Thank You for Renewing Your Membership | August 2026

by with No Comment 1si NewsThank Your for Renewing Your Membership

One Southern Indiana would like to thank the following members for renewing their membership during the month of August 2026.

Quarter Century Club (25 years or more)Member Since
Baptist Health Floyd1968
Lee Building Products1976
First Merchants1976
Frank Stemler & Sons dba Stemler Plumbing1977
Commercial Kentucky, Inc.1988
AssuredPartners – Jeffersonville1993
Monroe Shine & Co., Inc., CPA’s1994
Community Foundation of Southern Indiana1995
Chemtrusion, Inc.1996
Renaissance Design Build, Inc.1999
  
10-24 Years 
Health Insurance by Design2003
The Falls of the Ohio Foundation, Inc.2004
Youth Link Southern Indiana2004
Mariner Wealth Advisors2005
Caesars Foundation of Floyd County2005
Highlander Point Center2006
Federal Reserve Bank of St. Louis2007
Impact Sales Systems2007
Gilda’s Club Kentuckiana2008
Stoll Keenon Ogden PLLC (aka SKO)2009
C3 Tech2009
American Beverage Marketers, Inc.2009
Stumler’s Catering2011
Fox Insurance & Investments, LLC2012
Lotus Sign & Design2012
LifeSpan Resources, Inc.2012
Angel Hands Therapeutic Massage, Inc.2014
First Financial Bank2014
River Valley Resources2016
Cornell Harbison Excavating, Inc.2016
Infinite Solutions, LLC2016
H & H Metal Products, Inc.2016
Knapheide Truck Equipment Co.2016
South Central Regional Airport Authority2016
Louisville Zoo2016
  
5-9 Years 
KFC2017
Louisville Water Co.2017
River Heritage Conservancy, Inc.2017
Volunteers of America Mid-States2017
McRae Enterprises, LLC2018
Hanover College2018
Workwell Industries2018
KCC Manufacturing2019
Idemitsu Lubricants America Corporation2020
Conrad Brothers Moving & Storage2020
Stein Law2021
Harry’s Taphouse and Kitchen2021
  
2-4 Years 
EightTwenty2022
CertaPro Painters of Kentuckiana2022
Kentuckiana Mortgage Group Inc.2022
Spectrum Reach2023
Lilys SoftWash LLC2023
Clarksville Little Theatre2023
The Kleingers Group2023
Classic Truss and Wood Components, Inc.2023
Office Resources, Inc.2023
Calming the Clutter with Jeni2024
Louisville Orchestra2024
Foundation Home Loans Inc2024
PuroClean of Southern Indiana2024
Ernstberger Orthodontics2024
Bluegrass Supply Chain2024
Airtech Heating and Cooling Services2024
Southern Indiana Dent2024
Ten20 Craft Brewery2024
  
One Year 
LifeSpring Foundation of Indiana2025
Dean Builds2025
Wiseman Door Service2025
Pinot’s Palette – Jeffersonville2025
Waypoint Strategies2025
GE Appliances, a Haier Company2025

Fed Chair Tries to Set the Record Straight

by with No Comment 1si NewsEconomic Development
Submitted by Uric Dufrene, Ph.D., Sanders Chair in Business, Indiana University Southeast
 

Back in July, the new Fed Chair, Kevin Warsh, took a beating from the markets. In one of his first appearances as head of the Fed, markets interpreted Warsh as not willing to commit to fighting inflation. He suggested that rising yields on Treasury bonds were doing some of the Fed’s work for it. Warsh’s reluctance to provide guidance on rate increases caused a whiplash in equity and bond markets.

So last week, when Warsh and others gathered in Jackson Hole, Wyoming, for the annual gathering of Fed officials, what else would one expect him to say? He had to redeem himself, and that’s what he did. He was more explicit in the Fed’s commitment to fight inflation and provided guidance that the Fed would be focused on prices. The market reaction was not that severe, suggesting that markets had approved of the purported commitment to price control.

Since that July meeting, yields on both the 10-year and 30-year Treasury bonds have remained elevated. The 10-year yield is around 4.7%, while the 30-year is above 5%. This means higher interest costs for the U.S. government and higher borrowing costs for consumers. Interest on the debt is now the third-largest item in the federal budget, behind only Social Security and Medicare, and is higher than the entire defense budget. Mortgage rates are about where they were in late July, averaging about 6.7%. The goal of Treasury Secretary Scott Bessent to bring long-term Treasury yields down is not moving in the right direction.

It will all depend on the next round of inflation readings. Both the CPI and the preferred Fed indicator, the PCE Price Index, remain above the Fed’s preferred 2% target. However, in the last three months, the CPI puts an annual rate of inflation of less than 2%. And while the labor market remains “strong,” it is showing some signs of renewed weakness. The combination puts the Fed in a tough spot. When it is all said and done, the weaker labor market, if national payrolls continue to undershoot, will take priority over inflation.

A look back shows that payroll growth was even lower in 2025. Preliminary payroll revisions were released last week, and the BLS reported that job growth for most of 2025 and early 2026 was weaker by 79,000 jobs. Had it not been for an increase of government jobs by 99,000, the picture would have been even worse. Private sector payrolls were 178,000 lower than originally reported. That means the previously stated average of 23,000 per month was even less than that.

There continues to be an emerging bright spot in the national economy, and that is manufacturing. This should come as a boon to Indiana and Kentucky. It took more than a year to work through the tariff mess, and that is one of the reasons manufacturing continues to see some pickup. Unfortunately, the latest tariff battle with Canada is not going to help, especially for states with significant trade with the country’s northern neighbor.

Odds are now pointing to a possible hike by the Fed in September. More than likely, the Fed will not move, keeping rates at the current level. Another weak labor report and CPI reports showing a meaningful decline in inflation may even bring about a cut before year end.

Caesars Foundation of Floyd County Awards First $75,000 Small Business Loan to Industrial Fitness

by with No Comment 1si News1si Press Release

[NEW ALBANY, IN.] One Southern Indiana (1si) and Caesars Foundation of Floyd County are thrilled to announce Industrial Fitness, LLC as the newest recipient of funding through the Caesars Foundation of Floyd County Small Business Revolving Loan Fund. Industrial Fitness has been awarded a $75,000 loan, marking the first $75,000 loan awarded through the program.

Industrial Fitness, owned by Scott Klink and Sam Heavrin, is a new specialized strength and performance fitness facility located at 4343 Security Parkway in New Albany. The more than 8,000-square-foot facility will focus on powerlifting, bodybuilding, strength training, personal coaching and performance-based fitness programming.

“We are incredibly grateful to the Caesars Foundation for believing in Industrial Fitness and helping us take this next step,” said Scott Klink, President of Industrial Fitness. “This has been an excellent experience, and Rachael has been wonderful in guiding us along the way. We are truly grateful for the support!

Industrial Fitness was founded by Klink and Heavrin, who brought complementary business and entrepreneurial experience to the venture. The business is designed to serve individuals seeking a more specialized fitness environment centered around serious strength training, coaching, performance development and community.

“Small businesses are at the heart of a thriving community, and we are excited to support Scott and Sam as they bring Industrial Fitness to Floyd County,” said Tyler Bliss, Executive Director of the Caesars Foundation of Floyd County. “This loan represents a significant investment in their vision and in the continued growth of our local business community. We look forward to watching Industrial Fitness grow and seeing the impact it has on the community.”

The Caesars Foundation of Floyd County Small Business Revolving Loan Fund offers loans at favorable rates to eligible Floyd County businesses. Through its program the Caesars Foundation seeks to encourage economic development and strengthen the local business community. The Industrial Fitness loan represents the largest loan awarded through the program to date and the first $75,000 loan. For more information, contact Rachael Armstrong at One Southern Indiana at (812) 206-9021 or RachaelA@1si.org.

“One Southern Indiana is proud to help connect entrepreneurs with the resources they need to turn their ideas into successful businesses,” said Lance Allison, President and CEO of One Southern Indiana. “Industrial Fitness is a great example of what can happen when business owners are willing to invest in their vision and have the right support behind them. We are grateful to the Caesars Foundation for continuing to invest in Floyd County businesses and to Rachael for helping guide entrepreneurs through this process.”

About the Caesars Foundation of Floyd County

The Caesars Foundation of Floyd County is a private foundation created to benefit the Floyd County community. The Foundation’s philanthropic focus traditionally falls into the categories of grant-making to charitable non-profit organizations, educational scholarships, and program-related investments that encourage economic development. For more visit www.caesarsfoundationfc.org.

About One Southern Indiana
One Southern Indiana 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 connections, resources, and services that help businesses innovate and thrive in the Southern Indiana / Louisville metro area. For more, visit 1si.org.

For Additional Information:

Tyler Bliss

Executive Director

Phone: 812-945-4332

Email: Tyler@CaesarsFoundationFC.org

Rachael Armstrong

Small Business Navigator

Phone: (812) 206-9021

Email: RachaelA@1si.org

Melissa Sprigler

Vice President of Strategic Partnerships

Phone: (812) 945-0266

Email: MelissaS@1si.org

Nonprofit Spotlight: Dare to Care

by with No Comment 1si NewsNonprofit Spotlight

Dare to Care Food Bank is working to end hunger throughout Kentuckiana. They partner with hundreds of food pantries, shelters, emergency kitchens, and other community organizations to provide nutritious food to individuals and families.

Beyond food distribution, Dare to Care focuses on listening to community needs, addressing barriers to food access, and advocation for policies that help create a more equitable and food-secure community. Learn more about who they are and what they do by watching the video below.

Why the Fed Is Moving Closer to a Rate Cut

by with No Comment 1si NewsEconomic Development
Submitted by Uric Dufrene, Ph.D., Sanders Chair in Business, Indiana University Southeast
 

— Despite Growing Talk of a Rate Increase

There’s been a lot of debate about whether the Fed should cut or increase interest rates. The year started with expectations that the Fed would need to cut rates several times throughout the year. Then the Iran conflict kicked off in February, causing a resumption of higher prices, especially at the gas pump.

A resurging Consumer Price Index (CPI) then shifted the discussion to why the Fed might need to increase interest rates, with several Fed officials voicing their support for rate increases. At the most recent Fed meeting, there were three dissents against the decision to leave rates unchanged, with all three supporting a rate increase.

In my last column, I suggested that the Fed should in fact hold, but that there was a chance we could see a cut by the end of this year. Based on some of the recent economic data, we are moving closer to that happening.

The last employment report showed the economy lost 23,000 jobs in July. This was a big miss, with economists expecting a sizable increase in payrolls. Even worse, May and June payroll numbers were revised downward by a combined 103,000 jobs, putting both months at an average of only 41,000 jobs.

The year started out with stronger payroll gains, with gains in three out of the first four months exceeding the payroll gain of any month in 2025. Since then, job growth has been less than impressive.

Not only have payrolls been sluggish, employment from the household survey has also been moving in the wrong direction. Employment fell in July by 87,000 and is down by around 1 million from last year. That means about 1 million fewer workers are employed than a year ago.

Part of this is due to a shrinking labor force. The nation’s labor force is down about 1.4 million from last year, and the participation rate, the percentage of the working-age population either employed or looking for work, is down almost a full percentage point from last year.

Fewer workers available makes it more difficult to create jobs. You can’t create a job if there is no worker to fill the position! A declining labor force will push employers to rely more on capital instead of labor, boosting things like productivity and profitability, both positives for the economy.

Our Mid-Year Economic Outlook back in May expected regional payrolls, particularly Louisville Metro, to pick up. This was largely due to the signals we saw in manufacturing. There was at least one positive in the last jobs report, and that was in manufacturing.

Manufacturing added 5,000 jobs across the nation. While this is not a large number, manufacturing is finally seeing a turnaround from the dismal growth of the last few years. Manufacturing payrolls are beginning to pick up, and this will come as good news for states like Indiana and Kentucky. We are not going to see massive gains in manufacturing jobs, but the region should see a pickup in employment due to activity in manufacturing.

The other reason the Fed is likely to hold at its September meeting, setting itself up for a possible cut later this year, is on the inflation front. Inflation is on the downward slope again. Prices are not declining, but the rate of change is getting smaller. Over the past three months, the headline CPI has increased by only about 0.2%. Annualized, that puts the recent pace of inflation at less than 1%. And we get the same result if we remove the cost of food and energy.

If we continue to see weak payroll growth, as we have over the past couple of months, along with continued improvement on the inflation front, the argument for keeping interest rates elevated will become increasingly difficult to make. Another weak jobs report could be enough to move the Fed from holding rates steady to cutting them before the end of the year.

Technical Resource Council Spotlight: Seth Pennington

by with No Comment 1si NewsMetro Manufacturing Alliance

For members who aren’t familiar with EOS, what is it in a nutshell—and what kind of manufacturer benefits most from it?

EOS (Entrepreneurial Operating System®) is a complete set of simple, practical tools that helps leadership teams get aligned around a clear vision, create accountability, solve issues permanently, and execute consistently.

The manufacturers who benefit most aren’t necessarily struggling financially. They’re successful companies that have reached the point where growth has become more difficult than enjoyable. They’ve hit a ceiling and know they need a better way to run the business.

 

What’s the most common issue you see when you walk into a manufacturing business for the first time?

Almost every time, I find that the business is dependent on a few key people—usually the owner.

Everyone is working incredibly hard, but there’s very little clarity around accountability, priorities, or decision-making. The leadership team spends more time reacting than leading.

The good news is that’s fixable.

 

Owner-led manufacturers often say they’re “too busy putting out fires” to work on the business itself. How does EOS address that?

That’s probably the most common thing I hear.

EOS doesn’t eliminate problems—it gives you a better way to solve them.

Instead of reacting to symptoms every day, leadership teams learn to identify root causes, solve them once, and move on. Over time, the number of fires decreases because you’re building a healthier business instead of constantly patching leaks.

 

How do you measure success with a client? What changes in 90 days versus a year?

After 90 days, I want the leadership team speaking the same language. Meetings become more productive, priorities become clearer, accountability starts improving, and the team begins solving issues with greater discipline.

After a year, the transformation is much more visible.

The company begins running on a consistent system instead of relying on heroic effort. The leadership team communicates more openly, trusts one another more, solves issues faster, and makes better decisions together. Accountability becomes clearer throughout the organization, departments work more effectively across functions, and the business gains the discipline needed to execute its vision consistently.

Welcome New Members | July 2026

by with No Comment 1si NewsWelcome New Members

One Southern Indiana welcomes the following members that joined or rejoined during the month of July 2026.

Thank You for Renewing Your Membership | July 2026

by with No Comment 1si NewsThank Your for Renewing Your Membership

One Southern Indiana would like to thank the following members for renewing their membership during the month of July 2026.

 

Quarter Century Club (25 Years or More)Member Since
Clark County REMC1976
Geo. Pfau’s Sons Company, Inc.1976
Bachman Auto Group1976
Water Tower Square1977
Goodwill of Central & Southern Indiana, Inc.1982
The Marketing Company1985
Southern Indiana Works1988
Hosparus Health of Southern Indiana1990
MAC Construction & Excavating, Inc.1992
Nimlok Kentucky1994
Taco Bell1994
Kentucky Derby Festival, Inc.1997
The Stemler Corporation2001
  
10-24 Years 
Harrison County Convention & Visitors Bureau2007
Sounds Unlimited Productions2009
Timmel Richards Stengel Law2009
Heritage Engineering, LLC2012
ProMedia Group, LLC2013
Estes Waste Solutions, LLC2014
Clark Dietz, Inc.2014
Taylor Siefker Williams Design Group2015
Church, Langdon, Lopp, Banet Law2016
Habitat for Humanity Clark & Floyd Indiana2016
J & C Technologies2016
Kaiser Home Support Services, Inc.2016
  
5-9 Years 
ProRehab Physical Therapy2017
Signature Countertops, Inc.2017
Johnson-Witkemper, Inc.2019
Post-Acute Medical (PAM) of Greater Indiana2020
Board and You Bistro2020
Clark/Floyd System of CARE & Prevent Child Abuse2021
Guerin Woods2021
  
2-4 Years 
The Dermatology Center – New Albany2022
Louisville Low Voltage LLC2022
Geoghegan Roofing2023
Ramada Inn2023
Bone Dry Roofing 2024
  
One Year 
MAS Consulting, LLC2025
Indiana Business Empowerment2025
Jacob’s Well2025
Flooring Concepts2025
WNS Security2025

From Tariffs to Tensions: Why Interest Rates Keep Changing

by with No Comment 1si NewsEconomic Development
Submitted by Uric Dufrene, Ph.D., Sanders Chair in Business, Indiana University Southeast
 

One of the beneficiaries of last year’s labor market weakness was a decline in the 10-year Treasury yield. When the economy begins to weaken, investors often shift toward the safety of U.S. Treasury securities. As demand for Treasuries rises, their prices increase and yields decline. Because the 10-year Treasury yield heavily influences mortgage rates and many consumer loans, lower Treasury yields are often followed by lower borrowing costs for households.

At the beginning of 2025, the 10-year Treasury yield had climbed to nearly 4.8%. Investors were pricing in stronger economic growth driven by expectations of deregulation and a more business-friendly policy environment. Thirty-year mortgage rates approached 7%.

Then came Liberation Day on April 2. By that point, the 10-year yield had fallen to roughly 4.0%. However, uncertainty surrounding tariffs and their potential inflationary effects quickly reversed that trend. By July 2025, the 10-year yield had climbed back toward 4.5%.

That uncertainty eventually showed up in the labor market. Hiring slowed dramatically as businesses delayed investment and expansion decisions. By year-end, 2025 had become one of the weakest years for job creation in more than two decades outside of a recession. As labor market conditions softened, the 10-year Treasury yield declined once again, falling back to around 4.0%, and mortgage rates followed. By March 2026, the average 30-year mortgage rate had eased to around 6.2%.

The conflict with Iran, which began in early 2026, quickly altered the outlook. Energy prices moved higher, pushing the Consumer Price Index upward to 4.2%. As inflation expectations increased, the 10-year Treasury yield rose to approximately 4.5% by June, while 30-year mortgage rates increased to about 6.6%.

Markets briefly received some relief following the ceasefire agreement. Treasury yields eased modestly to roughly 4.4%, and mortgage rates declined to approximately 6.4%.

More recently, renewed tensions and the breakdown of the ceasefire have pushed oil prices back toward the $100-per-barrel range. Treasury yields and mortgage rates have reversed course once again, with the 10-year Treasury yield now hitting 4.7% and 30-year mortgage rates climbing back to roughly 6.7%.

The latest inflation report, however, offered some encouraging news. Headline CPI fell 0.4% on a month-over-month basis, largely reflecting the sharp decline in energy prices following the ceasefire memorandum of understanding. The improvement was not limited to energy. Core inflation, which excludes food and energy prices, was flat for the month, while the year-over-year core CPI rate declined from 2.9% to 2.6%.

These shifting conditions have changed expectations for Federal Reserve policy. While some market participants have discussed the possibility of another rate increase, such a move appears unlikely at this point. The first half of 2026 produced stronger hiring than the exceptionally weak pace seen in 2025, but the most recent employment report was disappointing. Job growth came in well below expectations, while both employment and labor force participation declined. One month does not establish a trend, but renewed uncertainty surrounding tariffs could once again weigh on business investment and hiring.

The most recent Fed meeting was a hold, but the bond market reacted quite negatively as perceptions of Fed Chair Warsh’s commitment to fighting inflation worsened.

It is also worth noting that much of the economy’s recent strength has been concentrated in a few areas. Without continued investment in artificial intelligence and steady hiring in healthcare, overall GDP growth would have been considerably weaker, and the national conversation might be centered on job losses rather than job gains. 2nd quarter GDP out last week showed the economy softened.

Despite recent geopolitical developments and surge in bond yields, financial markets continue to expect inflation to remain relatively well contained over the longer run. Five-year market-based inflation expectations remain near 2.3%. Assuming geopolitical tensions ease and energy prices stabilize, inflation should continue moving lower, providing the Federal Reserve with additional room to leave interest rates unchanged this year. Continued masking of the economy behind AI and healthcare might even provide the Fed with ammunition for a 4th quarter cut.