The Central Indiana Corporate Partnership (CICP) is an alliance that includes the CEOs of many of our major employers and the presidents of our research universities, coming together to advance a common goal – growing our regional economy. 

I’m Mark Miles, CICP’s President & CEO, and this blog will offer our thoughts and perspectives on the latest economic news and other issues that affect the future of our region.  Thanks for visiting.

As the legislative session comes to a close, hopes are high that lawmakers will advance the cause of reading education by allowing the Indiana Department of Education to end social promotion from 3^rd to 4^th grade if students aren’t reading at grade level.  Reading is the basic skill that makes all other learning possible – it’s common sense that if students are falling behind, schools should be obligated to get them the help they need to catch up rather than simply passing them along and compounding their struggles.

Unfortunately, some defenders of the current system would rather pay lip service to reading reform than accept the core responsibility of teaching our kids.  For example, John Ellis, executive director of the Indiana Association of Public School Superintendents, recently penned an editorial in the Indianapolis Star that rejects the idea of retaining students who can’t read at the end of third grade.

The Indiana Department of Education and State Board of Education have made early reading education a top priority.  They’ve endorsed a policy framework that includes increased classroom time allocated to reading, intensive professional development for teachers on research-based reading instruction, and tools for assessing student reading proficiency on an ongoing basis in grades K-3, to catch problems early and devote more existing resources to struggling readers.

Under this model, retention is a last resort – a final opportunity to get students back on track with more intensive instruction on reading (not just holding back students in the same classroom with the same approach).

Mr. Ellis conveniently ignores this broader strategy and issues dire predictions of ‘mass retention.’  But if reading is the most important activity in our classrooms, and schools have 3,500+ hours of instruction from kindergarten to 3^rd grade within which to teach kids to read, how little confidence must Ellis have in our public schools – his constituents – to fulfill their fundamental duties? 

He also attempts to undermine the progress made in Florida, which ended social promotion as part of an approach similar to what Indiana envisions.  Florida actually climbed from 31^st to 21^st in 4^th grade public school reading scores from 2002-2007, cutting failure rates by a third.  (During the same time, Indiana slid from 15^th to 27^th in national reading scores.)  He implies that minority students were left behind by the Florida reforms – in fact, African-American, Latino, and low-income students all improved their reading performance in Florida from 2003-2007 while closing the ‘achievement gap’ with the general student population (Gauging the Gaps: A Deeper Look at Student Performance – The Education Sector).

Questionable statistics are a poor answer to inarguable logic:  Our schools must teach their students to read. Absent new instructional strategies and measures holding them accountable, the job won’t be done.

Ellis reaches a rhetorical low when he says that the retention policy would ‘label our children as failures.’  No one is calling children failures.  It’s our schools that are failing too many of their students, and this has to change.

Mr. Ellis closes with an excerpt that cites more questionable studies and asserts that “…learning is difficult when leaders or anyone else is driven by ideology.”  I’d submit that the issue here isn’t ideological, but it does involve two competing philosophies:  Ours embraces accountability, his seems wedded to the status quo.  When it comes to preparing future generations of Hoosiers to succeed in school and in life, we can’t afford the latter.

I wanted to draw your attention to this insightful column by former Cummins Vice-Chairman Joe Loughrey, who chairs CICP’s Conexus Indiana and Energy Systems Network initiatives.  Loughrey emphasizes the need for a proactive focus on workforce development to maintain Indiana’s competitive edge in ‘green economy’ areas like vehicle electrification (as highlighted by the U.S. Department of Energy's visit to Indianapolis-based EnerDel last week). 

A version of this piece appeared in today’s Star, here.

Keep focus on tomorrow’s workforce

Joe Loughrey

Last week, a delegation from the U.S. Department of Energy visited Central Indiana to finalize a $118 million grant to Indianapolis-based EnerDel, the only current U.S. manufacturer of lithium ion batteries for hybrid and plug-in electric vehicles.

Leveraging this grant and private investment, EnerDel is creating more than 1,400 new jobs in Central Indiana, building a new manufacturing facility in Greenfield.  It’s a major economic success story for the region.

EnerDel is just part of a growing ‘green vehicle’ industry in the state.  Last year, Think North America chose Elkhart as the site of the first U.S. factory for its line of electric cars.  In Anderson, Bright Automotive is also engineering state-of-the-art plug-in hybrids.  Established Indiana manufacturers like Cummins, Remy, Delphi and Allison Transmission are also major producers of hybrid components.

We can be proud that Indiana is a leader in putting electric vehicles on the road, helping our environment and making the U.S. less dependent on foreign oil.  Taking advantage of the growing market for plug-ins and hybrids is also good for Indiana’s economy.  But we do face a longer-term challenge to sustaining and strengthening this leadership position in the green economy – educating the next generation of employees for this fast-growing, rapidly-evolving industry.

The factories that produce hybrids and plug-ins are increasingly high-tech, just like the cars themselves.  These vehicles feature microcontrollers and other advanced technologies, along with the standard automotive electronics – installing, testing and troubleshooting these components takes a skilled workforce, with technical training beyond high school or two-year associates degrees.

It’s not just the green automotive industry that requires more educated employees.  There are very few ‘low skill’ jobs left in manufacturing in general today.  In a study by the Federal Reserve Bank of New York (‘A Leaner, More Skilled U.S. Manufacturing Workforce’), economists divided manufacturing jobs into low-, medium- and high-skill and observed that between 1982 and 2002, high-skill manufacturing occupations grew 37% while low- and medium-skill jobs declined 24% and 18% respectively.

Indiana boasts a rich reservoir of engineering talent and a strong manufacturing workforce – it’s a key competitive advantage that allowed us to attract companies like EnerDel, and why other clean technologies firms are looking to locate and expand in the state.  But to maintain this edge, we have to ensure that our workforce pipeline stays strong, with young workers getting the right degrees and certifications to take advantage of advanced manufacturing careers in electric vehicles and other high-tech fields. 

Initiatives like Conexus Indiana are hard at work bringing private industry and higher education together to create up-to-date manufacturing training programs, and marketing these career paths to young people through its ‘Dream It. Do It.’ campaign.  Purdue and Ivy Tech Community College received a $6 million federal stimulus grant to create specific degree and technical programs for electric vehicles, and the state’s Department of Workforce Development is also focused on green job training.  At the K-12 level, it’s critical that technical education programs are spared from budget cuts to get students on the right track early on.

These efforts have to be a top priority for policymakers, educators and manufacturers alike.  Pursuing economic development without a parallel focus on education will ultimately frustrate the ambitions of both the companies that can’t find skilled workers to fulfill their growth plans and the Hoosiers who find themselves unqualified for better jobs. 

Announcements like EnerDel’s are great news for Indiana’s economy; a steady supply of talented workers has been a catalyst for this success.  But we also have to keep a proactive focus on tomorrow’s workforce to keep the momentum going.  Looking ahead, degrees and certificates awarded are economic development metrics just like jobs and investment – the path towards a green advanced manufacturing economy for Indiana starts in the classroom.

Loughrey is the retired Vice-Chairman of Cummins, and chairs the Conexus Indiana and Energy Systems Network initiatives for the Central Indiana Corporate Partnership.

The Indianapolis Star continues to be a strong voice for reading education, pushing for an end to social promotion from third to fourth grade without reading proficiency in today’s editorial:

Keep students on the right track

This year's session of the General Assembly is in its final days, but lawmakers still have an opportunity to pass legislation that would help reverse one of Indiana's most shameful statistics: the fact that one in four students finish the third grade without a command of basic reading skills.  (read more)

The last week has brought positive stories from several areas of the Indiana economy that are represented by CICP initiatives – anecdotal evidence that these industry clusters continue to represent our best prospects for future growth.

Last week, U.S. Department of Energy (DOE) officials traveled to Indianapolis-based EnerDel to meet with company officials and representatives of Central Indiana’s clean technology industry, recognizing our region’s emerging leadership position in vehicle electrification.

EnerDel, the only U.S. manufacturer of advanced lithium-ion batteries for hybrid and plug-in electric vehicles, received a $118.5 million grant from the Department of Energy through the American Recovery and Reinvestment Act (ARRA) in August.  EnerDel and other partners have also joined in a major demonstration project of electric vehicles in the Greater Indianapolis region, dubbed Project Plug-IN, under the auspices of CICP’s Energy Systems Network (ESN) initiative.

The DOE team led by Gil Sperling, Senior Advisor to the Office of Energy Efficiency and Renewable Energy, highlighted both developments, applauding EnerDel’s role in enhancing U.S. innovation and manufacturing capacity in clean energy and recognizing Project Plug-IN as an important initiative that will help make plug-in electric vehicles a practical choice for the American driver.  Indiana’s growing ‘green vehicle’ industry represents a great opportunity for both our energy and advanced manufacturing sectors.

In logistics, s2f Worldwide, a third-party logistics and supply chain service provider, chose to locate its operations in Plainfield this week, a deal projected to create 250 new jobs by 2013.  Central Indiana continues to strengthen our position as a global distribution hub, leveraging our strong infrastructure and inherent geographic advantages into new logistics opportunities.  Our Conexus Indiana initiative is poised to release a comprehensive logistics strategic plan for the state, and is also working to expand intermodal capabilities at the Avon railyard in Hendricks County, putting the region in an even stronger position going forward. 

Indiana continues to rank among the top ten states in logistics employment per capita – these efforts are paying off in good jobs for Hoosiers.

And finally, in technology, I was struck by an interview on Inside Indiana Business with Gerry Dick with Bill Godfrey, Chairman of on-demand marketing software provider Aprimo.  Godfrey asserts that Indiana is becoming a market leader in the e-marketing arena, with companies like ExactTarget, ChaCha, Compendium, Cantaloupe and others joining Aprimo here.  Jim Jay, President of our TechPoint initiative, wrote a piece on this very topic at about this time last year – check it out here.

And speaking of TechPoint, the organization has extended the deadline for its Mira Awards, celebrating Indiana’s high-tech success stories – go here to nominate an Indiana technology innovator today.

Spring is finally right around the corner - to belabor a metaphor, stories like these appearing with greater frequency seem to foreshadow an economic thaw for Indiana to match the warming weather.

I’ve written about CICP’s strong support for ending social promotion from 3^rd to 4^th grade unless Hoosier students are reading at grade level – the cornerstone policy of an overall emphasis on reading education that will refocus resources, implement new teaching strategies, and leverage community programs to ensure that every child learn to read.

This policy still has life in the waning days of the legislative session, and we’re pleased that Indiana’s senior Senator, Richard Lugar, has weighed in on behalf of this critical education reform.  Read Senator Lugar’s excellent statement here.

CICP director and State Board of Education member David Shane also penned this editorial on the effectiveness of retention policies for the Indianapolis Star; ending social promotion was a key drver behind the remarkable turnaround in reading achievement in Florida over the last decade.

As the legislative session draws to a close, lawmakers have a choice:  Will they demand that Indiana’s schools teach every child to read, or will they continue to allow tens of thousands of students every year to fall through the cracks, relegated by poor reading skills to a life of likely poverty and lost opportunities? 

Last week, our Central Indiana Transit Task Force publicly released its final report, presenting its recommendations to policymakers and the citizens of the region.  This report lays out a regional multi-modal transportation system with financing and governance recommendations, backed up with a rigorous cost-benefit analysis.  Now that the Task Force findings are in the public domain, we’re kicking off a year-long input campaign  – Indy Connect – that will invite a dialogue about Central Indiana’s transportation future, using our plan as a starting point.

I’d like to again thank co-chairs Al Hubbard, Bob Palmer and John Neighbours for their leadership, and all of the Task Force members – including CICP co-chair Jo Ann Gora – for their energy and insight in crafting this impressive study.

Their work will serve the region well.  We’ve lacked an integrated, forward-looking plan for regional transportation, and have paid the cost in terms of economic competitiveness, workforce connectivity, the vitality of our urban core and the potential for new investment and neighborhood redevelopment.  Our blueprint addresses all of these issues; now it’s up to elected officials and the public across the region to make the plan their own and decide if they’re willing to invest in it.  Please offer your two cents at indyconnect.org.

As the public thinks about transit, it’s important to understand the tremendous economic development impact that transit can have – I hope you’ll take a moment to read this excellent editorial from this weekend’s Star from Chuck Cagann of Mansur Real Estate, a Transit Task Force member, that addresses this issue:

Transit investments mean economic payoffs

When we think about economic development, we're likely to focus on tax breaks and other incentives for growing companies, competing against other regions for business opportunities.

That's true, but it's only one part of a bigger picture.  I'd argue that economic development has to be tied to what kind of community we want to build for ourselves and our families:  Do our citizens have access to diverse job opportunities?  Is our region growing?  Do we have great housing options, with thriving retail establishments and other amenities to serve our neighborhoods?

If we embrace this broader definition of economic development, then it's clear to me that a strong regional mass transit system is an important catalyst.

I was proud to serve on the Central Indiana Transit Task Force, a private sector-led group that last week unveiled a comprehensive transportation plan that includes strategic highway investments and an expanded regional bus system connected with light rail to serve the metropolitan area.

As business leaders, we understand a good investment when we see it – regional mass transit is an investment that will pay off in a healthier economy for employers, for taxpayers, for all of us.

Mass transit has been shown to create significant economic investment, as dense commercial and residential development grows along the transit lines.  For example, the Portland streetcar system has generated $1.4 billion along its 4.7 mile loop since 2001, a handsome return on its $300 million cost.  In Cleveland, more than $4 billion in private development is planned or in progress along the Euclid Avenue light rail corridor.  In Dallas, another $4.2 billion in business and new housing sprang up along the DART (Dallas Area Rapid Transit) system between 1999 and 2007.

This transit-oriented development boom can lead to higher property values and a broader tax base, easing the burden for other homeowners and businesses.  In Dallas, for example, high-value development along the DART lines is generating an estimated $127 million in additional tax revenues every year.  In Arlington, Virginia, half of all county property tax revenues are generated from its METRO transit corridors – allowing the county to maintain the lowest property tax rates in the region.

The right system will help our region attract and retain talented people, the skilled workforce that is a magnet for new business opportunities in our knowledge-based economy.  The regions of choice for educated workers provide diversity, arts and culture, an array of recreational amenities.  These regions also offer transit options – the ability to walk or bike to a rail or rapid bus station, to work on your laptop or chat with friends on the way to work.

By allowing employees to get to work more efficiently and affordably, a truly comprehensive regional system also allows local businesses to access a broader workforce, while giving commuters more disposable income to reinvest in the local economy rather than at the gas pump.

The Task Force strategy for mass transit is based on thoughtful planning and a rigorous cost-benefit analysis – but it’s only the beginning.  Now that this plan has been turned over to the public sector for action, every citizen will have an opportunity to weigh in during a series of public meetings and online at www.indyconnect.org. 

The dividends from investing in transit are many and far-reaching: Cutting commutes and putting more job opportunities within reach.  Connecting local businesses with more customers.  Spurring development that creates new jobs and tax revenues while rebuilding our neighborhoods.  The proposed transportation system may evolve over the next year, but it’s certain to be a winning economic development proposition  for all of us – please take part in the conversation and encourage your local elected officials to help turn this vision into reality.

Chuck Cagann is President of Mansur Real Estate Services; he serves on the Central Indiana Transit Task Force, which recently unveiled a strategy for a comprehensive regional transportation system.

According to the State Science and Technology Institute (reporting on data from PricewaterhouseCoopers and the National Venture Capital Association (NVCA), 2009 was the worst year for venture capital investment in more than a decade.  The STTI story opens:

Last year venture investment decreased to its lowest level since 1997, according to the latest Moneytree Report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA).  A weak environment for exits and increasing caution on the part of investors contributed to a 37 percent decrease in investment dollars and a 30 percent decline in venture deals from 2008 levels. This marks the second consecutive year of declining venture dollars and deals.

While this is clearly bad news for the vitality of our ‘innovation economy’ nationally, it again points out the opposite trend that’s occurring here in Indiana. 

Back in ’97, the state was still largely regarded as ‘flyover country’ by venture capitalists; the NVCA tracked just $25 million in equity investment here.  By 2009, this had grown 600% to $150 million (and we’re aware of a number of sizable deals that appear to have been missed in the NVCA surveys).  Collaborative efforts like the BioCrossroads INext Fund (successor to the $72M Indiana Future Fund), a $58 million ‘fund of funds’ focused on life sciences start-ups, and the HALO angel investor network, which has invested $12M in ten high-tech Indiana start-ups over the last two years, are putting Indiana in the thick of the venture capital game…not relegated to the sidelines, as was often the case in the past.

As the economy starts to recover, signs point to a much stronger environment for risk capital investment – this time around, Indiana will be in position to take full advantage of this upswing, to the benefit of building a more diverse, entrepreneurial economy.

The New Year has brought new opportunities for Indiana’s growing green manufacturing sector – the first few weeks of 2010 have seen several announcements that, collectively, show the momentum behind Hoosier manufacturing’s effort to electrify vehicles, make renewable energy sources a practical reality and more.

First, there was the news that Think North America had chosen Elkhart as the site of its first U.S. factory for its line of electric cars, joining Electric Motors Corp and NaviStar as the hub of a growing green vehicle cluster along Indiana’s northern border.

In Central Indiana, EnerDel – the only U.S. manufacturer of the cutting-edge lithium ion batteries that power hybrid and plug-in electric vehicles – announced a major manufacturing facility in Greenfield, Indiana, expanding a footprint that already includes its northeast Indianapolis headquarters and facilities in Hamilton County.  The Greenfield site will ultimately employ nearly 1,100.

Elsewhere, Brevini Wind (in Muncie) has earned $12.8 million in federal tax credits for its work manufacturing the gear boxes and other technologies for the turbines that generate electricity from wind.  Just two weeks ago, Secretary of Energy Chu visited Columbus to announce $54 million in federal stimulus grants to Cummins to increase engine efficiency.

Just like any technology-intensive, innovation-driven industry, a skilled workforce is a critical need for green manufacturing.  Here too, Indiana is moving forward – the state’s Department of Workforce Development recently earned a $6 million grant from the U.S. Department of Labor to create new curricula and retrain industrial workers from other sectors to take advantage of new green job opportunities.

Look for more announcements ahead from Indiana’s green manufacturing and clean technologies industries, as well as CICP’s Energy Systems Network initiative, as the state continues to solidify its position as a crossroads of energy innovation. 

Please take a moment to read the Indianapolis Star’s excellent editorial on Senate Bill 258, a measure which the Central Indiana Corporate Partnership strongly supports.

It’s perhaps obvious that reading is the defining skill on which all other education – and life success – depends.  The statistics are startling:  Only 2% of students who experience serious problems with reading go on to complete a 4-year college program.  Over 50% of people with the lowest literacy skills already live in poverty and over 70% are unemployed or have only a part-time job.  Nearly 70% of prison inmates nationally score below a fourth grade level of reading; 19% are illiterate.

In Indiana, approximately one of every four 3^rd graders fail the language arts I-STEP exam; we rank among the bottom half of states in National Assessment of Educational Performance (NAEP) reading tests as well.  There’s a clear connection between these failures in early reading and the fact that Indiana’s adult population is among the least-educated in the nation – a major economic handicap in our knowledge-based economy. 

The Indiana Department of Education is making reading education its top priority, exploring new resources and tools for educators to teach reading more effectively and measure student progress.  Private and charitable organizations support a network of extracurricular programs that support these goals – for example, the United Way’s “Success by Six” and “Early Reader’s Club” initiatives.

We also need public policy that supports reading success.  In reading education, 3^rd grade is considered the gateway year – as stated in the Star’s editorial, the last year that students learn to read, before lesson plans demand that they begin reading to learn.  According to the National Reading Panel, “Academic success, as defined by high school graduation, can be predicted with reasonable accuracy by knowing someone’s reading skill at the end of 3rd grade. A person who is not at least a modestly skilled reader by that time is unlikely to graduate from high school.” (emphasis added)

That’s why SB258 puts an end to social promotion from 3^rd grade to 4^th grade without demonstrating reading proficiency on the I-STEP exam.  This policy demands that schools teach every student to read, monitoring progress and allowing for special instruction from kindergarten on to make sure that the 3^rd-to-4^th grade threshold can be passed.

This policy has worked wonders in Florida, providing us a blueprint to emulate.  In 2002, the Sunshine State implemented a policy ending promotion of third graders who couldn’t read at grade level, implementing intensive reading instruction for retained students and other reforms; the results have been dramatic:

–      In 2001, 43% of Florida 3^rd graders failed to read at grade level or above as measured by FCAT (the Florida standardized test, akin to our I-STEP); in 2009 only 29% failed;

–      From 2002 to 2007, Florida climbed from 31^st in 4^th grade public school NAEP reading scores to 21^st, achieving the second highest positive change in NAEP scores in the nation; during the same time, Indiana slid from 15^th to 27^th in NAEP 4^th grade reading;

–      Using the non-promotion policy and focused intensive instruction, Florida cut is failure rates by one-third (FCAT 33%, NAEP 36%) in less than 10 years.

Florida’s path is clear – will Indiana follow? By requiring that schools meet their commitment to teach every student to read, SB258 is an important legislative component to our broader goal of giving future generations the best opportunity to succeed, academically and in life, by emphasizing what has been the called ‘the new civil right’ – the ability to read.

I hope you will take a moment to read the Indianapolis Star’s excellent editorial  on the fight for local government reform in the General Assembly.

The Central Indiana Corporate Partnership strongly supports reform.  Though the last legislative session was disappointing in its lack of progress on the broader Kernan-Shepard Commission recommendations, we have an opportunity this year to take at least a few small steps in the right direction  – focusing specifically on Indiana’s 1,008 township governments.

There are obvious ethics reforms that top this scaled-back agenda.  As lawmakers debate tougher ethics standards at the state level, they should also correct notable abuses among the townships.  It’s time to end nepotism in these offices, the widespread practice of hiring family members (often at exorbitant salaries).  (A review of public records show that two-thirds of township trustees share a last name with at least one person on their township payroll).  It’s also a clear conflict of interest to allow township employees to serve on the local legislative bodies that determine their budgets and salaries. 

As the state’s fiscal climate continues to worsen and county and municipal governments face a “one-two punch” from the recession and property tax caps, it’s also time for binding oversight of township budgets by county councils. 

Township governments spend more than $400 million a year statewide, and have over-taxed their way to more than $230 million in unused surpluses.  We’ve heard story after story of blatant waste, even fraud, in township finances.  At best, the system is inexcusably inefficient – for example, spending an average of eight times more in overhead than the typical private charity in Indiana to deliver every dollar of poor relief to the disadvantaged.

At a time when government at all levels must make tough choices, we can’t allow townships to continue taxing and spending unchecked.  Just as the Department of Local Government Finance approves county budgets, counties should oversee and approve township budgets.

We’re pleased that the Star continues to be a strong voice for reform, along with other media across the state.  With enough public attention and outcry from their taxpaying constituents, the General Assembly will move to reform a 19^th century system of local government to serve Hoosiers more effectively and efficiently today.

December brings gifts for our economic growth

We haven't had many weeks, in good times or bad, like the week of Dec. 14, one that saw nearly $120 million invested in Indiana's future as a life sciences community.

The Indiana University School of Medicine's announcement on Dec. 15 was first: a monumental $60 million grant from Lilly Endowment to implement a new Indiana Physician Scientist Initiative. This wonderful grant has many features, but at its heart the funding will allow the medical school to recruit, retain and advance a highly promising pool of talent, including 20 physicians who are researchers and innovators as well as practitioners. These current and emerging leaders in fields such as cancer, neurological and mental illness and diabetes will be looked to for discoveries that can transform health care Comments (0)

As we’ve reported in this space (here, here and here most recently), Indiana is making progress in building a more entrepreneurial economy, as measured by that most pragmatic of indicators – the amount of capital that private sector investors are willing to commit to the success of promising young companies.

The life sciences sector has led the way in this regard, and earlier this week our BioCrossroads initiative announced another major milestone in this journey towards a more diverse and dynamic ‘bio-economy:’ the creation of the $58 million INext Fund, the successor to the successful Indiana Future Fund announced six years ago as one of BioCrossroads’ first major initiatives.

INext, like the Future Fund, is supported by major institutional investors  - Eli Lilly, IU and Purdue, the Indiana State Teachers Retirement Fund, the University of Notre Dame and the Fairbanks Foundation – and will function as a ‘fund of funds.’  That is, INext will not invest directly in start-up firms, but rather in local and national venture capital firms that will in turn focus on Indiana opportunities.  This strategy lessens the risk to the Fund’s investors, and also attracts a broader pool of capital to Indiana. 

The Indiana Future Fund has been a rousing success, and support for the INext Fund shows the continued commitment among  the state’s corporate, public and university investors for continuing the strategy.  Here is the full press release on INext:

Indianapolis, Dec. 16, 2009 - Capitalizing on the continued strong growth of Indiana's life sciences industry and an active venture capital market, leaders from BioCrossroads, Eli Lilly and Company, Indiana State Teachers Retirement Fund, Indiana University, Purdue University, the University of Notre Dame, Richard M. Fairbanks Foundation, and Credit Suisse today announced the establishment of the INext Fund, a $58 million venture capital fund of funds.

Organized through BioCrossroads, Indiana's initiative to grow, expand and invest in the life sciences, and managed by the Credit Suisse Customized Fund Investment Group, the INext Fund includes investments from Lilly, the Indiana State Teachers Retirement Fund (TRF), IU, Purdue, Notre Dame, and the Fairbanks Foundation. This fund of funds is a capital pool that will invest in venture capital funds that are focused on the life sciences, thus encouraging and facilitating direct investment in Indiana life sciences opportunities.

"Six years ago, we launched the Indiana Future Fund to stimulate and grow Indiana's venture capital sector, and we've made incredible progress building a market where VC firms, both local and out of state, are investing in our promising life sciences companies," said David Johnson, president and CEO, BioCrossroads. "Launching a follow-on fund like the appropriately named INext Fund is proof of concept of BioCrossroads' mission, and evidence of the substantial market opportunities here in Indiana to put private equity to work. Capital formation is a huge problem for every region across the U.S., but Indiana's institutional investors have once again proven ready, willing and able to build and maintain strong funding sources for our entrepreneurial companies."

Lilly, one of the original participants in the Indiana Future Fund (IFF), has committed an investment in the INext Fund.

"The INext Fund will be a catalyst for the continued growth of Indiana's life sciences. Our investment in the fund is smart not only from Lilly's business perspective, but we also view it as a part of a collaborative effort to strengthen our community," said Bart Peterson, Senior Vice President of Corporate Affairs, Eli Lilly and Company. "Lilly's investment strategy is to find the best opportunities, and we look all over the world to find them. It just so happens that some of the best innovations are happening in our own backyard."

The Indiana Future Fund, a $73 million fund, has been the life blood of 14 Indiana life sciences companies, and continues to provide the foundation for Indiana's venture capital growth. The IFF has also been a trailblazer in securing additional capital from beyond Indiana for Indiana companies, helping to bring over $160 million to Indiana start-ups from venture capital firms across the country.

"Given the current challenges in the U.S. economy, building a return-driven fund of this magnitude is very impressive," said Phil Belt of Credit Suisse's Indianapolis office. "Indiana's life sciences industry is full of both promise and opportunity, and progress continues to be made. This state is now a life sciences leader and is on the map for venture capital firms from the east and west coasts and points in between."

Indiana has seen an increase in the number of entrepreneurial life sciences companies, both university-based and private start ups, since the formation of the IFF. One of the investments that the IFF firms made in 2006 was BioStorage Technologies, an Indianapolis based biomaterials storage and inventory management company. Since that time, BioStorage has tripled its workforce, announced a $6.1 million investment in a new facility in Indianapolis and will add another 125 employees by 2012.

"We brought this group of industry, university and community leaders together with a common goal -- to generate good returns on investment while doing good for our community," said Darren Carroll, vice president, Lilly New Ventures and chairman of the INext Advisory Committee. "This is how public-private partnerships work -- giving Indiana's life science companies the opportunity to compete and win in the global economy."

 "We continue to see promising innovations from our technology transfer offices more than 170 patents and 50 companies have come through the Purdue Research Foundation over the last six years," said Purdue University President France Córdova. "Having a vibrant venture capital community and bringing in new dollars from outside the state to help these companies grow is imperative. This funding builds the companies that will advance the life sciences and improve the health of Indiana's citizens."

Indiana University is tapping investments and private contributions to stimulate Indiana's economy. No tax or tuition dollars are involved. In early December, IU announced the formation of the $10 million Innovate Indiana Fund. "With incubators cropping up all over the state and breakthrough research coming out of our university labs, there continues to be great discoveries in our life sciences," said Indiana University President Michael McRobbie. "The INext Fund provides us with another way we can direct capital to talented and innovative companies and gives them another funding resource."

"By investing in INext, Notre Dame is supporting the advancement of the life-sciences industry in Indiana and throughout the nation, with the hope that this support will lead to new applications that will benefit the lives of many and also create successful businesses. It is a good investment from many perspectives," said Thomas Burish, Provost, University of Notre Dame.

Along with corporate and university investments, the INext Fund has received an investment commitment from Indiana's Teachers Retirement Fund as well as the Richard M. Fairbanks Foundation.

'Indiana's robust life sciences industry is one of the key drivers of our economy, and investing in INext is expected to deliver investment returns by capitalizing on that strength," said Steve Russo, Executive Director of the Indiana State Teachers Retirement Fund.

"The Richard M. Fairbanks Foundation is participating in the INext Fund both because we believe it is a good investment, but also because it is supportive of our goal of strengthening the economic vitality of our community," said Leonard J. Betley, president of the Richard M. Fairbanks Foundation.

About BioCrossroads
BioCrossroads (www.biocrossroads.com) is Indiana’s initiative to grow, advance and invest in the life sciences, a public-private collaboration that supports the region’s existing research and corporate strengths while encouraging new business development. BioCrossroads provides money and support to life sciences businesses, launches new life sciences enterprises (Indiana Health Information Exchange, Fairbanks Institute for Healthy Communities, BioCrossroadsLINX, and Datalys Center), expands collaboration and partnerships among Indiana's life science institutions, promotes science education and markets Indiana's life sciences industry.

The Tax Foundation has released its annual State Business Tax Climate Index for 2010, with good news for Indiana – we advanced two positions in the rankings, from 14^th to 12^th, and continue to lead the Midwest in business tax competitiveness.  Download the Executive Summary here and view the full report here.

While ‘business climate’ is an increasingly complex concept in today’s knowledge-based, innovation-driven economy, taxes still matter to companies seeking a hospitable location to locate and grow.  This latest news is certainly positive for the state’s prospects for attracting jobs and investment – the surest way to overcome the current fiscal challenges we’re facing.

As lawmakers gather at the Statehouse for Organization Day today, we urge them to forge ahead with the critical issue of local government reform.  As legislators ponder the growing gap between government collections and spending, and consider whether to include property tax caps in the Indiana Constitution, they can’t continue to ignore the fundamental need for structural reforms that would allow local government to do more with less. 

During the last session, the General Assembly rejected the common-sense government reforms recommended by the bipartisan Kernan-Shepard Commission, changes that could have saved taxpayers up to $600 million statewide (according to studies by Ball State economists).  This session, legislators should at least push for increased openness, oversight and accountability to ensure that tax dollars are used efficiently and effectively during these tough times.  As state-level lobbying reform and other government ethics proposals are in the headlines, transparency in local government (especially the oft-overlooked township offices) shouldn’t fall by the wayside.

We couldn’t make the case any better than this editorial from Gary Reiter – this version appeared in the Indianapolis Star a few weeks back.

Times too tough to ignore township government

Gary Reiter

The recession has hit Hoosiers hard – we’ve seen it in our 401(K) statements, the family checkbook, the fortunes of the businesses that make up our economy.  Government isn’t immune; there’s been a lot of attention over the last two weeks to the state’s plummeting revenues, short more than $250 million over the last quarter.

But even closer to home, local government is facing the budget axe, too.  The recession and the property tax caps passed by the General Assembly last year are a one-two punch that have forced Indianapolis into cutting funding for parks, the arts, correctional facilities (raising the specter of early inmate releases) and other public services. 

During times like these, there can be no sacred cows.  As Governor Daniels recently said, everything has to be on the table – and that includes the operations and oversight of township government.

A few weeks ago, the Indianapolis City-County Council held a hearing on the financial practices of Marion County’s township offices.  I attended to learn more, and came away more convinced than ever that we desperately need reform.  Tough times demand an informed public, but when it comes to township officials, taxing and spending happens largely out of sight and out of mind.

I heard several troubling facts during the Council hearing that led me to do additional research:

Marion County township governments are hoarding more than $48 million in unused surpluses.  We’re being overtaxed, and townships are sitting on more than enough excess cash to plug the budget deficit for the entire county – instead of maintaining our parks, restoring arts programs and keeping criminals behind bars, we’re padding the bank accounts of township trustees. 

Washington Township, for one, holds a $5.4 million surplus, enough to operate for two years without taxing citizens another cent.  You may recall that the Washington Township advisory board voted itself a 69% raise last year.

In Franklin Township, the trustee’s office held a surplus of more than $5.5 million at the end of 2008.  Wayne Township has an amazing $12.7 million surplus!  Imagine if these funds could be spent on public safety, economic development or mass transit…or used to cut property taxes for homeowners.

The townships are also inefficient in administering the money they did spend.  In Center Township, less than half of spending related to poor relief went directly to those in need.  In Warren Township, the trustee’s office spent $12.20 in administrative expenses for every dollar dedicated to poor relief and fire protection.  In Washington Township, the figure was $9.44 in overhead for every dollar in services. 

It’s incredible that tens of millions of our tax dollars continue to be funneled through this largely-ignored layer of bureaucracy during a fiscal crisis, while the City-County Council has little authority except to hold hearings. 

It’s time to shine a light on township government.  It’s time to push for oversight and accountability, and a real public debate over whether townships have outlived their usefulness altogether in providing services that could be more efficiently and effectively provided at the county level. 

This debate starts with taxpayers getting informed and  speaking up – please don’t fail to make your voice heard.

Gary Reiter is the Chief Financial Officer of KERAMIDA Inc., a Global Environmental, Health, Safety, and Sustainability firm located in downtown Indianapolis and a resident of Center Township.

Infrastructure plan needed to avoid economic gridlock

David Holt

We’ve all been stuck in gridlocked traffic – it’s frustrating, especially when you’re rushing to make it to work or an important meeting on time.

But imagine you’re stuck while hauling more than a thousand tons of cargo, trying to make a tight delivery schedule.  And imagine if the cause of this ‘traffic jam’ wasn’t typical rush hour congestion or a minor fender bender, but a catastrophic infrastructure failure.

This was the situation that confronted dozens of barges on the Ohio River on an otherwise tranquil Sunday morning, September 27^th, when one of the doors on the Markland Locks came unhinged and stalled traffic on the river.  They waited more than 20 hours while an auxiliary channel was opened.  The Markland Locks are located near Vevay, Indiana, about 25 miles east of Madison; they accommodate more than 55 million tons of freight every year.

Even with the alternate route open, it’s taking barges three times as long to navigate through Markland as the locks are repaired.  Lockmaster Gary Birge called the incident his “worst nightmare” and “catastrophic.”  Army Corps of Engineers officials were unsure how long repairs would take; the Corps recently gave the 40-year-old Locks a ‘D’ rating during a regular assessment for corrosion and cracking.

The incident at Markland isn’t just about a temporary inconvenience to shippers.  It’s a warning about the importance of investing in our infrastructure for our broader economic health.

Indiana is a leader in the transportation of goods – our ‘Crossroads of America’ slogan is more than just marketing fluff.  We’re located within a day’s drive of 75% of the U.S. and Canadian population and businesses.  We’re ranked 1^st in the nation for interstate highway access, 9^th in rail miles and 14^th in cargo moved by water, with three quality maritime ports (two on the Ohio River and one on Lake Michigan).

This adds up to a sizable logistics industry; Indiana ranks among the top ten states in per capita logistics jobs.  Our distribution strength also supports our manufacturing industry, giving these companies the ability to quickly and efficiently get their products to customers across the country and around the world.  So preserving our status as a logistics juggernaut must be a critical economic priority.  We can’t afford to simply coast on our geographic advantages – we have to proactively invest in our infrastructure assets. 

To that end, Conexus Indiana, the state’s logistics and manufacturing initiative, has embarked on the development of a statewide logistics strategic plan. The plan is being put in place by a group of 35 statewide industry executives representing all facets of the logistics and manufacturing industries – air, rail, trucking, infrastructure, warehousing/distribution and service firms – and has already identified opportunities and challenges Indiana faces in ensuring the continued flow of goods that originate and terminate in Indiana and add value to the logistics industry. 

In fact, Conexus Indiana has identified decaying locks and dams on the Ohio River as a serious threat. With the disaster caused by the broken gate at the Markland Locks, it’s clear we need to think ahead to prevent future incidents and protect our waterways as commerce corridors for the state. 

After all, when one cog in the supply chain wheel breaks, the effects are felt broadly – not only by the producers of these goods who depend on the waterways as a means of transportation, but also by all those who touch their products in the supply chain.

Later this year, Conexus will issue this report addressing the state’s logistics strengths, opportunities and challenges; not just for waterborne freight, but rail, highway, and bringing these modes of transportation together as an integrated system.  A solid roadmap for our logistics industry is essential to avoid economic gridlock, and squandering a critical competitive advantage for Indiana.

David Holt is Vice-President of Operations and Business Development for Conexus Indiana, the state’s advanced manufacturing and logistics initiative.

BioCrossroads has collected nearly $80 million through its two investment vehicles, the Indiana Future Fund and Indiana Seed Fund, and is putting it to work in promising new companies.  Here’s an announcement on the Seed Fund’s latest investment, FAST, which has commercialized a new diagnostic technology for the testing and treatment of acute kidney injuries: 

Indianapolis, IN, Oct. 19, 2009 --  BioCrossroads’ Indiana Seed Fund has made a follow-on investment in FAST, a rapidly growing, Indiana-based life sciences start-up.  FAST is using patent-pending technology to develop a tool for healthcare professionals treating acute kidney injury, a condition afflicting some 3.5 million Americans.  The percentage of patients hospitalized for acute kidney injury has increased 500% in the last twelve years.

 “We are thankful for BioCrossroads’ support,” said Joe Muldoon, CEO of FAST.  “The lackluster capital market has proven to be a challenge.  We have remained capital efficient, advanced product development and initiated the FDA approval process – all of which have been key components of our additional investor support.  We are very excited about our upcoming pre-clinical trials this year.”

FAST has had other recent fundraising successes, including an announced commitment by the Purdue Research Foundation/Purdue University Emerging Innovations Fund to invest $200,000 and a $1.1 million grant from the National Institutes of Health.  The company has also received significant follow on funding from its original shareholders and angel investors.

The FAST investment is part of a positive trend for seed and early stage capital investment in Indiana, which doubled from 2007 to 2008 based on deals tracked by the National Venture Capital Association, and is on track to grow another 40% in 2009 based on data available to date.  I should note that another CICP initiative, TechPoint, is also helping drive entrepreneurial growth in Indiana through its HALO angel investor network – this group has invested more than $10 million in high-tech start-ups since 2008.

It’s no secret that U.S. students are falling behind their international peers when it comes to math and science.  The latest Program for International Student Assessment (PISA) test scores shows our students performing below average among other industrialized countries in both math and science – indeed, our average scores rank us 24^th out of 25 industrial (OECD) nations.

Today, the latest National Assessment of Educational Progress (NAEP) math scores show progress has stalled nationally and here in Indiana – another bad sign.

But here in Indiana, our BioCrossroads initiative is tackling the need to improve science, math and technology education through its I-STEM (Science, Technology, Engineering and Math) Network, a resource for K-12 teachers designed to raise the level of STEM education in Indiana.  I-STEM, which brings together higher education institutions with private and philanthropic partners, offers curriculum ideas, professional development opportunities and other resources for educators.

Today, the Lilly Endowment announced its continues support for I-STEM – valuable aid in the battle to boost student achievement in these critical disciplines.  More details:

Investing in the future: $2 million Lilly Endowment grant to CICP Foundation will support Indiana Science, Technology, Engineering and Mathematics (I-STEM) Resource Network I-STEM's services provide rigorous and quality professional development programs  --  more than 6,000 teachers and counting

INDIANAPOLIS, October 15, 2009- The Indiana Science, Technology, Engineering and Mathematics (I-STEM) Resource Network announced today that a $2 million grant from Lilly Endowment Inc. to the Central Indiana Corporate Partnership Foundation will support the I-STEM Resource Network. The initiative was established in 2007 and partially funded by a $3.4 million grant from the Endowment.

The Network is a statewide consortium of 18 Indiana higher education institutions dedicated to measurably improving K-12 student achievement in the STEM disciplines.  Over the last two years, the Network has focused on providing research-based professional development for current Indiana math teachers to help meet statewide academic standards. More than 6,000 teachers, who work with more than 150,000 K-12 students throughout Indiana, have participated in I-STEM professional development programs.

"Lilly Endowment is pleased to support the I-STEM Network, which impressively marshals the intellectual resources of Indiana colleges and universities," said Sara B. Cobb, the Endowment's vice president for education. "This unprecedented collaboration should significantly help

K-12 teachers enhance the impact of their teaching in these STEM disciplines so critical to our state's future," added Cobb.

 While programs are being developed across all STEM disciplines, the I-STEM Resource Network has focused on statewide programs in mathematics, including coursework for middle level mathematics teachers and the development of the Indiana Algebra Readiness Initiative, a series of conferences and workshops led by nationally-recognized experts, to help teachers prepare students for success in algebra.

Algebra is a "gateway" course  and a focus for the teacher training because it is a critical building block for the more advanced mathematics courses. Math educators agree that learning algebra is absolutely critical if a student has any aspirations for a career in the life sciences.

"More than ever, algebra teachers need a variety of resources to help all students in Indiana improve their algebra skills. The Network provides those resources," said Bill Reed, past president of the Indiana Council of Teachers of Mathematics and algebra and calculus teacher at Hamilton Southeastern High School in Fishers. "It is imperative for teachers to continue to improve their knowledge and methodologies for teaching algebra."

"By providing Indiana's current teachers with easy access to rigorous and quality professional development opportunities in the STEM disciplines, I-STEM has provided the foundation for strategic, systemic change in STEM education in Indiana," said Anne Shane, vice president of BioCrossroads and one of the founders of the Network. Improving achievement in science and math will maximize students' opportunities to succeed in the future life sciences workforce. To nurture and help build this life science sector  is one of BioCrossroads' key initiatives.

 "Research shows that the most important factor in accelerating student achievement is teacher quality. The I-STEM Network provides access to professional development that allows teachers to brush up on their subject matter expertise in math and science that they need to be more effective in the classroom," said Tony Bennett, Ph. D., Indiana superintendent of public instruction.  "The programs are also a powerful tool to develop our future workforce and to encourage students to enroll in the STEM disciplines in postsecondary education." The Indiana Department of Education has been instrumental in the development of I-STEM.

Besides providing professional development tied to Indiana's academic standards, STEM Resource Centers at each partnering institution in the Network have been providing grassroots education opportunities for teachers in their regions and throughout the state.

The Math Matters program in Southeastern Indiana is a joint project that Indiana University-Bloomington's School of Education and a team from the Lilly Endowment-funded initiative in the region, Economic Opportunities

2015 (EcO15),  have  instituted to bring project-based learning into math instruction.

K-6 Teacher Science Institutes have been held at St. Mary's College and Integrated Math-Science Workshops (MS2) for teachers in grades 5-9 were organized at Notre Dame. 

PRISM and the Homework Hotline at the Rose-Hulman Institute of Technology, both also funded by Lilly Endowment, continue to provide support to teachers and students looking for information on how to teach and learn STEM subjects.

"Teachers just don't have the time to search online for quality resources to aid in classroom instruction. PRISM has done the research for us," said Diedre Adams, a science and math teacher at West Vigo Middle School in Terre Haute who was a 2008 Albert Einstein Distinguished Educator Fellow at NASA.  "The lessons and information it provides are invaluable in helping STEM teachers supplement classroom materials, locate the latest research, and find new and fun ways to motivate students in science and math."

The Network is also involved in building a strategic plan for science education reform with the Indiana Department of Education.  The development of new professional development programs to be offered through the I-STEM Network for science teachers is in progress.

"In its short history, the I-STEM Network has made significant progress in providing Indiana's STEM teachers with new professional training opportunities, and this additional funding will build upon that foundation," said Bill Walker, executive director of the Network.

"Instructors bring new ideas and energy into these professional development classes. This is good for the teachers and their students."

Purdue University provides day-to-day management for the I-STEM Resource Network.  The participating institutions are: Ball State University, Indiana University Bloomington, Indiana University Purdue University Fort Wayne, Indiana University Purdue University Indianapolis, IU Southeast, Marian University, Northwest Indiana Consortium for Teacher Education (Valparaiso University, Purdue Calumet, IU Northwest, Purdue North Central and Calumet College at St. Joseph), Purdue West Lafayette, Rose-Hulman Institute of Technology, University of Indianapolis, NISMEC (University of Notre Dame, St. Mary's College  and IU South Bend) and the University of Southern Indiana.

INDIANAPOLIS (October 6, 2009) – Senior Business Development Director Scott Fulford accepted Indy Partnership’s three Excellence in Economic Development Awards today at the International Economic Development Council annual conference in Reno, Nevada.

Indy Partnership was named the winner in two award categories and received an honorable mention in a third. The annual Excellence in Economic Development Awards are meant to recognize the world’s best economic development programs and partnerships, marketing materials, and the year’s most influential leaders. The awards are broken down into three population tracks – under 50,000; 50,000-200,000; and more than 200,000 people. Indy Partnership competed in the population of more than 200,000 people category.

Excellence in Economic Development Awards won by Indy Partnership include:

·Best Economic Development Website in America – WINNER

·Best Economic Development Newsletter in America – WINNER

·Best Economic Development Magazine in America – Honorable Mention

Indy Partnership President Ron Gifford, who is currently in China with the Indiana Pacers on a business and cultural exchange, said that this is the second time this year that Indy Partnership has been recognized for excellence by national and international organizations. Site Selection, a leading national economic development trade magazine, named Indy Partnership one of the top 10 economic development groups in the country in May.

“The International Economic Development Awards are our industry’s Academy Awards or Grammy’s,” Gifford said. “When you consider that we were competing against regions that are many times our size – regions including more than 100 other major metros such as New York, Los Angeles, Chicago and Houston – it really speaks to the quality of the work that Indy Partnership is doing on behalf of Central Indiana.”

For Indy Partnership, these awards follow 18 months of strategic planning and execution of a new brand identity, which includes the award winning website, newsletter and magazine.

The Indy Partnership website (www.indypartnership.com) is an advanced interactive economic development tool with geographical information system (GIS) mapping that allows both point data and thematic data to be plotted on the same map. Indy Partnership’s site was the first dedicated economic development website in the U.S. to offer this technology, which is marketed as Indy InSite™ to site selection consultants and corporate location managers worldwide.

The Indy Partnership monthly electronic newsletter, which also carries the Indy InSite moniker, is distributed nationally to site selection consultants, business leaders and Indy Partnership investors. The newsletter prioritizes data and information downloads, quick-read facts and figures, and multimedia that appeal to a broad economic development audience.

Indianapolis Region, which received an honorable mention for best marketing magazine in America, is a 52-page annual profile of the Indianapolis Region. It includes 10 original feature articles on the advantages of doing business in the 10-county Indianapolis Region, and other content of interest to economic development and general business readers. Indianapolis Region is produced in partnership with and as a supplement to the Indianapolis Business Journal.

The Excellence in Economic Development Awards are adjudicated by a distinguished, international group of economic development experts from both the public and private sectors.

About The International Economic Development Council

The International Economic Development Council (IEDC) is the premier membership organization dedicated to helping economic development professionals create high-quality jobs, develop vibrant communities and improve the quality of life in their regions. Serving more than 4,600 members, IEDC represents the largest network of economic development professionals in the world. IEDC provides a diverse range of services, including conferences, certification, professional development, publications, research, advisory services and legislative tracking. For more information about IEDC visit www.iedconline.org.

About The Indy Partnership

The Indy Partnership is a privately-funded, not-for-profit organization dedicated to bringing new jobs and capital investment to the Indianapolis Region—10 central Indiana counties including Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Morgan, Monroe, and Shelby counties. Working collaboratively with local economic development officials, government, universities, and the business community, the Indy Partnership secures the Indianapolis Region relocation of companies through superior economic development services. Key services include point of contact for business development leads, incentives assistance, business research and demographic data, and regional marketing. For more information about Indy partnership visit www.indypartnership.com.

Yesterday, Deloitte Consulting released a national survey of manufacturers in conjunction with The Manufacturing Institute (the research and education arm of the National Association of Manufacturers, or NAM).  Considering the vital importance of manufacturing to Indiana’s economy – we continue to be the most manufacturing-intensive state in the nation, with one of every five working Hoosiers employed in the industry – the results have special relevance here.

In a question that cut right to the heart of the matter, respondents were asked to identify the top three drivers of business success over the next two or three years.  The responses were, in order of importance – new product innovation, high-skilled workforce, and low-cost producer status.

Policymakers can do their part on the ‘low-cost producer’ front by ensuring a competitive business climate that minimizes tax and regulatory costs on manufacturers.  We’re doing well enough in this arena, as the Tax Foundation reports that the state has earned the 12^th best tax climate in the nation, leading the Midwest in this category.

But the other two categories relate directly to human capital – a skilled workforce, and innovation, which comes from talented and creative employees working together.  Because workforce drives productivity, the availability of skilled workers even impacts a company’s ability to be a low-cost producer (to do more with less).

This reaffirms the strategy of our Conexus Indiana initiative, which identifies human capital as the primary challenge facing the state’s manufacturing and logistics industries and is implementing a variety of strategies to connect industry and academia, pull more young people into the workforce pipeline for these fields, and dispel public perceptions that these industries don’t offer a promising array of high-tech careers.