Author Archives: Tom Schuman

Many to Fly In and Out of Dubai

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We know location, location, location applies to real estate. It also may make a new airport the busiest in the world someday.

The Dubai World Central Airport, opening in October, will serve direct flights to and from Europe, Africa, Asia, the Middle East and Australia. The analysts at Kiplinger predict 160 million annual travelers within 20 years (surpassing the 95 million who currently make Atlanta's Hartsfield-Jackson Airport the busiest. They also project Dubai passing Hong Kong for the top spot in annual air freight tonnage.

The airport price tag: $33 billion.

Interested in Business in China? Check Out this Event (and See the New BizVoice!)

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Doing Business with China is both a popular phrase these days and the title of an upcoming seminar.

The September 20 event at the Indianapolis Marriott Downtown is part of an international business briefing series presented by Faegre Baker Daniels, Deloitte and Chase. Topics for the 8 a.m.-1:30 p.m. seminar include China mergers and acquisitions, joint ventures, protecting intellectual property, banking and finance, tax planning and more.

Learn more and register.

The Chamber's September-October BizVoice magazine features two related stories. Instead of doing business in China, we focus on Africa and business prospects in the world's second largest continent. But we don't forget about China, looking at international visitors and how some Central Indiana attractions put out the welcome mat for the Chinese. You can also view the entire interactive version.

Chamber Communications Team Earns APEX Award

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The Indiana Chamber of Commerce communications team earned an APEX (Awards for Publication Excellence) Award of Excellence in a 2013 national competition conducted by Virginia-based Communications Concepts.

The winning entry was a membership advocacy video that has been used in demonstrating the Chamber’s impact on public policy and the return on investment for its members. Eight members of the Chamber board of directors from throughout the state were interviewed regarding the organization and its efforts to help produce the best possible business climate. The Chamber partnered with WFYI Productions in compiling the video.

More than 2,400 entries in a broad variety of categories were evaluated in the APEX competition. Approximately one-third earned some type of recognition.

The Chamber’s BizVoice magazine has received 63 national and state awards over the past 14 years, including the prestigious APEX Grand Award in 2012. 

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Shoppers Want Quick, Reliable Web Sites

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Mobile shoppers can be demanding shoppers. Don't believe me. Check out the results of this Harris Interactive poll.

Riverbed Technology, an application performance company, recently announced the results of one of the most extensive surveys to date on website performance and mobile shopping. According to the Riverbed-sponsored Harris Poll, once online, shoppers consult three websites on average before making a purchase and poor website performance causes the shopper to go to a competitor.

A majority of U.S. adults (68 percent) expect to shop online for gifts this upcoming holiday season. The survey found that:

  • 67 percent of shoppers said they would stop using a website if pages were loading slowly on their smart phone.
  • 29 percent of shoppers using a mobile device would buy from a brick-and-mortar store after experiencing website issues, such as slow speed and reliability.
  • 22 percent would buy from a competitor's website after experiencing website issues and 20 percent would abandon the purchase all together.

Further emphasizing the importance of a positive shopping experience, nearly three quarters (70 percent) of online shoppers would buy from a store if they had a previous positive experience even if they knew they could get the item cheaper elsewhere.

"We've just completed one of the most extensive surveys to date on website performance and online shopping behavior and how consumer decisions are influenced by factors other than price," said Jeff Pancottine, senior vice president and general manager of the application delivery business unit at Riverbed. "The results are very clear — maintaining fast website performance is increasingly important."

In order to avoid losing customers once they visit a website, Riverbed recommends making sure a website is high performance and scalable to take peak loads over the holiday season. In addition to spending time optimizing prices and shipping, ecommerce sites need to optimize their websites so shoppers do not leave because the site cannot deliver pages fast enough. It is important to measure performance and improve both website speed and performance of integration with the back office systems.

Four Company Leaders Have Plenty to Share

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Of the 90-plus BizVoice magazines we have published since kicking off this journey in 1998, nearly all have included a roundtable discussion. Getting four people together in the same room for a 90-minute conversation always proves interesting.

While most roundtables take place in our Chamber offices, I recently traveled to South Bend to meet with four of this year's 33 Indiana Companies to Watch. (The magazine debuts at the awards event on August 22). No reason for each of them to make an approximately three-hour drive to Indy when we could hit the road and accomplish our objective.

This was a very interesting group — excellent representatives of what Indiana Companies to Watch is all about. Taking part were Sportula Products (Warsaw, producer of "hamburger flippers"; you will have to read the article), Royal Excursion (Mishawaka, transportation services), StrataShops (Elkhart, online furniture) and Integrative Flavors (Michigan City, food bases and flavorings). Sportula Products and StrataShops are the newcomers (founded in 2009 and 2008, respectively), Royal Excursion recently celebrated its 15th anniversary and the history of Integrative Flavors goes back to 1938 and supplying Army rations during World War II.

The companies reflect tremendous diversity in what they do, but there are strong similarities in how they have grown and dealt with various business challenges. How is that for a vague teaser? But trust me when I say it was a very good discussion, and I believe you will enjoy the article (online on the BizVoice site and in the interactive version on August 23).

Thanks to Dave, Shannon, Georgeann and John for their participation and insights. Check out the full story in a few weeks. And congratulations to all the Indiana Companies to Watch for 2013. The upcoming issue will help tell their stories.

Everyone, Including CEOs, Needs Guidance

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CEOs don't have all the answers. And when asked, they will be the first to tell you. That is among the findings in a study conducted, in part, by Stanford University.

The highlights:

"It's lonely at the top" appears to be truer than ever, according to a new study conducted by the Center for Leadership Development and Research at Stanford University's Rock Center for Corporate Governance, and The Miles Group. Nearly two thirds of CEOs do not receive coaching or leadership advice from outside consultants or coaches, and almost half of senior executives are not receiving any either, the survey reveals.

"What's interesting is that nearly 100% of CEOs in the survey responded that they actually enjoy the process of receiving coaching and leadership advice, so there is real opportunity for companies to fill in that gap," said David F. Larcker, who led the research team and is professor of accounting and Morgan Stanley Director of the Center for Leadership Development and Research at the Stanford Graduate School of Business, in a news release.

Key findings from the survey include:

  • Shortage of advice at the top: Nearly 66% of CEOs do not receive coaching or leadership advice from outside consultants or coaches, while 100% of them stated that they are receptive to making changes based on feedback. Nearly 80% of directors said that their CEO is receptive to coaching. "If CEOs are willing to be coached and make changes based on coaching, it stands to reason that companies and boards should make this happen," said Professor Larcker.
  • CEOs are the ones looking to be coached: When asked "Whose decision was it for you to receive coaching?" 78% of CEOs said it was their own idea. Twenty-one percent said that coaching was the board chairman's idea.
  • Coaching "progress" is largely kept private: More than 60% of CEOs responded that the progress they are making in their coaching sessions is kept between themselves and their coach; only a third said that this information is shared with the board of directors. Professor Larcker adds, "Keeping the board informed of progress can improve CEO/board relations."
  • How to handle conflict ranks as highest area of concern for CEOs: When asked which is the biggest area for their own personal development, nearly 43% of CEOs rated "conflict management skills" the highest.
  • Boards eager for CEOs to improve talent development: The top two areas board directors say their CEOs need to work on are "mentoring skills/developing internal talent" and "sharing leadership/delegation skills."
  • Top areas that CEOs use coaching to improve: sharing leadership/delegation, conflict management, team building, and mentoring. Bottom of the list: motivational skills, compassion/empathy, and persuasion skills

VC Numbers Look Good in Q2

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PricewaterhouseCoopers and the National Venture Capital Association are the leaders in surveying venture capital investment deals and statistics. And the State Science & Technology Institute is the best at putting the numbers in perspective.

Below is part of the analysis from a strong second quarter of this year. Also, SSTI has a spreadsheet that breaks down investments by quarter over the past six years.

In the second quarter (Q2) of 2013, venture investment totaled $6.7 billion over 913 deals, according to the quarterly survey by PricewaterhouseCoopers (PWC) and the National Venture Capital Association (NVCA). Compared to the first quarter of 2013, the amount of venture capital investment increased 12 percent and the number of deals increased 2 percent. Although still well below venture capital investment highs in 2007, Q2 2013 had the largest total amount of investment in a year.

In total, $12.6 billion in venture investments has been made in the first half of 2013 in 1,776 deals. This represents a 3.8 percent decrease in the investment amount compared to the first half of 2012, but a slight uptick, 4 percent, in the number of deals completed.

The software and biotechnology sectors were the largest two recipients of venture capital investments. The software industry received $2.1 billion in investments, although this was a 7 percent drop from the previous quarter. Biotechnology rose 41 percent in investments to $1.3 billion in 103 deals. Other sectors receiving large totals of investments were IT ($654 million) and medical devices ($543 million).

Clean technology, which includes a range of activities across sectors, captured $364 million in 43 deals. This is a 6 percent investment decline and 31 percent deal decline, and is the lowest level since the fourth quarter of 2006.

Breaking investments down into company stage, seed and early stage companies together accounted for 57 percent of deals made, while expansion stage companies had 23 percent and later stage companies had the remaining 20 percent. Early stage companies closed on $137 million in 37 deals in Q2, while early stage companies had their highest levels of investments in six quarters.

First-time financings were also up in Q2, raising 24 percent to $1.1 billion, a 10 percent increase from Q1. The first-time financings were 17 percent of total investment amounts and 33 percent of total investment deals in the quarter.

Compared to the rather pessimistic survey from the first quarter of this year, and despite a decline in clean technology investments, this Q2 report appears to offer some optimism, with more than half of the sectors surveyed increasing in investment dollars.  In addition, a 39 percent rise to $1.9 billion was invested in “internet-specific companies” in Q2, with five of the 10 largest rounds in the quarter in the internet-specific sector. This suggests venture capitalists are looking for investment possibilities in more flexible and nimble companies with less overhead and low-capital-intensive operations.

 

 

In the second quarter (Q2) of 2013, venture investment totaled $6.7 billion over 913 deals, according to the quarterly survey by PricewaterhouseCoopers (PWC) and the National Venture Capital Association (NVCA). Compared to the first quarter of 2013, the amount of venture capital investment increased 12 percent and the number of deals increased 2 percent. Although still well below venture capital investment highs in 2007, Q2 2013 had the largest total amount of investment in a year.

In total, $12.6 billion in venture investments has been made in the first half of 2013 in 1,776 deals. This represents a 3.8 percent decrease in the investment amount compared to the first half of 2012, but a slight uptick, 4 percent, in the number of deals completed.

The software and biotechnology sectors were the largest two recipients of venture capital investments. The software industry received $2.1 billion in investments, although this was a 7 percent drop from the previous quarter. Biotechnology rose 41 percent in investments to $1.3 billion in 103 deals. Other sectors receiving large totals of investments were IT ($654 million) and medical devices ($543 million).

Clean technology, which includes a range of activities across sectors, captured $364 million in 43 deals. This is a 6 percent investment decline and 31 percent deal decline, and is the lowest level since the fourth quarter of 2006.

Breaking investments down into company stage, seed and early stage companies together accounted for 57 percent of deals made, while expansion stage companies had 23 percent and later stage companies had the remaining 20 percent. Early stage companies closed on $137 million in 37 deals in Q2, while early stage companies had their highest levels of investments in six quarters.

First-time financings were also up in Q2, raising 24 percent to $1.1 billion, a 10 percent increase from Q1. The first-time financings were 17 percent of total investment amounts and 33 percent of total investment deals in the quarter.

Compared to the rather pessimistic survey from the first quarter of this year, and despite a decline in clean technology investments, this Q2 report appears to offer some optimism, with more than half of the sectors surveyed increasing in investment dollars.  In addition, a 39 percent rise to $1.9 billion was invested in “internet-specific companies” in Q2, with five of the 10 largest rounds in the quarter in the internet-specific sector. This suggests venture capitalists are looking for investment possibilities in more flexible and nimble companies with less overhead and low-capital-intensive operations.

 

Legislators Wants to Hear From Small Business Owners

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A  22-city schedule of town hall meetings is planned for the next six weeks to give small business owners across the state the opportunity to connect with legislators who are part of the recently formed Small Business Caucus. Details are in this press release.

One-hour sessions are scheduled in each location. Representative Carlin Yoder (R-Middlebury), one of the Indiana Chamber's 2012 Government Leaders of the Year, is a co-chair of the caucus. He says, "We know small businesses are vital to Indiana's economy and provide the most jobs to working Hoosiers. … I look forward to listening and speaking with small business owners so they can help guide us in pro-small business legislation."

Event details:

  • August 8, Valparaiso, Strongbow Inn, 8 a.m. CDT
  • August 9, LaPorte, Silver Palace, 11:30 a.m. CDT
  • August 20, Seymour, Jackson Coounty Library, 12:30 p.m.
  • August 20, New Albany, Padgett, Inc., 5 p.m.
  • August 21, Columbus, Eastside Community Center, 8 a.m.
  • August 21, Greensburg, Greensburg Library, Noon
  • August 22, Fort Wayne, Georgetown Library Branch, Noon
  • August 27, Indianapols, QEPI, 8 a.m.
  • August 27, Greenfield, Hancock County Library, Noon
  • August 28, Bloomington, Monroe County Library, Noon
  • August 29, Carmel, Monon Center, 8 a.m.
  • August 29, Lafayette, Tippecanoe County Library, Noon
  • September 5, Muncie, Mursix Corporation, 8 a.m.
  • September 5, Anderson, Raine, Inc., Noon
  • September 10, Terre Haute, Indiana State University Cunningham Library, 8 a.m.
  • September 10, Vincennes, Knox County Library, Noon
  • September 11, Evansville, Ivy Tech, 8 a.m. CDT
  • September 11, Washington, Washington Public Library, Noon
  • September 17, Kokomo, Indiana University-Kokomo Kelly Center, 8 a.m.
  • September 17, Rochester, Rochester Public Library, Noon
  • September 18, South Bend, Ivy Tech, 8 a.m.
  • September 18, Elkhart, Elkhart Public Library, Noon

 

 

Taking the Certificate Route

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Certificate programs are all the rage (that's a good thing) in higher education. IndianaSkills.com, a part of the Chamber's Ready Indiana initiative, has data and more on the effort to close the skills gap in our state. For a broader perspective on certificates, the Wall Street Journal recently offered the following:

Increasingly crucial to the community colleges that have long catered to students who pursue two-year degrees or get basic credits before attending four-year schools, certificate programs not only cost less on average than a year at college but they also bring higher salaries than those received by job candidates with high school diplomas.

  • Certificate programs are the fastest-growing segment of higher education, drawing younger and older students alike.
  • From 2001 to 2011, the number of certificates of one year or less awarded by public community colleges more than doubled to about 249,000 from about 106,000.
  • Overall, associate degrees at public community colleges increased over the same period, but at a slower rate — from about 443,000 to about 682,000.

The growing interest in certificates follows years of skepticism about noncredit programs, as some observers saw them as gimmicks that had little value beyond the paper they were printed on, while degrees were often regarded as guaranteed pathways to jobs.

The average annual cost of certificate programs is $6,780 at a public community college and $19,635 at a for-profit college. The push toward certificates highlights a growing emphasis on efficiency and completion rates in higher education, an approach that has gained particular traction since President Barack Obama's call for an additional 5 million graduates from community colleges by 2020.

 

Americans Say ‘Yes’ to Keystone XL

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If public sentiment is a factor in the Obama admistration's final decision on the Keystone XL pipeline, it's time to let the oil flow. The latest survey results are consistent with previous polls, except that the numbers in support continue to grow to even higher levels.

The United Technologies/National Journal survey says:

While the Obama administration mulls whether to approve the controversial Keystone XL pipeline, Americans are already decided. They support the project by a wide margin, prioritizing potential economic benefits over possible environmental consequences.

The poll finds that more than two-thirds of respondents, 67 percent, support building the pipeline to carry Canadian oil to refineries on the U.S. Gulf Coast; that includes 56 percent of Democrats. Less than a quarter of Americans, 24 percent, oppose the project, the poll shows.

The State Department is evaluating the proposal, and President Obama said last month that the pipeline should not be permitted if it leads to a significant increase in greenhouse-gas emissions. There is no timeline for a decision, but the State Department says it is evaluating the project in "a rigorous, transparent, and efficient manner."

In the question posed by interviewers, poll respondents were told that Keystone supporters "say it will ease America's dependence on Mideast oil and create jobs," while opponents "fear the environmental impact" of building the pipeline.

Congressional Republicans have been prodding the administration to approve Keystone, with the GOP House holding a symbolic vote in support of the pipeline in May. (That measure won unanimous support from Republicans, save for one member who voted "present," while 19 Democrats also voted in favor.)