Indianapolis Region Economic Development Blog

Blogging from Beijing

Sunday, October 11, 2009 by Ron Gifford

It's 9:30 a.m. on Sunday, and we're packing up to go to Wukesong Arena for the noon tipoff between the Pacers and Denver Nuggets. It's been a whirlwind of activities since we landed in Beijing 48 hours ago.

We left Taipei immediately after the game on Thursday night, which meant getting to the airport around midnight, with wheels up at 1:00 a.m. The Chinese government permits very few flights to fly directly from Taiwan to the mainland, and sadly, we weren't one of those. So we had to do a touch and go in Seoul, Korea before flying to Beijing. Unfortunately, we had a mechanical problem that kept us on the ground an extra 90 minutes; so instead of landing in Beijing at 5:00 a.m., we landed around 6:30 a.m. -- which put us right in the middle of rush hour. Two hours later we were finally in our hotel room.

A couple hours later, we were back on the bus for an hour and a half ride to the Great Wall at Mu Tian Yu. Much has been written about the awesome scale of the Wall: it's all true, and I won't even try to replicate those descriptions here. Instead, here are a couple of my personal memories from this trip:

In order to experience the majesty of the Wall, you take a gondola ride to the top of the ridge where the Wall is built -- probably a couple thousand feet up in elevation. But before you reach the gondola, you have to run a gauntlet of souvenir vendors, each grabbing and yelling at you, trying to get you to buy T-shirts or mugs, or a Mao hat, or postcards, or the like. That actually worked out pretty well for one of our tour companions, a prominent Indianapolis business man whose polo shirt wasn't quite warm enough for the chilly weather on the mountain. After spending time haggling with one of the vendors, he rejoined our group wearing a "I Climbed The Great Wall" sweatshirt. He claims he got a good deal on it.

After touring the wall, you have two ways to get back down: take the gondola back, or take an "alpine slide" type luge ride down. We chose the latter; and after hiking the Wall for about 2 kilometers, we came to the luge ticket booth. By happenstance, Rich and Lisa Jones and my wife and I ended up with about 10 of the Pacers and members of the power pack at the top of the luge run. Each person sits on an individual sled, which has a brake lever to control your speed (and no other controls). I barely fit on the luge sled; watching Jeff Foster, Solomon Jones and Roy Hibbert squeeze onto one was pretty humorous. It was a hilarious ride down; I'll post some pretty funny video of the trip down, once I get back home.

Traffic in Beijing is horrible. There's just no other way to say it. It feels like we've spent more time sitting in traffic jams than touring the sites. And a brown haze just sits over the city. Those of us with a touch of asthma have been spending lots of time with our inhalers.

Final thought on this post: I'll have to post pictures and video when I get back, because the Chinese government blocks Internet access to websites like YouTube, Facebook, Twitter, and other social network sites. That's a very interesting experience -- trying to log on and being denied access.

Off to the game now. Then we head straight to the airport for the 13 hour flight home. We leave 5:00 p.m. this afternoon (Sunday) and arrive home in Indy at 6:00 p.m. That will be the longest one hour flight of my life, to be sure.

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.

NBA Games Taipei Welcome Reception

Wednesday, October 7, 2009 by Ron Gifford

The opening reception for the NBA Game in Taipei just ended a few hours ago, and by all accounts, it was a smash with the local fans, who jammed the Grand Ballroom at the Shangri-La hotel.

The reception began with a traditional dance number performed by a group representing one of the native tribes of Formosa, or "beautiful island." Both teams were introduced by their respective coaches, and a handful of government dignitaries addressed the crowd. The Mayor of Taipei seemed particularly pleased to be part of the festivities, and told the audience that when he was a graduate student in Massachusetts between 1978 and 1983, he was a big Larry Bird fan. "I'm still a big fan today, Mr. Bird!" the Mayor told the crowd.

Most of the players took off after the introductions. We had dinner before the reception with Earl Watson and Dahntay Jones, both of whom said they were worn out from the long flight, as well as another one of Coach Jim O'Brien's tough practices earlier in the day. But Coach O'Brien and Denver coach George Karl hung out, signed autographs and posed for pictures.

The team has a shoot around tomorrow morning, then square off against the Nuggets at 7:30 p.m. (7:30 a.m. on Thursday in Indianapolis). The rest of us are touring some of the sites in Taipei, including a trip to the top of Taipei 101, reputedly the world's tallest office tower.

Hope you enjoy some of the highlights from the reception:

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

He's No Fellini, But They Gave Him A Video Camera Anyway

Tuesday, October 6, 2009 by Ron Gifford

I'm filming parts of our trip on my Flip video camera, so I'll make all of you the guinea pig audience while I learn how to shoot and edit on the fly here.

So we took off from Indianapolis International this morning and flew 7 hours to Anchorage, Alaska. Our video story picks up there (mainly because that's when I was able to dig the Flip out of my bags . . . note to self about "strategic packing" next time).

We changed crew and loaded fuel, and hung out for about 90 minutes in a small terminal without much to do. So you'll see many of the players just kind of milling around. Yes, that's former mayor Steve Goldsmith talking to Jim Morris and one of the Pacers. You'll be able to figure out who's who.

At the airport, you'll see my fellow Georgetown alumnus Roy Hibbert getting the souvenir picture with his friend Val, and then he gets the star treatment from the fans. (Not that I feel old or anything, but Roy was born the year AFTER I graduated from Georgetown Law).

Hope you like it . . . . .

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.

Indianapolis Named an Official 'IACT Green Community'

Monday, October 5, 2009 by Matt Waldo

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

You may view a document outlining Central Indiana's clean tech manufacturing assets and projects here: DOWNLOAD REPORT

Mission Accomplished!

Sunday, October 4, 2009 by Kristie McKillip

Alas, after almost two weeks in Germany, on Friday evening (Oct. 2nd), I put my feet on U.S. soil once again. Luckily, my travel back to the States went very smoothly (no delays and no cancellations....which can sometimes be rare these days)! Nevertheless, I had quite a bit of time to reflect on the trip (approximately 12 hours when you count the time in flight and transfer between airports). So, I thought it would be a good idea to write down a few observations from this mission - since I had so much time on my hands, anyway!

Overall, I think this was by far, the most productive trip I have ever taken to the Federal Republic of Germany. It is important to remember these missions abroad are long term commitments that require continued follow up.  Between my previous employment at the Boone County EDC and now at the Partnership, I have been to Germany a total of five times (three of which have occurred in the last 12 months).  Again, to truly have a successful FDI attraction program, you have to make a long term commitment and you have to be consistent with frequent visits (at least 2 times per year). You also have to be committed to frequent follow-up and touches throughout the year when you're not meeting with people face-to-face.

Though I cannot disclose company names, I can say the majority of this trip consisted of company meetings. This is very exciting because it is very difficult to get into meet with companies. Most of the companies our group met with were medium-sized manufacturing companies in various stages of growth. A few companies we met with will undoubtedly result in some form of investment in Indiana as they are much further along with their U.S. investment plans. These companies have already been evaluating various locations in the U.S. and they were already somewhat familiar with our State and Region. However, most of the company visits we made were very preliminary. These prospects had little or no knowledge about the State of Indiana, let alone the Indianapolis Region.  Therefore, we accomplished our goal of raising awareness about the Region and our business advantages. The good news is that we can continue to monitor these prospects throughout their growth continuum. This means when they are ready to take the next step, we will already have a long-term relationship built with them. Germany is no different than the U.S. in that people like to do business with people they know and trust. As long as we can continue to foster a good relationship and provide useful and beneficial services to our new friends, it is all the more likely they will want to make their next move with us.

In addition to company meetings, we filled in the rest of the trip with valuable meetings with industry trade organizations. In Germany, industry organizations are very powerful and influential - much more-so than similar organizations here in the U.S. For instance, in the State of Bavaria, there is an organization called Vereinigung der Bayerischen Wirtschafte (vbw) which represents the social, political and economic interests of its more than 1600 member companies in the electrical and metalworking sectors. Vbw is an employer association in Germany that actually represents their member companies in collective bargaining agreements and other labor negotiations. When you compare U.S. verses German manufacturing companies in the mid-sized range, German companies appear to be much leaner from an administrative and management perspective then their U.S. counterparts. That is why employer organizations such as vbw are so important. Their staff and experts (most of which are labor attorneys) actually step in and serve the needs of their members. This frees up senior management to focus on running the business rather than being too involved in labor issues.  In addition to meeting with vbw, we also met with representatives from some of the following organizations:
-IHK Munich (Chamber of Commerce and Industry)
-Network of Automotive Excellence (NoAE)
-American Chamber of Commerce (AmCham)
-VDMA Munich
-Ministry of Economics in Bavaria
-Strategic Partnership for Sensor Technology.

Finally, our team attended four different trade shows in the last two weeks. If there were moments of downtime, our group was walking the trade show floors at the European Photovoltaics Solar Show, MOTEK, Renexpo and FachPack. Though we had little downtime on this trip, it is always smart to try and schedule a trade mission in conjunction with a major trade exhibition to ensure that you cover as much ground as possible. These trade exhibitions are also very educational. At these shows, you can really learn who the major players are in the industry and you can see first hand which companies may be launching new product lines.

It has been a very hectic two weeks.  In that short amount of time, we met with 15 different companies, 10 industry/trade organizations and visited 4 trade shows across 11 German cities and towns.  Now, the hard work begins. Now we must revisit our notes from our trip and follow up with our new German friends in a meaningful way that will add value to their operation. If we can do that, then we can honestly say, "Mission Accomplished!"

Catching Up, Coming Home.

Friday, October 2, 2009 by Kristie McKillip

This trip has been a whirlwind. Everyday has been a new adventure of some sort, and because of difficulties with Internet service while I've abroad, I've had quite a difficult time updating this blog. While I'm now back in the USA, I've got a bit of a wait before my next flight, and thanks to airport WiFi, I'd love to bring you up to speed with the latter parts of my trip.

This is Mr. Herbert Koepplinger (Managing Director) for the Network of Automotive Excellence (NoAE) and I. The NoAE is an organization dedicated to finding new innovations for automobiles. They research problems in the automotive market and try to identify solutions with the goal of improving all aspects of the automotive manufacturing process. They work with all of the major automotive manufacturers in Germany as well as their suppliers.

This is a picture of our group with Mr. Burkhard Linke from the American Chamber of Commerce in Germany. They are one of the largest American Chambers in Europe. In the background of this picture is the Amerika Haus, home to many other chamber and industry-related organizations. This is also where several other states have their Germany outreach office located.

Here our group is pictured in the TV studios of the Vereinigung der Bayerischen Wirtschaft (vbw). We met with Mr. Kelvin Strausman, Chief Economic and Diplomatic Advisor for North American Relations & International Economic Organizations. The vbw is a very powerful and influential organization in Bavaria. vbw essentially is an umbrella organization for most of the employer associations in Bavaria. They represent many of Bavarias companies during collective bargaining situations and through other labor issues. They also lobby on behalf of industry. Their network is extremely large. In fact, in our meetings with company CEOs throughout the week, we found many of them actually served on the Board of Directors for this organization. This will be a great contact in the future.

Another picture with Kelvin Strausman. He is responsible for helping his member employers make connections and be successful in North America.

One of the great things about Germany is that this type of selection of freshly baked food can be found in any train station in Germany. We spend so much time in train stations on these trips, and are often eating on the run. The good news is that the train stations have some of the best and freshest food you'll find. It is great (as far as eating on the run is concerned).

The last picture is our group on the train. We spend a lot of time getting from place to place because we have to cover so much ground at one time. This is a picture of an ICE train (one of the fastest in Germany). As you can see, it is definitely geared to the business traveler. They have a desk and plenty of room to work. Internet access is available (but it is always patchy due to the high speeds of the train).

I hope to share some more of my trip in the coming week. There were so many exciting observations to share!

Indianapolis MSA Unemployment Better Than Peers, Nation

Thursday, October 1, 2009 by Matt Waldo

Employment and unemployment are widely considered "lagging" economic indicators because employers do not start hiring more workers until revenues begin to increase. However, August data from the Bureau of Labor Statistics shows the Indianapolis metro area's unemployment rate (8.2%) has begun to stabilize and continues to track lower than the nation (9.6%) and most peer cities.

You can download a chart showing the three-month trend for each peer metro by clicking here.

Is Your City Smarter Than A Fifth Grader?

Thursday, October 1, 2009 by Ron Gifford

I'm off to New York City this morning to participate in IBM's "SmarterCities Forum." IBM Chairman and CEO Samuel Palmisano has invited folks from the private, public and nonprofit sectors to join him for two days "to explore new approaches to regional partnerships, identify roadblocks, evaluate frameworks for investment and review the tools that are helping our cities meet 21st century realities."

That should keep us busy for the next couple of days.

We'll cover this ground in six sessions:

A Planet of Smarter Cities -- why cities will become the focal point for economic and population growth around the world.
A Vision for Smarter Cities -- how innovation will shape the new vision of dynamic cities.
What It Takes To Build Smarter Cities -- breakout sessions on transportation, education, energy, public safety and government services.
Culture and the Smarter City -- why culture is the difference between a vibrant and a stagnant community.
Seizing the Opportunity -- best practices from around the country.
The Leadership Challenge -- how can we lead and manage change in our cities?

I'm looking forward to meeting people from all over the country, and I'll share their thoughts with you when I get back. Until then, look for me on Twitter as I tweet my way through the next two days. @RDGifford.

Celebrating October Festival with the Chinese Community in Indianapolis

Sunday, September 27, 2009 by Ron Gifford

My family and I had the great honor of spending Saturday night at the Madame Walker Theatre with members of the Indianapolis Chinese community as they commemorated the 60th anniversary of the establishment of the People's Republic of China and the 30th anniversary of the establishment of diplomatic relations between China and the United States.

We were the guests of Weilin Long, who is a director in the City of Indianapolis' Office of Minority and Business Development and very active in the local Chinese community. She was extremely helpful to me in preparing for the recent trade mission trip I took with Governor Daniels, and Weilin herself recently visited her parents in China.

Weilin gave us the VIP treatment, with front row seats and a chance to make brief welcoming remarks along with Vice Consul Jing Zhu from the Chinese consulate in Chicago and Virgil Madden, special assistant to Lt. Governor Becky Skillman. I even did a couple of interviews at intermission for Chinese television.

The festival was excellent, featuring singing, dancing, traditional Chinese music, ballet, an outstanding cellist, and even a couple of Chinese comics. I didn't understand a word they said, but trust me -- based on the audience's reaction, these guys were hilarious.

In fact, you can check out part of their act for yourself. I took along a new Flip video camera, and my 8- and 12-year-old daughters -- who looked lovely in the Chinese silk dresses I picked up in Hangzhou a few weeks ago -- helped me shoot some footage. There are no Oscars in our future, to be sure, but this footage will give you a brief taste of what a full house at Madame Walker enjoyed (and just to clarify, these are just a handful of the many wonderful performances that were shared with us Saturday night, including a fabulous cello solo by Indianapolis Symphony Orchestra cellist Jian-Wen Tong).

The festival was co-sponsored by the Indianapolis Chinese Community Center; Confucius Institute; Indianapolis Chinese Medical Association; IUPUI Chinese School; IUPUI Students and Scholars Association; Indianapolis Chinese Performing Arts, Inc.; and Lilly Chinese Culture Network.

I'm convinced more than ever that we have a great opportunity to make Indianapolis a vibrant and welcoming community for Chinese businesses and families. I'm heading to Taiwan and Beijing in a week, and there will be more to say about that soon. But for now, to the many friends we met on Saturday night, let me simply say, "xie xie."

"I Like To Move It, Move It; We Like To Move It."

Friday, September 25, 2009 by Ron Gifford

This just in from the 2009 Indiana Logistics Directory, released this week:

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

Indiana Rankings:

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

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

LEARN MORE ABOUT LOGISTICS IN CENTRAL INDIANA

Best Business Tax Climate in the Midwest; One of the Best in the Nation

Friday, September 25, 2009 by Ron Gifford

Indiana continues to score well in the Tax Foundation's annual survey of states' business tax climate. We ranked 12th in the country and best in the Midwest. Here's a press release issued today by the Indiana Economic Development Corporation:

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 .

Diamond in the Rough: Indy Industrial Real Estate

Wednesday, September 23, 2009 by Matt Waldo

This has been a bad year for the national commercial and industrial real estate market. The Indianapolis industrial market, however, appears to be bucking that trend, according to a recent study by Cushman Wakefield (CW) of Q2 results. CW found that while most competitive cities in the U.S. have experienced negative absorption in the millions of square feet, the Indianapolis Region has a POSITIVE 1.4 million square feet of activity so far this year.

Additionally, the Indianapolis Region industrial market completed construction of more than 4 million square feet of new space, doubling the development of larger cities such as Los Angeles, and a more than ten-fold increase over other large cities like Atlanta.

The report also shows that the Indianapolis market continues to be among the five most affordable large markets in terms of commercial and industrial real estate lease cost.

DOWNLOAD THE REPORT

Packing the Essentials for a Trade Mission

Tuesday, September 22, 2009 by Kristie McKillip

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

FOLLOW ME IN GERMANY ON TWITTER

And here's a fun picture I found when I did a simple Google images search for "packing suitcase." Some things simply MUST be shared!

You Knew It Had To Happen Sooner Or Later

Wednesday, September 16, 2009 by Ron Gifford

If you ever read any of my old IBJ columns, or have had any exposure to my sense of humor, you had to know that it was only a matter of time before I went haiku on you. After all, how could I possibly go to Japan, write a blog, and not at some point invoke the literary cliche and mangle a beautiful form of ancient poetry?

So with just a few minutes of internet time left here before heading off to Narita, I thought I'd capture a few moments from our trip in the traditional three metrical phrases of 5, 7, and 5 moras or on (syllables, in English).

China, then Japan;

New friends, ideas, prospects.

Mission: successful.

Always moving, he

Goes from meeting to meeting:

it's my man Mitch-san.

"One in a million."
Special here, but not so much
When you're in China.

Language barriers

can fall with patient efforts.

Translators help, too.

Eating adventures:

New tastes, smells and textures; but --

Food should not move, right?

Standing in gift shop,

calculating exchange rate.

Gotta yen for that?

Twelve days on the road.

Good reason to come home now:

No clean underwear.

We are wheels up from Narita in about 4 hours; should be on the ground in Indianapolis at 6:30 Wednesday night. See you all then.

A Personal Reflection On This Trip to Japan

Tuesday, September 15, 2009 by Ron Gifford

I had my first personal experience with Japan nearly 32 years ago to the day.

I was a long-haired skinny 18-year-old from tiny New Buffalo, Michigan (pop. 2,000), the first one in my family to go to college and generally unsophisticated about world affairs. As I checked in at the East Quad dorm reception desk to start my freshman year at the University of Michigan, I learned that my roommate, a guy named Andrew Mylnarchik, had already arrived.

I figured the guy's parents were Polish or Slavic; I grew up with a lot of kids like that. So imagine my surprise when I opened the door to my room and saw a 6-foot tall Japanese guy standing there, smoking a cigarette and drinking a glass of Scotch.

Oh, Toto, we don't know where we are. Wrong room, maybe?

My new roommate stuck out his hand. "Hi, I'm Andrew Mylnarchik. I'm from Tokyo. Pleased to meet you."

And thus began the most unlikely of friendships that brought together two young kids who were literally and figuratively worlds apart from each other.

I shared that story with several members of our delegation last night as I introduced them to Andrew-san at the Friends of Indiana reception that Governor Daniels hosted at the conclusion of our stay here.

Here's the quick backstory: Andrew grew up in Tokyo. His dad, Roy Mlynarchik, is a first-generation Russian-American; drafted into the Army from Harvard during World War II, he was stationed in Tokyo at the end of the war. Given his Russian language skills, Mr. Mylnarchik was quickly recruited by the State Department, and served our country for 40+ years in Tokyo. (It was good to see him again this past weekend; still sharp and engaged on geopolitical events.)

Well, as these things happen, Roy fell in love with a Japanese woman, married her and had a son, whom they named Andrew. Andy went to St. Mary's International School in Tokyo, and when it came time to go to college, decided that U-Michigan was the right place to go. I'm sure he never anticipated the culture shock of living with me! (Actually, I am sure, because he's told me that several times over the years.)

After graduation, Andrew moved back to Tokyo and began a distinguished career in the financial services and banking industries. The last time we saw each other, before this weekend, was in 1987, when Andy spent a long weekend with Kathy and me in Indy. But over the years we've stayed in touch, first by cards and letters, and then more recently with email. So this trip provided a great chance for me to meet his family and see Tokyo and surrounding areas with an excellent tour guide. And true to our deal, Andrew refused to spill the beans when Governor Daniels and others asked him last night if he had any good dirt on me from our college years.

I'm going to share one other story with you about Andrew that also has an Indiana connection, or more accurately stated, a Purdue connection.

But first let me tell you a fact that will become more relevant in a bit: did you know that of all the colleges and universities in America, Purdue has one of, if not the highest number of international students enrolled in its programs? And Indiana University has a very large number of international students as well. Each year, thousands of bright, connected, ambitious international students spend time in our state, learning not just about their fields of study but also a little bit about Indiana, which they take back home with them.

So I'm up at Purdue last spring, speaking to a group of upperclass students in a Krannert business school class. I had lunch with about 20 of the students afterward, and what interested me was the fact that more than half of the students were from other countries, and particularly Asia. One of the students asked me a "brain drain" kind of question: did I think it was a bad thing that so many of the international students were going to go back home, and not stay in Indiana.

Not at all, I told them. Sure, we'd love to have these smart young minds stay in Indiana, but it's also pretty naive to think that most of the international students will do that. So I'm happy to have them spend time here before going home, for at least two reasons: first, we're sending potential ambassadors for Indiana all over the world, and as those students become business, civic or government leaders, we will have good friends to work with in those countries. Second, I pretty much told them the same story I shared with you at the beginning of this post; and I reflected on my own experience of having had a roommate from Tokyo, and how good it's been on many levels to have maintained that friendship.

The lunch ended, and one of the class' graduate assistants came up to me. "I know your old roommate," she told me incredulously. After college she'd moved from Texas to Tokyo, and interned at a firm where Andrew worked. "I recognized his name right away, and he's still exactly as you described him."

So just because it's a cliche doesn't mean it's not true: it is a small world. And my personal lesson from 32 years ago has been reinforced by the lessons we continued to learn on this trip: people who live on opposite sides of the globe, but who share similar values, goals and aspirations, can build long-lasting friendships that continue to teach us, engage us, and nurture us.

By the way, 32 years later, Andrew and I concluded that we pretty much look the same as we did as young men. We haven't changed one bit, other than perhaps for our failing eyesight.

Strengthening Bonds At SMC Corporation

Monday, September 14, 2009 by Ron Gifford

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?

"Gam bei!" A Toast to China

Friday, September 11, 2009 by Ron Gifford

As we pull out of Hangzhou in about an hour, and head up to Tokyo for the next phase of our trip, it seems appropriate to offer up a figurative "gam bei" to our hosts in China.

Frankly, we've all been getting pretty gam bei'd the last couple of nights.  OK, that's not as scandalous as you might have assumed. "Gam bei" (also spelled sometimes as "gan bei") is a traditional Chinese toast given at dinners and banquets; it generally translates as "dry glass," the equivalent of "bottoms up." To show honor or respect to your fellow diners, it is appropriate to approach them, share a personal thought, such as "good health," "to the success of our business venture," "to our friendship," or the like, and then end it with a "gam bei." You can gam bei one on one or do a group gam bei.

What comes next can make or break the moment: by tradition, you must drain your glass and show your colleague the empty glass. You will lose much face if you do not succeed at this task. Of course, you will lose much liver if you do not have a good gam bei strategy in place, like making sure you just "coincidentally" have a small amount of alcohol in your glass at any given time.

Of course, you don't have to do the gam bei toast. For the milquetoasters amongst us, there are other half-hearted "kiss your sister" kinds of toasts, such as sui bian ('drink as you please"), sui yi ("drink a little"), or ban bei ("drink just half the glass").   Frankly, it's just too much work to learn all that, and it's hard to give a lusty, full-throated "just drink a little from your glass" toast that really means all that much.

Well, who am I to disregard custom and risk yet another international incident? I, along with many of my fellow delegation members, viewed it as our solemn mission to gam bei the hell out of those receptions!! A little gam bei diplomacy can go a long, long way, plus it's a lot easier to learn than ping pong (although I don't recommend trying to play ping pong after too much gam bei).

So as we leave China for now, I raise my glass to our wonderful hosts and new colleagues from Shanghai and Hangzhou, offer my best wishes for new understandings and friendships, and heartily say, "Gam bei!!" Keep the drinks cold, because we'll be back soon.