Economic Update: Have Online Sales Increased?

by 1si NewsEconomic Development

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

Before we address the question, there were a few disappointing indicators out the past couple of weeks. The monthly employment report showed that the nation added 266,000 jobs. While this would be a very strong number in normal times, it was vastly under the consensus of about 1,000,000 new jobs.

Inflation also came in much higher than expected. Consensus estimates were in the 3% range, but the consumer price index came in at 4.2%, over the year. Producer prices also came in at twice the level expected. One of the negative effects of inflation is the impact on wages, adjusted for inflation. As a result, real wages declined by 3.3% in April. While this is only one month, a decline of that magnitude is staggering. We must go all the way back to 1980 to find a decline that was steeper. Higher prices do not bring about positive feelings for consumers. As a result, consumer sentiment saw a big drop.

Retail sales were also under consensus estimates, but given last month’s strong number, the flat change in retail sales did not necessarily show that the consumer was ready to close their wallets. Compared to last year however, the change is the highest on record, due to so-called “base effects”. Therefore, any indicator in April, compared to last April (during the shutdown), may be inflated. However, when we examine the change in retail sales from June 2020, which is the month when retail sales caught up with the pre-pandemic level, we see the largest increase since the early 90s.

The retail sales numbers are simply mind blowing. No doubt that the several rounds of stimulus is having an impact on consumer spending. As we have documented previously, changes in household incomes and subsequent savings rates are through the roof. March showed the largest monthly increase in personal income since the late 1950s. Not only was it the largest increase, but the change was an earth-shattering amount. March showed personal income increasing by 21%; the previous all time high was a paltry 4.6%! We see similar numbers with the savings rate. The March savings rate was 27.6%, and the previous high was 17.3%, way back in 1975.

This takes us to e-commerce retail sales. One might ask, have online sales increased relative to total sales, especially given the pandemic? Any casual observer might speculate that online sales, relative to total sales have increased. The St. Louis Fed FRED’s database tells us the opposite. Online sales, as a percent to total sales, increased early in the pandemic. From Q1 2020 to Q2 2020, online sales increased from 11.8% of total sales to 16.1%. We saw this increase because many retail outlets were closed. Consumers had no choice but to buy online. Since then, the number has been declining, and the last data point available shows that online sales as a percent of total sales came in at 14% (Q4 2020).

One of the often-cited reasons for the current labor shortage is linked to pandemic-related fears. This appears to be inconsistent with what we might expect to see with online sales. As a percent of total sales, online sales have been declining since 2020 Q2.

Economic Update: The Consumer – Goods First, Services Next

by 1si NewsEconomic Development

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

The U.S. economy is driven by the consumer, with 70% of GDP linked to consumer spending. That includes everything consumers spend on durable goods (i.e. RVs, cars, computers, furniture, etc.), non-durable goods (i.e. clothing, food and beverage for off-premise consumption, gasoline, etc.), and services (i.e. healthcare, utilities, food services, financial, recreation, transportation, etc.).

A recent report on retail sales shows that the consumer is spending like it has never in the past. March retail sales were up 9.8% from the previous month. Compared to the previous year, it was the largest increase going back to the early 90s. Although we must be careful how we interpret some of these year over year numbers now because of the deep declines experienced this time last year. That aside, the retail sales number was phenomenal.

If we examine retail sales from February 2020 (just before the bottom fell out), to now, the nation has never experienced the jump in retail sales of that magnitude (at least going back to 1992). Think about that. This takes into consideration the big fall in retail sales last year, and now the climb out of the hole. Please let me repeat for emphasis. The nation has never experienced the change in retail sales observed from February 2020 to March 2021. Since 1992, a similar jump in retail sales has never been observed! For comparison purposes, it took about 3 years to recover lost retail sales during the Great Recession. In the pandemic recession, it took 3 only months!

If we take total personal consumption spending, and divide it by goods and services, consumers typically spend around two-thirds on services and one-third on goods, plus or minus. Those numbers have seen an adjustment in the pandemic. Right now, consumers are spending about 62% on services and 38% on goods. On the goods front, the big winner has been durable goods. Think RVs, cars, furniture, home improvement. Spending on durable goods is usually about 10% of total personal spending. That number has increased to about 16% of total personal spending. Relative to historical patterns, consumers have been spending more on goods than services.

The pandemic percentages between goods and services will not persist. Patterns will normalize, and the economy will revert to 2/3rds spending on services and 1/3rd spending on goods. And not all the cash has been spent on goods. Households are flush with savings. The last report on personal income and spending showed that the savings rate increased to 27.6%. This is the second highest on record; the savings rate increased to 33% last year.

Locally, retail sales employment is down about 2,000 from last year (March 2020 to March 2021). Metro employment in the retail sector had bottomed out in 2010, and was climbing all the way until 2017, peaking at about 65,000. Since 2017, retail employment in the region had been on a gradual decline and landed at 63,000, just before the pandemic hit. Current numbers have metro retail employment at 61,000 (subject to revisions later).

Nationally, there are about 1 million job openings in both wholesale and retail trade, but about 1.3 million in both sectors remain unemployed. Like other employers, retailers are facing challenges in filling positions, and this is likely having an impact on the overall lower number for Louisville metro retail employment. We can get a hint of this by observing the number of Burning Glass job postings related to retail trade and comparing that to the approximate 2,000 retail jobs deficit. In the past 90 days, job postings in retail trade across the metro area exceed 4,000!

A consumer can only use so many computers, sofas, and automobiles. As states continue to reopen, and crowds begin to gather, the economy will see spending on services like it has never previously. The goods component of spending was the early beneficiary of the pandemic, and services will be next. Expect massive spending to flow to services that include experiences, and those that build memories. The challenge to providers will be linked to labor shortages. You may have to wait in line for that restaurant table or your favorite theme park ride.

MP Global Products, LLC Considers New Albany for New Location

by 1si News1si Press ReleaseEconomic Development

Project Could Bring More Than 50 New Jobs to Area

NEW ALBANY, IND. (April 28, 2021) Representatives of MP Global Products, LLC, a manufacturer of recycled cardboard insulation packaging products used underneath flooring, and One Southern Indiana (1si), the chamber of commerce and economic development organization for Clark and Floyd counties, announced today the company will seek local incentives from the City of New Albany for its third manufacturing facility – the first outside its home state of Nebraska.  The facility under consideration for the project is located at 890 Central Court in the New Albany North Industrial Park off Hausfeldt Lane.  Should the company decide to move forward, the project plans to open by the fourth quarter of 2021, bringing an estimated 53 new jobs to the region with wages above the Floyd County average.

“For 20 years, MP Global has been on an eco-friendly mission to take what no one wants anymore and recycle it into something that provides high performance and value,” said MP Global COO Reid Borgman.  “We are problem solvers, innovators, and an eco-aware company with environmentally friendly, high-performing products – from our patented fiber acoustic floor underlayment to our patented 100 percent curbside recyclable thermal packaging products.  We have been ‘green’ before it was even fashionable. Our success is the result of the unique contributions of all our employees and business partners and we look forward to continuing our good work in New Albany.”

The Indiana Economic Development Corporation (IEDC) offered MP Global Products, LLC, up to $500,000 in conditional tax credits based on the company’s job-creation plans. These tax credits are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired.

“As a leader in manufacturing, Indiana is excited to welcome MP Global Products to the Hoosier State,” said Interim Indiana Secretary of Commerce Jim Staton. “As the company continues building upon 20 years of success, we look forward to supporting the company’s continued growth for years to come.”

The company will seek a property tax abatement, which allows the company to phase in its increased property taxes over time.  The tax abatement offers the company an estimated savings of more than $113,000 over the next five years. The New Albany City Council is scheduled to vote on approval of the company’s local incentives next week, with the project contingent upon the council’s approval.

“On behalf of the City of New Albany, I want to congratulate MP Global Products, LLC, on their success and thank them for considering New Albany an ideal place to grow,” said Mayor Jeff Gahan.  “The City of New Albany places a high priority on attracting manufacturing and other commerce by offering favorable tax incentives and services.  We look forward to working with MP Global Products, LLC. With the help of our Redevelopment Commission, the City Council and our strong work force, I am sure we can make New Albany the place they can be proud to call home.”

1si President and CEO Wendy Dant Chesser said, “MP Global Products, LLC, would be a great addition to the regional business community, bringing more than 50 new jobs to the region.  This would result not only in increased commerce in our business community, but it also has a direct effect on the lives of the individuals who choose to work there. One Southern Indiana is looking forward to the possibility of a new location for MP Global Products, LLC, and continues to be happy to assist company leaders in achieving their immediate and future goals.”

About MP Global Products, LLC

Based out of Norfolk, Nebraska, MP Global Products has been manufacturing superior building materials since 1997. The company’s continued commitment to providing top-quality, sustainable products has afforded MP Global Products consistent growth and success in the construction industry. Today, more than ever, architects and designers specify MP Global Products materials in their residential and commercial projects.

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 provide the connections, resources and services that help businesses innovate and thrive in the Southern Indiana / Louisville metro area.

Since its inception, the organization has evolved to include a three-prong approach to serve its members and investors. Business Resources, as the chamber side of the organization, encompasses membership, signature events and programs which support and encourage business growth; Economic Development works to grow the regional economy through the attraction of new commerce and assists with retention and expansion of existing businesses; Advocacy supports businesses at the government level by engaging in the initiatives to preserve, protect and promote a business-friendly environment free of obstacles to growth and development of commerce. For more information on One Southern Indiana, visit www.1si.org.

 

Media contacts:

Deanna Summers
Marketing Specialist and Account Manager
MP Global Products, LLC
Email:  dsummers@mpglobalproducts.com
Direct: (402) 347-1065

Wendy Dant Chesser
President and CEO
One Southern Indiana
Email:   Wendy@1si.org
Office: (812) 945-0266

Economic Update: Labor Shortages and Productivity

by 1si NewsEconomic Development

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

Several recent economic releases point to an economy that continues to grow at a brisk rate. The one that really stands out from last week is new claims for unemployment. The latest data on unemployment claims show that national initial claims declined by almost 200,000 in one week. New claims came in at 576,000, clearly the lowest level since the shutdowns of last year. Pre-pandemic claims (early 2020) were in the low 200,000 range, and you must go way back to the late 60s to find initial claims for unemployment lower than 200,000. Keep in mind also that the labor force in the late 1960s was about half the size of the labor force of today.

We can see the labor crunch through some of these numbers. The nation’s labor force hit a trough in April of last year. As some states began to reopen, it climbed in a V-shape fashion until July of last year. Since last July, the size of the nation’s labor force has been stuck around 160 million, plus or minus. As initial unemployment claims continue to decline, and we see robust growth in monthly payroll gains, the labor crunch will only intensify if labor force numbers remain flat.

Last week, industrial production registered the first positive year over year change since August of 2019. How can we be producing more, but with a labor force that has been flat since last July? Employee productivity is the reason. In April of last year, the nation saw the largest increase in productivity since the 1940s! Remember that April was the month that we started seeing massive layoffs. Production did not completely come to a halt in April. Many manufacturers continued to produce and found a way to produce more with fewer employees. We are now about a year past the first economic shutdowns of last year, and some manufacturers are producing more today than a year ago (remember industrial production above). However, the labor force is stuck.

The combination of more production and a stagnant labor force means that employers may begin to see higher wage demands. Employers may be forced to increase wages to attract labor necessary to boost production. Or you could see continued gains to productivity. Employers will need to invest in labor-saving equipment and the nation will see an acceleration toward pre-pandemic trends of more automation. Higher productivity alone implies that wages should also increase. We see this play out in the data. Last year saw the highest jump in average weekly wages since the 1960s, as far back as available in the database!

Let’s see how this is playing out at the local level. Louisville Metro labor force reached a pre-pandemic high of around 685,000 in July 2018 and 2019. Due to seasonality, regional labor force peaks in July of each year. Since August of last year, the labor force for Louisville Metro has been stuck around the 650,000 level. Burning Glass data show that the number of job postings over the past 3 months is about 7,000 higher from August to October of 2020. We know that the unemployment rate is declining as the number of employed continues to increase. This mismatch between labor demand, as evidenced by the increase in job postings, and labor supply, as evidenced by a flat change in labor force, will make it increasingly difficult to find employees.

Moving forward, we will see ongoing challenges surrounding labor force availability. Putting my futuristic hat on for a moment, this will likely accelerate moves to more automation and labor-saving innovations. Productivity will increase even further. Productivity gains also occur with higher skilled employees, and the importance of talent will only intensify as we exit the Covid economy.

Indiana University Southeast Vice Chancellor Uric Dufrene headshot

Economic Update: Leisure and Hospitality

by 1si NewsEconomic Development

The Covid-19 pandemic brought about the most destructive job losses since the Great Depression. Job losses were heavily concentrated in manufacturing, healthcare, and leisure and hospitality. Last month, this column documented the state of manufacturing. Today, we look at leisure and hospitality.

Leisure and hospitality suffered the largest amount of job losses, both locally and nationally. The economic restrictions required many establishments in the leisure and hospitality sector to either shut down completely or experience a drastic reduction in revenues. Some establishments were able to pivot to online ordering and curbside pickups, but in many cases, this was not close to matching revenue levels in the pre-pandemic environment. Some firms ended up closing altogether, and others closed indefinitely.

The leisure and hospitality supersector consists of two industries: arts, entertainment, and recreation, and accommodation and food services. The sector is seasonal, with Louisville Metro employment peaking in July, and usually hitting a trough in December or January. Taking seasonality into consideration, employment in the leisure and hospitality sector is running about 15,000 to 18,000 jobs below pre-pandemic levels. These numbers are quite substantial when you consider job losses in prior recessions (the Great Recession saw just about a flat change in leisure and hospitality jobs), but a considerable improvement from the 35,000 total losses experienced last year. Overall job losses are running approximately at 36,000 compared to last year. So leisure and hospitality makes up close to 50% of total job losses.

Arts, entertainment, and recreation is down approximately 1,600 jobs (a 17% decline) in January compared to last year. In the depth of the pandemic, jobs were down approximately 7,000 jobs (a 62% decline from the previous year). The industry is quite broad, including casinos, exercise trainers, museums, ticket takers, dancers and choreographers, and musicians and singers, to name a few.

The largest industry is accommodation and food services. This includes motels and hotels and food and drinking places. In Louisville Metro, food and drinking places is the largest subsector with respect to employment. Food and drinking places employment totaled approximately 40,500 in January 2021 (down 23% from previous year), compared to 52,600 in January 2020. At the depth of the pandemic, food and drinking places were down 24,000 jobs, equivalent to a 45% reduction.

In the five counties of Southern Indiana, approximately 10,000 people were employed by food and drinking places in the first quarter of 2020; 726 were employed by accommodation. Fast forward to the 3rd quarter of 2020 (the most recent available data at the county level), we observe that 9,300 were employed by food and drinking places (a 12% decline from the previous year), and 575 by accommodation (a 23% decline from the previous year). Overall, the five counties are down 3,600 jobs 2020 Q3, compared to 2019 Q3, with leisure and hospitality making up 41% of overall job losses.

What does all this mean?

In a nutshell, the sector has made considerable progress since last April. Obviously, challenges remain, and this varies by the segment of the market an establishment serves. If an establishment relies primarily on local customers, or regional travelers, everything may be back to normal. If an establishment relies on conventions, concerts, and sporting events, the picture is entirely different.

The Year Ahead

The leisure and hospitality sector should expect to see strong growth this year. The roll out of the vaccines, continued relaxation of pandemic restrictions, and significant pent-up demand for travel and leisure experiences will all combine to produce a decent year for 2021. This does not suggest that hurdles do not remain. Until conventions, sporting events, and concerts return, some establishments will see greater obstacles than others. Labor shortages, for various reasons, can place headwinds to some of this growth (if a server is not available for a table, that table does not generate revenue).

Consumers will have the cash to spend. Additional stimulus and high levels of household savings will give consumers the resources to pursue leisure and hospitality. One of the reasons I believe Louisville Metro will recover total job losses late this year (or at least come close) is linked to the progress that will be made in leisure and hospitality.

Data sources: Indiana data: STATS Indiana Quarterly Census of Employment and Wages. Louisville Metro data on leisure and hospitality employment: FactSet. Louisville arts, entertainment and recreation and accommodation and food services: Bureau of Labor Statistics

Submitted by

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

The State of Manufacturing—a Brief Review

by 1si NewsEconomic Development

Early in the pandemic, manufacturing was one of the hardest hit sectors. A complete shutdown in the economy, work stoppages due to the nature of manufacturing floor layouts, and supply chain challenges all played a role in steep manufacturing job losses. Locked in the home with no place to go and few places to spend, and with extra cash due to government stimulus, the seeds were planted for a quick recovery in manufacturing. Consumers then began spending, and were interested in pursuing home improvements, or buying a new home altogether. Consumers bought bikes, appliances, RVs, sporting goods, and anything that would increase their comfort at home, or naturally distance themselves from others (like an RV). Will the consumer continue to drive solid manufacturing activity, or begin to pull back, perhaps resulting in a manufacturing slowdown? Growth will vary by industry, but the evidence continues to point to an overall strong recovery in manufacturing.

Layoffs and Employment
It was almost a year ago when manufacturing began to see substantial layoffs. Locally, layoffs in manufacturing exceeded all other industries. including retail, healthcare, and food and accommodation. Continued claims in manufacturing for both Floyd and Clark exceeded 1,500 at the height of the downturn. The most recent data show that continued claims hover around 150, a 10-fold decline from the peak.

Louisville area manufacturing payrolls have not fully recovered pandemic-induced losses. Manufacturing payrolls were at 82,000 at the start of 2020, and now stand at 80,000. Payrolls had declined to 62,000 in April, which also coincides with the overall bottoming of the economy. Unlike the Great Recession, the recovery has been swifter. It took 6 years to go from 62,000 payrolls to a level of 82,000 following the Great Recession. In the current recession, the region has almost recovered all job losses in a year.

Savings
Considerable challenges remain among some households. The decimation of certain industries due to lockdowns and Covid restrictions have placed uneven burdens on firms and respective employees. Overall, however, the consumer is in great shape. Sky-rocketing savings, and muted delinquency rates (consumer delinquency rates have declined during the pandemic), along with anecdotal evidence of pent-up demand suggest that manufacturing will boom the rest of the year, and into next. The most recent savings rate was at 13.7%, and this is the highest since the 1970s. During the Great Recession, savings rates had reached a high of a little more than 8%. During the Covid-19 recession, savings rates had reached an unheard level of 33%! The consumer is ready to spend even more and has the means to do so. Some of these savings will return to services (dining out, vacations), but the demand for goods is expected to continue.

Institute for Supply Management Index
The ISM Report on Manufacturing showed a deep contraction back in April, but the sector has been expanding since. An ISM reading above 50 points to expansion, and below 50 indicate contraction. The latest reading of 60 points to solid growth. If we examine the ISM coming out of prior recessions, 60 is one of the strongest numbers. One would have to go back to the recession of the early 80s to find an ISM higher than 60 upon exiting a recession.

Inventories
Inventory readings provide an indication of the potential growth pipeline in manufacturing. Excessive inventories relative to demand can spell trouble for manufacturing, but lean levels can portend solid growth. The inventory to sales ratio combines inventory levels and demand, as measured through sales, and is an indicator of upcoming manufacturing activity.

The latest reading on the inventory to sales ratio stands at 1.36 and can be interpreted as the average number of months it takes to sell off inventories. How does this 1.36 compare to previous readings? Back in April 2020, the inventory to sales ratio ballooned up to 1.66, the highest number going back to 1991. The shutdown of the nation’s economy gave consumers few places to spend money, and consequently this led to shelves that were overstocked. As we all know, this did not last long. The inventory to sales ratio then began to plummet over the past year and is now at the lowest level since 2012.

What is the significance to Louisville Metro manufacturing? The year of 2012 marked the highest year over year growth in Louisville area manufacturing since 1991. In essence, this was the “shelf-restocking” phase following the Great Recession, and the region saw very high percentage growth in manufacturing as a result. To be sure, year over year growth in manufacturing payroll growth remains negative, but in a better position than other sectors. Only two sectors are showing positive year over year growth: retail trade (surprisingly) and transportation and utilities. Low inventory levels, relative to sales, and pent-up demand from the consumer will combine to produce strong growth for area manufacturing this year.

Durable Goods Orders
Durable goods are longer lasting and have a life that exceeds 3 years. Think appliances, computers, automobiles, and machinery. As an indicator, durables goods orders provide a signal of future manufacturing activity. Prior to the pandemic, growth in durable goods was sluggish. Uncertainty around trade policy produced reluctance among manufacturers, and this showed up in an overall decline in durable goods orders from the peak of 2018 to February 2020. The pandemic then led to a massive decline in durable goods orders that bottomed out in April 2020. Since then, durable goods have been on the upswing. While levels have yet to return to the peak of 2018, durable goods are significantly higher than levels that existed following the Great Recession, and higher than levels that existed during 2012, the year that was associated with strong manufacturing employment growth for Louisville Metro.

Summary
Manufacturing suffered some of the deepest job losses, but these losses were transitory. As we begin 2021, signs are pointing to a very good year for manufacturing. Manufacturing does not hold the number of jobs it once did, `but is still one of the key sectors for the entire region. The overall positive outlook for manufacturing is one of the reasons Louisville Metro should fully recover total job losses by year end.

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

J. Knipper and Company, Inc., Announces Expansion at Charlestown, Ind., Facility

by 1si News1si Press ReleaseEconomic Development

Charlestown, Ind. (February 15, 2021) – Representatives of One Southern Indiana (1si), working in partnership with the River Ridge Development Authority and J. Knipper and Company, Inc. (Knipper), announced today the expansion of the current Knipper distribution center at 1250 Patrol Road.  The expansion of this facility will consist of an additional 150,000-square-foot of space, including a refrigerator which can hold 1,500 pallets and a drive-in freezer.  The company, which provides complete supply chain services to the U.S. pharmaceutical industry and is the largest provider of samples management services, anticipates making a capital investment of $17.4 million and increasing its workforce by 38 employees by the end of 2024.

Knipper’s CEO Mike Laferrera stated, “Our mission is to work with our clients to create solutions that are strategically designed, faithfully executed, and driven by market insight and data to ensure maximum return on our clients’ investments, and ultimately to improve people’s lives. The expansion of our Charlestown, Ind., facility will help us work toward that, and we appreciate the State of Indiana, the City of Charlestown, River Ridge Commerce Center and 1si for helping us expand to meet new demands.”

The company, which established the Charlestown distribution center in 2016, was founded in 1986, and it is headquartered in Lakewood, N.J.  Known for being an integral part of the communities in which it is located, Knipper has been awarded the Clara Barton Corporate Humanitarian Award by the American Red Cross and the Corporate Citizen of the Year award by Catholic Charities for volunteer efforts by Knipper employees.

Mayor of Charlestown, Dr. Treva Hodges, said, “On behalf of the City of Charlestown, I’d like to congratulate J. Knipper and Company on their recent announcement.  It is always great news for Charlestown when a company like Knipper announces the addition of more than 35 jobs with wages 25 percent above the Clark County average.  We wish them the best of luck and stand ready to assist in any way we can.”

The Indiana Economic Development Corporation offered Knipper up to $400,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired.

“Indiana has a legacy of life sciences excellence with companies like Knipper continuing to grow in our state,” said Indiana Secretary of Commerce Jim Schellinger. “Approximately 2,100 life sciences companies in Indiana employ 56,000 Hoosiers, and as a state, we’ll keep providing a top-ranked business environment so companies like Knipper have the confidence to invest in their Indiana operations and add high-quality career opportunities.”

Located between Charlestown and Jeffersonville, Ind., Knipper’s facility is situated in the River Ridge Commerce Center, a world-class 6,000-acre business and manufacturing park under development along the Ohio River, across from Louisville, Ky. Recently, the River Ridge Commerce Center reported increased employment, expanded development and generated an increase of $2.5 billion in economic output in 2019 alone — the largest output from the business park since it opened.

“We are ecstatic that Knipper has decided to expand and reinvest in its operations at the River Ridge Commerce Center. When the company opened at River Ridge, we knew it was the kind of innovative, growth-oriented employer that could thrive in a new home at River Ridge,” said Jerry Acy, executive director of the River Ridge Commerce Center. “The River Ridge Development Authority will continue to invest in infrastructure and amenities, so River Ridge remains an appealing location for Knipper and other firms serving the healthcare and pharmaceutical industries.”

“Five years ago, we welcomed Knipper into the Southern Indiana business community, and this will be the company’s second expansion since the initial build in 2016.  While that kind of success is due to the hard work of Knipper’s employees and forward-thinking management, we believe choosing to locate and grow within the River Ridge Commerce Center, and the State of Indiana itself, contributed to the active growth the company has experienced. As always, 1si is happy to have played a small role in this notable achievement and looks forward to working with Knipper in the future,” said 1si President and CEO Wendy Dant Chesser.

 About J. Knipper and Company, Inc.:
For 35 years, J. Knipper and Company, Inc. has been purpose-built on a strong foundation of healthcare service, support, and excellence. The largest U.S. provider of sampling distribution, Knipper also provides prescriber validation, sample accountability, web ordering solutions and third-party logistics services to the Pharmaceutical and Life Science Industries. The company has locations throughout New Jersey, Indiana, Florida, and California. For more information on J. Knipper and Company, please visit www.knipper.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 thrive in the Southern Indiana and metro area.

Since its inception, the organization has evolved to include a three-prong approach to serve its members and investors. Business Resources, as the chamber side of the organization, encompasses membership, signature events and programs which support and encourage business growth; Economic Development works to grow the regional economy through the attraction of new commerce and assists with retention and expansion of existing businesses; Advocacy supports businesses at the government level by engaging in the initiatives to preserve, protect and promote a business friendly environment free of obstacles to growth and development of commerce. For more information on One Southern Indiana, visit www.1si.org

 Media Contacts:

J. Knipper and Company, Inc.
Eric Johnson
Chief Commercial Growth Office
908.447.1047
Eric.Johnson@knipper.com 

One Southern Indiana
Suzanne Ruark
Director, Marketing and Communications
suzanner@1si.org

Multi-Color Corporation Announces Plan to Expand in Scottsburg, Ind.

by 1si News1si Press ReleaseEconomic Development

Multi-Color Corporation Announces Plan to Expand in Scottsburg, Ind.

Company Looks to Grow Operations and Workforce

Scottsburg, Ind. (February 5, 2021) – Representatives of One Southern Indiana (1si), working in support of the Scott County Economic Development Corporation, and Multi-Color Corporation, a label printing company located at 2281 South U.S. Highway 31, Scottsburg, will appear before the Scottsburg City Council on Monday, February 8, 2021, to ask for a resolution in support of tax incentives for a planned expansion. The company would like to make a capital investment of $7.7 million and increase its workforce.

Multi-Color Corporation is a leader in global label solutions with more than 103 years of experience. The company supports a number of the world’s most prominent brands including leading producers of home and personal care, wine and spirits, food and beverage, healthcare and specialty consumer products.

“The City of Scottsburg is excited about Multi-Color Corporation’s current success and the possibility of the company expanding its capabilities to accommodate this new phase of its business,” said Scottsburg Mayor Terry Amick. “The capital investment of $7.7 million in its facility here is a big win for the city and the region as a whole. We look forward to working with Multi-Color Corporation on their proposal and in the years to come.”

The Indiana Economic Development Corporation offered Multi-Color Corporation up to $425,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired.

“We’re excited to support Multi-Color Corporation’s Scottsburg expansion,” said Indiana Secretary of Commerce Jim Schellinger. “Being a global company, Multi-Color Corporation had a world of options to expand, but we’re grateful the company chose to expand its Indiana operations and create more career opportunities for Hoosiers.”

President and CEO of 1si Wendy Dant Chesser said, “1si is happy to be working in support of the Scott County Economic Development Corporation and Multi-Color Corporation on this exciting expansion. The fact the company is considering an expansion in Scottsburg is a good economic indicator for the city, county, and the region. 1si stands ready to assist in any way we can.”

About Multi-Color Corporation
A true global label solutions provider, Multi-Color Corporation is one of the largest label companies in the world in the following market segments: beverage, wine and spirits, food and dairy, personal care and beauty, home care and laundry, healthcare, durables and technical and automotive and chemicals.

Established in 1916 and headquartered near Cincinnati, Ohio, Multi-Color Corporation has grown to become one of the world’s largest and most awarded label printers today supporting the world’s most prominent brands. In 2016, Multi-Color celebrated its 100th year in business. For more information on Multi-Color Corporation, visit www.mcclabel.com.

About Scott County Economic Development Corporation
Representing Scott County, Indiana, it is the mission of the Scott County Economic Development Corporation (SCEDC) to offer the best services for thriving new and existing industries, while expanding future opportunities for Scott County residents through the jobs and benefits successful businesses and industries create. Our dedicated team is focused on helping local businesses and entrepreneurs thrive, and businesses outside of the area relocate, by providing the services they need to increase sales, add jobs and expand operations. We assist businesses with everything from keeping costs low to building or expanding multi-million-dollar facilities.

SCEDC also offers comprehensive facility location services, from initial contact through site location to future growth and expansion. In essence, we provide “one-stop shopping” for your relocation and expansion needs. For more information, visit our website at www.scottcountyin.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 thrive in the Southern Indiana and metro area.

Since its inception, the organization has evolved to include a three-prong approach to serve its members and investors. Business Resources, as the chamber side of the organization, encompasses membership, signature events and programs which support and encourage business growth; Economic Development works to grow the regional economy through the attraction of new commerce and assists with retention and expansion of existing businesses; Advocacy supports businesses at the government level by engaging in the initiatives to preserve, protect and promote a business friendly environment free of obstacles to growth and development of commerce. For more information on One Southern Indiana, visit www.1si.org.

Media Contacts:
Scott County Economic Development Corporation
Terry Amick
Mayor of Scottsburg
812.722.5039
tamick@cityofscottsburg.com

One Southern Indiana
Suzanne Ruark
Director, Marketing and Communications
812.206.9050
suzanner@1si.org

IQPack, LLC, Plans Expansion of Operations in New Albany, Ind.

by 1si News1si Press ReleaseEconomic Development

IQPack, LLC, Plans Expansion of Operations in New Albany, Ind.

Company Estimates Potential Hiring of 55 People at Four Times the Floyd County Average Wage

New Albany, Ind. (January 8, 2021) – Representatives of One Southern Indiana (1si), the chamber of commerce and economic development organization for Clark and Floyd counties, and IQPack, LLC, a packaging and supply-chain solutions company based in New Albany, Ind., will appear before the city redevelopment commission on January 12, 2021. The company has plans for an expansion of its current operations at 3000 Technology Avenue to accommodate a new two-year software development contract.

Company leaders will request consideration for incentives in the form of training reimbursement funds up to $10,000 annually for up to three years.  Should the commission offer incentives, they would be contingent upon Floyd County citizens being hired.  If approved, the $1.17-million-dollar project will require the hiring of more than 50 high-skilled employees, such as packaging engineers, supply-chain experts and software developers with an average wage approximately four times the Floyd County average hourly wage.

“There is a major need for what we do, as many e-commerce and manufacturing companies are struggling to optimize their packaging operations and shipments to support more efficient supply chains. This has been a consistent problem in the industry for generations,” said John Moore, co-Founder and director of packaging for IQPack.

“Packaging is the vital thread connecting all parts of an operation such as materials cost, handling and storage, labor productivity, transportation cube and sustainability. We bring unique expertise, a laser focus, and passion to harness the value of packaging innovation, along with the proper tools to ensure a positive impact in all these areas,” said Moore.

New Albany Mayor Jeff Gahan said, “While the Midwest is known as the manufacturing hub of the nation, the City of New Albany is also an ideal location for technology-driven companies looking for a smart, highly-skilled labor force.  The planned expansion of IQPack illustrates this point perfectly, and the City of New Albany will continue to assist the company in its efforts to grow and succeed.”

The Indiana Economic Development Corporation offered IQPack up to $1.5 million in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning the company is eligible to claim incentives once Hoosiers are hired.

“With a strong logistics industry and thriving tech ecosystem, Indiana offers companies like IQPack the perfect location to scale up their operations,” said Indiana Secretary of Commerce Jim Schellinger. “We’re excited to continue supporting IQPack’s growth in New Albany and grateful for the company’s commitment to expanding its operations and creating high-wage career opportunities in Southern Indiana.”

IQPack is known for its unique, performance-based operating model, Packaging-as-a-Service, or PaaS.  The model is anchored in industry-leading packaging solutions that drive positive effects across customers’ total cost of supply chain.  Services include comprehensive, diagnostic packaging innovation combined with a team of packaging, supply chain and logistics experts. IQPack also utilizes powerful data analytics tools through its PACKCHAIN technology, which provides key operational assessments, on-going solution management, and operational dashboards for performance tracking.

“We’re creating solutions for our customers that drive predictable and sustainable results, year after year. We utilize many key tools to ensure packaging optimization brings real value to our customers’ material spend, labor efficiency, parcel and load spend management and sustainability goals such as reducing waste, returns, and damage.” said Doug Jones, IQPack’s co-founder and chief operating officer.

“It’s time to elevate the expectations and performance of packaging across the entire industry. Packaging material costs are important, but they represent only nine percent of the total supply-chain cost for our customers. Our PaaS model also attacks the other 91 percent of costs, and it reflects very positively on the customer experience, service metrics, and profitability of large shippers,” said Moore. “This expansion is the next stage of IQPack’s evolution, and we’re excited about the possibility of doing it here in New Albany.”

John Moore founded IQPack in 2013. The company recently went through a rebranding effort which included changing the name of the company from Packaging and Logistics Solutions. The new name and brand better reflect the innovative, technology-savvy approach the company is taking.

“The expansion of IQPack would be a big win for the community and a great way to start 2021,” said 1si President and CEO Wendy Dant Chesser. “The growth and current success of this home-grown, high-tech company send a signal to other interested businesses that Southern Indiana is the right location for high-wage, high-skilled operations. We congratulate IQPack on this fantastic news and thank them for considering New Albany for these extremely desired career opportunities.”

All business inquiries for IQPack must be directed to the company’s website at www.theiqpack.com.

About IQPack, LLC

 IQPack, LLC, which was founded by John Moore as Packaging and Logistics Solutions in New Albany, Indiana, in 2013, has grown and flourished as a high-tech, packaging solutions company with a reputation for innovation and customer satisfaction. Guided by seasoned leaders of the packaging and global operations industries, our team of best-in-class packaging, logistics, and data analytics experts have a genuine passion to live our core values of integrity, innovation, customer focus, community, and family. IQPack, LLC, developed a unique “Packaging-as-a-Service,” or PaaS, model, which is designed to utilize progressive packaging optimization solutions that drive cost savings and operating efficiencies across 100-percent of our clients’ supply chains. The company is also known for PackChain, a proprietary, data analytics software platform that supports the PaaS model, providing objective analysis, broad solution features sets and a performance tracking capability for all key cost centers within our customers total supply chain operations. Given the steady growth in the company’s customer base of e-commerce and manufacturing, the team at IQPack, LLC, is focused on continuing its track record of success in meeting and exceeding the goals of its clients. For more information, visit www.theiqpack.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 thrive in the Southern Indiana and metro area.

Since its inception, the organization has evolved to include a three-prong approach to serve its members and investors. Business Resources, as the chamber side of the organization, encompasses membership, signature events and programs which support and encourage business growth; Economic Development works to grow the regional economy through the attraction of new commerce and assists with retention and expansion of existing businesses; Advocacy supports businesses at the government level by engaging in the initiatives to preserve, protect and promote a business friendly environment free of obstacles to growth and development of commerce. For more information on One Southern Indiana, visit www.1si.org

 Media Contact:

IQPack, LLC

https://theiqpack.com/contact-iqpack/

 

One Southern Indiana

Suzanne Ruark

Director, Marketing and Communications

812.206.9050

suzanner@1si.org

Survey Results: Employers Expand Efforts to Attract, Retain Talent; Update on COVID-19 Impacts

by 1si NewsEconomic Development

Employers are aggressively taking proactive steps to try and solve some of the workforce challenges that have been prevalent in recent years. The findings are illustrated in the 13th annual employer workforce survey from the Indiana Chamber and its Institute for Workforce Excellence®.

Skillful Indiana was the lead sponsor of the survey, with support from Amatrol and WGU Indiana. There were 937 responses (during a two-week period in mid-September) across a broad range of industries.

“For years, we have heard leaders in the business community lament the lack of skilled employees to meet their workforce needs,” says Indiana Chamber President and CEO Kevin Brinegar. “It appears they are now tackling the issue head-on, offering additional opportunities to attract talent for today and tomorrow.”

To view a summary of the survey, click here.