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Economic Development for South Bend, Mishawaka and St. Joseph County, Indiana

News & Initiatives

South Bend best place to buy a home

Jan. 6, 2010

NBC’s Today Show has named South Bend as the best place in the country to buy a home. In making the recommendation, Today considered not only home prices, but also whether homes have been appreciating and whether buyers will find economic stability, employment and good schools.

Today’s Ann Curry interviewed New York real estate legend Barbara Corcoran, who reviewed prices and economic conditions and opportunities all across the country and came up with a tip 10 list:

AC: Now your criteria is very instructive because not only were you looking at size and value which is I think something that, the things that we would normally look at, you also looked at factors like job growth and also where have home prices increased in the past year. That’s interesting.

BC: Well, they’re very important factors. Everyone likes to get a good deal on a house, a cheap price, but if you’re buying in a market where it’s still falling it doesn’t make sense, or in a market where you can’t get a job or a good school. So these are each places that fill all of that criteria.

AC: The first one is in South Bend, Indiana

BC: And prices have been rising steadily for almost a full year now – the median price – and still the median price is only half of what it is in the rest of the nation. That’s an enormous difference, a lot of house for the dollars, and the cost of living is a whopping 29 percent lower than anywhere else.

Click here for the complete list and to watch the report.

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Metronet infrastructure, success works into GramTel business plans

April 13, 2009

If the rapidly growing GramTel data services company is any sort of an indicator – and South Bend civic officials hope it is – the St. Joe Valley Metronet will serve as an economic stimulator and attract high-tech firms for years to come by providing virtually unlimited bandwidth while saving them money.

GramTel, a subsidiary of Cincinnati Bell, opened a second data center in South Bend last fall, and may build a third here later this year. That’s due in large part to its success in using Metronet, which offers state-of-the-art telecommunications over 50 miles of dark optic fiber infrastructure system that loops around South Bend and Mishawaka.

"Metronet has definitely helped our growth,” says Rich Carlton, a GramTel vice president. “It permits us to purchase bandwidth at a lower cost so we can keep our expenses down, offer increased connectivity speed, boost reliability and go to voice-over IP technology much more cost effectively.

Metronet is run as a non-profit corporation and now has 40 subscribers. They include companies like GramTel, which provides disaster recovery/business continuity, backup, data storage and co-location services to companies around the country. If a company faces an emergency and loses access to its information technology systems, GramTel’s backup systems allow it to keep operating.

Other Metronet subscribers include regional hospitals, medical clinics and other institutions – including the University of Notre Dame. Through a network of transcontinental fiber pipes, Metronet links its subscribers to each other, as well as to its own locations and other institutions around the globe.

Mary Jan Hedman, Metronet’s director, says she hopes Metronet may one day draw huge firms like Google or Yahoo to South Bend.

If one of those companies located a data center here, it could save them tens of thousands of dollars in annual operating costs,” she says.

In physical terms, Metronet lies deep below the ground. Its fiber links to long-haul trunk line points-of-presence that extend across the country. Telecommunications service vendors provide their own high-performance equipment that can take full advantage of Metronet’s fast speeds.

Here’s an analogy that illustrates how Metronet works.

If Metronet were Germany’s Autobahn, then Metronet’s vendors would be like tour buses on the Autobahn, zooming along at ultrafast speeds. And to take the Autobahn analogy a step further, the numerous passengers are like Metronet’s data, reaching destinations in record time. By comparison, typical data networks are like small passenger cars on two-lane roads with 50 mile-per-hour speed limits, carrying fewer people (or data) at much slower speeds.

Carlton says that without Metronet, his company wouldn’t have opened a second data center in South Bend’s Blackthorn Corporate Park last fall.

At the grand opening of the new data center at Blackthorn, South Bend Mayor Stephen J. Luecke lauded GramTel’s expansion and said it “helps us to tell our story about the infrastructure we have in place to support high-tech companies.”

Carlton says his company chose South Bend to start and expand because of its proximity to Chicago. GramTel’s corporate headquarters is also located in South Bend.

“At roughly 90 miles from the Windy City, South Bend is far enough away to be safe, yet close enough to still be drivable,” says Carlton, whose company was started in 2000 and has used Metronet since its founding.

He says other factors that make South Bend attractive include the low cost of power, the reduced cost of living, the low cost of bandwidth and the ability to connect back to Chicago easily. 

The links with Notre Dame and the workforce it creates and fosters also make South Bend “a great location for a technology based businesses like us to locate,” he adds.

Civic officials believe Metronet will be one of the factors that entice research-based start-ups to set up shop in South Bend’s dual-site, state-certified technology park in South Bend: Innovation Park at Notre Dame and Ignition Park.

Though GramTel has clients around the country, Carlton says the bulk are located in nearby Chicago.   

“With Metronet, we have invested in long-haul connectivity between downtown Chicago and Metronet,” he says.
“So companies can send data on a shared connection into our centers and connect to their systems in Indiana from Chicago for very inexpensive rates compared to what they would have to spend if they went to other parts of the country.”

Carlton says the second data center was built in South Bend mainly because so many Chicago firms “were seeing the benefit of having disaster recovery in South Bend.”

Officials at Notre Dame say Metronet has been a boon to research and teaching efforts at the university, which supported Metronet’s creation.  Metronet allows the university to transmit an average of roughly five terabytes of data a day – the equivalent of about 7,406 CDs.

“Like many universities, our research and staff are in locations well beyond the footprint of our campus in South Bend,” says Dewitt Latimer, Notre Dame’s chief technology officer and deputy chief information officer.

He said Metronet helps faculty and staff share huge amounts of data for research projects. It also allows on-campus researchers to hold real-time video conferences with their counterparts in far-flung locations such as Antarctica or even multi-site meetings with scientists working in Africa.

“We maintain several gig links to connect with our national and international peers,” he says. “We also have disaster recovery and hot sites at three data centers spread throughout South Bend and we maintain redundant links to all those facilities.”

By using Metronet instead of a commercial carrier, Latimer says the savings to Notre Dame have been “substantial.”

“As you go through any initiative and start costing things out, it seems like high-speed networking is always one of those (financial) deal breakers,” he says. “Disaster recovery is a good example.

“There are lots of schools that would love to have a secondary data center, disconnected from their campus. But the second you throw in the networking component, it becomes very problematic and very expensive so a lot of schools just don’t do it.

“By not being burdened with those expensive networking services, it allows us a lot of freedom to execute and do things we might not otherwise be able to do,” he says.

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Economy: Recovery coming, but slowly

By Grant C. Black

Director, Bureau of Business and Economic Research; Assistant Professor of Economics, School of Business and Economics, Indiana University South Bend

November 2009

The Michiana region, comprised largely of the South Bend-Mishawaka and Elkhart-Goshen metropolitan areas, faced significant setbacks during the recent recession, including slowed production, substantial job loss, and shrinking real wages. Recovery in 2010 will come slowly, particularly for employment.

Gross Domestic Product

Real gross domestic product (RGDP) for the region dropped substantially due to the recession, particularly in manufacturing-dominated Elkhart.1 RGDP decreased 9.1 percent in 2008 in Elkhart and decreased 0.5 percent in South Bend. Based on the percentage change in RGDP, Elkhart ranked 365 (second worst) out of the 366 metropolitan areas in the United States, and South Bend ranked 278th. The size of the local metropolitan economies in 2008 was $10.6 billion (in chained 2001 dollars) in South Bend and $8.9 billion in Elkhart.

Employment

The recession adversely affected local labor conditions. One cause of concern is the region’s shrinking labor force. In September 2009, there were 11,609 fewer people in the labor force of the combined South Bend and Elkhart metropolitan areas than in September 2007.2 South Bend’s labor force shrank 4 percent during this period, while Elkhart’s labor force contracted by over 6 percent. The reduction in the labor force could be a sign of growth in the number of discouraged workers and the out-migration of workers from the area.

Figure 1 shows metropolitan unemployment rates for 1990 to 2009. Local unemployment rates continued their rapid ascent since 2008, reaching their peaks in early to mid-2009. Due to substantial declines in employment caused by the slowdown of the RV industry, Elkhart faced some of the worst labor market conditions in the United States, with its unemployment rate reaching 19 percent in March 2009. Insulated somewhat by its more diverse economic base, including a concentration in education and health care, South Bend’s unemployment rates were relatively lower—though still high—in 2009.

Figure 1: Elkhart-Goshen and South Bend-Mishawaka Unemployment Rates, 1990 to 2009

Figure 1: Elkhart-Goshen and South Bend-Mishawaka Unemployment Rates, 1990 to 2009

Table 1 reports employment data by industry for the region’s metropolitan areas. The region has lost a staggering number of jobs as a result of the recession that officially began in the fourth quarter of 2007. Approximately 245,800 people were employed in nonfarm sectors across the region in September 2009, with employment being about 31,800 higher in South Bend compared to Elkhart. From September 2007 to September 2009, total nonfarm employment decreased more than 11 percent, with a loss of 7,700 jobs in South Bend and 23,600 jobs in Elkhart. Much of this job loss occurred since the fourth quarter of 2008.

Table 1: Employment by Industry and Metro Area, September 2009*

Industry South Bend Elkhart Combined
Employ-
ment
Change since September 2007 Employ-
ment
Change since September 2007 Employ-
ment
Change since September 2007
Total Nonfarm 138,800 -7,700 107,000 -23,600 245,800 -31,300
Manufacturing 16,800 -3,000 44,000 -18,500 60,800 -21,500
Professional and Business Services 13,000 -1,200 7,200 -1,900 20,200 -3,100
Trade, Transportation, and Utilities 27,200 -1,200 17,400 -1,200 44,600 -2,400
Natural Resources, Mining, and Construction 5,600 -1,000 3,800 -700 9,400 -1,700
Leisure and Hospitality 12,600 0 6,700 -900 19,300 -900
Other Services 5,400 -400 3,600 -400 9,000 -800
Government 16,300 -900 9,200 200 25,500 -700
Financial Services 6,600 -400 3,100 -100 9,700 -500
Information 2,000 -100 700 -100 2,700 -200
Educational and Health Services 33,300 500 11,300 0 44,600 500
*September 2009 data are preliminary
Source: Bureau of Labor Statistics

Manufacturing was the hardest hit sector, losing 21,500 jobs largely due to massive layoffs and closings in transportation and related manufacturing sectors. Heavily affected by plummeting RV production, Elkhart lost 18,500 manufacturing jobs since September 2007. Manufacturing employment will likely remain low in the year ahead as the RV and automotive markets remain weaker than previous years, consumer confidence remains shaky, and credit markets stay tight.

Even among non-manufacturing sectors, all experienced employment losses from September 2007 to September 2009, except private educational and health services that saw a modest gain of 500 jobs in the South Bend metro area. The largest non-manufacturing losses were in professional and business services, with a combined loss of 3,100 jobs in the region. Other sectors suffering sizeable losses included trade, transportation and utilities (-2,400 jobs); natural resources, mining and construction (-1,700 jobs); leisure and hospitality (-900 jobs); other services (-800 jobs); and government (-700 jobs). The only sector expanding in Elkhart was government. Employment in services and trade will likely remain weak as consumer demand continues to be relatively low. The government sector, which includes public education and hospitals, will likely stagnate or fall as public budgets continue to tighten.

Wages

Unlike the previous year, real wages saw a clear decline in the past year across the region.3 The real average weekly wage fell 4.7 percent to $683 (in constant 2009 dollars) from the first quarter of 2008 to the first quarter of 2009 in the two metropolitan areas combined. Wages, however, did not fall at the same pace across the region. The real average weekly wage decreased 4.1 percent in South Bend and 9.2 percent in Elkhart. The overall decline in wages reflects the slowdown in economic activity during the recession, while the relatively stronger decline in Elkhart comes from the more severe reduction in labor demand in that area. Despite the overall decline in wages, changes in wages varied considerably across sectors. Among the nineteen sectors for which data are available across the region, eleven saw positive growth. Given the expected sluggish rebound of labor demand as the economy begins to recover, wage growth will be minimal in the coming year, particularly in sectors with sizeable labor surpluses.

Housing

Residential construction, measured by the number of new single-dwelling housing permits issued in St. Joseph County, remained soft in 2009 but exhibited some signs of improvement beginning in the summer. From January 2009 to September 2009, only 88 new housing permits were issued, compared to 156 during the same period in 2008 and 247 in 2007 (see Figure 2). While low in number, 2009 saw some growth in new permits, particularly in April, June, and July, with intermittent downturns in February, May, and August. The region should experience modest growth in housing demand due to the expected upturn in economic activity, stabilized financial markets, and the availability of federal stimulus incentives in the short term. Continued tight credit conditions and high local unemployment will work against this growth.

Figure 2: Single-Family Residential Building Permits in St. Joseph County, 2005 to 2009

Figure 2: Single-Family Residential Building Permits in St. Joseph County, 2005 to 2009

Summary

In 2009, the Michiana region continued to bear the burden of a sluggish economy that began declining in 2007: significant job loss, high unemployment rates, lower real wages on average, and weak new home construction. Yet, 2009 showed signs of improvement, with production improving in some sectors, unemployment rates beginning to fall, and real wages expanding in certain sectors. The outlook for 2010 is optimistic, though not overly so. The worst effects of the recession have likely occurred and economic conditions should improve as the national economy recovers. The Michiana region should experience falling unemployment rates, modest job growth, some improvement in real wages, and increased activity in housing markets. The local rate of recovery will depend on the speed and depth of the national upturn, the health of the manufacturing sector, and the ability to re-employ the substantial local labor surplus. The impact of the recovery will depend on the ability to sustain economic growth in the future.

Notes

  1. Data from the Bureau of Economic Analysis: www.bea.gov/newsreleases/regional/gdp_state/2009/pdf/gsp0609.pdf.
  2. Data from STATS Indiana, Labor Force Estimates Time Series View: www.stats.indiana.edu/laus/laus_view3.html.
  3. Data from STATS Indiana, Covered Employment and Wages: www.stats.indiana.edu/cew/.
  4. Published courtesy Indiana Business Review

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Project Future Speaker: TI's Dr. Robert Doering Discusses MIND and the New Semiconductor

March 12, 2009

The nanoelectronics industry has embarked on a quest for fundamental changes that will transform virtually everything it touches, according to Dr. Robert Doering, senior fellow and research strategy manager at Texas Instruments, one of the world’s leading semiconductor companies.

And the Midwest Institute for Nanoelectronics Discovery (MIND), headquartered at the University of Notre Dame, is uniquely positioned to serve as an essential catalyst in that transformation.

Picture the entire city of New York – including every person, animal, insect and plant, every graffiti scrawl on every building, every piece of litter tossed onto the sidewalk – encrypted with pinpoint accuracy and stored on a tiny piece of silicon roughly the size of a postage stamp.
 
As impossible as it may seem, the field of semiconductors has miniaturized to the level where integrated circuits (“chips”) of similar complexity are used daily in such technologies as cell phones, GPS devices and automated medical defibrillators.

 “We’ve scaled down the incumbent chip technology so far that we will soon need something fundamentally different,” says Doering.

Scaling, the concept of producing ever-smaller components on integrated circuits, has driven IC technology for the past 50 years. The advantages of smaller components, including increased performance, more energy efficiency, lower costs, less space, expanded applications and larger markets, increase exponentially with each new level of scaling.

For a few more years, the existing technology can continue on its current trajectory, Doering said.  However, sometime between 2015 and 2020, scaling of this technology will reach the point where it can go no further. 

Thus, the search is on for a new way to make integrated circuits.

Speaking before a group of 155 key business leaders in South Bend, Doering outlined the scenario for the next monumental advance in semiconductor technology.

“What is the next transistor?” Doering asked the group gathered for the annual meeting of Project Future, which for 28 years has led economic development efforts in the South Bend area. “We have some interesting concepts, but we haven’t been able to verify the practicality of them yet.  We’re hoping to be there within the next few years, and MIND will be a crucial part of that.”

Researchers currently have several potential candidates under consideration.  Depending on a number of variables, the successful technology could move in any of several directions.

“It’s hard to predict the breakthroughs,” Doering said. “We know some of the contenders, but we don’t know which way they might go.”

It is precisely that unpredictability that places MIND – one of four research centers funded by the Semiconductor Research Corp.’s Nanoelectronics Research Initiative -- in a uniquely strong position.

While the goal of all four NRI centers is to discover and develop the next nanoscale logic device, MIND is unique among the centers in its focus on two themes:  energy-efficient devices and energy-efficient architectures.

“MIND is looking at overall efficiency and at overall evaluation of the new concepts against significant metrics,” Doering said.  “That puts South Bend on the map for funding.  It also elevates the stature of Notre Dame in the university research community and rankings.”

Doering’s visit highlights the widespread recognition of the research that is taking place at Notre Dame, according to South Bend Mayor Stephen J. Luecke.

“It’s a recognition of the partnership between the university and the city to move projects forward to commercialization,” Luecke said, explaining that the city’s commitment to support commercialization was a key factor in selecting the location for MIND.

“There is important work going on at MIND, and we’re at the heart of it,” Luecke said.  “This focus on our community shows that we’re moving in the right direction to create good opportunities.”

Some of those opportunities might arise from working with early adapters, Luecke speculated – small companies that are very nimble and interested in research in a variety of venues.  Such companies might not wait for the final big breakthrough, but are instead using individual elements now for existing or new products.  

Doering’s visit also highlights the area’s preparedness to welcome the new technology as it emerges, according to Patrick McMahon, executive director of Project Future.

“Part of the reason we’re very excited is that, as opposed to this being some intellectual property trying to find a home, the home is here,” McMahon said.  “It’s here in the form of people who manufacture logic devices and the people who use them. The industry players are already identified for us, and our relationship with them is significant because of research occurring here.”

The fact that the technology will find its way into so many different types of products, applications and industries adds even more significance to what is already developing in South Bend.

“This is one of the largest innovations in 150 years,” McMahon said.  “Its impact will be more far-reaching than the auto industry.”

“By 2015, the nanoelectronics field could reach the trillion-dollar range, according to the National Science Foundation.

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South Bend: A portal to progress and innovation

February 16, 2009

Today marks an important milestone in South Bend’s heritage of innovation.

On this date back in 1852, Henry and Clement Studebaker founded a modest wagon shop which eventually evolved into one of America’s largest independent automobile companies in the 20th century.

Yet the Studebaker brothers’ success is merely one illustration of South Bend’s pivotal role as a centuries-old portal to America’s progress. There are countless other examples of discovery and innovation which continue into the present, as the city forges a new technology-based economy.

A flair for innovation since the beginning
In the 17th century, French explorers were perhaps the first to embrace South Bend as a “portal to progress” when they discovered it was a key connection point between the Great Lakes and the Mississippi River.

In time, South Bend eventually became a leading manufacturing center.

James Oliver, one of America’s most influential industrialists, created the Oliver Chilled Plow in 1857, which played an important role in developing the American west.

At about the same time in the 1850s, the Studebaker brothers began designing and building the world’s best wagons and carriages.

Studebaker introduced its electric car in 1902 and began production of gasoline-powered autos in 1904. The company continued to produce advanced car designs until it ceased operations in 1966.

Through the years, bright scientific and technical minds in South Bend developed their creative ideas into remarkable inventions and products:

  • Notre Dame engineering professor Albert Zahm designed the first modern airplane in 1893 — 10 years before the Wright brothers’ first flight.
  • John and Miles O’Brien founded South Bend Lathe Works in 1908; by the early 1930s, it was the world’s largest exclusive manufacturer of precision metalworking lathes.
  • Jerome Green, a Notre Dame engineering professor from 1895 to 1914, was the first American to transmit a wireless message.
  • Vincent Bendix, founder of the Bendix Corp., designed, tested, and manufactured many new parts for the transportation industry, including the electronic self-starter for automobiles.
  • The Rev. Julius Nieuwland, a chemist and botanist at Notre Dame, helped invent synthetic rubber in the 1930s.

“Our history shows we know how to make things,” says Stephen J. Luecke, the mayor of South Bend. “Our people know how to create quality products that are used around the world — it’s in our blood. It’s in our DNA.”

Innovation leadership in the age of  technology
      

A pronounced "can-do" spirit underpins South Bend's drive to innovate and excel.

Take, for example, the PEI-Genesis, which manufactures connectors for electronic cables and equipment. The company challenged its employees to improve the cycle time for assembling connectors. Remarkably, PEI-Genesis’ South Bend employees reduced the turnaround time from 15 days to a mere 1.2 days.

“We owe our success to South Bend and the skillful people who live here,” says PEI-Genesis President Steven Fisher.

South Bend continues to build on its inventive reputation in other ways.

It was an enthusiastic public-private partnership that created the St. Joe Valley Metronet, a 47-mile fiber optic network that provides high-speed data transmission.

With virtually unlimited bandwidth, Metronet is one of the most advanced local networks in the country and a critical piece of infrastructure for high-tech companies.

 “We would not be in a position to attract high-tech development and business without the critical communication infrastructure provided through the Metronet,” adds Patrick McMahon, executive director of Project Future, South Bend’s economic development group.

And then there is the Midwest Institute for Nanoelectronics Discovery (MIND) — one of four such research centers in the country. The Semiconductor Research Corp., a consortium of the world’s leading computer chip makers, selected Notre Dame as the site for the $61 million program that will develop energy-efficient, next-generation, nanoscale logic devices replacing the current silicon chip.

MIND has coincided with the development of a dual-site, state-certified technology park in South Bend: Innovation Park and Ignition Park.

While Innovation Park will facilitate commercialization for all forms of research, Ignition Park will concentrate on nanotechnology commercialization of MIND-inspired concepts, and on other high-potential technologies and ventures as they emerge.

“Innovation Park, Ignition Park and MIND will greatly accelerate our economy and attract other innovative organizations to our city,” predicts Luecke.

The saga continues

Companies already are moving to South Bend in order to capitalize on the area’s continuing legacy of innovation.

Odyssian Technology — a high-tech company that develops new products related to advanced lightweight composites, multifunctional structure and integrated systems — recently chose South Bend for its new research facility.

“I wanted a location that was inspiring and creative,” says Odyssian Technologies president Barton Bennett. “We underwent a long and exhaustive search for our new facility, and found an unusually high level of personal interest and enthusiasm from South Bend city officials. It’s a great place to develop new ideas and concepts, and has tremendous potential for growing and attracting future high technology business.”

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South Bend is forging its high tech future, says nanoelectronics executive

January 12, 2009

In the coming year, South Bend will continue to take giant steps toward building its high tech future, according to a national authority on nanoelectronics.

Jeffrey Welser, Ph.D., director of the Semiconductor Research Corp.’s  Nanoelectronics Research Initiative, made those comments following South Bend’s Jan. 5 announcement of a brand new name for an emerging 83-acre technology park – Ignition ParkSM – which the city will market to nanoelectronic and other technology-based businesses.

Ignition Park, along with Innovation Park at Notre Dame, make up a dual-site technology park in South Bend – Indiana’s first ever state-certified technology park affiliated with two research universities: the Indiana University School of Medicine at South Bend and the University of Notre Dame.

For its part, Innovation Park is a collaborative venture between the City of South Bend and the University of Notre Dame, which will translate research discoveries from initial concept to commercialization.

The success of both Ignition Park and Innovation Park will be bolstered by the Midwest Institute for Nanoelectronics Discovery (MIND), which Welser’s organization established last year in South Bend.

MIND is one of four primary research centers nationwide, and is comprised of Notre Dame and other universities, and is funded by the National Institute of Standards and Technology as well as a consortium of the world’s leading computer chip makers – including IBM, AMD, Intel, Micron and Texas Instruments

In the following interview, Welser offered his insights about MIND, South Bend, and the area’s future as a center of nanoelectronic discovery.

Q: How did South Bend end up as the location for MIND?

A: The NRI’s main goal is to advance research that will be the basis for the next generation of computer chips. The current transistor architecture – CMOS, which means Complementary Metal Oxide Semiconductor – is expected to reach its limits probably by 2020, so we need to accelerate the development of revolutionary nanoelectronic technologies that are quite different from what we have now.

Toward this goal, the NRI has been looking for game-changing locations with a strong research and development base, combined with economic support at the local and state levels.

And South Bend was one of those key locations.

The University of Notre Dame’s technical work in nanotechnology was attractive to us, and the university’s commitment to building a new engineering center also was important, too.

Officials from South Bend’s city government, as well as Project Future [which promotes economic development in the area] met with us and made it clear that they wanted to support MIND in very real ways.

The city supported the development of Innovation Park, which will provide research and commercialization support for discoveries coming out of MIND and Notre Dame. It also provided land and millions of dollars toward developing another technology park – Ignition Park – in what is known as the Studebaker corridor – for technology businesses to grow.

This was very much a tipping point in our decision to locate MIND in South Bend.

Q: The city of South Bend has a strong partnership with the University of Notre Dame. Is this sort of community-university partnership unique?

A: The strong partnership between the city of South Bend and the University of Notre Dame is unlike any other city-university relationship we’ve seen.

Cities typically have not played the kind of active role that South Bend has when it comes to establishing these types of centers. The City of South Bend wanted to be an equal partner in promoting MIND, and has demonstrated its support economically and in other ways.

Q: How will MIND benefit South Bend?

A: If you look back at any major industries going forward, the ones that bring the most benefits have been based on some sort of breakthrough or major technological innovation.

So I definitely think investing in research facilities that cover a broad set of areas not only in nanoelectronics, but also the full range of nanotechnology, gives you the best likelihood of finding breakthroughs that can lead to new industries in the field. And South Bend is positioning itself to be at the ground level of these new ground-breaking industries.

Q: In what other ways will South Bend be attractive to individuals and companies in the nanoelectronic field?

A: There are a number of positives about South Bend that are attractive to companies interested in investing or locating there.

From an industrial point of view, the area is more affordable to set up locations in South Bend, by virtue of the fact that the city and the state have created various incentives.

Quality of life and cost of living are important – there are distinct advantages to being in South Bend or Indiana, for that matter, compared to more pricey parts of the country. Yet you’re an hour and a half from Chicago, which offers all the advantages of a major world-class metropolitan area.

You’ve also got beaches, dunes and ‘‘vacation land” to the north on Lake Michigan, comparable to but more affordable than vacation spots on the east coast. That’s a big draw for people as well.

Q: How does MIND stand out as an important nanoelectronic research center?

A: One of the things that we’ve noticed about the MIND center is that it rapidly ramped up its technical program and integrated professors not only from Notre Dame but also from the other universities involved.

This is largely due to the people leading MIND – its Technical Director, Alan Seabaugh, Prof. Wolfgang Porod, and Bob Dunn, MIND’s Managing Director. One of the things they did early on was hire Bob Dunn [formerly an IBM executive], and he was someone who could really organize things from an operations standpoint. They are extremely efficient, and already have taken the lead on a special benchmarking initiative to evaluate the various technologies being worked on in MIND and across the NRI centers, to better understand their potential in future chip products. This work should help focus – and accelerate – the research in the directions that offer the most promise for specific market applications.

Q: Why is MIND important to the evolution of computer technology? 

A: MIND will be focused on extending computer chip technology beyond its current capability. The ‘‘holy grail” of this research is to find a new switch to extend beyond CMOS, but whatever MIND might develop along the way will undoubtedly end up benefiting the chip industry in many different ways that we haven’t even thought of yet. And this research can impact other areas even beyond computer chip technology, such as biotechnology, space and energy.

Keep in mind, though, that these developments may be a few years down the line. It takes time, of course, to move research from the lab to a product that people can use.

But that’s the point of having Innovation Park and Ignition Park, the other technology park in South Bend, to bring these discoveries to market, and support the companies that commercialize them.

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Ignition Park Is Launched

January 5, 2009

South Bend's historic Studebaker Corridor, the once-bustling automotive hotbed, is now the focal point of a collaborative effort to grab a piece of the $1 trillion nanoelectronics market. On Monday January 5 2009, South Bend Mayor Stephen Luecke announced that the Studebaker site, which will be home to a portion of the state's first two-site Certified Technology Park, will be called Ignition Park.

Ignition Park, the 83 acres southeast of Sample and Chapin Streets, will be half of Indiana’s first two-site State-Certified Technology Park. Its sister, Innovation Park at Notre Dame, is now under construction on 12 acres along Edison Road across from the University of Notre Dame campus on the city’s northeast side.

The tech park is viewed as a potential catalyst for investment, innovation and jobs.

 “All forward movement begins with ignition,” said Patrick McMahon, executive director of Project Future, economic development catalyst for the greater South Bend, Mishawaka and St. Joseph County. “Innovative individuals and a skilled workforce drove 150 years of development in this community. This name represents a resurgence in local inventiveness, a signal that, as a community, we are returning to our roots.”

Efforts are under way to invest millions in resources to capture a portion of the projected $1 trillion U.S. nanoelectronics industry, especially research emerging from the Midwest Institute for Nanoelectronics Discovery (MIND) at Notre Dame, the newest of four national research centers funded by the nation’s leading computer chip makers.

Mayor Stephen J. Luecke unveiled the name for the 83-acre Sample Street site in a news conference on January 5, 2009, culminating a communitywide contest that drew 250 entries to rename the site that was home to the Studebaker portion of South Bend’s legacy of innovation.

“Ignition Park signals that this site will spark the creativity of researchers and engineers into the commercialization of new innovative products that we have yet to imagine,” Luecke said. “The name draws on the city’s legacy of innovation and heritage in the automotive industry, yet points to our future as a launching pad for nanotechnology and other high-tech ventures.”

“I am enthusiastic about South Bend’s future and cannot imagine a name more fitting for the Studebaker Corridor than Ignition Park. This name recalls the successful economic history of South Bend while also sparking a strong interest in South Bend's remarkable high-tech economic resurgence through the naming and development of Ignition Park,” said U.S. Rep. Joe Donnelly, congressman from Indiana’s Second Congressional District. “I applaud Mayor Luecke and his team, and I look forward to continuing to work with them as South Bend continues to prosper and grow.”

A “tipping point” in the decision to locate MIND at Notre Dame for the nation’s leading computer chip makers was the strong partnership between the City of South Bend, Notre Dame and the state of Indiana, according to Jeffrey Welser, Ph.D., director of the Semiconductor Research Corp.’s Nanoelectronics Research Initiative.

“The establishment of Ignition Park, along with Innovation Park, demonstrates that South Bend and Notre Dame are following through on their commitments. You are not just talking about doing things – you are actually doing them,” Welser said. “Together, South Bend and Notre Dame are taking bold steps toward transforming this area into a great source of technological innovation and product development in the future. When I look back to March 2008 when we announced the location of MIND in South Bend, and when I look at the progress that has been made since then, including establishing Ignition Park and Innovation Park, it reaffirms – without any doubts – that we made exactly the right decision.”

The collaborative relationship between Innovation Park at Notre Dame and Ignition Park in South Bend is highlighted by the new name. Companies formed at Innovation Park are expected to graduate to Ignition Park, yet continue to receive support services and other benefits from being part of the same state-certified technology park. While Innovation Park will facilitate commercialization for all forms of research, Ignition Park will concentrate on nanotechnology commercialization of MIND-inspired concepts, and on other high-potential technologies and ventures as they emerge.

“Innovation Park is designed to be a transformational space conducive to the commercialization of new ideas, and a place that provides clients with many of the ingredients needed for real-world success,” said David Brenner, president and CEO of Innovation Park at Notre Dame. “Ignition Park will be a place for these ventures to put down roots and grow their businesses once they are ready to leave Innovation Park. We are so pleased to be able to offer our clients a place to ‘ignite’ in the area, and are looking forward to many years of close collaboration.”

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Project Future's Annual Survey of Wages & Benefits Published: Expanded Coverage

Tribune Business Weekly
October 14, 2008

Available now is Project Future’s annual reference, a snap-shot of the labor market for small and large manufacturers and non-manufacturers, the Survey of Wages & Benefits for the Michiana Region. Conducted annually since the late 1980s, the Survey is the only locally collected, comprehensive profile of employee wages and benefits.

Helping local businesses maintain competitiveness, the Survey supplies baseline wage and benefit data critical to understanding this labor market. Doubling last year’s number of respondents, 187 area companies supplied data on 118 occupations and six benefit categories: paid time off, expanded health related coverage, retirement, training, education and incentive programs.

This area-specific data supports economic development activities which allow national site selection consultants and potential investors, new to the community, access to accurate local labor costs.

In promoting our community’s work force indicators, this year’s report expands its coverage beyond the St. Joseph County, Indiana statistics of years past.

The strong economic interconnectedness within Michiana, identified particularly through U.S. Census commuting pattern statistics, supported expanding the Survey’s coverage to companies in the Indiana counties of St. Joseph and Elkhart, and the Michigan counties of Cass and St. Joseph.

Pattie Gates, Human Resources Manager for The Lebermuth Company, a participating small manufacturer of fragrances and flavors, looks forward to the Survey results every year. “It’s a wonderful tool for us to use when we meet for our annual budget planning. We want to provide competitive wages in this labor market: the survey gives us the information to do that,” she said.

Though free to participants, the Survey may be purchased through the representative county economic development offices.

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Project Future Initiative:  South Bend MetroNet Shows That Fiber is Good For You

By Stephen Luecke, Mayor of South Bend Click here to visit the Metronet Website!

Transportation systems have always been critical to South Bend's vitality. From early days when traders and settlers used the St. Joseph River to move goods, through the heyday of railroads and the interstate highway system, to our multi-modal airport with bus and South Shore connections, we rely on good transportation for commerce, jobs and private investment. 

This infrastructure is still essential for manufacturing and advanced distribution. It strengthens South Bend's position as the regional center for health care, higher education, arts, culture, and entertainment. As we look to future growth, the transportation of data and ideas will be just as critical. That is why we are actively involved in providing quality infrastructure for the information highway.

To stay on track with the rapid rise in technology, The City of South Bend is a partner in the implementation of the St. Joseph Valley Metronet, a 50+-mile loop of carrier neutral fiber optic cable which is being installed in existing city conduit. The Metronet will allow communication companies, colleges and universities, medical facilities, private and public institutions to network with each other and provide services through the fiber. It will connect users to the vast array of transcontinental fiber that runs through South Bend along the railroad and Toll Road rights of way. Because of our location, we have access to several times the amount of long haul fiber than even much larger cities. One local entrepreneur has already created the on-ramps to this fiber with telco hotels and "meet me" rooms. Another entrepreneur has a 24/7 Network Operating Center and disaster recovery data center facilities. The Metronet fills in the gaps of connectivity. Leveraging these assets is a key strategy to building a 21st century city.

We are creating a competitive environment that will make South Bend the most affordable and accessible location for broadband services. This will help local businesses to prosper as they take full advantage of the Metronet, gaining significant connectivity and large bandwidth for less cost. One local institution doubled its internet capacity and quintupled its research broadband for the same price that it had paid before. The Metronet will spur innovation and the growth of intellectual capital through the ease of transmitting large amounts of data. It will help us retain businesses and attract new investment and jobs to our city with the establishment of data centers and real-time backup of critical business data.

Seven visionary local institutions have literally bought into this initiative. They have joined with the City and Project Future to incorporate the Metronet. They have also pledged sufficient funds to build out the MetroNet fiber loops and to provide operating support for its first three years. These institutions are eager for the connectivity and competitive voice, data, and video services environment which will benefit education, healthcare, business, government and the public. Metronet will provide a fiber backbone for the community that will lower commodity internet service costs and increase broadband services for the greater South Bend region. It is an important part of our vision to provide the infrastructure which supports innovation and excellence. It leverages our local assets of location, a concentration of higher education, strong healthcare, banking and financial services, and advanced manufacturing and distribution. It furthers our commitment to provide the best and most affordable services to residents and businesses. And it highlights South Bend's goal of utilizing technology to compete for information age jobs and enhancing our tax base.

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Press Release :   Ivy Tech Technology Division Celebrates First-Ever NAIT
                              Accreditation, Credit Transfer Agreement with Purdue

IVY TECH TECHNOLOGY DIVISION CELEBRATES FIRST-EVER  NAIT ACCREDITATION, TRANSFER OF CREDIT AGREEMENT WITH PURDUE

SOUTH BEND, IND. (Nov. 5, 2004) -- The Technology Division of Ivy Tech State College North Central recently celebrated two notable "firsts":  its first-ever accreditation through the Ivy Tech State College - South Bend, IndianaNational Association of Industrial Technology (NAIT), and its first transfer-of-credit agreement with a campus of Purdue University.

The NAIT governing board awarded four years of accreditation to all Ivy Tech North Central Technology Division programs at its Oct. 20 accreditation hearing in Louisville, Ky. The accreditation is effective through October 2008.

The Technology Division offers programs in design technology, automotive services, manufacturing and industrial technology, and electronics and computer technology.

NAIT is recognized by the Council of Higher Education Accreditation (CHEA) as the specialized accrediting agency for associate and baccalaureate degree programs in industrial technology. Approximately 70 colleges, NAIT - National Association of Industiral Technologyuniversities and technical institutes have industrial technology programs accredited by NAIT. 

Also last month, administrators signed a credit transfer agreement between Ivy Tech State College North Central and Purdue University North Central, Westville, enabling Technology Division students to transfer Ivy Tech credits to the bachelor of science in industrial technology program at Purdue North Central.

The agreement provides for the transfer of from 64 to 67 credits--approximately 22 courses, or two years of full-time study--earned in any Technology Division program to Purdue North Central.

"These two achievements attest to the quality of our faculty and program offerings," said David Brinkruff, Technology Division chair.

"They also assure employers and four-year institutions of higher education that our graduates have the training to be successful, both on the job and in bachelor's degree programs," he continued.

The achievements are the latest in a series of enhancements to Ivy Tech's technology programs. Last spring, the division held an open house at the South Bend campus to display new, state-of-the-art equipment in all program areas.

Technology Division students may earn two-year degrees, one-year technical certificates or short-term career development certificates in the various program areas. Specialties such as architecture, mechanical, CAD/CAM, computer graphics, welding, machine tool, CNC, industrial maintenance, electronics, computer systems and networking, and heating, ventilation and air conditioning provide additional options.

The Technology Division also provides contract training to business and industry through Ivy Tech's Corporate and Continuing Education Services Division.

Technology courses are offered on all three regional campuses-- South Bend, Elkhart and Warsaw. Students can earn career development certificates in automotive services, electronics, industrial maintenance, machine tool and welding on the Elkhart campus, and a career development certificate in machine tool on the Warsaw campus.

All program and degree options are available on the South Bend campus. Students may take general education and some technical courses on the Elkhart and Warsaw campuses and travel to South Bend to complete program requirements.

For more information about Ivy Tech's Technology Division, go to www.ivytech.edu/southbend and click on "Degrees and Programs" under Quick Links, or call (574) 289-7001 ext. 5380.

More information about NAIT and NAIT Accreditation can be found at its website, www.nait.org.


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Project Future Initiative:  Teamwork Brings Hummer Plant To Life

MISHAWAKA, Ind. - The unique partnership between General Motors and South Bend-based AM General not only produces successful vehicles, it also represents how swiftly a community can mobilize its economic development partners.

When General Motors purchased the Hummer concept from AM General in December 1999, the timetable to get the newly-developed H2 sport utility vehicle to market was extremely short. And before production could even begin, AM General had to purchase 35 additional acres, relocate 51 residences and build a 670,000-square-foot building.

Not only did all of this happen, but the H2 rolled off the assembly line to rave reviews and a waiting list.

Prior to 1999, AM General had been the sole producer of the military Humvee and its commercial look-alike, the Hummer H1. It was because of this expertise that GM selected AM General to manufacture the H2. But the H2 required a new plant and AM General was landlocked.

In an extraordinary demonstration of civic cooperation and teamwork, St. Joseph County was able to acquire the 35 acres and relocate every resident in just over six months without a single challenge going to court.

Next, the construction trades brought together more than 500 people to complete the $200 million facility within the original time line, despite one of the worst winters in Northern Indiana history. In July 2002, H2s began flowing to more than 150 dealerships nationwide.

Today, AM General's H2 plant operates three shifts and employs more than 1,200 people.

The commercial success of the H2 has paved the way for additional vehicles in the Hummer family. In fact, during 2004 GM plans to unleash the H2 sport utility truck, as well as update the interiors of both the H1and the H2.

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Project Future Initiative: National Retailer Chooses South Bend for Key
                                             Distribution Center, Deemed Revitalization Success

A Project Future and City of South Bend economic revitalization success story recently received a “Best Practices” case study feature in a 2008 publication of the US Conference of Mayors.
 
Distributed in December 2008, “Brownfields Redevelopment / A Compendium of Best Practices, Vol 2: Reclaiming the Land, Revitalizing Communities” identifies the TJX Corporation’s AJ Wright Distribution Center as a superior example of “extraordinary interagency teamwork” in a relatively brief six month span from project acceptance to the facility’s groundbreaking.

 “This project proved that with effective staff and efficient coordination, a city can navigate quickly through a complex brownfield project,” states the case study. “Project Future led the administrative process.”

Brownfields are abandoned or underused industrial and commercial facilities available for re-use, but which may be complicated by real or perceived environmental contaminations.

At stake was a $40 million new construction project to a section of the city that had not seen development in decades, let alone the new jobs that would follow.

 “The city and Project Future arranged meetings with business and property owners and explained both the time restrictions and the importance of this project for South Bend’s economic future,” the case study reports.

Though a “greenfield” site was on the list, TJX was interested in the 84 acres near downtown if the land could be ready for business operations to begin when projected. The case study reports how this was successfully achieved.

The United States Conference of Mayors is the official nonpartisan organization of cities with populations of 30,000 or more through their chief elected official, the Mayor. The case studies presented in this publication were collected and disseminated in 2005 and early 2006.

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Project Future Initiative:  Local Lab Offers Cutting-Edge Analysis of Drinking Water

SOUTH BEND - The $7 million expansion of Environmental Health Laboratories in downtown South Bend demonstrates the area's ability to cultivate a small, high-tech start-up into a Environmental Health Laboratoriescompany poised for a global presence.

Founded in 1986 by Jerry Thoma, EHL specializes in compliance testing and analysis of drinking water. EHL first began by testing water for residences, businesses and unregulated entities. Today EHL is certified in 48 states and Puerto Rico, and provides water testing for regulated entities such as municipalities, government agencies, industrial clients, water and beverage bottlers, and other laboratories.

After years of steady growth, EHL caught the attention of Underwriters Laboratories Inc., a nationally recognized not-for-profit organization that has tested products for public safety for more than a century. In April 2001 UL purchased EHL, making the South Bend operation its drinking water testing division. The acquisition prompted the $7 million expansion, which nearly tripled the size of the existing facility.

The partnership is a perfect fit for both companies. It allows EHL to tap into UL's global network of customers, and gives UL the opportunity to expand its growing portfolio of environmental and public health certification programs. In fact, UL plans to expand EHL's testing capabilities to support research of contaminants that cannot readily be measured by current technology, and potentially develop a global standard for drinking water.

Currently, EHL employs 107 people, including 38 chemists, eight microbiologists and one virologist. The company expects to eventually add 150 new employees.

(March 2004)

Related Link:  UL Press Release, " UL Acquires Premier Water Testing Facility" - April 12, 2001

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        Project Future - 401 East Colfax Avenue, South Bend, Indiana 46617 . Phone: (574) 234-6590 or (800) 228-8086 . Fax: (574) 236-1060