The Continuing Downtown Indianapolis Renaissance

Monday, March 1, 2010 by Matt Waldo
Aaron Renn is a prolific writer on all things urban. His blog The Urbanophile, gives particular focus to Midwestern urban issues. Last week, I read a post from Renn's blog discussing how Indianapolis is experiencing an uncommon phenomenon -- a rise in the residential population of the urban core. This led me to examine the actual data behind Renn's conclusion. 

Sure enough, the U.S. Census Bureau reports the population of Center Township rose from 139,238 residents in 2006 to 147,791 persons in 2008 -- an astounding 6 percent increase in just two years. This is even more incredible, given that the population growth rate for the entire metropolitan statistical area from 2000 to 2008 was 12.5 percent.

So I started thinking about the reasons why people have a renewed desire to live in the urban core of Indianapolis. I have lived in the Indianapolis Region for almost 18 years now, which is long enough to have seen a major transformation. The transformation is mostly due to foresight over the past few decades on the part of our local political leaders with help from the Lilly Endowment, Central Indiana Community Foundation, and key philanthropists. Realizing that a vibrant urban core is vital to the entire region, local leaders have intentionally focused development of new sports venues, libraries, galleries, theater districts, parks, and trails in the heart of downtown Indianapolis. 

Mayor Ballard's increased emphasis on fighting crime, particularly violent crime, is also paying off.  The overall crime rate in Marion County declined by 5 percent from 2007 to 2009, with violent crime declining by more than double that rate. Ballard has also renewed efforts to address vacant properties -- an historical breeding ground for crime in any region.

As we enter a new decade, I am excited to see more residential construction than ever in the downtown area. The benefits are spilling over into neighborhoods bordering the downtown area as well, like Chatham Arch, Mass. Ave., Fall Creek Place, Old Northside, and others.  Big events will unfold here over the next few years including the NCAA Men's Basketball Final Four this year, NCAA Women's Basketball Final Four in 2011, and the Super Bowl in 2012, all taking place downtown. By the first part of next year, we will have an expanded convention center that is truly competitive with the largest in the U.S. in size and amenities, drawing ever larger groups of folks to see what Indianapolis has to offer. Many people will arrive here through the architectural marvel that is the new Indianapolis International Airport terminal, which I consider to be a world-class gateway to a world-class city.

Yes, the new decade in Indianapolis and the entire Indianapolis Region looks brighter than ever. Our urban renaissance will continue to be a major contributor to our progress in the coming years.

OF NOTE: Aaron Renn, The Urbanophile, will be the keynote speaker at the upcoming Indy Partnership Annual Meeting. The event will be held on March 23 at the Toby Theatre at the Indianapolis Museum of Art and is open to the public. For more information, visit www.indypartnership.com or contact Oren Cooley at ocooley@indypartnership.com.

PHOTO CAPTION: A view from the Washington Street bridge shows the NCAA headquarters, NCAA Hall of Champions, and the nearly complete JW Marriott hotel, which stands 34 stories tall next to the newly expanded Indiana Convention Center. The Indianapolis JW Marriott will boast the largest ballroom in the chain -- fitting for the largest JW Marriott in the world.

2010 Off to a Fast Start in Green Manufacturing Success Stories

Wednesday, February 17, 2010 by Ron Gifford

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.

LEARN MORE ABOUT INDIANA CLEAN-TECH ENERGY
LEARN MORE ABOUT INDIANA ADVANCED MANUFACTURING

Indiana Garnering New Green Tech Industry Jobs, Investment

Monday, February 15, 2010 by Matt Waldo

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.

Indiana's research universities -- including Purdue University, Indiana University and the University of Notre Dame -- give us an advantage when it comes to attracting and supporting green tech companies. Indiana and Purdue universities alone graduate more than 10,000 science and engineering students each year.

These universities also have formed active partnerships around advancing next-generation battery technology and are working with industry leaders to accelerate technology transfer, curricula and research and development. This collaboration extends to Indiana’s community college network to develop new degree and training programs required to prepare Indiana workers for advanced battery technology careers.

Just as Indy Partnership has traveled to target-rich environments such as California in the U.S. and Germany abroad touting Indiana's clean-tech energy and advanced manufacturing strengths, Governor Daniels has also been aggressively recruiting renewable energy companies to our state, creating thousands of new jobs.

Additional data and more detailed information about Indiana Clean-Tech Energy is available for download in our Clean-Tech Energy packet.

Why Indiana?: Our central location, vibrant workforce, history of innovation, engineering expertise, low cost of business, and more than 100 years of advanced manufacturing success have positioned us to be a robust national hub for the electric and hybrid vehicle supply chains as well as solar and wind energy technologies.

 

LEARN MORE ABOUT INDIANA CLEAN-TECH ENERGY
LEARN MORE ABOUT INDIANA ADVANCED MANUFACTURING

The Indianapolis Region Sports Story

Wednesday, January 13, 2010 by Joshua Hall
With the Indianapolis Colts kicking off their Playoffs run this weekend, I was reminded of this video that was created for the Indianapolis 2012 Super Bowl Bid. It's a moving, energetic overview of the recent history of sports in Central Indiana with some kicking drums for good measure. Enjoy!



UPDATE: Just learned that Indianapolis is one of 18 finalist cities to host the 2018 or 2022 World Cup Soccer finals.

Indy Partnership IndyPartnership Indianapolis Makes World Cup Cut :: Indianapolis is one of 18 finalists for World Cup Soccer site in 2018 or 2022. - http://bit.ly/7R76jp

Google and HTC Corp. Rely on Indianapolis Region for Logistics Strength with New Nexus One Wireless Phone

Monday, January 11, 2010 by Joshua Hall

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.

President Obama Announces Expansion of successful Indiana Math and Science Teaching Fellowship Program

Thursday, January 7, 2010 by Ron Gifford

President Barack Obama today praised a program that will place hundreds of highly qualified math and science teachers in Indiana classrooms and announced an expansion of the program to Ohio, Michigan and up to two additional states in 2010.

The Woodrow Wilson Indiana Teaching Fellowship, created at the direction of Gov. Mitch Daniels with financial support from the Lilly Endowment and state funds, provides stipends to prospective teachers who agree to spend a year in exemplary teacher education programs and teach for three years in low-income rural and urban secondary schools. 

“America’s leadership tomorrow depends on how we educate our students today, especially in science, math and engineering,” said President Obama. “That’s why I’m pleased to announce the expansion of our “Educate to Innovate” campaign today and applaud the several new partnerships launched that will help meet our goal of moving American students from the middle to the top of the pack in science and math achievement over the next decade.”

“The Wilson Teaching Fellowship is helping Indiana address a critical shortage of great math and science teachers,” Superintendent of Public Instruction Tony Bennett said. “I agree with President Obama and Secretary Duncan that providing our students great teachers is imperative to increasing academic achievement. Hoosier students will benefit greatly from having expert teachers in their classrooms through the Wilson Teaching Fellowship, and I am encouraged our state’s success means students in other states will have the same opportunity.”

Four Indiana universities were chosen to participate: Ball State University, Indiana University-Purdue University Indianapolis, Purdue University, and the University of Indianapolis.

Woodrow Wilson Teaching Fellows hold baccalaureate degrees in math or science and are high achievers, academically and professionally. They complete an intensive, field-based master’s program in teacher education at a participating university, overseen by both the university’s STEM faculty and its education faculty in cooperation with partner school districts. Fellows receive $30,000 during the Fellowship year and commit to teach for three years, with on-site mentoring, in some of the state’s high-need urban or rural secondary schools.

Interested applicants can find program and application information at http://www.woodrow.org/.  Applications for the 2010 cohort of Fellows are due on January 12, 2010.

The White House press release is available here: http://www.whitehouse.gov/the-press-office/president-obama-expands-educate-innovate-campaign-excellence-science-technology-eng
 

Hancock Regional Hospital Wins 'Best Places to Work' National Award

Wednesday, January 6, 2010 by Joshua Hall


Hancock Regional Hospital has been named one of the "Best Places to Work" by Modern Healthcare magazine. Hancock Regional Hospital President and CEO Bobby Keen accepted the award at a conference and gala in Chicago.

From the release --
Hancock Regional Hospital was well-represented at the conference, with twenty hospital associates, executives, board members and Bobby Keen, the President/CEO in attendance.  The Human Resources Department held a contest, in which ten winners were chosen to travel to Chicago and attend the conference and gala for free on behalf of the hospital.
 
“It was a fun way to celebrate our hospital’s achievement,” said Erin Brothers, Human Resources.  “We received the award because of all of our associates’ efforts, so it only makes sense that they would best represent Hancock in attending.”


News of Hancock Regional Hospital's award got me thinking about all of the exceptional employment opportunities in healthcare in the 10-county Indianapolis Region. From award-winning hospitals such as Hancock Regional, St.Vincent Hospital & Health Care Centers, Clarian Health and Community Health Network, to well-known Eli Lilly and Co, Roche, and the Indiana University School of Medicine (the second largest medical school in the U.S.), Indiana life sciences is a $69 billion industry accounting for more than 20 percent of the state taxes and about 10 percent of state employment.

You can download a list of Indiana's largest life sciences companies from the Indy Partnership website, and you can map those companies in the Indianapolis Region using our advanced GIS mapping tool through Indy InSite.

Also, our friends at Duke Energy and BioCrossroads have their own list and map of Indiana's life sciences companies available for the entire state of Indiana.

Below is an actual size view of the Indy InSite GIS mapping tool available for mapping employers such as Indiana's largest life sciences companies, as well as locating available buildings and properties throughout the 10-county Indianapolis Region. You can learn more about Indy InSite by reading the Indy InSite Tutorial or visiting the website.






LEARN MORE About Indiana Life Sciences

Indiana Life Sciences Gets $120 Million Education and Venture Capital Boost

Monday, January 4, 2010 by Joshua Hall
Throughout the month of December, Indiana industry, university and community leaders have joined forces to make our proverbial life sciences cup "over-floweth" with two major announcements totaling $120 million in new investments.

In an Indianapolis Star newspaper editorial, David Johnson (president of Indy Partnership's sister organization BioCrossroads) and Craig Brater (dean of the Indiana University School of Medicine) lay out the details of a $60 million grant from Lilly Endowment to the Indiana University School of Medicine, and the new $58 million INext Fund. The INext Fund is spearheaded by BioCrossroads with investments from Eli Lilly and Co., the Indiana State Teachers Retirement Fund, Indiana University, Purdue University, the University of Notre Dame and the Richard M. Fairbanks Foundation.



Click here or on the above graphic to read the full editorial.

Interestingly, in our weekly Indy Partnership staff meeting this morning we had an important discussion about VALUE vs. COST and the fact that the 10-county Indianapolis Region has moved into a competitive space where the business value we offer is altogether a richer, more complete picture than just offering a low cost of doing business.

How is this relevant to the $120 million investments in life sciences education and venture capital?

From a workforce development perspective, the $60 million Lilly Endowment grant will be used, in part, to recruit, retain and advance current and emerging leaders in fields such as cancer, neurological and mental illness and diabetes. This talent pool will be conducting research and developing innovative solutions to some of our nation's greatest health challenges along side medical students and our state's likely future life sciences leaders. It is the highly skilled life sciences workforce coupled with affordable housing and commercial real estate, lower tax rates, and many other "low cost" factors that positions our 10 counties as a region of great value.

The INext Fund will invest in other venture capital funds that are focused on life sciences, which will facilitate direct investment in Indiana life sciences companies. While this alone is remarkable in today's economic environment, it is "the multiplier effect" that could have an even greater and longer lasting impact on Indiana life sciences.

According to Johnson and Brater, $155 million worth of Lilly Endowment grants from 2000-2003 were parlayed into an additional $682 million in research grant awards to Indiana University -- that's more than four times the amount of the original Lilly Endowment grants. Those grants resulted in more than 60 international patents and the creation of at least four start-up life sciences companies.

At a time when almost every state across the nation is cutting back and placing infrastructure investments (including education) on hold, there are industry, university and community leaders in Indiana charging forward with truly monumental investments that will have significant impact on the life sciences workforce and, in the long term, on Indiana life sciences innovation leadership. Now that's a value proposition that life sciences company CEOs, site consultants and corporate location managers should find very interesting.
 
LEARN MORE about life sciences in the Indianapolis Region.
 

International Toy Manufacturer Puts Indy on Short List For Worldwide Headquarters Move

Thursday, December 24, 2009 by Ron Gifford

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."  

Mapping the Green Economy in Central Indiana

Monday, November 16, 2009 by Matt Waldo
Mapping the Green EconomyHere is a map of the companies in central Indiana that the Environmental Defense Fund shows will benefit directly from federal and state "green" incentives.  A full listing of the company names is available on the EDF site here.  You can also add your company to the list at the EDF site.

Key
Green = Renewable Energy Companies
Blue = Energy Efficiency Companies

Indiana One of 11 States Coming Out of Recession; Led by Strong Life Sciences Cluster (from Stateline.org)

Thursday, November 12, 2009 by Ron Gifford
            
Thursday, November 05, 2009

Report: 11 states emerging from recession

 

 

Moody's Economy.com has found that 11 states are recovering from the recession, while Nevada remains
As the national economy starts its slow recovery, 11 states and the District of Columbia are showing signs of emerging from the recession, according to a new report.

 

Alaska, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, South Dakota and Washington, D.C., are in recovery, according to Moody’s Economy.com, an economic forecasting firm. It determines where a state is in the recession based on employment rates, home prices, residential construction and manufacturing production figures. Some or all of these indicators were stable or improving in these states.

The firm also reported that, as of September 2009, Nevada remains firmly gripped by the worst recession because these indicators are still dropping significantly due to the plunging tourism, gambling and construction industries. The rest of the states, while still in recession, have seen the pace of their decline slow down, or moderate.

Moody’s also estimated that the national recession ended in August, although the National Bureau of Economic Research, a private research firm that calculates the official dates of recessions, has yet to declare the end of the current downturn.

 “If the U.S. economic recession ended in August, then some of the states had to have ended by then or slightly before,” said Steven Cochrane, managing director of Moody’s Economy.com.

Another index developed by the Federal Reserve Bank of Philadelphia found that seven states Vermont, Ohio, Indiana, Tennessee, Montana and the Dakotas were faring better economically in September than three months before, although a Fed spokeswoman cautioned that the index was not meant to predict a state’s future performance. The index is based on unemployment rates, payroll information, hours worked in manufacturing and salary information.

 

Moody's Economy.com predicts that states with less volatile housing markets, such as the Dakotas that saw little change in home prices, will come out of the recession quicker than the rest of the nation, while states which saw larger swings in home prices will face a longer downturn.
Despite these signs that suggest the recession might be easing, most states’ recovery will lag. Cochrane said that although a state can be technically out of recession when it starts producing more goods and services, managers often wait to hire new workers until they are on firmer financial footing. So it’s not uncommon for high unemployment rates to linger even as the economy recovers.

 

“We could see unemployment rise right through the first half of next year,” Cochrane said.

And the end of the federal stimulus program could make things worse, he said. Most states have dumped billions of federal stimulus dollars into shoring up gaping shortfalls in their 2009 and 2010 budgets, but their recovery could backslide when almost all of the federal money is gone at the end of 2010. Since it takes several years for state budgets to recover from a downturn, it’s likely that states will be grappling with shortfalls even as the overall economy recovers.

Even with the federal help, some states, including California, Kentucky, Nevada, New York and Washington, struggled with the largest deficits in modern history and will continue to struggle when the money is gone and deep spending cuts have already been made.

Many of the 11 states identified as recovering were spared the worst of the downturn because their housing prices stayed relatively stable, Cochrane said. None saw the spike in foreclosures that ravaged Nevada, Arizona, California and Florida. Also, their unemployment rates, while high, have mostly stayed below the national average and have started to stabilize.

By contrast, the states slammed by the housing crisis likely have another six to nine months of recession to go, Cochrane said. Industrial states, such as Michigan and Ohio, could also lag in the recovery. Both of those states rely heavily on the auto industry, which is struggling to reinvent itself, a transition that will likely take some time and keep unemployment levels high.

The latest jobs figures from the Bureau of Labor Statistics found that Michigan still suffers the country’s highest unemployment rate, at 15.3 percent in September, where it has been hovering for the past four months. Michigan is no stranger to downturns, having never pulled out of the 2001 recession.

In Wyoming, the recession didn’t start until early this year, when natural gas prices tumbled. Employment took a nosedive. “Our unemployment rate increase in the last couple of months was the fastest in the nation,” said Wenlin Liu, senior economist at the Wyoming Economic Analysis Division. “We’ll probably not have much of a recovery until 2012, maybe 2011.”

 

The Federal Reserve Bank of Philadelphia has found seven states are faring better than they were three months ago. Among the indicators used to pick these states was unemployment. While unemployment is leveling off nationally, some states, such as Ohio, are seeing substantial declines in jobless lines while others, such as Nevada, continue to see more unemployed.
Wyoming, like Oklahoma, New Mexico and Colorado, depends on natural gas for a significant part of its economy. Until prices rise, those states will slump, Liu said.

 

Besides having relatively stable housing prices, the states on Moody’s list benefited from their own particular strengths. Energy production revenues helped states such as Alaska, Louisiana, Montana and North Dakota to stay afloat. Louisiana also boasts low business costs, ports that connect it to foreign markets, health care centers and military installations, all of which were well-positioned to weather the downturn.

Mississippi is in a similar position to Louisiana, according to Moody’s. That has allowed it to lure major investment, such as a Toyota plant in the northeastern part of the state.

Both those states are still seeing the effect of money that flowed in following Hurricane Katrina in 2005, said Sujit CanagaRetna, senior fiscal analyst in the southern office of the Council of State Governments. As that money dries up, however, those two states are in for some “rough sledding,” he predicted.

Indiana has been buoyed by a growing medical research industry focused around the state’s universities. The state’s auto industry also got a boost during the Cash-for-Clunkers program.

Meanwhile, some of the other Midwestern states, such as Nebraska and Iowa, benefited from agriculture prices, which have remained relatively high, according to the report.

In Nebraska, the downturn started later and was shallower than in the nation as a whole, said Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln. Job losses may have slowed in March, he said, but hiring still hasn’t picked up.

Agriculture plays a major role in Missouri’s economy as well, but the state’s low housing prices and diverse economy, which includes biotech research centers as well as metropolitan hubs in Kansas City and St. Louis, have kept it afloat, according to Moody’s.

Idaho’s high-tech sector continued to attract skilled workers, while its amenities and scenery draw retirees, the report said. Also, the tourism industry there hasn’t been as hard hit as in the U.S. as a whole.

In Montana, the service sector has continued to grow as has the state’s population. Low business costs have also helped weather the downturn, as has the fact that the state was one of only two to avoid a budget deficit last year.

Montana’s slump may also be over but “it still feels very much like a recession,” said Patrick Barkey, director of the Bureau of Business and Economic Research at the University of Montana. The housing bust hurt the state’s huge wood products industry and the decline in consumer spending also means the state is drawing fewer tourists. As a result, when the state’s economy starts to grow again, it will be at an anemic rate, Barkey said.

North Dakota, meanwhile, continues to hum along. The state’s unemployment rate  — the lowest in the nation  — crossed the 4 percent mark in January of this year and has held relatively steady since then. North Dakota was the only state, along with Montana, to avoid a budget deficit this year.

“Things have been going really well for us,” said Pam Sharp, the director of the state’s Office of Management and Budget. “We don’t feel like we’re in a recession, but we have lost some jobs.”

Elsewhere, in the states where the recession in moderating, according to Moody’s, state-level researchers, waiting for signs of hiring, have been wary of celebrating too soon.

“We called the bottom to the recession in Oklahoma about three months ago,” said Russell Evans, director of the Center for Applied Economic Research at Oklahoma State University. “We’re just hovering along the bottom, waiting for a recovery. It doesn’t make people feel all that much better.”

In South Carolina, the unemployment rate has dropped slightly from its June peak of 12.1 percent. It stood at 11.4 percent in August and 11.6 percent in September, according to preliminary numbers from the Bureau of Labor Statistics. That’s mostly due to discouraged workers giving up, said Sam McClary, a labor market analyst for the state’s Employment Security Commission.

“We’re trying to determine whether we’ve bottomed out or not,” he said. Although buoyed by the slight drop in unemployment, McClary was not ready to declare South Carolina’s recession over. “We’re not ready to jump on the bandwagon.”

States that have invested in high-tech industries or green energy could find themselves in an enviable position, said CanagaRetna. He singled out wind energy in Oklahoma, solar energy in Tennessee and biotech firms in North Carolina as industries that could drag states out of the doldrums. South Carolina could also benefit from a new Boeing plant that the company said it plans to open near Charleston.

“Those states that have a foothold in the area of these new emerging industries will I think be better positioned,” he said.

Russell, of Oklahoma State University, was less sanguine about his state’s wind energy prospects. “I’m probably not overly optimistic that there’s enough to create a big short-term bump,” he said.

(c) 2009. The Pew Charitable Trusts. All rights reserved.

CNBC - "Indy One of Best to Find a Job"

Monday, November 9, 2009 by Matt Waldo

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.


Indiana Attracts Much More Venture Capital in 2009

Sunday, October 25, 2009 by Matt Waldo
Through the first nine months of 2009, Indiana startups have landed $128.18 million in funding, according to the MoneyTree Report released last week by PricewaterhouseCoopers and the National Venture Capital Association.Indiana topped those other "I" states: Illinois had $115.4 million and Iowa $68.3 million over the same time. Indiana also beat out many of its Midwestern peers, including Michigan ($81.84 million), Ohio ($58.7 million), Missouri ($14.3 million) and Wisconsin ($13.87 million), according to the report.

Source:  Indystar.com, October 25, 2009.

Purdue University Highlights $20M DOE Grant at Biotech Conference

Thursday, October 22, 2009 by Matt Waldo

I had the pleasure to attend a session at the BioCrossroads conference this week where Marshall Martin and Maureen McCann highlighted Purdue's advanced biofuels research plans as part of a $20M grant from the U.S. Department of Energy.

Below is an excerpt from Purdue's May 2009 press release on this:

Purdue to find game changing way to produce biofuels

 

WEST LAFAYETTE, Ind. - The U.S. Department of Energy plans to fund a $20 million effort to create an Energy Frontier Research Center to advance work in biofuels at Purdue University.

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 Adds More Workers than Any State in September

Thursday, October 22, 2009 by Matt Waldo

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.

Indiana not only recorded a national best but reported its third straight drop in the unemployment rate, by 0.3 of a percentage point, to 9.6 percent. The state also boasted a rate lower than all of its neighbors, which had double-digit rates.

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.

 

It's A Small World When You're A Pacers' Fan!

Wednesday, October 14, 2009 by Ron Gifford
You just never know who you're going to run into at a Pacers game -- even when you're halfway around the world.  So it was a lot of fun to stop by one of the suites at Wukesong Arena in Beijing last Sunday afternoon and pay a surprise visit on Carla Liebrich and Tina Merriwether, our oldest daughter's social studies teacher and principal, respectively, at Northview Middle School.  Along with two other teachers from Northview (Ms. Krieger and Ms. Williams), Ms. Liebrich and Ms. Merriwether are part of a group of central Indiana educators traveling with Global Indiana -- a nonprofit dedicated to helping educators make connections with other schools around the world.  When the Pacers learned that the group was going to be in Beijing on Game Day, the team lined up suite tickets for all of them.  Sweet, indeed!

The Indiana delegation is participating in some cultural exchange opportunities in Beijing and Shanghai, before traveling to Hangzshou to spend time at the Hangzhou Yongjin Middle School and several other schools.  As you may know, Hangzhou recently became a sister city with Indianapolis, and is located in Zhejiang Province, the sister state for Indiana (we visited Hangzhou last month on the Governor's trade mission).

Oh, yeah, they also played a basketball game that afternoon.  The crowd was certainly into it, especially at the very end when the players tossed autographed mini-balls into the stands.

Taipei Street Scenes

Wednesday, October 14, 2009 by Ron Gifford

Now that we're back from China -- which means I have access to YouTube again -- I can load up some of the videos I made on our trip (on the video about the Great Wall, you'll hear my wife make fun of the fact that 1.3 billion Chinese don't have Internet access to my "cheesy tourist videos"). 

Taipei Street Scenes

This video is actually from Taipei, Taiwan -- some random street footage showing what life is like in that city of 2.5 million people.  The kids were extremely friendly, as I discovered when a little boy starting jumping up and down in front of my camera to get my attention.

Taipei is an interesting juxtaposition of older buildings and temples and gleaming high-rises like Taipei 101, currently the world's tallest office building.  The American influence is significant:  there are two -- yes, two -- bridges in Taipei named after General MacArthur, along with a Roosevelt Road and other reminders of the U.S.-Taiwan relationship.

The State of Indiana has a business and trade office in Taipei, ably-led by Jeff Wang, who works under the auspices of the Indiana Economic Development Corporation.  I had the chance to visit with Jeff for a little while during our trip, and he thinks there are many emerging opportunities for mutual investment between Indiana and Taiwanese companies.  We'll be watching those closely. 




A Night At The Night Market

Thursday, October 8, 2009 by Ron Gifford

Taipei is well-known for its night markets -- known locally as "streets of snacks."  Imagine a narrow street with food vendors on both sides, mixed in with little retail shops and lots of people, and that's a night market.  Our tour guide gave us this advice:  "only eat with your eyes; you might find the foods don't agree with your stomach." 

My wife and I set out with Rich and Lisa Jones to explore the night market near our hotel.  Notwithstanding our tour guide's admonition, Rich and I were determined to try some scorpion on a stick.  Perhaps lucky for us, we never found the scorpions.  Lots of feet and beaks and other unfamiliar animal body parts, but no scorpions.  I can tell you this, however:  stinky tofu is well-named.  Parts of the street just reeked with the pungent odor of this local treat.  

As unusual and different as this was for us, I can only imagine what Chinese visitors to our community might blog about if they experienced all of the food vendors on the main drag of the Indiana state fair on a Saturday night.  Just think about all the weird stuff we eat off of sticks!  If only I spoke Mandarin, I would google "deep fried twinkie on a stick" to see what showed up on Chinese reviews of Indianapolis.


State of Indiana Is Key Focus of Federal Electric Automobile Funding

Tuesday, October 6, 2009 by Matt Waldo
A study appearing in the latest issue of Site Selection magazine shows that Indiana advanced manufacturing companies have received the second-highest amount of funding from the U.S. Department of Energy for battery and electric drive manufacturing. The companies are:
  • Allison Transmission
  • Delphi
  • EnerDel
  • Magna E-Car
  • Remy
Coincidence? Not likely. General Motors developed the first battery-powered auto (EV-1) in Central Indiana decades ago. Couple historic and current innovation with more than 150,000 central Indiana advanced manufacturing workers (15% of total employment) and two of the best engineering schools in the U.S. nearby (Purdue and Rose-Hulman Institute of Technology), and you get a recipe for success in what appears to be the start of the next industrial revolution -- green technologies.   

Other alternative energy companies of note in central Indiana include Cummins, AltairNano, Bright Automotive, Brevini, Horizon, AlgaeWheel, and the list goes on. 

Read our report on the renewable energy assets in Central Indiana by clicking here.

You can see the map of federal projects from Site Selection here.

It's also worth noting that the Indianapolis Region is internationally known for the Indianapolis Motor Speedway and its Indianapolis 500 Mile Race. Indiana motorsports businesses employ more than 8,000 people at more than 400 companies in Central Indiana.

DOWNLOAD CLEAN-TECH ENERGY PRESENTATION  |  SITE SELECTION MAP

Taking It To The Hoop In Taipei

Tuesday, October 6, 2009 by Ron Gifford

I'm 6 feet tall, and when I was in China a few weeks ago, I was easily one of the tallest people on the street. 

Well, that is definitely not the case on this trip.  Guess that's what happens when you travel with an NBA basketball team.

I'm with the Indiana Pacers on their trip to Taipei and Beijing this week, and even though we've only been in Taiwan for a few hours as I write this, it's already been quite some trip.  For starters, these guys are total rock stars here, and make no mistake, Larry Bird is the lead singer as far as the fans go.  From the moment we got off the plane until we checked into the hotel, the cameras, media and fans have been everywhere, seeking autographs and photographs.

We could probably use a seismic graph as well, given the level of excitement here.  This is the first NBA game ever played in Taiwan.  Hard to believe, given the number of jerseys and other pieces of Pacers memorabilia the fans had at the hotel.  They're really into it.  I feel kind of bad, actually, as I walk through the lobby.  I think I'm just tall enough that from a distance, the fans think I might be somebody; then I get closer, and of course it's disappointing for them, and frankly, a bit embarrassing for me, when they realize their mistake and turn away.  Maybe I'll start wearing a custom-designed T-shirt that saves us both the humiliation:  "Nope: too slow, no range, can't drive to my left, no vertical leap . . . ." 

Someone asked me why I wanted to travel 16,000 to see two exhibition games.  Are you kidding me?  If I took the Indy Partnership's cumulative budget for the next ten years, I couldn't buy the great publicity these two games are going to have for our region in these two key emerging markets.  One of the things I learned on my trip to Shanghai and Hangzhou last month is that most Chinese business people have no idea where Indiana is -- and in all fairness, most Hoosiers couldn't find Hangzhou or Zhejiang Province on a map, either.  So these games, and the publicity leading up to them, will give Chinese viewers a much better sense of our community.  Although I have to tell you this:  they may not know where Indiana is, but they know that Reggie Miller played for us, and that Larry Bird is with the team now.  If you go to our Chinese language website -- www.indypartnership.com.cn -- you'll now understand why Reggie is in our marketing materials. 

I'm told that at least 50 million Chinese are expected to watch the TV broadcast of the game in Beijing next Sunday (I don't have the estimates for the game here in Taiwan).   To put that in context:  the only sporting event that gets a larger audience than that in the United States is the Super Bowl.  Monday Night Football averages about 12 million viewers.

On top of the PR from the game, the NBA is hosting a VIP reception in each city the night before the game, with the invitation list including top government and business leaders.  I'll be there, with hundreds of Chinese-language business cards in my pocket, hoping to begin conversations and relationships that lead to new business opportunities in our region.  

So the Taipei reception is tomorrow night.  We'll be doing some tours and other events around the city during the day, with the Pacers as the main act and the rest of us bringing up the entourage.  It's tip-off time for Indiana, in more ways than one.