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.

Indiana Governor Mitch Daniels recently made the claim, "Indiana is becoming a location of choice for companies in the renewable energy industry." As a director of research, I reject broad, sweeping claims -- particularly those made by politicians -- unless they are backed up with credible data. It's a "show me the numbers" approach that would make any high school forensics/debate teacher proud.

Governor Daniels, it seems, has the numbers on his side. Hoosiers are already benefiting from an emphasis on alternative fuel vehicles and clean-tech or renewable energy. From 1998 to 2007, the number of sustainable energy jobs in Indiana grew by 17.9 percent, nearly double the growth rate of the rest of the United States, according to The Pew Charitable Trust.

PHOTO CAPTION: Indiana Governor Mitch Daniels (left) and Charles Gassenheimer, chairman and CEO of Ener1, the parent company of Indiana company EnerDel, pause for a photo together inside one of EnerDel's manufacturing facilities. Gassenheimer is holding one of the company's lithium-ion battery cells.

Furthermore, consider these recent announcements:

• Lithium-ion battery maker EnerDel will locate its newest manufacturing operation in Hancock County (within the 10-county Indianapolis region) and create hundreds more jobs than originally projected. EnerDel, a developer of batteries and energy storage systems for hybrid, plug-in electric and electric vehicles, will soon have more than 1,400 employees working at three Indianapolis region locations.
   
• THINK, a leading international manufacturer of pure electric vehicles, plans to locate its North American production facility in Elkhart, Ind., creating more than 400 jobs by 2013.
   
• Delphi Corp., a global electronics maker, will establish a new production facility in Kokomo, Ind. (just north of the Indianapolis metro) to manufacture products for the electric drive vehicle market, creating an estimated 190 new jobs by 2014.
   
• White Construction Inc., a contractor for renewable energy projects throughout North America, will expand operations and build its new headquarters in Clinton (between Indianapolis and Chicago), creating up to 70 new jobs by 2012.
   
• According to the American Wind Energy Association, Indiana is a leading state in adding new wind capacity -- ranking second in the nation in 2009 and first in 2008.

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.

INDIANAPOLIS (Dec. 24, 2009) -- The Indianapolis region has been chosen as one of three finalists for the new world headquarters of a multi-billion dollar international toy manufacturer and distributor, the Indy Partnership announced today. 

                "While we can't publicly identify the company, due to a clause in our confidentiality agreement, we can tell you that we're thrilled to have ended up on the company's 'nice' list," said Indy Partnership President and CEO Ron Gifford.  

                The company realized last year that it had outgrown its existing location in the northern hemisphere. "Twas the night before Christmas, which is traditionally our busiest time," said Will "Buddy" Keebler, director of Elfonomic Development and company spokesman for the project.  " It became clear that our current facilities were like a bag of misfit toys."

                To find a new home, Keebler said the company made a list, checked it twice, and relied heavily on the Indy Partnership's award-winning website to find out which places would be nice.

                The Indianapolis region presented several assets that could meet the company's unique manufacturing and logistics needs.  "We operate an extensive global logistics operation,"  noted Rudy Cervidae, team leader for the company's extensive global logistics operation. "If you ask me, with jewels like the world's second-largest FedEx hub, major distribution centers like Amazon.com, and a great airport, Indianapolis is likely to nose out the competition." 

                Rudy's face also lit up when he talked about being so close to Purdue's Veterinary School. "Although I can't disclose why, some of our team were prancin' and dancin' when they heard about that," he glowed.

                The toy maker was also impressed that central Indiana is home to the most productive manufacturing workforce in the Midwest. "While our workforce might look small, they are extremely talented and efficient, " Keebler observed. "You certainly have an abundant supply of talent to join our workshop associates."

                Indianapolis has some unique characteristics that favor it. "When you spend as much time in shopping malls as our boss does, you can't underestimate the value of being down the street from the headquarters of the Simon Property Group," Keebler said. "Plus, the whole 'World's Largest Christmas Tree' thing on the Circle -- talk about brand alignment!" 

                Easy access to southern Indiana's plentiful coal supplies also caught the company's eye. "Sadly, coal delivery has been a growing part of our business," Keebler lamented.

                The State of Indiana has put together a very attractive incentive package in an attempt to lure the company here, according to Indiana Secretary of Commerce Mitch Roob. "While I can't talk about what's on the company's wish list, let's just say we put out some serious cookies and milk on this one," Roob noted.  Governor Daniels also met privately with the company's founder and chairman, but Roob would not disclose what the Governor asked for. Roob also denied that the Governor sat on the old man's lap, noting that the Governor hasn't done that since he was 9 years old.  

                The company expects to make a final decision after the holiday season. The other two finalists for the site are Santa Claus, Indiana and Bethlehem, Pennsylvania.   Although Santa Claus is considered a sentimental favorite, most observers are skeptical about the Pennsylvania site. According to local site consultant Larry Grinch, "It would take a miracle for this baby to end up in Bethlehem."  

Published: Friday, 6 Nov 2009 -  CNBC just completed a study on "Best Cities to Find a Job" and Indianapolis is ranked 8th.  CNBC specifically highlights central Indiana's Life Sciences and Medical Device Manufacturing industries as bright spots.

The report, released by employment Web site CareerBuilder.com, ranked the top metro areas with the most job postings on the site between January and October 2009.

 “The cities that are more economically diverse and have a variety of industries” have the most jobs available, said CareerBuilder.com spokesperson Jennifer Grasz.

"The Indianapolis Region also has and advantage from the perspective of employers in clean energy, defense, automotive, and information technology," said Matt Waldo, Director of Research and Information for Indy Partnership.  "More highly skilled workers are available now in central Indiana than ever before, and at a competitive cost - and we'll quantify that for you," he continued. 

Check out all that the Indianapolis Region has to offer here.

The CNBC report may be accessed here.

Purdue to find game changing way to produce biofuels

The center will investigate methods to bypass the currently used processes involving biological fermentation, reducing the need for large and expensive biorefineries and expanding the range of biofuels beyond ethanol.

The Department of Energy also chose Purdue's project as one of 16 that will be funded by President Obama's American Recovery and Reinvestment Act.

The five-year project to develop direct conversion technologies of plant biomass to fuels will create at least 20 new jobs for students, postdoctoral researchers and professional staff in Indiana and another eight jobs at partner institutions, said Maureen McCann, the associate professor of biological sciences who leads the project.

"This center will not only build the knowledge base that will give us a new generation of technologies in energy research for future implementation, but also has the potential to impact work force opportunities," she said. "New jobs are created directly through the funds given to the center, but there also will be a ripple effect as those we train go on to academia or industry and conduct their own enterprises in energy research. If we are successful in this program of high-risk, high-reward research, then it will result in job creation on a much wider scale as these new technologies are implemented into the green economy."

The Purdue center, named the Center for Direct Catalytic Conversion of Biomass to Biofuels, or C3Bio, will investigate methods to directly convert plant lignocellulosic biomass, the bulk of the plant, to biofuels and other bio-based products currently derived from oil by the use of new chemical catalysts and thermal treatments. The team aims to produce fuels that closely resemble gasoline in terms of their molecular makeup and energy density, she said.

The center team, which includes experts from the fields of biology, chemistry and chemical engineering, will study the interactions between catalysts and plant cell walls to design improved chemical reactions for the biomass-to-biofuel pipeline.

Mahdi Abu-Omar, a professor of chemistry, will co-chair the center with McCann. The research team also includes Nick Carpita, Clint Chapple, Dan Szymanski and Nathan Mosier from the College of Agriculture; Rakesh Agrawal, Nick Delgass, Fabio Ribeiro and Kendall Thomson from the College of Engineering; and Hilkka Kenttämaa, Chris Staiger and Garth Simpson from the College of Science.

The center will collaborate with the University of Tennessee, the National Renewable Energy Laboratory and Argonne National Laboratory, which have facilities capable of examining the interaction of catalysts with biomass at the atomic level, McCann said.

"The science of chemical catalysis hasn't been much applied to turning biomass into biofuels," McCann said. "We thought there was a real gap in applying a science that is the foundation of the petrochemical industry but for which very little research exists on living plants, or as we like to call them, young coal."

Most of the reactions used in the petrochemical industry, starting from oil, rely on inorganic chemical catalysts, McCann said. For example, inorganic catalysts are used to generate ethylene and propylene, which are then used to create polymers, paints and other materials.

In current fermentation technology, biological catalysts are used to break down starch in corn kernels to glucose, and living organisms, such as bacteria or yeast, also use their own enzymes to produce ethanol from the glucose. Research is being carried out to use biological catalysts to break down plant biomass as a much more abundant source of glucose and other sugars for fermentation by the bacteria or yeast.

"Biological catalysts are fragile," Abu-Omar said. " Chemical catalysts have played a critical role in providing us fuels in the 20th Century from petroleum. In the 21st Century we will need robust and cheap chemical catalysts to provide us with renewable fuels directly from biomass."

The current biological catalysts used also have difficulty in dealing with lignin, a highly complex macromolecule within the plant cell wall. Lignin prevents access to the polysaccharides in the wall that are the source of the useful glucose and xylose, McCann said.

"The fermentation technologies are only 40 to 50 percent efficient in terms of the carbon atoms you started out with in the biomass ending up in fuel molecules," she said. "We think with different catalysts, the lignin could actually be used and converted to fuel molecules. If we can use the lignin, there is the potential to double the amount of fuel from each unit of biomass. Also that fuel could be more energy-dense, more similar to gasoline, than ethanol."

Bypassing the fermentation process also could help scale down biorefinery size, she said.

"If you could use chemical catalysts or a combination of catalysts with heat, you might be able to scale down the large and expensive refineries that you need to carry out the fermentations," McCann said. "It may even make mobile hydrocarbon refineries possible, where you could take the refinery to the field instead of having to transport heavy biomass to another location."

McCann said the interdisciplinary team that draws on a variety of Purdue's strengths was instrumental in getting the award and will drive the center's success.

"With a group that combines multiple areas of expertise, ideas that are at the boundaries of disciplines start to emerge," she said. "Purdue has deep expertise in plant cell wall biology,  developing new scientific instrumentation, the chemistry of catalysis, and in thermal process engineering and the design of catalysts. In addition, we are located in Indiana, which has the necessary agricultural landscape for the development of biofuels, and great connections already exist between farmers, agribusiness, the state of Indiana and Purdue researchers. 

Purdue's long history of research in biofuels and supporting areas add to its strength, McCann said. The center has plans to establish connections with various research hubs across campus and other national research centers.

"Purdue has researchers that have been working on different aspects of energy biosciences for decades, building the foundation for the future," she said. "This center will bring together the massive amount of talented work that the university has accrued and will apply it to the next step in achieving a viable alternative energy source to finite and foreign oil."

Source:  www.Purdue.edu, May 7, 2009.

You may view other regional assets in the alternative fuels area in Indiana by clicking here.

Indiana added more workers than any other state in September, fueled mainly by gains in the hard-hit manufacturing sector.

Forty-three states reported job losses in September, while seven gained jobs, the Labor Department said Wednesday. The numbers underscore the uneven nature of the nation's economic recovery.

September shined in the Indianapolis metro area, where 7.7 percent was the lowest jobless rate since 8 percent in January. Marion County last month recorded 8.4 percent joblessness, while Hamilton County had the area's lowest rate, 6.1 percent. Madison County, at 9.7 percent, had the area's highest unemployment.

Indiana benefited from a rebound in the auto sector last month and a healthy medical device industry, said Robert Guell, a professor at Indiana State University in Terre Haute.

Auto parts and assembly plants ramped up production as General Motors, Honda and Chrysler sought to replenish inventories depleted by the popular Cash for Clunkers program, in which customers traded old vehicles for newer, more fuel-efficient models.

In September, Indiana added 4,400 jobs, an increase from August, with manufacturing posting the strongest gain with 3,000 positions. The professional and business service sectors also filled 2,900 jobs. Construction lost 3,300.

Teresa Voors, commissioner of the Indiana Department of Workforce Development, was encouraged by the added jobs but said, "It's still too early to say we have turned the corner."

Matt Kinghorn, economic research analyst with Indiana University's Indiana Business Research Center, agreed.

"It's really encouraging news in seeing Indiana make improvements and (in some sectors) really dramatic improvements. . . . It's still too early to say that Indiana is out of the woods."

Michael Hicks, director of the Center for Business and Economic Research at Ball State University, said, "For the first time in my adult lifetime, it looks like Indiana is pulling out of the recession faster than our neighbors."

Patrick Kiely, president and CEO of the Indiana Manufacturers Association, said he'll take the happy news after two years of job declines. He said the state has gained about 12,000 manufacturing jobs since dropping from 543,000 in January 2008 to 428,700 in June 2009.

"It is coming back," but "everybody's still as cautious as they can be."

Source:  Indianapolis Star (indystar.com) , 10/22/2009
You may view county-by-county unemployment rates, labor force estimates and other workforce data on the Indy Partnership website - click here.

 

• 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

• Allison Transmission
• Delphi
• EnerDel
• Magna E-Car
• Remy

The Indiana Association of Cities and Towns (IACT) announced Saturday that Indianapolis has been named an IACT Green Community.

"One of the goals of my administration is to make Indianapolis one of the most sustainable cities in the Midwest," said Mayor Greg Ballard. "Since establishing the Office of Sustainability in October 2008, we have been working hard to find new ways for the city to conserve energy and to educate both residents and business owners about the importance of a truly sustainable city and I'm very proud that we have been recognized for those efforts."

IACT launched the Green Communities Initiative to recognize communities that are implementing cost savings and promoting sustainable, economically competitive quality of life concepts, despite facing budget shortfalls. As an IACT Green Community, Indianapolis will be part of a program designed to expand educational opportunities for municipalities and create a consolidated clearinghouse of data and programs that can be accessed by cities and towns throughout the state.

"We are truly excited to be recognized as an IACT Green Community," said Karen Haley, Director of the City of Indianapolis Office of Sustainability. "This designation not only recognizes that City government is committed creating a sustainable city, but it also is a testament to our citizens who are doing their part to help make us one of the most sustainable city's in the Midwest."

To be recognized as an IACT Green Community, Indianapolis had to demonstrate commitment to sustainability and cost savings in the areas of purchasing, operations, measuring success, and sample projects.

Source: City of Indianapolis

When compared to all other states, Indiana ranks in the top 10 in 33 logistics-related categories and in the top five for almost half of those.  Maybe "Will.I.Am" from the Black-Eyed Peas was really singing about us, after all.
 

Indiana Rankings:

• 1st in pass-through interstates
• 1st in shortest distance to median center of U.S. population
• 1st in rail tons of primary metals originated
• 1st in rail tons of primary metals terminated
• 2nd in rail tons of petroleum products terminated
• 2nd in rail tons of waste and scrap material terminated
• 2nd in world's largest FedEx air hubs (Indianapolis)
• 2nd in pass-through truck tonnage
• 3rd in local freight railroads
• 3rd in total freight railroads
• 4th in Class I railroads
• 5th in local rail mileage
• 5th in rail carload
• 5th in truck tonnage
• 6th in rail tons of waste and scrap material originated
• 6th in largest cargo airports (Indianapolis)
• 6th in rail tons of farm products originated
• 6th in regional railroads
• 7th in domestic waterborne shipping
• 7th in rail tons of food products originated
• 7th in number of airports
• 8th in trucking employment
• 8th in rail tons of coal terminated
• 8th in rail tons of coal originated
• 8th in rail mileage
• 8th in rail tons of transportation equip. originated
• 8th in NAFTA exports
• 9th in freight shipped out of state
• 9th in Class I rail mileage
• 9th in rail tons carried
• 9th in freight rail employment
• 10th in rail tons received
• 10th in number of trucking companies
• 11th in rail tons originated
• 11th in rail tons terminated in NAFTA trade dollars
• 12th in transportation-warehousing employment
• 12th in interstate miles
• 15th in total foreign/domestic waterborne shipping

Check out www.Indianalogistics.com for more details about Indiana transportation logistics.

LEARN MORE ABOUT LOGISTICS IN CENTRAL INDIANA

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

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. 

• Experienced several new and interesting food dishes, some of which I can't describe more specifically than animal, vegetable or mineral.
   
• Learned that you apparently cannot get Chinese food in China: sweet and sour chicken has not been served at any meal.  I wonder if these banquets have a takeout menu . . . .
   
• Discovered that the ritual of offering formal toasts can get you pretty toasted if you aren't careful -- and that was just at lunch.

• Met incredibly interesting people at the Cummins supplier conference, the Zhejiang Chamber of Commerce in Shanghai, and the Hoosier Club reception.  Significant follow up opportunities on numerous deals.
   
• Spent a lot of time driving slowly through crowded Shanghai streets, watching as our bus driver defied the laws of physics to get the bus into places it should not have fit.
   
• Marveled at the growing Shanghai skyline and the Chinese's seeming fascination with building the tallest building in the world. 

An exceptional editorial appeared in the Indianapolis Star newspaper this morning about clean technology and advanced manufacturing in Indiana. Paul Mitchell, president and CEO of Energy Systems Network (an initiative of the Central Indiana Corporate Partnership), offers an insider's perspective on why Indiana is making so much progress in the clean-tech energy space.

Jump-start for green vehicles

President Barack Obama this month traveled to Northern Indiana to announce $2.4 billion in federal stimulus funds aimed at accelerating the U.S. green vehicle industry -- grants to companies and institutions working on advanced batteries and other components that will make it possible to put more hybrid and plug-in electric cars and trucks on our highways.

The president brought the media spotlight to Wakarusa, but he also came with $416 million in grants to Hoosier companies and universities, making Indiana the second-largest recipient of funding for advanced vehicles, behind only Michigan.

There's always criticism about how federal largess is distributed, and this was no exception: Many said that too much funding went to companies that are large and traditional, not innovative enough, already being bailed out by government. Some of this criticism is certainly valid. But I'd argue that Indiana is taking an approach that is driven by collaboration and innovation, leading to new opportunities that will be accelerated by -- but not dependent on -- federal support.

Here's an example: Six months ago three of Indiana's leading automotive companies -- Delphi, Allison Transmission, and Cummins -- announced an effort to work together to develop and bring to market a suite of technologies for light and heavy trucks. (Trucks are by far the biggest consumers of oil and source of emissions; it's estimated that one hybrid bus can save as much fuel and emissions as 40 hybrid cars.)

Recognizing that no one company has the solution to a major energy challenge like commercializing green trucks, the firms agreed to form the Hoosier Heavy Hybrid Partnership under the auspices of the new Energy Systems Network initiative. Over time this loose partnership expanded to firms including Remy and EnerDel, creating a network of companies with a clear vision and roadmap to remain, or in some cases become, leaders in green cars and trucks.

So when the federal government began investing billions in the next generation of automotive technologies, the Hoosier Heavy Hybrid Partners stood ready to respond. And they won big, with some $320 million among them (the largest share going to newcomer EnerDel, which received $118 million).

Also important is the way these Indiana companies secured their share of federal dollars. In addition to working collaboratively, they also put their own skin in the game (a rarity these days) to cover the nearly 1-to-1 match requirement, making the total win closer to $1 billion in capital invested in engineering and manufacturing. In my mind, this separates Indiana from Michigan, where the money flowed primarily to automakers already being propped up by the federal government or foreign firms being enticed by state tax credits that covered their match with more taxpayer dollars.

Lastly, Indiana's federal payday, while welcomed, is really just a down payment. Building cars and trucks is an expensive business, especially when you add the research and development investment necessary to cut oil use and emissions in half, or completely electrify the vehicles. The $1 billion being invested in Indiana is just the tip of the iceberg. And the follow-on investment isn't just federal money, although there are a number of Indiana firms (including Bright Automotive) that deserve to be on the list of winners being selected by Washington.

Far more important than the federal investment is the private investment that has been waiting on the sidelines for the tsunami of government energy dollars to subside so they can lay their bets likely doubling up on Uncle Sam in many cases. The clean technology sector saw more than $7.7 billion in venture capital investment in 2008. With this round of federal grants in place, this flow of private dollars should resume -- and smart money will find its way to the opportunities fostered by new partnerships here at the Crossroads of America.

In short, it's an exciting time to be involved in the energy and clean technologies sectors in Indiana. When you start with strong call to action from the state and a group of corporate and institutional leaders with a willingness to collaborate, the opportunities for growth and job creation are tremendous. Our recent federal windfall confirms our position as a center of innovation in green vehicles. Now it's up to us to capitalize on Indiana's opportunities across the energy eco-system -- in wind power, smart grid, biofuels, distributed power generation and more -- and stay on the cutting edge of the coming clean tech boom.

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.

President Obama visited Indiana on August 5, to announce $2.4 billion in high-tech federal grants. It turns out that $400 million is going to six different Indiana companies, the second-largest amount doled out among 25 states. Three of these grant recipients are located in the Indianapolis Region.

There are plenty of high-tech stories to tell relating to clean-technology, renewable energy, and advanced manufacturing operations in the 10-county Indianapolis Region, which is the focus of the grants. And while each individual story is newsworthy, it’s “the sum of the parts” that communicate a compelling message to the rest of the nation and the world.

That message is that Indiana has a great deal of activity going on in major growth industries – namely hybrid-electric cars, lithium-ion batteries, and other components for electric cars and “heavy hybrid” work vehicles.

I spoke with Indy Partnership President and CEO Ron Gifford about the grants this morning and he said it’s fitting that President Obama traveled to Indiana for the announcement because “we’re for real.” Not that other regions and other states don’t have quality projects underway, but few have the advantages that we’re experiencing in the Indianapolis Region.

For example, the electric car was invented in the Indianapolis Region and several of the original GM engineers who worked on the EV1 are now leading hybrid-electric car companies and suppliers making headlines here. The region’s strengths in manufacturing and advanced manufacturing are already nationally recognized as well as our strong competitive position in transportation distribution and logistics. Together with leading research universities and other post-secondary institutions (six of which just received clean-technology stimulus grants of their own) and a trained, available advanced-manufacturing workforce, the Indianapolis Region is “for real.”