Conexus Indiana

State Receives Top Grades in Manufacturing, Logistics, Tax Climate and Global Reach

(INDIANAPOLIS, Ind., June 14, 2013) ─ The 2013 Manufacturing and Logistics Report Card issued by Conexus Indiana, the state’s advanced manufacturing and logistics initiative, and Ball State University’s Center for Business and Economic Research (CBER) shows Indiana’s continued strength in manufacturing and logistics.

For five consecutive years, the health of Indiana’s manufacturing industry has received an “A” grade, while the logistics industry has received the same grade for three consecutive years. Indiana leads the nation with the highest share of manufacturing employment per capita and has the highest manufacturing sector income share of total income, according to the report. Since the end of the Great Recession, Indiana’s manufacturing sector has recovered faster than the national average.

“Overall, Indiana continues to do well. We are competitive in the size of our manufacturing sector and the wages we pay, as well as the growing size of the logistics sector,” said Michael Hicks, CBER director and economics professor. “Indiana continues to see the most dramatic recovery in the post-recession. We are third overall in terms of manufacturing recovery – trailing only Alaska and North Dakota, which lead the nation as a result of the growing energy industries in those states.”

Other areas in Indiana that continue to be strong are tax climate and global reach. Once again, each of these areas received an “A” grade. A top grade in tax climate is an important distinction for companies which are looking to expand or others looking to move to the Hoosier state. In global reach, Indiana is one of the leading states in the nation in foreign investment in this sector, while continuing to excel in exports, the report said.

Human capital declined for the second straight year from a “C-“ to a “D”, according to the report. There are two reasons for Indiana’s decline in this category: Indiana remains among the bottom 10 states in terms of percentage of the population with a bachelor’s degree, coupled with a decline in three-year graduation rates in associate degree programs, which fell from 24.9 percent to 21.1 percent in this year’s analysis.

“While there is a decline in the human capital grade, there is a bit of an anomaly as the decline of associate degrees is tied to the fact that there is huge growth in enrollments,” Hicks said. “It is not surprising that there would be a decline in graduation rates as the recession improved. This may be a positive in the future as Indiana leads the nation in enrollment in these important programs.”

Conexus Indiana President and CEO Steve Dwyer added, “One of the first categories I look at each year is human capital and while I am pleased to see a huge influx of students into associate degree programs, we have to make sure that students graduate,” he said. “I believe that middle skill programs will dictate the long-term health of manufacturing.” Ivy Tech Community College is the nation’s largest statewide community college with single accreditation. Ivy Tech President Thomas J. Snyder believes more can be done. “Indiana has been short changing career and vocational education for some time. The Governor has a platform to rethink this direction. We think we can help.”

In the category of productivity and innovation, Indiana saw a drop from a “B+” to a “C+” due in part to a decline in the automotive industry and other high value products during the recession. Preliminary results, however, show that Indiana is experiencing a sharp increase in total factor productivity (TFP). This bodes well for future results in this category as Indiana leads the Midwest in TFP growth.

In other categories, Indiana improved its worker benefit ranking from a “D+” to a “C-“ as health care premiums declined modestly. Expected fiscal liability gap dropped from a “B” to a “C+” and sector diversification had a slight decline from a “C+” to a “C”.

“The Indiana report card shows that our manufacturing sector has many bright spots and a few areas that need more focus.  It also shows that the Great Recession has masked the transition manufacturing and logistics are going through in our state,” said Dwyer. “Commodity products (low-tech) will continue to languish as they are purely driven by cost. However, proprietary and precision goods will have a higher than ever demand and that is where we will see the return of revenue and an increase in highly skilled jobs,” added Dwyer. “But without special attention paid to human capital and making sure that we have a pipeline of trained workers, the changes may come too fast for some areas of the sector to keep up.”

He points out that the transition will require collaborative efforts between industry, education and government. As the state’s manufacturing and logistics initiative, Conexus Indiana is making strides in this area. In 2012, Conexus launched a new manufacturing and logistics high school curriculum. In less than a year, the program will be featured in 39 locations serving 85 schools statewide in the 2013-2014 school year. The program also includes 98 industry partners consisting of 80 manufacturing companies and 18 logistics companies.

“I believe the true legacy of Conexus Indiana will be the re-engagement of industry with education for workforce development within its own clusters and the strategic opportunities that can be created,” Dwyer said.

Full Reports

The full Indiana Report, National Report and the companion report, Manufacturing Productivity Through the Great Recession: What Does it Mean for the Future? by Michael J. Hicks can be found on www.conexus.cberdata.org.

About Conexus Indiana:

Conexus Indiana is the state’s advanced manufacturing and logistics initiative, dedicated to making Indiana a global leader. Conexus is focused on strategic priorities like workforce development, creating new industry partnerships and promoting Indiana’s advantages in manufacturing and logistics.  Learn more at www.ConexusIndiana.com.

About Ball State Center for Business and Economic Research:

The Center for Business and Economic Research (CBER) is an economic policy and forecasting research center at Ball State University. CBER research includes public finance, regional economics, manufacturing, transportation, and energy sector studies. The Center produces the CBER Data Center—a suite of web-based data tools—and the Indiana Business Bulletin—a weekly newsletter with commentary on current issues and regularly updated data on dozens of economic indicators. In addition to research and data delivery, CBER serves as a business forecasting authority in Indiana’s east-central region—holding the annual Indiana Economic Outlook luncheon and quarterly meetings of the Ball State University Business Roundtable.

Indiana is known as the Crossroads of America, but Hoosier drivers know those crossroads are sometimes clogged. While it's simply a nuisance for most, imagine maneuvering a semi-truck through the congestion, knowing each minute stuck in traffic is impacting your company's bottom line. The scenario-a reality for many Indiana logistics companies-has led some in the transportation industry, and even leaders at the Statehouse, to renew the consideration of an interstate commerce connector around Indianapolis. Read the complete article as it appeared in Inside INdiana Business.

The newly formed North Central Regional Logistics Council (NCRLC) held its first official meeting recently in South Bend. The NCRLC supports the efforts of the Conexus Indiana Logistics Council. The NCRLC will also help to support the local chambers of commerce, the regional Corporate Partnership for Economic Growth and others as it works to identify logistics needs for the region. Read the Elkhart Truth article.

Read more about the details of this bill in the article "2013 Indiana General Assembly is Positive for Logistics Industy" here

"Yeah right" was Gina Sheets' first thought when she learned of plans to create a rail line that would move food between northwest Indiana and Tampa. As director of the Indiana State Department of Agriculture, she knows time-sensitive agricultural products aren't typically moved by train, due to traditionally unreliable and inefficient service. But her initial skepticism was quickly replaced by elation when she learned what kind of rail line was in the works. Nicknamed the "Green Express"-capable of moving frozen and refrigerated products-the CSX transportation line will begin running its route in the coming months, giving Indiana's food producers and farmers their first-ever direct connection to the southeastern U.S., and ultimately, international markets far beyond. Read the complete article as it appeared in Inside INdiana Business.

By Chip Edgington, Executive Vice President of Operations, OSP Group and Amy McFadyen, Director of Import Logistics, OSP Group

Earlier this year, The Indiana Rail Road Company (INRD) and Canadian National Railway (CN) announced a collaborative partnership to provide intermodal service direct from the Canadian West Coast to Indianapolis. Encompassed in the project will be a multi-million dollar intermodal ramp, currently being constructed within INRD's Senate Avenue Terminal. The direct rail service to Indianapolis will ultimately grow to be a game changer for Indiana's importers and exporters.

Read the complete Perspectives article as it appeared in Inside INdiana Business.

The movement of product in Indiana's logistics industry-and the nation's-has traditionally been powered by diesel fuel, but some organizations are transitioning to natural gas, a shift experts say benefits a company's bottom line and Indiana's economy. Indianapolis-based Monarch Beverage Company has converted about 25 percent of its delivery trucks to natural gas and plans to switchover nearly the entire fleet-an indicator that natural gas may be gaining the traction it needs to become a transportation fuel for logistics companies and an economic boost for Indiana.

Read the complete story as it appeared in Inside INdiana Business.

Katz, Sapper & Miller, LLP, in conjunction with the Indiana Manufacturers Association, Conexus Indiana, and Indiana University's Kelley School of Business, is pleased to announce the seventh annual survey to assess the state of Indiana's manufacturing and distribution industries.

Your response is confidential.

Click here to go to the survey: https://iu.qualtrics.com/SE/?SID=SV_dmR5ViyKapYZKcZ

The Conexus Indiana Logistics Council (CILC) and the Corporate Partnership for Economic Growth (CPEG) have formed the North Central Regional Logistics Council (NCRLC) to bring together logistics industry leaders to identify and advocate for local projects and develop other customized strategies to strengthen the area’s transportation sector. NCRLC will also identify regional priorities and develop strategic initiatives to help transportation, distribution and supply chain firms succeed in the region. 

NCRLC is being formed in partnership with CPEG, the seven Local Economic Development Organizations (LEDOs) of North Central Indiana and several local chambers, including the Chamber of Commerce of St. Joseph County and The Greater Elkhart Chamber of Commerce.  NCRLC will cover the Indiana counties of Cass, Elkhart, Fulton, Kosciusko, Marshall, Miami and St. Joseph.

This is the CILC’s second regional logistics council. In October 2012, CILC launched the Southwest Indiana Regional Logistics Partnership.

Read the press release here.

Last October, the Conexus Indiana Logistics Council (CILC) announced the formation of its first regional logistics partnership, covering Southwestern Indiana.  CILC was created as an employer-driven voice of the industry, rallying logistics executives from across the state to develop and implement strategies for growth and investment, solidifying Indiana’s position as the ‘Crossroads of America.’  The regional councils will better target local priorities to help transportation, distribution and supply chain firms succeed, as well as providing input for the Council’s statewide logistics plan.

From Inside Indiana Business, perspective from Barry Cox of Warehouse Services Inc. of Mount Vernon, who chairs the Southwest Indiana Logistics Partnership - Cox notes that "...the logistics economy touches every Hoosier community, and the Conexus Logistics Council realizes that it cannot prioritize local transportation and infrastructure needs in every corner of the state without broader involvement.  So it is forming regional logistics partnerships, starting here in Southwest Indiana. The Southwest Indiana Regional Logistics Partnership will bring together logistics industry leaders to identify and promote the local projects and pro-growth strategies that will make the greatest positive impact on the area’s transportation sector..."

Read the full column here.

Indiana’s logistics industry moves nearly a billion tons of freight to and from the state every year, putting more than 300,000 Hoosiers to work.  Governor Pence has identified logistics as one of Indiana’s core industries for future job creation efforts.

Today in Indianapolis, the Indiana Rail Road Company, Canadian National Railway, and Conexus Indiana Logistics Council announced a partnership that will make the state even more attractive as a global logistics hub – the two railroads will partner on a new intermodal rail facility just south of downtown Indianapolis.  For years, the absence of intermodal capacity in Central Indiana was a key missing link in the state’s supply chain – Conexus has reached out to Indiana companies across the region to quantify the volume of freight that could be served by such a facility, and demonstrated that the potential was great enough to merit this exciting new partnership.

The new service will allow Indiana’s manufacturers, agricultural interests and other shippers to easily move cargo by container from Central Indiana, instead of trucking it first to Chicago and confronting the congestion and delays at the railyards there.  It also opens more direct routes to Asian ports (via Western Canada), connecting Hoosier companies with our fastest-growing trade partners and largest foreign investors in China and Japan.  Following is the text of the press release distributed to mark this great day for the logistics industry:

The Conexus Indiana Logistics Council (CILC) today endorsed an agreement between CN (Canadian National Railway) and the Indiana Rail Road Company (INRD) to establish new intermodal rail service to Indianapolis.  According to the industry-led Logistics Council, the CN-INRD partnership is a significant step forward for Indiana’s shippers: A new intermodal facility, to be built by INRD, will allow Hoosier companies to move containerized freight by rail directly to the west coast for shipment to Asian ports without the delays and congestion of first transporting it to Chicago.

The intermodal hub will be an expansion of INRD’s existing Senate Avenue Terminal on the southern edge of downtown Indianapolis, and will also include a container yard and an on-site agricultural products loading facility. 

Moving freight in standardized containers allows intermodal transportation – shifting the containers among truck, rail and ship as part of a seamless process designed to save time and cost.  The new Indianapolis facility will allow Indiana’s intermodal shippers to avoid longer truck drives, costly drayage costs (fuel, labor, maintenance, etc), and detention charges in Chicago rail yards.  It also allows access to a more efficient all-rail route to ports in western Canada (the Port of Vancouver and the Port of Prince Rupert in British Columbia) with access to multiple shipping lines offering weekly service to all major Asian ports.

The Conexus Indiana Logistics Council, a statewide group of logistics executives and thought leaders, has been a consistent advocate for expanded intermodal service and helped facilitate the agreement.

“We’re excited that INRD and CN recognize the tremendous potential for intermodal service here,” said David Holt, Vice-President of Conexus Indiana.  “It’s a win-win, for the manufacturing and logistics companies that stand to save time and money, and the rail companies that recognize the pent-up demand.

"The business opportunity was compelling enough to attract this great partnership between a locally-based railroad and a transcontinental Class 1, and that says a lot,” Holt finished. 

According to industry leaders, the intermodal expansion enhances Central Indiana’s marketability as the ‘Crossroads of America’ logistics powerhouse, while allowing shippers to realize significant advantages by avoiding the congestion and bottlenecks of current routes through Chicago.

"This strategic collaboration between CN and INRD is a potential game changer for the central Indiana logistics and manufacturing industry,” added Chip Edgington, Executive Vice-President of Operations for Redcats USA and chair of CILC.  “The opportunity to circumvent Chicago and leverage direct rail service between the west coast and Indianapolis allows business' to gain a competitive edge when transit times and expedient customer service is more critical than ever before.”  

Mark DeFabis, a member of CILC, is President and CEO of Integrated Distribution Services in Plainfield and a former Indianapolis economic development official; he stressed the international significance of today’s announcement.

“Canada is Indiana’s largest export market, China is our fastest- growing trade partner, and Japan is the state’s largest foreign investor,” said DeFabis.  “So direct intermodal access to Western Canada and Asian ports will truly strengthen Indiana’s position in the global supply chain.”

The Indianapolis terminal will begin receiving empty containers in June 2013.  CN officials estimate that the service will allow cargo to flow between Indianapolis and Shanghai in as little as 18-20 days.

“This all-rail service will reduce transit times and improve transportation consistency,” noted Jean-Jacques Ruest, CN executive vice-president and chief marketing officer.

More statistical confirmation that manufacturing leads the way in putting Hoosiers back to work in the wake of the Great Recession – new data from the Ball State Center for Business and Economic Research shows that Indiana’s manufacturing employment has grown two-and-a-half times faster than the nation over the last year.

Specifically, the numbers show that Indiana’s (seasonally-adjusted) manufacturing employment grew 4.2% from October 2011 through last month, while U.S. growth was 1.6%.  (Overall non-farm employment growth over the same period was 2.5% for Indiana and 1.5% for the U.S., meaning that manufacturing outperformed the overall economy while Indiana’s manufacturing sector handily outpaced the nation.)  Within Indiana, several regions enjoyed double-digit manufacturing job growth, including Elkhart, Gary/Hammond, Muncie and South Bend.

The employment figures come as the Conference Board released another report Tuesday showing that companies increased orders for machinery and equipment to the highest level in five months – a positive sign for continued manufacturing expansion that bodes especially well for Indiana, as the country’s most manufacturing-intensive economy.

More commentary from Steve Dwyer and Tom Snyder of Ivy Tech on the power of career readiness through the Hire Technology manufacturing and logistics curriculum - this time in the Muncie Star-Press:

'Hire Technology' gives kids a head start on life in Indiana's biggest industries

Earlier this week, the Indianapolis Star published a version of this editorial by Conexus CEO Steve Dwyer and Ivy Tech Community College President Tom Snyder on the new Hire Technology high school manufacturing and logistics curriculum:

Raising a child is a tough job even during the best of times.  But these days, economic forces beyond our control are making it even more difficult to give Hoosier kids their best opportunity to succeed. 

The skyrocketing price tag of higher education has put a four-year residential college experience out of reach for many Hoosiers.  The average cost of a bachelor’s degree at a state university (including room and board) exceeds $75,000.  This leaves the typical Indiana family (median income of $46,000) facing a crushing $55,000 debt, even after federal Pell grants.

So the average parents are caught in a vicious cycle: They can’t afford to send their children to college…but given today’s job market, they can’t afford not to, either.  A high school diploma used to be a ticket to a middle-class life.  Those days are largely over.  To avoid lifelong struggles with poverty and unemployment, education beyond 12^th grade is now mandatory.

More than half of all jobs in Indiana today are so-called ‘middle skill’ positions – requiring more than a high school diploma but less than a four-year degree.  Just one of every five jobs is available to someone with just a high school diploma, and these positions pay far less than middle- or high-skill jobs.  Over the next decade, it’s projected that eight of every ten new jobs created in the state will demand at least some college education. 

The same trends are shaping Indiana’s dominant economic sector, manufacturing and logistics.  These industries used to be a dependable source of jobs for high school graduates, employment at a local factory with good wages, benefits, the promise of a pension. 

But manufacturing and logistics have become increasingly high-tech; low-skill jobs have been automated or moved overseas.  These opportunities aren’t coming back.

The positions that are left are high-paying, but prioritize brains over brawn.  The majority of U.S. manufacturing workers now have some college education, as manufacturing and logistics jobs demand advanced technical know-how as well as critical thinking and teamwork. 

Unfortunately, the educational attainment of young Hoosiers has not kept pace with the workforce demands in Indiana’s largest industries.  Employers are scrambling to find applicants with the right skills to revitalize their workforce as the Baby Boomer generation nears retirement.

Conexus Indiana, Ivy Tech Community College and other partners have come together to develop a solution  – a way to supply manufacturing and logistics companies with the human capital they need, while giving young people a head-start on these careers without a mountain of debt.  It’s called ‘Hire Technology.’

Hire Technology is an innovative new advanced manufacturing and logistics curriculum for high school students.  It uses a mix of online lessons and hands-on projects to introduce young people to manufacturing and logistics – but beyond that, it gives students the opportunity to earn up to 15 college credits and several industry-approved certificates as they complete the program (which would otherwise cost thousands of dollars in tuition and training).       

Hire Technology is currently being offered in nine Indiana high schools as a pilot project, with more than 300 students participating, before being made available to school districts statewide over the next two years.  We’re confident that the program will find an eager audience with educators and parents.

Our economy has evolved, and the way we look at education has to change too.  A traditional high school diploma isn’t enough, but a four-year degree isn’t the only way to compete in the job market, either – especially given the fiscal challenges of rising tuition.

In Indiana, the most manufacturing-intensive state in the nation, Hire Technology offers a new approach – a bridge between high school and higher education that meets the needs of employers and young Hoosiers.  And for these kids and their families, it represents a financially responsible path to a challenging and rewarding career. 

Thomas J. Snyder serves as president of Ivy Tech Community College, the nation's largest singly-accredited statewide community college system and the largest institution of higher education in Indiana.

Steve Dwyer is President & CEO of Conexus Indiana, an initiative focused on the workforce and other needs of the state’s manufacturing and logistics industries.

Conexus Vice-President David Holt follows up on the aviation economic impact study released earlier this week with the Aviation Association of Indiana with this piece in Inside Indiana Business:

Indiana’s airports deliver sky-high economic impact

When considering Indiana’s transportation system, you likely think immediately of highways.  After all, we’re one of the most connected states by the federal interstate system, are situated within a day’s truck drive of two-thirds of the country’s people and businesses, and rank second among states in freight shipments by road.

Or if you live close to the Ohio River or Lake Michigan, perhaps waterborne shipping comes to mind – Indiana’s three major ports brought nearly $6.5 billion in economic impact to the state while handling a record level of freight in 2011.

It’s not quite so obvious to look to the skies.  But Indiana’s network of airports also plays a vital role in moving goods, strengthening our link to the global supply chain.  Thanks to the 69 public-use airports that serve every corner of Indiana, our position as ‘Crossroads of America’ isn’t confined to terrestrial routes.

A new study spearheaded by Conexus Indiana along with the Indiana Department of Transportation and the Aviation Association of Indiana assesses the economic impact of Hoosier airports and finds that they collectively bring significant jobs and investment to the state.  Based on surveys of airport managers of business activity in and around their facilities as well as regular airport users, the analysis shows that Indiana’s airports are responsible for 69,000 jobs with $4.1 billion in annual payrolls, and a total economic output of more than $14 billion.

These are impressive numbers that illustrate the value of our airports in putting Hoosiers to work and dollars in their pockets.  But the real impact of our air freight system goes much further, as a critical component of the logistics sector that powers our economy.

As the most manufacturing-intensive state in the nation, Indiana’s economy is about our ability to make and move products – that means we need excellent roads, rail lines, navigable waterways and airports connecting our factories to the world marketplace. 

Air freight is generally used to move products that are more valuable and time-sensitive – electronics and computer equipment, pharmaceuticals and other medical devices, high-end consumer goods.  It’s estimated that while airborne shipments account for less than 10% of total global freight, it accounts for almost a third of that freight’s total value.

That means as Indiana aspires to advance our manufacturing sector up the innovation ladder, and continue to grow our technology and life sciences industries, the connectivity of our airports is key.

But like the rest of our transportation infrastructure, our airports are challenged by the fiscal climate.  The U.S. aviation system is already ranked a dismal 32^nd among nations by the World Economic Forum, and we face funding shortfalls that put $52-80 billion in critical projects the next five years in jeopardy (according to varying estimates by the Federal Aviation Administration and the Airports Council International). 

Conexus Indiana’s Logistics Council has advanced several recommendations for reinvesting in our airports – ending diversions from cargo , ticket and fuel taxes, indexing fuel taxes to inflation to grow revenues along with expenses, and extending federal ticket taxes to cover baggage charges and other fees that airlines have implemented to artificially lower passenger fares.

These suggestions are sure to spark debate among policymakers, and we welcome a dialogue about how to maintain a first-class system of airports to support a world-class logistics industry.  The new impact study confirms that Hoosier aviation helps keeps the state’s economy aloft, and we must make it a focus of our infrastructure agenda.

David Holt is Vice-President of Conexus Indiana, the state’s manufacturing and logistics initiative, and manages its Indiana Logistics Council.

The Aviation Association of Indiana (AAI) and Conexus Indiana are releasing a comprehensive economic impact study of the state’s airports today.   The study, which analyzes business activity at and surrounding the 69 public-use airports in the State’s Aviation System Plan, affirms that aviation is an important catalyst in the logistics sector and the state’s economy overall - especially critical to the transportation of high-value goods, like pharmaceuticals, medical instruments and electronic equipment.

The AAI and Conexus Indiana partnered with the Indiana Department of Transportation (INDOT) to develop the study, which surveyed airport executives and users across the state and filtered the resulting data through the IMPLAN economic model to arrive at an impressive assessment of the airports’ collective impact:  69,000 Hoosier jobs, with an annual payroll of $4.1billion and total economic output of more than $14 billion.

Click the image below to download the full study:

Conexus and Ivy Tech presented an update on the Hire Technology high school manufacturing and logistics curriculum to the Indiana State Board of Education today – here’s the story:

Conexus Indiana and Ivy Tech Community College presented an innovative new advanced manufacturing and logistics curriculum for high school students – titled ‘Hire Technology’ – to the Indiana State Board of Education today.  Hire Technology is a two-year elective program designed to give students a head start on careers in those industries, which employ one of every four working Hoosiers.  Conexus President and CEO Steve Dwyer and Ivy Tech Community College President Tom Snyder discussed the program with the State Board as part of its regular meeting in Indianapolis.

Conexus, the state’s manufacturing and logistics initiative, developed Hire Technology in partnership with Ivy Tech in response to employer demand for the next generation of skilled workers.  Hire Technology uses a mix of online lessons and hands-on projects to introduce young people to manufacturing and logistics while allowing them to earn college credits and industry-endorsed certificates.   

Hire Technology is currently being offered in nine Indiana high schools as a pilot project, with more than 300 students participating, before being made available statewide next year.  School corporations are currently expressing their intention to offer the program in 2013 and working with Conexus and Ivy Tech staff on implementation plans.

“Careers in manufacturing and logistics are evolving, and the way we educate our future workforce has to evolve as well,” said Dwyer.  “With the support of the Department of Education and the State Board, we’re creating a new pathway for young Hoosiers from their high school classrooms to challenging and exciting careers in our largest economic sector.”

State Board of Education members had positive reactions to the Hire Technology approach and progress towards implementation.

“In addition to the basics all students need for success in life and work in the 21^st Century, it is important that our curricula reflect options that align students to available career opportunities,” commented David Shane, at-large Board member.  “It is gratifying to see employers around the state stepping forward to help teach the skills students need for the jobs of today and tomorrow.  We’re a manufacturing- and logistics-intensive economy, and a program like Hire Technology is critical to increase our students’ career readiness and our employers’ productivity and competitiveness.”

Students who complete the Hire Technology curriculum will be able to earn up to 15 college credits (through an Ivy Tech dual-credit program) and five national certificates (such as those awarded by the Manufacturing Skills Standards Council and by the industry-recognized APICS organization). 

“The manufacturing jobs that are here to stay aren’t on the assembly line any longer,” noted Snyder, the former CEO of major auto parts manufacturer Remy International prior to his tenure at Ivy Tech.  “They demand critical thinking, problem-solving, technical expertise – that’s why the majority of the U.S. manufacturing workforce now has at least some college education.

“Hire Technology brings this reality to our high schools, giving students a solid foundation they can take to Ivy Tech or another higher education program and into the job market.”

The trend that animates so much of Conexus Indiana’s activities is the ‘upskilling’ of the manufacturing workforce – the demand for more educated employees with advanced technical savvy and critical thinking abilities to match the increasingly high-tech environments of today’s factories and supply chain operations.

Unfortunately, the educational attainment of the Hoosier workforce has not kept pace, leading to industry struggles to fill a growing skills gap – and the adoption of this challenge as Conexus’ primary mission.

So this graphic from The Manufacturing Institute caught our attention, as it neatly summarizes the growing educational demands of manufacturing employers over the last decade – while the percentage of the workforce with a high school diploma or less than dropped, the share with post-secondary training has grown until a majority of today’s manufacturing workers have some college education.

Today, the Conexus Indiana Logistics Council (the statewide industry-driven council representing Indiana's $10 billion logistics sector) holds a kick-off meeting for its new Southwest Indiana Regional Logistics Partnership.  This is the first of a network of regional affiliates that will cover the state and allow the Logistics Council to better identify and prioritize local transportation and infrastructure needs.

Check out the Evansville Courier-Press story from earlier this week, and see the announcement below:

Conexus Indiana Logistics Council launchesSouthwest Regional Partnership

Affiliate of statewide industry group will focus on local transportation priorities

(EVANSVILLE, Ind, October 1, 2012) Conexus Indiana, the advanced manufacturing and logistics initiative, today announced the formation of a Southwest Indiana Regional Logistics Partnership, to support the efforts of its statewide Conexus Indiana Logistics Council (CILC).

The new regional partnership will bring together logistics industry leaders to identify and advocate for local projects and develop other customized strategies to strengthen the area’s transportation sector, while acting as an affiliate of CILC and contributing to its efforts.

CILC was created as an employer-driven voice of the industry, rallying logistics executives from across the state to develop and implement strategies for growth and investment, solidifying Indiana’s position as the ‘Crossroads of America.’  The regional councils will better target local priorities to help transportation, distribution and supply chain firms succeed, as well as providing input for the Council’s statewide logistics plan.

CILC will convene its first official meeting of the Southwest Regional Partnership on Thursday at Innovation Pointe in Evansville.  David Holt, Conexus Vice-President of Operations and Business Development, led the meeting with regional business organizations such as the Evansville Regional Business Committee, the Chamber of Commerce of Southwest Indiana and the Economic Development Coalition of Southwest Indiana.   The group announced that Barry Cox, President & COO of the Mount Vernon-based Cox Group, will chair the Partnership.

 “We’re very pleased to launch a regional logistics partnership for southwest Indiana and that a respected industry veteran like Barry Cox has agreed to spearhead the effort,” said Holt.  “For the last three years, the Conexus Indiana Logistics Council has studied the key issues facing the industry and recommended ways to improve – investing in our highways, optimizing our airport network, maintaining our locks and dams, all while reducing the tax and regulatory barriers to logistics companies.

“But we don’t presume to understand all of the specific transportation and infrastructure challenges facing each corner of the state.  Our regional partnerships will help us ensure that every Indiana community can capitalize on our position as Crossroads of America.”

Cox noted the importance of logistics to southwest Indiana’s economy as a critical reason to form the new partnership.

“The Evansville region ranks in the top tenth of U.S. metropolitan areas in the percentage of our economy focused on exports,” he said.  “Our ability to move products as part of a national and global supply chain is absolutely essential.  Organizing ourselves locally and joining forces with the Conexus Logistics Council will help us ensure that we maintain and expand this competitive advantage.”

Other firms and organizations represented at Thursday’s meeting or otherwise engaged in the regional logistics partnership include Mount Vernon Barge, Bernardin Lochmueller & Associates, Meyer Distributing, Architecture +, Shoe Carnival, Atlas World Group, Koch Enterprises, Vectren, Toyota Manufacturing, Berry Plastics, Bestway Express, the Dubois County Airport, NW Kentucky Forward, Owensboro Riverport, United Companies, SABIC Innovative Plastics, Mulzer Crushed Stone, the Henderson County Riverport Authority, Mead Johnson Nutritionals, Hoosier Southern Railroad, the Evansville-Vanderburgh Airport Authority, OFS Brands, Woodward Commercial Realty, Morley & Associates, and many more.

The CILC Southwest Regional Partnership will meet regularly and hold periodic forums and input sessions, addressing the transportation, infrastructure and public policy concerns of employers in the region (which is equivalent to the State of Indiana’s Economic Growth Region 11, home to more than 50,000 manufacturing and logistics employees). 

Conexus regional partner Kathleen Randolph pens this editorial in this morning's Fort Wayne Journal-Gazette on the (Fort Wayne) North Side High School's participation in the Hire Technology curriculum pilot program, and Dr. Tony Bennett's acknowledgement of the initiative in his State of Education speech last week:

Last Wednesday, Indiana Superintendent of Public Instruction Tony Bennett delivered his ‘State of Education’ speech, an annual message of vital importance to anyone with a stake in the future prosperity of Hoosiers.  In today’s knowledge-based economy, our educational system is our most potent economic development tool.

In addition to discussing the ‘big picture’ issues impacting our schools, Dr. Bennett highlighted specific success stories and examples of educational innovation around the state.  We are pleased that he mentioned an important partnership happening right here in Fort Wayne, at North Side High School.

North Side was selected as one of just eight pilot schools for a new advanced manufacturing and logistics curriculum, responding to the needs of employers in Indiana’s largest economic sector.  The ‘Hire Technology’ curriculum developed by Conexus Indiana and Ivy Tech Community College gives young Hoosiers a head-start on careers within today’s high-tech factories and supply chain operations.

Hire Technology uses a mix of traditional classwork, online and virtual lessons and hands-on projects to expose students to these industries, moving from basic concepts to specific job skills.  When students complete the two-year program, they will have earned college credits and multiple industry-endorsed certificates (such as the Manufacturing Skills Standards Council, or MSSC).

Conexus has also focused on connecting high schools with local manufacturing and logistics companies to help bring Hire Technology’s lessons to life, providing plant tours, job shadowing and other opportunities.  Fort Wayne Metals has partnered with North Side High, and we thank them for their commitment.

We should quickly dismiss one outdated perception – Hire Technology isn’t preparing students to stand on an assembly line or drive a forklift.  Today’s manufacturing jobs require technical expertise, tech savvy, communication and teamwork strengths.

Employees in manufacturing and logistics today are operating computerized equipment, working with multi-million dollar robotic systems, managing global supply chains, acting as part of a team to anticipate and troubleshoot problems – using brains over brawn to maximize productivity.  These are the skills that employers need, and that Hire Technology will emphasize.

And industry demand is strong.  Growth in Indiana’s manufacturing employment has outpaced every other sector in the last three years, leading the state out of the recession.  The Indiana Economic Development Corporation confirms that manufacturing and logistics are the state’s largest source of new job commitments.

But the challenge of finding qualified applicants threatens to hinder this growth.  Manufacturing and logistics employers are desperate for the next generation of skilled employees as they confront a rapidly-aging workforce.  By introducing these fields to students early and giving them the jump on college credits and certificates, industry leaders hope to revitalize their human capital pipeline.

Conexus and Ivy Tech responded with Hire Technology, and early reviews are promising.  More than 300 students are enrolled in the program in the eight pilot schools that launched it this semester, including 35 at North Side High School, and there is significant interest from school superintendents and educators around the state for 2013.

We appreciate Dr. Bennett’s acknowledgement that Fort Wayne is on the cutting-edge of aligning classroom learning with real-world industry needs.  Even more important, we want employers to know that our young people are being prepared for the high-tech challenges that await them after graduation – and Hire Technology is a big step in the right direction.

Kathleen Randolph

President & CEO, Northeast Indiana Workforce Investment Board