Indiana’s ‘Growing’ Industry: Wine (Plus, A Little History)

Of the many things Indiana is known for, being a hub for the wine industry might be a surprise.

Yet, Indiana is one of the top 20 wine-producing states in the nation and the Purdue Wine Grape Team (an extension service for the wine grape industry) points to impressive economic impact stats:

  • The wine industry’s annual impact on the economy in Indiana: $100 million
  • There are eight million bottles of Indiana-made wine sold annually; more than one million gallons of wine are produced annually
  • By 2019, there should be 100 wineries in the state (there were 37 in 2007)

And if the topic of wine pops up at your next social event or networking soiree and you need a new “Did you know?” (or just want to know more about the wine industry) here are a few interesting factoids:

  • Enology is the study of wine and winemaking
  • Viticulture is the science, production and study of grapes
  • Purdue offers four courses related to wine and food science and is home to the Richard P. Vine Enology Library, which contains about 2,000 bottles of wine; the school is home to three vineyards, including one near Vincennes

If you’re interested in the history of Indiana wine (including which town was the birthplace for the pre-Prohibition top 10 industry in the state), read this history from Indiana Wines.

And speaking of history, you might be interested in learning about some of the oldest wineries in the world, which pre-date Indiana’s now-booming industry by hundreds of years. A recent blog post from Wine Turtle (a group of wine enthusiasts out to make it easier for beginners to learn about wine) looks at the oldest wineries in the world (edited for length, but find the full post here):

  1. Staffelter Hof – Germany

The Staffelter Hof is one of the oldest wine companies in Germany. Its name is linked to a monastery in Belgium and its winemaking history goes back to the 862 AD.

  1. Château de Goulaine – France

The Loire Valley is a region famous for its spectacular landscapes, medieval castles, and exquisite wines. And one of the oldest wine companies in France and in the world is located here. The Château de Goulaine’s history goes back to the year 1000 when Marquis Goulaine founded the first winery in France.

The winery still belongs to the same family and produces some excellent Muscat and Vouvray wines. For this reason, the company is considered the oldest European family owned winery.

  1. Schloss Johanisberg – Germany

Although Germany is not one of the leader winemaking countries, it boasts some of the oldest wine companies. In fact, Schloss Johannisberg winery is the third on our list and its history begins in the year 1100.

  1. Barone Ricasoli – Italy

In 1141 Baron Ricasoli establishes the oldest wine company in Italy that still bears his name. The winery is located between Siena and Florence, an area particularly famous all over the world for the great quality of the wines.

  1. Antinori – Italy

39 years later, in 1180, in Italy emerges the second oldest wine company of the country, the fifth in the world. The Antinori family started producing wine in the Florentine countryside before moving to Florence in 1202.

  1. Schloss Vollrads – Germany

Back to Germany, we have to mention a wine company founded in 1211 that became famous mainly for its Rieslings, the Schloss Vollrads winery.

State Wants to Hear From You on How to Streamline Small Businesses Reporting

Cutting red tape for Indiana’s job creators is key to making our state a better place for small businesses to expand and hire more Hoosier workers. To that end, during the 2017 legislative session, the Indiana Chamber supported House Bill 1157, Small Business Duplicative Reporting, which was authored by Rep. Doug Miller (R-Elkhart). The law is simple, but hopefully effective in generating ideas to make early-stage and small business interactions with state government in Indiana even more business-friendly.

As a result of the successful legislation, the Indiana Economic Development Corporation has set up an online survey to gather feedback from employers and government officials on instances of duplicative reporting.

The Indiana Chamber is encouraging small business owners and local governments to take part in the survey. It only takes about five minutes to complete and asks participants to identify situations where they are required by state law, rule or guideline to submit similar information to at least two state agencies. Duplicative information can include notifications, tax reports, employment information and other statistical data.

By helping to identify these issues, the state can work to streamline reporting processes or even eliminate some – which should save business owners time and money.

A Clearer Path for Indiana’s Innovation Sector

Last summer, the Indiana Chamber formed the Indiana Technology & Innovation Council. A large part of the group’s mission it to protect and advance the public policy interests of related organizations. The Indiana Technology & Innovation Council’s Tech Policy Committee developed an agenda going into the 2017 session with several significant objectives.

We are happy to report – thanks to the work of many – that the group’s first legislative session proved to be highly productive and rewarding, with several key policies to advance innovation, technology and entrepreneurship in Indiana set to become law.

These include enhancing early-stage and scale-up funding for promising Indiana business opportunities, an increased focus on innovation and entrepreneurship, better digital and physical connectivity with other parts of the world, funding for better use of big data and providing funding mechanisms to enhance regional infrastructure projects.

Management and Performance Hub Information Holds Promise
Indiana has been a leader in using government data to improve the delivery of services to its citizens. The Management and Performance Hub (MPH) is an evolving integrated data system that links government agency data and allows for data-driven analytics and research, which can help inform policy and improve the delivery of government services to come from that information. House Bill 1470, Government Data, authored by Rep. David Ober (R-Albion), was the main vehicle to codify the MPH and ensure it has maximum utility for taxpayers, government agencies, the Legislature and other external stakeholders.

The measure started off smoothly, but when it got to the Senate, it was derailed during a hearing before the Senate Commerce and Technology Committee. Based on fear that the information would not be secure or de-identified, the committee amended it to be only a summer study committee issue. Fortunately, the original content was restored by Sen. Brandt Hershman (R-Buck Creek), the bill’s sponsor, on the Senate floor. The Chamber has supported HB 1470 to maximize its utility as a consistent data source and analytical tool for a variety of public issues with multiple stakeholders.

Fortunately, the budget bill, HB 1001, authored by Rep. Tim Brown (R-Crawfordsville) ended up providing good resources to the MPH –$9 million per year for the next two years. This allows MPH the ability to continue to develop to provide timely and accurate information that can help track vital information for the state’s economy, education and a host of other matters where better data can help inform better decisions.

Municipalities Work to Hinder Small Cell Legislation, But It Passes
A bill to more easily move Indiana’s mobile broadband connectivity to the next generation of technology passed the Indiana General Assembly. Senate Bill 213, Wireless Support Structures, authored by Sen. Hershman, focused on streamlining permitting, fees and co-location to increase coverage by current cell towers and facilitate more rapid installation of small cell technology in Indiana communities.

Specifically, an objective was to eliminate excess fees and permitting by local units of government that would hinder installation of small cell antennas. A lot of misinformation was communicated by detractors to say many of the antennas were the size of a refrigerator or Volkswagen, when, in fact, they are much smaller. It is in the providers’ economic interest to co-locate small cell antennas on current towers, light poles or other structures.

This legislation also highlighted an interesting dynamic: Many municipalities who want better broadband in their communities as an economic development tool also want a “say” in the small cell tower locations and to be able to collect fees and issue permits. And those desires are quite strong.

Case in point: There is a provision in the bill that allows Indiana communities to designate local ordinances (and possibly resolutions) to direct where and how those small cell devices can be put in their community by making them an underground or buried utility area. The deadline for seeking this additional protection was May 1. Realizing this, Accelerate Indiana Municipalities (AIM) sent information to its members around the state to quickly pass an ordinance or resolution by that date. Almost 100 locales were considering doing so. But that move may backfire on these same communities whose citizens want
better broadband. What’s more, whether those new ordinances are legal remains to be seen.

The Chamber supports more and better broadband for Indiana and strongly advocated for SB 213 during the process. We appreciate the hard work of Sen. Hershman and Rep. Ober in getting this legislation over the finish line.

Major Tech, Innovation and Entrepreneurship Progress
Several tech innovation issues ended up advancing in the state biennial budget, HB 1001, authored by Rep. Tim Brown.

A Chamber priority was to increase early stage capital in promising Indiana companies. While making the Venture Capital Investment (VCI) Tax Credit transferrable (to attract out-of-state investment to Indiana) didn’t happen, it arguably worked out even better with the creation of the $250 million Next Level Trust Fund. This allows for up to half of the $500 million corpus from the Major Moves highway infrastructure program to be used for investments outside of conservative fixed income investments. It creates a Next Level Indiana Fund investment board with fiduciary responsibility to direct investments in equities or “funds of funds” which could be directed toward promising Indiana businesses.

In addition to the Next Level Trust Fund, legislators adopted options for Indiana public employees and teachers with defined contribution plans to invest up to 20% of their contributions in an Indiana-focused fund.

This summer, the Legislative Services Agency is conducting a deep study of the impact of the VCI. That report is due in October 2017 and based on information that comes from that report, we hope to better advocate for the enhancement of the tax credit during the 2018 session, if warranted. In SB 507, authored by Sen. Randy Head (R-Logansport), the expiration date of the VCI tax credit of 2020 was eliminated so the tax credit now has more certainty for the future.

House Bill 1001 also funded $30 million for the 21st Century Research and Technology Fund. Additionally, $15 million for each of the next two years was allocated for the Business Promotion and Innovation Fund, which combined several requests. It gives authority to the Governor and the Indiana Economic Development Corporation (IEDC) to incentivize direct flights from international and regional airports in Indiana, encourage regional development activities (aka Regional Cities), advance innovation and entrepreneurship education programs through strategic partnerships and support international trade.

The Indiana Biosciences Research Institute was funded for $20 million for year two of the budget. This should pay dividends down the road to further grow Indiana life sciences opportunities.

Better Performance Metrics to Recertify Technology Parks
Certified technology parks (CTPs) around the state will benefit from House Bill 1601, authored by Rep. Todd Huston (R-Fishers). The bill requires IEDC to develop new metrics for performance of CTPs as they are up for recertification.

The IEDC will work with local units of government to develop the metrics. They will include the criteria used to evaluate each category of information by a CTP and a minimum threshold requirement to be recertified in each category.

This is good for both state and local governments to ensure the CTPs are truly being an effective driver of economic activity for that community and region. The bill did not receive any no votes during the legislative process and was supported in a bipartisan fashion. The Chamber backed the bill and appreciates the good work that Rep. Huston and Sen. Hershman, the Senate sponsor, did to ensure its passage.

Early Learning Coalitions Summit Set for June 5

The second annual Indiana Summit for Economic Development via Early Learning Coalitions will take place on June 5 at the Monroe County Convention Center in Bloomington. The Indiana Summit will explore the business case for investing in early childhood and learn how to develop, grow and sustain early learning coalitions in communities across the state of Indiana.

Keynote and featured speakers include:

  • Dr. Tim Bartik, economist at W. E. Upjohn Institute for Employment Research, who will share the important link between a strong and skilled workforce and investing in early childhood.
  • Hoosier native Erin Ramsey, senior director of Mind in the Making at the Bezos Foundation. She will talk about the brain development that occurs in the early years and its connection to shaping the future workforce.
  • Jeffrey Connor-Naylor, senior associate at Ready Nation, will share highlights from its latest research brief “Social-Emotional Skills in Early Childhood Support Workforce Success.”

Afternoon workshops will focus on helping local communities build strong coalitions with a focus on early childhood. There will also be ample time for networking and connecting with community leaders across the state.

Business, community and education leaders are coming together for the event. Registration is required. The daylong program is just $25.

After Session: A Look at What Passed and What Didn’t

Now that the legislative session has concluded, learn the final status of key bills monitored and advocated for/opposed by the Indiana Chamber in 2017 (links are PDFs):

2017 passed bills

2017 defeated bills

Utah Tops List of Where Growth is Happening

Utah’s population topped three million people in 2016, with the state being the fastest growing in the 12-month period starting July 1, 2015. The western flavor continued with others at the top of the list including Nevada, Idaho, Florida and Washington.

Now, approximately 38% of the population lives in what the Census Bureau identifies as the South, with 24% in the West.

Kiplinger goes a step further, with cities where it expects job creation to thrive going forward. At the top of that list (with a reason or two cited) are:

  • St, George, Utah: magnet for tourists visiting Zion National Park and retirees seeking pleasant weather
  • Bend and Redmond, Oregon: also strong in tourism and drawing retirees
  • Cleveland, Tennessee: home to a wide range of manufacturing operations
  • Prescott, Arizona: cooler climate makes it an attractive alternative to Phoenix
  • Savannah, Georgia: home of the fourth-busiest ocean port, which will grow once its harbor is deepened to handle larger vessels

BizVoice Tech, Innovation Series Moves Forward; Reid Health Joins as Lead Series Advertiser

The Innovation Connector is a full-service business resource incubator focused on emerging tech and innovative companies in East Central Indiana. In January 2017, the group launched the Coding Connector for area students to promote discovery of coding and programming.

Part 2 of the yearlong BizVoice magazine series on technology, innovation and entrepreneurship is in the books. We encourage you to check out the March-April entries, with the focus on Outstanding Talent, the lead driver in the Indiana Chamber’s Indiana Vision 2025 plan.

For the remainder of 2017, we’re proud to have Reid Health on board as the lead series advertiser. Among the upcoming features: meeting the space needs of scale-up organizations, communities investing in their quality of place, financing options for entrepreneurs and more.

The March-April highlights include:

  • Powerful ‘Force’: The second of a six-part series on Recovery Force examines how both team members and advisors were added to the mix to fill critical roles. Also, learn how the co-founders blend their strengths in moving the organization forward.
  • X-Factor: Internship Program Showcases Jobs, City: The Xtern program takes recruitment beyond the job, showcasing Indianapolis and central Indiana to talented young people. The initiative continues to grow and succeed.
  • Vital Connections: Mentoring Snapshot Comes Into Focus: Entrepreneurial leaders in Muncie and Terre Haute discuss mentoring efforts and keys to helping others achieve their business dreams.
  • Quick Hits: A commercialization academy at the University of Southern Indiana, Trine University Hall of Fame and I-Light upgrades.

Access the full interactive version of BizVoice®. If you wish to receive the magazine in print, subscribe online.

Ag Strength – By the Numbers

agThere’s no doubting the continued strength of Indiana’s agricultural industry (see the state fact sheet). We’ve told the stories often in BizVoice magazine – and will do so in the upcoming July-August issue (with a look at the prominence of ag businesses in Kosciusko County).

But according to the U.S. Department of Agriculture’s Economic Research Service, Indiana did not rank in the top three exporters by state of various products. There are some interesting states and dollar figures included (selected examples):

  • Soybeans: Illinois ($3.1 billion), Iowa ($2.7 billion) and Minnesota ($1.8 billion)
  • Corn: The same three states as soybeans, with Iowa leading the way at $1.1 billion
  • Wheat: Kansas ($1.5 billion), North Dakota and Montana
  • Pork: Iowa ($2 billion), North Carolina and Minnesota
  • Beef: Nebraska ($946 million), Texas and Kansas
  • Dairy; California ($1.2 billion), Wisconsin and New York
  • Poultry: Georgia, North Carolina and Arkansas
  • Fresh fruit: California ($2.5 billion), Florida ($3.2 billion) and Washington

Report: American Manufacturing is Still Alive and Well

According to a report from Ball State’s Center for Business and Economic Research (CBER) and Conexus Indiana, the American manufacturing industry is hardly in the downward spiral that some have projected — and they anticipate openings for new manufacturing jobs will range from 80,000 to 150,000 per year over the next 10 years.

“There are major misunderstandings among the public and the media about the manufacturing sector,” said Michael Hicks, director of CBER and the George and Frances Ball Distinguished Professor of Economics at Ball State. “The U.S. manufacturing base is not in decline, and we have recovered from the recession. Nor are jobs being outsourced because American manufacturing can’t compete internationally. Moreover, new jobs in manufacturing pay well above the average wage.”

The study notes that the Great Recession had lost its stranglehold by 2014, when U.S. manufacturers attained record levels of production.

“Changes in productivity, domestic demand and foreign trade all impact manufacturing employment in the U.S.,” Hicks said, “and it’s important to clarify those impacts in order to understand what is happening in the manufacturing and logistics industries.”

The study also found that:
• More than 87 percent of manufacturing job losses are due to productivity gains, including better supply chains, more capital investment and advanced technology.
• Only 4 percent of manufacturing jobs have been lost to international trade (also known as outsourcing) since 2000.
• Since the end of the Great Recession in 2009, the economy has added 750,000 manufacturing jobs.
• The biggest job losses occurred in low productivity sectors with low transportation costs.

The report points out baby boom generation retirees are leaving behind good, well-paying jobs in those sectors, and younger workers are filling those jobs at an unprecedented rate. Recent new hire salaries averaged $20.06 per hour — almost $42,000 a year. As millennials move into the workforce, wage gaps between new and existing jobs are primarily age- and tenure-related, he said.

The report, “The Myth and the Reality of Manufacturing in America,” and the individual state report cards may be found online.

Experience the Entrepreneurial Energy at Innovation Showcase

innovIndiana has a growing number of events that connect entrepreneurs with resources. One of the biggest is the Innovation Showcase, returning for year seven this summer.

The lead of the conference web site says it all: “A conference where fundable companies connect with capital sources and attendees connect with the entrepreneurial energy in Indiana.”

More than 1,000 innovators, entrepreneurs and investors are expected to attend the event (July 8-9 at the Dallara IndyCar Factory in Speedway), where more than 70 high-potential enterprises will exhibit and pitch to investors. Companies interested in exhibiting at the Innovation Showcase must submit their applications by midnight on May 18.

During the two days, participating entrepreneurs will have the opportunity to pitch their start-up, competing for prizes of cash and services that last year totaled over $120,000. Educational sessions will provide programming for investors as well as entrepreneurs. Investor and entrepreneur panels will discuss key milestones, barriers and techniques for survival and prosperity.

This year’s scope will include not only the early stage entrepreneur and investor, but also a component on growth ventures and funding.

Launch Fishers, the Venture Club, Verge and VisionTech Partners are the coordinating organizations.

“Economic growth, wealth, and jobs are created by second stage growth ventures — those that are scaling rapidly and gaining national traction,” says Todd Saxton, president of the Venture Club of Indiana and associate professor at IU Kelley School of Business. “The Showcase is not just about startups, which are a strong and growing component of our ecosystem, but also the next Exact Targets and Interactive Intelligences — companies that really put Indiana on the map with investors and customers nationally and internationally.”

Past participants who have experienced remarkable growth after exhibiting include: Scale Computing, myCOI, Indigo Biosystems, BlueLock, Bluebridge Digital, Precise Path Robotics, Book A Coach, Curvo Labs and many others.

Full details and registration are available online.