Economic Update | Strong Payroll Gains for Southern Indiana

by 1si NewsEconomic Development

By Dr. Uric Dufrene, Sanders Chair in Business Professor of Finance, Indiana University Southeast

The latest county-level payroll data are out, and it shows impressive job gains for Southern Indiana. For the second quarter of 2022, the five counties of Southern Indiana gained almost 4,000 (3,826) jobs from the previous year.   This is the largest gain since the 2nd quarter of 2021.  If we remove the outsized gains from the Covid recovery year of 2021, the latest gain would be the largest since the first quarter of 2016.   The region also showed the highest level of jobs in the history of the series, with almost 112,000 payrolls across the five counties.   The previous high occurred in the 4th quarter of 2019, with a little more than 110,000 jobs.   Average weekly wages increased by $71 from the previous year, rising to $928 for the 2nd quarter.  This represents the highest average weekly wages for a 2nd quarter time period.

Hospitality led the gains with accommodation and food services adding 1,310 jobs. The second highest change came in administrative and support and waste management, adding 853 payrolls.  This is likely due to the hiring of temporary labor services. Manufacturing also showed growth with another 729 jobs added over the year.

Nationally, the most recent unemployment claims showed a decrease from the previous week and came in substantially under the consensus expected. While the technology sector continues to report layoffs, primarily due to excessive hiring in prior years, overall layoffs remain at historic low levels. One of the reasons, but not the only reason, why the economy is now inching toward a soft landing (which could also include a mild recession) is due to the labor market situation. Claims need to be closer to 350,000 before we get close to a declared recession.

While we are not seeing a slowing economy through the eyes of the labor market, other signs continue to point to a slower economy in the year ahead. The ISM manufacturing indicator is now under 50, signaling contraction in manufacturing.  The ISM services indicator also dropped below 50, pointing to contraction in the services economy, and this decline came as a big surprise.

One is on the inflation front.  The latest CPI (Consumer Price Index) showed a decline from the previous month, and the PPI (Producer Price Index) sank month over month, declining by .5%. The 10-Treasury year yield has retreated from last year’s high of 4.2%, and the latest reading was 3.5%.  A  declining 10-year yield is not a sign of strong growth ahead, but declining yields will bring mortgage rates down, and this will be a boost to the troubled housing sector. The yield curve remains inverted, which means that shorter-term Treasury yields, such as the 2-year yield are higher than the 10-year.  An inverted yield curve developed in advance of the past 6 recessions.  The question is whether this time is different.

Adding to the slowing growth argument, retail sales declined by over 1% for December.  This decline was larger than expected, and the equity markets took this as an indicator of a slowing economy. Over several columns, however, we made the case that retail sales had to come down. The nation’s economy saw a surge in goods spending, and this was made possible through government stimulus and a large part of the service economy that had been restricted.   So, this decline was not altogether unexpected.

We are moving past the “bad news is good news” effect.  With the Fed now moving toward smaller increases in interest rates, bad news will be just that:  bad news. Weak economic reports will signal slowing growth, and the equity markets will respond accordingly.  That said, evolving financial conditions are pointing to more of a “soft landing”, and at worst, we may see a mild recession.

Economic Update | Getting Closer to a Soft Landing

by 1si NewsEconomic Development

 

By Dr. Uric Dufrene, Sanders Chair in Business Professor of Finance, Indiana University Southeast

Last Friday’s employment release was described by some as a “Goldilocks” report, and there were indeed several aspects to be excited about.  The equity markets showed approval and the Dow surged by almost 700 points.

First, the nation added another 223,000 in December. While this is still above what would be considered  “normal” expansion, payrolls showed another deceleration from the previous month.   Payroll growth is certainly declining, with the past six months showing deceleration, and the December gain was the lowest in two years.   More jobs were gained in the service sector, outpacing goods job growth by 180,000 to 40,000.

In addition to payrolls expansion, there were two other significant highlights. First, the labor force expanded by 439,000, the largest increase since August.   Gains in the labor force also occurred with solid employment gains, increasing by 714,000. An expanding labor force, along with a surge in employment, combined to reduce the unemployment rate to 3.5%.

The second piece of the report with market significance was the increase in average hourly earnings. Hourly earnings only increased by 9 cents, and this was below market estimates.   The cooling in average hourly earnings is what the market was really responding to with the surge in the Dow, S&P, and the NASDAQ.  Cooling wages is music to the Fed’s ears, and the employment report provided further evidence to market participants that 2023 will result in a less hawkish Fed.

Softening wage growth coincides with data showing that prices also continue to cool.   The last Consumer Price Index (CPI) showed annual inflation declining to a little more than 7%.    This is down from a peak of 9% back in June.  The core rate (CPI less food and fuel) is just under 6%.   To be sure, there is still room for price declines with the Fed’s preferred inflation rate at 2% annual rate.    The battle shaping up this year is between the Fed and financial markets.   Fed speakers continue to display hawkishness, advocating for additional rate increases.   The financial markets continue to price in declining rates, however.  The 10-year Treasury Yield has declined to 3.5%, down from 2022’s peak of 4.2%.    Market pricing of inflation, five years out, has declined from 2022’s peak of 3.5% down to a little more than 2%.

As we pointed out in a column back in August, data continue to point to past peak inflation.   We will continue to see price declines, and the CPI will decelerate further once housing price changes begin to take effect. Home prices are a significant component of the overall CPI, but there is a lag between actual home prices and the impact on CPI.  As softening home prices take effect on the CPI, we will likely see effects on CPI reductions.   This will then lead to rising dove voices among the Fed.

We have one month to go for metropolitan data, but it appears that Louisville Metro will have one of the best years of payroll expansion in over 30 years. Louisville is on track to gain about 30,000 jobs over the year.  Not counting the abnormal changes in 2021, this would be the highest gain on record in 30 years, and perhaps in the history of the series. Our 2022 outlook called for solid payroll gains in Louisville Metro and the record certainly points to that.

In addition to prices beginning to moderate, other signs of the economy slowing down are emerging.  The ISM manufacturing index is under 50 which means that the manufacturing sector is contracting. The big news, however, came on the services side.  The ISM services index also fell under 50.   This was the first time under 50 since April 2020, the depths of the pandemic effects on the economy.

Despite the slowdown, the labor market continues to show resilience.   Unemployment claims declined last week and are significantly under a level consistent with any recession.  Monthly payroll gains continue to run strong, and equity markets are not pricing any deep recession. In sum, the data are shaping up in such a way that a soft landing, while not necessarily ruling out a recession, maybe the eventual outcome.

Economic Update | State of the Labor Market and the Next Recession

by 1si NewsEconomic Development

Almost any article about the economy mentions the pending recession of 2023.   Some are describing 2023 as perhaps the most anticipated economic recession in history.   Despite these recession calls, the labor market remains as strong as ever.

After four consecutive increases of 75 basis points in the Fed Funds rate for the Federal Reserve, the economy continues to show labor market tightness.  The unemployment rate remains at 3.7%, one of the lowest on record. Southern Indiana’s unemployment rate is 2.5%.  Abnormally large job changes continue to show up in the monthly payrolls report, with the last report showing a gain of 263,000 jobs. Louisville Metro employment is on track to have one of its best years of job growth in the past 30, not counting the abnormal Covid-related changes of 2021.  Unemployment claims continue to run at historically low levels.  Despite some small gains in weekly claims, levels continue to fall significantly under 250,000 a week, significantly under the recession marker of 350,000 claims. The latest report shows openings of more than 10 million jobs, almost double the number of unemployed.

If a recession is to occur in 2023, we would need to observe a halt or reversal from current labor market conditions.  Monthly job changes would have to go from strongly positive to negative.  The unemployment rate would need to increase,  to perhaps over 5%, and we would also see a noticeable decline in job openings, with the number of unemployed exceeding job openings.

Another possibility is a recession, but without a significant reduction in jobs.  Some have referred to this scenario as a “jobful recession.”    The economy could enter a weaker period, but without the normal disruptions we typically observe with recessions. In my view, this is the most likely scenario.   The economy will enter slower growth, and this could be officially declared as a recession, but we are not going to see significant disruptions in the labor market.  There will be pockets of higher unemployment in certain industries, but overall conditions will remain relatively sound.

So why will there be an expected recession, with relatively fewer job losses than prior recessions?  Think about the mathematics of gross domestic product (GDP), and a process that I will refer to as normalization.  Gross domestic product consists of consumer spending, investment, government spending, and net exports (exports minus imports). The pandemic brought massive government stimulus that produced abnormal consumer and household behavior, such as selling a home in a day, or waiting 6 months for a simple refrigerator purchase.

This abnormal activity was made possible by government stimulus.  The shutdowns allowed households to amass savings, and stimulus only added to these savings.  This then produced a rise in goods spending never previously observed.  This massive surge produced all the supply chain challenges we all have come to learn about, along with the inflation that is subsiding. A CPI report is out today, and we’ll get the latest.

The economy is now in the process of entering a “normalization” phase.   That means that consumer spending will resume to levels that are more consistent with personal income, earned through wages. Given that consumer spending is the largest component of GDP, this will provide headwinds to overall growth. We will also see similar dynamics with business investment. A strong dollar will support import spending, and this will also serve as a drag on GDP.  So, normalization in the economy will lead to slower growth, with a recession being possible.  All this will occur with a labor market that does not experience severe adverse disruptions. We will likely see increases in the unemployment rate, but nothing close to the 10% range of the Great Recession.  Monthly job gains will decline, but there will be very few months with job losses.  The moderating monthly job gains will be part of the normalization process.

GIM, Inc. to Launch Investment in Scottsburg

by 1si NewsEconomic Development

Louisville-based manufacturer to invest over $18 million in southern Indiana facility

NEW ALBANY, IN. (November 14, 2022)

Southern Indiana’s manufacturing momentum continues unabated as GIM, Inc. a Network Partner of SPS Technology and a U.S. manufacturer of Sandwich Plate Systems, announces plans to invest $18,472,000 in a new manufacturing campus in the former Tokusen USA facility on West Weir Road in Scottsburg, Indiana. The company’s investment, which includes nearly $10 million in land acquisition, $3 million in new construction, $1.125 million in improvements to existing buildings, over $3 million in lease payments, and over $1.25 million in new equipment, furnishings, fixtures, hardware and software, will result in up to 135 new full-time positions paying well above the average wage in Scott County.

GIM Inc.’s Sandwich Plate System is a load-bearing structural composite panel with a high strength-to-weight ratio and extended fatigue life, which makes it an ideal replacement for concrete in bridges, parking garages, stadiums and arenas, heavy duty and clean room floor panels, and special applications such as threat protection. GIM product lines also include agricultural, commercial and industrial building steel frames and educational facilities. SPS avoids the negative environmental effects of concrete while offering time savings and reducing road shutdowns and slowdowns during bridge construction, allowing many bridge projects to go from 6 to 12 months to an install time of 45 days and less.

“This is an important strategic investment for GIM, Inc.,” said company president Chris Gibbs. “We are launching entry into a market to meet the increased demand for environmentally sound, time-saving solutions for infrastructure in the United States and beyond. The State of Indiana, the City of Scottsburg and One Southern Indiana (1si) have been fantastic partners, working hard to make this process a smooth one as we are choosing southern Indiana for our manufacturing footprint.”

Based on the company’s job creation plans, the Indiana Economic Development Corporation (IEDC) committed an investment of up to $1.9 million in GIM, Inc. through incentive-based tax credits. The tax credits are performance-based, meaning GIM, Inc. is eligible to claim incentives once Indiana residents are hired. In addition, the City of Scottsburg is offering the company personal and real property tax abatement, phasing in over five and10 years, respectively.

“Indiana’s manufacturing industry continues to lead, advancing new technologies and innovations – another example of Indiana’s strong advanced manufacturing leadership and supportive business climate,” said Indiana Secretary of Commerce Brad Chambers. “GIM Inc.’s SPS solutions offer a more sustainable solution for our world’s building and infrastructure needs, ensuring that our future is safe and environmentally friendly. We look forward to welcoming the company to Indiana and our robust manufacturing sector.”

“This is big news for the City of Scottsburg and for the region,” said Terry Amick, Mayor for the City of Scottsburg. “We’re so excited to be working with the team at GIM, Inc. as they build on their tremendous success and establish a vibrant presence in southern Indiana. This building has a great history and will serve as the perfect home for this company as it grows here in Scottsburg.”

“Southern Indiana is quickly becoming known for advanced, environmentally-sound manufacturing and technology,” said Wendy Dant Chesser, President and CEO of One Southern Indiana. “The decision by GIM, Inc. to open a facility in Scottsburg is further confirmation of the region’s growing appeal for companies like theirs. GIM, Inc.’s presence is a welcome addition to the impressive array of businesses who have already chosen to locate or expand here. As always, 1si is pleased to be a partner in this process and is ready to assist in any way we can.”

About GIM, Inc.
GIM, Inc. is a green sustainable manufacturing company founded to create and fabricate intellectual proprietary products for various industries and to provide superb structural engineering and design, with a proven network of suppliers to deliver on time. The company has developed a diverse portfolio of products to sustain the business through multiple types of economic shifts, and believes in supporting and fostering growth in the communities where they live and work. For more information, visit GIM, Inc. at gibmfg.com

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

Frankie Marrelli
Operations Officer, GIM, Inc.
Frankie@gibmfg.com
502-428-1227

IU Southeast to host annual economic outlook panel

by 1si NewsEconomic DevelopmentMember News

NEW ALBANY, Ind. (November 9, 2022) – IU Southeast will host this year’s Indiana Business Outlook Panel on Monday, Nov. 14.

This event will take place in the IU Southeast Hoosier Room. Breakfast will be served at 8 a.m. and panel presentations will begin at 9 a.m. Following the presentation, a public question-and-answer session will take place.

Esteemed IU faculty panelists, among the leading economic leaders in the state, will share their economic predictions for the upcoming year including global, national, state, city and agricultural impacts.

The following speakers will sit on the panel in New Albany:

  • Jennifer Lynn Rice, senior lecturer of business economics, Kelley School of Business, Indiana University (U.S. and International outlook)
  • Kyle Anderson, clinical assistant professor of business economics, Kelley School of Business, Indiana University (financial market outlook)
  • Phil T Powell, associate dean, clinical associate professor of business, Kelley School of Business, Indiana University (Indiana market outlook)
  • Uric Dufrene, executive vice chancellor for academic affairs, Sanders Chair in Business, IU Southeast (regional outlook)
  • David Eplion, dean, IU Southeast School of Business (moderator)

The tour begins each year in Bloomington, Indiana, at the Kelley School of Business, then travels across the state, sharing its predictions with multiple Indiana communities. Uniquely, in each community, an expert on the regional economy joins the panel, offering attendees the fullest perspective on economic affairs possible.

Tickets to the Indiana Business Outlook Panel cost $25 per person or $175 for a table of eight. Register for this event online by Friday, Nov. 11. For more information, contact Brittany Schmidt at (812) 941-2664 or britmurr@ius.edu.

###

About IU Southeast:  IU Southeast is one of seven campuses of Indiana University. Offering more than 130 degree programs and concentrations, the scenic 180-acre campus is located less than 15 minutes from downtown Louisville, Kentucky. It currently has an enrollment of more than 4,000 students and employs more than 400 faculty members. About 400 students now live on campus in five fully furnished, lodge-style residence halls. Through an agreement with the Commonwealth of Kentucky, Indiana University Southeast offers in-state tuition to students enrolled from eight counties in the Louisville region. For more information, visit www.ius.edu. IU Southeast is a tobacco-free campus.

 

Economic Update | Louisville Metro Jobs Machine and Another Inflation Super Thursday

by 1si NewsEconomic Development

By Dr. Uric Dufrene, Sanders Chair in Business Professor of Finance, Indiana University Southeast

The latest data are out at the metropolitan level, and 2022 has been a great year for the Louisville Metro area, which includes the five counties of Clark, Floyd, Harrison, Scott, and Washington counties.  As of September 2022, the region showed year-over-year gains of 30,000 jobs, representing a 4.6% change.  The 30,000 figure is the largest year-over-year change in the past 30 years, not counting the abnormally large changes that occurred as we were coming out of the Covid shutdowns.   Louisville area payrolls exceed the February 2020 level by about 10,000.  As a comparison with neighboring metro areas, Cincinnati is still down about 27,000 payrolls from February 2020, and Indianapolis added 22,500.  Both are larger metro areas, but with a smaller change in payrolls. From the Covid trough of 2020, Louisville has added 113,000 jobs.

These impressive gains were led by education and health services, adding 8,500 jobs over the year. Professional and business services added a strong 7,000 jobs, with most of these occurring in the administrative, waste, and remediation services subsector, most likely temporary labor services.  Leisure and hospitality added 6,700 jobs as the sector continues to rebuild its workforce.  Manufacturing observed the 4th highest change in payrolls, adding another 2,400. Transportation and utilities added 1,900 positions since last year, a deceleration from last year’s growth. Moving into 2023 and with an expected slowdown in the U.S. economy, we will likely see a continued deceleration in transportation.

For Southern Indiana, county payroll data come with about a 6-month lag. Labor force data are more current however, and this data series also show strong growth across Southern Indiana. The latest year-over-year changes in both the labor force and employment represent the highest changes in the past 30 years, except for the Covid-related changes of 2021.   As of August 2022, labor force and employment show year-over-year changes of approximately 6,500 respectively.   The strong growth in the labor force and employment is producing a low unemployment rate of 2.6%.

Nationally, the Bureau of Labor Statistics released the monthly jobs report last week, and the headline payroll number exceeded expectations.  The equity markets initially had a negative reaction to this “good news is bad news”. However, there were some signs of labor market softening, and markets ended the day with strong gains. One clue of potential softening came with the household survey showing that employment declined by over 300,000, and the labor force showed a small decline of 22,000.  The decline in employment produced an upward tick in the unemployment rate to 3.7%.  The latest unemployment rate is 2/10ths of a percentage point above the trough that occurred back in July.

Even though the unemployment rate increased slightly, the labor market is still very tight. The latest JOLTS (Job openings and labor turnover survey) report unexpectedly showed that nationwide openings increased, reversing the prior month’s noticeable decline.

The anticipated CPI report will be out this Thursday, and it will get widespread attention. The headline rate is expected to show another decline, but all eyes will be on the core inflation rate (CPI minus food and energy).  The last two months showed the core increasing at a pace that was more than expected.   Two reports ago, the equity markets saw a big negative response to the increase in the core rate.   Last month, however,  the market saw an initial dive and then closed higher by more than 800 points. Was this the market’s reaction to getting past peak inflation? We will see this Thursday. We will see another decline in the headline CPI rate.  If the core is less than expected, watch for a big stock market response.

Economic Update | Recession Chatter and the Consumer

by 1si NewsEconomic Development

By Dr. Uric Dufrene, Sanders Chair in Business Professor of Finance, Indiana University Southeast

Talk about an upcoming recession has been only intensifying.   A recent recession indicator at Bloomberg placed the odds of a recession at 100%, and one frequently cited recession indicator, an inverted yield curve (which means short-term Treasury yields are higher than longer-term yields) also points to a recession.   If we do believe that a recession is imminent, one question to ask is whether it will be a deep or mild recession. Given that the consumer is almost 70% of the U.S. economy, the state of the consumer will help determine the severity of any economic slowdown. If we agree with some of these recession indicators and one is imminent, it will be mild compared to previous recessions.

Not counting the Covid recession, one of the most severe recessions was the Great Recession from 2007 to 2009.   The recession originated with disruptions in the mortgage market with certain types of mortgage-backed securities and then spread to other corners of the financial markets.   The official starting date of the recession was December 2007.    One characteristic of this recession was the significant decline in household net worth. Southern Indiana did not observe the big price declines in home values, but other regions experienced significant wealth destruction due to plummeting home values. In addition to the loss of real estate wealth, households also saw big declines in stock equity values. The combination of losses through home values and the stock market led to a big drop in household net worth.  It then took another five years to fully recover the loss of net worth. This decline in household wealth caused the consumer to retrench, and consumer spending saw significant declines. It took about 4 years for retail sales to get back to pre-recession levels.

In contrast, household net worth saw a smaller drop during the Covid recession, and value was fully recovered in less than 6 months. After that initial recovery, net worth then exploded, experiencing the biggest two-year increase in the past 30 years. Recent stock market turbulence has since produced a decline in net worth, but levels are still high relative to historic numbers.

One implication of this is that households are better prepared to experience a recession. This is one of the reasons why any impending recession will only be mild.

Net worth is only one measure of consumer health, but others draw similar conclusions regarding consumer readiness for a recession. One measure is the consumer debt situation. Household debt, as a percentage of household income, has been increasing. It reached the lowest level in 30 years back in 2021 when consumers were flush with cash from government stimulus programs. Since then, household debt has been increasing. However, levels remain under pre-pandemic levels and lower than the past two recessions prior to Covid.

Even though household debt has been on the upswing, it is under control. Delinquency rates on credit cards and consumer loans remain the lowest in the past 30 years.  Delinquency rates declined during Covid and have experienced upticks this past year. Rates are still under pre-Covid delinquency rates and remain at the lowest in 30 years.

Covid saw the highest savings rates going back to the 1960s, and perhaps among the highest of all time, approaching 35% back in 2020. Consumers did not have many places to spend or enjoy services, like dining and travel. This behavior, combined with government stimulus, produced sky-high savings rates. Savings rates have come down considerably since. The savings rate is well under the level that existed at the start of Covid and is comparable to a savings rate just before the Great Recession. The difference between now and then is with the level of checkable deposits. While savings rates have come down, checkable deposits are at record levels. The additional cash that households have accumulated will serve as a buffer for any economic downturn.

With gains in home values, households are experiencing record home equity levels, but the volume of home equity loans remains at low levels.   This means that the household has unused debt capacity and will be able to tap into this wealth.  Higher mortgage rates will discourage use of home equity, but it does remain a source of cash for the household.

Another factor that supports a shallow recession is the state of the consumer due to the labor market. The unemployment rate will increase during a recession, but this is from an already low rate of 3.5%. Job openings remain at very high levels relative to the number of unemployed with 1.7 job openings available for every unemployed person.  Job openings will also come down, but openings will also soften the blow of an economic slowdown.

If we do enter a recession, the household is favorably positioned to weather the storm.  Consequently, the recession will be mild and not nearly as deep as the Great Recession of 2007.

Economic Update: Louisville Metro Jobs Surpass February 2020 Total

by 1si NewsEconomic Development

By Dr. Uric Dufrene, Sanders Chair in Business Professor of Finance, Indiana University Southeast

The latest BLS data on metropolitan jobs show that Louisville Metro payrolls have finally surpassed the level that existed in February 2020, just before the Covid shutdown of the economy. While these are preliminary estimates and subject to subsequent revisions, the data do provide a view of the regional labor economy.  The latest report indicated that the region’s labor force showed another uptick, increasing by approximately 3,000 from July to August (non-seasonally adjusted).  The increase in the labor force was accompanied by a decline in the number of unemployed, resulting in a drop in the unemployment rate to 3.1%.

Payrolls were up by 23,000 over the year representing a 3.4% increase.  Over the past 30 years, this over-the-year difference would rank among the highest. The seasonal adjustment had payrolls increasing by 22,000 over the year and about 8,000 from July to August.  Both numbers would be considered above average. Since February 2020, payrolls are up about 4,000 on a seasonally adjusted basis.

Going back to August of 2020, the biggest gainer in jobs was the professional and business services sector, adding about 15,000 jobs. We use August 2020 as a comparison due to the non-seasonality of the data.  The bulk of the job gains in professional and business services came in the Administrative and Support and Waste Management and Remediation Services industry. Leisure and hospitality added about 11,000 jobs since then, but August 2020 was also a depressed level of payrolls. Manufacturing payrolls have increased by roughly 5,000 since August 2020, and transportation and warehousing added just under 4,000.

RxLightning to Expand with Headquarters in New Albany

by 1si News1si Press ReleaseEconomic Development
Southern Indiana technology company is positioned to transform patient care in the U.S.

NEW ALBANY, IN. (September 27, 2022)

In another sign of Southern Indiana’s growing appeal to the tech industry, RxLightning, an award-winning technology company, is establishing expanded headquarters in downtown New Albany, expecting to add up to 175 new jobs over several years paying nearly twice the average wage in Floyd County.  The company will invest heavily in software, hardware, and more in a three-story historic building at 227 Pearl Street, at the corner of Market and Pearl in New Albany.

RxLightning’s platform streamlines the specialty drug enrollment process for both doctors and patients, reducing paperwork and cutting the enrollment time from weeks to hours. The digitized, single solution, which is free for providers and patients, supports more than 1,200 specialty medications, helping patients get access to the treatments they need even faster. RxLightning has been named one of the fastest growing companies in Louisville by Louisville Business First, and the company received the tech product of the year and startup of the year awards at the 2022 TechPoint Mira Awards earlier this year.
“This is an incredibly exciting move for RxLightning,” said Julia Regan, co-founder and CEO of RxLightning. Our new expanded headquarters will allow us to continue our growth and work collaboratively to accelerate the speed at which patients get access to medicine they need.  The State of Indiana, the City of New Albany and One Southern Indiana have been amazing partners in this endeavor.  We considered other locations, but we’re thrilled to remain here in southern Indiana.”

Pending approval from the Indiana Economic Development Corporation (IEDC) board of directors, the IEDC will commit an investment in RxLightning of up to $4 million in conditional tax credits based on the company’s creation plans. The tax credits are performance-based, meaning RxLightning is eligible to claim incentives once Hoosiers are hired. In addition, the City of New Albany offered RxLightning training grants totaling $120,000 equally divided over five years.

“This news represents another milestone for the city and the region,” said Jeff Gahan, Mayor of the City of New Albany. “We welcome RxLightning to our downtown as they continue to build on their success and growth.”

“RxLightning is a perfect example of how Indiana innovators are advancing the industries of the future,” said Indiana Secretary of Commerce Brad Chambers. “The company’s solutions, powered by skilled and hardworking Hoosiers, are helping patients access life-saving treatments. Indiana is a leader in medical devices and pharmaceuticals, and now we’re the ideal destination for growing health tech companies like RxLightning.”

Wendy Dant Chesser, President and CEO of One Southern Indiana said, “RxLightning CEO Julia Regan was selected last month as an Endeavor Entrepreneur through a unanimous vote at the 94th International Selection Panel (ISP) held in Greece, the first woman in the Midwest to achieve that honor.  Her company’s growth continues to be remarkable,

and her commitment to this region is a testament to the ongoing vitality of southern Indiana. As always, 1si has been delighted to be a part of this process, and looks forward to assisting in any way we can.”

About RxLightning

RxLightning was co-founded by CEO Julia Regan and CTO Brad Allen to create a world where every patient gets accelerated access to the therapies they need, through the creation of a single destination for specialty prescriptions that makes the enrollment process easy, automated and as seamless as possible.  The free-to-provider digital platform streamlines the specialty medication enrollment process in every therapeutic area to reduce paperwork, eliminate mistakes, streamline communication and accelerate the time to life-altering therapies for patients.

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 and Advocacy. For more information on One Southern Indiana, visit www.1si.org.

Contact:     

Mary Jo Wallin-Orlowski
Director of Business Retention, Expansion and Talent
maryjo@1si.org
812-945-0266

Julia Regan
Founder and CEO, RxLightning
julia@rxlightning.com
1-855-485-0579

HealthTrackRx to Expand with Site in Clarksville

by 1si News1si Press ReleaseEconomic Development

FOR IMMEDIATE RELEASE

HealthTrackRx to Expand with Site in Clarksville

Texas-based clinical laboratory plans to invest nearly $3.5 million in high-tech testing laboratory

NEW ALBANY, IN. (September 20, 2022)
Southern Indiana continues to expand its presence in the fast-growing medical technology industry as HealthTrackRx, the nation’s leading PCR laboratory, announces plans for a 10,000 sq. ft. facility at 706 East Lewis and Clark Parkway in Clarksville. In this initial facility, the Texas company projects a total capital investment of $3,463,244, which will result in up to 63 new full-time positions paying well above the average wage in Clark County, with additional expansion opportunity.

HealthTrackRx is the nation’s leading molecular PCR-based infectious disease laboratory. In a global environment threatened by growing antimicrobial resistance, rapid diagnoses matter. HealthTrackRx sets the pace for industry-leading laboratory operations through unparalleled turnaround time, yielding insights that mobilize accurate clinical decisions. With over 20 years in the clinical laboratory industry, HealthTrackRx provides services to thousands of clinicians nationwide.

“This is an important strategic investment for HealthTrackRx,” said Martin Price, CEO for the company. “As part of our commitment to delivering next day results to patients anywhere in the country, HealthTrackRx is building this new testing laboratory near UPS Worldport. The State of Indiana, the Town of Clarksville and One Southern Indiana (1si) have been terrific partners in helping us establish our presence in the region.”

Based on the company’s job creation plans, the Indiana Economic Development Corporation (IEDC) committed an investment of up to $725,000 in HealthTrackRx through incentive-based tax credits. The tax credits are performance-based, meaning HealthTrackRx is eligible to claim incentives once Indiana residents are hired. In addition, the Town of Clarksville is offering the company a five-year forgivable loan in the amount of $110,000.

“We couldn’t be more grateful that HealthTrackRx chose to grow their business in Indiana among a world of options,” said Ann Lathrop, IEDC executive vice president of global investment. “Indiana welcomes the company’s industry expertise and looks forward to supporting them as they provide high-tech, high-quality career opportunities for Hoosiers in southern Indiana.”

“This is a major milestone for the Town of Clarksville and for the region,” said Kevin Baity, Town Manager for the Town of Clarksville. “We look forward to working with the team at HealthTrackRx as they build on their success and establish a presence in southern Indiana.”

Wendy Dant Chesser, President and CEO of One Southern Indiana enthusiastically concurred, noting, “Southern Indiana is quickly becoming a hub for manufacturing and technology, including medical technology. The decision by HealthTrackRx to open a facility in Clarksville is added confirmation of the region’s appeal for companies like theirs. HealthTrackRx is a welcome addition to the impressive array of businesses who have chosen to locate or expand here. As always, 1si is delighted to be a part of this process and looks forward to assisting in any way we can.”

About HealthTrackRx
HealthTrackRx is the nation’s leading PCR-based infectious disease laboratory, delivering industry-leading testing turnaround times to healthcare providers nationwide. For more than 20 years, the company has enabled accurate clinical decisions through its testing platform, advancement in pathogen detection and identification, antimicrobial stewardship leadership, and value-based care programs. For more information, visit HealthTrackRx at healthtrackrx.com

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

Ben Favret
HealthTrackRx
ben.favret@healthtrackrx.com

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