Monthly Archives: January 2012

Who is “LEEDing” the Way?

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Categories: Energy, Environment

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Put "green" and "government" in the same sentence and the story is usually about funding fights in our nation’s capital. In this case, Washington, D.C. has been recognized as having the most LEED-certified green buildings per capita. More than 100 are used by the federal government. Colorado is the top state. Governing reports: 

The District of Columbia and Colorado have the most LEED-certified commercial and institutional green buildings per capita in the United States, according to a report released Thursday by the U.S. Green Building Council (USGBC).

D.C. easily led the nation with 31.5-square-feet of LEED-certified space per capita as of 2011, according to the report. The council highlighted the renovation of the U.S. Treasury Building, which became the oldest LEED-certified building in the country, as an example of the city’s work toward becoming a more sustainable community. More than 100 D.C. buildings used by the federal government are LEED-certified, according to a complete list of LEED projects in the United States provided by the USGBC, along with dozens of local government, private and non-profit buildings.

The city’s green-building efforts began in 2006, when the city council passed a bill requiring that all publicly-owned commercial projects be LEED-certified, according to a USGBC database of policies in all 50 states. D.C. also initiated an incentive program in 2009 for private and residential buildings to pursue LEED certification.

"This is a great accomplishment for the D.C. metropolitan region and a testament to the drive, commitment and leadership of all those who live, work and play in our community," Mike Babcock, board chair of the National Capital Region Chapter of USGBC, said in a statement. "We also realize there is still more to do and hope to effectively guide the effort by engaging, educating and encouraging the dialogue around the value of sustainability."

Colorado ranked as the top state with 2.74 square-feet of LEED space per resident. Former Gov. Bill Owens issued an executive order in 2005 requiring that all state buildings be LEED-certified, according to the USGBC. Former Gov. Bill Ritter signed legislation in 2007 that required any project receiving 25 percent or more of its funding from the state to be designed and built to high-performance green-building standards, such as LEED. Numerous municipalities, including Denver, have adopted their own green-building statutes.

Illinois (2.69 sq. ft. per capita), Virginia (2.42), Washington (2.18) and Maryland (2.07) rounded out the top five. Delaware (0.03), West Virginia (0.14) and Mississippi (0.21) sat at the bottom.

"Our local green building chapters from around the country have been instrumental in accelerating the adoption of green building policies and initiatives that drive construction locally," Rick Fedrizzi, president and CEO of the USGBC, said in a statement. "These states should be recognized for working to reinvent their local building landscapes with buildings that enliven and bolster the health of our environment, communities and local economies."

Job Numbers Predict Super Bowl Winner?

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Categories: Business News

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For those interested in the world of wagering, the Super Bowl is famous for its exotic opportunities — length of the national anthem, color of the Gatorade to be poured on the winning coach, etc. If you’re mainly interested in who wins the game, look no farther than unemployment statistics, according to an analysis by outplacement firm RiseSmart.

The team whose metropolitan area boasts the lower unemployment rate during the previous calendar year has won 17 of the past 20 Super Bowls – a remarkable 85 percent success rate.  Based on this correlation, the New England Patriots should claim the NFL championship over the New York Giants.  Through November, the 2011 unemployment rate for the Boston metropolitan area was 6.8 percent, compared to 8.5 percent for the New York metropolitan area.

On January 26, 1992, the Washington Redskins defeated the Buffalo Bills in Super Bowl XXVI; that year, the Washington, D.C. metro area’s unemployment rate of 4.6 percent was substantially lower than Buffalo’s 7.2 percent. So began the string in which 17 out of 20 times, the Super Bowl winning city had a lower unemployment rate than that of the losing hometown. The predictor has been correct in the past three championship games, including Super Bowl XLV, in which Green Bay (7.7 percent 2010 unemployment) defeated Pittsburgh (8.0 percent).

Other facts of note:

• On the seven previous occasions that both teams’ metro areas have had unemployment greater than 5.5 percent – as is the case this year — the team from the metro area with the lower jobless rate has won in every instance.

• During the five previous occasions when at least one team represented a metro area with 7+ percent unemployment – as is the case this year, with the New York Giants – the team with higher unemployment lost in every instance. 

• The Giants’ upset victory over New England in Super Bowl XLII, when the Patriots entered the game undefeated, represents one of the three times in the past two decades when the unemployment rate predictor failed to predict the outcome of the game.

“Correlation does not imply causation, of course. And there are exceptions to every rule,” says Sanjay Sathe, founder and CEO of RiseSmart. “But one should never underestimate the power of having a job.”

Venture Capital Update: It’s Up

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What’s going on in the venture capital world and where does Indiana rank compared to other states? We’ll let the experts provide the analysis (below). As far as Indiana’s status, the 14 deals in 2011 (ranking 26th among the states) were similar to previous years; the nearly $178 million invested (20th ranking), however, exceeded recent trends. In other words, we had bigger deals in 2011.

The State Science &Technology Institute offers the following on a national level:

U.S. venture capital activity continued to rebound in 2011, with total investment dollars reaching levels similar to venture capital activity before the late-2008 drop, according to the latest data from the National Venture Capital Association (NVCA) and PricewaterhouseCoopers (PWC) Moneytree survey. Venture capitalists invested $28.4 billion last year in the U.S., up 30.3 percent over 2010. The NVCA/PWC announcement ranks 2011 the third highest year for investment in the past decade. Venture deals, however, grew by only 12.1 percent, stemming from higher valuations and continued support for portfolio companies.

Early stage investment activity grew substantially last year, while seed stage investment declined. VCs invested $8.3 billion in 1,414 early stage companies, an increase of 47 percent in terms of dollars and a 16 percent increase in deals over the previous year. Early stage investments represented about 29 percent of all venture dollars and 38 percent of deals, a modest increase over 2010. Seed stage investments, however, declined by 48 percent in terms of dollars to $919 million. Seed stage deals remained steady at 396. These numbers indicate that even though the overall trend in 2011 suggest a preference for larger deals, seed stage deals experienced a decline in average size.

Most states shared in the increase in venture activity last year. Among 2010′s top ten states for venture dollars, only North Carolina and Washington had decreases in activity in 2011. The decline caused North Carolina to drop out of the top ten for the year, replaced by Virginia where venture dollars increased by 61.8 percent to $607.6 million. California, which was the recipient of 51 percent of all venture dollars last year, experienced a 32.1 percent increase in investment.

View SSTI charts on dollars invested and deals.

Vincennes U., Plainfield Partner for Major Logistics Project

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I’m wrapping up the finishing touches on a March/April BizVoice article on logistics initiatives in Indiana, and it highlights the new Logistics Training and Education Center in Plainfield. Inside INdiana Business interviewed Vincennes University President Dick Helton about the development. See the video here:

Vincennes University is dedicating a new Logistics Training and Education Center today in Plainfield. The launch of the facility has been aided by a $500,000 grant from the town. In an interview to air this weekend on Inside INdiana Business Television, VU President Dick Helton talks about the role the center is playing in helping train the state’s logistics workforce.

Careful with Those Hashtags

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I recently posted a blog mentioning some of the good things McDonald’s was doing on social media. Today comes a cautionary tale from the fast food giant about Twitter hashtags. The Huffington Post reports (or whatever you call it when an aggregate news site reposts stuff):

From there, the #McDStories hashtag was born, but probably not in the way McDonald’s was hoping. Negative tweets about the fast food giant began to proliferate, prompting the New York Observer to remark that "some stories are better left untold." Tweets ranged from tweeting about being high while eating McDonald’s to throwing up the food.

While the hashtag grew steam, McDonald’s also had a back and forth with PETA on Twitter, in which McDonald’s tried to correct some of PETA’s allegations about using mechanically separated white meat.

This isn’t the first time that a fast food company has lost control of its hashtag, points out MainStreet.com. Perhaps even worse than #McDStories was Wendy’s hashtag of last year, #HeresTheBeef.

Business Movement Grows to Support Transportation Infrastructure

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The U.S. Chamber of Commerce sent a letter to Congress on January 23 encouraging it to support investment in the nation’s surface transportation infrastructure. The letter had around 1,000 signatories from the business community, as most feel enhanced transportation infrastructure (better bridges, public transportation, etc.) will make America a better place to do business. Congress has until March 31 to reauthorize the current funding law: 

TO THE MEMBERS OF THE UNITED STATES HOUSE AND SENATE:

As Congress embarks on a new legislative session, we, the undersigned companies and organizations, urge you to Make Transportation Job #1 in 2012 and pass federal highway, transit and safety legislation before the current law expires on March 31. The long-delayed reauthorization of federal highway and public transportation programs is a major piece of unfinished business that can provide a meaningful boost to the U.S. economy and its workers and already has broad-based support.

To grow, the United States must invest. There are few federal efforts that rival the potential of critical transportation infrastructure investments for sustaining and creating jobs and economic activity over the short term.

Maintaining at 2011 levels—and ideally increasing—federal funding for road, bridge, public transportation and safety investments can sustain and create jobs and economic activity in the short-term, and improve America’s export and travel infrastructure, offer new economic growth opportunities, and make the nation more competitive over the long-term. Program reform would make the dollars stretch even further: reducing the time it takes transportation projects to get from start to finish, encouraging public-private partnerships and use of private capital, increasing accountability for using federal funds to address the highest priority needs, and spurring innovation and technology deployment.

We recognize there are challenges in finding the resources necessary to adequately fund such a measure. However, with the economic opportunities that a well-crafted measure could afford and emerging political consensus for advancing such an effort, we believe it is time for all involved parties to come together and craft a final product.

In 2011, political leaders—Republican and Democrat, House, Senate and the Administration — stated a multi-year surface transportation bill is important for job creation and economic recovery. We urge you to follow words with action: Make Transportation Job #1 and move legislation immediately in the House and Senate to invest in the roads, bridges, transit systems that are the backbone of the U.S. economy, its businesses large and small, and communities of all sizes.

 

Fudging Expense Reports: And Just What Was That Teepee For?

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This falls into the category of "we know it goes on, but you’ve got to be kidding." To be more precise, the subject is exaggerating a bit on employee expense forms; the "kidding" part is the ridiculous lengths some people go to try and get non-business expenses paid for.

Not to be "Mr. Goody Two Shoes," but that common exaggeration part, when you look a little closer at it, is really like stealing. No, it’s not swiping the candy bar from the convenience store when the clerk isn’t looking. But at an age when we’re supposed to know better, it is trying to take something (money) from your employer that doesn’t belong to you under those circumstances.

Anyway, Robert Half Management Resources conducted a recent survey of chief financial officers. The question: Most unusual things you’ve seen on expense reports; the answers: pretty incredible.

Here’s a sample, with a larger list in the company’s press release:

  • Cosmetic surgery
  • Lottery tickets
  • Pet food
  • A trailer rental for a family reunion
  • A teepee
  • A person lost his personal cell phone somewhere in the office, so he submitted the cost of a new one
  • A golf trip for the employee and his three friends
  • Video game console
  • Hot tub supplies

Ball State Geothermal Project Heats Up Reputation Even More

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Considering my boss is a proud Ball State alum (actually, both of my bosses are) and he’s editor of BizVoice magazine, it’s no wonder I’ve gotten quite a few Cardinal-oriented story assignments in the last few years. However, the writing has really opened my eyes as to what an innovative institution the state has up in Muncie. While Ball State’s main claims to fame center around telecommunications and technology, their latest endeavor is in the field of on-campus energy production. Here’s text from a release from the school on its new geothermal program, and you can also read about its early stages in the July/August 2009 BizVoice:

In the shadow of two outdated smokestacks and four antiquated coal-fired boilers, Ball State has started the second and final phase of converting the university to a geothermal ground-source heat pump system – the largest project of its kind in the United States.

The conversion, started in 2009 to replace the coal boilers, now provides heating and cooling to nearly half the campus. This phase of the project will be dedicated in March.

When the system is complete, the shift from fossil fuels to a renewable energy source will reduce the university’s carbon footprint by nearly half while saving $2 million a year in operating costs.

Ball State is installing a vertical, closed-loop district system that uses only fresh water. The system uses the Earth’s ability to store heat in the ground and water thermal masses. A geothermal heat pump uses the Earth as either a heat source, when operating in heating mode, or a heat sink, when operating in cooling mode.

Under the direction of Jim Lowe, director of engineering, construction and operations, work has begun on Phase 2, which includes installation of 780 of the remaining 1,800 boreholes in a field on the south area of campus.

Construction will continue throughout 2013-2014 and will include a new District Energy Station South containing two 2,500-ton heat pump chillers and a hot water loop around the south portion of campus. The system will then connect to all buildings on campus – eventually providing heating and cooling to 5.5 million square feet.

"When costs began to escalate for the installation of a new fossil fuel burning boiler, the university began to evaluate other renewable energy options," Lowe says. "This led to the decision to convert the campus to a more efficient geothermal-based heating and cooling system."

The project has caught the attention of universities and communities across the nation. Lowe is sharing information about the university’s new operation with others who want learn how they too can benefit from a geothermal system.

Site Selector: Right-to-Work Helps States Create Jobs, Among Other Benefits

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In a column for Inside INdiana Business, Larry Gigerich of Ginovus lays out the case for right-to-work in plain English.

1. Percentage Growth in Non-Farm Private Sector Employees (1995-2005)
a. Right to Work States: 12.9%
b. Non-right to Work States: 6.0%

2. Average Poverty Rate-Adjusted for Cost of Living (2002-2004)
a. Right to Work States: 8.5%
b. Non-right to Work States: 10.1%

3. Percentage Growth in Patents Annually Granted (1995-2005)
a. Right to Work States: 33.0%
b. Non-right to Work States: 11.0%

4. Percentage Growth in Real Personal Income (1995-2005)
a. Right to Work States: 26.0%
b. Non-right to Work States: 19.0%

5. Percentage Growth in Number of People Covered by Employment Based Private Health Insurance (1995-2005):
a. Right to Work States: 8.5%
b. Non-right to Work States: 0.7%

As noted above, right to work states create more private sector jobs, enjoy lower poverty rates, experience more technology development, realize more personal income growth, and increase the number of people covered by employment-based private health insurance. These facts provide public policy thought leaders with compelling information regarding the importance of being a right to work state. Many of the states that are faring most poorly in terms of unemployment rates and economic growth are non-right to work states. Most assuredly, this is not the only reason, but it is an important contributor to these states’ struggles. It is important for state-level policy makers to remove any barriers to economic growth in their state. A non-right to work state changing to a right to work state is an excellent example of how leaders can improve a state’s outlook. Elected officials in non-right to work states should seriously examine this issue and consider the potential benefits to their citizens.

Medical Devices Making Major Impact

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With recognizable company names from Warsaw to Bloomington and spots in between, most people probably realize that Indiana is a player in the medical devices industry. A new study, though, reveals we might be a bigger player than many realized.

From Hearts to Hips: Indiana’s Leadership in Life Sciences was recently released by BioCrossroads. High economic output, exports and employee wages well above the state average are all part of the mix.

The medical devices industry is one of Indiana’s most valuable economic assets employing over 20,000 people and generating more than $10 billion of annual economic output. Today, the medical devices sector accounts for more than 40 percent of the jobs in the state’s life sciences industry, placing Indiana as the fifth largest state in percentage of medical technology industry employment.

And in 2010, Indiana’s medical device companies manufactured more than $2 billion worth of exports, or approximately $100,000 per employee. The industry provides high-paying jobs with the average employee earning $60,000 annually, more than 56 percent higher than the state’s average private sector worker.

“From small towns to larger cities, the economic impact of the medical devices industry is significant and is well-distributed throughout the state,” said David Johnson, president and CEO of BioCrossroads. Major companies such as Biomet, Boston Scientific, Cook Medical, DePuy, Medtronic, Roche Diagnostics and Zimmer are either headquartered or maintain major operations within the state and develop a wide variety of medical devices for from cardiovascular to urological to diagnostics and orthopedics.

“This report is proof that Indiana’s medical devices sector is robust and resides on a solid foundation that positions us well for future growth,” added Johnson. “There are still many external factors like the economic, regulatory and health care reform environment that pose real challenges for this industry.”

The report delves into external challenges the industry faces today. In addition to the current economic conditions that have lowered the demand for some medical devices, the industry faces even bigger challenges to overcome in the next decade including:

  • A rapidly changing health care market

  • Tax policies that discourage innovation

  • Increasing regulatory uncertainty

  • A shift to overseas production and expansion to overseas markets

  • Technological changes requiring more worker education

  • Increasingly competitive global market.