Competing Smarter

Business Facilities magazine released the results of its annual Rankings Report and Indianapolis earned two spots in the Metro Cities Rankings Report.

Indianapolis ranked #7 in the "Top 10 Metro Cities for Economic Growth Potential" and ranked #8 in the "Top 10 Metro Cities with the Best Cost of Living."

Top 10 Metro Cities for Economic Growth Potential:

1. CHATTANOOGA, TN
2. ALBUQUERQUE, NM
3. SAN ANTONIO, TX
4. CHARLESTON, SC
5. CHARLOTTE, NC
6. TUCSON, AZ
7. INDIANAPOLIS, IN
8. KANSAS CITY, MO
9. OKLAHOMA CITY, OK
10. LOUISVILLE, KY

Top 10 Metro Cities with the Best Cost of Living:

1. TULSA, OK
2. MEMPHIS, TN
3. MCCALLEN-MISSION, TX
4. LITTLE ROCK, AR
5. NASHVILLE, TN
6. TOPEKA, KS
7. LOUISVILLE, KY
8. INDIANAPOLIS, IN
9. CHATTANOOGA, TN
10. KNOXVILLE, TN

Executive Outlook magazine’s summer 2010 issue ranked Indianapolis #4 in its feature on the “Top 25 Cities in the Country for Business”.

In order to identify the 25 top cities, the magazine cross-referenced current population growth, small business owner/franchise satisfaction rates, cost of living, median household income, and corporate tax burden and unemployment rates for the 52 largest markets in the U.S.

Many of the cities that ranked well, the magazine stated, rely on a fundamentally strong industry, while others remain strong due to a low cost of living.

When it came to Indianapolis, Executive Outlook credited the city as having one of the most skilled workforces in the country with a higher than average worker productivity rate.

Other supporting factors that earned Indianapolis the #4 position included:

• Indianapolis is supported by a diversified economic base
• Indianapolis-based corporations include Simon Property Group, Anthem Inc., Eli Lilly and Company, Duke Realty Corp., Hunt Construction Group and National Wine & Spirits.
• Indianapolis’ sporting events and business pack are a powerful punch to the Midwest City
• Indianapolis is situated in the agricultural region known as the “corn belt”

Top 10 Cities ranked from Executive Outlook's Top 25:

1. Dallas/Fort Worth
2. Houston
3. San Antonio
4. Indianapolis
5. Phoenix
6. Austin
7. Denver
8. Atlanta
9. Oklahoma City
10. Salt Lake City

Indianapolis has been named a leader among the country's exporting elite, according to a study by the Brookings Institution.

The Brookings Institution’s recently released study ranks the nation’s 100 largest metro areas on exports in 2008, and between 2003 and 2008.

The Indianapolis area ranks 20th in the value of exports produced in 2008 and ninth in the share of the local economy that came from exports, according to the report.

"To have that much of your (Gross Metropolitan Product) going abroad means that Indianapolis is in the export business," said Jennifer Bradley, co-director of the Brookings Institution's Great Lakes Economic Initiative. "Indianapolis is in the global economy."

Key findings from the study:

• An estimated 85,159 jobs in the Indianapolis area were supported by exports in 2008
• Nearly one in 10 jobs in the Indianapolis area rely on exports
• Currently, the U.S. imports more than it exports
• U.S. metro areas are leading the nation in export production
• Indianapolis' largest export industry is chemicals, which includes pharmaceuticals produced by Eli Lilly and Co.

Indianapolis’ major export industries:

• Chemical Manufacturing
• Transportation Equipment Manufacturing
• Machinery Manufacturing
• Royalties from Intellectual Property
• Medical Equipment
• Sporting Goods
• Jewelry
• Misc. Manufacturing

How Indianapolis compares to its surrounding cities:

Indianapolis
Annual Exports: $12.8 billion (Rank 20)
Exports as Share of GMP: 15.2% (Rank 9)

Chicago
Annual Exports: $52.9 billion (Rank 3)
Exports as Share of GMP: 10.9% (Rank 45)

Louisville
Annual Exports: $6.7 billion (Rank 44)
Exports as Share of GMP: 12.6% (Rank 27)

Cincinnati
Annual Exports: $11.8 billion (Rank 22)
Exports as Share of GMP: 12.9% (Rank 24)

St. Louis
Annual Exports: $14.6 billion (Rank 18)
Exports as Share of GMP: 12.1 % (Rank 35)

Detroit
Annual Exports: $26.9 billion (Rank 9)
Exports as Share of GMP: 14.7% (Rank 12)

Indianapolis' Export Profile Report

Read the Indy Star's article on this report
 

Robotics is growing rapidly as it has become a $20 billion global industry with nearly 9 million robots in use today worldwide. In fact, the world robot population has nearly doubled within the past four years, according to the International Federation of Robotics. As robots begin to make their mark around the world, PrecisePath Robotics’ President and COO, Jason Zeilke, believes Indiana’s resources are an opportunity and reason for the industry to make its mark in the state.

Zeilke believes that robotics is a practical tool that has the potential to increase productivity in businesses as well as allow humans to be more creative and innovative with robots doing menial tasks. With that in mind, Zeilke recently introduced PrecisePath's new automated mowing equipment initially tageted for golf courses but with potential applications ranging from construction and landscaping to painting and snow removal.

"While Indiana's robotics industry is far from established, we do several key competitive advantages that will enable this booming field to become an important pillar of our growing technology sector," he said.

Reasons why Indiana has a future with the robotics industry:

• Indiana has a growing information technology and software engineering sector
• Home to world-class engineering and computer science programs like Purdue, Rose-Hulman, Notre Dame and Indiana University
• Indiana’s solid manufacturing heritage
• Close proximity to natural customer base
• Advanced manufacturing firms are more aggressively incorporating robotic systems into their industry to improve productivity; more than one million robots currently at work in manufacturing facilities worldwide.
• Indiana is the most manufacturing-intensive state in nation by per capita income and economic output
• Indiana ranks among leaders in medical device and pharmaceutical manufacturing, where high-tech automation is necessary to meet industry standards.
• Growing defense and homeland security sector with a need for specialized robot applications

Read Jason Zeilke’s full article on Robotics in Indiana at Inside INdiana Business

Indianapolis’ Herron High School has reason to celebrate as it was named the 26^th best high school in the nation in a recent list from Newsweek magazine. The charter school located just north of downtown earned the recognition by challenging the majority of its students with college-preparatory Advanced Placement exams, designed to test entry-level college skills.

Newsweek reviewed the Advancement Placement exam participation throughout the nation’s public high schools to indicate how challenging each school is for its’ students. The challenge index was then determined as the ratio of number of AP tests given to number of graduating seniors. Newsweek honored those schools whose index was a 1.00 and above, with Herron’s index at 6.05.

But Herron is not the only recognized school in Indianapolis to make the list, as 14 out of the 28 Indiana schools listed as one of “America’s Best High Schools” are from the Indianapolis region.

Ron Gifford, President of Indy Partnership, said, “It is always nice and encouraging to see our Indianapolis schools being recognized on national lists, though no list will be able to show the big picture of the successes of all our Indianapolis schools.”

The state of Indiana also excells in higher education as it has many nationally recognized colleges and universities and more than 26 university and college campuses in the state.

• #11 School of Business – Indiana University
• #9 School of Engineering – Purdue University
• #4 Master’s of Business in Midwest – Butler University
• #1 School of Engineering – Rose Hulman Institute

The 14 Indianapolis schools ranked in Newsweek’s “America’s Best High Schools” list include:

No. 26: Herron.
No. 511: North Central.
No. 574: Zionsville.
No. 695: Carmel.
No. 1,099: Fishers.
No. 1,114: Hamilton Southeastern.
No. 1,276: Lawrence Central.
No. 1,289: Brownsburg.
No. 1,412: Pendleton Heights.
No. 1,451: Mount Vernon.
No. 1,476: Alexandria-Monroe.
No. 1,567: Center Grove.
No. 1,575: Southport.
No. 1,601: New Palestine.

The 2010 Manufacturing and Logistics Report Card from Conexus Indiana reported many positive findings for the state of Indiana. The report, compiled by Ball State University’s Center for Business and Economic Research, shows Indiana remains the strongest state when it comes to making and moving goods.

More key findings from the 2010 Indiana Manufacturing and Logistics Report Card:

• The Report Card predicts a robust economic rebound next year for Indiana’s major manufacturing cities, foreseeing a 7.3 percent growth in manufacturing income for Indiana.
• Indiana shows a sharp manufacturing recovery during the second half of 2010 and 2011. The state’s total manufacturing compensation is projected to grow by nearly $2.5 billion during this period, after falling or staying flat since mid-2007.
• Indiana ranks first in per capita income derived from foreign-owned manufacturing operations and fifth in reach of foreign direct investment (the number of countries from which the state attracts foreign investment).

 Indiana’s Top Grades:

• ‘A’ in Manufacturing; ranking first among states in share of its economy focused on manufacturing
• ‘A’ ranking Top 5 in Global Position (geography)
• ‘A’ ranking Top 5 in Tax Climate
• ‘B+’ in Logistics; ranking among the Top 10 in per capita logistics employment

Inside INdiana Business' article on the report

The flurry of activity during the Indianapolis 500 Mile Race weekend included nearly 100 U.S. and Chinese auto executives and government officials coming together for the first U.S.-China Advanced Technology Vehicle Summit in downtown Indianapolis.

The event was produced by the Energy Systems Network (ESN), an initiative of the Central Indiana Corporate Partnership and a sister organization in Indiana economic development to Indy Partnership. ESN is focused on the development of the energy technology or “clean-tech” sector.

The weekend concluded with many signed deals, promising future partnerships and more business opportunities for Hoosier automotive companies.

Indiana participants in the Summit included:

• Allison Transmission
• Cummins
• Delphi
• EnerDel
• Remy International

The Indianapolis region is home to nearly 2,000 Indiana information technology firms, and IT executives predict that number to rise with the completion of another new state-of-the-art data center being built by LightBound on the west side of the city of Indianapolis.

President Jack Carr of LightBound said the new data center will be an asset to Indiana site selection and has the potential to bring more software service providers and even other leading IT targeted companies such as ExactTarget to the Indianapolis Region.

ExactTarget, a fast growing IT company with roots in e-mail marketing, will be a major tenant in the new data center. ExactTarget COO Scott McCorkle said the new facility was a critical aspect of ExactTarget choosing to expand and invest in Indiana and the Indianapolis Region.

PHOTO CAPTION: The new LightBound data center, located on the west side of Indianapolis at 650 West Henry Street.

This 47,000 sq. ft. state-of-the-art data center is tornado proof; has the latest power, cooling and communications technologies; and is a Tier IV facility, meaning it guarantees 99.995 percent availability and is designed to host mission-critical computer systems. When it comes to data centers, there are different types or levels, and each is classified in terms of tiers being either a I, II, III or IV Tier. The higher the tier, the higher the accessibility.

Indiana and Indianapolis region IT executives are eager and excited for this new data center to further stimulate the growth of Indiana information technology. this excitement was captured in a recent press release from TechPoint, an initiative of the Central Indiana Corporate Partnership and a sister organization in technology-related Indiana economic development to Indy Partnership:

Despite last year being the worst year in more than a decade (since 1997, to be exact) for venture capital nationally, investors are betting on Indiana’s high-tech entrepreneurs, with Indiana growing in total revenue investment by nearly 70 percent over 2008, which surpassed 2007 by 40 percent, according to the PricewaterhouseCoopers National Venture Capital Association Money Tree Report.

“The latest Cyberstates report from the TechAmerica Foundation shows that the state added tech jobs during the downturn, even as the rest of the private sector was making cuts,” said Jim Jay, president and CEO of TechPoint. “When the rest of the economy starts catching up, Hoosier high-tech companies will be leading the way.”

Read the INside Indiana Business Article and learn more about Indiana information technology.

The U.S.-China Advanced Technology Vehicle Summit event is being produced by the Energy Systems Network (ESN), an initiative of the Central Indiana Corporate Partnership and a sister organization in Indiana economic development to Indy Partnership. ESN is focused on the development of the energy technology or “clean-tech” sector.

ESN distributed the following press release on the event:

First U.S.-China Summit on hybrid and electric vehicles set for Indianapolis

Summit hosted by Energy Systems Network offers “unprecedented” opportunity for Indiana companies in global vehicle manufacturing market

(INDIANAPOLIS, Ind., May 24, 2010) Executives from Energy Systems Network joined Governor Mitch Daniels and officials from the Consulate-General of the People’s Republic of China (Chicago) to announce that Indianapolis will host the first U.S.-China Advanced Technology Vehicle Summit Thursday and Friday (May 27-28).

The Summit will bring together a delegation of Chinese automakers and Indiana manufacturers of components for hybrid and plug-in electric vehicles to share information and explore potential business relationships that could result in new opportunities for Hoosier firms and future foreign investment in the state. The event is hosted by the Energy Systems Network, a non-profit organization focused on growth and commercialization within the clean technologies and energy sectors.

China represents the world’s fastest-growing market for electric vehicles, projected to grow its global market share from less than 3% this year to 35% in 2020; all of the nation’s major state-owned and joint venture auto manufacturers as well as most privately-held companies are producing or have announced plans for hybrid and electric models.

“Last year, we took Indiana’s story to China for the first time.  Now, we’ll welcome our colleagues from the Chinese Ministry of Commerce and representatives from some of the country’s major automakers to Indiana for the first time.  Hoosier firms developing technologies and components for electric vehicles will have an unprecedented business development opportunity to discuss potential partnerships and joint ventures,” said Governor Daniels.

The delegation will be led by Mr. Wang Chao, Assistant Minister of Commerce of the People’s Republic and include nearly 100 Chinese government officials and automotive executives.  More than 15 Chinese auto companies will be represented at the Summit including:  FAW Group Corporation, Dongfeng, Chery, BYD, Geely, Guangzhou Automobile Group, Wanxiang Group and others, along with the Chamber of Commerce for Manufacturing Equipment and Electronics, and the China Association of Automobile Manufacturers.

“This is the largest delegation of Chinese automotive company executives and officials to travel to the United States for a historic visit with American automotive parts manufacturers,” noted Assistant Minister of Commerce Wang Chao. “We are confident the visit will result in stronger business relationships between the Chinese and American automotive companies, especially for hybrid and electric vehicles.”

U.S. participants include Indiana manufacturers Cummins, Delphi, Allison Transmission, EnerDel, and Remy. These companies represent a growing cluster of firms producing advanced batteries, engines, motors, transmissions and electronics for hybrid and electric vehicles; Hoosier manufacturers collectively attracted more than $400 million in vehicle electrification stimulus grants in 2009.

“To truly capitalize on the global market for vehicles, component manufacturers have to look beyond the U.S.,” added Joe Loughrey, Chairman of the Energy Systems Network and retired Vice-Chairman of Cummins.

“Many of ESN's member companies already do business in China,” Loughrey continued. “We hope this Summit helps advance those relationships and set the stage for new ones that together result in Hoosier companies supplying more components to Chinese companies, creating great jobs in Indiana."

Daniels will speak at a delegation welcome dinner on Thursday evening at the Eiteljorg Museum, and the U.S.-China Advanced Technology Vehicle Summit will be held at the Indianapolis Marriott Downtown beginning at 9 a.m. on Friday.

Details on media availability during the Summit and specific lists of participants will be released as they become available.

About Energy Systems Network: The Energy Systems Network (ESN) an initiative of the Central Indiana Corporate Partnership. It is a non-profit industry-driven economic organization focused on the development of the energy technology “cleantech” sector. ESN provides project development and coordination for joint ventures and cooperative partnerships between network members to bring new energy technologies to market.  ESN partners include a wide range of Fortune 500 firms, emerging technology companies, and research and educational institutions with expertise in advanced technology vehicles, distributed power generation, advanced biofuels, renewable energy, and energy efficiency.

The Indianapolis region is becoming more bicycle friendly as the city plans to add an additional 30 miles of on-street bike lanes over the next two years.

A recent Indianapolis Star newspaper article reported that the city is planning on restriping and widening several streets throughout Indianapolis to add bike lanes.

Streets being restriped to accommodate bicyclists include:
 

• 13-mile stretch of Lafayette Road to Downtown area
• All of Lafayette Road
• Most of Allisonville Road inside of I-465
• Capital Avenue and Illinois Street from Downtown to Westfield Boulevard
• Portions of East Street and Southeastern Avenue
• Stretch of Broad Ripple Avenue between the Monon Trail and Keystone Avenue.

The Indianapolis region has many other accommodations for cyclists, such as the bicycle and pedestrian only Monon Trail and the Indianapolis Cultural Trail.

The Monon Trail, which extends 16.7 miles from the town of Westfield just north of Indianapolis to Downtown Indianapolis has been serving the region since 1999. The Monon Trail serves an estimated 4,000 people a day.

Indianapolis is also in the process of finishing the Indianapolis Cultural Trail, an 8-mile biking and pedestrian trail designed to run throughout the downtown Indianapolis area. The trail is scheduled to be completed in early 2012, just in time for the city to host Super Bowl XLVI.

The Cultural Trail will connect to the Monon, as well as connect to the five cultural districts of Downtown:
 

• Massachusetts Avenue
• Fountain Square
• Indiana Avenue
• Canal and White River State Park
• Wholesale District

The trail is estimated to generate a total economic benefit of $800 million as well as create over 10,000 jobs through its construction, private-sector investment along the trail and an expansion of tourism.

Indianapolis is reported to be part of the “New Heartland” of the country, according to a recent report by Brookings Institution that studied the nation’s 100 largest metropolitan areas based on their growth, diversity and education.

In the report, Indianapolis is compared with cities such as: Atlanta; Charlotte, N.C.; Kansas City, Mo.; Portland, Ore.; and Richmond, Va., which are all reported as “New Heartland” cities as well.

But what is meant by “New Heartland?” New Heartland is one of the seven categories that the Brookings Institute divided the 100 metro areas into based on demographical data obtained from the Census Bureau’s annual American Community Survey. New Heartland cities are fast-growing, high-education areas, but have lower shares of Hispanic and Asian populations than the national average.
 

Indianapolis was reported as being characterized by its high growth, and high education, and according to the study, was one of the fastest growing areas in the Midwest between 2000 and 2008.
 

How Indianapolis compares with other "New Heartland" cities:

Population:

Indianapolis: 1,715,459
Atlanta: 5,376,285

Charlotte, N.C.: 1,701,799
Kansas City, Mo.: 2,002,047
Portland, Ore.: 2,207,462
Richmond, Va.: 1,225,626
 

Increase in population between 2000 and 2008:

Indianapolis: 12 percent

Atlanta: 25.6 percent

Charlotte, N.C.: 27 percent
Kansas City, Mo.: 8.6 percent
Portland, Ore.: 14 percent
Richmond, Va.: 11.4 percent

Diversity – Nonwhite population:

National average: 35 percent

Indianapolis: 23 percent

Atlanta: 46.8 percent

Charlotte, N.C.: 36.3 percent
Kansas City, Mo.: 23.4 percent
Portland, Ore.: 22.2 percent
Richmond, Va.: 38.1 percent

Higher education – Adult population (25+) with a bachelor’s degree:

Indianapolis: 32 percent

Atlanta: 34.6 percent

Charlotte, N.C.: 32 percent
Kansas City, Mo.: 31.9 percent
Portland, Ore.: 33.3 percent
Richmond, Va.: 30.6 percent

Median household income:

Indianapolis: $54,587

Atlanta: $60,928

Charlotte, N.C.: $55,394
Kansas City, Mo.: $56,762
Portland, Ore.: $59,044
Richmond, Va.: $58,980

David Wu, policy director for Indianapolis Mayor Greg Ballard, said in an article from the Indianapolis Star, “I think population growth is always a good sign that you’re doing something right, that people want to come there.”

The Urbanophile, Aaron Renn, an opinion-leading urban affairs analyst, communicated the same idea in his keynote address at the Indy Partnership annual meeting in April. He reported that Indianapolis is number one in population growth—by a lot, compared to its Midwest peers. In fact, Indianapolis is actually growing 50% faster than the national average.

Here is a brief excerpt from Renn's keynote speech:
 

"But more telling than population growth is a statistic called net migration. This is just what it sounds like. It’s the number of people who moved in minus the number of people who moved out. If you think about it, this is really the ultimate verdict on a city. It’s people voting with their feet about where they want to live. So let’s take a look. Indianapolis is number one again. I’m beginning to notice at trend already. A net of almost 65,000 people moved to Indianapolis in the first eight years of the last decade. That’s the equivalent of the entire population of [suburb] Fishers packing up from where ever they are and moving to Indy. It’s more than twice as many as the next nearest city on the list. And as you can see, the Midwest is a place most people want to move away from, but not here, not this city. Indianapolis is a place where people want to be, to plant their flag, seek their fortune, and build a better future for themselves and their families."

The Indianapolis Star article on this study

No one living anywhere near Indianapolis could imagine the nation's 14th largest city without White River State Park -- home to the Indianapolis Zoo and White River Gardens; Indiana State Museum and IMAX Theater; Eiteljorg Museum of Native American art, history and culture; NCAA headquarters and the NCAA Hall of Champions; Victory Field and the Indianapolis Indians Triple-A baseball team; The Lawn outdoor concert venue; and the Central Canal waterway.

However, without a plan developed in cooperation with the American Institute of Architects in the 1970s, the west edge of downtown Indianapolis might never have become the laudable quality of life and economic development engine that it is today.

Forty years later, Indianapolis and indeed the Indianapolis Region as a whole is at another major crossroads that will have significant and long-term impact on the people who live in the region, on Indiana site selection and Midwest economic development in general.

This time, the plan takes a comprehensive look at regional public transportation, with a blueprint developed by a task force led by Allan Hubbard, co-founder of locally based acquisition firm E&A Industries and an economic adviser to both Bush administrations. The group also included representatives of the Greater Indianapolis Chamber of Commerce, Central Indiana Corporate Partnership (the nonprofit parent organization of Indy Partnership) and Central Indiana Community Foundation.

This group evaluated transportation investments with an eye towards return on investment, using a rigorous cost-benfit model and focusing on issues like workforce mobility, transit-oriented development and neighborhood redevelopment.  (Read more about the potential economic benefits of the plan here on the Central Indiana Corporate Partnership blog.)

Major enhancements to public transit such as the proposed new in-street light rail, ground-level commuter train, and expanded bus service, bike and pedestrian paths are helpful to the economic development cause. According to an IBM study conducted for Indy Partnership, these types improvements will be viewed by SOME site selection consultants and their clients as a "key project driver," and by ALL consultants and their clients as a positive contributor to the Indianapolis region's business climate, infrastructure and living environment. 

Visit indyconnect.org or read the official press release to learn more about the proposed comprehensive regional transportation plan. Click on the map to view specific proposed routes and transportation modes.

Google introduced its Nexus One wireless phone last week at the Consumer Electronics Show (CES) in Las Vegas, and that's good news for Brightpoint North America, a global leader in the distribution of wireless devices. Brightpoint is located in Plainfield, Indiana, near the Indianapolis International Airport.

Through an agreement with Taiwan's HTC Corp. -- the original equipment manufacturer of the Nexus One -- Brightpoint will provide logistics services supporting Google's web store channel, including bundling and shipping the Nexus One to end users.

I personally worked in the consumer electronics industry for close to a decade, attended and exhibited as a manufacturer at CES, and helped to launch hundreds of consumer electronics products. In my experience, nothing kills a product faster than a.) too many bugs or outright product failures, and b.) poor logistics.

Google has a lot riding on its first foray into the wireless hardware marketplace. I would imagine bringing the Nexus One phone itself to market was a monumental challenge for an on-line, software-centric company with little experience in manufacturing (even with the help of an OEM).

With resources focused on launching a product intended to compete with the iPhone, issues with availability, fulfillment or shipping could be disastrous, since Apple has such an exemplary reputation for customer satisfaction and overall product experience.

It's testament to the strength of Indiana transportation logistics and especially to Brightpoint North America that Google and its partner HTC Corp. have chosen a company located in the Indianapolis region to play such a pivotal role in the launch of a make-or-break product.

For those unaware of the transportation, distribution and logistics prowess of the Indianapolis Region, here are a few of the more salient details:
 

• More than 50% of the U.S. and Canadian populations lie within a day’s truck drive of Indiana
• About 75% of the U.S. and Canadian populations lie within one and a half day's drive of Indiana
• The Indianapolis Region ranks first among metro areas in interstate access with four intersecting interstate highways
• Indianapolis International Airport is home to the world's second-largest FedEx hub
• Indianapolis International Airport is the eighth-largest cargo airport in North America.

LEARN MORE about transportation, distribution and logistics in the Indianapolis Region.
Read the logistics FEATURE STORY from the Indianapolis Region magazine.

Photo courtesy of Banayote Photography.