Indiana Manufacturing

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Indiana Manufacturing LogisticsTomorrows
Opportunity Not Yesterdays News
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Manufacturing and Logistics in Indiana
Source Ball State University Center for Business
and Economic Research, 2009 Manufacturing and
Logistics Report Card
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We dont make anything in America
anymore. Manufacturing is yesterdays news
were in the New Economy. Manufacturing? All
those jobs are moving to China. You dont want
to work on an assembly line all your life, do
you?
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Manufacturing is malignedlogistics isnt
understood at all

• ?

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Conexus Indiana

• Spreading the word and setting the record
  straight are critical parts of the mission of
  Conexus Indiana, the initiative focused on making
  our state a global advanced manufacturing and
  logistics leader.

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Mythbusting
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Myth 1 Theres no future in manufacturing

• The IEDC reports new Indiana manufacturing
  investment of nearly 4 billion since 2005,
  27,000 new jobs (more jobs attracted than any
  other industry in 2008)
• Growth opportunities in areas like medical and
  clean technologies
• Just two companies Cook and Baxter have made
  recent job creation announcements of 900
  positions in medical manufacturing
• Federal cleantech goals double renewable energy
  use in 3 years, put 1 million hybrid electric
  vehicles on U.S. highways by 2015
• As the economy rebounds and Baby Boomers retire
  en masse, Central Indiana projects 5,039
  manufacturing job openings by 2010
• These jobs pay an average of 40 more than the
  states median income

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Myth 2 As the Big Three go, so goes
manufacturing

• Manufacturing has been hard-hit by the recession
  especially automotive
• Automotive accounts for 25 of Central Indianas
  total manufacturing sector and 18 of statewide
  manufacturing employment
• A large share, but not even a third of overall
  manufacturing our industry is diverse
• Aerospace/defense
• Medical/pharma manufacturing (20 of
  manufacturing output)
• Electronics
• From the latest military aircraft to tomorrows
  electric vehicles, from lifesaving medicines to
  high-tech sensors - Indiana manufacturing goes
  far beyond the Big Three

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Myth 3 Manufacturing jobs/opportunities are
being moved overseas

• Indiana is winning globalization
• State ranks 1 for two consecutive years in
  manufacturing jobs created through foreign
  investment
• More than 29 countries are represented by
  manufacturing operations in Indiana
• More than 95 of Indiana exports are manufactured
  goods
• Nearly 100,000 Hoosier manufacturing workers are
  employed by international firms

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Myth 4 Manufacturing is low-tech, low-skill

• U.S. manufacturing invests more in RD than any
  other industry
• Manufacturing technology investments (i.e.
  robotics, computerization) have contributed
  nearly 1 trillion in economic benefit to the
  manufacturing sector
• Between 1995 and 2004, output per worker in U.S.
  manufacturing rose 34
• Federal Reserve analysis attributes fully half of
  this increase to IT integration into
  manufacturing processes
• If you work in manufacturing today, youre more
  likely to sit at a computer than stand on an
  assembly line.

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Importance of Logistics

• Logistics employs more than 250,000 Hoosiers.
• An estimate 75,000 more Hoosiers are employed in
  logistics positions with by the states
  manufacturers.
• An increase of 20 in logistics jobs has been
  predicted for Central Indiana over the next 5
  years.
• Logistics jobs on average pay 30 more than the
  states per capita income.

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The Crossroads of America Not just a slogan

• Logistics is another tremendous opportunity
• Now a 1.3 trillion industry U.S. freight volume
  projected to double by 2035
• Indiana ranks 9 in logistics employment per
  capita
• Indiana geography infrastructure
• 1st in interstate access
• 9th in rail miles
• 14th in maritime shipping
• 8th in air freight
• 2nd largest domestic FedEx hub
• 75 of U.S. Canadian populations within a days
  truck drive

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National Population Overview Map
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Takeaways

• Manufacturing, like most other industries, has
  been impacted by the recession especially
  automotive
• But Indiana manufacturing is diverse, with
  opportunities for growth (medical/pharma, energy,
  aerospace and more) and were attracting
  investment from around the world
• Manufacturing is high-tech
• Our thriving logistics industry is also a major
  employer, moving manufactured goods across the
  country and around the world
• How can we maintain these strengths and
  accelerate our economic comeback?

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It takes a plan the Battelle Blueprint
Manufacturing logistics arent yesterdays news
theyre todays economy and tomorrows
opportunity for growth.

• CICPs Battelle blueprint for economic
  development Advanced manufacturing logistics
  are key economic clusters for Indiana
• Battelle also identified human capital
  (workforce) as a critical priority for all
  clusters
• In 2007, CICP launched Conexus Indiana to help
  improve the states competitive position

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Conexus Strategic Priorities

• Human capital building a world-class
  manufacturing and logistics workforce
• Making industry connections
• A voice for the industry for policymakers (i.e.
  logistics planning)
• Helping create new business opportunities (i.e.
  defense initiative, supplier database)
• Changing perceptions about manufacturing and
  logistics combating the three Ds dark,
  dirty, dangerous

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Human Capital The aging of the workforce

• A recent NAM survey shows that 80 of
  manufacturers list finding qualified workers as
  a top concern and with the aging of the U.S.
  workforce, the issue wont be resolved any time
  soon.
• There are more than 70 million baby boomers in
  the United States with nearly 8,000 turning 60
  every day it would take 17 years worth of high
  school graduates to make up for the retirements
  in the next 5-7 years.
• 3 of every 4 manufacturing job openings over the
  next few years will come through
  retirement/attrition. Central Indiana projects
  5,039 openings by 2010.

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Indianas Education GapEducational Attainment of
Hoosiers, 24-34
Source Lumina Foundation

• Todays high-tech manufacturing jobs require more
  education and training i.e. associates degrees
  unfortunately, Indianas younger workers are
  falling short.

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Helping the System Work Dream It. Do It.
Conexus is launching an aggressive New Media
marketing campaign to attract 18-24 year olds to
manufacturing logistics careers.
Young Hoosiers
Manufacturing/ Logistics Employers
Getting job/skill need data from employers
asking corporate partners to prioritize grads of
Conexus-approved programs in hiring.
Working with industry and educators (Ivy Tech,
innovative providers like Oxygen Education) to
create programs aligned with job demands.
Education Training Providers
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Connecting the Public Private Sectors
Logistics Planning

• Indiana lacks an integrated, comprehensive
  statewide plan to support the needs of the
  logistics industry
• Formed the Conexus Indiana Logistics Executive
  Committee (LCEC) by inviting business executives
  and thought leaders throughout the state in the
  logistics sector trucking rail waterway
  shipping air cargo warehousing/distribution and
  infrastructure
• LCEC will create the plan by using input gathered
  from the private sector at statewide roundtables
  which were completed in 2008

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Development of a Comprehensive Statewide
Strategic Plan

• The plan will include strategies to enhance
  public and private infrastructure, build the
  human capital needed to support the growing
  demand for logistics services through innovative
  workforce programs, develop earned and paid
  media, and identify federal and state public
  policy areas that impact the logistics industry.
  

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Formation of LCEC Task Force Groups

• Infrastructure Dennis Faulkenberg with Appian
  in Indianapolis, Chair
• Public Awareness Kerry Stemler with KM Stemler
  General Contractors in New Albany, Chair
• Public Policy Kevin Kelly, President of Walsh
  Kelly in South Bend, Chair
• Workforce Development Andre Lacy, Chairman of
  LDI in Indianapolis, Chair

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Desired Result of LCEC Task Force Process
A strategic plan that encompasses the following

• Infrastructure Create a comprehensive list for
  short, medium and long-term road, airport,
  waterways/ports and railroad projects (along with
  their cost and stages of development) with
  statewide impact
• Public Awareness Create a media and grassroots
  strategy that will bring better understanding of
  logistics and its important to the state
• Public Policy - Will identify and recommend
  innovative public policy solutions (along with
  their costs)
• Workforce Development - To develop state-of-the
  art education programs in content and delivery
  that align with industry needs focused on the
  middle and advanced middle skill levels and that
  is valued and recognized by industry

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Other Industry Connections initiatives

• Indiana Supplier Database working with Purdue
  to create a comprehensive database connecting
  Indiana manufacturers with in-state supply chain
  partners
• Manufacturing Connections Luncheon Series
  sponsored by Bingham McHale provide networking
  opportunities and educational programming for
  Central Indiana manufacturing executives

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Setting the record straight Manufacturing
Logistics Report Card
2009 Report Card

• Conexus releases an annual Manufacturing
  Logistics Report Card, assessing our strengths
  and weaknesses
• The 2009 Report Card shows solid performance
• Manufacturing and logistics are major components
  of Indianas economy
• Our global position is strong foreign
  investment exports
• Pro-growth business climate
• Human capital is our biggest barrier to success