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www.bizvoicemagazine.com November/December 2013 Volume 16, Number 6

BizVoice® Playing the Numbers Game Publisher Kevin Brinegar wenty-four years of Annual Awards celebrations for [email protected] the Indiana Chamber. It’s a number that is difficult to Editor believe (I’ve actually been on hand for 22 of them, Tom Schuman attending the event in 1992 before officially starting (317) 264-3792 myT job here a short time later). [email protected] Art Director That might seem like a long time – and it is. But do the math Tony Spataro [email protected] and the numbers reveal more about the long-term accomplishments of two of our honorees – presented their Managing Editor Rebecca Patrick awards at the dinner and featured in this issue of BizVoice: [email protected] Writers/Editors • Richard Lugar was already 12 years into his distinguished 36-year Senate career at Charlee Beasor the first event in 1990. By the way, Lugar was also the winner of that inaugural [email protected] Government Leader of the Year award. His repeat honor this time might be more Matt L. Ottinger accurately titled Government Leader of a Lifetime. [email protected] • Steve Ferguson, current chairman of Cook Group in Bloomington and our 2013 Symone C. Skrzycki Business Leader of the Year, had not officially joined the organization in 1990 but [email protected] had been a close friend of Bill Cook for 27 years and had worked as a consultant on Advertising various projects for nearly two decades. Many don’t know that a very young Jim Wagner Ferguson had served four terms in the Indiana House of Representatives from (317) 264-6876 1967-1974 (being elected in late 1966, 24 years before the Chamber awards event [email protected] became reality). Contributors Charles B. Baldwin Danniella Banks If we’re going back in time, don’t forget Community of the Year Bedford and the Amanda C. Couture historical significance of limestone – the first stone quarry in the city opened in 1855. Peter Dunn But this year’s honor, while acknowledging that past, is a tribute to the transformation Zonya Foco that is taking place today. Young leadership, increased business diversity and Mission enhanced partnerships have Bedford on the rise. To inform and influence Indiana Chamber of Commerce Each Annual Awards celebration is special. As this is being written, however, I eagerly Chair Patty Prosser anticipate the November 12 tributes to our nation’s military (and the close ties to Career Consultants-Oi Partners, Indianapolis Indiana business). As you are reading this, I hope you had the opportunity to be Vice Chair there. If not, I’ll look a year ahead and say that you won’t want to miss the 25th Tom Easterday Annual Awards Dinner on November 6, 2014. Subaru of Indiana Automotive President and CEO Kevin Brinegar

BizVoice® (ISSN 1521-0146) is published bimonthly by the Indiana Chamber of Commerce, 115 W. Washington, Suite Kevin M. Brinegar 850S, P.O. Box 44926, Indianapolis, IN 46244-0926. BizVoice® magazine is provided as a benefit of membership in the President and CEO Indiana Chamber of Commerce. Non-member subscriptions: $25.20 per year (includes sales tax). Periodicals postage paid at Indianapolis, IN and additional mailing offices. POSTMASTER: Send address changes to BizVoice®, 115 W. Washington, Suite 850S, P.O. Box 44926, Indianapolis, IN 46244-0926. Indiana Chamber of Commerce 115 W. Washington, Suite 850S, Indianapolis, IN 46204 Phone: (317) 264-3110 | Fax: (317) 264-6855 Indiana Chamber Mission: Internet: www.indianachamber.com E-mail: [email protected] Cultivate a world-class environment which © Copyright 2013, Indiana Chamber of Commerce provides economic opportunity and prosperity for the people of Indiana and their enterprises.

BizVoice® is printed on FSC® certified paper

2 BizVoice/Indiana Chamber – November/December 2013

Winner of 63 national, features state aw

ards since 1999

Magazine of the Indiana Chamber of Commerce

8 Business of Sports: Jonathan Bender Knee injuries took him off the court, but the former Pacer jumped into a new career in business. 10 Workplace Wellness Takeaways 86 Two participants provide their perspective on the Indiana Employee Health and Wellness Summit. 12 Indiana Vision 2025: A Plan for Hoosier Prosperity Learn about next steps in the Indiana Chamber’s long- range economic development strategy. 20 2013 Annual Award Winners 68 Members Matter Making a difference is one of the common characteristics • Cornerstone Partners: Chamber recognizes of our honorees each year. Long-time contributions and organizations for their investment of more recent efforts are both part of the equation. time and resources...... 68 • Business Leader of the Year: Steve Ferguson • Member spotlight: City Securities Corporation...... 70 carries on the legacy at Cook Group and • Getting to Know: Creighton Brothers...... 73 French Lick Resort...... 20 • 50-year honor roll...... 76 • Government Leader of the Year: Richard Lugar recalls a storied career and his influences...... 34 • Community of the Year: Bedford leaders partner 80 All About Economic Development together to energize citizens and diversify business...... 46 • Roundtable: Leaders of four economic development groups discuss tackling business expansion on a regional basis...... 80 60 Raise Your Hand • Mall ‘Madness’: It’s no game; some former Three dedicated individuals are honored for giving their malls are transitioning into a wide variety time, talents and passion to the Indiana Chamber and of business uses...... 84 its affiliates. • Growing Defense: Over 38,000 Hoosier jobs • Mike Campbell...... 60 are supported by defense dollars. That’s just • Ron Christian...... 62 one element in Indiana’s thriving defense • Melissa Proffitt Reese...... 66 industry story...... 86 Departments 2 President’s Message 6 New look in 2014/Tweet scene 16 Shorts 18 Legal column – 2014 regulatory changes 43 Go To It 59 Business Resources 70 88 Found Elsewhere

4 BizVoice/Indiana Chamber – November/December 2013 Winner of 63 national, state aw ards since 1999

Where Business happens

The curriculum at the Marian University Clark H. Byrum School of Business is integrated, collaborative, and experiential and is designed to develop a student’s problem solving, communication, analytical, and interpersonal skills. The focus is on development of the student’s professional judgment and represents a shift in business education. The school doesn’t just teach students business, it teaches students how to do business.

“What Marian University is doing is truly changing the equation. They have not simply added a new major or course on the latest business concept. They determined what businesses really want in new graduates and set out to produce students who have those tangible and intangible qualities.

Students from the Clark H. Byrum School of Business are, in essence, living business for four years. They are immersed in situations where they must solve real-world business problems, write business plans, present their ideas to executives, and work on projects that could impact the future of companies. This approach will keep Marian University pushing the envelope on what business education can be.”

David Mann Managing Partner and Co-Founder Spring Mill Venture Partners

For more information, contact Russ Kershaw, Ph.D., dean of the Clark H. Byrum School of Business, at 317.955.7130 or [email protected].

www.marian.edu

Marian University is sponsored by the Sisters of St. Francis, Oldenburg, Indiana.

November/December 2013 – BizVoice/Indiana Chamber 5 Speaking Out

Coming Soon: New Look, More Great Content he early January mail often brings bills due from the with a feature on Jonathan Bender, the former Pacer whose holiday season and maybe even a late Christmas career was crippled by knee injuries; he’s now the successful greeting or two. inventor of a knee strengthening device. What you will definitely find at the beginning of 2014 Among the topics in 2014: moving the merchandise, isT a new and improved BizVoice® magazine. The January/February soccer’s big shot and working with the athletes. edition will feature our redesigned publication, complete with an BizVoice has tackled wellness topics over the past decade. Strength of 90 years of experience eye-catching and crisp layout We’ll do so in each issue in that is bold and fresh. By 2014. Gamification techniques, incorporating the Indiana clinics with a coaching emphasis Chamber of Commerce color and the economic development scheme into a new logo and aspects of wellness will be Support of 52 full-time professionals throughout the publication, readers will immediately know it among the features. is the state’s leading business magazine (and winner of 63 state Look for more on life sciences, agriculture and other and national awards since 1999, might we add) from Indiana’s topics, and we’ll continue our in-depth focus on the four top business advocacy and information organization. driver areas of Indiana Vision 2025, the Chamber’s long-range Leadership that’s focused on 1 goal for members While the package will change, the content will remain of economic development plan for the state. the highest quality. We’ll continue to bring you Indiana’s top As always, you can expand your organization’s statewide business stories, insights into legislative and policy matters, visibility through BizVoice advertising. Contact Jim Wagner We want to help your business thrive! Membership in the Indiana Chamber is like adding a new department to your member company profiles and much more. ([email protected]) for discount opportunities. company. Nearly 5,000 members with more than 800,000 workers in all 92 counties rely on the Chamber to A new ongoing feature series, the Business of Sports, will Enjoy this always special awards issue and stick around advocate for their interests at the Statehouse and much more. Among the many benefits at your fingertips: appear in each edition. This series actually kicks off on Page 8 for a great year ahead.

@ • Free access to HR and training grant helplines What’s Chirping on Tweet Street? • Free customized business lists and salary/wage data The Indiana Chamber has over 9,000 followers. Are you on the list? • Free social media and communications consulting

Here are some examples of recent activity: We’re here for you. @IndianaChamber What others are saying about the Indiana Chamber: Getting ready for this morning’s Policy Call with Congresswoman Susan Brooks. More than 100 members joining in. @DFER_IN: Remind us why it’s a bad thing that @IndianaChamber supports #CommonCore. We want If recent college grad’s first job turns into employee layoff, businesses to hire our grads, yes? #INLegis here’s some sound advice: tinyurl.com/pchdhr9 @LisaDehayes: Lucky to be at @IndianaChamber Wellness Great seeing Bloomington’s @jaybaer use @HolidayWorld as Conf on @wfyi shoot example of company doing marketing right @ #NicheConference in Nashville, TN today! @SenDonnelly: Glad to see the @IndianaChamber fighting to bridge the #skillsgap in the Hoosier State. –Joe Phillip Summers, thank you for your kind words in the early indianachamberblogs.com/video-ready-in… days of BizVoice magazine. Rest in peace. tinyurl.com/lkvfxxy @Hope_Plumbing: Heading downtown today to meet with Proud to say we earned a national award for membership @readyindiana & @IndianaChamber to talk about preparing market share http://ow.ly/p8CPA people for the 1,000’s existing jobs in Indiana.

Great! RT @JustGoodNewsBiz .@PrattIndustries to bring @GerryDick: Great job @IndianaChamber hosting 100 biz ~140 jobs, $260M recycling facility to Valparaiso #IN: leaders and IN Congressional delegation tonight. Worthwhile http://goo.gl/Ls55AU event as always!

Tim Brewer Brett Carrington Todd Folds Brett Hulse Jeremy Rust Vice President Manager Manager Manager Manager Membership Member Services Member Development Member Development Member Services

To learn more about how our pro-jobs, pro-economy focus can help your company grow, www.indianachamber.com 6 BizVoice/Indiana Chamber – November/December 2013 contact Tim Brewer today at (317) 264-7539 or [email protected].

ICC-MembershipAd-BizVoice_2013.indd 1 4/15/2013 11:42:57 AM Strength of 90 years of experience

Support of 52 full-time professionals Leadership that’s focused on 1 goal for members

We want to help your business thrive! Membership in the Indiana Chamber is like adding a new department to your company. Nearly 5,000 members with more than 800,000 workers in all 92 counties rely on the Chamber to advocate for their interests at the Statehouse and much more. Among the many benefits at your fingertips:

• Free access to HR and training grant helplines • Free customized business lists and salary/wage data • Free social media and communications consulting

We’re here for you.

Tim Brewer Brett Carrington Todd Folds Brett Hulse Jeremy Rust Vice President Manager Manager Manager Manager Membership Member Services Member Development Member Development Member Services

To learn more about how our pro-jobs, pro-economy focus can help your company grow, www.indianachamber.com contactNovember/December Tim Brewer today 2013 at –(317) BizVoice 264-7539/Indiana Chamber or [email protected]. 7

ICC-MembershipAd-BizVoice_2013.indd 1 4/15/2013 11:42:57 AM Nothing but Net (Profits?) Former Pacer Turns Entrepreneur With Leg Trainer Former Indiana Pacer By Matt L. Ottinger Jonathan Bender is parlaying his history of rowing up in Picayune, Mississippi, Jonathan knee injuries into life as an entrepreneur by Bender didn’t think much about the quest for helping others with profits or the aches and pains of launching a similar problems. start-up business. Now, he’s pounding the pavement in an effort to sell the JB Intensive TrainerG – a device he’s created to help users build leg strength without stressing their knees. “(When I was young,) I didn’t know what was out there or the possibilities,” he reflects as his long legs emerge from a chair at a friend’s workout gym on Indianapolis’ northeast side. “Where I’m from, we play sports – especially as a young African-American. In my family, nobody had any businesses or anything I could look at and say, ‘That’s interesting.’ I just knew I could play ball.” Though he had a thin frame, Bender ultimately grew to be seven feet tall. His towering height, coupled with his athleticism, garnered a great deal of attention. He became the fifth pick in the 1999 NBA draft (selected by the Toronto Raptors but immediately traded to the Indiana Pacers). After a career plagued by frequent knee injuries in between flashes of encouraging play, however, Bender left the game. He did return briefly with the New York Knicks (where he reunited with then former general manager and now current Pacers consultant Donnie Walsh) after being rejuvenated by his own training device, but ultimately retired in 2010. (Bender now resides in Sugar Land, Texas, while his sister and her family still call Indianapolis home). “I believe that things happen for a reason,” he contends. “But just being human, it weighs on you mentally. I’m a guy that stands in faith and I understand God lets everything happen for a reason. There were some battles mentally though. Going to Boston (for rehab with Dr. Dan Dyrek) and staying there for two or three weeks at a time away from the team, I felt like an outcast.” Learning from adversity Hidden in Bender’s constant struggles with injuries were opportunities to learn from the medical professionals who were treating him. “I feel like a doctor myself, having been around these guys for all these years as they tried different things on me,” he notes. He began developing a training apparatus for himself in

8 BizVoice/Indiana Chamber – November/December 2013 The JB Intensive Trainer works many lower body and core muscles together to improve strength, balance and synergy.

2006 that could help him increase leg strength while going “From what I’d learned from some of the best therapists in through basketball movements – yet take pressure off his joints. the world with the Pacers, I knew what muscles I needed to “I had a really big problem increasing my quad and glute engage.” strength, which are very important in protecting the knee … so being able to wear this device and do actual movements Watching from the bench related to the game really helped me improve,” Bender relays. According to Bender, the concept of developing a business He remembers the first generation of the product was a intrigued him early in his playing career as he contemplated bit of an ad hoc spectacle. the intricacies of professional sports. “I went down to the store, grabbed some tape, ankle “(Pacers owners Herb and Mel Simon) influenced me,” he braces and bands, and made this contraption; it looked like a asserts. “I used to look at these guys who came into our locker piece of garbage, but it worked,” Bender bluntly states. “I room every two or three months and ask, ‘Who are these tested it on myself and took it from there.” guys?’ I didn’t know a lot about the business, but I started to He came up with the idea for the product by sitting in a park understand they were our owners (and what that entailed).” and simply watching people run. His curiosity about the inner workings of the NBA allowed “I watched how they moved, how they lifted their legs him to start developing his business acumen. and put them back down – the body mechanics,” Bender says. “I’m always the type who wants to know who’s pulling the strings,” Bender remarks. “Me, coming from a small town, this is the biggest business (the NBA) in the world, but this is a side play for them. Their main business is commercial real estate.” Bender realized that although NBA players earn large sums of money, a major distinction reveals itself when comparing them to owners. “I realized NBA players are paid a lot of money, but we’re still employees,” he qualifies. “At the end of the day, you just have money but no process. But to build wealth or any type of legacy, you have to own something and put your feet in the dirt and learn a process you can do over and over again. That got me excited about starting a business.” He adds that there are many attributes that professional athletes and successful entrepreneurs have in common. “Determination, consistency and being able to stay focused on one thing even if you’ve failed in some areas over “…to build wealth or any type of legacy, and over – and the work ethic – are all critical,” he outlines. you have to own something and put your Penetrating the defense feet in the dirt and learn a process you While Bender is having success bringing his product to can do over and over again. That got me market, he’s been met with the same challenges that face any excited about starting a business.” prospective innovator. Continued on page 83

November/December 2013 – BizVoice/Indiana Chamber 9 Workplace Wellness: Climbing to the Summit Practical Ideas, Setting the Stage for Networking Stand Out Workplace Success By Zonya Foco By Peter Dunn found the two-day Indiana hange has to begin somewhere. Employee Health and Wellness And when report after Summit to be jam-packed with report highlights the health practical ideas. I appreciated issues of Hoosiers as suggestionsI to encourage a positive comparedC to other states, change culture of wellness in the workplace. needs to happen now. For example, earnestly asking While several organizations have employees what they want assures risen to the challenge to help fellow that they see programming as Hoosiers take control of their well- something being done FOR them, being, the Indiana Chamber has instead of TO them, resulting in a decided to affect change by reaching Zonya Foco Peter Dunn better partnership. Hoosiers while they’re in the workplace. I was reminded that a subtle language choice can make The Wellness of Council of Indiana, in cooperation with the wellness more inclusive: encouraging “healthier” versus “healthy” Indiana Chamber, is an organization dedicated to helping goals provides accessibility to those who may consider an Hoosiers achieve total wellness, via workplace programming. appreciable step in nutrition and fitness overwhelming. Ideas Wellness is so many things and fortunately the Wellness for higher-level approaches to keeping employees engaged in Summit addresses all of them. There were discussions revolving wellness initiatives were also helpful. These included linking around physical wellness, emotional wellness, financial wellness an individual’s wellness accomplishments to their performance and more. Observationally, the Wellness Summit is a very positive review and launching group fitness competitions using high- environment. Wellness experts gather to share best practices tech pedometer-type devices (e.g., Fit Bit and Jawbone Up). and corporate leaders who have cracked the wellness code Truly the gamut of latest ideas! encourage others to take up wellness initiatives. Ideas are Additionally, I was pleased with the opportunity to network exchanged, results are highlighted and seeds are planted. with other wellness professionals. I heard some share how One of the major hurdles in wellness programming is the their “biggest loser” contests often seem highly participative perceived “nosiness” of the programs. It might seem as though and successful, yet struggle to see long-term weight and health discussing things like weight, financial well-being and mental improvements. (Many report the same people losing the same health are taboo in the workplace, but that simply isn’t the

Dr. Jo Lichten (left) delivered an energetic keynote presentation at the Indiana Employee Health and Wellness Summit, while attendees learn more at the Delta Dental of Indiana booth.

10 BizVoice/Indiana Chamber – November/December 2013 Zonya Foco Peter Dunn weight over and over!) Yet, by networking, these coordinators case. Ignoring major wellness issues is far more inappropriate learned how they can add integral educational components to than having complicated conversations with your workforce. their program to improve the sustainability of health The Wellness Summit did a great job of empowering corporate improvements, as well as how to follow up with measuring wellness leaders to have these vital discussions and, more and reporting these changes. Now we’re talking wellness! importantly, how to have conversations with company executives I empathized with fellow conference attendees who to emphasize the impact of wellness programming in general. lamented, “I can influence healthy choices at work, but with In spite of its relatively small size, Indiana has always been bucket-sized portions of addictive foods at every corner, and a a national leader. And I’m encouraged that Indiana is headed culture of sitting all evening at home, we are at war with in the right direction in regard to workplace wellness. There something that’s so much more.” And that is indeed the fight. are numerous economic benefits to wellness programming in Our objective as wellness professionals is to teach individuals the workplace, including increased productivity and reduced how to make the healthy choice the easy choice – by using health care costs. educational, motivational and even humorous means – so that But the Wellness Council and the Chamber have turned the they find success at home and in the workplace. focus to something more important: Helping people become well As a Michigan-based wellness professional, I very much is just the right thing to do. Our workplaces are our communities. enjoyed making the trek down to Indiana where I learned a If we want to improve our communities and life in the Hoosier state, great deal from worksites on the right track to wellness! then we must help our community members become well.

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November/December 2013 – BizVoice/Indiana Chamber 11 Indiana Vision 2025: A Plan for Hoosier Prosperity here’s a reason it’s called Indiana Vision 2025. Since On these pages, we break our coverage down by driver being introduced on these pages in January 2012, area. We highlight many of the challenges, opportunities and progress has been made on the long-range economic success stories. Look for the following in 2014: development action plan for the state. But there is a • January-February issue: The education and workforce long,T long way to go in some very critical areas. development elements that comprise Outstanding Talent, The mission: “Indiana will be a global leader in with stories on generating more STEM (science, technology, innovation and economic opportunity where enterprises and engineering and mathematics) degrees and addressing the citizens prosper.” skills gap for current workers. The plan: 33 goals divided between four key driver areas: • March-April: Tackling pension reform, tax strategies and • Outstanding Talent reducing smoking/obesity levels as part of crafting an Attractive • Attractive Business Climate Business Climate. • Superior Infrastructure • May-June: Developing a strategic water plan and infrastructure • Dynamic and Creative Culture. funding systems that are so important in the Superior The progress: Passage of a right-to-work law in 2012 and Infrastructure area. elimination of the state’s inheritance tax earlier this year. In • July-August: Dynamic and Creative Culture is the driver, addition, strong state regulatory rankings and steps that have been featuring assistance to business start-ups, enhanced put in place to improve education and workforce development, technology transfer and much more. health care risk factors, entrepreneurial development and more. We close with the words that kick off the Future State section of the initiative and drive the ongoing efforts of the Chamber Next steps and its many statewide partners: Regional forums and a statewide summit in 2012 introduced The premise of this plan is that by engaging now in thoughtful Indiana Vision 2025 to business, education and community leaders consideration of the future we may shape it. We are not willing to around Indiana. Governor Mike Pence, in discussing his Roadmap leave the future prosperity of Hoosiers to chance, but rather seek to for Indiana at the summit, said: “Imitation is the most sincere enhance it by our actions today. Through this plan, we have form of flattery, and we drew on ideas that came out of 2025.” attempted to establish a roadmap to prosperity where Hoosiers can The regional outreach continues in December with six achieve a higher quality of life than otherwise possible. sessions. Key developments thus far, continued local priorities and a sharing of best practices across the regions will be among INFORMATION LINK the topics at gatherings in Evansville, Fort Wayne, Indianapolis, Resource: Indiana Vision 2025 at Merrillville, Sellersburg and the South Bend area. www.indianachamber.com/2025

The Indiana Vision 2025 message was delivered in a 2012 statewide summit (left) and regional forums in Northwest Indiana (top right) and Evansville, which included regional partner Ed Hafer.

12 BizVoice/Indiana Chamber – November/December 2013 The City of Valparaiso recently announced that Pratt Industries will be expanding their domestic paper recycling plant operations here in Porter County. The $260 million investment will create hundreds of new Hoosier jobs and will ideally serve the growing needs of Pratt’s rapidly expanding U.S. customer base. “Pratt Industries is a terrific example of how Porter County’s truly multi-modal access can sustain business on a global scale,” stated Porter County Regional Airport Director Kyle Kuebler. He also emphasized that the airport contributes locally in this mission as well, by supporting Pratt’s ability to fly conveniently between facility locations in the U.S. and their operations overseas.

The company’s owner and chairman Anthony Pratt was quoted as saying that, “Valparaiso Indiana was the clear choice for this project. We’ve been a part of the business community here for many years now, and we know there is a skilled, reliable workforce available to us”. Interested in available, on airport, shovel ready sites for your aviation business? Contact us for more information at: 1-800-462-6508 Ext. 11 or email: [email protected]

PORTER COUNTY REGIONAL Serving the General and Business Aviation Sector for Over 60 Years 4207 Murvihill Road • Valparaiso, IN 46383 AIRPORT www.vpz.org November/December 2013 – BizVoice/Indiana Chamber 13

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ACA-HelplinesBizVoiceAd.indd 1 10/18/2013 10:53:10 AM WCI-BizVoiceAd.indd 1 10/15/2013 9:15:28 AM shorts

‘Showrooming’ May Be Exaggerated efore making a large purchase, such as a computer While showrooming is occurring at some level, the or other electronic device, some consumers search research shows that consumers also are looking at ratings, Bonline for prices and review information before reviews and locations to find the product they want before heading to the store. A growing number of buyers are heading to the store to buy it. believed to then purchase the product online – sometimes even from their smartphone in the store. This is called showrooming. But recent research indicates the problem may not be as extensive as the perception. Two organizations, xAd and Telmetrics, found that just 6% of smartphone users conducted online retail research while in the store and 77% eventually purchased from a brick and mortar retailer. Mobile devices are most often used for retail research prior to ever visiting a store, and nearly four in 10 mobile researchers are said to be looking for a retailer’s contact information. This group of consumers also appears to be motivated buyers. The study finds that 55% of mobile retail shoppers end up making a purchase, with the majority of those doing so within an hour of their research and in-store shopping.

Starting Early: Paying Businesses Utilizing for College … at Age 5 Online Hiring Sites hile high school students might be worried about how to eople go online today to do many things, answer the essay portion of college applications, their parents including shopping, purchasing tickets for Ware concerned too – about how to finance their children’s Pvarious events and keeping in contact with higher education. In at least one U.S. city, preparations for college costs friends. Companies are also increasing their online are starting 12 years earlier. usage, including resources such as Elance and oDesk A new program in San Francisco, Kindergarten to College (K2C), in recruiting workers for specialized projects. provides each young person’s family with $50 (or $100 if on the free or Elance is a web site that allows businesses to reduced lunch program) to be put into a trust fund for use toward list job details and freelancers to post their college expenses such as textbooks, tuition and housing. qualifications. Companies have a wide range of Students and parents who practice good saving behavior can earn independent contractor profiles to choose from in additional bonuses. Private companies will match the first $100 that is order to find the perfect person for the project. deposited into a student’s account. They will also add an additional Elance says it removes “search friction” by helping $100 for depositing $10 per month for six consecutive months. businesses find someone to complete a project, no “It’s really about the kid seeing, ‘Oh my God, I have a college matter where they are in the world. savings account. I guess this is what I’m supposed to do,’ ” explains José A similar service, oDesk, is also bringing Cisneros, San Francisco treasurer. businesses and workers together. oDesk manages Others have unsuccessfully tried similar initiatives. Members of the workers (and the payment process) throughout a project. United States Senate even sponsored a bill in 2004 that would have opened Gary Sware, oDesk CEO, notes, “Work is no a savings account for every child in the country, but it failed to pass. longer a place. Businesses are building flexible, The San Francisco implementation is igniting new interest. A school distributed teams which create more economic district in Ohio approved a similar arrangement in April, while groups opportunity for everyone. Online work is especially in Colorado, Nevada and Washington are working on creating systems empowering start-ups, as the Internet connects of their own. them with the skilled professionals they need.” While the actual impact of the K2C program will be unknown for These two sites, and others, provide another many years, research shows that children are seven times more likely to option for finding the people needed to complete attend college if they have a savings account, according to a 2010 study from one-time, specialized projects. the Center for Social Development at Washington University in St. Louis.

Shorts written by Danniella Banks

16 BizVoice/Indiana Chamber – November/December 2013

What to Expect in 2014 Legal Changes Affecting Employers By Charles B. Baldwin and Amanda C. Couture mployers once again will face changes in federal and employers’ use of arrest and conviction state regulatory policies and agendas in 2014. Three of records. In the meantime, employers the more significant changes we anticipate are: (1) may want to use targeted screening, aggressive enforcement against social media policies by rather than a broad policy that excludes theE National Labor Relations Board (NLRB); (2) limitation on all applicants with criminal history. the use of employees’ arrest and conviction records by the U.S. Indiana’s new expungement law Charles B. Baldwin Equal Employment Opportunity Commission (EEOC) and the presents the possibility that Indiana Indiana Legislature; and (3) alteration of benefits in light of the citizens can have certain misdemeanor IRS’ post-DOMA (Defense of Marriage Act) guidance. and felony conviction records sealed and/or expunged. The statute makes Limits on social media policies it unlawful for employers to refuse to Social media polices have become a major focus for the NLRB, employ a person on the basis of a which is critical of policies that limit employees’ ability to conviction that has been expunged. It engage in protected concerted activity. It is important for also provides that “in any application employers to note that the NLRB is especially concerned with for employment, a license, or other right how social media policies are applied to non-union employees. or privilege, a person may be questioned The NLRB’s general counsel has issued an almost unprecedented about a previous criminal record only three special memoranda on social media cases in the past two in terms that exclude expunged Amanda C. Couture years. His January 2012 memorandum describes 14 cases involving convictions or arrests, such as: “Have you ever been arrested for social media issues, seven of which deal with policies per se, or convicted of a crime that has not been expunged by a court?” rather than personnel actions – five of the seven policies were The expungement law, also known as the “second chance” found unlawful. The unlawful policies included prohibitions on law, raises quite a few questions about how it will be applied. disparagement; inappropriate, unprofessional or disrespectful It is unclear how the Indiana law will interact with federal laws; comments; comments negatively impacting the employer’s reputation for example, laws that prohibit felons from possession of firearms or interfering with its mission; disclosure of confidential, or that require background checks for child care workers. As sensitive, non-public company information; and use of the we watch the process play out in 2014, our recommendation is company name or service marks. that employers comply with the Indiana law to the extent they The NLRB has devoted a special page on its web site can do so without violating their other legal obligations. (www.nlrb.gov/concerted-activity) to Protected Concerted Activity cases, where you can learn more about adjustments Changes in same-sex partner benefits that may need to be made to your social media policy. Finally, we anticipate new compliance issues for employers related to providing benefits for the same-sex partners of their Background checks: Proceed with caution employees. In June 2013, the Supreme Court ruled that DOMA’s In 2014, we also anticipate that the EEOC will be taking definition of marriage for the purpose of federal benefits – one enforcement action against employers that use far-reaching man and one woman – was unconstitutional. Under DOMA, background checks. health insurance provided to an employee’s same-sex spouse The EEOC issued new guidance on the consideration of arrest was treated as income and subject to federal taxation. and conviction records in employment decisions in 2012. The most In August 2013, the IRS issued a revenue ruling finding important (and controversial) aspect of the guidance was the EEOC’s that is no longer the case, given the Supreme Court’s ruling. Note, position that, for a background check based on convictions to though, that to be treated as married for federal tax purposes, be job related and consistent with a business necessity, it should the employee must be married in a state that recognizes the marriage, include a targeted screen. This screen would take into account the regardless of where the employee lives. Civil unions and nature of the crime, the time elapsed since the crime and the domestic partnerships do not change employees’ tax status. In 2014, nature of the job. The EEOC suggests individuals eliminated by the we expect to see additional post-DOMA changes implemented screen should be given an individualized assessment (i.e., employers regarding taxes, FMLA and other same-sex benefits. should contact the applicant to get his or her side of the story). INFORMATION LINK In June 2013, the EEOC filed two high-profile lawsuits against large employers, claiming their use of criminal background Authors: Charles B. Baldwin is a shareholder and checks disproportionally screened out black job applicants. Amanda C. Couture an associate in the Indianapolis These lawsuits set the stage for court decisions that may office of Ogletree Deakins. They can be contacted at ultimately validate or invalidate the EEOC’s guidance on (317) 916-1300 or www.ogletreedeakins.com

18 BizVoice/Indiana Chamber – November/December 2013 INTERNET•TV•VOICE•SECURITY 2,500 Miles Lafayette Indianapolis of Fiber Terre Haute Columbus Connectivity Bloomington Indiana’s High-tech Advantage for Economic Evansville Development

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SmithvilleNovember/December Telecom is a division 2013 – BizVoiceof Smithville/Indiana ChamberCommunications, Indiana’s largest independent telecommunications technology company.19 think you need to be around positive people and you need to be a positive person yourself. If someone asks how I am, I always say ‘I couldn’t be better.’ I get up every day feeling like that,” shares 72-years- young Steve Ferguson. “IThis mindset and embracing life’s opportunities have guided Ferguson down a memorable professional path – one that continues marching along. His plan had been to practice law and oversee the family farm in Monroe County. But meeting innovator Bill Cook in 1963 would add to his plate and ultimately alter his course in a most satisfying way. Later that same year, the Cook Group medical device company was born. Its hallmark would be the development of life-saving minimally invasive technology.

Ferguson was a Cook Group consultant for more than two decades before finally being persuaded to make the partnership official in the early 1990s. He was Bill Cook’s confidante and trusted advisor. (Bill passed away in 2011). “I used to say my job description was whatever Bill Cook wanted that day. From the very beginning, we just found we had common interests and just related really well, and I guess to some extent I brought a sense of calmness to his sometimes always enthusiastic approach,” Ferguson offers. Today, he is chairman of Cook Group (which also includes enterprises in the retail, real estate and travel/transportation industries). The company employees 11,000, has annual sales of approximately $2 billion and generates more than a million medical device products each day. The importance of what the core company does hits home daily, Ferguson says. “To each of us, we see those stories. A child who is surviving, a parent who lives to see his grandchildren. I would think everybody in the company, whether they are on the floor manufacturing or in leadership, realizes that every device is going to affect somebody’s life.” Restore and revitalize Another Cook legacy that Ferguson has been heavily involved with is restoration of historic buildings. Ferguson led the CFC, Inc. affiliate that was responsible for these projects, which began locally in Bloomington in the 1970s. Business Leader of the Year Steve Fergu s on Steve

Steve Ferguson (left) said he and Bill Cook (right) never thought the business would reach the heights it has. “Now, we grow each year more than the size the company was in 2001. That’s like growing a whole By Rebecca Patrick new company every year.”

20 BizVoice/Indiana Chamber – November/December 2013 November/December 2013 – BizVoice/Indiana Chamber 21 Congratulations Steve. - Your friends at Cook

2013 Indiana Business Leader of the Year, Steve Ferguson, caught in-the-wild.

50th Anniversary MEDICAL www.cookmedical.com 22 BizVoice/Indiana Chamber – November/December 2013 Steve Ferguson Chairman, Cook Group, Inc.

Congratulations on being named the Indiana Chamber of Commerce’s 2013 Business Leader of the Year.

ank you for your commitment and dedication to making French Lick, West Baden Springs and Indiana a better place.

November/December 2013 – BizVoice/Indiana Chamber 23 Bloomington thanks you for your leadership.

Vision. It’s what makes a leader. It’s what makes a community. Steve Ferguson, Chairman-Cook Group, Inc. Indiana Chamber’s Business Leader of the Year

24 BizVoice/Indiana Chamber – November/December 2013

BloomingtonChamber-Steve.indd 1 10/18/2013 2:26:47 PM 785.FergusonBusinessLeaderofYear_Layout 1 10/10/13 9:20 AM Page 1

Congratulations, Steve Ferguson, on your well-deserved award.

Steve Ferguson Chairman, Cook Group, Inc.

Old National Bank proudly salutes Steve Ferguson, on receiving this year’s Business Leader of the Year award from the Indiana Chamber of Commerce. His passionate commitment to excellence in leadership and unwavering dedication to the state of Indiana serves as an inspiration to us all.

Bloomington 210 E Kirkwood 330-2600 • 4191 W Third St 349-6020 • 1825 N Kinser Pike (Marsh) 355-6810 2801 Buick-Cadillac Blvd 349-6000 • 2490 S Walnut St 330-6164 • 4616 W Richland Plaza 935-3750

0112-0November/December72 2013 – BizVoice/Indiana Chamber Mem25ber FDIC In his spare time, Ferguson enjoys golfing, playing with his dogs, spending time with his grandkids and going to the family farm. “Downtown was a shambles. Today, it’s active and vibrant. It changed the face of the community,” Marchant maintains. “Bill gave that project to Steve and he carried out the reconstruction. It was a team effort but Steve headed that up. Bloomington is a far different place than I could ever imagine without the Cook influence and the fingerprint of Steve Ferguson.” Still, the best was yet to come: The return to glory of the West Baden Hotel and creation of the French Lick Resort in 2007. “Every project we had done and all the things we learned had an influence on this. We originally set out to just stabilize the West Baden Hotel. And Historic Landmarks was supposed to find a use for it. We ended up with $35 million in it on a Ferguson notes that he and Bill were influenced in their handshake to get it stabilized ... no written agreement. That decisions by what they would see in their travels – the grew into expanding the entire vision for it. Having someone company had expanded internationally early on. else (come in and) own the casino, the hotel, etc., you would “We would walk wherever we were in the world and just have just had different visions in mind,” Ferguson explains. observe. We might observe how they finished something, what “It’s such an impact project. There’s a lot of involvement a sign looked like. Details of a particular community or a city in the bricks and mortar, and I think we’ve done a very nice job stayed with us.” there. Bill wanted the structure itself to be the decoration, and Their first rehabilitation was Bloomington’s Graham Hotel. the structure itself is magnificent. But it’s much more than that. “We thought we would redo it, sell it and move on – and work He continues, “To bring the West Baden Hotel back to life our way around downtown restoring. The selling part never and to have people visit there and enjoy it – which was always really happened much,” Ferguson laughs. one of the things Bill wanted – was the real challenge. To have “We learned a lot about adaptive reuse, taking a building it lived in and be brought back to life. And that’s much more and making it look like it was restored but having it be modern difficult than the bricks and mortar.” on the insides (in terms of office light, air conditioning, etc.). A specific and impressive lure at the French Lick Resort Bloomington businessman Lee Marchant has known can be traced exclusively to Ferguson. Ferguson for more than 40 years. He can’t say enough about “The Pete Dye Golf Course is one project that wouldn’t the lasting impact the downtown restoration has had on the have happened without him. He was the golf guy. He had the community. contacts to get (course designer) Pete Dye and the perseverance “Bill and Steve totally rebuilt one side of the square, which to get it moving,” asserts Carl Cook, Bill’s son and current was an architectural disaster. They revamped everything on the CEO at Cook Group. south side of the square, revitalized part of the east and took a “I don’t think the rest of us would have gotten it moving if lot of the historical aspects of downtown and preserved the buildings. it weren’t for him.”

The West Baden Hotel restored to its glory days; Ferguson spends Tuesdays and Thursdays overseeing operations at the French Lick Resort facility.

26 BizVoice/Indiana Chamber – November/December 2013 Taft congratulates Steve Ferguson on receiving the Business Leader of the Year Award from the Indiana Chamber of Commerce

One Indiana Square / Suite 3500 / Indianapolis, IN 46204 (317) 713-3500 / www.taftlaw.com

A Catalytic Leader

BioCrossroads congratulates Steve Ferguson for being named the Indiana Chamber of Commerce Business Leader of the Year.

Steve’s leadership at Cook Group and within our community has helped Indiana’s life sciences cluster grow into one of the largest and most diverse in the nation. His efforts have made an impact on the health and lives of people not just in Indiana, but around the world. This is a fitting honor for a man that has done so much for our state. Congratulations!

BIOX_2556_Ferguson-Ad_Final.indd 1 10/8/13 3:27 PM November/December 2013 – BizVoice/Indiana Chamber 27 Leadership and imprint It’s this vision and determination that has aided Ferguson in so many of his projects over the years – both for Cook Group and the community. Marchant worked with Ferguson in the 1960s on getting a convention center in Bloomington. “We only got it done because of Steve’s leadership abilities. He was absolutely brilliant at pulling together a large amount of different factors needed to make it work, synthesize it down to where it was a workable plan and then go like hell to get it done. “Steve has a very unique and outstanding ability to take very complex situations and make them workable from a management standpoint. His ability to finish something they got started on was absolutely phenomenal.” Carl Cook attests: “His biggest asset as a leader is his patience. And he’s the consummate attorney: listening, thinking, weighing. Analysis is constant with Steve. That’s something that can’t be shut off.” Ferguson himself cites his ability to listen as his greatest quality. “I think to be a leader you have to be able to communicate. People need to understand and trust you, believe This year, Cook Group celebrated in what you have to say. To be a good communicator, you have to be a good listener.” its 50th anniversary, which has He carries on that good practice at Cook headquarters in Bloomington, where he spends provided a trip down memory lane for Ferguson, who was chairman three of his workdays. Ferguson listens to those running the day-to-day operations and imparts of the Indiana Chamber board of his wisdom without telling them what to do: “I just listen and ask questions – or throw my directors (bottom) in 2009-2010. opinion in. They need to be making the decisions.”

Indiana University congratulates Stephen L. “Steve” Ferguson, J.D. ’66, on receiving the Indiana Chamber of Commerce “Business Leader of the Year” award for 2013. It is a well deserved recognition of his long history of commitment and leadership. Steve has generously given many years of outstanding service to the university community as an IU Trustee, member of the Indiana General Assembly, member of the Board of Directors of the IU Foundation, and past chair of the State of Indiana Commission for Higher Education, and in numerous other capacities. His dedication to higher education has had and will continue to have a lasting impact on the future of Hoosiers and the LEADERSHIP, state of Indiana. EXEMPLIFIED.

13-9B-05-VPE-innovate_Ad.indd 1 10/10/13 2:10 PM

28 BizVoice/Indiana Chamber – November/December 2013 On Tuesdays and Thursdays, he’s at the French Lick Resort. Dealing with that expansive property and government affairs are Ferguson’s major roles, according to Carl Cook. “On the government side, he’s been around a long time. He knows so much history, sometimes more than the agencies themselves. When he goes to the Legislature – he was there (as a state representative from 1967-74) – that means something. He is full of history.” The best of times Spend a moment talking to Ferguson about his career and he will refer to the relationship he had with Bill Cook. The two men were not only close working colleagues but also friends who frequently vacationed together and, in general, enjoyed each other’s company. “We shared a lot of memorable occasions. Bill was such Ferguson first became active in a great individual. Had all the right concerns about people and the right ethics, the right morals. public policy when he was Plus, he had such a great vision. He was a rare individual who could see out into the future. The elected a state representative vision he had and the willingness he had to step forward to make things successful. in his twenties. “It was such a wonderful ride, because you were always on the cutting-edge of everything; you were action-oriented and moving forward,” Ferguson reminisces. “Whether that was restoring a resort or a church in Indianapolis, establishing a clinic on-site or whatever – there were always fun places to be. The organization was there. Bill was there. Fun times.” The duo was also fixtures at various sporting events, from high school basketball games to IU athletics to the Super Bowl. All the camaraderie didn’t mean they couldn’t engage in competition or push each other’s

Congratulations to Steve Ferguson from your friends at Lilly.

November/December 2013 – BizVoice/Indiana Chamber 29 buttons from time to time. laughingly admits. On the land front, Ferguson gradually expanded his One frequent trick Bill played involved Ferguson’s family farm to 2,500 contiguous acres. “I was always out in vehicle. front of Bill on that; then he caught up with me ... but I finally “Steve used to always leave his keys in the car and if Dad passed him again and won that,” he remarks. spied one of his cars – and it didn’t matter where it was, at the Carl Cook recalls the early years before Ferguson accepted mall, downtown, wherever – Dad would jump in it and move a full-time position and was still practicing law. it, sometimes with a note. Sometimes he might move it just “We might be on one row over,” Carl Cook vacation somewhere in remembers. Montana, riding along on a “(But) one time Steve lonely highway and Steve was coming out of his would say, ‘I need to make office as his Jeep was a phone call (related to a driving away. He thought legal case).’ Well, this is his car was being stolen – the middle of nowhere. which it was, I guess – and There’s not a telephone he chased after it.” pole – not a blade of grass visible all the way to the ‘God’s work’ horizon. Something Ferguson “So we’d be driving gets very serious about is along and come upon an volunteering and community abandoned gas station and involvement, which he outside is a phone booth. A respected presence at the Indiana Statehouse, Ferguson (back row, center) believes is something He’d get out and we might has championed various pieces of legislation that became law over the years. everyone should embrace. sit there for 20 minutes while he was on the phone. It’s one of And he walks the talk. those things that kind of drove my Dad crazy. We’d get back Among his many associations, he served 12 years on the on the road an hour and Steve’s saying: ‘I need to make Indiana University Board of Trustees and was a member of the another phone call.’ ” state’s Higher Education Commission and Indiana’s Education The pair was also known to be big on practical jokes. Roundtable. “We were constantly going back and forth with each “That was one of the nice things about being associated other, always pulling little pranks. I’ve done less of it in recent with Bill; we both agreed it’s our obligation to give back to the years than when I was younger and feistier,” Ferguson community. And that doesn’t mean just money; it’s your mind, Biggest Impacts His parents His brother “Working on the family farm, the people there were an enormous “I practiced law; my brother was an attorney. That was a big influence. Your parents have a tremendous influence. After influence. I knew I wanted to stay in the area ... all it Dad passed away, I was planning on going to live there and offered: the family farm and Bloomington. Practicing law let go to college at IU. But mother said there’s more to college me do that. … I never wanted to get involved in politics; it than that; you can’t live here. For her being a widow, that wasn’t the plan. My brother did influence that. I ran (for the was a big decision. It resulted in me going to Wabash Indiana General Assembly) while I was still in law school.” College (below), which was a tremendous experience.” Ferguson would serve from 1967-1974; the sessions then were 60 days every two years. Fellow legislators “In the Legislature, all the people that I met there. The influence of people like (future Gov.) Otis Bowen, (the EPA’s first administrator) Bill Ruckelshaus, (builder) John Hart, just to name a few. I learned a lot from them at that age: I was in my twenties.” Bill Cook “Since meeting him in 1963, he’s been more than just a little influence. We became good friends. His association, friendship and business relationship; he was a special guy, and I was fortunate to have that.”

30 BizVoice/Indiana Chamber – November/December 2013 KITCHENAID® CONGRATULATES Steve Ferguson INDIANA CHAMBER’S BUSINESS LEADER OF THE YEAR

We are honored to bring the Sr. PGA Championship presented by KitchenAid® to French Lick in 2015. BH130102 November/December 2013 – BizVoice/Indiana Chamber 31 your abilities and your leadership – your participation. I think that’s what gives strength to our communities. “Bill would always say that was God’s work. Off to do God’s work today. That was his way of saying that it’s a calling we all ought to have and we all ought to participate. Bill and I were in total agreement on that. It was an important part of our culture here,” Ferguson affirms. Adds Marchant, “Bill and Steve have been involved in numerous projects that nobody even knows about, in the background, that made a difference in Bloomington. Where they quietly went about making sure the leadership and funds and so forth were in place to make it work. It just changed the whole culture in Bloomington. And they were the most active people in town.” State Rep. Ferguson attends Ferguson says it’s easy to get caught up in running a company, but urges business leaders to the opening festivities for State continue to rise to the occasion. Road 37 in Bloomington. “For the state to be successful, the leadership of the business community has to continually step out and provide leadership for the state and for the public policy of the future. “People in leadership positions that can see the future and have vision need to be the ones stepping up,” he declares. Crowning achievements There are many things that Ferguson is proud of, starting with his children: “They’ve grown up and done well. “I’m obviously proud at what we did at the French Lick Resort. The most important part of Continued on page 59

Going above and beyond.

Real progress starts with people who are inspired to make a difference. At Duke Energy, inspiration is our fuel. It’s what drives us to generate the power of innovation. Here’s to those who look at things differently. Those who set the example. Those who inspire and serve others. And with that, Duke Energy congratulates Steve Ferguson on being honored as Indiana Chamber of Commerce Business Leader of the Year.

www.duke-energy.com

32 BizVoice/Indiana Chamber – November/December 2013

Editor’s Note: Here’s how a “Leader of the Year” article normally works: The writer tells the story of the honoree, focusing on why the person is being recognized. Included is a sampling of quotes from others describing the winner’s impact. Without diminishing the accomplishments of any honorees, past or present, the 2013 Government Leader of the Year (who also earned the Chamber’s inaugural honor in 1990) is no typical award winner.

Richard Lugar’s story and accomplishments are so well-known that he is one of the recipients of this year’s Presidential Medal of Freedom. The nation’s highest civilian honor is presented to those who have made especially meritorious contributions to the security or national interests of the United States. He is being honored at the White House this month. Richard Lugar accepts the 1990 Government Leader of the Year award State, national and global leaders have outlined Lugar’s contributions from Chamber chairman Lee Cross. throughout his nearly 50 years of public service. But a 50-minute interview with Lugar is too priceless not to share as many of his comments as possible. Enjoy the Richard Lugar story – in his own words.

BizVoice®: What sparked your interest in politics?

Richard Lugar: “It began with my dad letting me (then eight years old) sit up with him until 3 a.m. as Wendell Willkie was nominated in 1940 as the Republican candidate for president. This led me to be intensely interested in political conventions long before they appeared on television. Subsequently, I began to think conceivably that I might be walking across the stage at one of them and that happened in Miami Beach (in 1972) when I was a keynote speaker at the Republican National Convention.

“I was also sparked by visits to the home of Homer Capehart (Indiana senator from 1945-1963). My dad was in the livestock commission business, and he and his father handled Homer Capehart’s livestock on his farm. And Charles Brownson, congressman from Indianapolis (in the 1950s), lived right around the corner from us, so he came into our lives.

“I was very active at Denison (University in Granville, Ohio), elected co-president of the student body with Charlene Smeltzer. We were really thrown together by campus politics and have now had 57 wonderful years together. I had opportunities when I was at Oxford on a Rhodes Scholarship to be president of the student body. Then in the Navy, as an intelligence briefer for Admiral Arleigh Burke, I came into contact with many people in public life. It was quite a new introduction at the national level.”

Following naval service and his father passing away, Lugar returned home to help save the family businesses. Thomas L. Green and Company was a food machinery manufacturing operation that his grandfather had founded. There was also the 604-acre family farm in Decatur Township that he still manages.

“In the course of that, people on the west side came to the office and said, ‘Lugar, you’ve got to

R ichard Lugar run for the school board.’ This led to an improbable race (in 1964) for the school board at a time Government Leader of the Year when I didn’t know where the board met, apart from much of what they did. Then there was the nomination for mayor of Indianapolis at a time when no Republican had been elected for 20 years or so, and some felt none would be in the near future. These were all important steps to getting involved in public life.”

BV: Why is the University of Indianapolis so important to the city? (Lugar’s involvement with the school dates back to 1976)

RL: “The University of Indianapolis story is one where it is always the focal point of southside development. UIndy can become the focal point for business growth, social services, lots of other By Tom Schuman

34 BizVoice/Indiana Chamber – November/December 2013 November/December 2013 – BizVoice/Indiana Chamber 35 things that can make the southside neighborhood larger than committees such as appropriations, passed legislation that outlined the 4,000 people on campus. I think I can be helpful. I was programs. That meant there ultimately had to be cooperation impressed from the beginning with Gene Sease (then president between the chairman and the ranking minority member of the of the school), who asked me to come down when I had committee. That was not easy; it required many people talking completed my second term as mayor (term limited at that to each other all the time. In due course, most of the authorizing point), and I wanted to run for U.S. Senate in 1976. legislation began to fall by the wayside because it became more and more strenuous just to pass the spending bills. “Gene, sensing that situation, said, ‘Why don’t you come down and become an adjunct professor (at what was then Indiana “As chairman of the Ag Committee, I was able to pass the Central). You can come teach your classes in the morning and Freedom to Farm bill, a huge change in American agriculture, then campaign in the afternoon. That is essentially what I did wiping out all of the quotas of the New Deal days, which throughout 1976 until the election in November. It offered limited my dad from planting on our own farm the corn or great opportunities to not only work with students in the wheat or soybeans, whatever his choices were as opposed to classroom, but they had an opportunity to see politics up those mandated by limits of the government. That required close. I would often take a helicopter from the athletic fields to enormous bipartisan support. go off and campaign around the state. “Apart from the drama of the Nunn-Lugar threat reduction “Gene Sease was a wonderful friend and also a great mentor to business, that required support every year – the appropriations academic life and all the opportunities that were there.” bills, the spending bills, getting the money to go into Russia, then the Soviet Union, to take down the missiles, to take down Upon starting his Senate career, Lugar began the Symposium the warheads, destroy the chemical weapons. I had to work for Tomorrow’s Leaders, bringing students from high schools very closely with Joe Biden for many years and eventually John throughout the state to UIndy for an all-day seminar. The Kerry and Chuck Hagel. I took for granted the fact that we program is now in its 37th year. were going to have to deliberate, and we were determined to have success in all these situations. “These students now are frequently in leadership positions around Indiana and around the country, and they harken back “The current predicament is there are many members, and they to those experiences. Once again, it shows the outreach of UIndy.” are certainly very sincere about this – and many constituents who voted for them are very sincere – who take the position BV: Bipartisanship, once celebrated, seems to be a political that the United States, with over $14 trillion in debt, various casualty. How have things changed in Congress? entitlement programs that have no particular future unless there are large reforms, they take the view first of all that they RL: “For about a quarter of a century of time that I served in are for ‘limited government’; much less government not just at the Senate, we had a general rule that we needed to pass a the federal level, but the state and local level, and much less budget, usually by the Easter holiday. Then we proceeded to spending. They take the view that it’s my way or the highway; outline 13 appropriations bills, to do that hopefully by Labor essentially, if you do not agree with this curtailment of Day but certainly by Sept. 30, the end of the fiscal year. We took government spending and government action, then they’re not that seriously. Twelve committees, as well as authorizing prepared to vote for any program.

At work in D.C. with (from left) presidents Reagan and Bush as well as heading the Senate Foreign Relations Committee.

36 BizVoice/Indiana Chamber – November/December 2013 Bringing energy to campus: Delivering a keynote speech at Purdue (left) and with Ball State President Jo Ann Gora at a groundbreaking for the university’s geothermal project. “This leads almost inevitably now, year by year – since there is control, certainly does not have very much control in very no budget and very few appropriations bills – to continuing large areas. There are a block of Republicans, fairly newly resolutions, which means you come up to Sept. 30 and ‘we’ll elected, that simply believe they are on a different mission than do the same spending we did last year.’ More and more people doing business in a conventional Republican way.” are rebelling against that idea. Some members take a position that limited government may mean literally the end to various BV: Are you more concerned based on the reasons you branches of government – ag, social services, transportation – cited or confident that leadership will emerge? you just shut them down because we can’t afford them. RL: “I have an innate confidence that we will find solutions, that “If you have that extreme point of view, however merited it probably there will be different people coming into government. may be, it’s almost a theological view of the saving of the I think also that there will be more optimism in due course in country and you feel you are doing that, then this does not the country as a whole. There is a disillusionment of many lead to much compromise of any sort, bipartisan or otherwise. Americans, many older Americans, who simply do not find a Within the Republican Party in the House of Representatives, great deal of hope for the future. They think that the best days it is often reported that John Boehner simply if he has not lost of America may have come and gone. There’s anger out there;

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November/December 2013 – BizVoice/Indiana Chamber 37 as people in public life visit with their constituents, they find people who want to express their anger with the totality of government. The approval rating for Congress has sunk down to 10% or maybe even high single digits.

“Many people are responding in polls that they would prefer to have cockroaches in their home than a member of Congress. When there is this degree of anger, antipathy, contempt in the public as a whole, it does result sometime in the election of unusual people to the offices. My hope is that there is going to be more optimism. We are in a degree of economic recovery, even if not as strong as all of us wish it was, that compared to other countries … we are still the strongest and are recognized that way. The dollar is still the best currency; this is where Lugar makes one of his many the Chinese want to put their reserves. television appearances with longtime nuclear arms reduction partner Sam Nunn (D-Georgia). “The terrible trauma that people find with the domestic economy and their own plight leads them to feel that our role in the rest of the world may be interesting, but probably should be a good bit more limited. I spent a great deal of time working on those problems, which I felt were vital to the future of our country – my constituents did not always agree. We have a much more constricted role of Congress presently in foreign policy, and I think this is regrettable. I don’t think the checks and balances work as well when there is that constraint.”

BV: In 2006, when we talked, much of the focus was on energy security. What do you see as key developments since that time?

RL: “What’s most remarkable is the shale oil findings. This has led already to production of oil, and possibly natural gas, in such dimensions that our dependence on the rest of the world has declined by about a third since 2006. And every indicator is that it will decline a great deal more Lugar returns to the University of if we continue those developments. That was not seen at the time, that we would be able to Indianapolis in October. Former Indianapolis Mayor William produce our way through the dilemma. Hudnut (left) and Indianapolis Colts Vice President of Operations “At the same time, we have also as a country become much more conservative in the use of Pete Ward join in the applause, energy. We have found along the way various other alternative sources, renewables, that led to a while a roundtable discussion lot more American innovation and ingenuity. This is still politically charged; the battle over the on Syria (right) also included former Indiana Congressman Keystone XL pipeline seems to go on and on and on. Many people take the point of view that Lee Hamilton (left) as moderator. climate change requires that all fossil fuels be curtailed. I’m optimistic – balance of payments are

38 BizVoice/Indiana Chamber – November/December 2013 November/December 2013 – BizVoice/Indiana Chamber 39 A long-time advocate of down, production in the United States up and our foreign policy has changed because of much physical fitness, Lugar joins in less dependence upon the Middle East and other areas that are hostile to us.” an Army run. BV: Can you name a few people along the way who you enjoyed a special bond with?

RL: “Sam Nunn, a partner from the beginning, was one of the most improbable foreign policy stories. We were sent by Ronald Reagan to Geneva in a bipartisan congressional delegation (to begin discussions on nuclear disarmament). The two of us noted no progress then, but continued to stay in touch with Russians, who finally came to us.

“We met in 1991 around a table in Sam’s office and they basically said, ‘The Soviet Union is falling apart; we’re broke. We don’t have troops to provide security around the installations of the nuclear weapons that are aimed at you folks; and you’ve spent trillions of dollars trying to think about how you’re going to defend yourself against all this.’ We said, ‘What do you need?’ They said, ‘We need money, a lot of it. We need technicians that can provide security and then begin to take down the weapons systems.’

“It was a totally counterintuitive argument after 40 years of so-called Lugar’s Legacy mutually assured destruction foreign policy. Sam worked with me to Indiana Chamber President Kevin Brinegar: “I accumulate the majorities that made possible legislation that, in fact, personally believe that Sen. Lugar has had one of the appropriated a lot of American money, American money that was used to most impactful and distinguished careers of any disarm the Soviet Union, then Russia. It was a very improbable course of member of the United States Senate. I don’t say history. I’m indebted to him for that relationship, that partnership.” that lightly because I know this country has been blessed with tremendous leaders. He has been a Lugar noted a number of other colleagues he partnered with on great ambassador for the state of Indiana, and is legislation, including Joe Biden, John Kerry and Pat Leahy. someone who has been looked upon for his advice and knowledge and counsel by all the presidents “There were people extremely important to me in the early stages. Jim who have served during his time in the Senate.” Morris has been a constant friend and ally at each stage of my career. I rely upon him. Marty Morris is going to take a position at Duke teaching President Obama on Lugar’s efforts to secure and political science. He spent 25 years as chief of staff or campaign chair. destroy weapons of mass destruction after the Way back in the beginning, Keith Bulen was a critical person in the collapse of the Soviet Union: “Your legacy will Republican nomination to be mayor and my work with the National endure in a safer and more secure world, and a League of Cities. Keith was a very good mentor and liaison with people at safer and more secure America. And we pray that the national and local levels.” this nation produces more leaders with your sense of decency and civility and integrity.” BV: Did I hear you say that you still have the table that you sat around in Sen. Nunn’s office in your meeting with the Russians? Sen. John Cornyn (R-Texas): “As an officer in the U.S. Navy, mayor of Indianapolis and a U.S. senator for RL: “When Sam left the Senate, I asked the people to roll the table down the last 36 years, Richard Lugar has served with the hallway literally to the Hart building where my office was. I purchased honor and devoted his distinguished career to public the table from the Senate, and we brought it over to the office here in the service. All Americans owe him a debt of gratitude.” Lugar Center. So as I talk to you this morning, I’m looking at that table.”

40 BizVoice/Indiana Chamber – November/December 2013 BV: When you have the opportunity, what are some of your Lugar stands in front of a Russian favorite things to do back in Indiana? Typhoon-class submarine at the SevMarsh shipyard near Severodvinsk, RL: “My first joy is to go out to the farm. In the last 20 to 25 years, Russia in August 1999. The Typhoons, I’ve worked with my son, Bob. We started planting black walnut and which could launch 20 long-range other hardwood trees in rows on our farm. We have 180 acres in ballistic missiles carrying a total of 200 hardwood trees. I enjoy working with Bob on the pruning of the nuclear warheads, were dismantled through the Nunn-Lugar program. trees or cutting out of invasive species as they call it, as well as working with the Purdue forestry school; they’ve set up some plots in which they’re doing experimental work on how to improve different forest products. (Lugar’s father was an agriculture major at Purdue). It’s a wonderful family tradition because of the beauty of the farm and the chance to work out there with Bob.”

Lugar also cites attending sporting events, and reunions with friends and family.

BV: In addition to classroom duties (at the University of Indianapolis, Indiana University and Georgetown), and hosting UIndy interns in Washington through the Lugar Center, Lugar is keeping busy with various other initiatives. What are your priorities at this stage?

RL: “The German Marshall Fund has asked me to head up the Lugar Diplomacy Center. I have a breakfast almost every month with 15 to 20BizVoice ambassadors. Ad:Layout It’s to inform 2 10/17/13 ambassadors 12:31 how PMthey Pagecan be 1 more Continued on page 64 Thank you Senator Richard Lugar for all of your years of service!

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November/December 2013 – BizVoice/Indiana Chamber 41 Hall of Fame: 23 Years of Excellence Business Leader of the Year Government Leader of the Year 2012: Scott Dorsey, ExactTarget, Indianapolis 2012: Rep. Jerry Torr & Sen. Carlin Yoder 2011: Jean Wojtowicz, Cambridge Capital Management Corp., Indianapolis 2011: Rep. Brian Bosma & Sen. David Long 2010: Mike Wells, REI Investments Inc., Carmel 2010: Tony Bennett, State Superintendent of 2009: John Swisher, JBS United, Sheridan Public Instruction 2008: Tony George, Indianapolis Motor Speedway, Indianapolis 2009: Stan Jones, former Indiana Higher 2007: Niel Ellerbrook, Vectren Corporation, Evansville Education Commissioner 2006: Mac McCormick, Bestway Express, Inc., Vincennes 2008: Former Gov. Joseph Kernan & 2005: David Frick, Anthem Blue Cross & Blue Shield, Indianapolis Chief Justice Randall Shepard 2004: Jerry Semler, OneAmerica Financial Partners, Indianapolis 2007: Fort Wayne Mayor Graham Richard 2003: Doug Bawel, Jasper Engines & Transmissions Exchange, Jasper 2006: Gov. Mitch Daniels 2002: Bob Koch, Koch Enterprises, Inc., Evansville 2005: Sen. Earline Rogers & Rep. Jerry Torr 2001: Marilyn Moran-Townsend, CVC Communications, Fort Wayne 2004: Sen. David Ford & Rep. Brian Hasler 2000: Chris Murphy, 1st Source Corp./1st Source Bank, South Bend 2003: Rep. B. Patrick Bauer & Rep. Brian Bosma 1999: Bill Cook, Cook Group, Bloomington 2002: Sen. Larry Borst 1998: Ian Rolland, Lincoln Financial Group, Fort Wayne 2001: Gov. Frank O’Bannon & Dr. Suellen Reed 1997: Patricia Miller, Vera Bradley Designs, Fort Wayne 2000: Rep. Jeff Linder 1996: Randall Tobias, Eli Lilly & Co., Indianapolis 1999: Rep. Bob Behning 1995: John Hillenbrand II, Hillenbrand Industries, Batesville 1998: Sen. Teresa Lubbers 1994: Frank Walker, Walker Information, Indianapolis 1997: U.S. Rep. Lee Hamilton 1993: Don Wolf, Hardware Wholesalers, Fort Wayne 1996: U.S. Rep. David McIntosh 1992: Dane Miller, Biomet, Warsaw 1995: Rep. Michael Smith & 1991: Van Smith, Ontario Corp., Muncie Sen. Thomas Weatherwax 1990: Dick Wood, Eli Lilly & Co., Indianapolis 1994: Rep. Paul Mannweiler 1993: Sen. Morris Mills 1992: Hon. Thomas Barnes 1991: Sen. Joseph Harrison 1990: U.S. Sen. Richard Lugar

Community of the Year 2012: Indianapolis 2011: Kokomo 2010: Terre Haute 2009: Valparaiso 2008: Noblesville 2007: Anderson 2006: Evansville 2005: LaPorte 2003 Business Leader 2007 Government Leader of the Year: of the Year: Doug Bawel Fort Wayne Mayor Graham Richard 2004: Muncie 2003: Warsaw 2002: Marion 2001: Greater Lafayette 2000: Jeffersonville 1999: Fort Wayne 1998: Rochester 1997: Batesville 1996: Elkhart 1995: Indianapolis 1994: Kendallville 1993: St. Joseph County 1992: Columbus 2011 Community 1991: Muncie of the Year: Kokomo 1990: Bluffton

42 BizVoice/Indiana Chamber – November/December 2013 Go to it

Invest in Your Employees With 2014 Training ll businesses, regardless of industry or size, seek ways to allow people to meet vendors who can assist them and help save time and money while boosting their bottom lines. them to serve their own customers.” ADeveloping employees’ skills is a crucial part of the equation. Two certificate programs offered through the Chamber Equip your workers with the skills they need for success – recognize employee training. Participants who accumulate 10 expertise that ultimately benefits your company – through credits (obtained via required courses and qualifying electives) training opportunities with the Indiana Chamber. earn a Safety Compliance Specialist Certificate or a Human Each year, the Chamber organizes approximately 40 employee Resources Compliance Specialist Certificate. Honorees receive training seminars along with major conferences and events. a personalized plaque at the Chamber’s annual Human Resources “Whether we’re sharing the latest tax developments, discussing Conference and Expo and annual Governor’s Workplace Safety human resources issues (such as the Family and Medical Leave Awards luncheon, respectively. Act, the Affordable Care Act, model employee policies and more) Also, the Wellness Council of Indiana’s AchieveWELL or describing best safety practices, we provide attendees with Certification Award assists employers with creating a corporate the information they need to effectively do their jobs and stay culture that encourages and supports employee health through up-to-date on issues that impact their businesses,” remarks Kerri worksite wellness. There are three levels: Three Star, Four Star Begley, Chamber vice president of conferences and special events. and Five Star, with honors presented at the annual Inidana Regional wellness symposiums in Evansville, Fort Wayne and Employee Health and Wellness Summit. Northwest Indiana also are slated for 2014, along with continued Companies can also increase their visibility through growth of the Chamber’s annual flagship events. They include: sponsorships. • Indiana Safety and Health Conference & Expo (presented “As our programs continue to grow, we’re providing additional with the Central Indiana Chapter of American Society of visibility for our sponsors,” Begley declares. “It’s a great way to Safety Engineers and in partnership with INSafe/Indiana get their products and services in front of our attendees.” Department of Labor) INFORMATION LINK • Human Resources Conference & Expo • Indiana Employee Health and Wellness Summit Resources: For more information on Chamber conferences • Indiana Conference on Energy Management and certificate programs, call Nick at (800) 824-6885 or • Indiana Environmental Management Conference (introduced go to www.indianachamber.com/conferences. Indiana in 2013 through a partnership with the Indiana Department Chamber member and group discounts are available for of Environmental Management) many events. “The various breakout sessions at these events allow us to To learn more about Chamber sponsorships and exhibit provide education for all levels of experience – from basic or opportunities, contact Jim Wagner at (317) 264-6876 or beginner to advanced,” Begley shares. “In addition, the expos [email protected].

Members receive discounts on a variety of Indiana Chamber conferences and special events each year.

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November/December 2013 – BizVoice/Indiana Chamber 45 hat do you do when your community loses its largest employer, unemployment numbers skyrocket and the future looks bleak? If you live in Bedford, the answer is simple: Pick yourself up, dust off and figure out something new. W That was the reality for the small city of 14,000 people in south central Indiana during the height of the Great Recession. Auto manufacturing was a major industry – and it was failing with the county’s largest employer, Visteon Corporation, closing its doors, and Dana Corporation in nearby Mitchell departing as well. GM Powertrain Bedford (the remaining auto manufacturer) faced an uncertain future with its parent company in bankruptcy and a reduced workforce. But that didn’t stop citizens, city leaders, business owners and other partners from fighting to keep their community afloat. And as local business leader Doug Kellams tells it, they dove headfirst into new ventures.

“Instead of us sitting back as a community and (saying) ‘Let’s have our pity party and wow, this has turned out really bad,’ We put our big boy and big girl pants on and said, ‘You know, let’s get through this,’ ” he recalls. “It’s a big picture of how our community came together.” And they got through it – unemployment is down, new industries are thriving, there’s a renewed focus on the population’s health, particular attention is being paid to education and workforce development, and the city is earning accolades for small business success. To top it off, Bedford was designated a Stellar Community by the state (bringing with it millions of dollars for additional city improvements) earlier this year. Momentum is building.

Bedford Everyone involved in this conversation has emphasized that a true community-wide effort was what turned the tide for Bedford. The following came together to discuss the city’s renaissance: • Mayor Shawna Girgis • Jamie Medlock, president, Bedford Area Chamber of Commerce • Becky Skillman, president and CEO, Radius Indiana • Gene McCracken, executive director, Lawrence County Economic Growth Council • Eric Marvin, executive director, Lawrence County Tourism Commission • Doug Kellams, owner, East Gate Business & Technology Center Community of the Year • Shelley Kenworthy, executive vice president, Bedford Federal Savings Bank • Joey Elliott, executive vice president, Indiana Steel & Engineering Corp. • Eric Gonzales, plant manager, GM Powertrain Bedford Marvin is just a few months into his new role at the tourism commission. He’s excited to promote the changes that are occurring in the city. “When you boil it down, it’s about community development. Everything you do that enhances your quality of life and quality of place is a positive impact on tourism,” he asserts. “Really, these people are doing my job for me. Honestly, I’ve come in at the right time, because what’s going on right now is going to really have a huge impact down the road.” Back from the brink When the recession first started to affect the city’s auto manufacturing industry, no one anticipated just how By Charlee Beasor bad it could get.

46 BizVoice/Indiana Chamber – November/December 2013 Mayor Shawna Girgis (left) and Bedford Area Chamber of Commerce President Jamie Medlock represent a group of young, diverse professionals instilling new energy into the city. November/December 2013 – BizVoice/Indiana Chamber 47 Congratulations, Bedford!

2013 Community of the Year Indiana Chamber of Commerce Around here, city and county leaders collaborate with business 2013 Stellar Community State of Indiana and community executives to create sustainable growth. Because 2013 Bicentennial Community Indiana Humanities & Bowen Center for of these partnerships, a $19 million revitalization program is Public Affairs underway to improve the quality of life for our residents.

We are Bedford. We make business easy.

www.bedfordchamber.com www.lawrencecountygrowth.com

48 BizVoice/Indiana Chamber – November/December 2013

Bedford-Chamber-Growth-Council-ad-verison-2f-FINAL.indd All Pages 10/17/13 12:33 PM Congratulations, Bedford!

We are Bedford. We make business easy.

www.bedfordchamber.com www.lawrencecountygrowth.com

November/December 2013 – BizVoice/Indiana Chamber 49

Bedford-Chamber-Growth-Council-ad-verison-2f-FINAL.indd All Pages 10/17/13 12:33 PM GM Powertrain Bedford is the remaining vestige of the county’s once dominant auto manufacturing industry. The plant has garnered over $300 million in investment from General Motors and is one of only three GM foundries in the country. “It gave me great heartburn as lieutenant governor to see new industries and doesn’t just rely on what’s worked in the past. such high unemployment numbers in my home county,” Skillman “I’m really proud of this plant, but I’m proud of what this laments. “This county’s numbers nearly matched northern community is trying to do. I think this community is trying to Indiana … and that was national news about Elkhart’s diversify as they go forward, not just be reliant on General unemployment rate, and yet we were suffering right here.” Motors or any particular industry. They’re drawing in things GM Powertrain Bedford had cut its workforce to under 400, that will sustain this community no matter what might come from over 1,000 in peak times. It was a staple in the community’s their way,” he shares. major industry – and there was no guarantee it would endure. Plant management and local union leaders joined forces to Branching out determine ways to streamline the plant and ensure its survival. One way the city has diversified is to focus on national McCracken says redefined job descriptions were a major part defense technology. It’s in a prime position to do that, in the of the streamlining process. He calls the plant “an example for middle of Indiana’s “defense triangle,” with close proximity to the country.” Naval Surface Warfare Center Crane Division, Camp Atterbury Today, it employs just over 600 and is one of only three and Muscatatuck Urban Training Center. foundries in the General Motors operation. GM has invested A major player in the city’s efforts to build up the defense $306 million in the Bedford plant since 2006, with part of that industry is East Gate Business & Technology Center, housed in earmarked for components for small gas engines, as well as the former Visteon facility. It offers manufacturing and office six-speed and new eight-speed transmissions. The 2012 wages space for technology and industrial companies. were over $46 million. Kellams and his family purchased the building in 2008, Gonzales points to the community making sure it drives into with plans to attract a major industrial employer. Timing, however, was not on their side. The city diversified into new industries. East Gate Business & “Nobody gave me the memo that the economy was going Technology Center is home to several technology and industrial companies with defense contracts. to tank,” he remarks. “My wife and I had already picked out the spot in the office that we were going to live (in case the facility remained empty).” It never came to that for the family, however. Smaller companies with defense contracts began moving in to East Gate. “Doug made this huge leap of faith by purchasing that Visteon building. This community essentially had to reinvent itself and understand their strengths and assets and what industry sectors they wanted to go after. That’s exactly what happened,” Skillman proudly highlights. “Now you see that building, it’s not at capacity, but it’s getting there. Batter up, young professionals Community leaders have specific passions for certain aspects of the city’s growth. Girgis attests hers is education, including the combining of the separate Boys Club and Girls Club into

50 BizVoice/Indiana Chamber – November/December 2013 one organization, which was completed this year. For Marvin, a new trail system is something he’s looking forward to promoting. But he also points to the benefits of attracting younger people to the region through updated amenities. One of the ways the community “Some of the steps that are being taken to attract somewhat of a younger crowd are the keys collaborated was by pulling the Boys Club and the Girls Club in all this. Through the Stellar process, we’re working on trails, working on adding some of the into one operation, enabling the quality of life (pieces) that are going to attract people here, not only from a tourism standpoint, organization to utilize available but also for the people that live here,” he contends. “I can’t reiterate the teamwork thing enough. resources more effectively. I sensed that immediately when I started talking to community leaders here; that alone was what sold me (on the job).” Skillman detected that increased vibrancy for Bedford when she returned to live and work in her hometown following eight years in Indianapolis. “I had a pleasant surprise when I came home; I felt a much more prominent sense of community here,” she describes. “A great deal of credit goes to business leaders and so many young professionals who are engaged in attempting to move the community forward.” Those young leaders include Girgis, Medlock and Marvin. Girgis, the city’s first female mayor (and first independent mayor) was just 36 when elected in 2007. Medlock, at age 28, returned to her hometown after being senior policy analyst for Skillman in the Statehouse. And Marvin, 27, spent time in Bloomington before taking the position at the tourism commission in his wife’s hometown. “I do think that Bedford is a place where younger people want to be. … It’s becoming a place where not just my grandparents can be in leadership,” Girgis offers. “Young people are stepping up and being leaders.” Medlock notes that people attending her board meetings span from their twenties to those

November/December 2013 – BizVoice/Indiana Chamber 51 We are Bedford

City of

BedfordCommunity of the Year “Opportunity… That’s what has attracted investors and adventurers from all over the world and all walks of life to our extraordinary corner of the Heartland for nearly two centuries. Give us a closer look, and you’ll agree, we are a rural community offering a world of opportunity.”

We make business easy.

Shawna Girgis, Mayor City of Bedford

www.bedford.in.us

STELLAR COMMUNITIES

52 BizVoice/Indiana Chamber – November/December 2013

City-of-bedford-ad-version-4-FINAL.indd 1 10/17/13 9:09 AM We are Bedford

City of General Motors BedfordCommunity of the Year and our Partners “Opportunity… That’s what has attracted investors and adventurers from all over the world and all Congratulate the City walks of life to our extraordinary corner of the Heartland for nearly two centuries. Give us a closer look, and you’ll agree, we are a rural community offering a world of opportunity.” of Bedford We make business easy. on your selection as the Indiana Chamber

Shawna Girgis, Mayor City of Bedford Community www.bedford.in.us of the Year STELLAR COMMUNITIES

November/December 2013 – BizVoice/Indiana Chamber 53

GM-CongratsAd.indd 1 10/3/2013 10:44:44 AM City-of-bedford-ad-version-4-FINAL.indd 1 10/17/13 9:09 AM in their sixties – but really, age doesn’t Built on Solid Rock matter when everyone shares the same goal: ne of Bedford’s claims to fame is its rich history as the “Limestone improving Bedford. Capital of the World.” Bedford limestone can be found in “There’s really no age barrier. Everybody monuments and buildings in Washington D.C., New York City, really is working together. It’s not self-serving Indianapolis and around the world. to help people; people want to (help), and we O The industry is still active today, though not quite to the extent it once have fun with it,” she says. was. But it still plays a large part in tourism for the city and the region. Girgis contends that everything is converging “A lot of people are interested in our heritage, and obviously the local to draw people back home. people are very interested, but we do get people here who are specifically “We want to be a place where, yeah, you interested in the history (of limestone),” Marvin offers. “This area obviously can go to work here, but you can choose to live has a really rich natural landscape and limestone is a huge part of that.” here if you choose some other community to The county celebrates June as Limestone Month with events that work in, or (you can work) electronically, highlight local artisans, opportunities for tours, carving demonstrations and however you do your job,” she shares. “We even the chance to participate in limestone carving. Nearby Spring Mill State want to be here. To me, that’s major progress. Park also hosts limestone events. Jamie went away, she could be gone too (but Elliott says limestone attracted his family to the area in the early 1900s she came back). Anything they want to do, and his great-grandfather started the Bedford Foundry & Machine Company. they can (do) here.” “At one time, Bedford Stone Working Machinery produced 90% of all the For people – particularly young people – stone machinery in the country. He (Elliott’s great-grandfather) wanted to wanting to stay in Bedford, moving there or name all his equipment Bedford: Bedford Crane, Bedford Diamond Saw, returning home is a major change, Skillman attests. Bedford Derricks,” he notes. “From a business perspective, nothing Skillman also recalls that her first trade mission to China as lieutenant makes us happier than a young couple that governor had a tie to Bedford limestone. wants to stay here, raise a family here. I see “There’s a life-size limestone buffalo in the West Lake Park in Zheijang that happening, more so today than in past province, placed there by (former governor) Bob Orr, contributed by the city decades,” she maintains. of Bedford to commemorate the sister state relationship,” she explains. “When I visited for the first time to China, leading a trade mission for the state, the Brand new ‘Stellar’ impact officials there couldn’t wait to show me this life-sized buffalo because they One of the first steps the city undertook knew it was from my hometown.” in 2010 was to update the comprehensive plan. Medlock points to the sister state relationship with China as something It hadn’t been touched in 25 years. Girgis that is still developing and notes that Bedford limestone continues to play an describes getting citizens to buy-in to the process. important role. “I really tried to reach out in the “Just last year when we were in China, it was the 25th anniversary of the community, and we could not fit in this building sister state relationship with the Zheijang province. Bedford limestone was (Bedford Area Chamber of Commerce office); presented as the gift last June, just like it was from Gov. Orr,” she shares. it was all of these people (gesturing to those in The gift was a five-foot piece of limestone carved into the shape of the the interview), plus a whole bunch of other state of Indiana with a Chinese proverb that reads “When one has a close people. We tried to engage people and get friend in this world, the far ends of heaven are like next door.” their opinion,” she explains. After two previous attempts at major funding from the state, Bedford was chosen as a Stellar Community by the Office of Rural and Community Affairs earlier this year. Between the money from the state and fundraising efforts locally, the city has over $19 million available for a number of improvements and upgrades. The Stellar Community program began under the direction of then-Lieutenant Governor Skillman. She affirms it was “a little strange for me to be on the other side of the table” in determining the winning communities, of which there are just two each year (the other 2013 recipient was Richmond). Bedford is known as “But as I sat back to witness the entire the “Limestone presentation, I was blown away. By Bedford’s Capital of the World.” presentation, this (win) was so obvious. Putting

54 BizVoice/Indiana Chamber – November/December 2013 this presentation together did not happen overnight; there were years make sure our employees are involved,” she adds. “A lot of of work that were leading up to the finale, if you will,” young people, they’re starting to get it. They’re starting to Skillman recalls. understand that it’s important. We want our young people that “Let me just say, as the president and CEO of Radius leave to feel like they want to come back home.” Indiana (an eight-county economic development initiative), we Kellams looks back on his efforts for community improvement. are reaching out to companies in the state, country and world “If you’re passionate about your community, it comes so and Bedford makes our job much easier because they easily,” he notes. “It goes back to helping the youth of our understand if you improve your quality of place, it makes community. … You want some way to just put a mark on that, quite a difference in the competition for new jobs.” say ‘I was involved in that.’ ” Members of the private sector dug into their pockets to Lawrence County also offered a $500,000 match for help fund the Stellar investment. Medlock points to an example fundraising efforts. of how the business community stepped up. “Last year, one of the communities that won, they had one Bright futures anticipated company that gave a million dollars. We don’t have that here, The Stellar investment will be utilized over the next three but we said that doesn’t matter, we can go collectively. This is years. Physical changes to the city will include updates and a community project. So, everybody has ownership and we refurbishments to existing buildings in the downtown square. actually raised more than that (million) without (just) one Limestone gateways and murals will welcome visitors; person writing us a check,” she shares. “We’re certainly not streetscapes will be created with the use of planters and the afraid of hard work in this community.” redesign of streetlights and sidewalks; parking flow (including Kenworthy and her husband, Jack, run Bedford Federal a new lot to ease congestion) and traffic patterns will also get Savings Bank, the only locally-owned community financial an update; and senior apartments will be constructed. institution. She put it simply about their efforts for the Stellar An historic train depot will be converted into a trail head fundraising: “We love this place.” for the new four-mile Limestone Trail system. It will also “One of the main focuses of our bank is to take care of house the Lawrence County Tourism Commission offices and our community, whether that’s to help somebody get their first provide space for a farmer’s market. home, or get a joint project with the Boys and Girls Club. We One of the things that the leaders are most excited about

We’re your neighbors.

We pass each other as we go to work each day. We see you at the grocery store. Our kids play together after school. We are the people of Duke Energy. And we are proud to be a part of this community.

Duke Energy congratulates Bedford on being named Community of the Year.

www.duke-energy.com

November/December 2013 – BizVoice/Indiana Chamber 55 56 BizVoice/Indiana Chamber – November/December 2013 November/December 2013 – BizVoice/Indiana Chamber 57 is the educational opportunities that will be created through got the water; now we’re just waiting for it to blossom.” the Stonegate Arts & Education Center, set to replace an old For Girgis, one of her main focuses for the city’s future is building on the square. on education. Stonegate will offer a space where educators and industry “I really do get excited about the future of kids, of education. can collaborate on science, technology, engineering and math Education – it’s the thing that can really just change your life,” (STEM) careers. The space will also lend itself to partnerships she says. “There are too many people right now that really with nearby Oakland City University, North Lawrence Career struggle in our community. Zero (people struggling) is the Center and Radius Indiana. perfect number; that’s my dream. I know we won’t reach it all, A new advanced manufacturing effort from Ivy Tech will but I think this gives us a real good platform to spring from.” tackle the skills gap. It’s an eight-week program that will Elliott indicates that Bedford is poised to capitalize on the provide education and skills for students going into advanced momentum. manufacturing. Duke Energy and Ivy Tech are collaborating “I’ve seen in my lifetime here a lot of different people in with leaders in four regions of the state to develop the initiative. different positions do a lot of good things. I don’t know that “These skills will be built around local needs, what we need I’ve seen a group that has more cohesively worked together in right here,” McCracken emphasizes. trying to obtain certain things, and one of the key words is confidence. That people start having confidence in what these ‘Breeding a new confidence’ people are trying to do,” he asserts. McCracken sums up what Bedford’s stellar year means for “I think that’s one reason in such a short time, they’ve the future. made a tremendous turnaround. People are doing something “I just think success begets success. It’s a snowball effect; good … there’s confidence, which can go an awful long way in as we start doing these improvements, we’ve seen more interest making an individual or community successful. That’s the key in downtown than ever before because of the (Stellar that I see – it’s breeding a new confidence the community Community) announcement,” he shares. “We’ve got the seeds; hasn’t had for a while.”

Civic leaders and citizens gathered in September for a luncheon to officially announce Bedford as the Indiana Chamber’s 2013 Community of the Year. Among the attendees was former Lieutenant Governor Becky Skillman (top left), who returned to her hometown to lead the eight-county economic development initiative Radius Indiana.

58 BizVoice/Indiana Chamber – November/December 2013 Business Resources

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Ferguson Continued from page 32 that is the impact on people. Giving people job opportunities, was one little kid who was so small and frail. He could hardly which gives them ability to take care of their families and get the basketball to the basket ... but he had one spot where homes – and have a life in their community,” he surmises. he could shoot from. He had a tough family situation. I’d pick Ferguson is also pleased with his role in getting the him up and take him to practice, and then take him home and primary road system completed in Bloomington, citing spend some time with him. I didn’t think there was going to specifically the ribbon-cutting on State Road 37. be much opportunity in life for him. But what touched him emotionally and he spent the most “Years later, one day I was walking into the HPER time on during our interview was a particular volunteer effort. Building (at IU) to watch some of the kids play and I was And it says a lot about Ferguson the man. walking past the young guy who was checking them in and he He coached about 800 basketball games involving “little said, ‘Mr. Ferguson.’ I said, ‘Yes.’ I went back and said, ‘I don’t kids up until high school” and was able to impact their young know who you are.’ He said, ‘Remember that little kid…” lives – and be enriched himself along the way. Ferguson trails off. “The thing that stands out more than the games you won “He was now in college. That’s a life you changed. You or lost is the kids you were associated with. I remember there can’t get much more memorable than that.”

November/December 2013 – BizVoice/Indiana Chamber 59 Mike Campbell Volunteer of the Year

e careful if you sit next to Mike Campbell – he might just ask you a deep, soul- By Charlee Beasor searching question, such as “What is your purpose in life?” “We had a family dinner and I asked a loved one once – this was years ago – I said, ‘Why are you here?’ and she looked at me and said, ‘To eat dinner,’ ” he recalls with a chuckle. “And I said, ‘No, no, no, you missed the point.’ People don’t think about that stuff. They don’t.” B But that’s what Campbell focused on every single day as chief wellness officer for insurance Mike Campbell visits with and risk management company Neace Lukens. He helped his co-workers and clients realize that Neace Lukens client MacAllister to achieve true wellness, employees (and employers themselves) have to be able to identify their Machinery and president Chris MacAllister. The company has a purpose and meaning in life. Without doing that, he says, wellness cannot occur. clinic on-site for employees as “If you don’t have a meaning and a purpose in life, why would you want to change anything? part of its wellness efforts. Let’s eat, drink and be merry, for tomorrow we die; so why would I want to be healthy or change anything?” he asks. “If I’m going to do something that really works, I need to help people find their purpose in life. Because if I help an employee find purpose in his or her life, now they have a motivation to be healthy. Now all I need to do is show them how to do that.” ‘Do the right things and right things happen’ Campbell’s desk (he retired from day-to-day duties shortly after this interview, although still consulting with some clients) features photos of some VIPs: his family, including a photo with his arm around his father, Amos. In the corner of the photo is a small plaque that reads, “Walk your talk.” It’s an inspiring message for Campbell, whose personal mission in life is “to see people change for the good.” The family is rich on mottos and personal missions. Amos’ mission was “to add to life.” Campbell says his son’s mission is “to help others.” And the family’s motto is “Do the right things and right things happen.” (That was also the motto of Campbell’s employee benefits company CLS Benefit Solutions, which he sold to Neace Lukens in 2007.) Campbell’s religious and political philosophies and business acumen were highly influenced by his father. But he was also motivated by his father’s health and lifestyle choices – to do the exact opposite in his own life. “My father, who I loved dearly and passed away three years ago, was the opposite of (good health). He smoked heavily; I never smoked. He overate; I never did. He was obese; I never have been overweight. I’m the same size now I was in college,” Campbell shares. “And so as happens between father and son, I kind of set out to do the opposite of what he was doing in those unhealthy areas, while at the same time adopting the good things from him that were far more important: working hard, walking your talk.” Amos was also instrumental in getting his son started on

60 BizVoice/Indiana Chamber – November/December 2013 a public speaking path. He sat his son (then age 10) down to “We are facing a big, big problem that’s going to bankrupt listen to motivational speaker Earl Nightingale’s famous this country if we don’t deal with it. So there’s not a lot of time recording, “The Strangest Secret.” (to waste) and to continue to fool around with what’s been Campbell’s first speaking gigs came during high school: As happening doesn’t make a lot of sense,” Campbell exclaims. a junior, he entered the Voice of Democracy contest (winning “To help people establish a mission or vision for their life, at the state level), and then as a senior, he was asked to preach in my opinion, has to be the No. 1 priority in a wellness a sermon in church. Campbell was also a professional gospel venture. Because you do that and you’re going to change the singer for seven years and recorded 11 albums in the 1970s. culture of the organization and stand the best possibility of “If you’re in front of people, you want to motivate them to actually sustainably changing a lifestyle for people.” do things; the motivational part just kind of came naturally. It was a collage of things that influenced me to do that and I Wellness Council advocate continue to do it. It may change in nature in the future, but I Campbell’s involvement with the Wellness Council of think it will always be part of what I do,” he adds. Indiana (WCI) has certainly changed over the years. Today, he enjoys being on the board of directors and recruiting The missing link to wellness employers to join the organization. While Campbell works in wellness now, he started out on “Everywhere I go, I take this with me,” he says, gesturing a different path: ministry, graduating from Kentucky Christian to the WCI handbook. “And when I’m out there talking with University with a degree in theology. He says the two callings someone from the standpoint of Neace Lukens, I’m always are interconnected. talking about the Wellness “When you look at my Council, encouraging them degree versus what I do to become a member and today, it’s a very short become involved.” journey. Real wellness is He first became first spiritual, second familiar with the organization emotional and third in 1997 when it was called physical,” he says. “It has the Wellness Council of to be in that order if a Northwest Indiana. He was healthy life is going to be asked to join the team and sustainable. If you don’t take the program look at it first spiritual, statewide. Campbell served then what you do physically as de facto president until isn’t going to last. the WCI became a part of Sustainability is a big issue. the Indiana Chamber of This is the reason that Commerce in early 2011. many people are saying Chuck Gillespie, that wellness is failing.” WCI executive director, As Campbell joined says Campbell’s efforts the employee benefits Campbell has received numerous recognitions for his work, including the over the last decade on business in the late 1980s, Friend of Wellness Award by the Fisher Institute of Wellness and Gerontology behalf of the organization he said it became apparent at Ball State University. He was also named Top Employee Benefits secured its success. to him where the problems Consultant by Risk and Insurance magazine and received the Responsibility “I can think of few with benefit and health Leader award from Liberty Mutual in 2012. people that have the passion, care costs started: unhealthy lifestyle choices. drive and commitment to wellness that Mike has. He is not Campbell points to a report commissioned by Congress from usually talking in the mainstream; he pushes the envelope,” the Rand Corporation, Workplace Wellness Programs Study, as Gillespie shares. proof that there’s more work to be done in workplace wellness. He also notes that many of Indiana’s wellness leaders, despite “The conclusion of the study is wellness is failing. It’s not often being business competitors, were trained by Campbell. accomplishing anything. The very specific reasons are they’re “He knows how to take off his business hat and put on his (companies) not dealing with the real issue. It’s a spiritual wellness hat more than anyone else,” Gillespie emphasizes. “I matter,” he maintains. can’t truly describe the commitment he has given to Indiana – It goes back to helping people discover their purpose in to the nation even – for wellness. He has the willingness to say life, he says. what needs to be said. He is a true leader.”

November/December 2013 – BizVoice/Indiana Chamber 61 Ron Christian Volunteer of the Year

oving from the high school classrooms of Boonville to the nearby coal mines By Tom Schuman of southwestern Indiana was a possibility that Ron Christian considered “pretty appealing” at the time. Instead, Christian embarked on a successful legal career before eventually returning “home” 20 years later in a leadership position with Vectren, one of Indiana’s five investor-owned utilities. The route was not a straightforward one. Following undergraduate work at the University of Evansville and law school at the University of Louisville, Christian explains: M “I wanted to be a real estate lawyer in 1982. The economy wasn’t very strong, and I had interviewed with a number of large firms around the country,” he recalls. “At Barnes & Thornburg in Indianapolis, the sole associate in the utility group decided she wanted to be an environmental lawyer. This was literally the week I was interviewing. They sort of on the spot said, ‘Would you like to come work with us and be a utility lawyer.’ I was not having tremendous success finding work, and it was a wonderful law firm and a great opportunity. So I did it, and I’ve been doing it ever since.” Fast forward about 17 years and Christian was a vice president and general counsel at Michigan Consolidated Gas Company in Detroit. The merger of the holding companies for Indiana Gas Co. and Southern Indiana Gas & Electric Co. created Vectren, with the new company to be headquartered in Evansville. “We had worked on that (the consolidation, when Christian had been at Indiana Energy) two or three times over a period of several years but could never get it done,” he says. “Niel Ellerbrook (Vectren chairman and CEO who had been in charge at Indiana Energy) encouraged me to come back.” Multi-faceted role Asked if he expected to end up working near his hometown, Christian exclaims, “Absolutely not.” As executive vice president, chief legal and external affairs officer, he has responsibility in Chamber participation for Ron the areas of legal, regulatory, gas supply group, insurance/risk management, sustainability, Christian includes an Indiana company foundation and more. He goes on to describe his attraction to the industry. Vision 2025 forum (left) and a “In my case, the thing that I’m really fortunate to experience is that I get to work with so Connect & Collaborate luncheon focused on workforce many smart people – accountants, economists, engineers, marketing professionals. The dollars development that was hosted are generally big. If you look at the amount of money spent in this state alone on energy, it’s by Vectren this summer.

62 BizVoice/Indiana Chamber – November/December 2013 phenomenal. The impact to the economy is substantial. “With every political administration, particularly at the federal level, there is significant change,” Christian continues. “Look at the way the Bush (George W.) administration dealt with environmental issues and contrast that with the Obama administration. We’re constantly trying to anticipate what’s going to happen and react. We have a small electric company relatively speaking but, even in our case, it can involve the expenditure of hundreds of millions of dollars, Once you make that investment, it’s irreversible. You’re hoping to utilize that for a period of 20 to 30 years.” Vectren’s energy delivery subsidiaries provide gas and/or electricity to more than one million customers in Indiana and west central Ohio. Its nonutility group includes infrastructure and energy delivery services, coal mining and energy marketing. Regulations, at both the state and federal levels, play a critical role. “It is a balancing act. In respect to rate regulation, the Utility Regulatory Commission has to be the arbiter,” Christian shares. “They’re the surrogate for competition because we don’t have competition on the electric side; we think the gas business is competitive. They have to make sure whatever we do is reasonable and appropriate. At the same time, they have to not be so restrictive that we’re unable to raise capital on reasonable terms and conditions because we spend hundreds Christian says he highly values the colleagues he works with at of millions of dollars a year in infrastructure.” Vectren, which he has called home for the past 13 years. Christian terms the Indiana regulatory climate as “constructive” no matter which political party is in power. “We’re not always sides of the debate and considers all points of view,” Griffin happy with the outcome, but if we were it would probably be says. “He has not only made many valuable contributions to tilted too much in our favor. Our philosophy as a company is our policy committee work, but also to the broader work of to be very transparent about how we conduct our business. the Chamber.” We’re in the coal business; we sell coal to ourselves. All of that Christian called it a unique opportunity to help formulate is subject to pervasive regulatory oversight. We were concerned the Indiana Vision 2025 plan, learning from subject matter about the supply of coal at reasonable prices, so we created experts at each monthly meeting before ultimately prioritizing 900 jobs (through Vectren Fuels, Inc.) in the state of Indiana.” the elements to be included in the plan. “I look back at the vision (Economic Vision 2010) that Working together preceded it; Niel (Ellerbrook) was on that group. I look at the The missions of Vectren and the Indiana Chamber are closely scorecard and what was accomplished,” he adds. “And the aligned. Executives of the company, and its predecessors, have goals that were set this time, I think in order for the state to assumed volunteer leadership roles for many years. Christian remain successful, we’re going to have to hit on all those things.” has been involved as a member of the board of directors and One issue, moving closer to reality after many years of on the energy and economic development policy committees. effort, that the Chamber and southwestern Indiana leaders He was part of the 24-person task force that created the collaborated on is the extension of Interstate 69. Currently Indiana Vision 2025 plan and was elected to the organization’s most people in Evansville “connect themselves with St. Louis executive committee in 2012. or Louisville because there is really no good way to get here “Our (Chamber) mission, long term, is to make the state a (Indianapolis). If you look at folks in Fort Wayne, I suspect better place to live and work. Our business, the utility they’re in Indianapolis a heck of a lot more than folks in Evansville business, is like a university or a hospital. We’re here as long because it’s an easy ride. We’ve just truly been isolated.” as the state is here. Our interests, and the interests represented Christian also talks to others in the Evansville area about by the Chamber, are absolutely intertwined. Personally, it’s why they should consider Chamber membership. What is his been a very rewarding experience to not only interact with the message? entire team here but all the business people who are involved.” “From a value proposition, you can’t find better resources Vince Griffin, vice president of energy and environmental in terms of human resources, environmental information,” he policy for the Chamber, has worked with Christian on a offers. “The Chamber provides very cost-effective training variety of issues. opportunities. You also can’t find better representation on “Ron is a passionate advocate on a number of topics that business issues. There’s no better value for a company than impact the energy industry, but also someone who listens to all participation in the Chamber.”

November/December 2013 – BizVoice/Indiana Chamber 63 Lugar U.S. Postal Service: Statement of Ownership, Management and Circulation Continued from page 41 Publication title: BizVoice® Publication number: 1521-0146 effective working with members of Congress and the administration Filing date: September 23, 2013 Issue frequency: Bimonthly Annual issues: 6 Annual subscription: $25.20 and how the United States can be more effective in getting our message into those countries. Mailing address: 115 W. Washington St., Suite 850S, PO Box 44926 Indianapolis, IN 46244-0926 (Marion County) Publisher: Kevin M. Brinegar (above address); Editor: Tom Schuman (above address) “I’m doing speaking around the country on university campuses. Owner: Indiana Chamber of Commerce (above address) There were two extensive trips – keynote speaker and leader of Extent and Nature of Circulation Avg. no. copies Avg. no. copies of single a large conference in South Korea shortly after the nuclear each issue during issue published nearest to threats from North Korea. I was also in Baku, Azerbaijan preceding 12 months filing date (Sept/Oct 2013) heading up a program and working with the president there Total no. of copies 15,083 15,000 Paid/requested distribution on how important that area can be to the United States.” Outside county 12,112 11,976 In county 0 0 BV: What do you want Hoosiers to say about Richard Lugar? Other requested circulation 825 1,250 Other mail classes 0 0 Total 12,937 13,226 RL: “I attempted to answer that the other day when word Nonrequested distribution Outside county 0 0 came about the Medal of Freedom. I appreciated the wonderful In county 0 0 loving but creative guidance of my parents Marvin and Bertha, Other classes of mail 0 0 and my brother Tom and sister Anne and how supportive they Outside mail 1,075 1,125 Total nonrequested distribution 1,075 1,125 have been. I mention that because that has been a key factor along Total distribution 14,012 14,351 with the loving support of my wife, Char. We have continued Copies not distributed 1,071 649 to be supportive of each other through all the public life ups Total (2 lines above) 15,083 15,000 Percent paid/requested circulation 92.3% 92.1% and downs and the raising of four wonderful sons, who I have I certify that all information on this form is true and complete. enormous pride in and have great achievements of their own. These have been critical factors in my ability to serve. My family has wanted to be teammates in this and I’ve included them.” Tom Schuman, Editor

Congratulations

Congratulations to Vectren colleague Ron Christian on his selection as one of the Indiana Chamber of Commerce’s Volunteers of the Year.

64 BizVoice/Indiana Chamber – November/December 2013 PROUD TO HONOR MELISSA PROFFITT REESE

Ice Miller congratulates all the Indiana Chamber honorees and celebrates their commitment and dedication to the local community. We also salute Ice Miller Partner Melissa Proffi tt Reese, a leader in the legal profession, mentor to women attorneys and professionals and passionate volunteer in our community. Melissa demonstrates every day her dedication to her career and the legal fi eld, community and family. She is well deserving of this very important and distinguished honor.

Chicago ∙ Cleveland ∙ Columbus ∙ DuPage County, Ill. ∙ Indianapolis ∙ Washington, D.C. November/December 2013 – BizVoice/Indiana Chamber www.icemiller.com 65 Melissa Proffitt Reese Volunteer of the Year

elissa Proffitt Reese subscribes to the notion that chaos can be a good thing. In By Rebecca Patrick fact, “welcome chaos” is how she describes her workdays. Reese is a partner at Ice Miller and leads efforts in the agribusiness, employee benefits and energy groups. Her schedule features “meeting after meeting, place after place – in and out of the office. It’s a real mixture of client work and board work.” Reese appreciates that the firm has made it a point to encourage its lawyers to give back. For Mher, that has translated to essentially having two full-time jobs. And she “loves that” and thrives on the fast pace. “I like the high energy and moving around. If I was in my office all day long drafting documents, I really wouldn’t be very happy with that kind of existence. I meet very different people, especially people outside of the legal field when I do my board work (organizations that focus on economic development and women’s issues are high on her activity list). “It’s been an excellent mix of the two. I’ve been really happy that community service benefits the firm and it dovetails together,” she explains. Setting a good example Reese credits two people in particular for being role models regarding volunteer service. In her professional life, it was her mentor at Ice Miller, Jim Cunning. Overall, it was her father. “He is a lawyer by trade and was managing partner for his law firm for 35 years, but at the same time was very, very active in the community and politics. “So I grew up watching him manage all of those things very seamlessly and he genuinely enjoyed it. It wasn’t an obligation or a commitment; it was part of his daily living. Without question, he’s the one who generally inspired me along those lines,” she offers. Her philosophy on volunteering is straightforward: It’s something everyone should do at some stage in life. “At whatever point that’s right for you, I think it’s important to serve as a role model to your children and others in the community through volunteering efforts. At a recent Ice Miller event in “You’ve received or someone has always received help from someone who has supported downtown Indianapolis, Reese them. So then to give back in that way is really fun,” she adds. provided insights about the A member of the Indiana Chamber of Commerce board for six years, Reese continues to federal health care law and what employers can expect.

66 BizVoice/Indiana Chamber – November/December 2013 Reese says the employee benefits arena has been overtaken by the complicated – 31,000 pages and counting – Affordable Care Act. share her knowledge on several of the organization’s policy Reese’s expertise and guidance on the matter have been committees as well as its political action group, Indiana invaluable to the organization. Business for Responsive Government. “That’s both in terms of our health insurance for our own Reese is often called upon to be a bridge to potential employees and particularly with regard to our ChamberCare member companies. (health coverage) program for our members. She has invested “Melissa has been extremely important to our membership hours and hours of her time helping us sort through the development efforts in recent years. She has generated morass of the Affordable Care Act. We are very grateful and numerous leads, written letters and made calls for us to help have been very well served by her assistance and leadership.” us connect with employers throughout the state,” praises Tim Reese readily acknowledges the effort and “years of Brewer, Indiana Chamber vice president of membership. absolute frustration” it took learning the law but also admits “She is absolutely a difference-maker in the Indiana “it’s really a lot of fun once you get into it and once it starts to business community, and we are very fortunate to have her click and coordinate. It’s fun to learn new areas.” contributions.” This envoy role is one Reese finds particularly satisfying. Current passions “I’ve really enjoyed interacting with other business leaders In any spare moments she may have, Reese likes to spend and letting them know what the Chamber has to offer. And time with her three children. She also loves being among when they do join the organization, it’s really rewarding to see friends in a variety of settings. And in the last five years or so, those business leaders interacting with each other and talking she has discovered a passion for golf: “As frustrating of a game about issues and concerns they share, and trying to solve those.” as golf can be, I really enjoy playing.” Regarding her volunteer efforts, Reese is particularly proud The game-changer of a new board she’s involved with called the Indy Public Safety In the last few years, Reese has shifted her focus to help Foundation (started by the city’s public safety director Troy the Indiana Chamber and countless companies navigate the Riggs). The group, in existence for a little over six months, was complex federal health care law. created to fund training or items that public safety personnel “I would say right now about 80% of what I do is on might need but can’t get through federal, state or local monies. Obamacare. The other parts of the benefits world haven’t gone An example is managerial and supervisory training. away; it’s just that the Affordable Care Act is requiring that “We have this amazing board of outstanding individuals much focus now.” who are committing in-kind service from their companies as She notes it’s the biggest piece of legislation ever in the well as time and money to support public safety. It’s an benefits area and the regulations (thus far) are two and a half example of what I really enjoy doing: Trying to figure out how times longer than the Bible. we can put either government or public servants together with “It’s been a game-changer for our practice group at Ice business and help each other – and not be in silos,” she states. Miller and all the employers out there, especially small- to “Figuring out how to get individuals in our community medium-size employers. It’s really a challenge for them to together to try to make Indianapolis a better place is my very comply with all the requirements,” she asserts. favorite thing to try to accomplish and do.” Indiana Chamber President and CEO Kevin Brinegar says

November/December 2013 – BizVoice/Indiana Chamber 67 Cornerstone Partners Taking Membership to New Heights By Rebecca Patrick oosting statewide visibility is just one of the many membership: “The Cornerstone Partners program is a way to benefits available to Indiana Chamber of Commerce recognize these interested and highly-engaged member members who join the organization’s Cornerstone companies and their commitment to the work of the Indiana Partners program. Launched at the beginning of 2013, Chamber. Through our brand strength and awareness, we have thisB initiative has already seen nearly 50 companies come on board. strong relationships with thousands of companies and A key reason for the first-year success: As the fourth numerous other stakeholders. This will help generate good largest state chamber in the country, the Indiana Chamber’s exposure for their organizations.” impact is broad and significant. “Our reach of nearly 5,000 While the Cornerstone Partners program highlights leading member companies and 800,000 workers offers an excellent investors, it does not it any way, Brewer stresses, change the opportunity to get a company’s Indiana Chamber’s commitment name out in front of many to small businesses or its people,” says Indiana Chamber advocacy role on their behalf. President and CEO Kevin Brinegar. Rather, it simply offers new “Before this program resources for exposure and launched, we had member brand recognition. representatives who were interested “Our focus continues to be in growing the statewide on businesses of all shapes and visibility of their companies. sizes and industries. We have a We think this is a great way to number of tools already designed do that. For the Indiana for small businesses, including Chamber, it allows us to keep our free HR helpline, the business driving toward our mission of research center, exposure on ‘providing economic our web site through member opportunity and prosperity for the people of Indiana and their press releases and member spotlights. And just recently we enterprises.’ And for that, we are grateful.” introduced a ACA helpline for all members to assist with the Membership levels begin at a $10,000 annual investment complicated health care reform processes and obligations. We and include Leadership, Chairman’s Circle, Champion and encourage our members to use these offerings.” Pinnacle designations. Some of the benefits (depending on the Member companies interested in joining the Cornerstone level) include visibility on the Indiana Chamber’s web site, as program or wanting more information can contact Brewer at well as on new Indiana Chamber Cornerstone office (see photo) [email protected] or (317) 264-7539. Cornerstone and event displays; special seating at the annual Legislative Partners membership levels and benefits are listed at Dinner; and recognition here, in BizVoice® magazine. www.indianachamber.com/cornerstone. Adds Tim Brewer, Indiana Chamber vice president of

68 BizVoice/Indiana Chamber – November/December 2013 Pinnacle

Champions

Chairman’s Circle

Leadership

• Allison Transmission • Honda Manufacturing of Indiana, LLC • NIPSCO • Ball State University • Hoosier Park Racing & Casino/ • Old National Bancorp • Barnes & Thornburg LLP Indiana Grand Casino & Downs – • Parkview Health Centaur Gaming • Beacon Health System • PNC • Ice Miller LLP • BP America, Inc. • Purdue University • Indiana Farm Bureau Insurance • Caesars Entertainment, Inc. – • Red Gold, Inc. Companies Horseshoe Casinos • Roche Diagnostics Corporation • Indiana Michigan Power • CNO Financial Group, Inc. • Rolls-Royce • Indiana University • Community Health Network • Sallie Mae, Inc. • Indiana University Health • Cook Group, Inc. • St. Vincent Health • Jayco, Inc. • Cummins, Inc. • Subaru of Indiana Automotive, Inc. • The Kroger Co. • DePuy Inc., a Johnson & Johnson Co. • Toyota Motor Manufacturing, • Lincoln Financial Group • Dow AgroSciences Indiana Inc. • Lutheran Health Network • Faegre Baker Daniels • Wal-Mart Stores Inc. • Marsh Supermarkets, LLC • Hillenbrand • Zimmer, Inc.

November/December 2013 – BizVoice/Indiana Chamber 69 MemberSpotlight

City Securities Corporation long-time president J. Dwight Peterson laid the groundwork for current City Securities Corporation CEO Mike Bosway. Still ‘Growing Strong’ 90 Years later Company: City Securities Corporation Address: 30 S. Meridian Street, Suite 600 Telephone: By Charlee Beasor (317) 634-4400 Web site: www.CitySecurities.com Management: Mike Bosway, CEO; John D. Peterson, chairman of the board; Danny Danielson, vice chairman of the board Employees: 245 ------What they do: City Securities Corporation is the oldest and largest independent, full-service investment firm headquartered in Indiana. The company has underwritten over 60% of Indiana’s municipal bonds over the last three decades. City Securities specializes in financial services, tax-exempt bonds, municipal bonds, wealth management, corporate finance and public finance. The company recently opened branch locations in Denver, Colo., and St. Petersburg, Fla. ------History: City Securities started in 1924 as a stand-alone corporation under an Indianapolis bank, the City Trust Company. When the financial crash of 1929 brought down the bank, J. Dwight Peterson convinced the courts that City Securities should be able to carry on.

Peterson was involved in the company for 70 years, as president and chairman of the board. His son, John D. Peterson, 80, is chairman today. Ci ty S ec uri t i es Corp.

“From the ashes of that, we started over. … Our purpose was to continue the main focus of the City Securities Corporation, which happened to be tax exempt bonds, municipal finance, gravel road bonds. That continued and everything was invented, like university financing and school building financing and all the future of public finance, and that was our main gist from 1932 up until we joined the (Midwest) stock exchange in the ’50s,” Peterson says.

CEO Mike Bosway became the company’s leader in 1999. During his tenure, the firm has focused on its proven strengths in the industry, with an emphasis on what clients might need in the future.

“Technology has had a lot to do with the changes in our business, as it has in a lot of other industries, but I think when you look at the last 20 years there’s been an enormous amount of change,” he shares.

“We’ve grown more than three-fold from a financial perspective over that period of time (the last 12 to 14 years) and a lot of it has to do with enhancing the core competencies we had at the time.”

70 BizVoice/Indiana Chamber – November/December 2013 All about the people: Just what qualities are sought in City Securities employees?

“We assume the people who join us are qualified, but what we put great emphasis on, and we’re not the only company that does this, is our five core tenants: trust, respect, integrity, attitude and commitment,” Bosway explains.

“We’re not perfect, everybody makes mistakes, but those five words are our guiding light in how we conduct business, both internally and externally.”

He contends that the company’s workforce of 245 people is driven to succeed.

Linda Matkowski, director of fixed income and capital markets, and “What we don’t want to spend is a lot of time with people who Luann Vargo, municipal underwriter, work together in City need to be motivated. We want people who are self-motivated Securities’ group bond center. and want to achieve. We’re not a publicly-traded company; Indianapolis is home: we’re not going to be a publicly-traded company. We govern The company renewed its lease in the former L.S. Ayres building ourselves as if we were a public company, so we have high in downtown Indianapolis last year, which extends the expectations of ourselves,” Bosway maintains. presence of its headquarters for another 12 years in the city. ------There are seven additional offices throughout the state. Still independent: Peterson takes pride in the fact that the organization doesn’t “We were born in Indianapolis. It’s difficult to think of our take direction from outside of Indiana, something that’s unique corporate headquarters being somewhere else. In regards to in its industry. this building, much like the Circle Tower building (where the company originated), it has a tremendous amount of history to “They’re not getting any instructions from outside like New it, and so do we,” Bosway recognizes. York, which is very important to the efforts here. It’s all right here; for better or worse, we don’t have to ask anybody “As I was walking south on Meridian, there’s a plate in between outside,” he says. these two buildings and it says: ‘Colonel Eli Lilly’s first lab.’ I stopped and paused before I entered the building for the first Part of keeping the firm local is the board of directors, Danielson time, because that’s the kind of history we’re all about.” offers: “I think it’s very unique for a small investment banking ------firm to have the kind of quality that exists on this board.” Major deals: There have been some notable deals in the company’s history, including the innovation of the “self-liquidating” bond issue to finance residence hall construction at state universities in the early 1920s. On its list of historic underwritings is Marsh Supermarkets in the 1950s. The firm also co-managed the first Indiana Toll Road Commission in the largest bond issue in Indiana’s history at the time. Another bond helped finance the construction of the Hoosier Dome for the Capital Improvement Board. The list goes on and on.

“You simply don’t have to go any further than examine the 92 counties in this state and you will see the footprint of City Securities,” states 93-year-old Danny Danielson, vice chairman of the board.

“As a result of the financial support that this company has given to the public needs in all of those counties, I think that’s one of the reasons why the company has survived. … It’s built Prior to his business career, Danny Danielson was varsity baseball such an endurable reputation as reliable, trustworthy people coach at Indiana University. He was drafted by the Brooklyn Dodgers, but declined to play as he would have competed for the that complete the job when they’ve been assigned.” same position as Jackie Robinson.

November/December 2013 – BizVoice/Indiana Chamber 71 Bosway adds that previously the board didn’t really include anyone from outside the company. That changed about 14 years ago.

“Having an outside perspective allows you to think more broadly than you normally would. It’s really integral in helping us to get to where we are today. It’s a high-functioning board, one that has historical perspective, coupled with fresh ideas and a fresh perspective on what we think we can become,” he describes. ------Those familiar with Indiana The next 90: University history might recognize City Securities will celebrate 90 years in business next year. Did Peterson ever think he’d see the some of these names, ones day the company reached that milesteone? that are also synonymous with City Securities: (from left) IU alumni Cecil W. Weathers, Dick “I really feel a couple hundred years would be really wonderful for City Securities. If this state Miller (former City Securities needs us and this industry needs us, we’re going to have the people to perform and deliver,” president), unidentified man, J. he boasts. Dwight Peterson and Judge Ora Wildermuth were heading Bosway attests that keeping the long-term future in mind when planning will ensure success. He by train to an IU versus Harvard football game in 1927. likes to relay a strength of famous hockey player Wayne Gretzky in how City Securities plans to be in business for (at least) another 90 years.

“He was not a big guy, how he excelled at a sport where it usually takes big brawn and strength – he always skated to where he thought the puck would be. That’s the mindset we have here, where we want to be three, five, seven, 10 years from now,” Bosway says. “That mindset is mandatory for a company that wants to exist a long period of time.”

Regionally known, Indiana grown.

For 90 years, investors like you have chosen advisors like us. We’re proud to be the oldest and largest investment banking firm in Indiana. Learn more at CitySecurities.com

Twitter: @CitySecurities Member FINRA/SIPC

72 BizVoice/Indiana Chamber – November/December 2013 Getting to Know...

Family tradition • Founded by brothers Hobart and Russell Creighton in 1925 • Business began on 38 acres in a reconstructed hog house • Now in the fifth generation of family ownership

By the numbers • 9,000 acres of farm ground • 200 employees • 3 million hens • 1 billion eggs produced per year

Business from start to finish • Oversee growing and laying farms • Farm crops for feed production • Operate a shell egg processing plant • Distribute directly to Marsh Supermarkets

Philosophy “We make sure we do our due diligence and keep high standards of farm practice in order to be a good neighbor.”

Home sweet home “Indiana has a very forward-thinking business climate. Kosciusko County has always been a good place for us to do business.”

Creighton Brothers A Family Touch in the ‘Egg Basket of the Midwest’ “Our special identity comes from our history and the longevity of our business. This is the ultimate self-made success story.” - Mindy Truex, vice president, Creighton Brothers

November/December 2013 – BizVoice/Indiana Chamber 73 Proud to be a Best Place to Work in Indiana

As one of the largest energy providers in the state, we are powering lives each day through community partnerships, economic development and environmental stewardship. Together with our communities, we are building a bright future for northern Indiana. Learn more at NIPSCO.com.

74 BizVoice/Indiana Chamber – November/December 2013 for helping make it happen in Indiana.

PNC congratulates Government Leader of the Year, Senator Richard Lugar, Business Leader of the Year, Steve Ferguson, and Community of the year, Bedford. We appreciate what you mean to our state and the local economy. PNC is proud to be member of the Indiana Chamber of Commerce since 1939.

pnc.com

©2013 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC November/December 2013 – BizVoice/Indiana Chamber 75 AAA Chicago Motor Club...... 1941 Duke Energy...... 1923 AAA Hoosier Motor Club...... 1944 ------AIRVAC, Inc...... 1953 Electric Motors & Specialties...... 1954 AkzoNobel Coatings, Inc...... 1963 Eli Lilly and Company...... 1923 Alcoa Howmet...... 1960 Elkhart Brass Manufacturing, Inc...... 1963 Alcoa, Inc...... 1942 Elwood C of C...... 1939 Celebrating Almco Steel Products Corporation...... 1950 Emerson Power Transmission Solutions...... 1940 Anderson Silver Plating Co...... 1952 Ernst & Young...... 1940 Over 50 Anthem Blue Cross & Blue Shield of Indiana.1951 ------Years of Aon Corporation...... 1962 F.C. Tucker Company, Inc...... 1949 ArcelorMittal...... 1963 Faegre Baker Daniels...... 1946 Membership Association Management Group LLC...... 1945 Farmers State Bank...... 1941 AT&T Indiana...... 1921 Field Rubber Products, Inc...... 1963 With the Atlas Foundry Company, Inc...... 1960 First Merchants Corporation...... 1918 Automobile Dealers Assn of Indiana, Inc.... 1941 Forrest Sherer, Inc...... 1955 Indiana ------Fort Wayne C of C...... 1920 Chamber Baldwin and Lyons, Inc...... 1962 ------Balkamp, Inc...... 1940 G.W. Berkheimer Co., Inc...... 1945 Barnes & Thornburg LLP...... 1943 Geiger and Peters, Inc...... 1960 Batesville Area C of C...... 1949 Gene B. Glick Company, Inc...... 1962 Bedford Area C of C...... 1943 Geo. Pfau’s Sons Co. Inc...... 1944 BKD LLP...... 1939 Gibson County C of C...... 1958 BMW Constructors, Inc...... 1950 Glas-Col, LLC...... 1963 Boone County C of C...... 1946 Goshen C of C...... 1952 Boyer Machine & Tool Co., Inc...... 1949 Goshen Stamping Company, Inc...... 1939 BP America, Inc...... 1939 Grant County State Bank...... 1942 Brehob Corporation...... 1955 Greater Bloomington C of C...... 1938 Bremen C of C...... 1955 Greater Elkhart C of C...... 1923 Brooks Construction Co., Inc...... 1949 Greater Greencastle C of C...... 1940 Butler University...... 1948 Greater Greenwood C of C...... 1954 ------Greater Kokomo C of C...... 1937 Central Supply Company, Inc...... 1940 Greater Lafayette Commerce...... 1935 C of C of Harrison County...... 1944 Greater LaPorte C of C...... 1923 C of C of St Joseph County...... 1918 Greater Seymour C of C...... 1940 Chase...... 1939 Greater Valparaiso C of C...... 1939 Chesterton/Duneland C of C...... 1957 Greenfield Area Chamber...... 1943 Citizens Energy Group...... 1923 Greenfield Banking Company...... 1950 City Securities Corporation...... 1940 Greensburg/Decatur County C of C...... 1942 Clabber Girl...... 1945 Group Dekko, Inc...... 1958 Clifty Engineering & Tool Co., Inc...... 1963 ------Clinton County C of C...... 1953 Hammond Group, Inc...... 1942 Coca-Cola Bottling Company...... 1942 Harrison College...... 1941 Coldwell Banker Commercial Shook...... 1958 Herff Jones, Inc...... 1939 Columbia Club, Inc...... 1941 Hill-Rom Company, Inc...... 1942 Columbus Area C of C...... 1919 Home News Enterprises, L.L.C...... 1942 Connersville/Fayette County C of C...... 1940 Hunt Construction Group...... 1949 Crawfordsville/Montgomery Co C of C...... 1918 Huntington County C of C...... 1943 Creighton Brothers...... 1944 ------Crescent Plastics, Inc...... 1961 Ice Miller LLP...... 1946 ------Indiana American Water Co., Inc...... 1963 Daviess County C of C...... 1962 Indiana Association of Realtors, Inc...... 1944 Decatur C of C...... 1946 Indiana Bankers Association...... 1943 Delta Faucet Company...... 1961 Indiana Builders Association...... 1954 Denison, Inc...... 1946 Indiana Construction Association...... 1941 DePuy Inc., a Johnson & Johnson Co...... 1939 Indiana CPA Society...... 1949 Do it Best Corp...... 1949 Indiana Energy Association...... 1941 Dorel Juvenile Group...... 1942 Indiana Farm Bureau Insurance Companies.1956 Draper, Inc...... 1942 Indiana Farmers Mutual Ins Group...... 1934

76 BizVoice/Indiana/Indiana ChamberChamber –– November/December 20132012 Indiana Furniture...... 1938 Marsh Supermarkets, LLC...... 1951 Smith Ready Mix, Inc...... 1942 Indiana Grocery & Convenience Store Assn...... 1946 Medical Protective Company...... 1941 Sommer Metalcraft Corporation...... 1942 Indiana Michigan Power...... 1940 Merchants Property Insurance Co. of IN..... 1941 Springleaf Financial Services, Inc...... 1940 Indiana Optometric Assn/Indiana Optometry..... 1957 Metropolitan Indianapolis Board of Realtors1957. Star of the West Milling Co...... 1956 Indiana Petroleum Council...... 1947 Miami County Chamber Commerce...... 1941 State Auto Insurance...... 1941 Indiana Restaurant Association...... 1943 Mid-West Metal Products Co., Inc...... 1941 Stewart & Irwin...... 1959 Indiana Telecommunications Association.... 1952 Mulzer Crushed Stone, Inc...... 1944 ------Indianapolis Motor Speedway Corp...... 1941 Muncie/Delaware County C of C...... 1923 Templeton Coal Company, Inc...... 1941 Indianapolis Power & Light Company...... 1921 MutualBank...... 1943 Terre Haute C of C...... 1923 Industrial Supply Company...... 1946 Myers Spring Company, Inc...... 1948 The C of C of Southwest Indiana...... 1919 Ingredion Inc...... 1950 ------The Farmers Bank...... 1942 Irving Materials, Inc...... 1947 National Oil & Gas, Inc...... 1958 The Ford Meter Box Co., Inc...... 1935 ------New Castle/Henry County C of C...... 1936 The Hagerman Group...... 1941 Jackson County Bank...... 1942 Niblock Machinery, Inc...... 1954 The Kroger Co...... 1934 James Heyde...... 1941 NIPSCO...... 1920 Jasper C of C...... 1954 ------The Meeks Mortuary, Inc...... 1942 Jasper Engines & Transmissions Exchange..... 1962 Oerlikon Fairfield...... 1952 Theatre Owners of Indiana, Inc...... 1941 Jay C. Food Stores, a Div. of the Kroger Co.... 1941 One Southern Indiana...... 1941 Tube Processing Corporation...... 1950 ------OneAmerica Financial Partners...... 1941 ------Kahn, Dees, Donovan & Kahn, LLP...... 1940 Ortman Drilling, Inc...... 1962 Union City C of C...... 1944 Kendallville Area C of C...... 1939 Our Sunday Visitor, Inc...... 1941 United Conveyor Corporation...... 1948 Kennedy Tank & Manufacturing Co. Inc.... 1941 Outokumpu Stainless, Inc...... 1920 Univar USA...... 1941 Kirby Risk Corporation...... 1952 ------Koch Enterprises, Inc...... 1940 Paul H. Rohe Company, Inc...... 1942 Vectren...... 1919 KPMG LLP...... 1941 Perfecto Tool & Engineering Co., Inc...... 1957 Vidimos, Inc...... 1961 Krieg DeVault LLP...... 1954 Phend and Brown, Inc...... 1943 ------Phoenix Brands...... 1934 Wabash County C of C...... 1942 L. Thorn Company, Inc...... 1947 Pike County C of C...... 1947 Wabash Electric Supply, Inc...... 1959 Lake City Bank...... 1947 PNC ...... 1939 Warrick County C of C...... 1935 Landis+Gyr Inc...... 1920 Pulaski County C of C...... 1946 Warsaw/Kosciusko County C of C...... 1939 LDI, Ltd...... 1941 ------Wayne Burial Vault Co., Inc...... 1951 Lensing Wholesale, Inc...... 1952 R.R. Donnelley...... 1922 Weaver Popcorn Company, Inc...... 1950 Ligonier Telephone Co., Inc...... 1954 Reber Machine & Tool Company Inc...... 1951 Wells County C of C...... 1941 Lincoln Financial Group...... 1924 Red Gold, Inc...... 1947 Wheaton Van Lines, Inc...... 1960 Linton-Stockton C of C...... 1946 Richmond/Wayne County C of C...... 1955 White Castle System, Inc...... 1949 Littler Diecast Corporation...... 1951 RJ Pile & Company, LLC...... 1962 Logansport/Cass County C of C...... 1943 Rochester Telephone Company, Inc...... 1943 Whiteco Industries, Inc...... 1942 Lynch Coal Operators...... 1940 Rochester/Lake Manitou C of C...... 1946 Winkler Inc...... 1943 ------WISH-TV Channel 8...... 1944 MacAllister Machinery Co. Inc...... 1943 Sarkes Tarzian, Inc...... 1948 WTHR-TV, VideoIndiana, Inc...... 1960 Madison Area C of C...... 1944 Screw Machine Products Co., Inc...... 1947 ------Madison County Chamber...... 1919 Shelby County C of C...... 1936 Zimmer, Inc...... 1943 Marion/Grant County C of C...... 1956 Shirley Brothers Company, Inc...... 1941 Zionsville C of C...... 1961

November/December 20132012 – BizVoice/Indiana/Indiana ChamberChamber 77 CORPORATE AND BUSINESS EDUCATION PARTNERSHIPS THAT ADAPT TO YOU

“Harrison College has provided our employees with the tips, tools and techniques to help them translate knowledge into

from Harrison College, I’m more optimistic than ever about what the future holds for our employees who have gone through this course.”

Zack Scott President, Ohio Valley District UPS

In today’s economy, a trained workforce is more important than ever.

The Harrison College Corporate Partnerships division is developing strategic partnerships with businesses throughout the country to deliver workforce development solutions.

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NEW Kirby Risk Service Center from Harrison College, I’m more optimistic than ever about Grif n, Georgia what the future holds for our employees who have gone through this course.” Follow us at twitter.com/KirbyRisk Zack Scott President, Ohio Valley District UPS

In today’s economy, a trained workforce is more important than ever.

The Harrison College Corporate Partnerships division is developing strategic partnerships with businesses throughout the country to deliver workforce development solutions.

To talk about what we can provide for your company, contact Harrison College Corporate Partnerships today. Neil Stanley President, Corporate Partnerships (855) 378-0004 [email protected] Corporate Partnerships November/December 2013 – BizVoice/Indiana Chamber 79 ChamberRoundtable Crossing the Lines Economic Development Goes Regional By Tom Schuman reek philosopher Aristotle probably did not have regional economic development on his mind when he coined this phrase: “The whole is greater than the sum of its parts.” But the analogy is a strong one. Economic development has been traditionally a county (and before that large city) function. But as is the case with so many aspects of life today, good- paying and high-skilled jobs – the goal of those in the profession – do not recognize county lines or other artificial borders. Those making the decisions about where thoseG jobs will land are focused on a region (or state) providing a reliable workforce and a strong economic climate. Indiana has 17 regional economic development groups, according to the Indiana Economic Development Corporation (IEDC). We asked representatives of four of those organizations to offer their insights and perspectives. The participants are:

• Jon Bond, president of the Switzerland County Economic Development Corporation and a member of the Southeast Indiana Growth Alliance (Dearborn, Franklin, Ohio, Ripley and Switzerland counties). www.SoutheastIndiana.org • E. Roy Budd, president and CEO of Energize-ECI (East Central Indiana Regional Economic Development, which represents the following counties: Blackford, Delaware, Fayette, Grant, Henry, Jay, Madison, Randolph and Rush). www.energize-eci.org • Mike Heaton, Duke Energy economic development manager and representing Accelerate West Central Indiana (Clay, Parke, Putnam, Sullivan, Vermillion and Vigo counties). www.WestCentralIndianaEDC.com • Jim Tidd, executive director of the Miami County Economic Development Authority and part of the North Central Indiana Economic Development Partnership (Cass, Clinton, Fulton, Howard, Miami and Tipton counties). www.nciedp.com

Why Regional? Former IEDC President Mitch Roob often mentioned that the back of his business card featured a map of the United States with Indiana highlighted. That was because many site selectors and international decision makers sometimes referred to Indiana as “one of those ‘I’ states (Illinois, Iowa included) in the middle of the country. Tidd admits that, “When you’re talking about trying to attract some type of foreign investment, nobody knows where Peru, Indiana is.” Budd quickly adds, “They barely know where Indiana is.” Then there are the practical reasons. Heaton acknowledges that the six counties in Accelerate West Central Indiana “don’t have a lot of resources,” so pooling the dollars and regional workforce data together “just makes a lot of sense. When you go to Chicago (for example) and meet with the site selectors, they really prefer meeting with a regional group instead of just one individual county.” From a marketing standpoint, Tidd agrees. “It makes sense, especially when you’re talking more rural communities with limited funds. You can do a lot more with your money collaboratively than you can individually.” Budd notes that it’s often difficult for local economic development organizations (LEDOs) to abandon their own marketing efforts. “That’s where the glitz and glamour is,” he offers. “If they would focus more on retention and expansion of businesses – and let the regional groups take care of the overall marketing concept – we’d be a lot better off than we are right now.” Count Bond in as a full supporter of that approach.

80 BizVoice/Indiana Chamber – November/December 2013 “I’m one local economic development person who would State impact like to push all of my marketing out to the regional level. In a The regional groups, as well as LEDOs, must have a good county like Switzerland, no matter what region you draw, working relationship with their counterparts at the state level. we’re going to be an appendage on the edge of it,” he The IEDC has its own regional offices and representatives to contends. “We’re not going to be near the center of a region, help it accomplish its mission. and that’s where it gets a little more complicated for us. We’re “At our monthly meetings, we have representation from going to be partnering in more than one regional organization IEDC, which is really beneficial,” Heaton shares. “They most likely.” generally go with us to Chicago or wherever we’re going to Tidd and Budd emphasize that regional organizations meet with site selectors. It is must work together and that, depending on the project, important to educate the staff additional partners may be brought in at different times. Those members of IEDC about the assets alliances may also cross state lines. of your particular region.” Budd says Energize-ECI has worked with three western Bond agrees that the IEDC Ohio counties on occasion. Bond states that the Southeast regional representatives are “great to Indiana Growth Alliance came work with,” but wishes they had together out of the realization of “Indiana has a more authority. “I think a lot of the need to market to industries opportunity gets left on the table … looking at southwestern Ohio. serious issue in the because it’s just hard when policy is Northern Kentucky was growing rural areas of being set at the state level … you from a business perspective at a losing population.” miss a lot of the finer points at the much faster rate than southeastern – Mike Heaton regional level.” Indiana despite similar geographic Accelerate West Central Indiana Budd advises, as in all situations, to distances from Cincinnati. be proactive and not sit around and wait for the IEDC to deliver leads. Regional branding and Varied approaches communicating about those strengths, including to the IEDC, There is far from a one-size-fits-all model. Energize-ECI’s is a responsibility his organization and others must embrace. annual budget of approximately $500,000 comes from He adds that the IEDC needs to do a better job of marketing businesses and foundations. Accelerate West Central Indiana all the assets in the state. works with approximately $30,000 a year (provided by the The group identifies two areas where policy changes could counties and/or local economic development groups), with make a difference. three of the six counties not having a full-time person focused Tidd points to previous legislation that created a county on economic development. economic development income tax (CEDIT), initially dedicated Tidd relays that the counties in the North Central partnership for a single purpose. have worked together for nearly 25 years on marketing, and “Over the last several years, the Legislature has loosened sharing leads and best practices. A formal regional planning the reigns a little bit on the CEDIT funds. (They) can be used organization is just coming into place. The Southeast alliance for whatever the county or city wants to use it for,” he notes. only goes back four years, with Bond adding that the first half “A lot of our counterparts would say we need to get back to of that time span was spent on discussions and planning. putting constraints on those taxes – that it can only be used for Yet, there are similarities. economic development. I think it has hurt capabilities within Budd, motioning toward Tidd, says, “He works for Miami communities.” County. His allegiance, first and foremost, is to that county. In addition, Budd lists the The same is true for the LEDOs that work with me. You’re deal-closing funds available to always going to have a little pushback from different elected governors in some other states: officials because they want it to come to their city first. But, for Georgia, $500 million; Louisiana, example, if a company comes to Anderson, it benefits Muncie $400 million; Texas, $700 million. because of the cross-commuting patterns that take place.” Tidd believes that old rivalries are a little more prevalent “The number of folks in rural Indiana (and other states) with the regional concept that don’t know how better understood in metropolitan areas. “But I think we’ve come a long way in being able to educate on the benefits of their local government participating regionally. We’re getting better.” is funded and don’t Another challenge is the churn of elected officials. Budd understand the return on investment terms it a constant education process and Tidd puts it bluntly: for economic development …” “Elected officials change. And so this next group comes in and – Jon Bond says, ‘Well, I don’t really understand. I want it all. I want the Southeast Indiana Growth Alliance tax revenue. I want the jobs.’ ”

November/December 2013 – BizVoice/Indiana Chamber 81 “And how much does the governor of Indiana have in a deal-closing account? Zero.” Heaton says the onus is on communities to put up the cash currently, while Tidd adds that site selectors clearly favor Indiana as the most competitive state in the Midwest, but in a recent meeting cited the lack of a deal-closing fund as a weakness. Bond contends there is a mixed message coming from Indianapolis. “At the same time that the executive branch is pushing the locals to put up most of the incentive, the legislative branch is shaming them for any incentive they put on the table and calling them irresponsible.” All concur that the current state tax credits often don’t apply. “They’re all focused on job creation, which is important,” Heaton concludes. “However, what we’re seeing with the projects is larger capital investments with (less) job creation.” All about the workers Any economic development discussion doesn’t go far without a focus on the workforce. The mismatch between employee skills and job requirements is a reality. “The biggest negative,” Budd professes, “is our ability to match our workforce training programs with the target industries we’re trying to recruit. “The Workforce Investment Act, with each state having regional workforce boards – that federal money is so difficult to access. You have to be pink, yellow and blue on the same day of “There’s 5,850 the fourth Tuesday to qualify for those funds for training. organizations around “And it’s very hard to use. So the Workforce Investment Act in my opinion is flawed legislation that needs to be revised and looked at.” the country Budd credits Georgia and South Carolina, among others, as competing for the having strong workforce training models that may be worthy of a same basic projects. closer look. The competition is fierce.” Asked about the disconnect and whether employers have done a good enough – E. Roy Budd job in communicating to educators the skill sets they need in employees, Tidd Energize-ECI says, “It depends on which side of the fence you’re on.” Bond offers that it seems there almost needs to be a translator to bridge the gap between educators and business. Tidd clarifies that he has no bias against advanced education, but fears that “for a couple of years we’ve pushed too much that you have to go to college and get a degree. With the need for manufacturing jobs, not everybody has to go and get even a two-year degree to be able to make a good, sustainable living. They have to do continuing education; they have to get some type of certification.” Some employers and parts of the state, Budd believes, treat all jobs as equal. That’s a premise that comes with danger. “I’m not looking for cheap labor jobs. That’s not going to grow wealth, grow development in your area,” he submits. “They’re going to put stress on the social service programs of your community, stress on the school system. So it’s not just about cheap jobs and low wages.” Bond views the workforce situation as an opportunity with Indiana faring better than its neighbors. For a continuing advantage, however, he believes “there’s got to be a culture in the business that drives those workers to give up their bowling night to go out and take a class and get that certification.” Tidd recalls the state’s TAG (Technical Assistance Grant) program that worked well in linking workforce needs with training funds. A number of Miami County businesses participated in the Department of Workforce Development initiative. Budd laments, “For whatever reason somebody made a decision to take some of those federal dollars and appropriate them for other programs and eliminate TAG. That was a colossal mistake.” Regionally speaking We asked each participant questions specific to their area, as well as inviting them to identify a “hidden gem” in their region. Tidd has finally seen the long-awaited completion of the Hoosier Heartland Corridor (U.S. 24 between Lafayette and Toledo, Ohio) and is in the midst of the U.S. 31 upgrade, including a bypass around Kokomo.

82 BizVoice/Indiana Chamber – November/December 2013 “It will be tremendous for logistics, warehouse, distribution, counties realize they have to count on their neighbors for manufacturing. You name the industry, it’s all about being able workforce opportunities and other needs. to get goods from one place to another place.” “One of our big selling points is education (citing Rose- Miami County and the surrounding area struggled in the Hulman, Indiana State, DePauw, St. Mary’s of the Woods and past with the closure of Grissom Air Force base. “Now there’s additional options). The other thing is the former Newport not a lot of communities that can say they’ve got a 12,500-foot Chemical Depot, which is now Vermillion Rise, a 7,000-acre runway and the community’s invested in upgrading a hangar industrial park. It’s receiving a lot of looks from heavy facility for an aircraft maintenance company. We’re starting to industrials, from the energy side.” build around that cluster and to Bond has three of the five counties in his region serving as diversify.” homes to riverboats. The immediate benefits included the Budd’s region is home to three infrastructure upgrades that took place, along with the hotels communities – Anderson, Muncie and conference facilities that attract events and visitors. At the and Marion – most devastated by end of the day, though, changes in the automobile industry. “Always the biggest few local funds are left to He says 32,000 General Motors challenge is the perception support economic workers in Anderson in 1969 lifted development. the community to the second highest that the larger communities Access is a key selling per capita income in the nation. already get everything.” point. “In Switzerland Today, there are no GM workers. – Jim Tidd County, from where our Energize-ECI has received several North Central Indiana EDP industrial sites are Environmental Protection Agency grants to located, you’re inside of assist in cleaning up and repurposing former automotive an hour from Louisville International Airport and about a half facilities. The region is among 10 finalists (out of hour from Greater Cincinnati. That’s one of the marketing approximately 360 applicants) for one of three $20 million messages we’re trying to shape.” awards that would greatly elevate those efforts. “In East Central Indiana, we sit on the largest corridor of ‘Here to stay’ underground water supply in the country,” Budd states. “We Each participant sees the regional model continuing to have a surplus availability of water and that asset is bringing us grow and mature. Not all joint efforts will look the same, but one lead opportunities, especially from the food processing industry.” common denominator is the need for a funding mechanism. Heaton indicates cooperation is at a very high level in his “I can see the regional organizations’ influence becoming region. The counties with more resources do a good job of more important with tightening budgets for the LEDOs,” Heaton sharing best practices and communicating and the smaller concludes, with Budd adding, “I think regional is here to stay.”

Bender Continued from page 9 “Creating a product from scratch is difficult,” he admits. “It’s Relax the Back (a chain of stores that sell products to ease back like you’re putting a piece of yourself out there. The toughest pain). I walked in there with my sales pitch, and I was able to thing is manufacturing in the beginning – finding someone who get into those stores.” can help with it. It may take you months to get a piece back, He adds that being realistic about production costs – and and then you have to refine it with a factory that’s overseas.” shipping fees and taxes – is critical, as well as determining a He adds that the product itself has evolved with the help fair market price. of consultants – to a level that even surprises him. “You have to let the market dictate that,” he surmises. “Now it’s doing things I never thought it would do, and “You can throw a number out there, but most of the time the every expert we give it to gives us new information,” Bender market says the number is too high and people won’t buy it, reveals. “The evolution of it is amazing to me – what it’s doing or they’re buying like crazy because the price is too low. Going for people with back, sciatic nerve and dropped foot problems.” through all those moving parts can create a big learning curve. Finding mentors with experience is another tip Bender Those are a few things that were challenging.” would give to aspiring entrepreneurs. Additionally, doing the The JB Intensive Trainer sells for $130 and can be found leg work, so to speak, of meeting with companies that can help at www.jbintensive.com. with distribution is a matter of effort, he believes. “The next step of knocking on doors and getting people to INFORMATION LINK say ‘yay’ or ‘nay’ to your product is a big step,” he shares. Resource: Jonathan Bender, JB Intensive Trainer, at “That’s something I had to do myself. That’s what I did with www.jbintensive.com

November/December 2013 – BizVoice/Indiana Chamber 83 Shopping Plus Malls Evolve as Times Change By Matt L. Ottinger ver time, humans have adapted as the environment and circumstances change. Organizations, or in this case facilities, must often do the same. Indiana Factory Shops, an outlet mall that launched in Daleville in the 1990s as a destination for area and regional shoppers, fell on hard times. In 2006, it closed. If the story ended there, it would be a sad one: Another vacant building, perhaps dilapidated, filled with nothing but memories of misguided hope from a time when the economy was thriving. ODue to savvy investing and economic development, however, Indiana Factory Shops was soon converted into the Heartland Business Center (HBC), and the facility now houses five businesses and over 700 people during working hours. The Muncie-Delaware County Economic Development Alliance was a leader in the effort and parlayed backing from outside investors into a successful project. “We were fortunate to have some really good partners,” explains Jay Julian, president/CEO and chief economic officer for the Alliance. “A local real estate entity (Coldwell Banker Lunsford) was intrinsically involved and found an investment company on the East Coast (SugarOak Investments) that started crafting a vision with the help of realtors and the business community and our team.” The five businesses now calling HBC home for some of their operations: Boyce Forms/ Systems (founded in Muncie in 1899); First Merchants Bank; IBM; Indiana Finance Company; and Sherry Laboratories. Julian contends the impact of the HBC transcends its walls and permeates throughout the area. “The center is proving to be an anchor for (the I-69) interstate exchange for Daleville and southwestern Delaware County.” he asserts. “Daleville now has a pretty good synergy and the HBC is a big part of that.” Sherry Laboratories is one of He adds that the Alliance recently purchased 16 acres of land around the facility from several businesses successfully SugarOak. It has erected a shell building, which can be finished within four months to provide a operating out of Daleville’s quick turnaround for a prospective commercial tenant. Julian relays the group has “received a Heartland Business Center. large amount of interest in the facility.” Sherry Labs has five locations in Indiana, although the testing company’s reach spans the Faith in the future nation. Aside from becoming business hubs, malls have evolved to house other types of organizations in addition to maintaining their retail clients. Concord Mall in Elkhart is one example. “For a decade, we’ve been focused on creative and alternative uses for retail space – and over that period of time have worked with four different churches, and two operate here today,” explains Robert Thatcher, general manager/director of leasing for owner Triyar Companies. “It’s a great use, and I find that it creates traffic at times when the retail trade might be a little slower. Church lets out and then a significant number of people migrate into the food court or frequent our valued retailers.” Thatcher, who is also chair of the Greater Elkhart Chamber of Commerce’s economic development council, emphasizes the continued value of retail. He reports that one in nine Hoosier jobs are based in retail and that the Concord Mall employs around 600 people,

84 BizVoice/Indiana Chamber – November/December 2013 depending on the season. “Malls are also crown jewels regarding quality of life, robust economic activity and the number of jobs that rely on them,” he surmises. Reasons for the shift The Great Recession certainly influenced commerce substantially, but other reasons exist for the changing landscape. While Thatcher says malls have seen double digit sales growth the past two years, Internet transactions take a bite out of business. “It’s thought that total Internet sales equate to approximately 15% of all gross sales nationally … and have dramatically impacted traditional brick and mortar retail in general, and very specifically in certain categories.” Thatcher lists the book and magazine business, as well as games, videos and movies, as dramatically Emmaus Christian Church in Indianapolis’ Lafayette Square Mall is just one example affected by online sales. of how malls are being repurposed. John Talbott, associate director of the Center for Education shopping experience and likely will for some time. and Research in Retailing at Indiana University’s Kelley School “I’d say with the regional enclosed malls – like Castleton, of Business, concurs that Internet sales are impacting the status Fashion Mall, etc. (both in Indianapolis) – I’ve heard our of shopping centers. However, he argues that malls are far executives say those properties are the best delivery system for from obsolete – and those that are in favorable locations are services and goods we’ve ever found,” he elaborates. “Those performing quite well. enclosed malls are still the powerhouses in the retail industry.” “The problem is not so much that we have too much retail space to lease,” he remarks. “The problem is that in the case of Get ’em in the door old malls, (they are often) in areas that are not attractive to Julian argues that when looking to fill a vacant facility like retailers and their target customers are no longer drawn to those Indiana Factory Shops, it’s critical to identify organizations that areas. Occupancy rates in quality areas are actually very high – are the best fit for the space. in the 90% range. Good malls still work, but the three rules of Thatcher concurs, emphasizing the need to think in a retail remain: Location. Location. Location.” non-traditional fashion. That sentiment is echoed by Les Morris, director of public “We continue to focus on alternative creative uses, and relations for Indianapolis-based Simon Property Group (a global others will tell you that municipal and county offices and leader in retail real estate). libraries have been good examples of this – and medical and “Our occupancy rate for our malls and premium outlets, other health care uses have been (successful),” he continues. which is the bulk of our total portfolio, is over 95%,” he notes. “It’s also become important to work with entrepreneurial retailers.” “That’s an increase from the year earlier … that’s pretty much The future may also include a shopping experience that’s a historical high based on what I can remember.” more interwoven with other aspects of life. Morris invokes Open air malls, such as Clay Terrace in Carmel or Metropolis Clay Terrace, as well as another Simon property in Austin, in Plainfield, have grown in popularity recently, but Morris Texas, that incorporates mixed-use components like office and adds that indoor malls remain a fixture in the American residential space with outdoor malls. He adds that some have included movie theaters and large aquariums to draw visitors. Malls Now Include ... “We’re pouring money by the billions this year into • City Hall – Voorhees, New Jersey refurbishing our properties, so the challenge is always to maintain • Dog park – Century City, California the property and make it fresh, make it a place where shoppers • Giant greenhouse for organic crops – Cleveland, Ohio want to come – not just to shop, but eat and be entertained.” • Ice skating rink – Clearwater, Florida • Indoor water park – Bloomington, Minnesota INFORMATION LINK • Nine-acre park (includes carousel, performance space, Resources: Jay Julian, Muncie-Delaware County Economic fountains, trees) – Columbus, Ohio Development Alliance, at www.muncie.com • Theater for performing artists – St. Louis, Missouri • Wait Room – Toledo, Ohio Les Morris, Simon Property Group, at www.simon.com (allows customers to drink beer and check email while their John Talbott, Indiana University, at www.kelley.iu.edu significant other shops) Robert Thatcher, Concord Mall, at www.triyar.com

November/December 2013 – BizVoice/Indiana Chamber 85 Protecting Our $oil Defense Sector a Driver for Indiana Economy By Matt L. Ottinger he United States military and the nation’s private sector have enjoyed a long – albeit sometimes controversial – relationship. But in order for American soldiers to be properly prepared on the battlefield, they require top-of-the-line equipment, weaponry and armor, and many Indiana businesses have contributed to this effort through the years. A 2011 report, Building National Security, from the Indiana Business Research Center at the Indiana University Kelley School of Business outlines the state’s defense sector and itsT economic impact over the last decade: • The value of defense contracts was $1.8 billion in 2001. In 2008, the number peaked at $7.8 billion • Hoosier salaries that are supported by defense contracts averaged $64,000 in 2010 (compared to $44,600 for all jobs in the state) • 38,600 Hoosier jobs are supported by defense contract dollars; 18,200 of those jobs are directly with defense contractors • Transportation equipment manufacturing; computer and electronic product manufacturing; and professional, scientific and technical services were the three top industries to receive defense contract money in 2010 • Indiana’s four largest defense contractors – AM General, Rolls-Royce Group, Raytheon Company and ITT Exelis – claimed 71% of the state’s defense money in 2010, but thousands of companies have been military contractors since 2000 Defense contracts have provided access to jobs for Hoosiers in smaller communities. For example, Raytheon – one of Indiana’s Erapsco, Inc. in Columbia City was awarded a $55.4 million contract in 2011 and has earned largest defense contractors – several more during the past two years from the Naval Air Warfare Center Aircraft Division in Maryland, recently displayed some of its to produce sonobuoys for the U.S. Navy. The Naval Surface Warfare Center Crane Division in latest technology (left) at the southwestern Indiana (Martin, Lawrence and Greene counties) employs between 5,000 and 6,000 Paris Air Show. This headgear allows military scouts to relay workers with a payroll as high as $475 million (see the July/August BizVoice for more about Crane). target information to planes. The public sector has added to its commitment to aide this alliance. The Indiana Office of Battery Innovation Center (BIC) Defense Development (IODD) was established by Gov. Mike Pence via executive order in January engineers conduct initial 2013 and received unanimous support from legislators in Senate Bill 529. calibration and alignment of lithium-ion coating/drying equipment. BIC launched earlier Leading the charge this year in the WestGate @ While Indiana once had an Office of Energy and Defense Development, it was eventually pared Crane Technology Park. down to become the Office of Energy Development. That left businesses in the defense sector without

86 BizVoice/Indiana Chamber – November/December 2013 a public agency to work with and spearhead statewide initiatives. Conexus Indiana initially helped launch the Indiana Aerospace and Defense Council in 2011 as a means to develop and unify the sector. “We were tasked with convening a statewide council of aerospace and defense industry executives and thought leaders,” explains Ryan Metzing, Conexus aerospace and defense initiative project director. “They wanted to figure out The Indiana Office of Defense Development was created earlier this what investments needed to be made to grow the industry – year so the government could help promote, drive and unify the not just money, but time, energy and effort.” state’s strong – but sometimes regionally segregated – defense Metzing describes his initial revelation that key players in sector. Duane Embree, shown after being introduced by Lt. Gov. Sue the industry were not as connected as first thought. Ellspermann, is the executive director. “It’s been a lot of relationship building,” he relays. “I was surprised, being from the legal community, which is very small. On the horizon Many attorneys know one another because for the most part Metzing sees potential for the defense sector to expand you went to school together. … I was surprised to learn that – and further capitalize on its resources. strictly from a personal relationship standpoint – how many “From a growth standpoint, Indiana probably stands to (executives in the defense industry) didn’t know one another. For grow the most from getting small and mid-sized companies instance, executives in Fort Wayne didn’t really know the people into this market,” he offers. “Our large companies can only in southwest Indiana around Crane; it’s more locally focused.” grow so much, but our smaller and mid-sized companies A cohesive approach is now under way to help Indiana could experience profound growth by becoming government gain momentum in the sector. Duane Embree, a longtime civilian contractors. Yes, it’s a shrinking DOD budget, but it’s still the leader at Crane, is executive director of the IODD. He remains biggest customer in the world.” focused on maximizing the industry’s potential in the state. Embree adds that challenges persist due to projected reductions Indiana ranked 23rd in the nation and garnered $4 billion in contracts for defense and research and development as troop in defense contracts in 2010, although those numbers dropped drawdowns get under way in Afghanistan. He adds that the to $2.9 billion and 25th in 2012. threat of base realignments and closures has loomed for decades. “(That was) primarily driven by the reduction in procurement Embree says, however, that there is positive news for the sector. of Humvees and other transportation equipment,” Embree “At the same time, Indiana is well positioned to adapt and qualifies, explaining the vehicle (produced by AM General in prosper from these major changes in defense and national South Bend) accounted for roughly 60% of all Department of security strategies and budget,” he offers. “Since (a 2007 defense Defense (DOD) contracts in Indiana in 2010. asset study conducted by the Central Indiana Corporate Partnership), In 2010, more than 75% of the state’s defense contracts Indiana’s major defense installations increased their military were concentrated in three industries: transportation value in the eyes of the DOD. (They’ve also) increased their equipment manufacturing (48%, $1.9 billion), computer and value to the state in terms of high-value jobs and opportunities electronics manufacturing (20%, $800 million) and to leverage defense technologies and assets into commercial engineering and professional services (10%, $400 million). applications, new Hoosier companies and additional jobs.” Embree contends the state has been – and will continue to be – Although the newly-formed IODD is striving to provide a well-positioned to capitalize on opportunities within the industry. unified front, Metzing acknowledges that efforts to promote “Indiana has a rich heritage of serving the defense of our the industry are often conducted regionally instead of using a nation, and Hoosiers place a high value on Indiana’s defense statewide approach. installations and defense-related industry,” Embree states. “Indiana “It’s a little bit of a challenge getting everybody on the has the fourth largest National Guard and is consistently one same page for a statewide initiative and showing it can be good of the largest military recruiting states on a per capita basis.” for all the regions to enhance the state,” he notes. “We don’t He outlines the IODD’s top three goals: (1) increase the have to be so parochial to our smaller community; think of the military value of Indiana defense installations to “mission state as the community. essential” (a high standard, in this case measured by both DOD “However, I don’t think (any of our challenges) are unique quantitative models and qualitative assessment) by 2015; (2) to Indiana when it comes to growing this industry,” he adds. increase the Indiana defense contract awards ranking from 25th “Those aren’t red flags that have to stop the growth. … The to top 20 by 2016; and (3) increase jobs created through the good news is the state is moving in the right direction.” commercial use of defense technology and assets by 10% per year. The IODD also hopes to help foster the development of INFORMATION LINK an “Indiana Defense Innovation Triangle” in south central Indiana. The triangle would include the defense installations, Resources: Ryan Metzing, Conexus Indiana, at universities and colleges, technology parks, and defense related www.conexusindiana.com businesses and contractors around Interstate 69, I-65 and I-64, Duane Embree, Indiana Office of Defense Development, and be intended to help brand the state as a defense hub. at www.in.gov

November/December 2013 – BizVoice/Indiana Chamber 87 Found elsewhere

Major Dollars in Defense Industry etween 2001 and 2010, Indiana added more than sharp decline. Meanwhile, the professional, scientific and 700 defense contractors in the state and gained over technical services industry has seen steady gains. $2 billion in additional funds; in 2010, Indiana’s • Top 10 contractors (left) with four – AM General, Rolls- defense contracts were worth more than $4 billion. Royce Group, Raytheon Company and ITT Exelis – totaling BThis information, and much more about Indiana’s over three-quarters of all defense contract dollars in the state. growing defense sector, is found in the Indiana Business Research Center’s 2011 report: Building National Security: Defense-supported salaries versus The Economic Impact of Indiana’s Defense Industry. average salaries for all jobs (2009) The following chart and graphs highlight a few trends, including: $100,000 • Salary comparisons (right) for defense jobs (nearly $20,000 higher) compared to all positions. n Indiana total • Changes in three industries (bottom right) that made up $80,000 n Indiana defense- three-quarters of all 2010 defense contracts in the state. supported jobs Despite a spike in transportation equipment manufacturing in 2008, the sector has experienced a $60,000 Indiana’s Top Defense Contractors (2010)

0.7% 15.6% 1.3% 26.7% $40,000 2.2% 3% 3% 3.3% $20,000 9.7% 18.2% 16.5% 0 All jobs Manufacturing jobs only n AM General - $1.07 billion n Rolls-Royce Group, PLC n Raytheon Company Change in Value of Indiana Defense Contracts (2001-2010) n ITT Exelis n Calumet Specialty Products 1,000 n Ameriqual Group, LLC n Petroleum Traders n Transportation equipment n ERAPSCO manufacturing 800 n Tri Star Engineering n Computer and electronic n Kimball International product manufacturing n All others n Professional, scientific and 600 technical services

400 Value: 2001 = 100

200

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

88 BizVoice/Indiana Chamber – November/December 2013 Honoring a leader who is helping make our business community stronger.

Indiana University Health Business Solutions would like to congratulate Steven L. Ferguson for being named the Indiana Chamber’s Business Leader of the Year. As one of our former board of directors, we’re proud of the work he has done to help organizations and employees in Indiana stay strong.

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Wellness | On-Site Health | Health Plans | Executive Health Occupational Health | Employee Assistance

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Steve Ferguson • Member Spotlight: City Securities Corporation

Steve Ferguson • Member Spotlight: City Securities Corporation