Author Archive

Business Movement Grows to Support Transportation Infrastructure

Business News, Transportation No Comments »

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.

 

Ball State Geothermal Project Heats Up Reputation Even More

Education, Environment, energy No Comments »

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

Right-to-work, Technology 3 Comments »

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.

Capital City Looking Beyond Super Bowl

Business News No Comments »

Inside INdiana Business reports on how Indianapolis is looking to capitalize on the upcoming Super Bowl long after the game ends:

The head of the Indianapolis Convention & Visitors Association believes the city has a real opportunity to increase business after the Super Bowl. Association Chief Executive Officer Leonard Hoops says it’s important to make a great impression on corporate decision-makers who will be in the town for the game. During an interview set to air this weekend on Inside INdiana Business Television, Hoops also says the ICVA faces a challenge to fill additional hotel space once the Super Bowl is long gone. Watch video.

Laffer: Right-to-Work a Beneficial Economic Tool for States

Right-to-work 5 Comments »

A few Chamber staffers joined hundreds in attendance at today’s Economic Club of Indiana luncheon featuring Arthur B. Laffer, an economist, author and former member of President Reagan’s Economic Advisory Policy Board (though he also asserted that Bill Clinton was "a great president"). When asked about right-to-work legislation, he lauded Indiana’s efforts to become the 23rd right-to-work state. Back in May, he co-wrote an editorial on the issue in the The Wall Street Journal. An excerpt:

The Obama administration’s National Labor Relations Board filed a complaint last month against Boeing to block production of the company’s 787 Dreamliner at a new assembly plant in South Carolina—a "right to-work" state with a law against compulsory union membership. If the NLRB has its way, Dreamliner assembly will return to Washington, a union-shop state, along with more than 1,000 jobs.

The NLRB’s action, which Boeing will challenge at a hearing next month, is a big deal. It’s the first time a federal agency has intervened to tell an American company where it can and cannot operate a plant within the U.S. It lays the foundation of a regulatory wall with one express purpose: to prevent the direct competition of right-to-work states with union-shop states. Why, as South Carolina Gov. Nikki Haley recently asked on these pages, should Washington have any more right to these jobs than South Carolina?

A recent New York Times editorial justified the NLRB decision by arguing that unions are suffering from "the flight of companies to ‘Right-to-Work’ states where workers cannot be required to join a union." That’s for sure, and quite an admission. We’ve been observing that migration pattern for years, but liberals have denied it’s actually happening—until now.

Every year we rank the states on their economic competitiveness in a report called "Rich States, Poor States" for the American Legislative Exchange Council. This ranking uses 15 fiscal, tax and regulatory variables to determine which states have policies that are most conducive to prosperity. Two of these 15 policies have consistently stood out as the most important in predicting where jobs will be created and incomes will rise. First, states with no income tax generally outperform high income tax states. Second, states that have right-to-work laws grow faster than states with forced unionism.

As of today there are 22 right-to-work states and 28 union-shop states. Over the past decade (2000-09) the right-to-work states grew faster in nearly every respect than their union-shop counterparts: 54.6% versus 41.1% in gross state product, 53.3% versus 40.6% in personal income, 11.9% versus 6.1% in population, and 4.1% versus -0.6% in payrolls.

For years, unions argued that right-to-work laws were bad for workers and for the states that passed them. But with the NLRB complaint, they’ve essentially thrown in the towel. If forced unionism is better for the economy of a state, why would the NLRB need to intervene to keep Boeing from leaving Washington? Why aren’t businesses and workers moving operations to heavily unionized places like Michigan, New York, Ohio and Pennsylvania and fleeing states like Georgia, Tennessee, South Carolina and Texas?

In reality, the stampede of businesses from forced-union states like Washington has accelerated in recent years. A 2010 study in the Cato Journal by economist Richard Vedder of Ohio University found that between 2000 and 2008 4.8 million Americans moved from forced-union states to right-to-work states. That’s one person every minute of every day.

Right-to-work states are also getting richer over time. Prof. Vedder found a 23% higher per capita income growth rate in right-to-work states than in forced-union states, which over the period 1977-2007 amounted to a $2,760 larger increase in per-person income in those states. That’s a giant differential.

So now the unions concede that this migration is indeed happening, but they say that it is unhealthy and undesirable because workers in right-to-work states are paid less and get worse benefits than the workers in union states. Actually, when adjusting for the cost of living in each state and the fact that right-to-work states were poorer to begin with, a 2003 study in the Journal of Labor Research by University of Oklahoma economist Robert Reed found that wages rose faster in states that don’t require union membership.

Employers that move away from forced-union states mainly do so not to scale back wages and salaries—although sometimes that happens—but to avoid having to deal with intrusive union rules, the threat of costly work stoppages, lawsuits, worker paychecks going to union fat cats, and so on.
 

PR Lesson: FedEx Wastes No Time Addressing Embarrassing Video

Business News No Comments »

Over the holidays, a video went viral showing complete negligence by a FedEx employee, just tossing a computer monitor over a fence rather than properly delivering the item. See that video below, as well as the company’s response, which has been viewed rather positively by communications critics.

Local Brews Pouring Over Minds of Hoosier Drinkers

Business News No Comments »

Tom Schuman of the Indiana Chamber and BizVoice magazine interviews Ted Miller of Brugge Brasserie and the Brewers of Indiana Guild about the state of craft brewing in Indiana. Furthermore, see my story in BizVoice, based on conversations with Miller, folks from Sun King Brewing and the Lafayette Brewing Co., and others.