4830 PROGRESS DR COMMERCIAL ADDITION $59,000 EAST COLUMBUS FIRE DEPARTMENT, OWNER MOHR,LARRY CONSTRUCTION, CONTRACTOR COM ADDN FIRE DEPT 2496 SF 500 CENTRAL AVE COMMERCIAL REMODEL $75,000 CUMMINS INC, OWNER TAYLOR BROTHERS CONSTRUCTION, CONTRACTOR LOADING DOCK INFILL 12065 N EXECUTIVE DR COMMERCIAL REMODEL $443,000 HANUSIN, JEFF/JOS A BANKS, OWNER HORIZON RETAIL CONSTRUCTION, CONTRACTOR JOS A BANK REMODEL 3929 SF 2840 S 550 W COMMERCIAL REMODEL $11,000 CROWN COMMUNICATION LLC, OWNER CROWN CASTLE, CONTRACTOR CELL TOWER REMODEL 3393 S COUNTRY BROOK CT NEW COMMERCIAL BUILDING $1,991,699 EQUITY PROPERTY INVESTMENTS, OWNER GILLIATTE GENERAL CONTRACTORS, CONTRACTOR PARKVIEW APARTMENTS SECTION III 28 UNITS 3101 STATE ST COMMERCIAL REMODEL $147,538 ROCK TENN, OWNER NORTH AMERICAN ROOFING, CONTRACTOR REROOF ROCKTENN 20 The Business Connection SEPTEMBER 2014

july

2190 N NATIONAL RD DEMOLITION SWIFTY OIL CO., INC., OWNER BURNS BUILDERS INC, CONTRACTOR DEMO GAS STATION

$550,000 BARTHOLOMEW COUNTY REMC, OWNER FORCE CONSTRUCTION CO I, CONTRACTOR NEW BLDG REMC 5080 SF

2611 FAIRLAWN DR COMMERCIAL ADDITION $600,000 FAIRLAWN PRESBYTERIAN CHURCH, OWNER TAYLOR BROTHERS CONSTRUCTION, CONTRACTOR FAIRLAWN CHURCH ADDN 2714 SF

11656 N E EXECUTIVE DR COMMERCIAL REMODEL $146,472 NIKE FACTORY STORE, OWNER/ CONTRACTOR NIKE REMODEL 9179

230 S MARR RD NEW COMMERCIAL BUILDING $396,000 COLUMBUS EAST HIGH SCHOOL, OWNER RK SPORTS SEATING INC, CONTRACTOR BLEACHERS FOR EAST FOOTBALL FIELD 2400 E 17TH ST NEW COMMERCIAL BUILDING $6,000,000 COLUMBUS REGIONAL HOSPITAL, OWNER PEPPER CONSTRUCTION, CONTRACTOR COL REG HOSPITAL LOADING DOCK 15793 E 800 N COMMERCIAL ADDITION $5,000 CROWN CASTLE, OWNER JDH CONTRACTING INC, CONTRACTOR CELL TOWER ADDITION 3030 BARKER DR COMMERCIAL ADDITION $470,000 TOYOTA INDUSTRIAL EQUIPMENT, OWNER FERGUSON CONSTRUCTION, CONTRACTOR TOYOTA ADDN 4528 SF 1245 MCCLURE RD COMMERCIAL REMODEL $10,000 FIRST CHURCH OF THE NAZARENE, OWNER STAMPER CONSTRUCTION, CONTRACTOR CHURCH REMODEL 1050 SF 1697 W DEAVER RD NEW COMMERCIAL BUILDING

1320 W 200 S COMMERCIAL REMODEL $1,056,900 BARTHOLOMEW SCHOOL CORP, OWNER BRUNS-GUTZWILLER INC., CONTRACTOR SOUTHSIDE SCHOOL REMODEL 49900 SF 1643 CENTRAL AVE COMMERCIAL REMODEL $1,500 MUELLER, THOMAS, OWNER FIRST DUE CO, CONTRACTOR COM REMODEL 1503 COTTAGE AVE DEMOLITION $0 ORINOCO PROPERTY INC, OWNER/CONTRACTOR DEMO/CUMMINS PLANT 2 2606 CENTRAL AVE COMMERCIAL REMODEL $16,000 NEWTON FAMILY LLC, OWNER JAMES C. LEE YOUR BUILD, CONTRACTOR REM SIDING AND DOOR 2875 GRISSOM ST COMMERCIAL ADDITION $17,000 CITY OF COLUMBUS, OWNER EICHER MANUEL JR, CONTRACTOR COL POLICE RESTROOM ADDN 153 SF 3801 TUPELO DR COMMERCIAL REMODEL $67,000 CENTRA CREDIT UNION, OWNER SOUTH CENTRAL ROOFING I, CONTRACTOR REROOF CENTRA CREDIT UNION 1334 WASHINGTON ST COMMERCIAL REMODEL

$179,100 COCA-COLA BOTTLING, OWNER SOUTH CENTRAL ROOFING I, CONTRACTOR REROOF COCA-COLA 2920 10TH ST COMMERCIAL REMODEL $10,900 DEVELOPMENT SERVICE INC, OWNER ONO BROTHERS, CONTRACTOR REMODEL DSI 3275 N SCOTT DR COMMERCIAL REMODEL $20,000 AT&T, OWNER GOODMAN NETWORKS, CONTRACTOR CELL TOWER REMODEL 4615 PROGRESS DR FOUNDATION ONLY $0 MORAVEC REALTY, OWNER SMITHERMAN CONSTRUCTION, CONTRACTOR COMM ADDITION 374 SF/ FOUNDATION ONLY

RESIDENTIAL BUILDING PERMITS 4676 CLAIRMONT DR $179,900 NEW 2301 SF RES/GAR REYNOLDS, TOM, OWNER REYNOLDS BUILDERS, CONTRACTOR 1991 CREEK BANK DR $156,000 NEW 3219 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 2616 DAFFODIL COURT WEST $150,000 NEW 4068 SF RES/BMT/GAR PHILLIPS DEVELOPMENT INC, OWNER/CONTRACTOR 2696 DAFFODIL COURT WEST $150,000 NEW 3925 SF RES/BMT/GAR PHILLIPS DEVELOPMENT INC, OWNER/CONTRACTOR 4983 DELRAY DR $335,000 NEW 2843 SF RES/GAR LOAHAN DEVELOPMENT LLC, OWNER/CONTRACTOR

4993 DELRAY DR $250,000 NEW 2340 SF RES/GAR LOAHAN DEVELOPMENT LLC, OWNER/CONTRACTOR

2483 SHADOW BEND DR $145,800 NEW 2549 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR

5003 DELRAY DR $280,000 NEW 2520 SF RES/GAR LOAHAN DEVELOPMENT LLC, OWNER/CONTRACTOR

1947 SHADOW CREEK BLVD $123,500 NEW 2167 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR

5013 DELRAY DR $375,000 NEW 3074 SF RES/GAR LOAHAN DEVELOPMENT LLC, OWNER/CONTRACTOR

1967 SHADOW CREEK BLVD $138,300 NEW 2484 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR

2025 E 850 S $246,000 NEW 4863 SF RES/BMT/GAR SCROUGHAM, JOEY, OWNER TK CONSTRUCTORS INC, CONTRACTOR

1977 SHADOW CREEK BLVD $122,500 NEW 2104 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR

5009 IMPERIAL DR $280,000 NEW 2842 SF RES/GAR SKAGGS BUILDERS INC, OWNER/ CONTRACTOR 5268 IMPERIAL DR $280,000 NEW 2935 SF RES/GAR SKAGGS BUILDERS INC, OWNER/ CONTRACTOR 707 LAKE VISTA DR $281,000 SINGLE FAM RESIDENTIAL M/I HOMES OF INDIANA, OWNER/ CONTRACTOR

2382 SHADOW CT $148,000 NEW 2549 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR 7018 STONEY RIDGE DR $309,000 SINGLE FAM RESIDENTIAL M/I HOMES OF INDIANA, OWNER/ CONTRACTOR

Kenneth George, DBA K&G Transport (transportation), 4150 E. Road 600N, Columbus

Amy Chandler, DBA Amy Chandler Photography, 4144 N. Riverside Drive, Columbus

Lindsay Lane Cooley, DBA Class of ’64 (class reunion funds), 3611 Oriole Drive, Columbus

Billie L. Erb, DBA Classical Conversations (homeschool education) 9523 S. Road 500W, Edinburgh William Mark Imel, DBA Imel Enterprises LLC, DBA Promotional Products 4U (advertising specialties), P.O. Box 165, Hartsville William Mark Imel, DBA Imel Enterprises LLC, DBA Basic Stuff 4U (advertising specialties), P.O. Box 165, Hartsville Tim Biddinger, DBA Tim’s Auto Tint & Trim (window tint), mobile and 3545 N. Road 250W, Columbus

Jacob L. Raleigh, DBA My Indiana Transport (transport of autos, freight, etc.), 12473 S. Hillview Road, Columbus Sonya and Brett Denney, DBA Sonya’s Dance Zone (dance studio), 3140 N. National Road, Columbus Dana Lynn Parks and Michael Barkes, DBA Castle Realty/ ClearwaterBeachFun VacationRentals.com (real estate sales, vacation rentals, leasing), 11961 W. Locust Lane, Columbus

7023 STONEY RIDGE DR $276,000 NEW SINGLE FAM RESIDENTIAL M/I HOMES OF INDIANA, OWNER/ CONTRACTOR

712 LAKE VISTA DR $334,000 NEW SINGLE FAM DWELLING M/I HOMES OF INDIANA, OWNER/ CONTRACTOR

7063 STONEY RIDGE DR $394,000 SINGLE FAMILY RESIDENTIAL M/I HOMES OF INDIANA, OWNER/ CONTRACTOR

4635 N 1000 E $300,000 NEW 4409 SF RES/GAR DAILEY, CLYDE E, OWNER ONO BROTHERS, CONTRACTOR

3778 SYCAMORE BEND WAY NORTH $226,000 NEW 4558 SF RES/BMT/GAR FERGUSON, TRENT, OWNER/ CONTRACTOR

5261 QUINCY DR $295,000 SINGLE FAMILY DWELLING NEW DAWICKE, MATTHEW, OWNER SKAGGS BUILDERS INC, CONTRACTOR

CERTIFICATES TO DO BUSINESS UNDER ASSUMED NAME

5630 TREELINE DR $599,900 SINGLE FAMILY DWELLING SPOON CONSTRUCTION, OWNER/ CONTRACTOR

3134 RED FOX TRL $220,000 NEW 5969 RES/BMT/GAR DREES HOMES, OWNER/ CONTRACTOR

2718 VIOLET WAY $290,050 NEW 3955 SF RES/BMT/GAR BARCON VOCATIONAL BUILDERS, OWNER/CONTRACTOR

2473 SHADOW BEND DR $147,000 NEW 2549 SF RES/GAR BEAZER HOMES, OWNER/ CONTRACTOR

4370 WESTMINSTER PL $200,000 NEW 2376 SF RES/GAR PHILLIPS DEVELOPMENT INC, OWNER/CONTRACTOR SEPTEMBER 2014 The Business Connection 21

Eye on the pie

Morton Marcus

Tax simplification is no simple matter The governor and his select invitees to his recent closed tax conference praised simplifying Indiana’s tax code. It is an idea better loved by Americans than baseball, apple pie or motherhood.

There is no question that our national and state tax codes are enormous tomes when printed, complex and detailed beyond belief. How did they get that way? Blame the legislators who give special privileges to people and businesses willing to plead their arguments (live or in cash).

For example, Indiana exempts $1,000 from taxation for each person in your household. Then, if the taxpayer and the spouse are 65 or older, they each get an additional $500 exemption. Plus, if the taxpayer or the spouse is blind, there is another $1,000 income exemption.

Wouldn’t it be simpler to count a person as a person without regard to age or disability? Why the exemptions for some blind people and not all blind people? In fact, why is blindness favored over other disabilities?

Do these exemptions clog our tax code because we desire to encourage having babies? Perhaps, we wish to help the poor and believe they tend to have more babies than the wealthy. We want also to aid people 65 and older, in part because we think they are more needy than younger Hoosiers.

The complexities of our tax codes arise from our fundamental concerns about being fair. When a good case is made to legislators about the difficulties of one group compared to another group, our elected representatives respond by making laws to treat the two groups differently.

We don’t just tax property, we tax the form of ownership (owner-occupied or renter-occupied).

We differentiate between agricultural, commercial and industrial uses. When a church is converted to a condominium, the land is taxed as residential rather than in religious use.

Some, who piously plead for tax simplification, want to extend the sales tax to services. Well, perhaps not all services. Often they will exempt medical services; then someone has to decide if

teeth whitening or straightening is cosmetic or necessary for mental health. Maybe an argument could be made to exempt attorney fees from sales taxation. I doubt real estate agents want their commissions taxed. I know my barber is opposed to a tax on his services. And funeral directors? Are we going to make death more expensive?

Although it would be simpler to tax all consumer transactions, there is strong reason for not taxing services. Such a tax can be a direct tax on labor. You might as well raise the income tax.

When the plumber comes to my home, he charges for parts (which are subject to the sales tax) and for his time separately. Put a 7 percent sales tax on his time and you reduce his income by more than double the 3.4 percent of the Indiana income tax.

If we are going to have tax simplification, let’s understand what we are doing, or is that asking too much?

Morton Marcus is an economist, writer and speaker who may be reached at mortonjmarcus@yahoo.com.

Business Indicators for Bartholomew County

Mar 2014

Apr 2014

May 2014

Jun 2014

Labor Force % Chg from Year Ago

41,863 42,091 41,969 42,512 3.59% 3.86% 2.28% 1.68%

Employed % Chg from Year Ago

39,907 40,439 40,172 40,547 5.79% 5.96% 4.25% 3.46%

Unemployed % Chg from Year Ago

1,956 1,652 1,797 1,965 -27.29% -30.06% -28.0% -24.94%

Unemployment Rate 4.7 3.9 4.3 4.6 Chg from Year Ago -2.0 -1.9 -1.8 -1.7 — Center for Business and Economic Research, Ball State University 22 The Business Connection SEPTEMBER 2014

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