For the last half-decade, Indianapolis has shown greater job gains than any other large city in the Midwest. During the same period, the Indy Partnership has been responsible for the area’s economic development.
I was going to play smart aleck this week. I was going to write in hick dialect. I was going to lambaste us Hoosiers over our stubborn adherence to the status quo, our penchant to take things slow, our preference for partisanship, our pooh-poohing of progress and our bull-headed gumption to go it alone in a global economy. Then news broke that Indiana has the highest high school dropout rate in America. So I figured that for two reasons, I’d…
What a great Independence Day weekend. Like many businesses, IBJ Corp. took both Monday and Tuesday off for a midsummer break. The four-day weekend squeezed our deadlines a bit, but we happily paid the price. After a strong first half of the year, we deserved the break, and I don’t think we missed much by not being here. On Wednesday morning, it was as if all the July 4 fireworks blew the humidity out of the atmosphere. We woke up…
The Indianapolis Colts in early July will unleash its most aggressive marketing campaign ever-even though demand for tickets, club seats and corporate suites at its RCA Dome home exceeds supply. The push is all about the future. Billboards around the state will proclaim that those who want to see games in Lucas Oil Stadium when it opens in 2008 “better not wait until the dust settles,” said Tom Zupancic, Colts senior vice president of sales and marketing. Some radio, television…
The lesson Amy Kurzekwa taught the folks at the downtown Gregory & Appel Insurance agency reaches far beyond what they learned about premiums and deductibles. Since 1992, she has taken the bus to her job there as a clerical assistant, performing such tasks as sorting and delivering the office mail and filling the copy machines. While most anyone can do that, Kurzekwa, 37, is irreplaceable to her co-workers. Her role in opening their eyes to the fact that people with…
GREENSBURG-Companies from Cincinnati to Indianapolis hoping to drive home business from Honda Motor Co.’s 2,000-employee plant might want to watch for an economic pothole hiding up the road. Giant auto plants plopped onto the prairie, while buying hundreds of millions of dollars in goods and services from companies in the state, also tend to swallow workers from established employers. That likely will force some Indiana employers to jack up wages and benefits to retain and attract workers pining to wear…
When an unexpected disaster strikes, people look for answers. They want to know how much of what they had before is left. It takes a while for the shock to wear off, but as heads slowly clear up, a lot of reassessment takes place. The global meltdown in May in securities markets apparently hit most investors, retail and professional alike, like a misguided sledgehammer to the back of the head. Readers of this column were kept wellinformed of the approaching…
As I write this, the stock market has fallen off a ledge and given up, depending on the index, between 7 percent and 12 percent in a bit over a month. After that kind of fun, you might be ready to throw yourself off a ledge, or at least cash in what’s left of your portfolio. Yes, the last few weeks have been trying, but being an investor in U.S. stocks since the beginning of this decade has been no…
As an economic forecaster, I am almost always optimistic. But that’s not a personality trait. It’s the nature of the business. The economy around us is doing amazingly well. We’ve had much longer economic expansions, steady job and income growth, and less frequent recessions for more than two decades now. So when you deliver an optimistic forecast these days, you stand a pretty good chance of being right. But if there’s one area where my optimism vanishes, it is this-how…
In early May, I wrote this about home-builder stocks: “They failed to break out of their August highs, however, and they have been struggling ever since. This is a textbook example of when the best risk/reward ratio presents itself for shorting.” Using the home-builder exchange-traded fund XHB and selling it short yielded a one-month gain of 18.3 percent. Not bad! If home-building stocks are crushed, what does that say about the real estate market in general? Here are a few…
You don’t always see it or hear it, but it’s there. The quiet panic that sets in after a theater company or a newspaper or any organization realizes it must begin appealing to a new breed of consumer if it wants to survive. Young consumers of news want it in bite-size portions delivered to their desktops. Young church-goers want dynamic worship services and activities to match, not tradition-bound church groups that require elections, officers, meetings and minutes. And young patrons…
All told, individuals, corporations and foundations gave $260.3 billion to charity in 2005, 2.7 percent more than the year before even after adjusting for inflation, according to data compiled by researchers at Indiana University’s Center on Philanthropy for the annual “Giving USA” report. The report, set to be released June 19 by the Illinois-based Giving USA Foundation, answers a question that has been lingering for more than a year: Would the nation’s outpouring of support for victims of an Asian…
In late April, Brightpoint Inc. investors had every reason to feel giddy. Shares of the wireless phone wholesaler were up 85 percent for the year, after advancing 113 percent in 2005. Today, those heady days seem like a distant memory. Since reaching a high of $28.50 April 27, Brightpoint’s shares have lost 50 percent of their value, lopping more than $700 million off the company’s market value. “Clearly, wireless is out of favor on Wall Street and has been for…
Americans like to keep score on things. And in the realm of economics, there are plenty of things to keep score on. But the economy is a huge, often unwieldy beast, and the data we use to track it are often quite a bit fuzzier than the rows of hardlooking numbers in the graphs and statistical reports we digest would make it seem. In fact, as the old joke goes, we economists like to present growth rates out to two…
Would landing a new Honda plant be a plus for the Indiana economy? You bet it would. In fact, it’s hard to think of any similar-size investment that holds the same immediate potential for supporting additional jobs beyond those inside the plant walls. The project scores well on just about every objective measure you can come up with to assess its attractiveness. It draws on skills and occupations Indiana already has. Its activities hold great promise for new business for…
Growing global competition is bringing local manufacturers together. And the definition of local is changing from around the corner to within 500 miles. Officials from Purdue University have conducted a series of manufacturing summits encouraging Indiana plants to tear down their separatist walls and become an integrated part of regional supply chains. “Supplier-based manufacturing is based on long-term relationships in a 500-mile radius, so we need to think about Indiana manufacturing regionally,” said John Sullivan, director of Purdue’s Center for…
By restricting the new $105 million Indiana Investment Fund I to deals within state lines, Gov. Mitch Daniels hopes to simultaneously spur economic development and earn a spectacular return for Indiana’s retired public employees. But venture-capital experts warn it’s nearly impossible to have it both ways. “You need to be very, very clear what your objectives are when you invest [pension] money. Is it for economic development or to help the pensioners earn better pensions?” said John Taylor, vice president…
Only 64 percent of Indiana’s fifthgraders passed the latest ISTEP+ test in science. A little better-76 percent-passed the math component. Unfortunately, as children advance in grades, their ISTEP+ math scores worsen. By eighth grade, only 64 percent passed the math portion of the test. Yet, economic development officials in Indiana-and much of the country-want young students to choose to study in college areas of advanced manufacturing, life sciences, informatics, agribusiness and an array of disciplines that require a strong foundation…
During the 1992 presidential campaign, H. Ross Perot used the phrase “that giant sucking sound” to describe what he feared would be a rush of American jobs into Mexico should the U.S. approve the North American Free Trade Agreement. In Indiana’s 2006 economy, “that giant sucking sound” describes the rush of Indiana talent across the state line to anywhere but here. In a phenomenon known as the “brain drain,” Indiana exports more young talent than it imports. But suppose we…
How much should an executive be paid? More or less than a professional athlete? How much medical care is a person entitled to receive? Does that depend on his or her age or the genetic code that she or he carries? We love to agonize over these questions. To the pure of spirit, all people are worth the same. To the pure of thought, all are worth the value they contribute to satisfy the wants of others. Since few of…
