One Southern Indiana would like to welcome the following members that joined or rejoined during the month of May, 2023.
—Soft landing confidence growing
submitted by
Uric Dufrene, Ph.D., Interim Executive Vice Chancellor for Academic Affairs, Sanders Chair in Business, Indiana University Southeast
The BLS released the monthly employment report last Friday, and the headline number surpassed all expectations. The jobs report showed that the economy gained 339,000 jobs in May. The consensus estimate was under 200,000. For the past couple of years, a “good news” report was usually met with a swift negative reaction in the equity markets. “Good news” from economic indicators provided additional justification for the Fed in hiking interest rates. Conversely, “bad news” was often met with positive reactions in the equity markets. In this case, equity markets were overwhelmingly positive, with the Dow finishing up more than 2% for the day.
However, the report did have some evidence supporting a possible Fed pause in June. The unemployment rate increased by 3/10ths of a point, jumping from 3.4% to 3.7%. Unemployment rolls swelled by 440,000, and the labor force saw an additional 130,000. So, the household survey supported the argument of continued softening in labor markets. This was not a recession marker necessarily, but additional data in support of a continued slowing of employment growth. Another piece supportive of a rate pause at the next Fed meeting came with the earnings data. Average hourly earnings declined by a tenth of a point from April, and the May number was slightly under consensus. Recent Fed speakers also signaled a pause for the June meeting. The CME Fed Watch Tool is currently showing about a 75% probability of a pause for the June meeting. So, the combination of robust job growth, and concomitantly, with an eventual softening of labor markets and wages, resulted in the breakout market reaction.
Job openings had been declining the past several months, but the last Job Openings and Labor Turnover Survey showed a reversal in this trend. The report showed that openings increased back to over 10 million, and 625,000 more than the number expected. This tightness also shows up in unemployment claims, with numbers showing no significant acceleration in claims.
The BLS released the last quarter of 2022 county level employment data, and Southern Indiana continues to see steady payroll growth. Almost 4,000 jobs were gained compared to the previous year, marking seven consecutive quarters of payroll growth. Excluding the large change in jobs that appeared in 2021 due to base effects, this last quarter of 2022 is the second highest level of payroll growth since the negative Covid-induced job changes.
Leading the way was accommodation and food services, gaining more than 1,500 jobs. This industry has fully recovered with respect to payrolls levels, and jobs now exceed the number that existed just prior to Covid by more than 1,000. Health care and social services added 1,200 jobs, followed by solid growth in manufacturing of 450. The region did see a decline in average weekly wages, the first decline since 2017. This decline is likely due to the large increase in accommodation and food services for the quarter. Accommodation and food services is about one half of overall average weekly wages. So, a big pick up in accommodation and food services will bring the overall average down.
How can we put all this in a nutshell? The economy continues to show resilience. We are not in a recession, and more confidence is setting in that there will be no recession this year. Everything is not that rosy. Indicators are still pointing to some slowing in the economy, but it looks like any slowdown will be quite shallow. For what it’s worth, my economic outlook from this past November expected a recession in the last quarter of 2023 or the first half of 2024. Confidence is growing that any recession is pushed back to 2024, and a soft landing is looking better and better.
A Free Concert with Family Activities at America Place in Jeffersonville, Indiana on July 6th
Jasteka Cultural Center has enlisted the Louisville Orchestra as the entertainment for an outdoor festival on the grounds of America Place’s corporate headquarters at 101 Logistics Avenue in Jeffersonville, Indiana. The concert on Thursday, July 6. Family activities will take place from 5:30 – 7:30 pm with the Louisville Orchestra concert commencing at 8:00 pm. A blanket or lawn chairs are recommended to fully enjoy the twilight concert experience.
The concert will contain familiar light classics and pops musical selections, always a crowd-pleaser for outdoor summer concerts. But this is the Louisville Orchestra and in keeping with the mission of Jasteka Cultural Center, audiences can also expect to discover some delightfully innovative new music on the program – two pieces by LO Creators Corps composers, Tyler Taylor and TJ Cole.
The family atmosphere and fun will be complete with bouncy castles, obstacle courses, games, walkabout performers, face painters, balloon sculptors, a fun photo area, snow cones, cotton candy, and food trucks where attendees can purchase some of the area’s most delicious cuisine and drinks, including alcoholic beverages. The event will also feature Louisville City FC, which will have a station that includes interactive games, juggling, and an inflatable human foosball game.
Jeffersonville Mayor Mike Moore says of the plans for such events, “I’m thankful to America Place and the Jasteka Cultural Center for their proactive support to our community. Their employee engagement and emphasis on improving the quality of life for all of us is very much appreciated.”
Jasteka was founded by Jim and Irene Karp, who have maintained a strong dedication to arts, education, and the underserved through a lifetime of supporting cultural institutions. Their philanthropic activities include active service on numerous boards and civic communities that reinforce their commitment to equity, inclusion, and opportunity for all.
The America Place complex at River Ridge is comprised of 1.5 million sq. ft. of building space set across 160 acres. July’s concert will take place adjacent to the award-winning Gallery Building. The Karps worked with world renowned architect Kulapat Yantrasast to design a space that would “allow people, culture, and places to thrive.”
The Jasteka Cultural Center will be offering free public programming throughout the year, utilizing the Gallery for community involvement, education, and outreach. The Louisville Orchestra concert is the first of many programs that will be offered over the next months.
The Louisville Orchestra’s Chief Executive Graham Parker notes, “We are delighted to be a part of this concert event sponsored by the Jasteka Cultural Center. This organization’s mission aligns perfectly with that of the LO – to make the arts and music available, accessible, and inclusive to and for the public. And who doesn’t love an outdoor festival concert in the summer that you can enjoy with the whole family?”
The concert event is free, but registration and tickets are required to attend. Tickets can be obtained at my.louisvilleorchestra.org. Further information can be acquired by calling the orchestra office at (502) 587-8681.
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About The Louisville Orchestra:
Established in 1937 through the combined efforts of Louisville mayor Charles Farnsley and conductor Robert Whitney, the Louisville Orchestra is a cornerstone of the Louisville arts community. With the launch of First Edition Recordings in 1947, it became the first American orchestra to own a recording label. Six years later it received a Rockefeller grant of $500,000 to commission, record, and premiere music by living composers, thereby earning a place on the international circuit. In 2001, the Louisville Orchestra received the Leonard Bernstein Award for Excellence in Educational Programming, presented annually to a North American orchestra.
Continuing its commitment to new music, the Louisville Orchestra has earned 19 ASCAP awards for Adventurous Programming of Contemporary Music and was also awarded large grants from the Aaron Copland Fund for Music and the National Endowment for the Arts, both for the purpose of producing, manufacturing and marketing its historic First Edition Recordings collections. Over the years, the orchestra has performed for prestigious events at the White House, Kennedy Center, Carnegie Hall, and on tour in Mexico City, and their last two albums for the Decca Gold label, All In (2017) and The Order of Nature (2019) – the latter launched with an appearance on The Tonight Show Starring Jimmy Fallon – both topped the Billboard Classical and Crossover charts. The feature-length, Gramophone Award-winning documentary Music Makes a City (2010) chronicles the Louisville Orchestra’s founding years, and in spring 2018, Teddy Abrams and the orchestra were
profiled on the popular television program CBS Sunday Morning.
One Southern Indiana’s Microloan Program Facilitates Change in Ownership of Chapman Funeral Home.
[Clarksville, Indiana] May 31, 2023- One Southern Indiana (1si) is pleased to announce the successful approval of a new loan through The ONE Fund Loan Program. This loan will support the purchase of Chapman Funeral Home, the only funeral home in Clarksville.Established in 1951, Chapman Funeral Home has shown dedication to providing compassionate services, offering families a personalized and enduring tribute for their loved ones. Todd Watts, the new owner, expressed his gratitude for the loan, stating, “This additional working capital has empowered me to expand my business and better serve our community.”
Town of Clarksville officials express their strong support for The ONE Fund Loan Program and its contribution to the local business community. Clarksville Town Manager Kevin Baity stated, “We are proud to partner with 1si in their efforts to bolster small businesses in our area. Funding for The ONE Fund comes from partnerships with local municipalities committed to the growth and success of our local small businesses, and to help them thrive in Clarksville. We believe in the power of entrepreneurship and the positive impact it has on our community’s economic development.”
Rachael Armstrong, Small Business Navigator at 1si and the Indiana Small Business Development Center, also shared her enthusiasm for Chapman Funeral Home’s growth and the positive impact of The ONE Fund Loan Program on local businesses. She stated, “We are thrilled to witness Chapman Funeral Home’s commitment to expanding its services for the community. At 1si, our objective is to continue supporting local business start-ups and growth opportunities. The loan extended to Chapman Funeral Home exemplifies the program’s success in helping small businesses achieve their goals.”
About The One Fund
The ONE Fund was created by One Southern Indiana in 2022 to provide small business owners in the Indiana counties of Clark, Floyd, Jefferson, Scott, and Washington with the capital required for start-up and growth initiatives. The Fund provides microloans to small businesses as their “lender of last resort” in order to support small businesses as they work toward stability and bankability. For more, visit www.1si.org/funding.
About Chapman Funeral Home
The caring and experienced professionals at Chapman Funeral Home are here to support you through this difficult time. We offer a range of personalized services to suit your family’s wishes and requirements. You can count on us to help you plan a personal, lasting tribute to your loved one. And we’ll carefully guide you through the many decisions that must be made during this challenging time.
For Additional Information:
Wendy Dant Chesser
President and CEO
Phone: (812) 945-0266
Email: wendy@1si.org
Todd Watts
Owner, Chapman Funeral Home
Phone: (812) 283-7110
Email: chapmanfuneralhome47129@gmail.com
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The event will be held this Sunday at 2:00 pm at the Veterans Place Memorial
CLARKSVILLE, IN (May 23, 2023) – This July will mark 70 years since the Korean War Armistice Agreement was signed ending that major United States conflict in 1953. That will be the theme of this year’s Memorial Day Ceremony sponsored by the Town of Clarksville. The annual event is held each year at the Veterans Place Memorial behind Clarksville’s Town Hall. This year’s event will be held this Sunday, May 28th at 2:00 pm.
The event will feature the Clarksville Police Honor Guard, live patriotic music, vocalists, and the reading of the names of our fallen heroes. As part of this year’s theme, visitors will also hear the story of Chaplain Herman Felhoelter, a military chaplain who was born in Louisville, KY. Felhoelter served with the 19th Infantry Regiment during the Korean War. On July 16, 1950, Felhoelter was north of Taejon helping a group carry 30 wounded Soldiers. They came under attack and when it became apparent they could not endure the enemy assault. Felhoelter convinced the medical officer to lead all able Soldiers to safety while he remained with the wounded and dying. They were soon attacked and killed. Felhoelter, who posthumously received the Distinguished Service Cross, was the first Chaplain Corps casualty in Korea.
This special event is open to the public, and everyone is welcome to attend. Following the Memorial Day ceremony, Clarksville Scout Troop 4010 will be holding a flag retirement ceremony, and residents are encouraged to bring any American flags which need to be honorably retired. Veterans Place Memorial is located behind Clarksville Town Hall at 2000 Broadway Street in Clarksville.
Click here to download the program.
Project leaders reporting several close calls with workers and equipment.
CLARKSVILLE, IN (May 24, 2023) – When the Town of Clarksville announced that a large section of Blackiston Mill Road would be closing to thru traffic for construction, the plan was to keep the road accessible to make it easier for residents living in the work area. That is about to change due safety concerns caused by reckless drivers.
There will be a hard closure on both ends of the construction zone beginning Tuesday, May 30th, which means no thru traffic will be able to access the construction zone. Those who need to access homes and businesses within the limits of the barricades will have to utilize the roadway connecting Blackiston Bowl to the backside of Peddler’s Mall. Public Works Director Brad Cummings says the change needs to be made due to safety issues caused by drivers.
“We didn’t go with a hard closure in the beginning in order to make it easier for residents to access their homes and businesses,” said Cummings. “Unfortunately, many drivers continued to use Blackiston Mill Road as a cut through rather than using the posted detour.”
Not only were drivers still using Blackiston Mill Road as a cut through, Cummings says drivers have also been moving recklessly through the construction zone nearly hitting equipment and construction workers.
“There have been several close calls prompting complaints from the construction crews,” said Cummings.
Crews are working to add sidewalks, a new turning lane into the Peddler’s Mall entrance, new sight lines for motorists, and improved drainage for stormwater runoff. The closure of Blackiston Mill Road is scheduled through November 20th.
Visionary leader wanted for development of ‘blank canvas’ in South Clarksville.
CLARKSVILLE, IN (May 25, 2023) – When it comes to local municipal government, there are very few positions as vital as that of the Economic Development Director. Along with the Town Manager, the Economic Development Director is the driving force behind the growth and development of the community.
Although there are many such positions available across the Hoosier state, none could be more exciting than the newly available position with the Town of Clarksville. The thriving southern Indiana community has been without a development leader since the resignation of Nic Langford in August 2022.
“Some may wonder why it has taken so long for us to begin the search for a replacement,” said Communications Director Ken Conklin. “The reason is that we wanted to look at how we could change the department to make it more efficient and productive for the residents of Clarksville.”
Town leaders took extra time to craft a plan for moving forward, first with the hiring of a new Economic Development Director, then the addition of a Capital Projects Manager in the weeks to come. They also wanted to create a financial and benefits package that would be attractive to potential candidates.
“There is a lot of competition for quality candidates, but the Town of Clarksville has a benefits package that is second to none,” said Conklin. “Candidates will be blown away during the interview process of what we have to offer.”
Another enticing challenge for candidates will be to lead the development of South Clarksville. The Town of Clarksville has been working for years on a plan to create a new downtown district with multi-use developments, luxury apartments, restaurants, hotels, and possibly a convention center.
“This is an extremely exciting time to be a part of the Town of Clarksville team, and we are looking forward to finding the right candidate to lead the way,” said Conklin.
Clarksville will be accepting applications for the new Economic Development Director position through Monday, June 5th. Interested applicants can find an extensive job description at www.townofclarksville.com/employment.
submitted by
Uric Dufrene, Ph.D., Interim Executive Vice Chancellor for Academic Affairs, Sanders Chair in Business, Indiana University Southeast
The one indicator that was moving toward the recession camp was unemployment claims. The Labor Department releases new unemployment claims every Thursday morning at 8:30 a.m. and claims had been inching higher the past several months. New claims hit a bottom of 182,000 in September 2022 and climbed to 264,000 in early May 2023. Last Thursday, the report showed that claims for unemployment dropped to 242,000. This was support to the soft-landing crowd and bear market investors were likely not pleased. Levels need to be closer to 350,000 for the declaration of a recession. This is not a rule; only observation from historical patterns. Claims could potentially see a rapid climb, but that is unlikely. Consequently, as we mentioned in the last column, a recession in 2023 is getting increasingly unlikely.
The Bureau of Labor Statistics also released the monthly report on state employment and unemployment last week, and Indiana gained 15,800 jobs in April, one of the largest increases among the 50 states. On a year-to-date basis, Indiana has added 38,000 jobs. In the past three recessions, Indiana saw a precipitous decline in payrolls. During 2023 however, jobs have been added at an increasing rate. Professional and business services, education and health services, and leisure and hospitality were responsible for a significant amount of the payrolls gains. The state’s unemployment rate declined to 3%. Kentucky saw an addition of 7,000 jobs and an unemployment rate decline to 3.7%.
We have more information on inflation since the last column. The CPI declined to 4.9%, still above the Fed preferred range of 2%. The core inflation rate (CPI minus food and energy) came in at 5.5%, suggesting more stickiness in the core rate, which is of greater interest to the Fed. The CPI came in a little less than expected, and the NASDAQ approved with a significant gain for the day. The CPI coming in a little less than expected suggested a pause in Fed hikes for the next meeting, a more favorable condition for growth-oriented stocks. The produce price index (PPI) was released a day after CPI, and it also showed additional slowing of producer inflation. The annual rate declined to 2.3% and was under the expected rate of 2.5%. These two series are highly correlated and historically do not move counter to the other. With a PPI of 2.3%, we can expect CPI to continue the downward trend.
And now for the bad news. The Federal Reserve released the results of the Senior Loan Officer Opinion Survey. The results show a clear tightening of credit standards for consumer and commercial and industrial loans. Along with credit tightening, the results also revealed softening loan demand. When you place this data in a graph, you see a significant increase in credit tightening and a significant decrease in loan demand. Such a graphic pattern is usually followed by a recession. So, as the recession continues to be pushed back further, the senior loan officer opinion survey supported the notion that one will likely occur. To be continued…
The Indiana Broadband Offices is holding a county stakeholder engagement session on May 24th from 3:30 – 4:30 p.m. at the Pine View Government Center Assembly Room, 2524 Corydon Pike, in New Albany, IN. To RSVP for this event, click here.
PURPOSE
The National Telecommunications and Information Administration (NTIA) is an agency of the United States Department of Commerce responsible for overseeing the Broadband Equity, Access, and Deployment (BEAD) Program, which provides $42.45 billion to expand high-speed internet access across the country. The Program requires Indiana to submit a Five-Year Plan detailing the current state of broadband in Indiana, the State’s vision of broadband, and how the State plans to execute this vision.
The team writing the Five-Year Plan is conducting 18 in-person visioning sessions across the State. Indiana is diverse in many ways, and every community has distinct needs. The purpose of these sessions is to adequately understand and address the barriers to broadband deployment and unique community challenges.
The visioning sessions are being hosted by the Indiana Broadband Office (IBO). The IBO, led by Deputy Director Earnie Holtrey and State Infrastructure & Broadband Administrator Steve Cox, assists Hoosiers in need of affordable and reliable broadband connectivity. The IBO has done extensive work to provide broadband to Hoosiers wherever they need it – at home, work, and school – and strives to continue their work until every last Hoosier is connected. The IBO is currently engaged with Guidehouse, a private consulting firm, to complete this Five-Year Plan.
For more details, click here to download an informational flyer.
NEW ALBANY, IN (May 15, 2023) Southern Indiana continues to build on its momentum in the logistics industry, as Bluegrass Supply Chain Services, LLC and Bridgeport Partners REIG, LLC announce plans for a new facility at 1205 Bridgeport Drive in Jeffersonville, Indiana. The Bowling Green, Kentucky-based companies plan to invest $15,931,000 in the new facility, along with an additional investment of $835,000 in machinery and equipment. The new facility will add up to 25 new employees at an average hourly wage of $27.22, which is above the average hourly wage for Clark County, Indiana.
“We’re extremely excited to bring this new, state-of-the-art logistics center to Jeffersonville,” said John Higgins, CEO of Bluegrass Supply Chain Services, LLC and Bridgeport Partners REIG, LLC. “Supply chain management, logistics, and advanced innovation plays a critical role in the economic health and vibrancy of our country. This new facility positions us to combine the best of breed technology with integrated solutions to continue playing a key part in this vital area. We appreciate all the efforts made from the State of Indiana, the City of Jeffersonville, and One Southern Indiana to help us expand our footprint and our workforce with job wages at or above the Clark County average.”
The company was approved for over $1.3 million in tax abatements from the City of Jeffersonville, including $1,299,680 in real estate taxes over the next five years, and $11,693 in personal property taxes over the same period, as approved by the Jeffersonville City Council during its May 1 meeting. The Indiana Economic Development Corporation (IEDC) is supporting this project by expanding their existing 2018 incentives to incorporate this additional investment in Indiana.
“We’re thrilled to partner with Bluegrass Supply Chain Services on this project,” said Jeffersonville Mayor Mike Moore. “It’s yet another example of Jeffersonville’s vibrant business climate, and further evidence of our quality resident workforce in the area which supports economic growth across our region. We look forward to assisting in any way we can to bring this exciting project to fruition.”
Wendy Dant Chesser, President and CEO of One Southern Indiana said, “This is wonderful news for Jeffersonville and Southern Indiana. We continue to attract dynamic companies at the forefront of their industries, and with their focus on innovation, technology and continuous improvement in logistics, Bluegrass Supply Chain Services is certainly no exception. 1si is delighted to be a part of this process, and we look forward to watching their progress.”
About Bluegrass Supply Chain Services
Bluegrass Supply Chain Services offers a full suite of value-added warehousing services and transportation management solutions to enhance operational efficiency. By offering expanded capabilities and capacity, reducing time touch and travel, and improving on-time performance, they help companies expand their customer base, venture into new markets, and create positive consumer experiences, so they can focus on core business and becoming more competent, and competitive, in the market.
About One Southern Indiana
One Southern Indiana (1si) was formed in July of 2006 as the economic development organization and chamber of commerce serving Clark and Floyd counties. 1si’s mission is to help businesses innovate and thrive in the Southern Indiana / Louisville metro area via the three pillars of Business Resources, Economic Development and Advocacy. For more information on One Southern Indiana, visit www.1si.org.
Contact:
Wendy Dant Chesser
President & CEO, One Southern Indiana
Wendy@1si.org
812.945.0266
John Higgins
CEO
Bluegrass Supply Chain Services, LLC
Bridgeport Partners REIG, LLC
jhiggins@bsc3pl.com
270.535.7010