Greater Martinsville Chamber of Commerce Presentation
November 18, 2011 www.conexusindiana.com

In June of 2007, the Central Indiana Corporate Partnership (CICP) launched Conexus
Indiana after the Battelle Report identified the following as Indiana’ target industry clusters: life sciences, technology, advanced manufacturing and logistics, energy/clean technologies

To serve as the catalyst to position Indiana as the recognized global leader in the advanced manufacturing and logistics sectors

Robert Bernhard
Steven Dwyer
Mark Gerstle
Scott Glaze
J. Mark Howell
Robert Koch II
Catherine Langham
Victor Lechtenberg
Joe Loughrey
Mark Miles
Dennis Oklak
Robert Palmer
David Parish
Thomas Snyder
Vice President for Research, University of Notre Dame
President and CEO, Conexus Indiana
Vice President-Chief Administrative Officer, Cummins Inc.
CEO, Fort Wayne Metals
President, Brightpoint Americas
President and CEO, Koch Enterprises, Inc.
President, Langham Logistics, Inc.
Vice Provost for Engagement, Purdue University
Retired Vice Chairman, Cummins, Inc
President & CEO, Central Indiana Corporate Partnership
Chairman and CEO, Duke Realty Corporation
Vice President, FedEx Corporation
Vice President of Operations, Allison Transmission, Inc.
President, Ivy Tech Community College of Indiana

Attract and train a 21 st century AML workforce
Support the sector via research, policy + infrastructure programs
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Workforce development identified as the top priority – employers need a new breed of skilled workers to grow/succeed
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Industry also wanted an organization which could focus on broad issues of mutual concern – research, public policy, infrastructure

While low-skill (-25%) and mid-skill (-18%) jobs declined over last
20 years: “Employment in high-skill manufacturing occupations has risen 37%, an increase of roughly 1.2 million jobs. High skill jobs were the only source of job growth in the U.S. manufacturing sector during this period.” - Federal Reserve Bank of New York
Workforce development is economic development.

But Indiana Falls Short in
Supplying Qualified Workers

Indiana ranks 35 th in the number of adults holding an associates degree

Indiana ranks 31 st in percentage of workforce with a high school diploma and
42 nd in college-educated workers overall
The 2011 Manufacturing and Logistics Report Card compares the state of Indiana’s AML industries with those of surrounding states

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Workforce readiness is the major threat to the future of
Indiana’s largest economic sector
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The scope of this challenge demands a collective, collaborative approach
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But today, too many employers still embrace an outdated model of worker training…

Results from recent Conexus statewide employer survey:
What percentage of your employees would benefit from targeted training for their job?
30,0%
25,0%
20,0%
15,0%
10,0%
5,0%
0,0%
Most About half About onefourth
Less than 10%
53% say half or most of their employees need additional training

What is your minimum educational requirement for entry-level employment?
Other
No Requirement
GED
High School Diploma
0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% 45,0% 50,0%

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The Old Way:
 Hire unskilled workers, train them in-house – expensive and inefficient for individual companies
 Industry is disengaged from educational institutions
 As skill demands rise, so do training costs – a competitive disadvantage
 Prospective AML employees have no consistent path to employment

A New Way:
 Connect industry and academia – solicit private sector input to create relevant, industry-endorsed educational programs
 Market these programs aggressively to prospective employees
 Build a robust pipeline of qualified applicants – in-house training costs are lessened, overall workforce quality increased, common standards are set


Voice of Industry – identify workforce needs

High School programs – start the pipeline early
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Community College partnerships
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DOE/DWD engagement – career pathways and curricula
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Marketing – social networks/media – attract young Hoosiers
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A National Campaign – portable AML credentials

Attract and train a 21 st century AML workforce

Industry Led Task Force
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High School Champions (89)
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High School Superintendents (40)
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Career and Technical Education (15)
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Skills Map – Basis for Curricula
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Dream It. Do It. (480,000 “impressions”)
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Social Media-Awareness Events
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Community College Partnerships
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Pathways – DOE and DWD
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Manufacturing Institute – Skills
Certification System
Support the sector via research, policy and infrastructure programs

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Safety and Environment
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Production and Inventory Control Systems
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Six Sigma Tools
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Lean Manufacturing Principles
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Regulatory Compliance
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Total Quality Management (TQM)

– AML Pathways were in the first tier of Career Pathways developed by the DOE as part of a 3 year project to transform the $100 million career and technical education program in Indiana
– Conexus was instrumental in designing Pathways using the Skills Template
– AML Pathways will be piloted this year

Conexus Indiana - 58 High Schools
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Anderson High School
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Area 30 Career Center
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Area 31 Career Center
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Arlington High School
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Arsenal Technical High School
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Ben Davis High School
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Ben Davis 9th Grade Center
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Blue River Career Center
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Brownsburg High School
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Carmel High School
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Cascade Senior High School
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Center Grove High School
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Central Nine Career Center
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Century Career Center
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Danville High School
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Decatur Central High School
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Eastern Hancock High School
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Eminence High School
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Emmerich Manual High School
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Excel Center - Logistics
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Franklin Community High School
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George Washington High School
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Greenfield Central High School
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Hamilton Southeastern High School
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Hinds Career Center
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Hoosier Hills Career Center
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Indian Creek High School
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Indianapolis Metropolitan High School
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IPS Career Technology Magnet
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IPS New Tech High School
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Lawrence North High School
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McKenzie Career Center
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Mooresville High School
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Morristown High School
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Muncie Central High School
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New Castle Area Career Programs
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New Palestine High School
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Noblesville High School
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Parke-Vermillion Schools
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Perry Meridian High School
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Pike High School
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Plainfield High School
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Shelbyville High School
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Southport High School
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Speedway High School
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Tri-County High School
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Triton Central High School
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Tri-West Senior High School
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Vigo County Schools
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Waldron Senior High School
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Walker Career Center
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Warren Central High School
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West Central IN Career & Tech
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Western Boone High School
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Westfield High School
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Whitewater Career Center
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Wildcat Creek Career Cooperative
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Zionsville High School

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Working with Manufacturing Institute on national AML credentials
 Creating a set of relevant, consistent industry certifications that can be applied nationally
 Conexus acts as the voice of industry
(Industry)

Attract and train a 21 st century AML workforce

Industry Led Task Force

High School Champions (89)

High School Superintendents (40)

Career and Technical Education (15)

Skills Map – Basis for Curricula

Dream It. Do It. (480,000 impressions)

Social Media-Awareness Events

Community College Partnerships

Pathways – DOE and DWD

Manufacturing Institute – Skills
Certification System
Support the sector via research, policy and infrastructure programs
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AML Report Card
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Published First Ever Logistics
Strategic Plan
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Statewide Logistics Council
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Intermodal Support
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Statewide Automotive Council
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Statewide Aerospace/Defense
Council
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Statewide Supplier Database
(6,449)
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Six Current Conexus Partners

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Chaired by Chip Edgington, Executive Vice President of Redcats

Four Task Force Groups
 Infrastructure – Chaired by Torrance Richardson, Ex. Director of
Fort Wayne-Allen County Airport Authority in Fort Wayne
 Public Awareness – Chaired by J. Mark Howell, President of
Brightpoint Americas, Inc. in Plainfield
 Public Policy – Chaired by Don Miller, Jr., President of Mt. Vernon
Barge Service in Mount Vernon
 Workforce Development – Chaired by Chip Edgington, Executive
Vice President of Redcats in Indianapolis
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44 Members from around the State

Indiana’s Limitations
• Transportation bottlenecks
• Lack of direct rail service
• Underutilized air facilities
• Lack of efficient mode-tomode connectivity
• Decaying locks infrastructure
• Lack of dredging
Impact of Inaction
• Increased costs
• Potential environmental impacts
• Inefficient freight movement
• Loss of productivity for
Indiana’s businesses
• Decreased safety

5
6
2
3
4
1
Intermodal facilities in Indiana that bypass Chicago bottleneck

Helping Hoosiers do business with Hoosiers:
– A procurement portal connecting Indiana companies (from all industries, though emphasizing AML firms) with in-state suppliers
– Nearing 6,449 Hoosier businesses registered
– Access to a Broad Spectrum of Capable Hoosier Businesses
– Comprehensive Supplier Information: capability, diversity, certifications, product/services information, demographics
– Supported & promoted by IEDC, Indiana Secretary of State,
Department of Administration, Indiana Chamber of Commerce and
Indiana Small Business Development Centers

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Conexus , in partnership with the Indiana Economic
Development Corporation, established the Indiana
Automotive Council to advance automotive design, innovation and manufacturing within the state of Indiana
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The Council is industry driven and composed of senior executives from the most influential, most innovative and fastest growing automotive companies in Indiana
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The Council is helping develop a strategic plan to facilitate job creation and capital investment in the automotive industry

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Conexus , in partnership with the Indiana Economic
Development Corporation, established the Indiana Aerospace and Defense Council (“IADC”) to encourage growth in
Indiana’s Aerospace and Defense cluster
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The IADC will serve as a structured forum to explore industryspecific issues and challenges and identify solutions to position the state to meet its long-term goals of job growth and increasing state and local revenue
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The IADC will serve as a “voice” of Indiana’s aerospace and defense cluster

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Manufacturing employees more than 500,000 people in
Indiana

Logistics employees more than 300,000 Hoosiers
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61% of U. S. companies cite a serious shortage of skilled production workers
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At the same time, nearly 1,000,000 Hoosiers lack the basic educational skills needed

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Indianapolis International Airport: 8 th largest cargo airport in
North America
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Indiana is 9 th among states in rail miles (nearly 4,500 miles)
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Indiana ranks 14 th in the U. S. in waterborne freight traffic
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Indiana exported over $28 billion of goods in 2010
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The logistics industry contributes nearly $9 billion to Indiana’s
Gross State Product (2009)
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75% of the nation’s population and businesses are within a day’s truck drive of central Indiana

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Indiana’s motor vehicle industry is the 2 nd largest in the
United States, producing more than $9.8 billion in goods
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Indiana is home to more than 630 automotive companies
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More than 120,000 Hoosiers are employed by the Indiana automotive industry
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6 different Original Equipment Manufacturers (OEMs) have automobile assembly facilities in Indiana . . . More than any other state
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More than 11% of all automobiles produced in the United
States are produced in Indiana

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In 2010, more than 1,600 Indiana employers entered into prime contracts with the Department of Defense, worth a total of $4.35B (24 th nationally)
- 165 companies surpassed more than $1M in contracts
- Small businesses received a total of $577M, at an average contract value of approximately $95K
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Harvard University’s Cluster Mapping Project indentified
Indianapolis as the 4 th largest aerospace engine cluster in the
North America
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NSWC Crane is the 3 rd largest naval installation in the world
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Northeast Indiana Defense Industry Association (NIDA): shining a spotlight on Department of Defense opportunities