Midwest Economic Development

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.

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."  

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.

• 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

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

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

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

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

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

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

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

1.)  Let your strengths be your guide.

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

2.)  Do your homework.

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

3.)  Leverage all resources and partners assets.

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

4.)  Bring something valuable to the table.

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

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

European Trade Mission Essentials:
 

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

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

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

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

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

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

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

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

And then the fun part began.

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

And there are many, many more projects underway.

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

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

RECENT RANKINGS:

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

--A new, 1.2 million-square-foot, 40-gate terminal building featuring outstanding architecture, the ability to accept international arrivals, enhanced retail and dining opportunities and the capacity to handle growth from the airport’s current 8.2 million annual passengers.

--A new, five-story parking garage that can accommodate 5,900 cars and 1,200 rental cars.

--More than 17,000 parking spaces, including the garage and surface lots.

--Direct access from Interstate 70 just west of Interstate 465.

--The FedEx expansion will increase package processing capacity more than 30 percent, from 75,000 packages per hour to 99,000 packages per hour, at the second-largest domestic FedEx Express hub behind Memphis.

--The additional capacity is needed to meet forecast long-term package-volume growth, particularly for international shipments. FedEx operates international flights from Indianapolis to Europe, Asia and Canada.

--The expansion includes a 400,000 square foot expansion to the hub's existing sort facility and construction of a 175,000 square foot secondary sort building.

--Two maintenance buildings — including a 40,000 square-foot facility for aircraft maintenance and an 8,000 square-foot facility for ground support equipment — will push total hub growth by more than 600,000 square feet.

From an economic development perspective, the new Indianapolis International Airport is obviously of great benefit to the Indianapolis Region and its business clusters such as advanced manufacturing and transportation logistics. But its also beneficial to the other business clusters, such as life sciences, technology and motorsports because of the expansion of the FedEx hub (which is already the second largest in the world) and the improved ease of both commercial transport and consumer travel.

A few photos of the new Indianapolis International Airport provided by Rob Banayote of Banayote Photography (www.banayote.com):


















































Visit http://www.indianapolisairport.com/ to learn more.

Inaugural Real Estate Trends in Indiana Report to be released at "Emerging Trends in Real Estate" event on Nov. 18

The ups and downs and areas of opportunity within the real estate industry have great impact on economic development here in the 10-county Indianapolis Region and across the nation. As critical as superb transportation, distribution and logistics infrastructure as well as world-class workforces are, real estate issues can make or break a business relocation or expansion project.

"It is the combination of our assets that gives the Indianapolis Region its competitive advantage over the coasts and neighboring states,” said Ron Gifford, president and CEO of the Indy Partnership. “Having better access to rail service and interstates wouldn’t do us much good if our real estate rental rates were three or four times higher like they are in California and Florida, for example.

“That’s why we are supporting the Urban Land Institute Indiana as a sponsor of its upcoming ‘Emerging Trends in Real Estate’ event and why we are particularly eager to see its Real Estate Trends in Indiana Report become a successful annual resource.”

According to Area Development magazine’s 2007 Annual Corporate Survey, real estate issues were said to be “important” and “very important” by between 79 percent and 89 percent of all respondents when ranking their expansion and relocation priorities. These issues range from availability of buildings and land, construction costs, “fast-track” permitting, energy considerations and residential housing availability and costs. In fact, real estate issues account for three of the top five site selection factors tracked by the survey.

According to Matt Waldo, director of research for the Indy Partnership, the Indianapolis metropolitan area ranks as the “second most affordable” among 46 major metro areas for industrial warehouse rental rates (based on 2008 Mid-Year Market Report data from Cushman&Wakefield) and is highly competitive in Class A and Class B office space.

“The Indy Partnership was directly involved in the decision making process for seven of the 10 largest real estate lease transactions in Indianapolis from the middle of 2007 through the middle of 2008, and I can tell you with the highest degree of certainty that understanding the real estate trends in the Indianapolis Region as they relate to the nation was critical to making the argument to create jobs and invest here. The Urban Land Institute Indiana’s report will enhance our ability to continue this track record of success for our region,” Waldo said.

Learn more about the "Emerging Trends in Real Estate" event .

Cities of Indianapolis and Bloomington lead employment growth with 0.8% and 1.1% respectively in new jobs from September 2007 through September 2008.

While the 10-county Indianapolis Region is not exempt from some of the negative effects of economic woes that our nation is facing, there are positive indicators that show Central Indiana faring better than our neighbors and better than the nation as a whole.

According to data released by the Bureau of Labor Statistics and reported by the Ball State Center for Business and Economic Research, two of the largest cities in the Indianapolis Region--Indianapolis and Bloomington--experienced 0.8% and 1.1% growth respectively in new jobs from September 2007 through September 2008. Both cities are also doing significantly better than the national average in unemployment.

"The positive news is that these two cities had a net jobs gain while many cities across the nation experienced significant losses," said Matt Waldo, director of research for the Indy Partnership. "It is one of several indicators that supports and validates the efforts of the Indy Partnership, its local economic development organization partners, the Indiana Economic Development Corporation and other contributors."

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The Indianapolis Region, a 10-county economic development area in Central Indiana which includes Bloomington, Ind., provides incredible value to its residents. A study released last week by the Council for Community and Economic Research (C2ER) shows that the quarterly composite cost of living index scores for the Indianapolis MSA and the City of Bloomington are just 90.7% and 91.5% of the national average, respectively.  The composite index score incorporates metrics for housing, groceries, utilities, transportation, healthcare and miscellaneous services. 

"These data are continued positive news for companies considering relocating or expanding in the Indianapolis Region," said Matt Waldo, director of research for the Indy Partnership. "The Indianapolis economic development region offers numerous advantages for advanced manufacturing and logistics, life sciences, technology and motorsports industries among others, and the ability to extend a low cost of living to employees is critical."

The scores for each of the cost categories for Indianapolis and Bloomington, may be found on The Indy Partnership web site at

http://www.iredp.com/reportInterface/iw_p1.aspx?fsheet=qol&county=indianapolis%20region

InsideINdianaBusiness.com Report

Indiana Secretary of Commerce Nate Feltman talks about some of the state's big wins in 2007 and what helped make them happen.

For the second consecutive year, Indiana leads the nation in attracting new jobs through international investment, according to a report from IBM Global Business Services. The report puts Indiana number one per capita for international job attraction and number two overall for attracting foreign production jobs in 2007.

INDIANAPOLIS (Oct. 22, 2008) – Indiana leads the nation in attracting new jobs through foreign investment for the second consecutive year, according to the latest annual Global Location Trends report released today by IBM Global Business Services.

Released during an annual meeting of the International Economic Development Council in Atlanta, the report lists the Hoosier state as number one per capita for job attraction from international investment and number two overall for the attraction of production jobs from international companies.

"Governor Daniels's early decision to revamp our state's economic development efforts continues to pay dividends for Hoosiers," said Nathan Feltman, secretary of commerce and chief executive of the Indiana Economic Development Corporation. "The Governor's efforts to in-source jobs from around the world to Indiana compliment our efforts to retain and grow home-grown Indiana companies around our state."

The report, which registered more than 10,000 foreign investment project announcements made in 2007 across the world, includes top international investments in Indiana made in 2007 such as FoxConn, TS Tech, SMC Corporation, ArcelorMittal and others. Since 2005, international companies have invested more than $8 billion into their Indiana operations, creating more than 15,800 new jobs.

“Overall, global investment trends in 2007 show that companies are increasingly widening their investments to include more markets around the world in their efforts to access new markets, talent pools, or improved efficiency," said Roel Spee, global leader for IBM-Plant Location International. "But our study shows that the U.S. continues to be a top performer for creating jobs through new inward investments by multinational companies, and Indiana confirms its ranking among the leading states in several categories."

The latest IBM study is the latest in a series of national accolades the state has scored in economic development. Ernst&Young found the Hoosier state to be number one in winning new competitive job-creating investments from all sources when measured on a per capita basis in both 2006 and 2007.

The news of Indiana’s award-winning efforts to attract investment comes as the Indiana Economic Development Corporation is poised for a fourth consecutive year of record-breaking commitments for new jobs and investment. Since January, 130 businesses have committed to create 16,120 new jobs and invest more than $3.9 billion in their Indiana operations.

Following the governor’s creation of the agency in 2005, the state has logged three years of record-level attraction of new job-creating investment. Cumulatively since its inception, the Indiana Economic Development Corporation has worked with more than 600 companies that have committed to create more than 75,000 new jobs and invest more than $18 billion in their Indiana operations. Nearly two-thirds of all projects completed involve expansions of existing Indiana businesses.

About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Indiana Secretary of Commerce Nathan Feltman serves as the chief executive officer of the IEDC. Since Daniels created the IEDC, the state has posted three consecutive years of record-breaking commitments for new jobs. For more information about IEDC, visit www.iedc.in.gov.

Source: Indiana Economic Development Corporation