Legislative Outlook: Chamber’s top priorities | Road Trip Treasures: Basketball bonanza

Magazine of the Indiana Chamber of Commerce January/February 2018 Batesville Tool & Die, Inc. Where TechnologyMeets Quality

Since 1978, Batesville Tool & Die has offeredfull-service stampings, utilizing presses from100 to 1,200 tons, including 6 servo presses up to 800 tons. We provide some of the most technical parts and assembly components in the industry,implementing a vast array of automated assembly and robotic weld operations, including resistant and MIG welding processes. We have an on-site tooling facility, producing some of the most complex progressive and transfer dies to manufactureyour highly engineered components. At BTD, we continue to seek improved services and technology,offering engineering and simulation support to create the most innovative solutions to the most complex problems.

As a leader in the stamping industry,Batesville Tool & Die values the relationships that we've made with our customers. We strive to be a strategic partner by implementing leading edge technology and maintaining a diverse range of processes to meet the extensive variety of customer requirements. We are an Indiana Company looking forIndiana partnersto grow with. We hope you will consider BTD foryour futurestamping needs.

Batesville Tool & Die, Inc. 177 SIX PINE RANCH ROAD - BATESVILLE, IN 47006 812-934-5616 - www.btdinc.com 100+ young adults in internships or early career programs

$157k in grants to fund innovation in education

$600k in tuition reimbursements annually

At Allegion, our commitment to supporting the next generation of talent Committing to goes hand-in-hand with our expertise in technology and security. Our employees not only experience modern manufacturing, they gain skills in the next generation. new technology and problem-solving that make Allegion better.

Learn more about Allegion’s culture at www.allegion.com, or follow us on social.

©2017 Allegion plc. All rights reserved. January/February 2018 – BizVoice/Indiana Chamber 1 PRESIDENT’S MESSAGE

Tipping Our Hats to the Manufacturers www.bizvoicemagazine.com It’s generally acknowledged that Indiana and our country, January/February 2018 | Volume 21, Number 1 for that matter, have experienced three major economic ® eras: agricultural age, Industrial Revolution and today’s BizVoice knowledge economy. Publisher Kevin Brinegar [email protected] The tie binding them all is manufacturing. Building and making things, particularly in Indiana, is part of our past, Editor present and future. And building upon our existing Tom Schuman (317) 264-3792 manufacturing strengths (as well as agriculture, [email protected] distribution and logistics) is critical to successfully moving our state forward for generations to come. Art Director Tony Spataro [email protected] While there are not enough pages in this publication or any other to fully dissect Indiana’s manufacturing prowess, your BizVoice® team provides an excellent broad-based Managing Editor Rebecca Patrick perspective. Beginning on Page 34, view features, profiles, statistics and more. We [email protected] spotlight: Advertising • Yesterday: Manufacturing in World War II, the automobile industry and several Tim Brewer (317) 496-0704 companies dating back to the mid-1800s [email protected] • Today: Unprecedented success in Elkhart County, a statistical snapshot and everything from hand-dipped candles to the latest medical technology Writers/Editors Symone C. Skrzycki • Tomorrow: Industry insights on challenges and possibilities, and futuristic work Charlee Beasor taking place in aviation, composites and more Crickett Gibbons

Mission January, of course, means the start of a new General Assembly session. Indiana To inform and influence Chamber priorities, a snapshot of why our tech policies are so important and strong progress in Washington regulatory relief are included. Plus, we have a Q&A on Page 16 Contributors with the keynote speaker for our February 13 Legislative Dinner. Chris E. Muhlenkamp Kendra Vanzo Jack Wittman If a new year means legislative activity, it also stands for basketball season heating up. The first of a yearlong Road Trip Treasure Series takes you to three can’t-miss hoops Indiana Chamber Chair Charles B. Baldwin destinations in Henry County. Ogletree Deakins, Indianapolis The Indiana Chamber kicked off its fiscal year by hosting more than 2,000 members and Indiana Chamber Vice Chair Paul Thrift guests at our 28th Annual Awards Dinner in November. It was indeed a special evening. Thompson Thrift, Terre Haute As the calendar turns, we look forward to a productive and successful 2018 – and wish the same for all. President and CEO Kevin Brinegar Thank you, as always, for reading BizVoice®.

Kevin M. Brinegar President and CEO

BizVoice® (ISSN 1521-0146) is published bimonthly by the Indiana Chamber of Commerce, 115 W. Washington, Suite 850S, P.O. Box 44926, Indianapolis, IN 46244-0926. BizVoice® magazine is provided as a benefit of membership in the 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 Mission: Indiana Chamber of Commerce, 115 W. Washington, Suite 850S, Indianapolis, IN 46204 Cultivate a world-class environment which Phone: (317) 264-3110 | Fax: (317) 264-6855 provides economic opportunity and prosperity www.indianachamber.com | [email protected] for the people of Indiana and their enterprises. BizVoice® is printed on FSC® certified paper ©Copyright 2018, Indiana Chamber of Commerce

2 BizVoice/Indiana Chamber – January/February 2018 You and your employees can save big with ChamberCare Savings

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January/February 2018 – BizVoice/Indiana Chamber 3 CONTENTS

Indiana’s Leading Statewide Business Magazine Cover photos: Automobiles have been part of the Indiana manufacturing story for many years. The Auburn (top) came from a 1.5-million-square-foot Connersville plant capable of producing 400 bodies and 250 completed cars a day (Indiana Historical Society, M0159; photo is cropped). The first Honda rolled off the line in Greensburg in 2008. Shown is the 2017 Honda Winner of 84 national, state awards since 1999 CRV (Honda Manufacturing of Indiana, LLC).

FEATURE STORIES 42 28 Hoops History Our Road Trip Treasures series kicks off with visits to three iconic basketball venues – all within a short distance of each other in Henry County. Series Sponsor:

36 Industrial Strength

Indiana’s manufacturing prowess may never have been more Indiana Historical Society, P0359 evident than during World War II. Relive the transitions that took place in factories statewide. FURTHERMORE

70 16 At the Center of It All Legislatively Speaking Reince Priebus went from his Midwest roots – in Wisconsin – to the The jet engine dominating today’s aviation world is assembled national stage with the Republican Party and the Trump administration. in three places – one of them being GE Aviation in Lafayette. He will keynote the 2018 Indiana Chamber Legislative Dinner. Learn about the processes and the results. • Indiana General Assembly priorities ...... 20 • Tech policies and their impact ...... 22 76 • Progress on federal regulations ...... 24 Luxurious Approach • Column: Next steps on water policy ...... 26 A helipad and hot tub on a recreational vehicle; a 14-foot-tall 35 human-piloted racing machine. That’s some of the work taking Salute to Manufacturing place at Furrion in Elkhart. In addition to the three feature stories (at left), we explore the past, present and future of Indiana’s manufacturing strength. • Business Profile: Brinly-Hardy ...... 35 • Tops in steel production 40 28 • Early auto empire ...... 42 • Business Profile: Wolf Mattress 45 • Trio of Elkhart companies tops list ...... 48 • Musical maestros at Conn-Selmer ...... 50 • Found Elsewhere: Statistical snapshot ...... 54 • Special scents at Warm Glow Candle ...... 58 • Cross Cut Vintage Designs: A carpenter and his barn 62 • Lighting the way at Inscope Medical Solutions . . . . . 64 • Analyzing manufacturing’s future 66 • Composite work at the Indiana Manufacturing Institute . . . 74

DEPARTMENTS 2 President’s Message 5 Tweet Street 6 HR Column – Creating a Talent Engine 8 Guest Column – Manufacturing Talent 10 Go To It 12 Business Resources 14 In Pictures – Chamber events

4 BizVoice/Indiana Chamber – January/February 2018 TWEET STREET

What’s Chirping on Tweet Street? The Indiana Chamber has nearly @IndianaChamber What others are saying to – or about – the Indiana Chamber: 18,000 Twitter followers. Are you We support continuing financial support of on the list? Certified Tech Parks that have been successful @LugarSeries: Lugar Series Board Member and reached the $5 million funding cap. CTPs Blair Milo is featured on the latest Indiana would earn the funds from the designated Chamber podcast, addressing Indiana’s activity within the CTP. #ICCTech workforce challenges. Not good: Indiana (and much of the Midwest) @MicahLBerman: Great to see @IndianaChamber would be hit hard if the US withdraws from support #Tobacco21. Hope @OhioChamber #NAFTA! Analysis from the @USChamber will soon follow. http://ow.ly/OmTe30h4Utz @CullenHMcCarty: Great comments from @causlander unveils our top legislative Fishers, Indiana Mayor @ScottFadness here at priorities at our 2018 Legislative Preview, @IndianaChamber Tech Policy Summit. We sponsored by @IceMillerLLP. Among them are need computer science as a part of our K-12 policies to enable more jobs to be filled and curriculum! It applies across all fields. ensuring the state’s tax environment is ripe for @brandonjsmith5: @IndianaChamber wants business expansion. #INLegis the state’s business personal property tax Thank you @BrendaBrumfiel1 for joining us at reduced. Legislature took steps to reduce or our 28th Annual Awards Dinner! Brenda was the eliminate that tax for some payers in 2014. winner of our Twitter ticket giveaway. #INAD17 @FishersEconDev: Be sure to read the article Congrats again to our Volunteers of the Year: about @RecoveryForceUS in @IndianaChamber Dave McKinnis, @3_smithey & @Dfaulkenberg latest BizVoice magazine! & thx to all who contribute! @IIB: .@IndianaChamber Salutes 2017 http://ow.ly/Y6mw30h4UCp Award Winners: ow.ly/ee9X30grsJL

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January/February 2018 – BizVoice/Indiana Chamber 5 HR COLUMN HR Transformation Turning Your Team Into a ‘Talent Engine’

EDITOR’S NOTE: Kendra Vanzo was a co-winner of the 2017 Ogletree Deakins Human Resources Professional of the Year award. Nominations are open for the 2018 award with a March 2 deadline (www.indianahrconf.com/award). For years, human resources (HR) professionals have worked hard to legitimize our function by forging partnerships with leaders throughout the organization. During most of my career, being known as a “strategic business partner” has been viewed as the goal and most significant achievement of the HR function. Today, being an effective strategic business partner • Find ways to measure your internal and external within the organization is no longer enough. In order talent pipelines for HR to become a critical driver of business • Employ business development techniques in your Kendra Vanzo performance in 2018 and beyond, it needs to become a talent acquisition function and move from “Talent Engine” that fuels the entire company. requisition-based recruitment to relationship-based recruitment (the active management of your talent Importance of talent culture portfolios should result in less recruitment cost and What does it take to transform an HR department more internal placements) into a true Talent Engine that drives performance? It Such a transformation may require reshaping roles starts with reimagining and redefining your HR team as on your team. Identifying talent managers who can a group of leaders whose primary mission is to improve effectively lead the development of talent strategies for the people capabilities of your company. This means key business units is an important part of this change. recognizing that the most important function of HR is These talent managers will work with business line ensuring that the “right people” are ready. leaders to identify the structure, roles and competencies The right people in an organization are those with required to achieve business objectives. the knowledge, skills and abilities to perform roles that Talent managers determine the unique learning are central to the company’s business strategy. They are needs of the organization and create development not simply capable workers; they are diverse, engaged programs with customized experiences to meet those associates who embody the values of the company. They needs. As a result, they need to be as adept at creating anticipate what will be needed in the future, own their broad-based strategies as they are at identifying careers by actively preparing themselves and know that individual development needs and coaching employees. their contributions will be valued and rewarded. At Old National, we have developed a suite of What enables your organization to attract and foster leadership development programs that start with these self-driven, emerging leaders? The answer is your professional development, progress to emerging leader talent culture. A strong talent culture clearly communicates mentoring and culminate with executive education to associates that they are the owners and drivers of experiences. For example, our university partnership careers (along with coaching from their managers), and program combines business theory, presented by it is also fully supported by the systems and resources of professors, with the practical application of those the company. As the organizational Talent Engine, the theories, delivered by business executives. HR team owns and champions this talent culture. Cross-functional teams made up of the “right people” then apply this learning to a business case and present their Making the transformation conclusions to the CEO and executive leadership team. I once was told you can identify a person’s priorities Mentoring is also a common element across our by looking at his or her calendar. How much of your development programs. Graduates maintain their HR team’s week, quarter and year is spent actively “readiness” by progressing through the various levels, involved in assessing, developing and engaging talent? participating in self-directed alumni programs and then Have you formalized these processes within your are encouraged and empowered to pay it forward by organization? Are your team members adept at facilitating becoming mentors themselves. these discussions? Are you truly a talent champion? Start your transformation by ensuring that formal Indispensable value of diversity talent assessment is a top priority for your team and The final piece of the Talent Engine puzzle involves your company. taking a close look at the profile of your current HR • Create talent portfolios that are actively managed by team. Have you sought out non-traditional HR professionals on your team who ensure that development professionals? Have you considered fostering diversity AUTHOR: Kendra Vanzo is executive vice president plans, succession plans and related rewards packages by recruiting HR team members who bring experiences of associate engagement are in place to meet the needs of employees and the from outside HR and outside of your industry? and integration for Old organization At Old National, we are fortunate to have Carrie National Bancorp. Learn more • Conduct workforce planning to identify future Ellspermann as our chief talent development officer. at www.oldnational.com staffing needs Continued on page 18

6 BizVoice/Indiana Chamber – January/February 2018 Past Winners 2017: Cari Kline, SPHR, Grundfos Americas Corp. Kendra Vanzo, Old National Bancorp 2016: Lisa Price, J.D., KAR Auction Services, Inc. 2015: Anita Bunten, Indiana Farm Bureau Insurance Company LaVonne Cate, Federal Home Loan Bank of Indianapolis 2014: Charles Young, hhgregg 2013: Jill Lehman, SPHR, Ontario Systems

OGLETREE DEAKINS HUMAN Presented by: RESOURCES PROFESSIONAL OF THE YEAR AWARD Presented at the 54th Annual Human Resources Conference & Expo

NOMINATION FORMS ARE AVAILABLE; DEADLINE MARCH 2, 2018 For more information and application please visit: www.indianachamber.com/awards

January/February 2018 – BizVoice/Indiana Chamber 7 GUEST COLUMN Manufacturing Truth Insights From an Industry Veteran

Consider this: Deloitte and the Manufacturing Institute recently reported that, over the next decade, nearly 3.5 million manufacturing jobs will likely need to be filled. However, in that same report, it’s predicted that nearly two million of those jobs will go unfilled. Why? The manufacturing skills gap, which is linked Spreading the word and rallying government to the lack of STEM (science, technology, engineering leaders, though, can only take us so far. The bright and mathematics) skills among workers – fueled by a future for manufacturing involves new technologies that decline of technical education programs in high schools provide customers with shorter delivery cycle times and as well as a lack of interest in the manufacturing higher quality. It is imperative to have employees who industry by today’s youth. have not just the desire, but also the knowledge, It’s easy to point to the stereotypes of manufacturing expertise and capability to run, manage and maintain Chris E. Muhlenkamp sweatshops portrayed by Hollywood as generating a such tools. sense of perceived negativity that has not been overcome by the manufacturing industry. But it’s more than that. Talent strategies Stories and firsthand accounts have been passed through This requires additional investments from manufacturers families regarding less-than-desirable conditions of – in our employees, in skill development, and in tools factory work ranging from long hours to repetitive, and equipment. I have supported a number of initiatives mindless contributions. to positively impact the continued development of As someone who has spent nearly 40 years in the factory workers that other manufacturers could use to industry, I can say emphatically that this is not the make a positive impact. Those include: manufacturing I know. In reality, many manufacturing jobs • Comprehensive orientation programs such as lean today are centered on employee empowerment, training and product training engagement and innovation. Perhaps the problem is that we, • Internal, state-approved skilled trade apprenticeship as manufacturers, have not effectively communicated this. programs AUTHOR: Chris E. • Tuition reimbursement opportunities for skill and Muhlenkamp is senior vice Show your stuff workplace enhancements president of global That’s why I encourage fellow manufacturers to • Partnerships with local vocational and technical operations and integrated supply chain for Allegion, a open their doors to give students and educators the schools to develop trade-specific curriculum leading global security opportunity to engage with their skilled and talented • Transition of part-time and temporary employees to products and solutions workforces. In Indiana and across the U.S., companies full-time positions provider. Muhlenkamp is like Allegion hold open houses regularly to highlight • Paid internships for technical skills training and responsible for Allegion’s modern-day manufacturing and career opportunities. education students global production capabilities Government and civic leaders can also be invited • Loaded, valued-added co-op and internship assignments and global supply chain to see, firsthand, what manufacturing looks like today. • Application for local and state training funds to relationships. The company, In fact, manufacturers can use facility tours and enhance employee skills education an Indiana Chamber employee roundtables as opportunities to communicate I firmly believe manufacturing in the U.S. is at a Cornerstone Partner, the need for our nation’s leaders to continue delivering crossroads. Informing and inspiring the next generation employs more than 1,200 people in Indiana, with on manufacturing priorities to boost the economy and of manufacturing employees will require a great deal of over 600 employed at its bolster our workforce. To get where we want to be, work and effort, but it’s a worthy cause. Manufacturers two manufacturing government needs to invest more resources in STEM must continuously commit to combating the skills gap operations. Learn more at education and prioritize initiatives that will work as well as investing in the future of the country’s www.allegion.com toward closing the skills gap. workforce and in the communities in which we work.

8 BizVoice/Indiana Chamber – January/February 2018 A State of Transformation

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January/February 2018 – BizVoice/Indiana Chamber 9 GO TO IT

April 2018 • OSHA Training for Maintenance Employees, 17 Propel Your People in • Supervising and Managing People January and Beyond Workshop, 19-20 • Cyber Security and Data Protection Seminar, Jumpstart professional and personal development in 2018 with two new leadership TBA conferences dedicated to developing your employee’s emotional IQ and sense of accountability. • Federal Tax Update, TBA Want to transform your team’s results? Increase awareness of the factors that influence your behavior? Register for Accountability Mindset (January 30). Attendees discover the May 2018 power of personal mindset and its impact on leadership. Mindset is a choice! • 54th Annual Human Resources Next up is Emotional Intelligence Impact (January 31). What is emotional intelligence Conference & Expo, 7-9 • Environmental Permitting and Reporting and why is it important? Learn how to grow trusted relationships and impact your Conference, 15-16 organization’s results by inspiring and leading others through authenticity, coaching, insight • Forklift Safety: Train the Trainer, 22 and innovation. • OSHA Recordkeeping & Reporting, 23 Register online at www.indianachamber.com/conferences or call Nick at (800) 824-6885. • Annual Worker’s Compensation Attend both programs and save $99! Conference, 24

June 2018 The FMLA: 2018 Style Workplace Harassment Prevention • I-69 Summit (Bloomington), 6 January 24 Seminar • Annual Family Medical Leave Act Seminar, TBA Indiana Chamber Conference Center February 27 • Hear an in-depth overview of the FMLA Indiana Chamber Conference Center July 2018 • Participate in a Q&A with the speakers • Emphasizes prevention policies, training and • Advanced HR Management Seminar (French • Chamber member discounted price: $399 accountability for employers Lick), 12-13 • List price: $499 • Topics include investigation preparation, • Indiana Wage & Hour Law Seminar, 26 best practices and pitfalls • Indiana Conference on Energy Forklift Safety: Train the Trainer • Chamber member discounted price: $399 Management, July 31-August 1 January 25 • List price: $499 Indiana Chamber Conference Center August 2018 • Ensure your in-house forklift trainers are up Remaining Union-Free Seminar • 2018 Indiana Tax Conference, 10 to date and in compliance March 6 • OSHA 10-Hour Course for General • Take the guesswork out of what constitutes a Undisclosed location Industry, 21-22 qualified trainer • Gain knowledge on establishing effective • OSHA 30-Hour Course for General • Chamber member discounted price: $399 communication programs Industry, 21-24 • List price: $499 • Ideal for CEOs, presidents, HR managers, hospital administrators, plant managers and September 2018 Supervising and Managing People supervisors • 2018 Indiana Health & Wellness Summit, 6-7 Workshop • Chamber member discounted price: $399 • Employee Benefits Update Seminar, 12 February 15-16 • List price: $499 • Safety Leadership Principles, 18-19 Indiana Chamber Conference Center • Supervising and Managing People, 20-21 • Emphasizes hands-on training 24th Annual Employment Law Seminar • Discover how to address conflict in the March 9 October 2018 workplace Hyatt Regency Indianapolis • Forklift Safety: Train the Trainer, 11 • Chamber member discounted price: $599 • Stay updated on the latest changes • Remaining Union-free Seminar, 17 • List price: $699 • Highlights tangible actions to implement in • Model Employee Policies Workshop, 18 your office • 2018 Indiana Environmental Conference, OSHA 10-Hour Course for General • Chamber member discounted price: $399 22-23 Industry • List price: $499 February 20-21 November 2018 Indiana Chamber Conference Center 2018 Indiana Safety and Health • TBA • Equip yourself with the knowledge you need Conference & Expo to stay in compliance March 12-14 December 2018 • Learn the latest OSHA regulations Indiana Convention Center • Supervising and Managing People, 6-7 • Chamber member discounted price: $499 • Attend the most comprehensive safety • List price: $599 conference in Indiana • Choose from more than 75 education Schedule subject to change. To view latest OSHA 30-Hour Course for General sessions with cutting-edge topics program listings, please visit Industry • Features 10 training tracks, including all- www.IndianaChamber.com/conferences February 20-23 new construction safety and technology Indiana Chamber Conference Center sessions For more information, or to register, call • Protect your business from costly OSHA • Keynote speakers: Kina Repp, workplace (317) 264-6885, (800) 824-6885 or visit fines! safety advocate, and Sammy L. Davis, www.indianachamber.com. Group discounts • Ensure you have trained staff at your Congressional Medal of Honor recipient available for many Indiana Chamber workplace • Various pricing options available conferences. All programs take place in • Chamber member discounted price: $899 (www.insafetyconf.com) Indianapolis unless otherwise noted. • List price: $1,099 For sponsorships and exhibit opportunities, contact Jim Wagner at (317) 264-6876.

10 BizVoice/Indiana Chamber – January/February 2018 Indiana’s largest private family-owned bank.

Michael E. Schrage President/CEO Centier Bank

1-888-Centier • Centier.com Member FDIC January/February 2018 – BizVoice/Indiana Chamber 11 BUSINESS RESOURCES

Indiana and Federal Mandatory Poster Sets New sets include updates made in August 2016. This set of three laminated posters includes all mandatory Indiana and federal employment postings. Our poster sets feature next-day shipping and include the newly-revised FLSA and EPPA posters. Price: $48

Employment Law Environmental Model Employee Handbook Compliance Handbook Policies for Indiana (Thirteenth Edition) (Ninth Edition) Employers This comprehensive A plain-English reference (Seventh Edition) handbook helps employers guide containing the most Designed to assist determine which Indiana up-to-date information employers in creating an and federal laws they are regarding employers’ employee handbook. required to comply with and environmental rights and Contains numerous sample to understand their rights and responsibilities responsibilities under Indiana and federal law. policies with legal commentary to assist under these laws. Authored by Faegre Baker Find the latest agency contacts and resource employers in understanding what policies can Daniels LLP. Price: $149 links. Authored by Bingham Greenebaum Doll increase employee morale and prevent LLP. Price: $149 employment lawsuits. Authored by Bose, McKinney and Evans LLP. Price: $109 Indiana Employer’s The Supervisor’s Guide to Wage and Handbook (Second Take the Headache Out of Workplace Hour Issues (Fourth Edition) Posters Edition) Supervisory employees play Throughout the year, we get many calls from Easy-to-read text that includes a critical role in any Indiana employers concerned about workplace everything employers need business. The Supervisor’s poster updates because they received a notice to know about their Handbook explains from some company trying to make a buck. responsibilities with regard supervisors’ rights and Signing up for our poster subscription service to wage and hour law. Updated topics include responsibilities under state and federal law and means you will be sent new workplace posters wages in the “gig” economy; independent answers a variety of questions related to only when a MANDATORY change is made to contractors; working time in a world of wireless employee issues. Authored by Faegre Baker either state or federal postings. The service gadgetry; Common Construction Wage law Daniels LLP. Price: $99 itself is free; you will just be invoiced for $48 repeal; Equal Pay Act update; wage garnishment per set (or just $40 per set for Indiana Chamber changes; computer-related wage laws and a members). Call (800) 824-6885 to sign up! child labor law update. Authored by Ice Miller. Price: $95 Indiana Chamber members receive a 25% discount on select publications. Indiana Guide to Hiring and Firing NEW! Many of our books are now available as ePubs. (Sixth Edition) A clearly written manual Visit www.indianachamber.com/publications and click on “Electronic Subscriptions.” that outlines employers’ legal responsibilities during the employment process, RESOURCE: For more information, or to order: (800) 824-6885, [email protected] from interviewing to or www.indianachamber.com/publications termination of employment. Authored by attorneys from Barnes & Thornburg LLP. Price: $109 When ordering, please use priority code: BV If your company is interested in advertising opportunities in the Indiana Chamber’s regulatory compliance manuals, contact Tim Brewer at (317) 496-0704

12 BizVoice/Indiana Chamber – January/February 2018 DESIGN. BUILD. DELIVER.

Kimball International creates design driven, innovative furnishings sold through our family of brands: Kimball, National, and Kimball Hospitality. Our diverse portfolio offers solutions for the workplace, learning, healing, and hospitality environments. Dedicated to our Guiding Principles, our values and integrity are evidenced by public recognition as a highly trusted company and an employer of choice. “We Build Success” by establishing long-term relationships with customers, employees, suppliers, shareowners and the communities in which we operate.

1600 Royal St Jasper, IN 47549 | www.KimballInternational.com January/February 2018 – BizVoice/Indiana Chamber 13 IN PICTURES

28TH ANNUAL AWARDS DINNER

A large crowd (more than 2,000 people) gathers for the Indiana Chamber’s 28th Annual Awards Dinner. Award winners (from left): Tom Easterday, Rep. Ed Soliday, Scott McCorkle and Goshen (represented by Mayor Jeremy Stutsman). Additional photos at www.flickr.com/indianachamber.

TECHNOLOGY AND INNOVATION POLICY SUMMIT

Information and analysis on six policy topics was featured at this second annual event. Karl LaPan (right) of the Northeast Indiana Innovation Center discusses funding for certified technology parks.

14 BizVoice/Indiana Chamber – January/February 2018 FOR YOUR BUSINESS – Commercial Loans Treasury Management Corporate Credit Cards with Rewards

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January/February 2018 – BizVoice/Indiana Chamber 15 JUST REINCE From Wisconsin to the West Wing

By Rebecca Patrick

Then-White House Chief of Staff Reince Priebus takes the stage at the Conservative Political Action Conference in 2017 (Michael Landon photo, licensed under CC BY 2.0).

The last name isn’t necessary – say “Reince” and being President at the time. And local officials that encouraged young people to get involved in politics in the local party made a big most everyone knows who you are referring to. difference in my start.

From late 2015 through last summer, he was a “From there, I got involved in (current U.S. House Speaker) Paul frequent media presence and even topic: first as the Ryan’s efforts (for Congress), and he and I became very close friends. Republican National Committee (RNC) chairman, I was his chairman for four or five years. I eventually went from state treasurer to state chairman in Wisconsin. And by then was general then as President Trump’s first chief of staff. counsel of the Republican National Committee. And then ultimately chairman of the RNC for six years.” On February 13, Reince Priebus will share his unique experiences at the Indiana Chamber’s 2018 What was your proudest achievement in running the RNC? ® RP: “Building up the massive organization and building a data, Legislative Dinner. As a sneak peek, BizVoice infrastructure and turnout model that became the blueprint for magazine caught up with him in late November. national parties. It’s what Donald Trump was able to tap into in order to be victorious. The Trump campaign didn’t have the massive What led you to a career in politics and to the Republican infrastructure we built, but they had the fortune of a national party Party in particular? that had its act together. RP: “The inspiration was my grandfather. Half of my family lived in Greece; my mother is Greek. My Greek grandfather loved politics and “You look at the DNC (Democratic National Committee); they had everything about it; (he) followed it every day. But he also loved nothing. Hillary Clinton had nothing to tap into. The theory was that everything about the United States. I was captured by that because he Hillary Clinton was going to be able to tap into something big once it loved every little crumb and morsel of this country. That sort of became clear she was going to be the nominee, which was supposed to pressed upon the rest of us how lucky we were to be here. So that’s be very early. The problem is they never got around to building really what started my interest in politics. anything around her because they ended up in a dogfight with (Sen.) Bernie Sanders. “Then at a local level in Kenosha, Wisconsin, I got involved in the Republican Party. It probably had a lot to do with Ronald Reagan “There was no Obama data operation, no field operation for her –

16 BizVoice/Indiana Chamber – January/February 2018 2018 Legislative Dinner Speaker

feeling and could revolt against at the time. Obamacare didn’t take effect until (the following year). There wasn’t as much of a backlash against Obama as people ended up feeling in 2013 and 2014 … this idea of government and promises and no one standing up for the American worker. That theme didn’t start metastasizing until (the) 2014 (election), which we did very well in, and then ultimately in 2016.”

At what point on election night did you believe Trump had the victory? RP: “We had pretty good data going through the weekend. The RNC data operation was an enormously accurate system in predicting voter turnout and helped us figure out we had a very good shot at winning.

“Personally, I was pretty nervous until I realized that we were within striking distance moving into the Florida Panhandle, Pensacola area, then that’s when we knew things were starting to look up. And (the Democrats) were not making up any ground in North Carolina. I knew from the absentee ballot Priebus says being the President’s chief of staff is the “hardest job in Washington”, but he is grateful for program that Ohio and Iowa were a done the unique experience with the Trump administration (bottom: official White House photo by Shealah deal (for Trump) before Election Day. Craighead). “It was only a question of what was going to happen in Michigan and Wisconsin. And when (Sen.) Ron Johnson in Wisconsin was feeling very, very good at about 9 o’clock, we knew the President would run ahead of Hillary. It all started happening around 9:30- 10 o’clock when everything was going in the right direction.”

What was it like working for the President? RP: “(I recall) especially initially walking into the Oval Office with the President and looking around and realizing in real time the enormous responsibility there would be in doing everything.

“I knew President Trump for years before he decided to run. I think I understood him a little bit more than many people. When we went through the presidential primary, you there was nothing. We had an RNC that presidential election as I envisioned it to be – can’t help but get to know people. By the everyone understood as being one of the main and not what it became in 2016. I think that time he became President, I knew exactly who reasons President Trump won, and on the bigger problem though was that I was dealing with and the person I became election night he mentioned it from the (nominee) Mitt Romney wasn’t able to friends with during the years of interaction. I podium and surprisingly brought me up there capture the American electorate at a time knew his style and I understood what I was to talk about it.” when the electorate was fatigued enough to dealing with when I accepted the job.” move on from an incumbent president. From your point of view as RNC If you could do anything different chairman, what were the significant “Obama himself, the Obama economy and about your time as chief of staff, what differences between the 2012 and 2016 Obamacare were sitting in front of the would it be? presidential elections? American people as a campaign issue. But it RP: “There are always going to be things you RP: “In 2012, the RNC was still coming was only a campaign issue in theory in 2012; wish were different, but that’s not the way along and wasn’t fully prepared for the it wasn’t a campaign issue people were

January/February 2018 – BizVoice/Indiana Chamber 17 life is and the way things were laid out. I was given an opportunity, and I made the best of the opportunity. I had an incredible time. I’m still very close to the President and the folks in the West Wing. I speak to them often.”

What are the craziest experiences you’ve had in your political career? RP: “One was digging the RNC out of debt in 2011. When I walked in the door, we were $26 million in the hole, and we were going to have a hard time making payroll. That was surreal.

“The second thing was the 17-person Republican primary fiasco that I had to manage and do it in a way that was fair and honest and open for everyone to see. That was an amazing challenge.

“The third thing would be just the hardest job in Washington, D.C., which would be the Priebus speaking at the final Republican Party debate, hosted by Fox News, before the 2016 Iowa (President’s) chief of staff – the management caucuses at the Iowa Events Center in Des Moines (Gage Skidmore photo, licensed under CC BY 2.0). and organizational challenge that brought about. When you look at a good man like (my successor) General John Kelly, who said interesting, likeable guy. I know people can on the corporate group at Michael Best & the other day in a press briefing that this is see it, but I think it gets clouded by some of Friedrich in Milwaukee. And I’m back there the hardest thing he’s ever done in his life – the media coverage. It’s also complicated. It’s working with clients that need help both and he’s a four-star general! That says a lot.” not a simple process in dissecting the legally and strategically in either Washington administration and the daily course of events. or elsewhere. What do you want Hoosiers to know about President Trump? “President Trump doesn’t care about pushing “I’m loving spending time with my wife and RP: “I don’t think he’s getting enough credit the envelope. He doesn’t have a problem kids – Jack is 12 and Grace is 7. It was a great for the things that are being done to improve with controversy, doesn’t have a problem time for me to get under the radar screen for the business climate and the economy in the with going through ups and downs to achieve a few months.” United States. If you look at over 800 job- his ultimate goal. He’s not going to back killing regulations that have been eliminated down to turn into a boring, predictable Would you run for office yourself? ... an economy that’s on the move, you see person. He likes to live on the edge. RP: “I’ve spent way too much time in my life the stock market business growth, employment probably chasing and climbing in politics. So, is moving in the right direction. The next “He also likes to get things done and he’s I think if I were to ever run for office it step is tax cuts so that wage growth can move patient, but he’s not patient to a fault.” would be only after time spent with the forward. family and making a decent living first. So, if What have you been up to since something fun and interesting comes along “If people got to know the President, they’d leaving the White House? later, I would definitely consider running for see a pretty gracious, personable, fun, RP: “I’m president of my law firm that I was office, likely back in Wisconsin, which is involved with for 12 years. I was a litigator always going to be home for me.”

RESOURCE: Purchase tickets to the February 13 Indiana Chamber Legislative Dinner at www.indianachamber.com/specialevents

HR Transformation Continued from page 6 She previously served as president of our wealth management division and actively engaged in keeping themselves “ready” for the next and brings the strategic thinking and business perspective to our HR opportunity. team that can only be gained through executive experiences. The Over the past 30 years, human resources has successfully moved from addition of a former business line leader to your HR team provides being an administrative function to having a C-suite seat at the additional credibility and leadership depth. leadership table. Let’s not be content with our progress! Challenge Team members from outside your industry can also be a valuable yourself to continue this transformation by making your HR resource as they often deliver fresh approaches, out-of-the-box department a true Talent Engine that drives your company’s long-term thinking and new ways of addressing challenges. Be on the lookout for sustainability. professionals from all fields who are passionate about talent management

18 BizVoice/Indiana Chamber – January/February 2018 Tuesday, February 13 6:00 pm - 9:00 pm | Indiana Roof Ballroom, Indianapolis

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January/February 2018 – BizVoice/Indiana Chamber 19

LegDinner-BizVoiceAd.indd 1 11/17/17 10:01 AM 2018 Legislative Preview Legislative Outlook Chamber Outlines Top Priorities

By Rebecca Patrick

Closing the skills gap to enable more jobs to be curriculum. … We can’t lay that down as an unfunded type of mandate. filled and ensuring the state’s tax environment is ripe “It (a computer science requirement) will help prepare the for business expansion are top priorities for the workforce for the jobs we’re seeking to come to the state of Indiana.” Indiana Chamber of Commerce in the new legislative House Speaker Brian Bosma (R-Indianapolis) adds, “It’s absolutely critical. Overseas, they are much more focused on this intersection session. between man and machine. … We’ve got to have these skills in place, and they’ve got to be in place in every school, not just charters and These and other initiatives were initially announced those public schools focused on tech.” at the organization’s 2018 Indiana Legislative Additionally, the Indiana Chamber wants to see more coordination between the state’s education and workforce programs Preview, where General Assembly caucus and with the business community. Auslander offers: “This would result representatives also weighed in on those matters in more Hoosiers being educated, trained and subsequently employed and what other policies may take center stage. in higher-wage jobs that are available but too often are going unfilled.” Scott Pelath (D-Michigan City), who was the House Minority Readying the workforce Leader the last five sessions, echoes that call. “As we increase the number of jobs in the tech sector, it becomes “We absolutely need to do a better job of talking to the even more important to have additional STEM (science, technology, employers themselves. They are the ones who know not (only) what engineering and math) offerings for K-12 students – especially jobs they need today but what jobs they are going to need five years computer science,” states Caryl Auslander, Indiana Chamber vice from now. president of education and workforce development. “I don’t think we do a good enough job of allowing that type of “Currently there is not a computer science requirement for feedback to percolate into public policymaking. Then, we have all graduation; we believe that needs to change. All students should have these disjointed workforce development silos; we’ve tried to some access to fully explore skills like this that are in demand.” degree to break them down, but they are still there.” Auslander notes that these goals align with Gov. Eric Holcomb’s Bosma labels workforce development shortcomings as one of the agenda item to have all schools offer computer science courses by 2021. top two most pressing issues facing the state (along with the drug Senate Minority Leader Tim Lanane (D-Anderson) agrees with epidemic) and “will work closely with the Governor, who has a strong the push. “I think it’s a smart move, but the state has to provide the agenda in this regard.” resources to allow local school corporations to engage in that type of

The 2018 Indiana Legislative Preview featured a panel discussion with state lawmakers, including Sen. Brandt Hershman (far left) and Sen. Tim Lanane. Then- House Minority Leader Scott Pelath (far right) explained his decision to leave the post and not seek re-election, as House Speaker Brian Bosma and the Indiana Chamber’s Jeff Brantley look on.

20 BizVoice/Indiana Chamber – January/February 2018 Tax status defined Caryl Auslander, vice president of education and workforce development for the Indiana Chamber, Another area of focus for the Indiana unveils the organization’s top policy issues for the 2018 General Assembly. Chamber is to clarify how taxes should be calculated for software-as-a-service (SaaS) and cloud-based services; it’s also included in the Governor’s plan. “This item is important not just for tech companies, but for those who do business with them. There is too much inconsistency and ambiguity relating to the exempt status of software services,” explains Bill Waltz, vice president of taxation and public finance for the Indiana Chamber. “Having clarity around that would help to grow Indiana’s software development economy, as well as prevent onerous taxation of other necessary business expenses throughout the business community.” Senator Brandt Hershman (R-Buck Creek), the majority floor leader, understands why this issue has come to the forefront. “It’s indicative of the fact that tax policy needs to be examined and changed in light of changing conditions within the economy and Indiana Chamber’s Priorities technology. • Making computer science coursework a high school graduation requirement for Hoosier “Software has changed from where you students go to the store and buy a physical product, a • Better alignment of the state’s various education and workforce programs, with overall good, which would clearly be taxed, to efforts inclusive of business needs where it’s becoming much more of a • Clarifying software-as-a-service tax-exempt status for software and cloud-based businesses subscription-based online model that is • Maintaining and enhancing our attractive tax climate, with particular attention on reducing arguably defined as a service,” he explains. government reliance on business personal property tax, thus lessening the burden to businesses “My opinion is they make a very good • Transparency in asbestos trust claims so it’s known if a claimant has already been awarded case to not tax software because it is a service.” money from a trust before a monetary judgment for the same health issue is made against the business Smoking, townships and water • Decreasing the state’s smoking rate through raising the legal age limit for smoking and There are several repeats on the Indiana purchasing cigarettes, as well as removing the state’s special protections given to smokers Chamber’s priority list, but most come with • Increased water resources management and, ultimately, a statewide water policy to assure new twists. future resources and our economic prosperity With the upcoming session being a non- • Meaningful township government reform, with a focus on township mergers in low- budget year, there will not be a push for a population areas cigarette tax increase to reduce the state’s • Establishing a state work share program, which will allow employers to maintain a skilled smoking rate. Instead, the focus will be on stable workforce during temporary downturns raising the legal smoking age from 18 to 21 and enabling employers to ask prospective employees if they are smokers. Those are reasonable asks given the finally see some movement on township “Already this year, several states have climate, according to Pelath. government reform by targeting items where taken the step to raise the age limit, and for “Evidence clearly shows that we are there may be some common ground with good reason. Data has shown that if you can going to have to continue to reduce smoking groups previously opposed to more wholesale stop or discourage the smoking habit early, if we are ever going to have any hope at efforts,” Waltz states. “This includes reducing it’s more likely to have an impact,” says Mike containing health care costs. That’s going to the number of townships through mergers in Ripley, Indiana Chamber vice president of fit hand-in-hand a little bit with what we may low-population areas and providing enhanced health care policy and employment law. have to do on health insurance. oversight of fiscal matters.” “Smoking is also the only voluntary “I don’t know a lot of other places to go Another area of consensus is effective water action that has special protection in Indiana’s except for this one thing (age limit) that has resources management, with the Indiana Chamber, constitution during the hiring process. We shown to be able to reduce smoking rates Governor and legislative leaders recognizing both don’t agree with that. Employers foot the bill over time. There is clearly an interest in the pending crisis and the impact water has for the bulk of coverage costs for their doing it; the day may come where we are not on the economy. Bosma predicts more policy workers, so they should be able to learn going to have a choice (but to do it).” groundwork will be laid in the 2018 short upfront if a potential employee is a smoker.” The Indiana Chamber also “hopes to session that will set the stage for future action.

RESOURCE: A detailed rundown of the Indiana Chamber’s 2018 key legislative initiatives (top priorities and additional areas of focus) is available at www.indianachamber.com/priorities

January/February 2018 – BizVoice/Indiana Chamber 21 2018 Legislative Preview Future Economy Critical Role of Tech, Innovation Policies

“Indiana will be a global leader in innovation and economic opportunity, where enterprises and citizens prosper.” – Indiana Vision 2025

EDITOR’S NOTE: The following summarizes the impact of the key policy positions of the Indiana Chamber’s Tech Policy Committee. The good news is that our state is largely in control Transition: Adapting to the IoT economy of its own destiny in the effort to achieve the mission The Internet of Things (IoT) is the basis of the next economic revolution. This is where matching longstanding state strengths with of Indiana Vision 2025. Just as our history is filled emerging technologies is so essential. All available mechanisms – including with leadership in the agriculture and manufacturing tax policy, economic incentives, collaborative support and promotion economies, Indiana can and must – with the proper of these efforts on national and international levels – should be used. policy and programs – be a dominant player in the Tomorrow: Accelerating entrepreneurship and job growth innovation economy of today and tomorrow. Entrepreneurship is the best way to create jobs and economic opportunity. As “old” jobs wither away, we must enable “new” ones. It’s that glorious past, in fact, that helps position us well for the Start-up companies account for 3% of total jobs, but almost 20% of future. It’s not a matter of building a new economy but adapting those job creation. traditional agriculture, manufacturing and logistics strengths. Those Unfortunately, Indiana has not fared well in recent state rankings who embrace the new technologies the most will realize the greatest that measure entrepreneurial activity and venture capital investments. benefits for their companies, workers and communities. The 2017 Indiana Vision 2025 Report Card finds Indiana 44th for new business creation and 35th for venture capital invested per capita. To Talent: Education and the workforce improve these results and to build tomorrow’s jobs, we support the Talent gaps are currently impacting all businesses, including those following: in the innovation sector. Solutions must be both short and long term. • Encourage and expand investment in promising Indiana opportunities. It’s essential that young people are better prepared for their future. A key step is expanding the Venture Capital Investment Tax Credit Efforts to do so should include: above the current $12.5 million annual cap and making the credits • Rapidly phase in computer science requirements for all schools transferable to broaden the investment pool. This will supplement • Have an information technology component as a high school the recently-created $250 million Next Level Fund and form a diploma requirement powerful combination for emerging Indiana scale-up companies. • Provide technology teachers the tools they need through increased • Increase business development using federal R&D funds. Indiana lags professional development other states in securing Small Business Innovation Research (SBIR) • Further incorporate digital technologies into the education delivery system Phase I and Phase II grants and Small Business Technology Transfer Our colleges and universities generate many talented graduates (STTR) awards. Aggressive promotion and expansion of the state’s each year who possess the skills to fill positions created in Indiana’s matching program would encourage the participation and success of innovation-based businesses. Too many are leaving the state. Keeping more Indiana businesses. and retaining more of them increases our talent pool, helps drive • Increase the conversion of Indiana research into marketable products business innovation and makes Indiana a stronger global competitor. and more efficient processes for Indiana companies. Enhanced technology Increased productivity and the technology transformations already transfer from resources such as Crane, our public and private universities, taking place have displaced many Indiana workers. Effective retraining, as well as businesses, to the marketplace is needed for the success of in a clearly defined system that works well for both individuals and existing companies and to increase the number of start-ups. employers, is required to help eliminate the thousands of unfilled jobs • Continued financial support of Certified Tech Parks (CTP) that have that require technical skills. been successful and reached the funding cap. Once the initial $5 million cap is met by a CTP that is in good standing with the certification Taxes: Clarity and parity on software-as-a-service (SaaS) requirements/metrics, the CTP should have the opportunity to Indiana has made a significant series of improvements to its tax capture further increments in the amount of an additional $5 million climate during the past 15 years. These have been based, at least in part, every four years. The current funding formula should remain intact on making sure Hoosier companies are not disadvantaged in relation to to ensure each CTP “earns” the funds from the designated activity their competitors in other states. The same proactive policies are within the CTP. required regarding taxation of SaaS and other cloud-based services. While some of these policies carry a certain amount of risk, the Indiana has a growing base of software development firms. But greater peril is doing nothing. Indiana must evolve its economy to be a these companies, like others in the innovation space, are more leader for generations to come by building on recent momentum generated portable than traditional businesses and can easily relocate to more by a stronger business climate and regional successes. By adopting favorable tax climates. SaaS and cloud-based services should remain these, and other pro-growth policies, Indiana communities, companies exempt from sales tax. and citizens will have that opportunity to more fully prosper.

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ReidHealth17Days.org • ReidHealth.org/careers January/February 2018 – BizVoice/Indiana Chamber 23 2018 Legislative Preview

REGULATORY RAMIFICATIONS PROGRESS QUIETLY ADDING UP IN D.C.

“Some of the most important actions this “A majority of these policies originally had circumvented Congress and amounted to attacks on business, industry and, ultimately, the workforce.” past year in Washington have occurred At the start of 2017, the Indiana Chamber sought input from its members on outside of Congress – through reversing what were the most onerous items that fell into this category. The organization course on federal rules, regulations and subsequently submitted a list to Vice President Mike Pence and the Indiana congressional delegation that included more than 15 policies for repeal consideration. executive orders that were affecting the “We are pleased that most of the areas identified have seen positive steps taken bottom line for businesses and hampering to rectify the harm that was being done or stop a detrimental initiative from going expansion and job growth,” declares into effect,” Brinegar adds. “We will continue to push for more progress throughout 2018.” Kevin Brinegar, Indiana Chamber Below is the full Indiana Chamber list of “repeal” requests and any action taken President and CEO. by the President, a federal agency or the courts as of mid-December:

Environment and Energy attorneys general led EPA to withdraw the delay. The rule went into An EPA regulation setting limits on the carbon dioxide effect October 1, 2017. EPA is currently investigating ways to ease emissions from newly built coal- and natural gas-fired power implementation of the standard and provide flexibility for state and plants, based on the amount of electricity they produce. local governments that must develop plans to meet the new ozone Impact: Dramatic increase in energy prices for business and requirements. residential consumers with minimal improvement in air quality. The latest: The EPA is currently in the process of reviewing the New New definition of Waters of the U.S. (WOTUS)/Clean Water Source Performance Standard for coal- and natural gas-fired electric Act that gives the EPA greater jurisdiction – aka makes small generating units. EPA Administrator Scott Pruitt signed a measure to waterways like wetlands and ponds subject to federal rule. repeal this regulation in early October 2017. Impact: Erodes a state’s ability to define jurisdiction within its bounds. Also, the case-by-case determination creates significant Clean Power Plan, which mandates a cut in the entire power uncertainty for the regulated community. sector’s emissions. The latest: In June 2017, the Trump administration announced the Impact: Dramatic increase in energy prices for business and move to rescind WOTUS. residential consumers with minimal improvement in air quality. The latest: President Trump signed an executive order to repeal the Fracking rule from the Interior Department’s Bureau of Clean Power Plan; in October 2017, Pruitt formally proposed a new Land Management designed to make it more difficult to rule to dismantle the program. conduct hydraulic fracturing for the extraction of oil or gas (fossil fuel). EPA ozone regulation issuing new National Ambient Air Impact: Risks significant increase in natural gas prices and progress Quality Standards (NAAQS) for fine particulate matter (PM with energy independence (fracking led to the major price drops seen 2.5) (effective Oct. 24, 2016). in the last decade). Impact: Under an increasingly tighter and more costly ozone standard, The latest: The fracking rule is slated to take effect pending an businesses and industries may be forced to relocate out of nonattainment appeals court decision (expected by the end of 2017). Meanwhile, the areas or relocate overseas to countries with less strict environmental Bureau of Land Management is reportedly working on issuing a regulations simply because they cannot afford to operate under such rescission plan to formally repeal the rule. extreme conditions in the U.S. The latest: The Trump administration sought to delay this regulation Army Corps of Engineers block of the final portion of the from going into effect; however, lawsuits filed by nearly 20 state Dakota Access Pipeline (93% already complete), which

24 BizVoice/Indiana Chamber – January/February 2018 threatens energy infrastructure investment if approvals can for companies involved in the construction industry, in order to allow be so arbitrarily revoked. the agency to conduct additional outreach and provide educational Impact: Creates dangerous precedent of a federal entity reversing materials and guidance for affected employers. Enforcement of this course near the end of an approved project. standard began on October 23, 2017. Requirements for other industries, The latest: President Trump approved a final permit for the pipeline. including manufacturing, must be met starting June 23, 2018. Then, a U.S. district judge ordered federal regulators to conduct a new environmental review (deeming the first one inadequate); the OSHA recordkeeping and reporting rule requiring certain pipeline is still operating while that is taking place. companies with 250 or more employees to make all injury and illness data public via electronic forms. (Lawsuit filed Finance January 2017 with the U.S. Court of Appeals.) Proposed Consumer Financial Protection Bureau rule seeks Impact: This system doesn’t capture close to all of the pertinent to remove “mandatory arbitration” for financial company information, yet allows OSHA to now cite employers even without an consumers, thereby allowing these customers to seek class- employee complaint. action lawsuits against companies. The latest: OSHA extended the deadline for submitting forms to Impact: Opens up financial institutions to more consumer litigation. December 1, 2017. This provided the affected companies with more time to familiarize themselves with the electronic reporting system, as Rulemaking from federal bodies that oversee banking and well as gave the Trump administration an opportunity to review the other financial institutions that have great bearing on how new electronic reporting requirements before they were implemented. those entities conduct their businesses. (Authority directed by the Dodd-Frank Act; however, rulemaking changes can Labor Relations occur at the agency level.) Overtime rule would double the salary threshold – from Impact: Vast overreach that is costly for these businesses (to comply $23,660 to $47,476 per year – under which most salaried with) and, ultimately, their customers. workers are guaranteed overtime. The latest: In summer 2017, the U.S. Treasury released a report Impact: Immediate payroll hikes for many employers, which could essentially calling for the rollback of Dodd-Frank. Separately, the House jeopardize jobs and business growth. voted along party lines to repeal many of the stricter Dodd-Frank The latest: In September 2017, the Trump administration announced financial reforms, but there has not been similar progress in the Senate. it would not appeal a district court’s ruling that said the government overreached when it expanded the number of people covered. This Recently-finalized Department of Treasury rules (under IRC formally puts an end to the far-reaching overtime rule. section 385) re-characterize certain transactions between related companies, treating the resulting debt as equity Paid sick leave for federal contractors, which requires instead. (Intended to address corporate inversions; effective companies that do business with the federal government to on debt issued after January 1, 2017.) provide their employees with at least seven days of paid sick Impact: Will unfairly reflect the internal operations of businesses, leave each year, including paid leave to allow for family resulting in unjustified taxation. care (effective January 1, 2017). The latest: In summer 2017, the Treasury Department and IRS Impact: Will put another unnecessary and costly burden on smaller issued a 12-month delay of the documentation requirements, which employers in particular. were set to take effect January 2018. (Other aspects of 385 are still effective in 2018.) Federal Acquisition Regulatory Council’s final rule and the Department of Labor’s guidance implementing the “Fair Pay Health and Workplace Safety and Safe Workplaces” executive order, which subjects Orders that support Obamacare. existing and prospective government contractors and Impact: Perpetuates the higher cost of health care premiums for subcontractors to a broad new set of record-keeping, reporting employers and their workers. and compliance requirements or risk blacklisting. Impact: Would result in fewer qualified bids for federal contracts – FDA menu labeling rules requiring restaurants and grocery as well as needless delays and litigation – thereby crippling the stores to list calories for the food they sell. (Provision of contract award process. Obamacare that has previously been delayed; was slated to The latest: President Trump issued an executive order in the spring go into effect May 2017.) revoking the “Fair Pay and Safe Workplaces” executive order. Impact: Puts restaurants, particularly, in an impossible position to fulfill the rule due to menu special orders. Technology The latest: The FDA delayed the implementation until May 2018, FCC net neutrality rule to regulate broadband; 2015 rules but the rule is expected to go into effect then. Rule guidance was require service providers to treat all web traffic equally and released in November 2017. designates broadband like a public utility. Impact: Essentially gives regulatory control of the internet to the OSHA rule to limit workers’ exposure to respirable federal government. One potential unintended consequence is slowing crystalline silica to 50 micrograms per cubic meter of air, down innovation. averaged over an eight-hour shift. (Effective June 23, 2016; The latest: In May 2017, FCC Chairman Ajit Pai initiated a rulemaking companies have one year from that date to comply.) to eliminate the Title II public-utility style designation of broadband Impact: Viewed as unachievable; could drive many foundries and and examine whether to keep net neutrality rules. In late November, construction companies out of business. the FCC formally announced its decision to repeal net neutrality and The latest: OSHA delayed implementation until late September 2017 voted 3-2 to do so on December 14.

January/February 2018 – BizVoice/Indiana Chamber 25 GUEST COLUMN World of Water Time to Move Forward on Resource Plan

Since 2014, when I had the opportunity to work with the Indiana Chamber of Commerce (and many additional stakeholders) on its water resources study, there have been frequent discussions and activities. As we enter 2018, it’s time for additional analysis and actions on this important topic. The in-depth report was titled Water and Economic Development in Indiana: Modernizing the State’s Approach to a Critical Resource. The following was a portion of the recommendations: “Beyond flood conditions, Indiana has never before needed to actively manage water resources. That is no longer true. Changes in water use and natural limits on availability need to be explained to the public. The only way for Indiana to grow economically and demographically is to manage the critical resource that supports industry, power generators, ecosystems, agriculture and drinking water supplies. Jack Wittman, Ph.D. “Failure to properly plan for increasing demands in growing parts of the state may create significant water supply challenges. Educating farmers, local government, conservation and business leaders on the need for responsible water planning and use is a necessary step to long-term water security in Indiana.” Some progress on collecting additional data has taken place in subsequent legislative sessions, with Sen. Ed Charbonneau (R-Valparaiso) leading the way on those efforts. While that is a positive step, not much has changed in the way the agencies involved manage water resources.

Looking ahead Recently, however, Gov. Holcomb included water in his list of priorities for the coming legislative session. The state is working to coordinate strategies to both manage water resources and replace aging infrastructure. And, given the importance of water to our economy, the Indiana Chamber continues to identify it as a topic that needs attention to sustain economic development. Interest remains widespread throughout the state. Agricultural land is assessed at a higher value if well irrigated. Some major economic development projects are not going to happen in certain areas of the country due to water resource questions. Indiana could be a beneficiary if a thorough state plan is in place. Many other states are grappling with the same issues and the same needs. Most have developed water planning programs to help make decisions with high-quality data and a new level of local control. New Jersey and Connecticut each just completed its first modern state water plans. Virginia is making changes to its approach to regulating withdrawals from the state’s aquifers. Arkansas and South Carolina have established regional planning entities to focus attention on the right challenges and opportunities. Fortunately for elected officials, water resource protection and water infrastructure improvement have broad public support. A recent survey from Stanford University shows majority backing for additional government attention to water supply and water quality.

Changing times New uses of water help our economy only if we know how to manage the resources to satisfy changing needs. A recent report about the Ohio River Basin, funded by the U.S. Army Corps of Engineers, suggests that central and southern Indiana are likely to have longer dry spells each summer and autumn in the next several decades. Water resources and infrastructure in the state were not designed for this more variable climate. In 2017, leaders of a community water system in southern Indiana considered drilling new wells in a neighboring county and piping the groundwater back to serve its customers. When this idea was presented in a public meeting, it was not immediately known by local officials whether this pipeline was allowed without formal review and approval. Clarity is needed in order to make informed decisions. The ultimate solution here is not a one-size-fits-all system. Water users must be empowered to manage resources collectively. The job of the state is to facilitate the work and provide information so that regional and local entities can manage according to their priorities People sometimes ask if we are in a water crisis. The answer today might be “No.” But a change in natural conditions (beyond our control) or a lack of action (well within our determination) will force a different response. We must choose to plot our course strategically instead of having to make difficult decisions under duress. It is time for Indiana to move forward and become the best possible stewards of its water resources. It is another of the important parts of the equation of being a “state that works.”

AUTHOR: Jack Wittman, Ph.D., based in Bloomington, is principal geoscientist with INTERA Incorporated. He was the author of the 2014 study, available at www.indianachamber.com/water, and continues to work with Indiana leaders on effectively utilizing water resources

26 BizVoice/Indiana Chamber – January/February 2018

January/February 2018 – BizVoice/Indiana Chamber 27 ROAD TRIP TREASURES

HOOPS HEAVEN Henry County Home to Basketball History By Tom Schuman

EDITOR’S NOTE: Each 2018 issue of BizVoice® will feature a Road Trip Treasure, highlighting Indiana destinations and activities.

If you’ve seen the movie Hoosiers – and who hasn’t – the Hoosier Gym in Knightstown looks familiar.

28 BizVoice/Indiana Chamber – January/February 2018 For basketball aficionados, Indiana has no shortage of historic locations that offer vivid reminders of Hoosiers’ passion for the sport. Three of the most special destinations can be enjoyed within 15 miles of each other in Henry County:

• Hoosier Gym in Knightstown is most famous as the home of the Hickory Huskers in the 1986 movie Hoosiers. More than 65,000 people were expected to visit in 2017 to enjoy the nostalgia as well as the more than 80 high school basketball games scheduled for the facility in the 2017-2018 season. • The Indiana Basketball Hall of Fame has welcomed more than 300,000 guests from around the country and globe since relocating to New Castle in 1990. Chris May, executive director for the last eight and half years, appropriately refers to his job as “walking into arguably one of the holiest of holy places in Indiana.” • A short walk from the Hall of Fame takes you to New Castle High School Fieldhouse, with the banner inside proudly proclaiming it as the “the largest and finest high school fieldhouse in the world.” Its 9,300-plus seats exceeds the capacity of, among others, the basketball homes of both Duke and Notre Dame universities.

Indiana’s game Bob Garner played – “well, let’s say I was a benchwarmer,” he clarifies – on the last Knightstown High School team (1966) to host its games there. He returned to the community just three years ago and is now the events coordinator for the historic venue. It is run by the non-profit Hoosier Gym Community Center of Knightstown. No tax dollars are used and the gym is open to the community any time it is not rented. “Those of us from Knightstown who played ball here, there’s obviously a warm spot. People who loved the movie, there’s a warm spot for the place,” Garner offers. “But it amazes me, the impact this has had. Adult men, walking through the door there, and breaking out in tears. It had gotten to a point where I was worried a little bit (about whether younger generations would have the same feelings). “Parents and coaches want their teams to come and play here because they love the movie; the impact on the kids after they are here is equal to the parents.” Need proof. On December 22, two Mississippi rivals and their fans traveled to Knightstown to play four games. It all started with a dad and his son visiting Hoosier Gym the previous summer. “The son says, ‘Dad, I’ve got to play a game here,’ ” Garner recalls. “The dad, who was his coach, says, ‘I don’t know how we can pull that off.’ ” (He asks Garner about help in scheduling an Indiana opponent, but the Indiana High School Athletic Association has travel limitations on teams Indiana schools can play). “He calls me up a few days later and says one of our rivals wants to come here and play,” Garner continues. “About three days later, he asks if they could play two games that day. My parents said, ‘If the varsity is coming, the JV is coming.’ Not a week goes by before I get a call from the athletic director, asking, ‘Can we play two more games (varsity and JV girls)?’ That’s how East Webster and Pontotoc – and many fans – came from Mississippi to Indiana three days before Christmas. Area hotels, restaurants and businesses were among the beneficiaries. A team from Syracuse, New York, has played in the Hoosier Gym. An Illinois athletic director told Garner he “would like to play here every year if he could.” Two Ohio schools are set for this season, and the Ohio High School Athletic Association wants an OHSAA day next year to bring 12 teams in for a six-game extravaganza.

The movie about the game The expansive number of high school games are a recent phenomenon, following in the footsteps of the popular Hoosiers Reunion All-Star Classic. Indiana high school boys and girls have battled in an all-star doubleheader (matching the Hickory Huskers from the movie against the rival Terhune Tigers)

January/February 2018 – BizVoice/Indiana Chamber 29 their big, black cowboy hats from every state in the union as well as Venezuela, Brazil. They loved the movie. The majority of them chose to come here and they bought thousands of dollars in souvenirs.”

Taking the tour On a Monday in mid-November, four different groups stopped in for a visit in a 90-minute period. One was a local couple that recently celebrated its 50th wedding anniversary, proudly bringing their nephew and his wife who were visiting from Florida. Two different families were Pittsburgh Steeler fans who had traveled to Indianapolis the day before to see their team defeat the Colts. Matthew and Janae Urie and their children (ages 11 and 10) saw a billboard on Interstate 70 on their way from Pennsylvania. Daily tours allow visitors to shoot baskets and check out the Hickory Huskers’ locker room, complete The parents were big fans of the movie. After with key movie phrases and plays on the blackboard. receiving a guided tour and taking time to shoot some baskets in the historic structure, Matthew offers, “I think this is awesome – how authentic it is. It looks like it’s been untouched.” Garner puts the visitor count at 62 countries. Fans from the Philippines in 2017, China and Japan the year before. This interview had interrupted Garner’s work on a notice to local merchants about the upcoming game schedule. Shop owners had told him, “We’ve got to know when you’re having those big days.” Some have told him they haven’t done that much business in five years. Garner informs one of the tour groups the only changes to the gym since the Hoosiers’ filming have been updated scoreboards and the three-point line on the court. He notes that 725 people can be accommodated on the “sardine seating” plan. “When we showed the movie last Friday night (early November), 348 people showed for the past dozen years. Back to Garner and just a few of his up. The scene with the team clapping in the But the Hoosier Gym has long been a experiences. locker room, guess what everyone is doing in shrine to the film that tops more than a few “A young man from Oregon comes in, here. We’ve got popcorn, nachos, hot dogs,” “best sports movie of all time” lists. Photos walks in the door and starts crying. I didn’t he adds. “When we have games here, people and other memorabilia greets visitors upon know how to react. This place has this effect stomping their feet in this old structure, the their arrival. But the true attraction is the on a lot of people. He says, ‘I played high noise is outrageous.” facility built for $14,000 in 1921 to serve as school basketball and my dad was the town HALL OF FAME home for the Knightstown teams. drunk.’ I almost started crying.” They come to see the locker room. And Or there’s the woman who informed her May’s description of the reverent nature the bench where Gene Hackman (playing husband of his pending fatherhood by holding of the Hall of Fame simply refers to the Hoosiers coach Norman Dale) sat while up a Hickory onesie she purchased at the gift “impact of basketball in communities large famously proclaiming “my team is on the shop. “What a way to find out,” Garner adds and small. It’s a constant reminder of how floor” in refusing to put a player he disciplined with a smile. “He (the dad to be) starts crying. significant basketball is in Indiana’s history back into the game. As well as where town That was a great one.” and will continue to be.” drunk “Shooter” Flatch (played by Dennis Garner was a little skeptical when Not surprisingly, Indiana is a pacesetter Hopper and father of one of the team’s organizers of the American Angus Association in this field. players) was positioned in the stands during convention wanted to schedule a visit as an “We were the original statewide high various scenes. optional side trip. “They all came in with school basketball hall of fame and museum in

30 BizVoice/Indiana Chamber – January/February 2018 the country,” he shares. “Others have tried. Kentucky is in the late stages of having one in Elizabethtown. Illinois is trying, with its second group. I was at a conference in Knoxville, Tennessee, and it’s clear the national women’s basketball hall of fame stole some elements (in a complimentary way) of their building and design from us.” May recalls a family from Italy visiting during his first year in New Castle. The goal was to experience women’s basketball – from the college level at Storrs, Connecticut and Knoxville to an Indiana Fever game – and the Indiana Hall of Fame. “There are hundreds of stories like that – native Hoosiers whose grandfather’s jersey might be in our collection to the emotional attachment if your school was swept away in the consolidation wave,” he continues. “About 50% of our visitors are from outside the state of Indiana. They’ve come from all 92 counties, all 50 states and as best we can track, 64 countries.” The Indiana Hall of Fame’s original home was in Indianapolis. Danny Danielson, a business and community leader who served on the Indiana Chamber board of directors for many years until passing away at the age The Indiana Basketball Hall of Fame offers 14,000 square feet of memorabilia and nostalgia. of 95 in 2015, was the driving force in the ESCAPE THE ORDINARY Grand Wayne Center is more than an event facility — it’s an experience, carefully crafted to simplify every event planner’s To-Do list with:

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January/February 2018 – BizVoice/Indiana Chamber 31 More than 6,000 fans converged on the New Castle Fieldhouse for the 2017 boys’ sectional final between the host Trojans and Connersville (Michael E. Keating 2017). construction of the new facility and the move seats in the building. likely to know that’s where the Hall of Fame east along Interstate 70. “For Hoosiers, it’s usually a connection is. I think it’s a huge part of the town’s Visitors often start their tour in the to their alma mater or a person they grew up identity.” Danielson Theater, where a 17-minute film watching,” he continues. “When we have field (which debuted in October 2016) features trips or team outings, it’s not all about the THE FIELDHOUSE Hoosier basketball legends telling their past; it’s also about inspiring the future.” The 14,000-square-foot Hall of Fame stories about growing up and playing the Two Hall of Fame highlights each year: squeezes Indiana basketball history into its game in this state. May calls that a special Honoring that year’s induction class structure. Nearby, the New Castle Fieldhouse attraction, as well as the permanent exhibits (both men and women): “That’s a big part of was known to pack more than 10,000 fans honoring John Wooden, Oscar Robertson why we exist and why people want to come into its confines for North Central and Larry Bird. here. It’s a great reunion of Indiana basketball Conference or postseason games. Official history when we have the ceremonies for our capacity, once listed at 9,325, is now 9,314 – Nostalgia on display inductees.” not sure what happened to those 11 seats. But it’s often the individual Jerseys, trophies, newspaper clippings The Fieldhouse was built in 1959 with circumstances that resonate. I mention to and more greet the Hall of Fame newcomers. the community raising more than $1 million. May during our discussion that my brother Family members, teammates and coaches Unassuming from the outside, upon entry played on the last basketball team at Sunman often accompany the honorees. “It takes them one is mesmerized by the rows of seats High School in southeastern Indiana before it back in time pretty fast,” May asserts. leading down to the basketball floor. One was consolidated into what is now East Secondly, Hall of Fame tourneys (again will also find the “sunken” court at the Central. A short time later, during my first for boys and girls) bring together four top Spartan Bowl in Connersville and at the Hall of Fame visit in a number of years, I teams from throughout the state during the college level in places such as “The Pit” at the encounter an exhibit honoring Jim Lyttle holidays at the nearby New Castle Fieldhouse. University of New Mexico. (1960s star at North Dearborn, the other Not surprisingly, those are the two busiest Although the days of 10,000 fans at a school with Sunman in the East Central days of the year for museum visitation. local high school game are in the past, New merger), who went on to enjoy a long Just as Indiana showcases its basketball Castle athletic director Shane Osting says the professional baseball career. heritage, New Castle is proud of its high school boys still draw 3,500 to 4,000 for “I think nostalgia is the word that identification with the sport. most contests. A 2017 sectional final between probably comes out the most,” May reflects. “First and foremost, volunteer support is high-powered teams from Connersville and “How it used to be – when high school what has sustained our operation and is really New Castle attracted over 6,000 – “it looked basketball was the center of the town and you what got the Hall here in the first place,” like Christmas in March with red on one side knew every Friday and Saturday night contends May, who also notes some and green on the other.” everyone was going to be at the games. volunteers (60 to 70 active at this point) A 2016 ESPN event that included prep When there was more demand for season come from long distances to stay involved. “If schools from California and Virginia also tickets than even the 6,000, 7,000, 8,000 you mention New Castle, people are most produced “an outstanding environment,”

32 BizVoice/Indiana Chamber – January/February 2018 place,” he shares. “Visitors say, ‘Can we go down and shoot a shot?’ They get their phones out, their cameras out.”

Hometown heroes The passion was obviously in place for New Castle to construct its cathedral in 1959 (reportedly due to being tired of traveling to Muncie for tournament games) and attract the Hall of Fame in 1990. In between were two Mr. Basketballs who went on to illustrious careers beyond high school: Kent Benson in 1973 and Steve Alford a decade later. “Kent Benson is still in the community and shows off the facility as much as he can,” notes Osting, a former player at Winchester and coach at several east central Indiana schools who never played a game at the Fieldhouse. “It’s the same with Sam Alford (Steve’s father and longtime New Castle coach). It’s phenomenal how the community comes together for a basketball event.” The track high above the playing floor is open to those community members in the morning and during lunch hours. Cheerleading and dance contests are among the events that take place The New Castle girls’ team goes through a workout on the parquet floor in addition to basketball. at the Fieldhouse. History is preserved with the school honoring individuals and teams that have achieved conference or state success with photos that according to Osting. And whether it’s high school players from Indiana adorn the concourse. The 25th anniversary basketball team is invited or beyond, Hall of Fame visitors or others, the reaction is the same. back each year for a banquet and game recognition. “They walk in and just go, ‘Wow! Wow, this is a high school It’s all part of New Castle, Henry County and Indiana’s love affair gym?’ It just has that awe effect for people who have never been in the with basketball.

RESOURCES: Bob Garner, Hoosier Gym, at www.thehoosiergym.com | Chris May, Indiana Basketball Hall of Fame, at www.hoopshall.com | Shane Osting, New Castle High School

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January/February 2018 – BizVoice/Indiana Chamber 33 LEADING the MANUFACTURING WAY The numbers tell only part of the story. Yes, Indiana is the most manufacturing-intensive state in the country – based on employment, share of gross state product and various other measures.

But manufacturing is so much more. It’s part of Indiana’s identity throughout our 200-year history – and undoubtedly will continue to be going forward. It’s that manufacturing success that has fueled so much optimism as we look to further integrate technology into the processes and solutions of today and tomorrow.

The remainder of this 80-page issue features some of the highlights of Indiana’s manufacturing story. We salute all the companies and associates who combine their efforts on behalf of our state.

34 BizVoice/Indiana Chamber – January/February 2018 BUSINESS PROFILE EDITOR’S NOTE: BizVoice® reached out to a variety of companies with manufacturing histories dating back to the 1800s. Here are the stories of two companies that responded.

Brinly-Hardy in Jeffersonville makes tractor attachments – like this cart – as well as other lawn care, gardening and heating equipment.

BRINLY-HARDY’S ROOTS GROW DEEP

By Crickett Gibbons Brinly-Hardy President Jane Hardy attributes the company’s longevity in Began in 1839, but origins date to the early 1800s when “Little John” Brinly, a large degree to its culture and innovation. a blacksmith in Simpsonville, Kentucky, began making plows in his “We are a family business and always have been. I’m fifth generation. It matters a lot in how spare time. His son, T.E.C. Brinly, we treat each other and how we work together. We are very team-oriented when we work on made a one-piece steel plow from a projects,” she explains, adding, “Also, we are very innovative. We’ve done a lot of things. … The saw blade in 1837. product has changed quite a bit.” Tractor accessories are the company’s niche under the Brinly brand, Hardy says. “Whatever James Edward Hardy joined the you might put on a tractor, we make. We make them for different people (companies) and our company in 1963, a few years after it brand as well.” moved to Louisville, Kentucky. Brinly-Hardy expanded beyond residential lawn and garden products in 2009 by acquiring Incorporated as Brinly-Hardy Spyker, which is known for its commercial spreaders. Company in 1900. “Spyker will be celebrating 150 years in 2018,” Hardy notes, which is also when Spyker will launch “a really fabulous new product line that basically takes into account everything we’ve Relocated to Jeffersonville in 1998, learned in 150 years.” where it now employs about 200 people. The new Spyker product will be launched at trade shows, such as the Golf Course Supply Show in February, she adds. Makes lawn and garden equipment that is sold nationwide to homeowners People behind the products and commercial lawn specialists. Also The company refers to employees as “Brinly people,” with more than 20% having worked there for manufactures gas heating equipment. over 20 years, according to the web site. Hardy describes what it’s like to be part of the organization. “We are used to wearing a lot of different hats. Because we are a small company and make so Purchased Spyker, known for many different things, we are flexible and willing to try a lot of different things, do different things commercial spreaders, in 2009, and and help each other out,” she reveals. “We could be building one product one day, then reassemble Cozy Heating System in 2014. the team and build something different the next day. Also, we try to have fun together.” Operates 240,000 square feet of When asked how Brinly-Hardy sets itself apart from other companies, Hardy returns to the production and storage space, plus a company culture. 10,000-square-foot research and “There aren’t too many other companies like us. What I think sets us apart is … our family development facility, quality lab, culture and the variety of what we do make us a great place to work. We have employees who leave outdoor test track and plot areas. and then come back. That happens a lot with us and that’s gratifying. We feel like we offer people the chance to learn a lot here.”

RESOURCE: Jane Hardy, Brinly-Hardy, at www.brinly.com

January/February 2018 – BizVoice/Indiana Chamber 35 FEATURE STORY

Indiana’s manufacturing prowess during World War II solidified an image for the state that still endures today. It began decades earlier. By 1900, the Hoosier state was already part of the robust Midwest industrial heartland.

“I always like to say that there was no other place on the face of the earth that was more efficient and more sophisticated – ahead of Germany, Great Britain and certainly China or any other place,” declares James H. Madison, author and noted history Like companies throughout the country, RCA in Bloomington changed what it produced during professor at Indiana University in Bloomington. wartime and turned to women to keep up with demand (Monroe County history collection photo). Out of necessity, what World War II did to manufacturing was hasten its growing sophistication, particularly for those larger companies that already had been making the transition to higher speed assembly line production. Of course, the big catalyst in FROM CARS moving things along was Uncle Sam. “All the manufacturing was done at the behest of the federal government with government contracts,” Madison explains. “I believe Indiana was eighth among all the to BULLETS states in government contracts, which is testimony to the power and significance of Indiana’s World War II our manufacturing by 1941.” Shifts in production For those not around 76 years ago, it’s Production Transition By Rebecca Patrick hard to grasp the magnitude and how things changed once the Japanese bombed Pearl Harbor on December 7, 1941. “It was a real war … a very serious war; America could have actually lost this war,” Madison asserts. “We forget that because we know how it turned out! “It was such a huge war that it twists and turns everything. You can’t escape this war. We’ve been at war since 1945 and most of the time people haven’t noticed. But World War II affected their daily lives deeply.” It was all hands on deck. For companies, that translated to producing whatever was needed to help the cause. A prime example is the automobile industry, which by the time the U.S. entered the war was struggling to meet consumer demand. The country had bounced back from the Depression and many Americans now had sufficient money and desire to buy a vehicle. The Lilly Blood Bank was set up to provide dried human blood plasma for U.S. troops at the request “A trick question is what does a 1943 of the federal government. In total, the company delivered more than two million pints of blood Plymouth look like? Well, there ain’t no plasma (© Copyright Eli Lilly and Company. All rights reserved. Photo courtesy of Eli Lilly and such thing,” Madison quips. “The federal Company archives). government forced them to stop producing

36 BizVoice/Indiana Chamber – January/February 2018 Manufacturing: Yesterday automobiles. So Indiana factories did not incentives for places like the various General “Cartridges made at the arsenal had produce automobile parts; rather they Motors and Chrysler plants, Republic Aviation seven parts, passed through 48 processing produced military parts. in Evansville and General Electric (GE) in operations, and had to survive 334 quality “They made jeeps in South Bend and Fort Wayne. There was far less of it control inspections. … Rejection rate of other equipment at Studebaker. Same thing happening for the small business, small-scale cartridges was less than .1% of production.” happened across the state.” manufacturers; they simply couldn’t produce Joslyn Manufacturing and Supply Co. in The large Chrysler plant in New Castle what was needed and the amount. Fort Wayne drew the most hazardous of duties: – employing more than 6,000 at one time – shaping the uranium rods used in the first operated at full capacity on front-wheel drive Impact on cities, citizens atomic bomb dropped on Japan. As part of the systems for Army trucks, as well as parts for Perhaps no place in the state saw more then top-secret Manhattan Project, workers weapons carriers and tank treads. of a wartime rebirth than Evansville. there almost certainly had little idea what they RCA in Bloomington, which had only Before some 50 local companies received were handling or that it could be harmful to begun producing radios, now had the task of government contracts, Thomas W. Bennett, their health, or even deadly, down the road. manufacturing proximity fuses for bombs. former manager of the United States Employment GE, which by this time was a flagship While Eli Lilly continued to make Service, had described Evansville’s “ghostlike employer in Allen County, was best known medicine in Indianapolis, the company also appearance” and “closed factories and for supplying superchargers for military shifted focus. It formed the Lilly Blood Bank deserted homes” (according to the Indiana aircraft; these gave wartime planes greater and produced 20% of all blood plasma gathered Historical Bureau article, “How a WWII power, speed, height and distance. by the American Red Cross. This proved Fighter Aircraft Saved Evansville”). GE recognized the importance of valuable in aiding wounded soldiers because In April 1942, Republic Aviation opened employee buy-in to what it was doing. A dried blood plasma was critical in the treatment a plant to manufacture the P-47 Thunderbolt company newsletter, The Works News, served to of shock due to hemorrhage and severe burns. fighter plane and employed thousands of rev up the patriotism among its workers, or Lilly also collaborated with the government workers through the war’s end. Along with “industrial soldiers” as it called them. on large-scale production of penicillin. the Republic facility in New York, the In an early edition about the war, GE In Fort Wayne, International Harvester company accounted for over 15,000 aircraft president Charles Wilson wrote, “From that rolled out trucks for the Army. Magnavox sent into battle. moment on, no American was working for used its expertise on radio equipment, bomb Meanwhile, the Evansville Chrysler plant himself alone, but for the whole of our detectors, as well as sonar and radar systems. became a bullet-making machine. country, for the future of that country and A number of Indiana companies received For the duration of its nearly two-year for humanity. the Army-Navy “E” pennant for excellence in government contract, that factory produced “We know the job before us. We know production during World War II. an impressive 96% of the .45-caliber that our cause is the greatest for which man Adds Madison, “Most of the military cartridges used by soldiers – more than three has ever fought. Let us remember that our production during the war is good, old-fashioned billion in total. every thought and act is devoted to that cause. hard slogging on assembly lines, heavy Dwight Allen, president of the Military We are producing for victory,” he concludes. manufacturing in steel mills and auto parts Writers Society of America, wrote in a 70th In the publication, through advertisements, factories and pharmaceutical companies.” anniversary article on Chrysler for the employees were encouraged to purchase war He calls the federal contracts tremendous Defense Media Network: bonds. They could also read letters from their

Republic Aviation was one of the largest producers of P-47 fighter planes for WW II, including making over 6,600 in Evansville. At its peak, this Evansville plant employed approximately 8,300; only 250 remained a few weeks after the war ended. The last plane flew out October 11, 1945 (Evansville Courier and Press photo).

January/February 2018 – BizVoice/Indiana Chamber 37 co-workers in battle and details about the company’s part in the war effort. The large illuminated GE sign atop the facility on Broadway was turned off the day Pearl Harbor was bombed; its re-emergence on September 2, 1945, was a visible symbol for the city of a return to peacetime.

New workforce faces One of the major problems facing manufacturers by 1941-42 is similar to the challenges of today – a shortage of labor. The obvious reason then is that young men were off to war. In Indiana alone, some 338,000 sons, husbands and fathers saw action until World War II’s conclusion in September 1945. The answer to the pressing need was hiring women and African Americans on a scale that neither group had previously seen or even desired – in the case of some females U.S. Rubber Company factories, like the one shown in Indianapolis, produced war goods such as during that era. tires, inner tubes and boots for the military. Of note on the worker’s smock: a button bearing her “That’s a very important part of the photograph and employee identification number, considered standard wear at the time (Indiana social as well as economic aspects of this war. Historical Society photo, P0569). Most of these plants need to produce at capacity – or beyond. A lot of manufacturers full-time home life, others were not. That manufacturing. (For instance) automakers were not enthused about (hiring them) to be latter group, he says, paved the way for move from military jeeps to cars very rapidly. honest,” Madison states. women in the workforce today. They struggled to meet that demand, but “A lot of workers weren’t enthused about “Some of those women, 20 to 30 years that’s because demand was so large.” having women working next to them or African later, sat around kitchen tables in New The war brought about the longest Americans. There were protests, there were Castle, Greencastle or wherever and told period of sustained economic prosperity in strikes, there were walkouts when those kind their daughters what the war had shown Indiana and American history – one that of people showed up in factories in Indiana. them. And told their daughters that there lasted until about 1970. Nothing like it has That’s an unpleasant side of the war, but it was were possibilities out there. happened before or since, and it’s in large a reality of this war and the struggles of labor.” “In other words, what’s called the part because of excellence in manufacturing. The United Auto Workers, already very feminist movement – I would call it justice Madison says this ultimately contributed established, in particular tried to pave the and equality for all – came from those kitchen to a false sense of security – one that was hard way for women and African Americans “but table conversations.” to shake for Hoosiers and contributed to the there was resistance even in this most state’s reluctance to change for so many decades. progressive union – especially to putting them Post-war impressions “In some ironic ways, the manufacturing in skilled labor positions. But it happened.” Going back to churning out radios, motors strength and success during the war years A return to peacetime production spelled and more wasn’t merely a flip-of-the-switch long term may not have served us so well. the end for much of the new workforce type process. Still, Madison offers that the This is the human condition: We tend to (though smaller labor shortages over the next headline is how fast companies made it happen. think that jobs down at the factory for an two decades yielded some new opportunities Driving that swift action was the 18-year-old kid will always be (there). for these groups). recognition of tremendous pent-up demand “People couldn’t imagine in 1941 that “Many women in many of these factories as a result of many Americans having more factories like GE in Fort Wayne would go are told – even before the war is over and money than ever before thanks to good- away. It was unimaginable. Historians certainly afterward – your job belongs to a paying factory jobs. certainly know that nothing will remain as it man, your job belongs to a returning solider “People had not been able to buy new is. Everything changes. Hoosiers struggled for and you have to give that up, and they did,” cars, new washing machines, put running water a long time to live in that reality.” Madison relays. in their homes – all kinds of consequences for That said, some things simply can’t be “They had gotten a taste of the human everyday life that go back to the Depression predicted. satisfaction that comes from doing a job – a and before. Now they have money and they “The big manufacturing story down the job you rather like – and the benefits it want to buy,” Madison shares. road is the transition to the inclusion of creates in terms of a paycheck and otherwise. “Even before the war is over, companies Japanese-owned and other foreign-owned Women, in particular, got a taste of a good begin the process of retooling and adjusting automobile plants,” Madison surmises. income, which they had never had before.” to meet that consumer demand – and they do “You talk about not seeing ahead – no Madison explains while some of the it with tremendous success. This is another one would have seen that on December 7, women were happy or relieved to revert to success story – the re-orienting of 1941. The irony of history!”

RESOURCE: Dr. James H. Madison, Indiana University, at [email protected]

38 BizVoice/Indiana Chamber – January/February 2018 January/February 2018 – BizVoice/Indiana Chamber 39 Manufacturing: Yesterday

INDIANA DRIVING U.S. STEEL INDUSTRY

The Hoosier state is a national leader United States Steel Industry Employment (2007-2016) in manufacturing, which extends to the steel industry. Though the steel industry 200,000 has declined in overall employment over the last several decades (due to automation, company consolidation and international import crises), Indiana became the largest 175,000 steel producing state in the country in 1975. It has held the title continuously for 42 years, according to the American Iron and Steel Institute (AISI). Steel mills can be found in various 150,000 areas of the state (including Crawfordsville, Pittsboro and northeast Indiana), but the largest amount of steel activity is centered in Lake and Porter counties. The Times of Northwest Indiana reports the region holds 125,000 several titles for the national steel industry: the largest steel mill (U.S. Steel’s Gary Works), largest integrated steelmaking complex (ArcelorMittal’s Indiana Harbor) and newest integrated steel mill 100,000 (ArcelorMittal’s Burns Harbor). 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

40 BizVoice/Indiana Chamber – January/February 2018 Raw Steel Production (annual tons)

Northeast region ■ 2012 While Indiana’s history as a leader in ■ 2016 steelmaking goes back over 40 years (the Illinois state typically trailed just Pennsylvania in Northeast region: Rhode Island, Connecticut, production prior to 1975), here is a more New Jersey, New York, Delaware and Maryland current snapshot from AISI to show how North Central region North Central region: Minnesota, Wisconsin, the industry has been changing in the last Missouri, Oklahoma, Nebraska and Iowa five to 10 years: Texas Western region: Colorado, Utah, Washington, Oregon, California, Arizona and Hawaii • Indiana’s 2016 production of raw steel Southern Coastal region: Virginia, West was up over 5% from 2015, but down Western region Virginia, Georgia, Florida, North Carolina, South 5% from 2012; total U.S. production Carolina and Louisiana in 2016 was down 13% from 2012 Pennsylvania Southern region: Alabama, Tennessee, • Indiana’s steel industry directly employs Kentucky, Mississippi and Arkansas more than 20,000 workers; the U.S. Michigan steel industry directly employs around 140,000 • Over 160,000 total jobs are supported Ohio by the steel industry in Indiana • The national steel industry’s Southern Coastal region employment (see chart at left) dropped significantly during the recession of Southern region 2008 and 2009, losing 26,000 employees. Employment peaked again Indiana in 2012, but has lost over 12,000 employees since then 0 5,000 10,000 15,000 20,000 25,000 30,000

We’re bringing Indiana closer to Mars.

When Elwood Haynes drove his “Pioneer”, the first gasoline-powered automobile, down Pumpkinvine Pike in Kokomo, Indiana in 1864, he set in motion an inventive spirit. He was a tireless inventor who developed the unique metal alloy that led to the foundation of Haynes International and inspired our tradition of innovation. One of our recent accomplishments has landed our high-temperature alloy on the surface of Mars. HAYNES® 230® alloy was used in the rocket engine thrusters of the Sky Crane delivery vehicle that lowered the rover, “Curiosity”, to the Martian surface. For more than 100 years, we have developed, manufactured, and distributed high-performance alloys that have played a critical role in aerospace, power generation, chemical processing, pharmaceuticals, and history.

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HaynesIntl_HalfPgAd.indd 1 11/16/17 10:42 AM January/February 2018 – BizVoice/Indiana Chamber 41 Manufacturing: Yesterday WHEELS of By Symone C. Skrzycki SUCCESS Tracing the Path of Auto Pioneers Marmon Company (Indianapolis) Indiana’s automotive landscape was ignited by Manufactures its first motor car (1902). The Marmon innovation at the turn of the 20th century. Some of the is branded “A Mechanical Masterpiece” most legendary manufacturers called the state home. Ray Harroun wins the inaugural Indianapolis 500 (May 30, 1911) driving the Marmon Wasp. His average speed is 74.6 miles per hour. The vehicle features a In 1919, Indiana housed 172 businesses that produced revolutionary innovation: the rear-view mirror cars or automotive parts in 30-plus cities and towns. Launches the Model 34 (1916). Made primarily of aluminum, it evolves into the fastest production car We highlight a few of the manufacturers that made made in the United States unforgettable contributions to the auto industry. Produces 110,000-plus cars between 1903 and 1933

Marmon (then known as Nordyke and Marmon) initially gained fame as a leading producer of milling machinery. Pictured is the machine shop, circa 1890 (Indiana Historical Society photo, M0592).

Stutz Motor Car Company of America (Indianapolis) Production time for first car: five weeks (in preparation for the inaugural Indianapolis 500) Stutz Bearcat speedster debuts in 1912. It features a low-slung chassis, large engine, two bucket seats, wooden spoke wheels and more. Approximate price: $2,000 Stutz Series AA (1926) engine boasts a 92-horsepower, vertical eight-cylinder engine. Total cars sold: an estimated 3,692 to 5,000 Spectators marvel at the second Indianapolis 500 mile race in 1912. A Stutz two-seat roadster served as the pace car (Bretzman Collection photo, Indiana Historical Society). Operations cease: 1937

42 BizVoice/Indiana Chamber – January/February 2018 Haynes International (Kokomo) Founder Elwood Haynes invents (by most accounts) the first gasoline-powered automobile, dubbed the “Pioneer” (1894) Forms a company, which produces high-end automobiles through the mid-1920s Receives a patent for an alloy he creates (1907), which is used for applications such as cutlery, dental instruments and automobile spark plugs. He eventually names it the STELLITE® alloy Launches Haynes International, then known as Haynes Stellite Works (1912) Today, the company is one of the world’s largest developers, manufacturers and distributors of high- performance nickel- and cobalt-based alloys for use in high-temperature and corrosion applications. Industries The first test drive of the Pioneer, invented by Elwood Haynes, was on July 4, 1894. Towed by a horse and buggy, it moved at approximately six to seven miles per hour served include aerospace, power generation, chemical (Indiana Historical Society photo). processing, pharmaceuticals and more

Studebaker Corporation (South Bend) Launched as a blacksmith business (1852); eventually becomes the world’s largest wagon maker Abraham Lincoln rides in a barouche (one of several presidential carriages Studebaker designed) en route to his fateful evening at Ford’s Theatre Over half of the Studebaker plant is destroyed by a fire (1872) Debuts electric car (1902) and gasoline-powered car (1904). No other manufacturer before it has successfully made the transition from horse-drawn to gasoline- powered vehicles The Studebakers lived by the motto, “Always give more than you promise” (Bass Photo Co. Collection, Indiana Historical Society). Operations cease: South Bend plant (1963)

January/February 2018 – BizVoice/Indiana Chamber 43 J.J. Cole, president of the Cole Motor Car Company, proudly shows off a Series Eight Cole roadster (Bass Photo Co. Collection, Indiana Historical Society).

Cole Motor Car Company (Indianapolis) Years of operation: 1908 to 1925 Founded by former carriage maker Joseph J. Cole Known for its quality, luxury cars Launches the Cole Eight (1915), making it the second manufacturer after Cadillac to offer a V-8 engine Introduces the Cole-Springfield Toursedan (1917), which maximizes comfort and convenience by providing a closed car in the winter and an open touring car in the summer

Auburn, Cord and Duesenberg automobiles exuded wealth and sophistication (Bass Photo Co. Collection, Indiana Historical Society). Duesenberg (Auburn, Indianapolis, Connersville) Auburn Automobile Company (AAC) is founded (1900) Errett Lobban Cord is hired as vice president and general manager (1924) Cord purchases a facility in Connersville (1927) Among his contributions to the industry are the Cord L-29 (the first successful mass-production front- wheel drive automobile in the United States) and the renowned luxury Duesenberg Model J (1928). Auburn and Duesenberg cease operations: 1936

Data was gathered from a variety of sources, including the Indiana Historical Society, The History Museum, Indy Auto Blog, Cruise-IN.com and The Marmon Club.

44 BizVoice/Indiana Chamber – January/February 2018 BUSINESS PROFILE

WOLF MATTRESS: NO REST FOR THE INNOVATIVE

By Charlee Beasor

Innovation and perseverance are keys to longtime success, says CEO Paul E. Wolf was a serial entrepreneur who started at least four and fourth-generation owner Tony Wolf. companies, including a mattress, furniture upholstery, carpet and “It’s the darn willingness to stay in there and keep slugging it out until you win,” he offers. curtain company in 1873 (two years Good financial stewardship is another vital component, Wolf asserts, along with a solid and after emigrating from Germany) that dedicated employee base, the willingness to look at things differently and taking chances with innovation. is today known as Wolf Mattress “It’s survival though. If you go back to 1873 to today, the number of recessions and depressions, Corporation. (those) train wreck so many business. It could have wrecked this one a hundred ways to Sunday,” he admits. “Innovation is very important and we are blessed with multi-generational employees.” It is the oldest mattress manufacturer Distribution also falls into the category of doing things a little differently. in the United States under continuous “It’s a product that ships in a box, and that’s kind of unusual for an innerspring product,” Wolf family ownership. explains. “There are all kinds (of mattresses) made out of foam that can be shipped readily via UPS or FedEx, but you don’t find too many innersprings. We are an innovator in that arena and have The company started producing futon been for quite a while.” mattresses early on; it is the oldest Serta He affirms that listening to sales representatives about what people are buying – and how – licensee and manufactures Serta futons. has been a crucial strategy. “When we followed the millennials, we caught on to their trail with the futons. Futons were a Wolf mattresses are innerspring collegiate investment and for first family formations, and we got into that very, very early in the mattresses that are compressed, late ’80s and early ’90s. ... Then the stores that sold futons were saying, ‘We’re not seeing rolled and shipped in a box in a one- customers anymore.’ They were (supposedly) disappearing,” he recalls. day shipping timeframe to three-fifths “We went down to one of the furniture markets and the sales rep was all excited. He said, of the U.S. ‘The futon thing isn’t over; it just switched channels. The kids aren’t buying in stores anymore; they’re buying on the internet.’ ” The company employs 50 at its Following customers from the store to the internet has been a differentiator for the company. facility in Fort Wayne; average “We were the 450th member on Walmart.com and there was this little thing called Amazon,” employee tenure is 12 years. he quips. Wolf mattresses are available through Tony’s wife, Beth, is vice president of sales for the company. purchase at most online retailers; the “You know when you sleep on a Wolf mattress, you’re sleeping on 140 years of innovation company also has an outlet store in and creativity,” she declares. Fort Wayne. She proudly quotes the company’s tagline: “Quit counting sheep – sleep with a wolf!” Continued on page 80

January/February 2018 – BizVoice/Indiana Chamber 45 Strength of 96 years of experience

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• Free access to HR and training grant helplines • Health care and business product savings • Free social media and communications consulting

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To learn more about how our pro-jobs, pro-economy focus can help your company grow, www.indianachamber.com contact46 Brock Hesler today at (317) 264-7539 or [email protected]. BizVoice/Indiana Chamber – January/February 2018

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www.vinu.edu/technology January/February 2018 – BizVoice/Indiana Chamber 47 Manufacturing: Today Manufacturing Power Three Elkhart Companies Top U.S. List By Crickett Gibbons

An annual IndustryWeek listing identifies the top manufacturers in the United States. The 2017 rankings, amazingly, feature a trio of Elkhart-based operations in the top three spots. Patrick Industries Inc. debuted at No. 1 on the 50 Best U.S. Manufacturers list. LCI Industries Inc. (formerly Drew Industries Inc.) jumped to No. 2 from the previous year’s position at 11, with Thor Patrick Industries makes and distributes a wide range of products and furnishings for the RV, marine, residential, commercial and industrial markets. Industries Inc. rising two spots to No. 3. Thor was No. 20 in 2015. either as suppliers or manufacturers, being Diversifying the mix located in Elkhart does make sense – and The IndustryWeek ranking of public While the RV market accounts for about minimizes the surprise aspect just a bit. manufacturers in the U.S. is based on 70% of Patrick Industries’ revenue, the “About 80% of all RVs are produced in companies’ financial performance in six key company also has diversified and grown Elkhart County,” Dobson states. areas over a three-year period. These include during the last seven years, adding new Patrick Industries and LCI Industries, inventory turns, profit margin, asset turns, brands and markets. through its wholly owned subsidiary Lippert return on assets, return on equity and Cleveland says company revenue grew Components Inc. (LCI), provide components revenue growth. from $278 million in 2010 to more than $1.5 and materials for recreational vehicles. They In response to being named the top billion today, while expanding from six also supply other markets, such as manufacturer, Patrick Industries CEO Todd brands to more than 40 operating in 19 manufactured housing and marine industries. Cleveland says, “We are humbled by this states. Thor Industries owns subsidiaries that honor and feel fortunate to be a part of this Patrick also provides supplies to make motorized and towable RVs under 17 distinguished group of U.S. manufacturers manufactured housing and marine industries brand names, including Airstream, Bison, that includes three Elkhart, Indiana-based as well as industrial markets related to Dutchman, Crossroads, Jayco and Keystone. companies that primarily serve the RV residential housing, commercial construction and institutional furniture. industry. We are very proud of our Increasing demand community, the industries we serve and all of The array of products under those After RV sales rapidly declined during our team members.” brands is wide, including countertops, cabinet the Great Recession, the industry has Mark Dobson, president and CEO of the doors and components, trim and fascia, experienced a sustained rebound, helping to Economic Development Corporation of hardwood furniture, fiberglass bath fixtures, fuel these companies’ strong growth. Elkhart County, acknowledges it was a little interior passage doors, wiring and electrical RV shipments have increased for the last surprising to see the top three come from the systems, and many others. seven years, according to the Recreation same community. Recent sales are strong, with net sales Vehicle Industry Association (RVIA), and this “When you look around the nation, you for the first nine months of 2017 (most trend is expected to continue in 2018 – good see lots of good manufacturers. So when you recent figures available at deadline) increasing news for the top-ranked companies. see three from your own community, (I’m) 29%, to $1.2 billion from $898 million Along with the economic recovery, surprised it happened,” he admits, quickly during the same period in 2016. Net income demographic trends – mainly younger buyers adding, “That’s not a reflection on the during the same period rose by a greater attracted to the outdoor leisure lifestyle – are companies named at all, but with the percentage – 35% – to $56.7 million from often cited by industry sources as helping thousands and thousands of manufacturers $42 million. drive demand. RV owners age 35 to 54 around the nation, it’s a source of pride that Looking ahead, Cleveland anticipates posted the largest percentage gains in three are based here.” that, “Given the solid demographic trends and ownership over the past decade, according to With their ties to the RV industry, industry outlook for all of our markets, we RVIA.

48 BizVoice/Indiana Chamber – January/February 2018 are excited about growing our business both strategically through natural population growth,” Dobson explains. “This creates some acquisition, as well as organically through cross-selling opportunities pressure on the labor force. … (Companies) are competing for talent and geographic expansion.” in the marketplace. That challenge is difficult to address.” LCI also supplies components for markets beyond the RV In recent earnings releases, both LCI and Thor mention workforce industry, including buses, trailers, trucks, pontoon boats, trains, shortages in Elkhart County as a challenge. manufactured homes and modular housing. The company operates 52 Cleveland, with Patrick Industries, notes, “Since one of the challenges manufacturing and distribution facilities in the U.S., Canada and Italy. we face (in Elkhart) is a tight labor market, particularly given low For the third quarter of 2017, LCI reported a 35% net sales increase unemployment rates, we have continued to focus on talent engagement over 2016, from $412 million to $555 million. and retention initiatives with our team members across all areas of our organization to impact our overall retention performance.” RV strength The largest RV manufacturing company, Thor Industries also ranks Favorable environment at the top in annual national sales units as of July 2017, according to While the labor market in Elkhart County may be difficult for Statistical Surveys Inc. manufacturing, the community helps contribute to each company’s The company recently reported record sales and net income for success in part by being “very business-friendly,” according to Dobson, the fiscal year that ended July 31, 2017, and the first quarter of its citing political leaders, community leaders and policies. fiscal year 2018 (August 1 through October 31, 2017). There’s also an informal network, where all of the company FY 2017 year-end sales were up 58.2% to $7.25 billion from leaders know each other and support each other – even if they are also $4.58 billion the previous year. Net income also rose by 45%. competing, he says. Cleveland backs that up. Finding the workers “There is a great deal of communication and partnership between With the RV market rolling strong, the biggest challenge these the manufacturers and suppliers, both in Elkhart and in the top manufacturers may face is the labor market in Elkhart County. neighboring counties, which fosters an environment centered around “In the current economy, we have added a tremendous number of working together to support each other and drive overall industry manufacturing jobs, and that pace of job addition is outpacing the growth in the markets we serve.”

RESOURCES: Recreation Vehicle Industry Association at www.rvia.org | Todd Cleveland, Patrick Industries, at www.patrickind.com | LCI/Lippert Components at www.lci1.com | Thor Industries at www.thorindustries.com | Mark Dobson, Economic Development Corporation of Elkhart County, at www.elkhartcountybiz.com

January/February 2018 – BizVoice/Indiana Chamber 49 Manufacturing: Today MAKING SWEET MUSIC Conn-Selmer Crafts Instruments, Supports Education Efforts By Crickett Gibbons

How long does it take to make a clarinet? Would you believe 108 years? “It takes 100 years to grow the tree,” explains Bob Lichty, woodwinds category manager at Conn- Selmer, during a recent tour of the company’s Elkhart South Plant. “The wood has to be that old to be that dense,” he says, pointing to a rack of shaped, drilled clarinet pieces.

He shares that cut wood blocks are stored in a climate-controlled environment for another seven years. Then they are carved by hand before a machine drills the necessary holes. “The more precise we are at this stage, the easier it is for the finishers,” says Lichty, adding that the machine can work on 75 instruments a day. That focus on quality – from start to finish – is a common refrain at Conn-Selmer, which manufactures and distributes band and orchestra instruments for student, amateur and professional musicians under 14 different brand names. The oldest brand, Leblanc, dates to 1750 and is produced at the Elkhart South Plant. “This is the last place in the United States that is making student flutes and clarinets,” Lichty attests. In fact, it’s the largest and last full-line manufacturer of band and orchestra instruments in the U.S., according to the company.

Legacy brands Along with Armstrong flutes and Leblanc and Selmer clarinets, the South Plant also makes other woodwinds – flutes, bassoons and oboes – and percussion instruments including chimes, xylophones and marimbas. Brass instruments – like the highly-respected Bach Stradivarius Skilled employees at Conn-Selmer’s Elkhart plants carefully craft and professional trumpets – are shaped, soldered, polished, assembled, assemble student and professional instruments by hand, including buffed and readied for shipping at a second Elkhart plant, which also woodwinds and brass.

50 BizVoice/Indiana Chamber – January/February 2018 makes string instruments. The Stradivarius name originates from when musicians compared trumpets made by Vincent Bach in the 1920s to the Italian violin-maker Stradivarius, known as the very best, reveals Tedd Waggoner, director of Bach operations and a trumpet player himself. Between the two Elkhart facilities, roughly 50,000 instruments are made each year, with others manufactured at plants in North Carolina and Ohio. Approximately 375 employees work at the two plants and the company headquarters in Elkhart, with another 375 at the other locations. The Bach brand was part of The Selmer Company when it merged with United Musical Instruments in 2002 to form Conn- Selmer Inc. Conn-Selmer later purchased the G. Leblanc Corporation, which added other legacy instrument brands, including Leblanc. Michael Jackson (bottom) at the Elkhart North Plant uses the same process as in years past when Strategy for survival forming the bell for Bach Stradivarius trumpets from a single piece of brass. After the 2002 merger, Conn-Selmer focused on improving efficiency without sacrificing quality. The plants moved from a piecework system, in which employees are paid by the piece, to lean manufacturing, explains Conn-Selmer President and CEO John Stoner, who has been with the company for 15 years. Keeping quality at the forefront also helped the company survive during the U.S. economic downturn in the late 2000s, when many manufacturers shut down or went to China, he says. Instead of moving manufacturing offshore, Conn-Selmer continued to make instruments in Elkhart and at its other U.S. facilities. “We decided to use the downturn to improve the process … to be a better-quality manufacturer than we were before the downturn,” Stoner imparts. That gamble paid off. The U.S.-made instruments outlast imports, according to Stoner, therefore being a better investment, especially for dealers skilled employees who craft the instruments is key to the Bach recipe for sound, and a that rent instruments to band and orchestra and keep the necessary machinery operating. process that’s kept under wraps. “It’s our ‘11 students. The Bach Stradivarius trumpets are made herbs and spices,’ ” he says with a smile. “The big advantage is ours last 20 years, – start to finish – at the North Plant. “It takes Many of the plants’ employees have give or take. A lot of instruments out of 465 different operations to put the whole honed their skills over decades of experience China last less than five,” Stoner contends. thing together,” Waggoner shares. in the factories. Lichty and Waggoner greet “Sound production is our biggest many by name during the tours, and Making the music advantage,” he continues, as we watch Waggoner points out instances where Conn-Selmer also is growing globally, employee Michael Jackson make a horn’s multiple family generations work there. with about 35% of its business from outside bell, which is the part where the sound Longtime employees help train ones the United States, Stoner notes. “The quality, emerges. The torch heats up to 2,200 degrees who are just learning the techniques. sound, playability of our instruments have put Fahrenheit, capable of burning a hole in the Perfecting their skills can require months – us in a very good position in the market.” brass if it is heated too long. even up to a year. Waggoner and Lichty also emphasize “Anyone can copy the material, but what Stephanie Artley, a solder in the Bach quality and efficiency during factory tours, they can’t copy is what we do with the area, says, “It takes about a year to get pointing out the Computer Numerical material,” Waggoner adds. comfortable, where they’re working the fire Control (CNC) machines and crediting the Annealing, or heat-treating the trumpet, instead of the fire working them.”

January/February 2018 – BizVoice/Indiana Chamber 51 An artisan works the brass bell to create the distinctive sound of a Bach Stradivarius trumpet.

Selecting the perfect sound provides several programs and services, as well as advocacy, to support Professional musicians travel from all over the country – and the music education. globe – to hand select instruments, a testament to the quality of the Through the VIP Program, band directors tour the facilities, see Conn-Selmer brands. firsthand how the instruments are made and talk with Conn-Selmer “All of our instruments sound great,” Stoner clarifies, “but as a artisans and leadership. professional musician, one may speak to you differently.” “We bring in anywhere from eight to 10 band directors (at a Professionals can test different instruments in the WAVE room, time) from all over the country – today there is one from Honolulu – or the Wenger Acoustic Virtual Environment, one of only two like it and we show them what we are doing, show them the factories,” in the world, according to Waggoner. While nondescript on the Stoner explains. “We talk about what we can do to better support outside, inside the artists can hear what the instrument will sound like them. We get a lot of ideas to help support them.” in different environments, including a 300-seat recital hall. Suggestions from VIP tours have led to new programs and services, Musicians work through a Conn-Selmer dealer to arrange a visit including the Conn-Selmer School Partnership Program. Aaron Albin, to test and select specific instruments. The artist also chooses a handful director of education communications, offers that it provides access to for the dealer to sell, with a card noting the musician handpicked it. an online instrument inventory management system and educational “We just had the principal trumpet player with the Zurich support managers who visit schools and music organizations. Tonhalle Orchestra come in,” Waggoner mentions. “He selected two Other in-person professional development opportunities include for himself and five for the local dealer.” The Conn-Selmer Institute, which is an annual three-day workshop for music directors, program leaders and college students, and the Music Growing the base Administration Collaborative for music administrators. Professional musicians aren’t the only ones who visit the plant. Music program leaders and directors can also get assistance on Band directors and music educators frequently tour as part of the particular topics from Conn-Selmer educational clinicians – mostly Conn-Selmer Division of Education VIP Program. master teachers – and online videos. Video topics range from Stoner believes the Division of Education is one of two things that recruiting band students to specific instrument care and maintenance. helps set the company apart; being a U.S. manufacturer is the other. These initiatives are part of an effort to help sustain and grow “People do things in education, but not to the extent that we do. music programs. They are not personalizing it like we do.” The VIP Program is “not attached to the sale of an instrument, Led by Tim Lautzenheiser, who Stoner refers to as the “Pied but just how can we help education with the understanding that if Piper of band directors,” the Conn-Selmer Division of Education more people are in band, then music will thrive,” Albin says. And when music thrives, so can Conn-Selmer.

RESOURCE: Conn-Selmer at www.conn-selmer.com

52 BizVoice/Indiana Chamber – January/February 2018 Gray & Ductile Iron Castings • Aluminum Die Castings • Machining • Tooling & Gaging Tooling Castings • Aluminum Die Machining & Ductile Iron Gray More than Metal

1401 S Grandstaff Drive, Auburn, IN 46706 • 260.925.4717 • www.metal-technologies.com January/February 2018 – BizVoice/Indiana Chamber 53 FOUND ELSEWHERE

MANUFACTURING: BY THE NUMBERS

2017 Manufacturing Report Card Automotive Manufacturing Workforce (Top 10) Conexus Indiana 2015 2009-2015 A grade (in 2016 and 2017) Description Jobs % Increase Indiana, Iowa, Kentucky, Michigan, S. Carolina Team Assemblers 78,510 31%

F grade (in 2016 and 2017) Laborers and Freight, Stock, and Material Movers, Hand 60,543 18% Alaska, Hawaii, Nevada, New Mexico First-Line Supervisors of Production and Operating Workers 22,974 15%

Source: Ball State University Center for Business and Inspectors, Testers, Sorters, Samplers and Weighers 19,927 21% Economic Research Machinists 15,158 24% Welders, Cutters, Solderers and Brazers 13,972 24% Indiana Manufacturing Facts Assemblers and Fabricators, All Other 13,318 34% • Firms (2014): 7,163 • Output ($billions, 2016): $98.4 Cutting, Punching and Press Machine Setters, Operators, and 11,459 21% • Employment (2016): 516,900 Tenders, Metal and Plastic • Average compensation (2015): Computer-Controlled Machine Tool Operators, Metal and Plastic 8,890 37% Manufacturing: $74,849 Tool and Die Makers 5,086 25% Nonfarm Businesses: $45,592 Source: Indiana Automotive Council Sources: Bureau of Economic Analysis, U.S. Census Bureau

Indiana Rankings Indiana Automotive Industry Facts #1 – percent of workforce engaged in manufacturing • Five major assembly plants #1 – per capita income from foreign-owned manufacturers • 500+ suppliers #2 – manufacturing employment growth • More than 100,000 workers (2015) • Second largest in U.S. by gross domestic product Source: Indiana Economic Development Corporation • Third in overall U.S. production

Source: Indiana Economic Development Corporation

Manufacturing Employment by State

WA 8.8 ME MT ND 8.3 4.2 5.6 MN OR 10.9 VT 9.6 10.1 ID WI NY NH 9.9 9.2 SD 4.8 MA 7.0 9.6 16.1 MI WY 13.8 RI 8.5 3.5 CT 8.5 IA PA NE 9.6 NJ 5.9 13 .3 OH NV 9.6 DE 5.9 3.3 UT IL IN 12.5 MD 4.0 9.5 16.8 WV 8.9 CO DC 0.2 6.2 VA CA 5.5 KS MO KY 5.9 7.8 11 .5 9.2 12 .8 NC TN 11.5 10.6 OK AZ NM 7.6 AR SC 5.9 3.2 12.5 11.7 AL GA MS 13.3 8.8 12.5 Top 5 States Bottom 5 States TX LA 7.1 6.9 Indiana 16.8% District of Columbia 0.2%

FL Wisconsin 16.1% Hawaii 2.2% 4.2 Michigan 13.8% New Mexico 3.2% AK Iowa 13.3% Nevada 3.3% 4.1 Alabama 13.3% Wyoming 3.5%

Source: Bureau of Economic Analysis

HI 2.2

54 BizVoice/Indiana Chamber – January/February 2018 Top 10 Indiana Manufacturing Sectors Manufacturing (in millions of dollars, 2014) Employment by County Manufacturing Chemical products County Employees % Motor vehicles, bodies and trailers and parts Top 10 by % LaGrange 6,702 44% Primary metals Kosciusko 14,327 39% Fabricated metal products Noble 8,119 38% Food, beverage and tobacco products Elkhart 32,429 36% Jay 3,451 36% Machinery Dubois 7,532 35% Petroleum and coal products Perry 2,878 35% Miscellaneous Bartholomew 12,631 33% DeKalb 6,324 33% Plastics and rubber products Jackson 6,390 33% Computer and electronic products Whitley 5,276 33%

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Bottom 10 by %

Source: Center for Manufacturing Research Monroe 6,894 10% Union 363 10% Marion 47,242 11% Delaware 5,884 12% Hamilton 19,161 13% Hancock 4,550 13% Hendricks 9,426 13% Boone 4,111 14% Greene 1,999 14% Manufacturing’s Share of Gross State Product Knox 2,397 14% Madison 7,565 14% WA Martin 665 14% 12.4 ME MT ND 8.8 7.8 7.1 MN Source: Hoosiers by the Numbers (data from OR VT 8.9 14.4 American Community Surveys) 21.7 NH 10.9 ID WI NY SD MA 9.6 11.5 MI 4.7 9.2 18.2 WY 19.2 RI 7.9 5.9 CT 10.8 PA IA NJ 7.8 NE 11.7 18.2 OH DE 5.5 NV 11.4 4.1 UT IL IN 16.9 MD 5.4 11.1 CO 12.6 28.7 WV DC 0.2 10.1 VA CA 6.9 KS MO KY 8.5 11.1 15.5 13.0 18.9 NC TN 16.1 19.2 OK AZ NM 9.6 AR SC 8.0 4.1 14.3 16.7 AL GA MS 17.4 10.7 15.8 Top 5 States Bottom 5 States TX LA 13.9 21.2 Indiana 28.7% District of Columbia 0.2%

FL Louisiana 21.2% Hawaii 2.1% 5.0 Oregon 21.7% Alaska 3.0% AK 3.0 North Carolina 19.2% Nevada 4.1% Michigan 19.2% New Mexico 4.1%

Source: Bureau of Economic Analysis

HI 2.1

January/February 2018 – BizVoice/Indiana Chamber 55 FOUND ELSEWHERE

NATIONAL LANDSCAPE

IndustryWeek U.S. 500* 2017 IW U.S. 2016 Revenue Revenue 500 Rank Company Name Primary Industry (US$ Millions) Growth (%) 1 Exxon Mobil Corp. Petroleum & Coal Products $226,094 -15.91% 2 Apple Inc. Computers & Other Electronic Products $215,639 -7.73% 3 General Motors Co. Motor Vehicles $166,380 9.20% 4 Ford Motor Co. Motor Vehicles $151,800 1.50% 5 General Electric Co. Electrical Equipment & Appliances $123,693 5.37% 6 Chevron Corp. Petroleum & Coal Products $114,472 -17.34% 7 Boeing Co. Aerospace & Defense $94,571 -1.61% 8 Phillips 66 Petroleum & Coal Products $85,777 -15.03% 9 Microsoft Corp. Computers & Other Electronic Products $85,320 -8.83% 10 IBM Corp. Computers & Other Electronic Products $79,919 -2.23% 11 Valero Energy Corp. Petroleum & Coal Products $75,659 -13.83% 12 Philip Morris International Inc. Tobacco $74,953 1.41% 13 Johnson & Johnson Pharmaceuticals $71,890 2.59% 14 Procter & Gamble Co. Chemicals $65,299 -14.39% 15 Marathon Petroleum Corp. Petroleum & Coal Products $63,364 -12.31% 16 PepsiCo Inc. Beverages $62,799 -0.41% 17 Archer-Daniels-Midland Co. Food $62,346 -7.91% 18 Intel Corp. Computers & Other Electronic Products $59,387 7.28% 19 United Technologies Corp. Aerospace & Defense $57,244 2.04% 20 Pfizer Inc. Pharmaceuticals $52,824 8.13% 21 Cisco Systems Inc. Computers & Other Electronic Products $49,247 0.17% 22 HP Inc. Computers & Other Electronic Products $48,238 -53.33% 23 Dow Chemical Co. Chemicals $48,158 -1.27% 24 Lockheed Martin Corp. Aerospace & Defense $47,248 2.42% 25 Bunge Ltd. Food $42,679 -1.79%

*None of the top 50 in the U.S. 500 headquartered in Indiana

Source: IndustryWeek

Aerospace Plastics and Chemicals WA Manufacturing ME 2017 Most Competitive Top 10 States MT ND Metro Areas VT OR MN 1. Georgia ID NH 1. Houston-TheWoodlands-Sugar WI NY MA SD CT RI 2. Michigan WY MI Land (TX)

3. Arizona IA PA 2. Baton Rouge (LA) NE NJ NV 4. North Carolina OH MD 3. Chicago-Naperville-Elgin UT IL IN DE 5. Virginia CO WV (IL-IN-WI) CA KS MO VA 6. Ohio KY 4. Cincinnati (OH-KY-IN) NC 7. Florida TN 5. Atlanta-Sandy Springs-Roswell OK 8. Colorado AZ NM AR SC (GA) 9. Texas MS AL GA 10. New York Source: Site Selection magazine TX LA Source: PriceaterhouseCoopers 2017 ranking FL

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indwes.edu | 866.498.4968 January/February 2018 – BizVoice/Indiana Chamber 57 Manufacturing: Today

By Symone C. Skrzycki

BREAKING THE MOLD Candlemaker Creates Memories

It’s shortly after 10 a.m. when Jackie Carberry by our guest service team. And it’s their happy place.” Warm Glow candles are 100% hand dipped at its nearby factory. enters Warm Glow Candle Company’s outlet store. During the busy holiday season, it produces up to 10,000 daily. Beaming, she’s bundled in a coat and carrying Vettie, one of her pet labradoodles. Personal touch Ever wonder how Warm Glow’s trademark lumpy, bumpy Carberry’s exuberance matches the shop’s setting. It candles wind up that way? It’s all in a day’s work at the 80,000 square- foot-factory. treats the eyes to diverse colors, candles, home “Hey, Mike!” Carberry calls out to 12-year veteran Mike Stephens. décor, gourmet foods and more. An enigmatic “He pours all the candles,” she explains. “What we do is, we purchase wax (in boxes). We put the wax in big steam jacketed vats, aroma fills the air. so it turns the wax into a liquid that looks a little bit like water. When the melted wax reaches the correct temperature, Mike draws it into a The thriving business along Interstate 70 and pale and adds scented oil and colored dye. Then he hand pours the Centerville Road outside Richmond started as a liquid wax into the molds. He tops off the molds with more liquid wax small operation in Carberry’s basement. She after that starts to harden. Once the wax is set in the mold, we take them out by hand and drill the molds for the wick to be added. We launched the endeavor with her husband, Alan, in then have a dipping process that gives our candles that signature 1995. lumpy, bumpy exterior we’re known for. “So, what Mike does is make the core of the candle. The heart of “We always say that we create memories with our fragrances,” the candle!” Carberry imparts. “Our niche in the market is food fragrances – our Stephens chuckles good-naturedly. He relishes the unpredictability Cinnamon Bun, our Carrot Cake. All of those. Evening Mocha. So that comes with his job. many of our fragrances revolve around food. “It’s a challenge. Nothing is the same (from one day to the next),” “There’s times I’ve been out here talking with guests and they’ve he remarks. “No wax is the same. No fragrance is the same. And a lot been through situations in their lives – whether it be an injury to of times, I have to use stearic – it’s a granulated acid – to make it slide themselves or a loss to the family. They’ll tell us that this is their out of the molds.” happy place,” she reveals. “Maybe they don’t even buy anything. They Carberry seconds that. “Our wax is never quite the same way just walk through. They inhale the fragrances. They’re greeted warmly twice. Even though the sheets say it’s all the same, it doesn’t always

58 BizVoice/Indiana Chamber – January/February 2018 behave. And he always has to adjust. The humidity in the summer is very difficult for us. We’re constantly adjusting because of weather conditions and the wax.” Employee Elizabeth Zimmer looks up from her spot on the production line. “Elizabeth has been with us since we started in our house,” Carberry proudly reveals. “What she does is she takes the core and she drills it and then she threads the candle with the wick; she puts the wicking through it.” Ahead are three dippers. “They’re putting the lumpy, bumpy exterior on. Then they (the candles) go on the conveyor line and go down and then they’re bagged and taken down to shipping,” Carberry observes. One of the dippers is Pat Dunaway, who joined the team 14 years ago. Her take on what’s most enjoyable about working at All hands on deck: The production crew consists of 15 people. Most are cross-trained to handle Warm Glow? multiple areas. “I like it all,” she offers with a smile. “What can I say?” Her son, Greg, works a few feet away. “We have a lot of family,” Carberry notes.

‘Scents’ and sensibility Back at the outlet store, Christmas music fills the air as customers peruse votive candles, hearth candles (these are the most popular; Warm Glow sells 122,000 of them alone each year), wick loaves, scented wax chips and rose chips. Carberry talks about her pet-friendly business philosophy, employee appreciation and changing with the times at a cozy table in the on-site café. “This is a 20,000-square-foot footprint out here,” she observes, “and even though all of our product is represented, it’s too much space for what we produce alone. So, we’ve diversified a lot. We do a lot with homemade-types – jams and jellies and salsa. We sell Indiana beers and wine. The chocolates are a big hit. We have a full-time floral designer that does a beautiful job. We try to meet the needs of our guests coming off the interstate, which really vary.” everyone was doing the glass jars. We wanted That’s why we invite people to bring their The employee count varies based on something different.” animals into the store with them. My four time of year, but as of mid-November there “My office is at the factory. I’m only dogs come and go with me every day to were approximately 50 full- and part-time here (at the store) periodically,” Carberry work. That’s what helps us all get through team members. Warm Glow makes 72 comments. “I have a great management team the day – unconditional love.” different fragrances. The most popular scents out here and we have a great guest service She contends that the candle making are Evening Mocha and Cinnamon Bun. team. That’s what it takes.” business has become increasingly challenging Why take the lumpy and bumpy route? Warm Glow operates the outlet as its because the way customers shop has changed. “There weren’t as many of those on the only retail site. It wholesales to about 2,000 Warm Glow keeps the fires burning by market (when the business began),” Carberry stores – primarily small boutiques. adapting and evolving. recalls. “We were kind of the only show in Looking down at Vettie, who hasn’t left “I think now, guests want more of an town. There are now some other companies her arms, Carberry laughs. experience than they did before,” Carberry that do a lumpy, bumpy (candle), but “We’re very much animal advocates. asserts. “Once a month our marketing

January/February 2018 – BizVoice/Indiana Chamber 59 The scent of snickerdoodles and caramel coffee cake fills the air. Later in the process, wax scraps are re-melded to reduce waste.

Carberry admits that Warm Glow’s foray into e-commerce was a daunting move. “I’m a dinosaur. I order nothing online!” she quips. “That (change) was difficult for me. But you have to do it. You have to have that presence and you have to build it because it’s the way of the world. “Honestly – and I say this kind of tongue and cheek – but it used to be that it was just like, ‘Build it and they will come.’ It’s not so much that (way) anymore.”

Community core Carberry is a member of the Reid Health Foundation board of directors and recently resigned from the Wayne County Convention and Tourism Board after 15 years of service. “We work hand in hand with the Boys and Girls Club; with Genesis of the YWCA, which is a battered women’s shelter. We always have Toys for Tots out here. I don’t know that there’s a non- profit organization that we haven’t worked with in some form,” she affirms. Owner Jackie Carberry is passionate about candles, people (and animals). Carberry applauds the community’s entrepreneurial culture. “We (she and Alan) came from Valparaiso. I love it up there, but I don’t feel we would have experienced the amount of growth and … director tries to have a function out here. We do something different whatever we needed along the way up there that we have here,” she – whether it be music. We’ve had a car show. We’ve done all kinds of reflects. “They (the Richmond community) really embrace different things.” entrepreneurship. Any door that we needed open seemed to have been A Santa’s Village open house attracts thousands each year. The opened to us. It’s so important to me to be able to give back. recently-opened artisan shop features local handcrafted treasures. “We feel extraordinarily blessed to be here.”

RESOURCE: Warm Glow Candle Company at www.warmglow.com

60 BizVoice/Indiana Chamber – January/February 2018 A SUBSIDIARY OF

THANK YOU TO OUR SPONSORS FOR IMPROVING THE STATUS OF HOOSIER HEALTH.

Premier Partners:

Champion Partners: Trustee Partners:

Contributing Partners: Activate Healthcare | Franciscan Alliance | Fun-Races | Walgreens | Wellness Events, LLC

The Wellness Council of Indiana is a 501(c)(3) organization that works collaboratively to impact Indiana’s economic vitality by evaluating and guiding workplaces and communities through the development of their own comprehensive health and wellness strategy.

www.wellnessindiana.org | Jennifer Pferrer | 317-264-2168 | [email protected] January/February 2018 – BizVoice/Indiana Chamber 61

WCI-BizVoiceAd_SponsorTY_2017.indd 1 12/12/17 9:12 AM Tabb Adams constructs a barn door television console – the “bread and butter” of his custom furniture shop.

MAN AND HIS PLACE Carpenter Takes Inspiration From 100-Year-Old Barn

By Charlee Beasor BizVoice® traveled to his property in Creek). After growing tired of the daily grind, early November for a tour of the historic he started his own construction company. barn-turned-workshop. Adams, in his late 40s “I got super burnt out. I couldn’t find Tabb Adams builds things to last, and with a greying beard, greets us wearing my place,” he recollects. “Finally, I thought, a practice instilled in him by his his work “uniform”: shorts, a flannel shirt and ‘You know all the stuff about fixing things. father and grandfather and a ballcap (a peek at his social media presence Why don’t you just start your own on Instagram and Facebook shows those are construction business?’ ” inspired by his great-grandfather. his normal work threads). He was his own boss for 10 years before Though it is a chilly November afternoon, selling his company. A friend told him the The fourth-generation carpenter the shorts make sense. When Adams converted Indiana State Fairgrounds and Coliseum operates his own custom furniture the lower level of the barn to his workshop, needed a new facilities manager; he got the he poured a concrete floor and insulated the job and did that for about six months. But business out of a barn that is over shop. Portable heaters nearby keep the area coming back to work for others after 10 years 100 years old (and has been in toasty and a lumber drying kiln in the next on his own was challenging. his wife’s family all that time) in room gets up to 120 degrees at times. “My stress level was through the roof,” With steel guitar riffs creating a relaxed he says. “I was sitting at my desk and I felt Sheridan in northwestern Hamilton atmosphere, and after a look at some of the like I was having a heart attack. It was County. projects he’s currently working on, we sit probably just a panic attack. But I was like, down to talk about Adams’ one-man shop ‘Man, I can’t do this anymore.’ It was The pin-frame barn that used to that he has infused with local history and a horrible. I’m just one of those people. I have passion for using high-quality materials. to work for myself.” house dairy cows was built in He left the job and after some soul- 1905. A well-worn crosscut saw Working for yourself searching and inspiration from his mother, he hangs near the front door to Adams admits he’s a bit of a “loner” and started Cross Cut Vintage Designs. She enjoys the solitude of working by – and for – recently gave him the first piece he ever built: Adams’ shop entrance. It was the himself. a shelf he made in shop class as a freshman in inspiration for the name of his He went to school to be an aircraft high school. He didn’t realize it had been mechanic. Later, he was the building engineer hanging in his parents’ home all these years. business, Cross Cut Vintage for 13 years at what is now the Ruoff Home He started the business about two years Designs. Mortgage Music Center (originally Deer ago, after taking time to restore the original

62 BizVoice/Indiana Chamber – January/February 2018 Manufacturing: Today farmhouse that he and his wife, Ruth, live in. Her great-grandparents owned the farmhouse, barn and about 3,000 acres. Today, the property has 50 acres. Adams fell in love with the barn and property and knew someday he wanted to care for it as his own. “My wife’s great-grandmother and great- grandfather lived here in about 1914 and both her great-uncles, her grandmother and her mother were all born in the house,” he says. “(We) got married in 1996 and I came from living a subdivision life, never lived on a farm. My wife’s great-uncle was still farming, and I got a crash course in farming and taking care of animals. I had always loved this barn. And I thought, ‘Someday when he stops farming, this is going to be mine to make a shop out of.’ ” Adams gradually restored and improved the barn. “I take a lot of pride that we’ve preserved The Sheridan farm has been in Adams’ wife’s family for over 100 years. Adams uses the original barn, built in 1905, as artistic inspiration for some of his custom furniture. this place. There are not too many of these old barns anymore. They’ve outlived their usefulness. You can’t get modern machinery in them. I thought it was important to take care of it and preserve it. I feel like my wife’s family has appreciated it,” he relays.

Heart of the business Adams says the custom farmhouse style is the most sought after design for his furniture. He calls his barn door console the “bread and butter” of his furniture business, though he admits that he’s a bit tired of building them. He especially enjoys constructing mid- century modern (think 1950s, Frank Lloyd Wright, slightly-angled round tapered legs on tables and chairs). “A lot of the millennials are crazy about mid-century modern. It’s one of my favorite styles to build. I have a couple pieces in my house that are mid-century modern,” he says. But what sets Adams apart is his dedication kids like my parents have passed down “I’m a local business and I want to support to using furniture-grade lumber. He attempts furniture to me. I hope my pieces would last a local business. When it comes to reclaimed to source it locally as often as possible. 100 years,” he says. lumber, I really hate to see barns torn down, “I try to educate my customers on the It’s another trait he picked up from his No. 1, but I want to see that stuff recycled best thing to build furniture out of and it’s a father, who was a quality control engineer. because it’s beautiful. And that kind of look is furniture-grade lumber. All lumber has a He passed away earlier this fall. not around anymore because we’ve cut down moisture content to it, but with furniture “It was constantly driven into my head to a lot of old growth forest,” Adams adds. lumber you want the moisture content to be do it right the first time and don’t cut corners, “I want to try to support local business, between about 8 to 10%. The 2x4 from and the customer is also No. 1,” he shares. especially the lumber yards. They’re few and Lowe’s or Menard’s can be 25 to 30%. You “I look at it as carrying on a tradition that far between.” build it and put it into your home, the is important to me. My dad was from the Adams uses Facebook and Instagram to furnace is going to pull moisture out and it’s eastern shore of Maryland. There are things advertise his business and connect with other going to crack,” he explains. my grandfather and great-grandfather built furniture makers. Advertising on Facebook has Building long-lasting pieces is critical for that are still standing there today. … I get a given his business the biggest boost, he reveals. Adams and it connects him to the previous lot of inspiration from just working in this barn.” He also has a store on Etsy.com and generations of family carpenters. ships his pieces all over the continental “What I’m building is a quality piece of Finding footing United States, or drives the pieces there furniture that I hope would last them a Supporting local businesses also drives himself if it’s not too far. He recently shipped lifetime and they would pass down to their Adams. Continued on page 65

January/February 2018 – BizVoice/Indiana Chamber 63 ILLUMINATING SOLUTIONS Medical Device Is Changing Patient Care

By Symone C. Skrzycki

The scene: A hectic emergency room. sciences that are able to advise us that have been very welcoming and very supportive of our company.” The patient: An individual with life-threatening injuries. Some of the key advantages for Inscope Direct: • Single-use device (eliminates the risk of cross contamination) • Built-in LED light source: “All laryngoscopes have lights on them The challenge: Intubating him, which involves because the airway is a dark space and illumination helps the inserting an endotracheal tube through the mouth physician with navigating the airway. It’s important to us that we and into the airway. provide an exceptional light source.” • Innovative blade size: “Today, there are two sizes for adults – size three “Unfortunately, this patient – like most trauma patients – had a and size four. … By providing the 3.5 size, (which is) between the lot of secretions in his airway like blood and vomit, so the physicians two adult sizes, we provide something that works for almost all adults.” couldn’t get a clear view of the vocal chords,” explains Maggie Galloway, chief executive officer and co-founder of Inscope Medical Solutions. It was the catalyst that “sparked the idea for this very simple solution”: Inscope™ Direct. “The direct laryngoscope is integrated with controllable suction, so it keeps the airway clear throughout the entire procedure and allows the physician’s other hand to really focus on the critical task of passing the breathing tube into the airway,” Galloway remarks. “There aren’t any other laryngoscopes with integrated suction on the market today. While it seems like a very simple invention, it’s an enabling technology. With the integration of suction, suddenly this procedure becomes much easier and safer for the patient.” Intubation occurs in four settings: pre-hospital (in ambulances, on the battlefield) or at hospitals in the emergency department, intensive care unit and operating room.

Clearing the way Inscope was launched in 2014 by Dr. Mary Nan Mallory (one of the physicians in the above scenario) and Adam Casson. At the time, the company was based in Louisville. But the team relocated across the Ohio River to downtown Jeffersonville in December 2016. “We made the decision to make the leap based on an investment from Elevate Ventures,” Galloway recalls. “We met their team and really clicked, and had the opportunity to relocate and decided to take it.” Inscope quickly made an impression on Indiana’s entrepreneurial culture and vice versa. Maggie Galloway, chief executive officer and co-founder of Inscope “I’ve found that the health care environment in Indiana in particular Medical Solutions, demonstrates the company’s innovative product at a is strong,” Galloway asserts. “With companies like Cook and Eli Lilly, prominent emergency medical conference. there are a lot of individuals with deep domain expertise in life

64 BizVoice/Indiana Chamber – January/February 2018 Manufacturing: Today

• Ergonomic design: “It’s funny. The The idea that time is of the essence also want to innovate on a new product. In the competitor products that you see in the propels Inscope Direct, launched in fall 2017. medical device space, it’s even longer because market in the direct laryngoscope space “Using the Inscope Direct is addicting,” of the regulatory hurdles that have to be have this very sharp corner to them. And Mallory emphasizes from the physician’s cleared.” intubation is kind of a physically demanding perspective. “It’s easy to use and the But it’s worth the wait. That’s evidenced procedure – you have to lift with your controllable suction in the mouth throughout in her voice as she describes how Inscope upper body, lift the jaw of the patient up. procedures keeps the right hand free to focus conducted hands-on demonstrations at the By rounding that corner, we actually on passing the endotracheal tube. Being able American College of Emergency Physicians provide a much more comfortable grip for to easily suction while starting and Assembly last fall. physicians. That’s a big one for us.” throughout the intubation process is a game “It was really exciting, after the last changer. It makes the first view a clear view, three years of work, to see our product in the Timing is everything simplifying direct laryngoscopy every time.” hands of physicians,” Galloway declares. “This Last June, Inscope took top honors in the conference is the largest and most well- Venture Club of Indiana’s Innovation Just the beginning known emergency medicine conference, so Showcase Pitch Competition at the inaugural Patience is the name of the game when it’s just very exciting to see how excited the inX3 conference. transitioning from concept to physical physicians were about the technology. “The timing of that couldn’t be better,” product in the manufacturing or hardware “We get a lot of, ‘Why didn’t I think of Galloway shares. “We’d very recently moved realms. this?’ because it’s a pretty simple, elegant to Indiana and were trying to get our feet wet “It’s different than software start-ups solution. It’s exciting when you resonate to in the ecosystem. Winning that was a catalyst where you can very quickly get something that extent with your users.” to getting our name out and getting to meet produced and then start to get initial feedback Work is also underway on a video some of the movers and shakers in both the from users and get people actually using your laryngoscope that wirelessly streams to a start-up ecosystem and the life sciences technology,” Galloway surmises. “There are tablet (slated for release toward the end of ecosystem in Indiana.” other challenges to software companies, but 2018). “It makes that technology accessible in She’s grateful for the $100,000 prize, that in particular has always been something a lot of places that it hadn’t been accessible but points to something she considers even I’ve been a little jealous of in my friends who previously,” Galloway comments. more valuable – meeting people throughout have (them). With hardware, it’s such a long A pediatric version also is planned for the process. road from the point at which you decide you the future.

RESOURCE: Inscope Medical Solutions at www.inscopemedical.com

Tabb Adams Continued from page 63 a piece to Oregon, which is the furthest he’s sent his work to date. While most things seem to roll off his shoulders, he does worry about one aspect of the future of his business: finding a qualified employee, should he decide to expand Cross Cut Vintage Designs. “I’m to the point I could probably think about bringing someone on at least part time at the moment to help me do things. The skilled trades across the country and the world is struggling. That’s a little worrisome to me,” he expresses. “In high school, I had tons of different shop classes. But a lot of times it’s not there anymore. I’m not saying there’s nobody out there, but I think a lot of small businesses struggle.” When we speak with Adams at the beginning of November, he mentions being booked up until the middle of December. What qualifies as success to him? “I find success in that I’m happy. I’m low stress. When I get a customer, I try to not only make them a customer, but make them a friend, because I like that connection,” he concludes. Adams estimates he has created 30 to 35 barn door consoles. While the farmhouse “This keeps me grounded. I’m out here, I’m my vintage design is his most requested style, his personal favorite is mid-century modern. own man in my own space.”

RESOURCE: Tabb Adams, Cross Cut Vintage Designs, at www.crosscutvintage.com

January/February 2018 – BizVoice/Indiana Chamber 65 Manufacturing: Tomorrow FUTURE FOCUS Workers, Image and a Whole Lot More

By Charlee Beasor We make stuff in Indiana. More accurately, we make a lot of stuff in Indiana. Indiana leads the nation in manufacturing, both in share of gross state product (28.7% in 2016) and employment (16.8% in 2016), according to the National Association of Manufacturers (NAM). (See more in Found Elsewhere on Page 54). NAM also reports these indicators: payoff that translates to an increased labor pool. need more people or the jobs are going to go • Manufacturing accounted for $98.4 billion somewhere else,” he warns. in total output from the state in 2016 Workforce, workforce, workforce “We’ve been through these things before • In the same year, there were 516,900 employees There’s the old adage about “location, at tight unemployment times. This one is in the manufacturing sector and the average location, location” being the No. 1 factor for different and it has a different feel to it. We annual compensation was $74,849 business success. When it comes to the overall see it getting way worse before it gets better. And in 2016, the Center for Business economy and manufacturing, however, many We’re already at almost full employment and and Economic Research at Ball State University have suggested that should change to a lot of growth to deal with. It’s a pretty released a study showing advanced “workforce, workforce, workforce.” simple basic question: Where are the people manufacturing makes up over half of all of Jody Fledderman, president and CEO of going to come from?” Indiana’s manufacturing employment. Batesville Tool & Die, notes he is more Fledderman points to one possible solution: All are signs that Indiana’s manufacturing concerned about workforce availability than incentivizing people to move to Indiana. He sector is flourishing. But is it sustainable for development. says Indiana companies are fighting over the years to come? Fledderman points to Indiana’s low same workers. And eventually getting more The workforce challenges are daunting unemployment rate and slow population workers (by encouraging those at the high and some of the potential solutions are long growth as major red flags. school level or younger) doesn’t solve the term. They require changing the perception “Between Indiana having a million job immediate needs. of manufacturing by young people; that openings in the next 10 years … population “It feels like there’s a bubble that’s going means it may take years before there is a growth is 1% – the math doesn’t add up. We to burst and right now it’s a wage battle,

Despite Indiana’s current status as a national leader in manufacturing, employers point to worrisome challenges such as a lack of qualified workers and a negative perception that keeps young people from following the career path.

66 BizVoice/Indiana Chamber – January/February 2018 which is good for the worker,” he explains. “At the micro level, it’s all about making “But it doesn’t do you any good if you can’t certain that we have a robust vocational afford to hire anyone else.” education system in order to develop the workforce that we need,” Walker adds. R&D edge She says the prospect of growing Melanie Walker argues funding for manufacturing with the Internet of Things – research and development is of the utmost connecting everyday devices to the internet – importance for Indiana’s manufacturing landscape. has “more legs to it than 3D manufacturing Walker is president of plastic molded does right now. component supplier TASUS Corporation and “The way that U.S. manufacturing is going CEO of Tsuchiya Group North America. The to find success is through product advancement company is headquartered in Bloomington and technology. … I think that’s at the core and its parent company is based in Japan. of growing U.S. manufacturing,” she declares. Walker is also a board member of the Applied “We have to stay at a more advanced level, “Several years ago, I tired of hearing Research Institute, created to help facilitate not a base level, but a more advanced level. manufacturers complain that they technology transfer and commercialization Because that’s where we can compete.” didn’t have the skilled workforce they between Indiana higher education institutions, need. It felt like we were not taking the military industry and the Naval Surface ‘Smart manufacturing’ revolution? Warfare Center, Crane Division. The authors of the 2017 Indiana the initiative to fix that. I would say She explains the efforts of the Applied Manufacturing Survey: Upgrading for Growth the burden is on the manufacturers Research Institute are intended to increase highlight increasing automation as one steady and the responsibility is on the the scope of technology and advanced component over the past few years of the manufacturing. survey, and one where manufacturers are manufacturers to generate their own “I would say that I think at the macro level, continuing to invest. workforce and that’s what we’re research and development dollars are critical. Steve Jones and Mark Frohlich are doing, with considerable success.” We can talk about skilled labor and advanced faculty members at the Indiana University – Melanie Walker, president of TASUS automation and about process improvements Kelley School of Business. Jones is a professor and investment and training and all of those of finance and Frohlich an associate professor things, but we have to keep advancing our of operations management. automation beyond that … using digital technologies and our product to drive all of “We’ve been seeing the uptick in technology and the Internet of Things and that other activity that comes underneath it. automation for the last four or five years of advanced data analytics to run a smarter business. the survey; it’s been steadily increasing,” Frohlich It’s taking all of those great digital technologies offers. “In Europe, they call it Industry 4.0. and advanced engineering and just being a The American phrase is ‘smart manufacturing.’ much smarter manufacturer,” she says. That’s what we saw this year in the report, to That, however, gets back to the a greater degree than ever before.” workforce challenges. Frohlich also highlights that Indiana “What that requires then is a higher skill companies are moving past “basic” automation – level of employees. And it’s important to using robots to lift heavy objects, moving have vocational education support. That’s the parts between workers, etc. – to more core of our workforce. Those two-year techs “modern” automation. and engineering techs. And (we need) the Jones points to what he considers an next level too; there’s not a shortage of that, “interesting” survey response on the topic – of true engineers, who use the data analytics that automation will increase employment at to get to that solution.” their firms. Fledderman notes that it’s faster to “Although there is a certain amount of retrain a company’s workforce than to go out substitution for capital labor there, it also creates and find new talent that is more prepared for efficiency and gross markets. … I don’t view the current job requirements. automation as a problem. It actually could be “Indiana is a great place to manufacture, good for the industry, a business and also for but the (workforce) problem is created because the employees, ultimately, in the long term.” it’s such a great place and it’s so attractive. Walker calls automation – specifically It’s causing issues that need to be addressed using robots – “old news” in the advanced or people aren’t going to manufacture here as manufacturing landscape. much because the resources here won’t “There is so much more advanced exist,” he asserts.

January/February 2018 – BizVoice/Indiana Chamber 67 Batesville Tool & Die supplies precision metal stamping components. Company president and CEO Jody Fledderman is concerned about having enough workers to fill the needs of manufacturers.

Image rehab campaigns to show what the jobs entail help. lot of these kids’ parents are working for Manufacturers that responded to the Annual Manufacturing Day events held around manufacturing companies,” he acknowledges. 2017 Indiana Manufacturing Survey highlighted the state and country in October, for The program allows juniors to spend part the sector’s perception problem as another example, allow students to get a firsthand of their time at the high school, with some of challenge to overcome. look at manufacturing in high tech and the curriculum from Ivy Tech and time working Dirty factories, uncomfortable innovative companies. at one of the businesses (they rotate through conditions and back-breaking work are In Batesville, manufacturing is in the the companies involved). They are paid for mostly relics of the past. But the “image” blood of many of families, says Fledderman. the co-op time during their senior year. issue persists. Despite average salaries of over The company, along with other local “They will graduate high school having $74,000 without the requirement of a four- manufacturers, Ivy Tech Community College been in a program for two years, one semester year college degree (for many manufacturing and the local high school, created a co-op short of an associate’s degree and it didn’t positions) and clean, air-conditioned factory program for students to get an early look at cost a nickel. Still, to sell that, we do lots of floors, many young people are not interested modern manufacturing. things like open houses for the public and in the jobs that exist in the sector. “In our part of the state, our city and our meet with the parents,” Fledderman explains. There’s no clear solution. Public relations region, it is very manufacturing intensive. A But the program is small. He doesn’t anticipate scaling that program for the whole state. He looks for more regional and local “We’ve been seeing the uptick partnerships to step up. in automation for the last four “This is not a problem that will be solved or five years of the survey; it’s at the state level. This is a regional problem. I don’t know what regional means – could be been steadily increasing. In county, or regional in Fort Wayne could Europe, they call it Industry mean Fort Wayne because of the population,” 4.0. The American phrase is Fledderman suggests. “The point is this was developed and ‘smart manufacturing.’ That’s monitored and driven by the region. We took what we saw this year in the it on ourselves to solve the problem, because report, to a greater degree we have a need.” than ever before.” Walker and others are also working on the image issue through opening the doors to – Mark Frohlich students, guidance counselors, parents and associate professor of college professors, and activities that include operations management attending career fairs. Indiana University Kelley “Several years ago, I tired of hearing School of Business manufacturers complain that they didn’t have (Indiana Manufacturers Association photo) Continued on page 79

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January/February 2018 – BizVoice/Indiana Chamber 69 FEATURE STORY

FLYING HIGH GE Aviation at Center of Engine Excellence By Tom Schuman

Jet engine assembly is big business, with Lafayette at the global core. The GE Aviation facility in the manufacturing corridor on the south side of the city is one of just three in the world producing the highly- popular LEAP (Leading Edge Aviation Propulsion) engine. Three is also the key when it comes to the company’s strategy for success. A combination of talent, technology and teaming is required to produce the engines that are serving the Boeing 737 MAX and Airbus A320neo family of aircraft.

70 BizVoice/Indiana Chamber – January/February 2018 A LEAP 1A (for the Airbus A320neo family of aircraft) compressor joint is being torqued by an automatic wrench that was designed by GE technicians. The joint cannot be reached by traditional tools.

Eric Matteson, a 23-year GE veteran, is the plant leader. He explains. “They were willing to look at our drawings before (official) describes the realities of today’s jet engine assembly. submission and by the time we submitted, it was just a matter of days “In a jet engine, there are a lot of parts. Putting it together to issue permits. We had an open-door policy for inspectors and becomes more of a piece of art in what you are looking for. It’s more engineers to come on-site. manual (than automotive assembly), using high-tech tools and “The win is that we could partner with the governments to equipment to do it.” mobilize extremely fast. When I look at what it takes to be successful Thus, the combination of people (talent and teaming) and and why we chose this site, it was around economic development; it equipment (technology) is essential. The Lafayette workforce is was around bureaucracy busting; it was around the universities; and it expected to grow to 300 by the middle of 2019 in order to move from was around cultures – work ethic, commitment. Those four things are producing seven or eight engine units (complete engine or the core why GE Aviation chose Indiana. that produces all the energy) a week today to five per day by 2020. “To me, one of the great stories is how well Indiana works across boundaries to find solutions for customers.” Up and running Talent and teamwork When GE Aviation announced the Lafayette facility in March 2014, it was the company’s seventh new operation in as many years. Matteson also credits Purdue University and Ivy Tech Community Matteson – at work at the sister facility in Durham, North Carolina at College for assisting with the first of the three strategic ingredients – the time – had experience in setting up new assembly lines. This time, talent. Both have lead roles, with assistance from other schools inside he was asked to do the same and put a building around it. He started and outside the state, in creating a development pipeline. Ivy Tech with a 100-acre field and a blank slate. initiated a new course in Lafayette as part of its effort. “Part of the success of building it so fast (completed 53 weeks “We do require a FAA (Federal Aviation Administration) after the first shovel was put in the ground) is we did it as a design powerplant license to be a technician here. It’s not four-year degrees build. The city, the county and the state all worked together,” he we’re looking for,” he shares. “It’s certificates and licenses you can get

January/February 2018 – BizVoice/Indiana Chamber 71 The Engine and the Facility LEAP • Fastest-selling engine in aviation history • More than 14,000 engines on order • Delivers 15% better fuel consumption than the CFM 56 (which it replaced) • About 50% lower emissions and 50% quieter • Contains 3D woven carbon fiber composite fan blades and fan case • 3D printed parts include fuel nozzles • Powers the Airbus A320neo, Boeing 737 MAX and Comac C919 aircraft • Production ramping up to more than 2,000 engines annually by 2020

GE Aviation (Lafayette) • 300,000-square-foot facility • Company investment: $110 million plus The LEAP 1B (for the Boeing 737 MAX) core is mated to the fan in final assembly (top). Stage 2 nozzle • Timeline: Plant announcement, March sub-assembly is a 12-hour process that grinds all of the assembled parts in the module to specific tolerances. 2014; groundbreaking, August 2014; construction begins, September 2014; building complete, September 2015 • Employees: 79 technicians and 21 support team/leaders (November 2017); plans to grow to 165 and 33, respectively, by end of 2018 and 300 total (230 to 250 GE employees and 60 contractors – dock operations, maintenance, security, etc.) in 2019 • Supplier base: About 400 for the LEAP engine, more than 5,000 companywide

together through whatever hurdles to ship the engines on time with high quality and on budget. It creates a more rewarding, diverse environment for employees.” Data analytics are an important skill for GE Aviation workers. Matteson ties the talent and teaming approach to the technology. “Schools are very good at focusing on the technology, but we need the data analytics because the equipment is smarter. We’re on out of high school, you can get out of the to get more women involved and we’re that bleeding edge with this shop. It’s the military, you can get out of a two-year degree working to do that. We participate in the Internet of Things. It’s great to have a lot of program. There are a lot of paths to do it. community and workforce, workforce, things tied to the internet, i.e. our engines, There is a huge demand and they (the jobs) workforce is what we talk about.” but unless you can do something with the pay really well. We need more and the Teaming is how the talent, once in place data (he reports that less than 1% of the industry needs more.” and trained, gets the job done. Matteson says available data gets analyzed), you can’t covert GE Aviation is using social media it’s a way to transform a business to be it into actionable things so you can make channels to reach potential employees modern, adaptable and possess an smarter decisions faster.” currently in other fields or even in other entrepreneurial spirit. He elaborates. states. Long term, “it’s getting involved in “It’s a self-directed team environment. Technical advances local schools – and I’m talking middle There are no managers, no supervisors. It’s Technology is the third piece of the “t” schools,” Matteson contends. “To effect 100% flat. Everybody reports to the plant equation. Matteson cites the latest grinding change, the decision process starts there. manager. Technicians are hired through a and torqueing equipment, vision inspection “Manufacturing has changed. The careful selection process, brought on board to and laser placement systems, and closed loop industry has changed. It’s a great opportunity train by their peers and their job is to work Continued on page 80

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January/February 2018 – BizVoice/Indiana Chamber 73 Manufacturing: Tomorrow ALL ABOUT COMPOSITES Purdue Institute Leading the Way

By Tom Schuman

R. Byron Pipes, Ph.D., points to two shelves on the bookcase in his office. They contain dissertations from students while he was at the University of Delaware (1976-1993). A third shelf features similar work from students since he has been in his current role (starting in 2004).

“The goal is to make that one bigger than those two,” emphasizes the 76-year-old Pipes, the John L. Bray Distinguished Professor of Engineering and executive director of the Composites Manufacturing & Simulation Center (CMSC) at Purdue University. “I’m at R. Byron Pipes has spent the last 14 years of his 48-year career working in composites at Purdue. the same level of productivity as I was in my 40s. If you have money and good people, you can do amazing things. And we do.” The office where this interview takes place and the accompanying CMSC space total 32,000 square feet of the Indiana Manufacturing Institute (IMI). The building, completed in 2016, is part of the expansive Purdue Research Park that is located a few miles north of the main West Lafayette campus. “This is owned by the Purdue Research Foundation. It’s not on the campus, yet I am a campus entity,” Pipes explains. “I like to think of it as the first time we put an academic unit out in a building where you can’t tell whether they’re industry or academic.” Below are insights from Pipes, who Students are able to engage in hands-on learning at the Indiana Manufacturing Institute (IMI). proudly notes his 50th year of working in the composites space will be 2019. “There are others who have been at it longer, but not was half the cost, much more durable and easier fiber are right in the mix and they’re coming too many,” he proclaims. to use. For U.S. weapons systems, there is a next. From 2005 to today, it’s been the huge investment in carbon fiber systems automotive era. The electric vehicle, for BizVoice®: When has the greatest today. That’s the first era – 1965 to 1985. range, has to weigh less. It has to. progress been made in the area of composites “The next step was commercial aviation – “Here (at the CMSC) today, we do (most simply defined as a material made from small planes at first. Then Boeing developed aerospace but we do mostly automotive.” two or more different materials that, when the 787, the Dreamliner. Its wings, fuselage, combined, is stronger, lighter weight and/or tail were all composites. There was very little BV: What does this new facility allow possesses other advantages than the individual metal in those airplanes. The commercial era you to do? elements)? was primarily 1985 to 2005 and it’s still ongoing. BP: “One thing was clear to me; If you Byron Pipes: “There have really been “In 2005, as a country, we realized we brought a visitor to campus and he said, ‘I’d three eras. First, the Air Force decided it needed less weight in automobiles for fuel like to see what you do in manufacturing,’ you needed to make high-performance systems savings and electrification. Aluminum was a would go: ‘Where do I go?’ You would go out of something other than aluminum. Carbon first choice; you can buy a (Ford) F150 today everywhere. There were probably 20 sites you’d fiber was invented, in the 1960s, in Japan. It that is all aluminum. Carbon fiber and glass have to take someone to. I said, the stake in

74 BizVoice/Indiana Chamber – January/February 2018 IMI is working to attract industry partners to utilize portions of the facility that opened its doors in 2016. Space Available for Industry Partners While the CMSC occupies just over one half of the IMI, industry opportunities await in the remaining 30,000 square feet. Paul Moses, director of business and economic development for the Purdue Research Foundation, describes his role. “Basically, what I do is build bridges between smart people like Byron and industry partners – finding places to enable companies to be able to interact with these folks. We have companies that are here, not just this building but in other parts of the park, to purely get their brand in front of the super smart students who are here. “We have programs that enable students to work for them part time. It gives companies a chance to see their work ethic, their quality of work,” Moses continues. “It gives students an opportunity to put a real company on their resumé and sample their culture.” Purdue does just that throughout its system of five research the ground needs to be a physical facility that has manufacturing on the parks located throughout the state. Its offerings in office spaces and door. It’s a place to convene the community around this idea. wet labs are well known, but less so for the composites industry. “We have many visitors from industry coming to talk to us. Our “We don’t have general market knowledge about this kind of long-term goal is that they actually occupy part of this building. They space being available. Whenever you are dealing with something rent here; they live here; there are spinouts; there’s interactions. new, it can be challenging,” Moses admits. “What do they want to We’re not there yet.” do? How do they want to interact with us? Purdue is very large, thousands of faculty members. The companies we are working with BV: What are some of the ways students are benefitting? are often very large – reaching in and touching different people. BP: (In addition to Pipes teaching courses each semester in “This is a very scientific environment, but making the matches composites testing and manufacturing), “There is a lot of interest in is more art than science,” he shares with a chuckle. the young people we train. Typically, when doing research at a The open space in the Indiana Manufacturing Institute is ready university, it’s graduate students. You’re buying half their time – four to be customized for industry partners. Short-term leases of less than hours a day; the other four hours they go to class. You don’t have to a year are a possibility, providing companies with additional take loans to go to engineering graduate school if you work on a flexibility. research project. We have money to pay them; we hire them. “Most of the prospects on the board in my office are related to “We also seek out a bunch of advanced undergraduate students composites,” Moses affirms. “We just want to fill this (building) up, and employ them as research assistants and they work closely with the build another one and keep growing.” graduate students. We also have post-doctoral fellows. They come RESOURCE: Paul Moses, Purdue Research Foundation, at www.prf.org here and spend one or two years and mature as a researcher before they launch themselves into a faculty position or an industrial position.” over with another process to produce the same thing. Our idea – you BV: What is the biggest CMSC focus? build a virtual version of that … and its alternative ... and its BP: “We have interest in what piece of this puzzle do we alternative … so you can look at them and look at all the physics going dominate. Today, we have opportunities beyond basic science and one on and make the right choice. Once you have done it virtually, you’ve of them is simulation and computation. That’s the one we defined for only spent computer time. One of the reasons we have this lab back ourselves to be best in the world at – so the industry would come to here is for validation of computer simulations. It’s not for building us for that because they couldn’t do it as well as we could. We want large things; universities don’t do that well. We don’t build cars. But to build a platform where you can do a manufacturing process virtually.” we understand how they should be built or could be built. “Then we hand that off to industry. The tool they need most is BV: I’ve heard the term virtual factory used. What does that mean? the simulation tool.” BP: “In composites, there are many more options than there are in metals. Metals is bend it, form it, weld it, mold it. That’s it. On the BV: What’s next for the composites industry? other end, go to aerospace where they hand make it from this fiber- BP: “I respond to opportunity; I don’t make it. You’re asking the reinforced material. In between those methodologies, there is an wrong person to give you the future, but I will say this: The infinity almost of various choices. In the past, industry has guessed automotive industry we have today has to change significantly and the what is the best way to make it, built a prototype system, answered its electric car industry is going to be located somewhere – and that own question by doing a smaller scale trial, but has the problem by the society is going to benefit by that economic development. Right now, time it has done that, it might have chosen the wrong one (production it’s happening in California. There’s stuff going on in Detroit for sure. method). What we have to think about in Indiana is how do we get ready for the “It’s invested an enormous amount of money, but it has to start automotive industry that’s coming.”

RESOURCE: R. Byron Pipes, Composites Manufacturing & Simulation Center, at www.purdue.edu/cmsc

January/February 2018 – BizVoice/Indiana Chamber 75 FEATURE STORY DESIGNING FOR THE Furrion Aims to Reinvent FUTURE Luxury Living

By Crickett Gibbons

76 BizVoice/Indiana Chamber – January/February 2018 Manufacturing: Tomorrow

An RV with its own helicopter, helipad and hot tub is in May 2017. Furrion’s presence in Elkhart isn’t new – the company had been there for about five years – but had grown to the point of receiving the latest high-end features and updates needing more space. less than half a mile from some of the oldest travel “The ICIT is our flagship building and Furrion’s headquarters here trailers and motorhomes in the world. in the U.S.,” Fidler says. “We spent what felt like forever designing it to ensure it truly showcased what Furrion is about.” While the RV/MH Hall of Fame in Elkhart preserves Furrion has focused on improving functionality and design from its beginnings in 2004 with shore power connections, adding LED the history of recreational vehicles and manufactured lighting and ergonometric design that also increased safety, according housing, its neighbor, Furrion, is looking to the to Chase Healey, director of sales in the U.S. future of specialty vehicles at its U.S. headquarters. The company expanded into modern, high-end kitchen appliances for the RV and boating market and audio-visual components such as “Our mission is to make the future perfect – simply put, to TVs, speakers and entertainment systems. Other luxury products reinvent luxury living for a new generation,” explains Furrion CEO include electric fireplaces with smart sensors, cameras and navigation and co-founder Aaron Fidler. systems, and smart toilets and showers. The global manufacturer is working toward that lofty goal by Several products are on display in the gleaming, modern U.S. combining the latest technology with clean, modern design to produce headquarters, which is 100% solar powered, reflecting the company’s high-end appliances and luxury items for RVs and other specialty commitment to renewable energy. vehicles, yachts, and now homes and businesses. It also has helped The building’s massive, airy atrium doubles as a showroom for design and build an innovative human-piloted machine – the Prosthesis concept vehicles, which are outfitted with the company’s latest RV – for a future sport of mech racing. appliances and entertainment components. A ground-floor “country club” area is equipped with a golf simulator, Forward thinking gym, sauna, locker rooms and lounge/kitchen space. Nutrition and Furrion’s dedication to advancement is clearly visibly at its new leadership coaching is available, along with yoga twice a week and a Innovation Center and Institute of Technology (ICIT), which opened masseuse twice a month.

The global technology company Furrion opened its new U.S. headquarters, the 35,000-square-foot Innovation Center and Institute of Technology (ICIT), in Elkhart in May 2017.

January/February 2018 – BizVoice/Indiana Chamber 77 “The founders are definitely cutting edge and do things a little differently,” the Consumer Electrics Show in Las Vegas. offers Matt Petrill, vice president of operations for North America. Elysium is Furrion’s flagship example of what’s possible in luxury In a second showroom, glowing circles light up the knobs on RV living. It’s equipped with the company’s high-end appliances and home kitchen ranges. Already selling in Europe, kitchen appliances for electronics – and the rooftop Robinson R22 helicopter and hot tub. the home will launch in the U.S. during the first quarter of 2018, Petrill describes another concept vehicle, the Limitless, as a Healey confirms. Separately, four cameras feed one monitor in a new “fairly standard fifth wheel that has been ‘Furrion-ized.’ ” That means a vehicle observation system and the latest Bluetooth speaker lights up 75-inch HDTV hangs over the large electric fireplace in the living area. and floats. The kitchen is equipped with stylish, modern appliances – including a An open staircase leads to second floor office space for executives, high-end wine fridge. And the bathroom is outfitted with a smart toilet marketing and sales, and customer service, much of it minimally and shower, to name a few Furrion features. divided by floor-to-ceiling glass walls and doors. Large pop art pieces As tempting as these vehicles may be for recreational enthusiasts and seating areas add splashes of color. with money to spend, neither the Limitless nor the Elysium is for sale. A command center at the ICIT connects all parts of the business Their purpose is “to show off the capabilities, design, functionality and for live meetings, including the global headquarters in Hong Kong and technology” of the company, Healey explains.

Furrion Robotics President and Chief Technology Officer Jonathan Tippett (second from left) and other Prosthesis development team members show off the company’s human-controlled exo-bionic racing machine at the ICIT opening (Taylor Senne photo).

offices in China and the United Kingdom, Petrill notes. Nine screens Building for a future sport and a wall-sized whiteboard surround the large conference table in one Likely the company’s biggest challenge for seamless of the few rooms that can be closed off amid all the glass and windows. communication, precise engineering and technical design sits outside “The ICIT unites our designers, creative thinkers and engineers the building: a human-piloted exo-bionic machine – called Prosthesis – from all over the world and acts as the central hub for innovation,” built to eventually compete in mech racing. Fidler comments. From a distance, the 14-foot-tall invention looks a bit like an oversized toy model/Transformer robot. But this one really works, Luxury options controlled by a trained pilot inside. The exo-bionic machine amplifies Products aren’t made locally, but they are tested and designed the pilot’s motions, allowing it to walk, run and jump powered by a here. Engineers analyze prototypes that are sent to Elkhart and provide battery that can last up to two hours. feedback. Petrill adds that Furrion also receives input from companies “In a world where technology is taking over increasing amounts of that use the products and passes it along for improvement. our lives, Prosthesis celebrates the age-old pursuit of physical mastery The 45-foot-long Elysium concept RV, normally parked in the and human skill,” shares Jonathan Tippett, president and chief technology atrium showroom, was in the concept shop during a recent tour. That officer for Furrion Robotics. He created Prosthesis and is its main test pilot. team needed to update it prior to the January RV show in Florida and “It was inspired by the same impulse to push the boundaries of athletic

78 BizVoice/Indiana Chamber – January/February 2018 performance that drives any sport, but uses cutting-edge technology to take that to a new level.” Tippett and his team are working to refine the mech, running it through its paces at ICIT before building a second one. “After 12 years of R&D, we are now well into our pilot training program, but nothing like this has ever been attempted before, and we are pushing the boundaries of technology and human skill simultaneously,” he reveals. “With safety being paramount, we are proceeding with baby steps towards a race-ready machine.” The project is backed by a Vancouver- based educational charity, the University of British Columbia, corporate sponsors and volunteers. Furrion provided funding to build the Prosthesis. Furrion’s highest-end gadgets and luxury products are displayed inside the Elysium, a 45-foot concept motorhome said to be worth $2.5 million. It is featured at various shows and events. Finding a way to pick up and transport the whopping 8,000-pound mech has been the biggest challenge to date for the Furrion That attitude is what Furrion is all about. “We have a long list of exciting new concept shop team. “We look for innovative people. People product developments in the pipeline,” Fidler Brendon Jhala, the lead concept shop who are creative with a positive attitude,” replies. “We are working aggressively to technician, says, “We sat down as a team and Petrill discloses, adding, “We try to have expand into new countries and grow our thought about it. At first it seemed some fun while we do the work too.” global infrastructure to support new product impossible, but we got together and made it So what’s next – other than refining the categories.” happen. We were excited it worked.” mech racing machine?

RESOURCE: Furrion at www.furrion.com

Future Focus Continued from page 68 the skilled workforce they need. It felt like we were not taking the workforce development with officials at the federal level. initiative to fix that,” she recalls. “There’s very little funding available at the national level for “I would say the burden is on the manufacturers and the workforce development and what there is goes through workforce responsibility is on the manufacturers to generate their own workforce investment boards, which is confusing,” he notes. and that’s what we’re doing, with considerable success.” Tax credits for companies training or retraining workers would Frohlich says he has a poster in his office that boasts “$90,000 to have a long-term, positive effect, Fledderman says. start” for the Steelworker of the Future program at ArcelorMittal. “It upskills the people and raises wages. It’s an investment that “You read the fine print and they want them to get a two-year would be repaid a number of times over in my opinion,” he adds. associate’s degree in advanced manufacturing. They set up their own Jones cites two federal-level issues that could make an impact for training facility and are rolling out about 30 or 40 young people now,” he manufacturing. says. “But the hook is the $90,000 to go. … That number is not that “I’m not sure there is anything that could favor Indiana (from a federal crazy. Around Batesville or Cincinnati, it’s not that way, not the $90,000, policy standpoint), but for the sector in general, probably the biggest but people are talking $60,000 or $70,000 to start in their early 20s.” area would be tax reform. And then regulatory reform a close second. That could include a number of things: EPA, as well as health care,” he offers. International footing, national needs Jones notes the survey now asks manufacturers to gauge their Walker is president of the Japan-America Society of Indiana. own health. TASUS is one of the 290 Japanese-owned companies in the state. “Every year, the percentage that report themselves as ‘challenged’ “We have nearly 55,000 employees employed by those Japanese- has shrunk,” he says. “To me, I think that’s one of the most optimistic owned companies. We’re the only state in the United States that has things, that barometer. Most said they were stable and healthy.” three Japanese (automotive) OEMs (original equipment Fledderman also highlights supportive state leaders, as well as manufacturers). That’s a huge coup,” she asserts. Indiana’s investment in infrastructure, as reasons for optimism. “We are an extremely internationally-based manufacturing state. “There is no place in the country I’d rather be a manufacturer In comparison to our neighbors east and west and north and south, we than Indiana,” he contends. “We have representatives that get it, they have great global representation in our state.” care about the state. The consequences are unintended, a problem Fledderman recently traveled to Washington D.C. to discuss created from our success.”

RESOURCES: Jody Fledderman, Batesville Tool & Die, at www.btdinc.com | Melanie Walker, TASUS Corporation, at www.tasus.com | Steve Jones and Mark Frohlich, Kelley School of Business at Indiana University, at www.kelley.iupui.edu

January/February 2018 – BizVoice/Indiana Chamber 79 GE Aviation Continued from page 72 need in terms of service – which helps us keep the engines on wing longer, minimize the work scopes and turn the engines faster to get them back to the fleet.” This is part of what GE calls the Brilliant Factory – defined as “boosting productivity by reimagining the way we design, manufacture and service products.” In regard to the vision inspection system, Matteson says it has evolved to the point where a “robot can go around and take pictures of various aspects of it, compare the pictures to a known master and literally inspect the engine. It can tell if the wrong bolt is in by length, if a washer is missing, if a bracket is slightly positioned wrong. It’s driving to the next level the near perfect engine.”

Economic impact The return of the number three – Lafayette will be one of a trio of sites doing maintenance, repair and overhaul of the LEAP engines – and the ongoing work will provide an economic boost to the area. “People from all over the world are traveling here, whether it be regulators, customers, support folks to work with us on their engines or (better) understand how to support their engines,’ Matteson confirms. And did we mention three? Lafayette and Durham are the two GE facilities that are currently combining to produce half of the CFM International LEAP engines. CFM is a partnership between GE and Sub-modules are being assembled to create a LEAP 1B core. Safran Aircraft Engines, which is responsible for other engine components including the low-pressure system, fan and turbine. The third location heating and cooling as some of the attributes in place. What results is for final assembly is at Safran facilities in Villaroche, France. beneficial for all involved. Thus, the critical importance of the direct flight announced in “All that produces a vast amount of data that goes into the engine 2017 and scheduled to begin in May from Indianapolis International data records. Essentially, we are building a “digital twin” (a GE term) Airport to Paris. of each engine. That digital twin is a replica of the engine when it ships “We’re a global business. Seventy-three percent of the content is here,” he conveys. “When it goes into service. we monitor it in flight. from the U.S. and 75% of the engines export,” Matteson discloses. We download the flight data management system – we know how the “We have to get these modules across the ocean. We move all these pilots flew it, where they flew it, how they treated the plane. We things by air. It’s no accident we worked so hard to get that Delta download the weather satellites. flight to Charles de Gaulle (the largest airport in France).” “With real-time data coming off the engines, we can model what Big business. Global. With Lafayette’s GE Aviation playing a the engines are doing and we can be predictive in what the engines pivotal role.

RESOURCE: Eric Matteson, GE Aviation, at www.geaviation.com

Wolf Mattress Continued from page 45 The company is also vertically integrated. It has a fiber division and manufacturers many of the components of the mattresses and sells those components to other manufacturers (furniture sector and beyond) and the RV industry. It’s location in Fort Wayne also is key. “Indiana is an incredibly stable financial platform,” Tony Wolf notes. “Indiana is truly run for business and is well set up for business, and I don’t think that should ever be underestimated. And geographically, Fort Wayne is wonderful. With the new things Fort Wayne is doing and A Wolf Mattress photo from around 1900 features three Wolf “craftsmen” (from left): Mr. quality of life here and cost of living here is Strongman, Mr. Hartman and Mr. Bleeke. Strongman drove the wagon that was used to extremely important to us – not just for us but our deliver mattresses at that time. families that work for us.”

RESOURCES: Tony and Beth Wolf, Wolf Mattress Corporation, at www.wolfcorp.com

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