Economic Development Expertise

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

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.

European Trade Mission
Day 2 - Hannover Messe
 
With all of the passport drama of the previous day behind me, I started the morning out refreshed and energized ... and boy was I going to need a lot of energy!  My morning started with a breakfast meeting at 8:30 a.m. followed by a hectic schedule of back-to-back meetings at the trade show. 

Let me just state for the record, this is not your average trade show.  Hannover Messe is the single largest industrial trade fair in the world with over 4,000 exhibitors.  I know that may sound big, but you really can’t appreciate just how big it is unless you see it.  Literally, we’re talking about 27 halls of exhibitors -- and all of the “halls” are large buildings. 

So the Hannover complex is set up for 27 large buildings, all full of exhibitors -- some of which have spent hundreds of thousands of dollars on their state-of-the-art exhibits, not to mention the cost of shipping their equipment in for demonstrations.  The show is so big, that they have three different shuttle lines taking people around the show from hall to hall.  If you have one meeting in "Hall 3" and then your next meeting is in "Hall 20," it could literally take you a good 20 minutes to get from place to place on foot.  I learned first-hand today just how important those shuttle are!  It is truly impressive -- and this is coming from someone who has seen a lot of trade shows. 

I was so glad that we had strategically secured pre-arranged meetings with exhibitors and other companies and that we had a set agenda for my time at this trade show.  Otherwise, it would have been very easy to get lost in the sheer size of the show and become overwhelmed. 

I had meetings with eight companies today and two consulting firms.  I met with companies across the advanced manufacturing spectrum from a die casting company for the wind industry to a power capacitor manufacturer to a specialty, precision components manufacturer.   Before I knew it, it was already 6 p.m.!  The day just flew by.  All of my meetings were really good.  All eight companies will be good future prospects, and I would classify three of them as “warm” leads.  These are companies that are actively pursuing plans to establish a presence in the U.S. market, and that would be a good fit for the Indianapolis region. 

Today was certainly a great day!  It was a business development professional’s dream -- a target-rich environment with little to no competition.  Clearly, the volcano had an impact on the attendance at the show. 

As unhappy as I was that some of my Indiana colleagues were unable to join, I realized that this was also the fate of our competitors from other states and regions in the U.S.  In every meeting that I had, people were amazed that I had made it from the U.S and they were excited that I (an American) had made the journey!  This told me that 1.) Americans were scarce at the show and 2.) that I was probably one of the few U.S. economic development representatives in attendance with the exception of states or regions that are represented with foreign offices in Europe.  In fact, despite some of our cancellations, I believe Indiana was well represented because the State’s European office (contracted through IEDC) had scheduled meetings beginning Monday, through this afternoon and had advised me on other contacts I should follow up with later in the week.  Working in collaboration with IEDC, I think we will definitely cover a lot of ground at this show. 

I am looking forward to tomorrow and another full day of scheduled meetings!

Also, just for fun, I thought I would share a video I found on YouTube from a company with a presence in the Indianapolis region that is the single largest exhibitor at Hannover Messe.

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.

In partnership with fellow Central Indiana Corporate Partnership organization Conexus Indiana, I penned the following column -- now appearing on the Inside Indiana Business website -- highlighting some of the monumental clean-tech energy and Indiana advanced manufacturing success stories coming out of the first 45 days of 2010.

 

About Conexus: Conexus Indiana is the state’s advanced manufacturing and logistics initiative, dedicated to making Indiana a global leader in these high‐growth, high‐tech industries. Conexus is focused on strategic priorities like workforce development, creating new industry partnerships and marketing our competitive advantages.

Here is the column as it appears on insideindianabusiness.com:



2010 Off to a Fast Start in Green Manufacturing Success Stories

What do you get when you combine cutting edge technologies, a legacy of engineering expertise, and a rich manufacturing heritage? A flurry of good news that puts central Indiana in the driver's seat of activity to put more electric vehicles on our highways and make renewable energy a practical reality. And if the rest of the year looks anything like the first few weeks, 2010 will be known as the Year of Clean-Tech here at the Crossroads of America.

Let's run down a few of the highlights:

In Anderson, Ind., Remy International announced a new business unit dedicated solely to the development and manufacturing of electric and hybrid motors. Remy is already the largest U.S. producer of hybrid motors, and last year earned a $60 million grant from the U.S. Department of Energy as part of an initiative to fuel development of electric vehicle batteries and components.

The move could spur significant investment and create hundreds of new jobs over the next few years, and appears to already be paying dividends – Remy just announced a major contract to supply Mercedes with hybrid motors.

When it comes to electric vehicles, the "green-tech" juggernaut known as EnerDel continues to produce new jobs and investment in the Indianapolis Region, along with cutting-edge batteries. As the only U.S. manufacturer of the lithium ion batteries that power hybrid and plug-in electric vehicles, EnerDel has tapped the rich reservoir of engineering talent that created General Motors' EV1 and other groundbreaking projects here in the region. EnerDel just announced a major new manufacturing facility in Greenfield, Ind., that will ultimately employ 1,100+ -- thus expanding a footprint in greater Indianapolis that includes its northeast Indy headquarters and a battery pack assembly facility in Noblesville, just north of the city.

Throughout the state, tremendous wins are being registered in attracting clean tech manufacturing. Think North America, an electric car manufacturer, has chosen Elkhart as the site of its first U.S. manufacturing plant, joining Electric Motors Corp and NaviStar as the hub of a growing green vehicle cluster along Indiana's northern border.

Brevini Wind (in Muncie, Ind.) has earned $12.8 million in federal tax credits to manufacture gear boxes and other technologies for its massive wind turbines. Just a few weeks ago, U.S. Secretary of Energy Chu visited Columbus, Ind., to announce $54 million in federal stimulus grants to Cummins to increase engine fuel efficiency.

Like any high-tech, innovation-driven industry, the clean tech sector demands a skilled workforce. Here too, Indiana is making great strides, as the state's Department of Workforce Development recently secured a $6 million grant from the U.S. Department of Labor to help workers from other manufacturing sectors take advantage of new jobs in the clean tech space.

The Indy Partnership has aggressively pursued companies in the energy innovation and green manufacturing arenas, both here and abroad – including multiple visits to Europe and China. We plan to continue these recruiting efforts in the years to come, and the level of activity so far in January tells us that our hard work is paying off.

Download our Indiana Clean-Tech Energy Industry Report.

Central Indiana has a long-term strategy designed to strengthen our world-class clean tech sector and re-energize our manufacturing base. Our sister initiative, Energy Systems Network, is playing a leading role in making Indiana a center for energy innovation. The success stories that have marked the start of 2010 are early dividends, but we're confident the best is yet to come.

As the economic development arm for the Central Indiana Corporate Partnership (CICP) and the 10-county Indianapolis Region, Indy Partnership will be doing its part to tell this story and maximize our potential in this booming area of cutting-edge clean technology industries. In Indiana, green tech means green jobs; in other states, they're just green with envy at our success.

• Largest Life Sciences Companies (Statewide) - Available as point data on "Map Overlays"
• Manufacturing Employment (Region) - Available as county-level thematic layer
• Logistics Employment (Region) - Available as county-level thematic layer
• 2007-2008 Population Change (Region) - Available as county-level thematic layer

INDIANAPOLIS (Sept. 24, 2009) - Indiana's growing national reputation as a great state to do business has received another boost. The state moved up two places in the Tax Foundation's 2010 Business Tax Climate Index for business tax climate. Indiana is 12th overall, up from 14th in 2009, and remains the top state in the Midwest for business tax competitiveness.

The Tax Foundation is a nonpartisan tax research group based in Washington, D.C. 
 
Rankings for other nearby states include Michigan 17th; Kentucky 20th; Illinois 30th; Wisconsin 42nd; Minnesota 43rd; Iowa 46th; and Ohio 47th. In its seventh year of publication, the report measures five indexes of states' business tax competitiveness including property tax rates, sales tax, individual tax, corporate tax and unemployment insurance taxes.  The Tax Foundation presents the Index annually as a tool for lawmakers, businesses and individuals to gauge how their states' tax systems compare.

"While other states are imposing tax increases to cover budget shortfalls, Indiana's solid fiscal house and competitive tax environment have earned us national attention as a frontrunner for new jobs and investment," said Mitch Roob, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.  "While there is still much work to be done, Governor Daniels' focus on job creation and economic development continues to pay off, even during a time of national recession."
 
The Tax Foundation study is the latest in a series of national accolades the state has scored in economic development.  In March, Chief Executive magazine found the Hoosier state to be the best place to do business in the Midwest and among the top 11 states nationwide for business, according to feedback from more than 500 businesspersons and published in its annual "Best & Worst States" survey.
 
The Tax Foundation's full report is available at www.taxfoundation.org .
 

For anyone who travels frequently, you know there is a fair amount of strategizing when it comes to packing a suitcase. You don't want to pack too much, but you don't want to be left without your essentials. I think we all have our little traveling essentials, right? For me, especially when I travel to Europe, it is my comfy little black flats that go with any suit or outfit. I'm always running to my next appointment or trying to catch a train or a plane. Believe me, it is absolutely essential to have a great pair of shoes. I also have this great suit jacket that goes with anything - dress slacks, jeans - it's very versatile.

As you can probably tell by now, I take packing very seriously. Packing smart and thinking ahead means you're prepared (even for the unexpected). In fact, when I think about it, I have really been packing for this trip since mid-June (or really since last fall). Okay, so now you're really thinking I'm high maintenance! No, what I'm referring to is all of the planning and strategizing that has taken place up until now - all of the activities that go on BEFORE I pack my suitcase.

So I thought my first blog about this trip would be dedicated to the essentials. It is also a tiny peek into the process that we go through in preparing (or packing for) a business development mission.

1.)  Let your strengths be your guide.

Our primary strengths include our location, cost of doing business and workforce (among other strengths). Workforce is probably the most important. I always tell people that in Indiana, we make things and we make them well. Whether it's pharmaceuticals, vehicle engines or batteries, we have the manufacturing talent here that enables companies to be extremely competitive in the marketplace. So, we started with our strengths. Southern Germany is known around the world for its manufacturing base. The two German States of Baden-Wurttemberg and Bavaria (which basically make up all of southern Germany) are where Germany's major manufacturers are located -- including Daimler Benz, BSH Bosch, Siemens, BMW and EADS. High-tech companies account for nearly 60 percent of manufacturing employment in Bavaria alone. Though there are many large, global companies in this region, there are also a lot of small to mediums sized manufacturers that have not yet made investments in the U.S., or they may have a small sales presence only. These are the companies we want to engage.

2.)  Do your homework.

After evaluating our strengths and applying that value chain to a specific region, I then turn to our research staff. Our research department at Indy Partnership has several databases they subscribe to that track and compile data on companies around the globe. Their sources for a company's revenue growth, employment, recent investments and other important details coupled with their data analysis help me to develop a quality prospect list.

3.)  Leverage all resources and partners assets.

Partners are critical. Our targets and search criteria are less effective if we don't seek input and cooperation from other partners engaged in the similar activities with the similar goals. When working in Germany (or anywhere else outside of the U.S.), it is important to engage our state of Indiana partners with the Indiana Economic Development Corporation. Through their international office in Berlin, Germany, IEDC officials help us with outreach and securing meetings abroad. They also give us important, on-the-ground feedback about our targets. In addition to our resources at IEDC, we reach out to the private sector (our investors, stakeholders, existing industry base) and our world renowned universities who are also engaged with global players and global initiatives.

4.)  Bring something valuable to the table.

At the Indy Partnership, we like to pride ourselves on providing not just good information, but information customized to our customers and their needs.  This requires us to know a lot about our customers before we even walk into meetings. It requires us to find the messages and information that are specific and will be most important and compelling to our target clients. It also requires us to be good listeners and follow up in a timely fashion.

Any business development trip, whether it be domestic or abroad takes a lot of preparation and a lot of hard work. It is a continual process that you have to keep building upon.

European Trade Mission Essentials:
 

• Comfy black flats - $40;
• Stylish, Versatile Suit Jacket - $120;
• Flying to Germany with the peace of mind that you're prepared and ready to meet your customers - Priceless

Chances are that you've probably never heard of SMC Corporation, or if you have, you probably don't know much  about the company. So you might wonder why four of us spent half a day calling on SMC's executive leadership in Tokyo.

Let me tell you something: it was time well spent. 

First, a bit of background on the company: SMC is a $6 billion enterprise; founded 50 years ago in Japan, it now has 320 subsidiaries and affiliates in 50 countries around the world. The company is the world leader in pneumatic control technology -- high tech devices increasingly found in the automotive sector, medical diagnostic equipment, food processors, machine tools and thousands of other places.

While SMC has been in the Indianapolis area since the 1970's, the company broke ground three years ago in Noblesville to establish its North American headquarters, also known as the U.S. Technical Center.  The facility employs 130 engineers and numerous support personnel in an 800,000 square foot facility just off Exit 10 in Noblesville.

So that's why four of us -- Noblesville Mayor John Ditslear, city Economic Development director Kevin Kelly, Theresa Kulczak of the Japan America Society of Indiana, and me -- paid a courtesy call on SMC Chairman Yoshiyuki Takada, President Katsunori Maruyama, and Executive Managing Director Ikuji Usui at SMC's corporate headquarters in Chiyoda-ku, Tokyo.

Mr. Takada founded the company 50 years ago; a distinguished and soft-spoken man, he's exactly who you'd expect central casting to cast as the senior executive of a leading Japanese company. His trip to the Noblesville facility groundbreaking three years ago was his last visit to the continental U.S., although we did learn he loves to take golf vacations on Oahu.  

The meeting went great, just about as you'd expect. Mayor Ditslear did an excellent job expressing the community's appreciation for the company's presence, and offered to be of additional assistance in helping the company grow and succeed. Through an interpreter, Mr. Takada expressed the company's thanks to the community for its support. Lots of small talk, pictures, hand shakes, etc.

And then the fun part began.

Our group piled into a company van and followed the execs to Zakura, a restaurant a couple miles away. Relieved of our shoes, we were ushered into a private tatami mat room to sit around the low table (fortunately, a leg well below the table meant we didn't have to sit cross-legged for two hours).

"Would you like Western-style food or traditional Japanese fare?" Takada-san asked.

Traditional Japanese style, we quickly replied. "How about a beer?" they asked.  Ah, yes: beer, the universal language. Didn't want to be rude and make our guests drink alone, so of course we said yes. 

And then the first dish appeared. The barbeque sauce nicely highlighted the rings of the octopus tentacles as they sat on the plates before us. For just a moment, I wondered if we might not have overstated our zeal for an authentic Japanese dining experience. But what the heck; there was no going back now. With a silent shout of "banzai!" I dove into the octopus with gusto.   Quite tasty, it turns out; tastes nothing at all like chicken, but was nonetheless very delectable.

Next up: a course of blowfish. Yes: the fish that can kill you if prepared improperly.  Hmm.  I made a quick risk assessment: Takada-san was going to eat the same thing as the rest of us. It would be very bad for business if the restaurant injured the chairman of a major Japanese corporation during lunch. So I figured they'd be careful. Turns out I was right. And guess what: the blowfish did kind of taste like chicken.

Two hours later we'd gone through sashimi (tuna and snapper); soba noodles with raw quail egg; spiced beef and vegetables; green tea ice cream and sherbet. More importantly, we'd spent two hours getting to know the top management of a growing company that has its eyes on additional opportunities around the world, any of which might bring more benefit to our region. Sitting on a half billion dollars in cash reserves and with an eye toward bargain shopping in this economy, SMC Corporation might well become much better known in our community in the coming years.

We concluded a wonderful meal with new friends, and made our way back to the company van.  Our parting image was of the distinguished Takada-san and his executive leadership team, lined up on the sidewalk, bowing as our minivan pulled away from the curb.  When was the last time you saw an American CEO do that after a business lunch with strangers?

So at 8:00 o'clock this morning, the delegation boarded the bus and began the three-hour drive from Shanghai to Hangzhou. Governor Daniels called shotgun; yes, sometimes it's good to be governor. I sat next to Mayor Wayne Seybold of Marion; yes, sometimes it's good to be mayor. Anyway, I had a great conversation with the Mayor about the innovative things they're doing in his community to spur economic growth. This is his third trip to China in the past 9 months, and each time, he's following up with companies and contacts to make the case for investing in Marion. It sounds like his community has some great opportunities as a result of his hard work, and we all can benefit from Mayor Seybold's example here: be strategic, committed, and focused on the long-term. (In case you're wondering, this is an unpaid, unsolicited commercial for Mayor Seybold; I just think it's important to give credit to creative public leaders).

After sitting in Shanghai rush hour traffic for about an hour (trust me, after sitting in this stuff for two days, the traffic on I-69/I-465 each morning should be embarrassed to call itself congestion), we hit clear sailing for our next destination: Hangzhou, the capital city of Zhejiang province.

Our tour guide, a native Shanghainese, cracked us up when she referred to Hangzhou, with no sense of irony, as a small bedroom suburb of Shanghai. Small, as in only 6 million+ people living there (compared to Shanghai's 20+ million residents). 

For all of its modern ways -- nice charter bus, new highways -- China can still surprise you with a throwback to days gone by. We stopped at a rest stop after a couple of hours for a coffee and restroom break, and just as we were about to hop off the bus to grab a snack, the tour guide reminded the women to take their own toilet paper with them. Yeah, that's right, it's BYOTP in most public toilets in China. (And now you know why pocket size Kleenexes were on the suggested packing list for the trip).

So on one hand, you have to pack your own paper for a public restroom that looked like it was channeling the 1950's. But a mere 100 meters away, running parallel to the interstate, work crews were building huge concrete pilings and supports for a high-speed rail track that will connect Shanghai and Hangzhou. So here's the question that interests me: do you think they'll have toilet paper in the bathrooms of the 265-mph bullet trains that will run on those new tracks? Who knows; maybe it's just easier to hold it when you're going that fast.

I simply can't describe all the construction activity we saw on the drive into Hangzhou. At one place, at least 20 sky cranes were lined up in a row, lifting midrise office or apartment buildings of 10-20 stories each out of the ground.

We arrived at the Hangzhou Shangri-La with just enough time to grab a bite for lunch before heading over to a special event on the hotel's grounds: the public launch of Hangzhou hybrid transit buses powered by Cummins engines.

The Hangzhou Transit Company has nearly 1,400 buses -- a third of its fleet -- that are powered by Cummins diesel engines. Today the company launched 50 new buses that employ hybrid technologies along side the diesel engine, that will permit fuel savings of 20% or more. Check out the Governor's website for more coverage of this event, if you're interested.

What's the Indiana connection, other than a great Indiana company doing good things on the other side of the globe? Cummins is a key partner in the "Hoosier Heavy Hybrid" initiative, working with Delphi, Duke Energy and Allison Transmission, among others, to create heavy and medium weight hybrids. You can check out a nifty little video on the program on the Central Indiana Corporate Partnership's website. Part of my focus on this trip has been talking about that initiative and many others, including a meeting tomorrow with a Chinese auto manufacturer to talk about electric and plug-in hybrid vehicles.

One last note: today was a very lucky day in China. The number 9 is considered to be a lucky number, so the date of 9/9/09 (or 09/9/9, as the Chinese might write it -- year, date, month) will only be surpassed in 90 years as the luckiest date on the calendar. That made it a good day to get married in China. As far as I know, none of our delegation participated in that local custom today. 

• quality of life
• sense of place
• quality of people
• low taxes
• terrific business environment
• arts and culture
• sports (especially motorsports)
• life sciences and quality health care
• ever growing diversity
• proximity to great universities
• location in the country
• availability of real estate
• low cost of housing
• and just a wonderful place to raise a family

Bright Ideas

Bright Automotive is another company trying to get a foothold. Launched by people at the Rocky Mountain Institute, idealistic home to well-known energy guru Amory Lovins, Bright Automotive hopes to market a hybrid-electric van that would get six to eight times the mileage current fleet vans get.

It wants to start production in 2012 and sell 50,000 vans in 2013. Using other companies' components and its own design, Bright says it can make vans that would travel about 30 miles on a battery and as much as 400 miles on a charge and a tank of fuel.

Based in Anderson, Ind., it has collected about $20 million in support from companies like Google, Alcoa and Duke Energy. "We have hundreds of trucks," said Duke Energy spokesman Tom Williams. "We could buy as many as 200 off the bat."

But Bright Automotive, which currently employs more than 30 people, needs much more and is seeking about $450 million in loans from the Energy Department authorized by the 2007 energy bill. If the money comes through, Bright wants to ramp up to a thousand people and will employ many more at supplier companies.

Many of Bright's engineers and executives are bruised veterans of the electric car business. Bright chief executive John E. Waters was the battery pack engineer for GM's EV1, an electric vehicle briefly produced in the 1990s that inspired a loyal band of followers but was eliminated by the company. Waters is proud of the vehicle and said "my phone never rang from one customer complaining about the range or performance of the battery." The disappointment at EV1's cancellation, he said, still stings. "Those of us who lived through that are cautious about experiencing that again."

Since leaving GM, Waters has worked on lithium ion battery technology at auto parts maker Delphi and EnerDel. He developed the lithium ion battery system used in the Segway Human Transporter.

Waters says that Bright's small size is an advantage, not a handicap. He says most major auto companies have relatively small teams of 200 or so people designing cars with parts from disparate suppliers.

In Bright's case, its car's interior will be made by Johnson Controls from recyclable materials. Alcoa will provide aluminum for the rust-free exterior. Door handles and brakes will come from the major manufacturers. Bosch will provide the rear axle. Several companies are hoping to make the batteries.

Keller says Bright's business model has a better chance of success because it is planning to sell to big companies with big fleets, most of them leased. For those companies, buying an electric van is a matter of dollars and cents. And they are easier to service.

Waters adds that once a car battery needs replacing, it can still be used by utilities for the storage of renewable electricity, thus giving the used batteries some value.

"This is a mission-based enterprise that makes environmental sense as well as economic sense," Waters said.

In a news story released today by our friends at the Indiana Economic Development Corporation, a Portland, Ind. company called Sertech Heating and Air Conditioning Inc. was recently awarded a $77,000 grant from the United States Department of Agriculture to further develop its proprietary solar technology.

From the story: "Under development by Sertech Owner Wayne Blevins for nearly five years, the company's Solar Thermal Energy Storage Vessel is similar in size to a residential water heater and contains a proprietary mix of environmentally friendly chemicals that can more efficiently store the sun's heat. Sertech is using the grant to fund a feasibility study with Ball State University."

While Portland, Ind. is located just outside of the 10-county Indianapolis Region, this story is yet another example of Indiana innovation and leadership in the clean-technology, renewable energy space. There are currently more than 100 Central Indiana companies working with or developing new products and technologies that reduce our dependence on fossil fuels.

Both Bright Automotive with its 100 miles-per-gallon fleet vehicle, and EnerDel with its comprehensive hybrid-electric battery production have been making national headlines for a while now. But lesser known clean-tech energy projects are underway here, too.

Projects such as the collaboration between Cummins, Allison Transmission and Delphi called Hoosier Heavy Hybrid, which seeks to bring more cost effective light, medium and heavy duty hybrid trucks to market. And Project Plug-IN, a collaboration among auto, technology and utility companies, including Duke Energy and Indianapolis Power & Light Company (IPL). The project will build the infrastructure to support plug-in vehicles, such as "smart grid" technology that would allow Indianapolis metro commuters to plug-in and recharge their vehicles at home and in downtown parking garages.

And there are many, many more projects underway.

In fact, there is so much activity in Indiana in the clean-tech energy space and so much potential for more activity, that Indy Partnership President and CEO Ron Gifford recently made a bold statement in an address to Indy Partnership investors.

"No other region in the U.S. is better positioned to become the manufacturing epicenter for clean-tech energy compared to the Indianapolis Region," Gifford said. "In addition to our high renewable energy rankings, we offer the most productive manufacturing workforce and the best business climate in the Midwest. When coupled with our central location, our logistics infrastructure, and experienced workforce, it's hard to imagine anyone else competing on this level."

RECENT RANKINGS:

• #1 Advanced Manufacturing Technology
  The Ewing Marion Kauffman Foundation ranks Indiana as the top state in the U.S. in advance manufacturing technology.
   
• #1 Manufacturing Productivity
  The Census of Manufacturers determined that Indiana has the most productive manufacturing workforce in the Midwest.
   
• #1 Wind Energy Growth State
  The American Wind Energy Association ranked Indiana the fastest-growing wind energy state in the country in 2008 and continuing today.
   
• #2 Renewable Components Manufacturing
  The Renewable Energy Policy Project (REPP) recently identified Indiana as the 2nd best state for jobs and investment in renewable energy when normalized for population. 
   
• Twice the National Average
  Manufacturing employment makes up 13% of the Indianapolis Region's workforce, which is more than twice the national average.
   
• High Manufacturing Facility Concentration
  The Indianapolis Region has more than 375 manufacturing facilities with greater than 50 employees.