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

Thursday, November 12, 2009 by Ron Gifford

Thursday, November 05, 2009

Report: 11 states emerging from recession

By David Harrison, Special to Stateline.org

Moody's Economy.com has found that 11 states are recovering from the recession, while Nevada remains

As the national economy starts its slow recovery, 11 states and the District of Columbia are showing signs of emerging from the recession, according to a new report.

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

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

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

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

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

Moody's Economy.com predicts that states with less volatile housing markets, such as the Dakotas that saw little change in home prices, will come out of the recession quicker than the rest of the nation, while states which saw larger swings in home prices will face a longer downturn.

Despite these signs that suggest the recession might be easing, most states’ recovery will lag. Cochrane said that although a state can be technically out of recession when it starts producing more goods and services, managers often wait to hire new workers until they are on firmer financial footing. So it’s not uncommon for high unemployment rates to linger even as the economy recovers.

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

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

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

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

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

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

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

The Federal Reserve Bank of Philadelphia has found seven states are faring better than they were three months ago. Among the indicators used to pick these states was unemployment. While unemployment is leveling off nationally, some states, such as Ohio, are seeing substantial declines in jobless lines while others, such as Nevada, continue to see more unemployed.

Wyoming, like Oklahoma, New Mexico and Colorado, depends on natural gas for a significant part of its economy. Until prices rise, those states will slump, Liu said.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Monday, November 9, 2009 by Matt Waldo

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

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

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

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

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

The CNBC report may be accessed here.

Indiana Attracts Much More Venture Capital in 2009

Sunday, October 25, 2009 by Matt Waldo

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

Source: Indystar.com, October 25, 2009.

Purdue University Highlights $20M DOE Grant at Biotech Conference

Thursday, October 22, 2009 by Matt Waldo

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

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

Purdue to find game changing way to produce biofuels

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: www.Purdue.edu, May 7, 2009.

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

Indiana Adds More Workers than Any State in September

Thursday, October 22, 2009 by Matt Waldo

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

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

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

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

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

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

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

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

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

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

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

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

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

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

New GIS Data Layers Available

Sunday, October 18, 2009 by Matt Waldo

The following new data layers are now available on Indy Partnership's web site - recently voted the best web site in the economic development industry:

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

Click here to go to the page. Then select the grey tab at the top of the map, titled "Data".

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

Wednesday, October 14, 2009 by Ron Gifford

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

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

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

Tiananmen Square, the Forbidden City, and A Cast of Thousands

Wednesday, October 14, 2009 by Ron Gifford

We arrived in Tiananmen Square on Saturday just about the same time as everyone else in Beijing, or so it seemed. The vast open space -- reputedly the largest public square in the world -- was teeming with visitors, many of whom came to see the massive floats that had been part of the previous week's parade celebrating the country's 60th anniversary on October 1.

The Chinese tourists were as interested in seeing us -- okay, some of us -- as we were in seeing them. Apparently, they don't see too many tall blonde women in China, because when they do, it's time for pictures!! And almost always, the people wanting the pictures were Chinese women (contrast that with the guys in our group who just wanted their pictures taken with the Denver Nuggets cheerleaders). Don't know if they really have more fun or not, but blondes certainly have more photo ops.

Great Times At The Great Wall

Wednesday, October 14, 2009 by Ron Gifford

On our first day in Beijing, as I noted in an earlier post from China, we took a group tour to the Great Wall. You can see the group photo taken there at www.pacers.com, and below is some footage from the Wall. Yes, one of the guys found a piece of chalk and left a message for all to see -- although only in the pictures and videos; lest anyone think we actually created an international incident by defacing the Wall, the chalk easily washed away.

Taipei Street Scenes

Wednesday, October 14, 2009 by Ron Gifford

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

Taipei Street Scenes

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

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

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

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.