The January/February edition of BizVoice kicks off 2017 with a tremendous effort from our communications staff. This edition dives into some of Indiana’s most historically notable businesses and leaders, some of whom you may not have known about. A preview of the 2017 legislative session is also found within its pages.
Each December the state budget makers receive a revenue forecast prepared by group of very knowledgeable and conscientious fiscal analysts, economists and academics. The group considers economic predictions, uses elaborate models and applies involved equations to generate what has proven to be remarkably accurate predictions of how much the state will collect in taxes over the next two years. Every other year, including this year, their numbers serve as the basis for building the state’s biennium budget. While lawmakers will debate how the projected revenues should be spent, Indiana is fortunate that lawmakers accept the consensus of these experts and do not debate how much money there is to spend – as is the case in many other states.
Forecasters project that Indiana will take in $31.5 billion in FY2018 and FY2019. This is around a billion dollars more than what was projected for the last biennium. However, as good as the predictions have been historically, FY2017 estimates turned out to be off the mark by $378 million. Low gas prices were a major contributor to the inaccuracy. Unexpectedly cheap gas meant less sales tax on those less expensive fill-ups.
When coupled with generally weaker sales tax collections, the FY2017 (ending in July) collections are now expected to be about 2.5% less than earlier projections. That money will have to be made up in the first year of the biennium, from the projected 2.9% year-over-year (FY2018 over FY2017) growth. Fortunately, the forecasters see a little better growth, 3.9%, in the second year of the biennium (FY2019). The bottom line is that the money available to cover growing expenses and new funding desires will be very modest, somewhere around $1 billion – that’s only about 3% more money for the entire two-year period. And essentially it all comes in the second year, so look for budget makers in the 2017 legislative session to be very frugal in FY2018 and then build in some increases in FY2019.
Economic uncertainty, sluggish sales tax collections, further diminishing gaming revenues and other factors will all put additional pressure on the budget process. As these things play out, the forecasters could shift their numbers a little more before they update their two-year projections in mid-April, just a couple of weeks before the budget has to be passed by the General Assembly.
Indiana Chamber of Commerce President and CEO Kevin Brinegar comments on the release of recommendations from the FIRSST (Funding Indiana’s Roads for a Stronger Safer Tomorrow) task force:
“The task force has provided additional emphasis on three key priorities: today’s revenue sources are not adequate; long-term funding is required to meet both current maintenance and future new construction needs; and new funding should be based on a user-fee approach.
“We support the work of the task force and are prepared to assist legislators and the Holcomb administration in passing data-driven legislation that will help drive Indiana’s economic future. Reliable transportation infrastructure is critical for companies and the jobs they provide across the state.”
If you haven’t been to an Indiana Historical Society “You Are There” exhibit, you need to rethink some things. They are always artfully done and make for an incredibly engaging way to learn history.
The new “Eli Lilly at the Beginning” experience is no different. I visited the facility in November for a “Getting to Know” feature in BizVoice (stay tuned for the January/February 2017 edition). Actor Mark McNees was quite knowledgeable, both in and out of character as Col. Lilly, and helped me see Lilly in a way I hadn’t before. Like many central Indiana natives, I’ve always heard about the company and its impact on the pharmaceutical industry — and its dedication to philanthropy — but I was admittedly ignorant about its founder and his humble beginnings. This experience allows visitors to interact with not only Lilly, but his first employees (he only had three) and his son, J.K.
He developed his lab in 1876 in what is the heart of today’s downtown Indianapolis. But the industry climate was quite treacherous.
“In the papers, they called Indiana the dumping ground for bad pharmaceuticals,” McNees explained. “So they were what we call patent medicines – not patents like Lilly would have today – patents were like snake oils. So anybody could say ‘I came up with this hair elixir’ and all you needed to advertise in the paper was a testimonial.
“A lot of times they would go to a family member, who’d say, ‘I tried Uncle Joe’s hair tonic and I grew hair,’” he adds. “So they would sell it through wagons or stores. There was zero regulation at the time. Also, people were making medicines incorrectly and often killing people. We dealt with things like belladonna (deadly night shade), opium, strychnine, things like that.”
McNees relayed that Lilly grew his business largely because of his reputation for quality and consistency.
For more on the experience, which is scheduled to run until January 2018, visit the IHS web site.
An old proverb, first printed in 1639, says: “Early to bed and early to rise makes a man healthy, wealthy and wise.” In today’s state and national economies, the assertion is that the healthier the residents are, the wealthier and wiser they and the broader community will also be.
The Ball State University Center for Business and Economic Research (CBER) created the Healthy, Wealthy, Wise Index for the Indiana Chamber of Commerce, its Foundation and the Wellness Council of Indiana to emphasize the critical importance of the health factor. The Index will serve as a valuable measuring tool for the Wellness Council’s Indiana Healthy Community initiative.
The Wellness Council of Indiana is a wholly-owned subsidiary of the Indiana Chamber.
“Health is a key success factor to learning and wealth,” says Wellness Council of Indiana Executive Director Chuck Gillespie. “Community leaders and business decision makers need to understand why ‘healthy’ must be a big priority in order to ensure the vitality of their communities and workplaces.”
Thirty indicators – 15 health, six wealth and nine wise – were selected to establish the three indices. Results among all 92 counties and, separately, the 50 states are divided into quartiles, with those in the fourth quartile having the strongest performance.
“Our research also found there are major policy implications,” states Michael Hicks, the George and Frances Ball Distinguished Professor of Economics in the Miller College of Business and director of CBER. “There is a huge disparity in health and health care costs associated with preventable diseases in Indiana, especially across rural and urban settings. With this information, local governments can partner with businesses and non-profits to figure out how wellness can be more effectively spread throughout our communities.”
The Indiana Chamber’s Indiana Vision 2025 (www.indianachamber.com/2025) economic development action plan for the state includes four drivers, with three health-related goals under the Attractive Business Climate section (along with the direct correlation of the Wise index to the plan’s goals under Outstanding Talent). While the state has fared well in tax, regulatory and other areas in enhancing its business climate, the unhealthy state of the population is a costly and dangerous outlier.
The Indiana Chamber and allies have formed the Alliance for a Healthier Indiana to tackle health care challenges, with an initial legislative focus on reducing smoking. Nearly one-quarter of the adult population in Indiana smokes at an annual cost of $6 billion in additional health care expenditures and lost productivity.
“The Wellness Council has focused on creating and maintaining well workplaces throughout its history,” Gillespie shares. “The Indiana Healthy Community initiative is an important step to embracing and working toward community-wide health improvements. Healthy citizens are essential to Hoosiers being prepared to learn and work at their highest capabilities. Leaders are encouraged to use these findings in assessing the current status of their communities.”
Srikant Devaraj, CBER research assistant professor, adds, “This research found that there is a strong correlation between the built environment – the man-made surroundings that provide the setting for human activity – and the places where people are moving, implying that households put more value on the recreational amenities. Infrastructure related to traditional wellness activities, such as trails, playgrounds, parks and open green space matters more than ever in where people and subsequently businesses relocate.”
Counties that score highly in all three indices include Bartholomew, Dearborn, Dubois, Kosciusko and those surrounding Indianapolis. As suggested by earlier research, rural areas do not fare as well as urban settings. There are examples of high and low performers in close proximity to each other. Nationally, success is varied with Indiana having a below median health index and above median wealthy and wise results.
The Healthy, Wealthy, Wise Index is available at www.wellnessindiana.org, www.readyindiana.org and www.bsu.edu/cber/publications. The Ball State site includes full index scores for each county and state.
To be considered an Indiana Healthy Community, communities must apply to the Wellness Council of Indiana and meet eight key components, including working with various community leaders, getting citizens involved, analyzing political atmospheres and ensuring environments are best for making healthy choices. Part of the requirements include having a certain number of businesses certified as AchieveWELL companies, a Wellness Council designation for individual organizations
Locations interested in becoming Indiana Healthy Communities can visit the Wellness Council web site for more information and to apply.
Old habits die hard. And that’s a good thing – for Hoosier businesses and their employees – when linked to Dan Leonard’s propensity to serve others.
He fondly recalls time spent as a child at his parent’s country grocery store. Leonard started ringing up customers as soon as he was tall enough (aided by a trusty bar stool) to reach the cash register.
“I remember the first day we had a $100 day in the grocery store. It was a big deal!” he says with a laugh.
Those early memories sparked a penchant for building relationships and a passion for making a difference – whatever the scale.
Leonard owns South Side Furniture of Huntington, a business he purchased from his father in 1978. Elected to the Indiana House of Representatives in 2002, he serves Huntington County, and portions of Wells and Allen counties. He’s a member of the House Ways and Means Committee (and local government finance subcommittee chair), Judiciary Committee and is the speaker of the House’s appointee to the Native American Indian Affairs Commission…
Read the full story in BizVoice.
Stroll through the expansive Beck’s Hybrids operation in northern Hamilton County and one will find no shortage of inspirational messages. Speak to CEO Sonny Beck for any
period of time and many of those same sayings seamlessly flow into the conversation.
In other words, the “words” are much more than terms or expressions that are placed on paper and forgotten. They are the driving force behind the largest family-owned seed company in the country – one that has experienced tremendous growth over the past quarter century.
Sonny Beck was born three years after his father and grandfather founded the company in 1937. That was a result of Purdue University offering three acres worth of this “great new invention,” hybrid seed, to anyone who wanted it. Sonny earned bachelor’s and master’s degrees from Purdue, returned to the family operation a short time later and has led – or maybe more appropriately been behind the wheel of – one of Indiana and the nation’s leading business success stories…
Read the full story in BizVoice.
An agriculture titan, a small-business-owning state representative, the two minds behind a groundbreaking children’s tech toy and a bustling entrepreneurial city were awarded the highest honors tonight at the Indiana Chamber of Commerce’s 27th Annual Awards Dinner.
The winners are:
- Business Leader of the Year: Sonny Beck, of Beck’s Hybrids in Atlanta
- Government Leader of the Year: State Rep. Dan Leonard (R-Huntington)
- Indiana Chamber Foundation’s Indiana Vision 2025 Dynamic Leaders of the Year: pi lab “Edwin the Duck” creators Matt MacBeth and Don Inmon
- Lifeline Data Centers Community of the Year: Fishers
“Each of the award winners is working to enhance not only their industries or regions, but the entire state of Indiana. They are working to make Indiana a better place to work and live,” says Indiana Chamber President and CEO Kevin Brinegar. “The lasting achievements made by our honorees will impact our state far beyond 2016.”
(Stay tuned on this blog for videos and BizVoice stories about each of the winners.)
The Indiana Chamber’s annual dinner featured Pulitzer Prize-winning columnist George F. Will as keynote speaker to the crowd of nearly 1,500 at the Indiana Convention Center in downtown Indianapolis.
The event was presented in partnership with Anthem Blue Cross and Blue Shield. Lifeline Data Centers is the Community of the Year sponsor. Ivy Tech Community College served as the speaker sponsor, while the opening reception sponsor was Uzelac & Associates. The speaker reception sponsor was Hirons & Company Advertising + Public Relations.
The Indiana Chamber Foundation sponsored the Indiana Vision 2025 Dynamic Leader of the Year honor. Indiana Vision 2025 is the Indiana Chamber’s long-range economic development plan and the award emphasizes entrepreneurship and others facets of the plan’s Dynamic and Creative Culture driver.
The awards dinner followed the Indiana Chamber’s fall board of directors and annual membership meetings. Indiana Chamber Volunteers of the Year Stuart Buttrick (Faegre Baker Daniels, Indianapolis); Todd Miller (Myers Spring Company, Logansport); Mark Richards (Ice Miller, Indianapolis); were announced during a luncheon ceremony.
Ron Christian – executive vice president external affairs, and chief legal officer and corporate secretary at Vectren Corporation in Evansville – was formally elected the Indiana Chamber’s 2017 chair of the board of directors.
Business Leader of the Year: Sonny Beck, Beck’s Hybrids, Atlanta, IN
Stroll through the expansive Beck’s Hybrids operation in northern Hamilton County and one will find no shortage of inspirational messages. Speak to CEO Sonny Beck for any period of time and many of those same sayings seamlessly flow into the conversation.
In other words, the “words” are much more than terms or expressions that are placed on paper and forgotten. They are the driving force behind the largest family-owned seed company in the country – one that has
experienced tremendous growth over the past quarter century.
Beck: “I love the fields, the production side, but I’ve grown to love planning a lot. Your ability to analyze the whole problem and bring life experiences in – that can seem to not diminish. We’re growing fast enough that I keep giving jobs off to other people and my son now keeps giving jobs off to other people. But we keep thinking of new ideas we want to do. I’m always thinking about new projects.”
Government Leader of the Year: State Rep. Dan Leonard (R-Huntington)
Old habits die hard. And that’s a good thing – for Hoosier businesses and their employees – when linked to Dan Leonard’s propensity to serve others.
Leonard owns South Side Furniture of Huntington, a business he purchased from his father in 1978. Elected to the Indiana House of Representatives in 2002, he serves Huntington County, and portions of Wells and Allen counties.
His leadership, determination and common sense approach on unemployment compensation (UI) legislation and other business issues has benefited Indiana companies throughout the state. The savings from UI bills total billions of dollars.
Leonard: “I’m just finishing up 14 years and it’s been a real learning experience. Sometimes you come out on the good end, and sometimes you come out on the bad end. You have to learn how to work with people. That’s a big advantage for me because I’m in retail and I work with people on a regular basis – different people with different views and different thoughts.”
Indiana Vision 2025 Dynamic Leaders of the Year: Matt MacBeth and Don Inmon, pi lab, Carmel
If it looks like a duck, walks like a duck … it’s likely a duck – as the idiom conveys.
However, if it syncs with mobile apps, teaches life lessons and takes the Internet of Things to a whole new level, it might be better described as revolutionary in the children’s toy industry.
That was the hope when Matt MacBeth and Don Inmon developed pi lab and its flagship product – Edwin the Duck.
MacBeth: “In Old English, Edwin means ‘faithful friend.’ We wanted a personality, a name and a product that would go through life with you. Edwin shares life from the same angle as you. He’s an aspirational character.”
Inmon: “I had a light bulb moment in Hong Kong. I saw a rubber duck that had a speaker in it that was for sale. It was very poorly done. But it hit me: What if we took something that was nostalgic and put modern day technology in it?”
Community of the Year: Fishers
No matter who you talk to – business leaders, local officials or longtime residents – they all cite adopting the vision in recent years to become a “smart, vibrant, entrepreneurial city” as the turning point for Fishers. They credit Mayor Scott Fadness and the city council.
What’s followed is quite the transformation. Major economic announcements are the new norm, not the exception. Innovation is now synonymous with the fast-growing city.
That speaks to how dominant a player Fishers has become in business attraction and expansion. It boasts an impressive entrepreneurial spirit thanks to Launch Fishers, the largest collaborative co-working space in the state (if not the Midwest). Collaboration and embracing change have been crucial.
Mayor Fadness: “They (residents) recognize for the most part that change is inevitable and if you can articulate to them why that change makes sense, they’re apt to go along with that. That positions us well to move our community forward.”
2016 Annual Dinner corporate sponsors: AT&T; French Lick Resort; Hoosier Park Racing & Casino and Indiana Grand Racing & Casino; NIPSCO; Ogletree Deakins; OneAmerica Financial Partners, Inc.; Tilson; Wellness Council of Indiana; and Zimmer Biomet.
Contributing sponsors: Allison Transmission; City Securities Corporation; Community Health Network; FedEx; Fineline Printing Group; Hunt Construction Group, An AECOM Company; Inside INdiana Business with Gerry Dick; Indiana Soybean Alliance/Indiana Corn Marketing Council; JPMorgan Chase & Co.; KERAMIDA Inc.; Keystone Realty Group; Markey’s Rental & Staging; Pacers Sports & Entertainment; Roche Diagnostics Corporation; Subaru of Indiana Automotive, Inc.; The Kroger Co.; Vectren; WFYI Productions; and WGU Indiana.
RECENT INDIANA CHAMBER ANNUAL AWARD WINNERS:
Business Leader of the Year
Mike Packnett, Parkview Health, Fort Wayne – 2015
Mike Kubacki, Lake City Bank, Warsaw – 2014
Steve Ferguson, Cook Group, Inc., Bloomington – 2013
Scott Dorsey, ExactTarget, Indianapolis – 2012
Jean Wojtowicz, Cambridge Capital Management Corp., Indianapolis – 2011
Mike Wells, REI Real Estate Services, Indianapolis – 2010
Government Leader of the Year
State Sen. Brandt Hershman (R-Buck Creek) – 2015
Congresswoman Susan Brooks – 2014
Former U.S. Sen. Richard Lugar – 2013
Sen. Carlin Yoder and Rep. Jerry Torr – 2012
Speaker of the House Brian Bosma and Senate President Pro Tem David Long – 2011
Tony Bennett, state superintendent of public instruction – 2010
Community of the Year
Carmel – 2015
Bloomington – 2014
Bedford – 2013
Indianapolis – 2012
Kokomo – 2011
Terre Haute – 2010
Indiana Vision 2025 Dynamic Leader of the Year
Dustin Sapp, TinderBox, Indianapolis – 2015
Indiana Chamber of Commerce President and CEO Kevin Brinegar comments on the election aftermath:
“We probably have just witnessed the most bizarre and bruising election of our lifetimes. It’s critical to move on quickly from any bitterness of the campaigns or results and come together as a state and nation.
“We need lawmakers to concentrate on the business of governing and moving our economies forward. Let’s focus on producing positive outcomes and Indiana continuing to set an example as a state that gets things done.”