Indiana Medical Device Leaders Wary of Taxes from ACA

Gabrielle Karol of FoxBusiness.com reports on the looming taxes and fallout from the Affordable Care Act that could give some of Indiana's medical device makers big headaches. The Chamber and other business organizations continue to fight this.

In Warsaw, Indiana, known as the “Orthopedic Capital of the World,” the CEOs of medical-device companies are none too pleased with the medical-device tax imposed by ObamaCare.

In this edition of Conference Room, Iconacy CEO Tom Allen and OrthoPediatrics CEO Mark Throdahl tell FBN’s Jeff Flock that the 2.3% excise tax will have a major impact on their businesses.

“This is a tax on sales. We have no profits to pay it from, so the only way to stump up the money to pay a tax of this size is by cutting programs,” says Throdahl, whose company makes orthopedic products for children with fractures or leg or spine deformities.

Throdahl says the tax will prevent his company from growing.

“All of the engineers who surround me – their payroll is equivalent to the tax we’re now paying Washington. So we could double the size of our technical staff were it not for the medical-device tax,” says Throdahl. While Allen’s company is still in the launch phase, so the tax hasn’t yet had a major effect, he says it has hindered his ability to add staff as well.

Given that Warsaw is known for its medical-device companies, the tax could also have a profound effect on both the community and the state of Indiana.

“There are estimates that over 40,000 jobs will be impacted in the medical technology industry by the medical-device tax,” says Throdahl.

Indiana Economic Development Corp. president Eric Doden says the tax is particularly disappointing to the community given the strides made to reduce the tax burden paid by these companies.

“In Indiana, we have had a history of entrepreneurship particularly in this arena. And these are high paying jobs and the thing that sort of disappointed us as a state is that Governor Pence and the State House [have] done an incredible job of lowering taxes and trying to create a better environment for these businesses to start to grow,” says Doden. 

D.C. Fly-in Helping Hoosier Business Leaders Connect with Washington

Policy decisions taking place in Congress have a tremendous impact on Hoosier businesses. That's why Chamber representatives and Indiana business leaders embarked yesterday on the 2013 D.C. Fly-in.

Participants have the opportunity to speak with their representative and senators during a panel discussion, moderated by Gerry Dick of Inside INdiana Business, and at a sit-down dinner. Day two features visits to congressional offices to continue the dialogue. The key agenda items that will be discussed are comprehensive tax and regulatory reform, as well as principled, pragmatic immigration reform.

New this year, the Indiana Chamber is partnering with several local chambers to present a unified voice. We're grateful the Chambers from Carmel, Fort Wayne, Terre Haute, Warsaw (Kosciusko County), Southern Indiana (One Southern), Indianapolis and Evansville have joined us.

"It is important to be able to review vital issues with our congressional leaders. It is also a great opportunity to build relationships with members of Congress and their staff," explains Cam Carter, Indiana Chamber vice president of economic development and federal relations.

The Chamber would like to especially thank our D.C. Fly-in sponsors: Build Indiana Council, Duke Energy, Faegre Baker Daniels and Zimmer, Inc.

Four Company Leaders Have Plenty to Share

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.

Chambers Assisting with Rep. Todd Young Tax Reform Tour

The Indiana Chamber is delighted to partner once again with Rep. Todd Young as he tours the state, working with local chambers to communicate the need for tax reform. A release from his office has dates and more information:

As the House Ways and Means Committee and Senate Finance Committee prepare to roll out reforms to the U.S. tax code, Ways and Means Committee member and Indiana Congressman Todd Young (IN-9) announced on Friday that he will embark on a statewide tour to talk about proposed changes with local businesses. The events are being hosted by the Indiana Chamber of Commerce and local Chambers of Commerce in each area, and other members of the Indiana Congressional delegation will be on hand at some of the events.
 
“We haven’t fundamentally overhauled our tax system in a quarter of a century, and since the 1986 reforms our code has been larded up with provisions that only benefit narrow interests,” said Young. “The net effect is a tax code that is confusing, complex and difficult for individuals and small businesses to comply with. As we try to spur our economy, making the code simpler, fairer and flatter is key.”
 
While the events will be closed to the press to promote candid discussions, a media availability will be held at 1 p.m. local time after each roundtable. Local media will have the chance to talk with Rep. Young, other members of the delegation, and local businesses about what was discussed.
 
WHO: Congressman Todd Young (IN-9), the Indiana Chamber of Commerce, and local Chambers of Commerce
 
WHAT: Tax reform roundtable (closed to press) and media availability (open to press)
 
WHEN & WHERE:

Monday, August 12
Media Availability at 1 p.m. EDT
Indy Chamber
Chase Tower, 19th Floor
Indianapolis, IN
 
Wednesday, August 14
Media Availability at 1 p.m. EDT
Warsaw Kosciusko Chamber of Commerce
Mad Anthony’s Tap Room
113 E Center Street
Warsaw, IN
 
Friday, August 16 with Rep. Larry Bucshon (IN-8)
Media Availability at 1 p.m. CDT
Southwest Indiana Chamber of Commerce
318 Main Street, Suite 401
Evansville, IN
 
Monday, August 19 with Rep. Marlin Stutzman (IN-9)
Media Availability at 1 p.m. EDT
Ft. Wayne Chamber of Commerce
826 Ewing Street
Ft. Wayne, IN
 
Tuesday, August 20
Media Availability at 1 p.m. CDT
Northwest Indiana Forum
6100 Southport Road
Portage, IN
 
Wednesday, August 28
Media Availability at 1 p.m. EDT
One Southern Indiana
4100 Charlestown Road
New Albany, IN
 
Thursday, August 29
Media Availability at 1 p.m. EDT
Bloomington Chamber of Commerce
Uptown Café
102 E Kirkwood Avenue
Bloomington, IN

Eight Hoosier Organizations Earn Prestigious Governor’s Safety Awards

Lieutenant Governor Sue Ellspermann and Indiana Department of Labor Commissioner Sean M. Keefer presented Governor's Workplace Safety Awards today to eight Hoosier companies for advancing occupational safety and health in their industries.

"Dedication to a safe work environment should be an absolute goal of every Indiana employer," said Lt. Gov. Ellspermann. "I commend our award winners for successfully implementing significant health and safety practices."

The companies were honored at the 2013 Indiana Safety and Health Conference and Expo luncheon ceremony in Indianapolis. The event was presented by the Central Indiana Chapter of the American Society of Safety Engineers and the Indiana Chamber of Commerce.

"The Indiana Department of Labor is proud to recognize these organizations where the safety and health of their workforce is a top priority," said Keefer. "These organizations represent the best of the best, and Indiana is proud to honor these leading companies and their employees."

Indiana organizations were recognized in the following categories: external education and outreach, innovations, internal education and outreach, and partnerships.

The 2013 Governor's Workplace Safety Award recipients are:

  • Aisin Drivetrain, Inc., in Crothersville — internal education and outreach for a medium-sized company
  • Marmon Retail Home Improvement Products, Inc., (formally known as Cerro Wire, LLC) in Crothersville — external education and outreach
  • Cummins Seymour Engine Plant — innovations for a large-sized company
  • DePuy Synthes Joint Reconstruction in Warsaw — internal education and outreach for a large-sized company
  • Gribbins Insulation Co., Inc., in Evansville — innovations in construction
  • Lebanon Community School Corporation — partnerships for construction safety
  • Lord Corporation in Indianapolis — internal education and outreach for a small-sized company
  • PAOLI Furniture — innovations for a medium-sized company

"Safety in the workplace cannot be overrated," said Indiana Chamber President Kevin Brinegar. "When a company ensures that safety is a top priority and implements an occupational safety plan, employees, customers and the community win.

"A major benefit of a safe workplace is an efficient, profitable organization with employees who feel they are valued," added Brinegar.

The 2013 Governor's Workplace Safety Awards are a result of a partnership among government, business and safety leaders: the Indiana Department of Labor, on behalf of the governor, the Indiana Chamber of Commerce and the Central Indiana Chapter of the American Society of Safety Engineers.

Governor Mike Pence plans to further honor award recipients at their worksites in the near future.

To learn more about the Governor's Safety Awards program, visit www.in.gov/dol/2381.htm. For more information about the 2013 Indiana Safety and Health Conference and Expo, visit www.insafetyconf.com.

Team Effort for Warsaw’s Orthopedic Industry

The good news about being an orthopedic company located in Warsaw, Indiana (the orthpedic capital of the world) is that there are many talented industry employees. The bad thing about such an arrangement is that the battle to attract and keep those skillful workers can be a competitive one.

A number of Medtronic (one of the 2012 Best Places to Work in Indiana) team members have made career stops at more than one of the Warsaw organizations (big and small) in the field. And while there is competition, Roy Wiley, director of manufacturing and planning at the Medtronic operation, wanted to be sure to tout the OrthoWorx initiative.

"This is the companies getting together and realizing that to get the right type of talent base we have to collaboratively advance the opportunities around Warsaw — the cultural amenities, the schools. It has been an extremely positive development for everybody, us included. Everybody realizes we’ve got a good base (of workers) here, but if we keep stealing from each other, we won’t grow."

During a visit to Medtronic, Wiley also shared the story of a phone call that came in after 5 p.m. on a Friday about a special implant needed for a young person’s life-altering surgery early the following week. Team members, he relates, stayed beyond their normal shifts and were "excited and proud to be able to do something to help that child." That is just one of many heartwarming stories of a company focused on spinal implants.

Medtronic will be profiled in the May-June BizVoice, following the May 3 Best Places to Work in Indiana awards dinner. It’s not too late to attend that event, honoring 70 outstanding Indiana workplaces. To learn more about participating in the 2013 Best Places program, go here.

Keeping a Close Watch on Hoosier Success Stories

The BizVoice magazine team is hard at work on profiles and stories related to the 2011 Indiana Companies to Watch program. That included a Monday trip to Warsaw to conduct a roundtable discussion with the leaders of four of this year’s 43 honorees.

It’s always great to sit down and learn what makes organizations shine. Some (maybe a lot of) passion, willingness to take risks and deep caring for the people within their companies are a few of the common attributes typically seen. And Monday was no exception.

I don’t think the 2011 honorees have been officially released yet. But we gathered in Northern Indiana to bring in business leaders from Fort Wayne, South Bend, Elkhart and Rochester (thanks Sam, Bernie, Gregg and Rex). Three of the companies were formed in the last 11 years, while the fourth goes back to 1984. They may be diverse in their types of work, but similar in the good news their success means for their employees, families and communities.

Here is our 2010 Indiana Companes to Watch coverage in BizVoice. The 2011 edition will debut at the August 25 awards event.

Chamber Names Indiana’s ‘Best Buy’ Schools

Chamber officials are traveling the state today (and tomorrow) recognizing the schools that warranted our "Best Buy" label this year. See below for a description of the award and this year’s honorees (and view the full report here):

For 2009, 135 public high schools were designated as a "best buy" for giving taxpayers the most value for their money.  Two methods determined this honor. A school was named a best buy if it had a quality index above the state median and revenues below the statewide median of $10,179 per student. The second method was by having a quality index ranking that was 20% higher than the school’s revenue ranking.

In addition, from the best buy group, 26 high schools were given the "honor roll" distinction for excelling academically despite having at-risk student demographics above the statewide median. For their exemplary efforts, the top five schools from the best buy and honor roll lists were then selected as "head of the class" members.

The 2009 "head of the class" selections are:

– Adams Central High School in Monroe (Adams County);
– Forest Park Jr.-Sr. High School in Ferdinand (Dubois County);
– North Central High School in Indianapolis (Marion County);
– Northwestern High School in Kokomo (Howard County);
– Plainfield High School (Hendricks County);
– Plymouth High School (Marshall County);
– Signature School in Evansville (Vanderburgh County).
– South Adams Jr.-Sr. High School in Berne (Adams County);
– Triton Jr.-Sr. High School in Bourbon (Marshall County); and
– Warsaw Community High School (Kosciusko County).

Warsaw a Major Player on Global Commerce Scene

A new study by Indianapolis-based BioCrossroads puts some figures to what many people in northern Indiana already knew — that Warsaw’s niche as a global orthopedics hub is no joke. Inside INdiana Business has the press release:

Now generating more than $11 billion in annual revenues, the global orthopedics sector concentrated in Warsaw, Indiana, represents more than half the U. S. market share and more than one- third of the world’s market for developing orthopedic medical devices.

How does an industry — contained within a community — continue to maintain its strong economic presence and position itself for future growth? BioCrossroads, Indiana’s organization for investment, development and advancement of the state’s signature life sciences strengths, explores and outlines a series of action-oriented responses to this question in a new published report, Warsaw, Indiana: The Orthopedics Capital of the World — An overview, analysis and blueprint for future industry and community growth…

“The Warsaw orthopedics community is one of the most robust and concentrated medical equipment development sectors in the world, and a world-class economic asset that powers growth for all of Indiana,” said David Johnson, President and CEO of BioCrossroads. “The integration of all this research has resulted in a picture of an industry cluster in Warsaw, that is currently robust, respected and globally competitive. While this orthopedics device sector has been tremendously successful to date, our research and the truly global scale of this sector’s reach make it very clear that global pressures now confronting our whole economy, including all our life sciences sectors, have sparked a broadly perceived need for a community and industry engagement strategy focused on education, talent recruitment and retention, workforce and community development to ensure sustainability.

“We’re now in the process of developing a Warsaw-based, regionally focused organizational initiative that can better define and prioritize the challenges and opportunities, and then seek funding to bring the best and most responsive ideas to life,” Johnson added.

Personally, I’m working on an article for the November/December edition of BizVoice about business aviation, which will touch on how Warsaw’s airport has made the community’s climb to the top of the orthopedic world possible. Image Air Charter, an Indiana Chamber member, has had a great deal of success chartering flights for folks in that sector, showing how different companies can truly complement each other to enhance a community.