Breaking Down the Global Giants

95652571The IndustryWeek 1000 annual list of the world’s largest manufacturers always presents a voluminous display of data and growth trends. Among the biggest “news” from the list this time around is China Petroleum and Chemical Corp. ascending to No. 1 in revenues with $471,672 (in U.S. millions).

Royal Dutch Shell comes next at $459,599, followed by top U.S. entrant Exxon Mobil Corp. at $424,328. Other leading U.S. companies are Chevron Corp. (No. 11), Phillips 66 (No. 14), Apple Inc. (No. 15), General Motors (No. 19) and Ford Motor Co. (No. 20).

Below is a breakdown by the top six countries — total number on the list of 1,000, combined revenues of those companies and average annual growth:

  • United States: 333 companies, $7.6 trillion revenues, 3.1% average revenue growth
  • Japan: 172, $2.6 trillion and 8.6%
  • China: 61, $1.5 trillion and 7.0%
  • Germany: 35, $1.3 trillion and 1.5%
  • United Kingdom: 30, $1.2 trillion and 4.9%
  • France: 41, $1 trillion and 3.5%

Indiana Chamber Earns National Honors at ASCP Event in Oklahoma

ascp awardsThe Indiana Chamber earned the prestigious President’s Award for overall excellence at the recent Association of State Chamber Professionals (ASCP) meeting in Oklahoma City. ASCP is comprised of membership and marketing professionals from state chambers of commerce throughout the country. Its annual meeting is in conjunction with a gathering of the Council of State Chambers (presidents and CEOs of the same organizations).

The Indiana Chamber competed against 11 other states in the large Chamber category. In addition to the top honor, three second-place membership awards were also earned: highest market share, highest non-dues growth and highest retention in dollars. None of the 22 states competing in two categories won more than the Indiana Chamber’s four awards.

Chamber membership director Brock Hesler accepted the awards on behalf of the entire staff.

America, the Beautiful

7659613I love traveling. In fact, I am infatuated with traveling.

I’ve been to six different countries across three continents, and in January I plan on studying abroad in Europe for four months. It’s my greatest pleasure to seek adventure and experience culture, but something I often forget is just how awesome our home country is.

I found a list on BuzzFeed of the 29 most breathtaking places in the United States. You’ll want to check this out — and you might even need to update your bucket list.

Paige Ferise, a sophomore at Butler University, is interning in the Indiana Chamber communications department this fall.

Breaking Bad? Google Chairman Warns That Governments Could Effectively ‘Break Internet’

WIn a recent event hosted by Sen. Ron Wyden (D-Oregon), Google Chairman Eric Schmidt offered an alarming prediction that governments, especially our own, could end up splintering the Internet into pieces. This, he argues, is because countries may prefer to operate their own Internet instead of allowing surveillance organizations, such as the National Security Agency, to collect data on their citizenry.

Wyden added that this would hurt American tech companies — and thus eliminate some American jobs.

Be sure to read the full National Journal article about these remarks, and watch the brief video featuring Schmidt’s comments.

Elephant Race: Analyst Ranks ’16 GOP Candidates

AGreg Valliere of the Potomac Research Group recently ranked the likelihood of 10 Republican hopefuls for the 2016 candidacy for President. Business Insider offers a summary for each candidate, but here’s the list. (And you’ll notice our governor made the list — and some in the media speculate he has a much better shot than that.):

10. Mike Pence
9. Scott Walker
8. Rick Santorum
7. Paul Ryan
6. Chris Christie
5. Mitt Romney
4. Ted Cruz
3. Rand Paul
2. Marco Rubio
1. Jeb Bush

Tour Events in Lafayette, Southern Indiana Connect Education with Industry

20140625_TF_Subaru_Legacy_Associates-8The Indiana Chamber recently co-sponsored two industry tours that brought educators and employers together to find ways to align efforts and better meet the needs of students.

The first event was in Lafayette at Subaru of Indiana Automotive. Educators, counselors and administrators listened to representatives from Caterpillar, Nanshan America, Kirby Risk, Duke Energy and Chrysler Group. Each employer seemed to be facing the same issue – a significant portion of their employees will soon be eligible for retirement and the current talent pool cannot replenish their workforce.

The group toured the Subaru plant, where they saw nearly every process for building a vehicle. Subaru, like many manufacturers, hires employees of almost all educational backgrounds, from high school diploma to master’s degree.

The next industry tour was in the southwest region at NSA Crane, a United States Navy installation. The base is the third largest naval installation in the world by geographic area and employs approximately 3,300 people.

Representatives from GKN Sinter Metals, TASUS Corporation, Cook Group and Jasper Engines all spoke about their workforces. Overwhelmingly, employer needs center on soft skills (communication, basic math and professionalism) and workforce readiness.

Matt Weinzapfel of Jasper Engines reported that 48% of their workforce hold an associate’s degree and/or technical certification and 36% hold no post-secondary degree, while only 16% hold bachelor’s degrees.

The group toured the Crane naval base and learned about jobs in electronic warfare, strategic missions and special missions. The base also offers internships within the various sectors.

“All of these jobs sitting open can be filled if we break down the knowledge barriers and reach students,” said Dan Peterson, vice president industry & government affairs, Cook Group.

The Indiana Youth Institute hosted the events, with the Center for Education and Career Innovation and the Center of Excellence in Leadership of Learning also co-sponsoring.

I-69: Time to Take Full Advantage

cropped-another-i69-headerProgress on the construction of Interstate 69 from Evansville to Indianapolis continues to take place. Among the next steps is taking economic advantage of this expansion.

The I-69 Regional Summit…Driving Opportunity is a one-day event for businesses and organizations interested in tourism, defense, economic development, government, trade and logistics, commerce and education.

Hoosier Voices for I-69 and The Greater Bloomington Chamber of Commerce are serving as hosts. The Bloomington/Monroe County Convention Center is the location on October 21, with a pre-summit welcome reception on October 20 at Indiana University’s Stadium Club.

Indiana Lt. Gov. Sue Ellspermann will deliver an opening keynote. Also included are an I-69 congressional caucus panel, full corridor perspective from Canada to Mexico and economic development discussion. Breakout sessions include site selection perspectives, local planning, trade/logistics and public private partnerships.

Access full details and registration.

Performance Reviews: Why the Compliment Sandwich Isn’t So Delicious

16248269Hooray! It’s time for a performance review.

Chances are, your team won’t have this reaction. At many organizations, annual evaluations create anxiety among employees. But what about supervisors? Many of them are nervous, too – especially when they need to broach uncomfortable topics.

According to a World of Business Ideas story, one of the worst things bosses can do to soften the blow of criticism is to serve a “compliment sandwich.” Here’s an excerpt:

What is a Compliment Sandwich? Well, beyond being one of the worst management techniques ever invented, it’s a way of trying to give critical feedback to somebody without making them feel bad. Basically, you give somebody a compliment, then you layer in a criticism, then you complete the sandwich with another compliment.

Don’t make the common mistake of trying to squeeze a negative performance critique or correction between layers of positive reinforcement. Imagine you’re Frank and your boss has just called you in for a little feedback. “Frank, you’re a world-class programmer, the absolute best. You’re probably the smartest guy in the department. You’ve been pretty nasty during our weekly meetings and it’s causing some hurt feelings. But I’m saying all this because you’re just so darn talented. I really just want to see you flourish.”

If I’m Frank, I just heard: “I’m great. I’m smart. Waa waa waa. I’m great. I’m smart.” Frank heard some compliments, then the sliding trombone sound of Charlie Brown’s teacher, then some more compliments. But he certainly didn’t hear anything about his job being in jeopardy or even that his performance is anything other than great.

Interesting. This amusing video starring “Puppet Mike” and colleagues shows the compliment sandwich in action.

IFA, INDOT Address Transportation Committee About Toll Road, Future Plans

The Interim Committee on Roads and Transportation heard from both the Indiana Finance Authority (IFA) and the Indiana Department of Transportation (INDOT) on the Indiana Toll Road and current and future road infrastructure needs on Sept. 23. IFA Public Finance Director Kendra York and INDOT Commissioner Karl Browning testified.

York reviewed the status of several public-private partnership (P3) projects around the state, but most of the interest and questions concerned the pre-packaged Chapter 11 bankruptcy of the private operator of the Indiana Toll Road, ITR Concession Company, LLC (ITRCC) and its affiliates. ITRCC filed for bankruptcy on September 11.

York testified that the bankruptcy proceeding is expected to result in either the sale of all assets of ITRCC (including lease rights to the toll road) to a new entity or a restructuring of the existing debt. Under either scenario, the toll road will continue to be owned by the IFA on behalf of the state of Indiana. IFA will continue to have the rights it negotiated in the original lease agreement including the right to approve any new operator and that operator will be strictly held to the same operational standards set forth in the original lease agreement. There will be no change to the current toll rate structure under the lease agreement. Road operations will continue as usual during the bankruptcy process without impact to drivers, employees, vendors and the communities served by the road.

York said IFA will continue to monitor the bankruptcy and work with related parties to protect the public interest. In other words, any concerns about adverse effects of the bankruptcy proceeding on the toll road or the state of Indiana are misguided at best, misleading at worst.

Browning provided a broad overview of the state of Indiana’s roads and bridges during his testimony. When adjusted for inflation, INDOT is operating much more efficiently than in years past: Operating expenses in 2014 are approximately $74 million less than in 2005, but while INDOT is operating more efficiently, the state needs more revenues to address a growing need for maintenance of existing infrastructure, let alone expansion of the state’s highway network.

Within the next five years, all fuel excise tax revenues from the state’s highway fund will be required for maintenance of existing infrastructure; no funding will be available for expansion projects. Additionally, more than half of the state’s bridges are in the last 25 years of their useful life (50+ years or older) and will need significant reconstruction or remediation.

Both federal and state highway revenues are expected to remain flat or slightly decline due to a number of factors, including increased fuel efficiency standards and alternative-fuel vehicles. This will cause the state to have to look for creative ways to finance projects (such as P3s) or find new sources of revenue. INDOT is in the middle of a legislatively-mandated two-year study of needs and funding sources.

In short, while the state did well in the Major Moves era with strategic investments, it is facing increasing challenges to pay for future upgrades to its surface transportation network. New sources of revenue need to be found and the Indiana Chamber looks forward to the final analysis by INDOT in the two-year study.

Deja Vu for School Accountability

SIt’s only been a couple of years since the uproar over Indiana’s school accountability measures. To be sure, there were a lot of reasons for the pushback from educators and eventual legislation invalidating the current system. But one of the leading reasons was the decision to base “student growth” measures on comparisons of students to other students with similar starting points rather than measuring their progress toward the state’s academic standards.

But a year after legislative leaders, the Governor and the state superintendent convened a panel to construct a new accountability system, nothing has changed and the majority of the panel is set to recommend the same approach that is already in place – the same “growth” measure that has already been forbidden by the state Legislature.

How could this happen? Well, there are lots of factors.

Most importantly, the staff of the Department of Education and the Governor’s Center for Education and Career Innovation have simply worn out the panel. After 11 all-day meetings, committee members have been given none of the data that has been requested (and promised at the first meeting) to help develop alternatives; and the staffs have provided no outside experts other than people who developed Indiana’s current accountability model.

The staffs have also played games with terminology, suggesting most recently that they have accomplished the law’s focus on “criterion standards” because their peer-based growth measures create a new target performance level.

But the law doesn’t call for that. Rather, it is quite a bit simpler – as stated in the 2013 legislation:

“The new standards of assessing school performance: (1) must be based on a measurement of individual student academic performance and growth to proficiency; and (2) may not be based on a measurement of student performance or growth compared with peers.”

The final proposal must still be reviewed by the Legislature and approved by the State Board of Education. But if passed as currently drafted, it’s hard to imagine how a school that’s unhappy with its grade wouldn’t have solid standing for challenging it.

The state superintendent has been an outspoken opponent of school accountability, generally, and Indiana’s accountability system, specifically. But why the Governor’s staff would support this re-adoption of a failed and outlawed accountability system is baffling.