Home » Economy

Economy

Articles

DANIELS’ DEAL CLOSERS: IEDC generating jobs, but economy shares part of credit

It would have been big. Just last month, a team of officials from the Indiana Economic Development Corp. and The Indy Partnership, its local equivalent, were furiously negotiating with South Carolinabased fire-engine maker American LaFrance. Intrigued by a mix of economic incentives and Indiana’s central location, American LaFrance considered moving its operations to Marion County. In formal negotiations, the company dangled promises of 653 jobs and a capital investment of $18.5 million. State records don’t reveal what incentives Indiana offered…

Read More

VIEWPOINT: To be a logistics leader, state needs a plan

Indiana is poised to become the country’s logistics center. Recently, there has been a lot of discussion on that topic. Now is the time for business, government and education to come together and make it happen. SupplyNet 2006-the recent statewide conference that brought together not only transportation, distribution and logistics industries, but also representatives from manufacturing, retail, information technology, government and academia-detailed the broader picture of supplychain management. As a cutting-edge business strategy, supply-chain management integrates internal and external logistics…

Read More

ECONOMIC ANALYSIS: Wanted: a broader view on public-policy issues

There’s nothing wrong with self-interest in politics. We elect representatives to look out for our interests, after all. So when legislation and policies affect things that matter to us-especially if it’s a matter of financial interest-many of us squawk, scream or otherwise throw a fit. And we hope to get noticed. But in policy debates in Indiana in recent years, we’ve been getting lazy. It’s easy enough to defend your interests, of course, but it’s much harder to convince those…

Read More

EYE ON THE PIE: Beware cost increases you can’t see

There I was at the grocery store engaged in economic research. I found a plasticwrapped pack of 24 half-liter bottles of “spring water” from a famous soft drink company was $4.99, or $1.57 per gallon. The store brand for “spring water,” packaged in the same fashion, was $3.88, or $1.22 per gallon. A 24-pack of regular or diet 12-ounce soft drinks from the same famous company was selling for $6.49, or $2.97 per gallon. That’s just about the price of…

Read More

Tower erector rises from ruin: Once bankrupt, water tank firm grows into industry giant, acquires competitor

From the ashes of bankruptcy in 1986, an Avon-based firm has ascended to the top of an industry that might seem old-fashioned: building and maintaining water towers. But the owners of Phoenix Fabricators and Erectors Inc. say new demand for their product, driven by factors as diverse as aesthetics and alternative fuels, promises to boost the firm’s $80 million in annual sales as Phoenix grows from within and through acquisitions. Phoenix this month acquired Sebree, Ky.-based Pittsburgh Tank and Tower…

Read More

Area construction employment surging: Workers stay busy as industry experiences 15 consecutive months of job growth

Building tradesmen in central Indiana don’t need a mind-numbing jobs report to tell them construction workers are in high demand. They need not look any further than their apprentice programs and union halls to gauge the industry’s health. The way the barometer works is simple: Full apprentice classes mean contractors are hiring and empty union halls mean they’re working. “When the benches are empty, that’s a good thing,” said Mike Kerr, a principal at locally based contractor F.A. Wilhelm Construction…

Read More

ECONOMIC ANALYSIS: Good transportation paves the way for strong economy

“Like it or not,” noted author Richard Florida opined as he looked out over a crowd that recently gathered in Indianapolis to discuss economic development issues in central Indiana, “you are all part of the greater Chicago region.” That might come as news to you who pay taxes, follow sports, or subscribe to a newspaper. But the point is well made. In the larger scheme of things-the so-called Shanghai perspective one would take in looking at our economy from the…

Read More

VIEWPOINT: Illiteracy is a hot economic issue

“Is anybody there? Does anybody care? Does anybody see what I see?” So goes the refrain from the musical “1776,” when George Washington communicates his frustration with how badly the Revolutionary War is going while the Continental Congress continues to debate the pros and cons of declaring independence from the British crown. Does anybody in Indiana see what I see? I see an economy, slowly recovering, but not booming like the rest of the country. I see state tax collections…

Read More

ECONOMIC ANALYSIS: Improving state’s economy requires a team approach

More than 50 years ago, the famous economist Joseph Schumpeter told a simple story that perfectly captured the essence of market capitalism. It’s a turn-of-the-century tale of a railroad being built in a part of the country where none had existed. The new investment rapidly upsets the order of everything-once ideally situated towns are left high and dry, while others move up in stature as they exploit newfound advantages. It’s messy and it’s painful, but the result is for the…

Read More

Daniels seeks to copy key-clusters strategy: Industry initiatives would mimic BioCrossroads plan

If imitation is the sincerest form of flattery, BioCrossroads has been vindicated. Gov. Mitch Daniels hopes to see a series of similar industry initiatives sprout around key clusters in Indiana’s economy. He envisions parallel initiatives for manufacturing, transportation and logistics and a series of other crucial business sectors. “We’d love some company,” said BioCrossroads CEO David Johnson. As outlined in Daniels’ “Accelerating Growth” economic development plan released last month, the initiatives would be based on proven Indiana strengths and identifiable…

Read More

Smaller banks seeking relief: Legislation takes on costly regulatory costs

German American Bancorp in Jasper has spent more than $1 million the past two years complying with the stringent accounting provisions of the Sarbanes-Oxley Act. The cost alone is reason enough for the community bank’s president and CEO, Mark Schroeder, to support a measure exempting smaller public companies such as his from Section 404 of the act. He even traveled to Washington, D.C., May 3 to testify in front of the U.S. House of Representatives Small Business Committee. “Ultimately, this…

Read More

CHRIS KATTERJOHN Commentary: Now we have a plan-let’s use it

For years, Indiana politicians-at least the smart ones-have talked about the importance of economic growth and development, and behind the scenes business leaders have replied, “Duh. How about coming up with some kind of plan?” This was always a hot button for Dave Goodrich, retired real estate executive and former head of Central Indiana Corporate Partnership. In his days at CICP, Goodrich would bend the ear of anyone willing to listen about the need for a plan. Well, how does…

Read More

Special events pay off: Growth seen in career opportunities, event numbers

Special events aren’t just fun and games-they’re big business, generating careers and economic activity that are anything but frivolous. Special event spending in Indianapolis is nearly $3 billion a year, according to Bob Shultz, public relations director for the Indiana Convention & Visitors Association. Annual spending for special events worldwide is $500 billion, according to research conducted by the Chicago-based International Special Events Society. In Money Magazine’s annual “Best Jobs in America” survey, meeting and convention planners were ranked in…

Read More

BRIAN WILLIAMS Commentary: Should we invest in ethanol or education?

During times of high gasoline prices, the investment made by the Daniels administration in six ethanol plants would seem prudent. The touted benefits of ethanol plants are that they create jobs in rural communities, support Indiana corn growers, improve air quality, and lower dependence on foreign oil. As an Indianapolis resident with little exposure to our farm economy, my first question was, “How do you make ethanol?” Ethanol is made by fermenting and distilling simple sugars like those found in…

Read More

TAWN PARENT Commentary: Scattered images from abroad

We landed in the Marble City, nearly blinded by the light and the white and the reflection of it all. I think of Athens as the Marble City because of its many ruins, but also because of all the other marble buildings and the slippery marble sidewalks and, in our apartment, the marble walls and floors and marble countertops that make so much noise when you set your cup down. We felt compelled to bring some marble home with us….

Read More

New funds target life sciences: MidPoint concentrates on agricultural technology; Heron aims at broader market

Two new locally based venture capital funds believe Indiana is ripe with opportunity for biotech deals. With $20 million under management, Heron Capital LLC is broadly focused on the whole Hoosier life sciences market. Attempting to raise $30 million, the Mid-Point Food & Ag Fund LP has a narrower concentration: high-technology related to farming and nutrition. “We’re very excited about our prospects,” said Heron Managing Director Greg Maurer. “We have a number of deals in the hopper, some of which…

Read More

BioCrossroads seeks help teaching math and science: Education center to bolster students’ careers

Indiana life sciences initiative BioCrossroads wants to improve the science and math skills of Indiana’s elementary and high school students. To figure out how, it’s asking the public for ideas. BioCrossroads released a “request for interest in participation” in the creation of a new K-12 Indiana Science, Technology, Engineering and Math Education Resource Center. Patterned after the North Carolina Science, Mathematics and Technology Education Center, BioCrossroads’ STEM is meant to be a Web-based, largely virtual organization. It would coordinate math…

Read More

EYE ON THE PIE: Mysteries abound in Indiana

There is so much I do not understand about Indiana. After living here for 35 years, after visiting every county and traveling almost every mile of state highway, after making friends with thousands of Hoosiers, I am in the dark on so many issues. Here are three examples: Example 1: What do Mitch Daniels, Arnold Schwarzenegger of California, and Kathleen Blanco of Louisiana have in common? They are all governors who have massive approval deficits. According to Survey USA (and…

Read More

ECONOMIC ANALYSIS: It’s time we get started on a new state economy

Have you ever plunked down a lot of money for something and worried if you made the right choice? You have plenty of company. To cope with that insecurity, some of us try to persuade our friends to follow our footsteps. We put forth convincing arguments why our brand of car, or our new electronic gizmo, is really the best thing, and feel comforted and vindicated when they make the same choice we made. For too many years, that simple…

Read More

At age 2, Future Fund still work in progress: So far, 7 startups have received investments from BioCrossroads

For two years now, the $73 million Indiana Future Fund has been at work in the Indiana life sciences market. BioCrossroads, Indiana’s public-private life sciences economic development initiative, is pleased with the results so far. “When we put the Indiana Future Fund together and surveyed the landscape, there were only two or three [local venture capital] firms that really identified themselves as in [the life sciences] area,” said BioCrossroads President David Johnson. “Now we see much more traffic than we…

Read More