Input Manufacturing

When you are raising money for your company, a private placement memorandum (PPM) can be used to provide information to potential investors to help them evaluate the merits of an investment in your company.  It is intended to disclose material information to potential investors about the securities you are selling, your company and its business, in particular, the risk factors associated with an investment in your company.  A PPM is not always required for full legal compliance with securities regulations, but it is a useful way to show that you provided all material information to investors.  Generally, each PPM will include a business plan, risk factors, a description of how you intend to use the proceeds of the offering, a capitalization table and a description of the closing process for the investment.

However, there is no "one size fits all" PPM.  They will vary according to the company's size, industry, development stage, offering size and other factors.  Therefore, it is important that a company offering securities retain competent legal counsel to assist with preparing the PPM and conducting the offering.

Business Plan

The business plan section lets you educate potential investors about your company's strengths and weaknesses.  This section should describe the products and services offered by your company, the needs of the market place, the risks which may be posed by actual and potential competitors, your strategic plans with respect to innovation, marketing and financing, and the overall business environment in which your company will operate during the term of the investment.  In most cases, the business plan section is drafted by you and reviewed by legal counsel.  One of the major purposes of legal counsel's review is to ensure that the PPM, taken as a whole, is not misleading to potential investors.

Risk Factors

The risk factors section of the PPM is a specific description of some of the risks that may be associated with your company, the industry and the particular terms of the offering.  If well drafted, the risk factors section can provide useful protection against some potential claims by investors.  Although the actual risk factors for your company will depend on your company's specific business and activities, there are some fairly standard disclosures found in most PPMs.  For example, a "development stage" company will likely include in its PPM the following as risk factors:  lack of revenue, losses and financing requirements, product development risks, technological risks, manufacturing and distribution risks, dependence on key employees, competition, regulatory risks, potential inability to exercise a redemption right, dilution, no market for shares, and difficulty of determining an appropriate offering price.  The company should also include any other risks relevant to its particular business.

Use of Proceeds

The PPM should include a section that describes how you intend to use the proceeds of the offering.  Naturally, you will want to retain some flexibility regarding the use of the funds, but the investors will likely require at least a general breakdown of uses.  The use of proceeds section might list product development, acquisition of new technologies, facilities expansion, hiring of new employees or general working capital requirements as possible applications of the proceeds.  The key to this section is to strike the delicate balance between flexibility for your company and certainty for the investor.

Capitalization

The capitalization section describes the capital structure of your company.  The capitalization section should include a capitalization table which will allow a potential investor to determine how much of the company he will own (or how much of the company's debt he will own).  The capitalization table should reflect both the actual debt and shareholders' equity of the company prior to the offering, as well as the adjusted figures reflecting the completion of the offering on the terms contemplated in the PPM.

Closing Process

The closing process or subscription procedure (as some refer to it) can be foreign and confusing for investors.  Therefore, it is helpful to provide investors some guidance in the PPM regarding how the closing will proceed.  You can require that a minimum amount of money be raised before you will proceed with the offering.  If that is the case, the PPM should disclose the minimum aggregate capital commitments. After any applicable minimum is met, qualified investors generally have to complete and return a subscription agreement which obligates them to buy the securities, along with a check for the amount of the purchase price (payment may also be made by wire transfer), by a date specified in the subscription agreement.  Sometimes the subscription agreement is included with the PPM.

The investor may also be required to complete and return an "accredited investor" questionnaire to allow the company to comply with certain exemptions from the securities laws.  If required, the questionnaire is typically attached to the subscription agreement. 

After the company has received all signed documentation and funds, it should provide the investor signed counterparts of the documentation.  The company may also provide the investor share or unit certificates or promissory notes, if applicable, and signed copies of the company's governing documents.  If the company is making the private offering pursuant to certain registration exemptions, after the closing it may need to file various documents, including Form Ds and U-2 Uniform Consents to Service of Process, with the state and federal authorities where the investors are located.

President Obama set out his priorities regarding his vision of a clean energy future. In a press release prior to meetings with "clean energy entrepreneurs and leaders of the research community" the president stated that it was time to make investments in cutting-edge research that will establish the foundation for America's future economic prosperity. The press release included the follwoing:

FACT SHEET: INVESTING IN OUR CLEAN ENERGY FUTURE

Today, President Obama will meet with clean energy entrepreneurs and leaders of the research community to discuss his strategy for building a clean energy economy and creating the industries and jobs of the future.

The American Recovery and Reinvestment Act (ARRA) and his FY10 budget dramatically increase investment in cutting-edge research, the development and deployment of clean energy technologies, and incentives for private sector research and development (R&D).  These investments will establish the foundation for America’s future economic prosperity, reduce our dependence on foreign oil, and help combat climate change.

The ARRA includes $39 billion in energy investments at the Department of Energy and $20 billion in tax incentives for clean energy, including:

• The creation of an advanced research agency for energy, modeled after the Defense Advanced Research Projects Agency which developed the Internet.
• Support for Energy Frontier Research Centers, which could lead to breakthroughs in energy storage, super-efficient engines, and solar cells as cheap as paint.
• Supporting U.S. manufacturing of advanced batteries needed for plug-in hybrids, renewable energy backup, and other applications.
• $1.2 billon for research infrastructure for the Department of Energy’s national labs, which is being announced by Secretary of Energy Steven Chu today at Brookhaven National Laboratory. 

The  president’s 10-year budget also proposes almost $75 billion to make the Research and Experimentation Tax Credit permanent, stimulating private-sector investment in R&D and keeping the U.S. economy at the cutting-edge of 21st century technologies:

• Studies have shown that every dollar of tax benefit stimulates as much as an additional dollar of private R&D spending in the short term and two dollars in the long term.  Every one dollar of R&D adds two dollars of benefit to our economy and society as a whole.
• Two-thirds of benefits of the credit are attributable to salaries of U.S. workers performing U.S.-based research, and the credit stimulates R&D spending by more than 11,000 small, medium and large firms.
• The credit has been extended 13 times with some extensions lasting just six months, and has also been allowed to lapse for almost a year - undermining its effectiveness because companies can't count on it. 

Several of the technologies in the program today will be on display, highlighting the importance of R&D investment in building a clean energy economy, including:

• Orion Energy "Apollo Light Pipe:" The Apollo Light Pipe collects and focuses sunlight, bringing natural light indoors without consuming electricity and replacing traditional lighting for large portions of the day.  Coca-Cola and Sysco have installed this system, saving enough energy to power over 500 homes for a year.
• Solyndra Solar Panel: Solyndra is the first recipient of the DOE Loan Guarantee recovery program, announced last week.  Their solar panel is a unique cylindrical design that maximizes direct sunlight and absorption. 

The program will highlight success stories from R&D investments in the lab to job creation. Paul Holland, the vice chairman of the board and lead investor for Serious Materials, will introduce the president and share the story of Serious Materials, the leading energy-saving building materials company in the U.S.

• Serious Materials has four plants in California, Colorado, Pennsylvania, and plans to reopen the old Republic Windows plant in Chicago this Spring.
• Earlier this month, Serious Materials re-opened a previously shuttered plant in Pennsylvania, and is hiring back over 100 union workers in the next couple of months.
• Serious Materials’ products exceed current Energy Star standards by up to 400 percent and can reduce heating and cooling energy costs by up to 50 percent.  Five percent of U.S. energy use is lapsed through inefficient window glass.

President Obama set out his priorities regarding his vision of a clean energy future. In a press release prior to meetings with "clean energy entrepreneurs and leaders of the research community" the president stated that it was time to make investments in cutting-edge research that will establish the foundation for America's future economic prosperity. The press release included the follwoing:

FACT SHEET: INVESTING IN OUR CLEAN ENERGY FUTURE

Today, President Obama will meet with clean energy entrepreneurs and leaders of the research community to discuss his strategy for building a clean energy economy and creating the industries and jobs of the future.

The American Recovery and Reinvestment Act (ARRA) and his FY10 budget dramatically increase investment in cutting-edge research, the development and deployment of clean energy technologies, and incentives for private sector research and development (R&D).  These investments will establish the foundation for America’s future economic prosperity, reduce our dependence on foreign oil, and help combat climate change.

The ARRA includes $39 billion in energy investments at the Department of Energy and $20 billion in tax incentives for clean energy, including:

• The creation of an advanced research agency for energy, modeled after the Defense Advanced Research Projects Agency which developed the Internet.
• Support for Energy Frontier Research Centers, which could lead to breakthroughs in energy storage, super-efficient engines, and solar cells as cheap as paint.
• Supporting U.S. manufacturing of advanced batteries needed for plug-in hybrids, renewable energy backup, and other applications.
• $1.2 billon for research infrastructure for the Department of Energy’s national labs, which is being announced by Secretary of Energy Steven Chu today at Brookhaven National Laboratory. 

The  president’s 10-year budget also proposes almost $75 billion to make the Research and Experimentation Tax Credit permanent, stimulating private-sector investment in R&D and keeping the U.S. economy at the cutting-edge of 21st century technologies:

• Studies have shown that every dollar of tax benefit stimulates as much as an additional dollar of private R&D spending in the short term and two dollars in the long term.  Every one dollar of R&D adds two dollars of benefit to our economy and society as a whole.
• Two-thirds of benefits of the credit are attributable to salaries of U.S. workers performing U.S.-based research, and the credit stimulates R&D spending by more than 11,000 small, medium and large firms.
• The credit has been extended 13 times with some extensions lasting just six months, and has also been allowed to lapse for almost a year - undermining its effectiveness because companies can't count on it. 

Several of the technologies in the program today will be on display, highlighting the importance of R&D investment in building a clean energy economy, including:

• Orion Energy "Apollo Light Pipe:" The Apollo Light Pipe collects and focuses sunlight, bringing natural light indoors without consuming electricity and replacing traditional lighting for large portions of the day.  Coca-Cola and Sysco have installed this system, saving enough energy to power over 500 homes for a year.
• Solyndra Solar Panel: Solyndra is the first recipient of the DOE Loan Guarantee recovery program, announced last week.  Their solar panel is a unique cylindrical design that maximizes direct sunlight and absorption. 

The program will highlight success stories from R&D investments in the lab to job creation. Paul Holland, the vice chairman of the board and lead investor for Serious Materials, will introduce the president and share the story of Serious Materials, the leading energy-saving building materials company in the U.S.

• Serious Materials has four plants in California, Colorado, Pennsylvania, and plans to reopen the old Republic Windows plant in Chicago this Spring.
• Earlier this month, Serious Materials re-opened a previously shuttered plant in Pennsylvania, and is hiring back over 100 union workers in the next couple of months.
• Serious Materials’ products exceed current Energy Star standards by up to 400 percent and can reduce heating and cooling energy costs by up to 50 percent.  Five percent of U.S. energy use is lapsed through inefficient window glass.

The stimulus bill modifies several federal tax laws affecting tax-exempt bonds including creating a two percent safe harbor and creating a new type of tax-credit bond called Build America Bonds.  Recovery zone economic development bonds and manufacturing bonds and a number of other bond provisions are outlined in the stimulus bill.

Read more about the impact on municipal finance.

Blog written by Paul Jones.

Congress is in the process of passing economic recovery legislation that would (if enacted) expand existing, and establish new, tax incentive programs to further those goals.  Specifically, the American Recovery and Reinvestment Tax Act (the Act) contains several provisions that would provide expanded or additional sources of funds for green projects.  If enacted in its current form, the Act would, among other things:

• Establish a 30% credit for investment in facilities that manufacture advanced energy property;
• Extend Code Section 45 renewable energy production tax credits by increasing the placed in service date for three years (through 2012 for wind and 2013 for other qualified facilities);
• Allow temporary election to claim 30% investment credit under Code Section 48 in lieu of the Code Section 45 production tax credit; and
• Expand the volume for Clean Renewable Energy Bonds (CREBs); and
• Expand the volume for the recently established Qualified Energy Conservation Bonds (QECBs), which like CREBs, are tax credit bonds.

The Act contains several other provisions, including those that would expand the New Markets Tax Credit program, revise certain tax-exempt bond limitations, and provide relief for cancellation of debt income.

Read the full text of an Ice Miller alert which contains more details on the points above.

According to the summary of the American Recovery and Reinvestment Bill by the Committee on Appropriations (Obey, D-WI, Chair) action, and action now, is needed to pull the economy out of a "crisis not seen since the Great Depression." The bill contains targeted efforts to have clean, efficient American energy, summarized by the Committee as:

CREATE JOBS WITH CLEAN, EFFICIENT, AMERICAN ENERGY
To put people back to work today and reduce our dependence on foreign oil tomorrow, we will make investments aimed at doubling renewable energy production and renovate public buildings to make them more energy efficient. America’s energy shortcomings present a huge opportunity to put people to work in ways that will transform our economy.

• Reliable, Efficient Electricity Grid: $11 billion for research and development, pilot projects and federal matching funds for the Smart Grid Investment Program to modernize the electricity grid making it more efficient, secure and reliable and build new power lines to transmit clean, renewable energy from sources throughout the nation.
• Renewable Energy Loan Guarantees: $8 billion for loans for renewable energy power generation and transmission projects.
• U.S. General Services Administration (GSA) Federal Buildings: $6.7 billion for renovations and repairs to federal buildings including at least $6 billion focused on increasing energy efficiency and conservation. Projects are selected based on GSA’s ready-to-go priority list.
• Local Government Energy Efficiency Block Grants: $6.9 billion to help state and local governments make investments that make them more energy efficient and reduce carbon emissions.
• Energy Efficiency Housing Retrofits: $2.5 billion for a new program to upgrade HUD sponsored low-income housing to increase energy efficiency, including new insulation, windows and furnaces. Funds will be competitively awarded.
• Energy Efficiency and Renewable Energy Research: $2 billion for energy efficiency and renewable energy research, development, demonstration, and deployment activities to foster energy independence, reduce carbon emissions and cut utility bills. Funds are awarded on a competitive basis to universities, companies and national laboratories.
• Advanced Battery Loans and Grants: $2 billion for the Advanced Battery Loan Guarantee and Grants Program, to support U.S. manufacturers of advanced vehicle batteries and battery systems. America should lead the world in transforming the way automobiles are powered.
• Energy Efficiency Grants and Loans for Institutions: $1.5 billion for energy sustainability and efficiency grants and loans to help school districts, institutes of higher education, local governments and municipal utilities implement projects that will make them more energy efficient.
• Home Weatherization: $6.2 billion to help low-income families reduce their energy costs by weatherizing their homes and make our country more energy efficient.
• Smart Appliances: $300 million to provide consumers with rebates for buying energy efficient Energy Star products to replace old appliances, which will lower energy bills.
• GSA Federal Fleet: $600 million to replace older vehicles owned by the federal government with alternative fuel automobiles that will save on fuel costs and reduce carbon emissions.
• Electric Transportation: $200 million for a new grant program to encourage electric vehicle technologies.
• Cleaning Fossil Energy: $2.4 billion for carbon capture and sequestration technology demonstration projects. This funding will provide valuable information necessary to reduce the amount of carbon dioxide emitted into the atmosphere from industrial facilities and fossil fuel power plants.
• Department of Defense Research: $350 million for research into using renewable energy to power weapons systems and military bases.
• Alternative Buses and Trucks: $400 million to help state and local governments purchase efficient alternative fuel vehicles to reduce fuel costs and carbon emissions.
• Industrial Energy Efficiency: $500 million for energy efficient manufacturing demonstration projects.
• Diesel Emissions Reduction: $300 million for grants and loans to state and local governments for projects that reduce diesel emissions, benefiting public health and reducing global warming. This includes technologies to retrofit emission exhaust systems on school buses, replace engines and vehicles, and establish anti-idling programs. 70% of the funds go to competitive grants and 30% funds grants to states with approved programs. Last year EPA was able to fund only 27% of the applications received.

See the entire Committee on Appropriations summary. We'll all be watching Congress as they consider the bill in the next few weeks and its environmental and green provisions. Stay tuned for action!

Tina Vujovich is the Vice President, Marketing & Environmental Policy at Cummins Inc.

Getting large organizations working toward a common initiative is not an easy task.  The habit to keep doing what we have always been doing is much easier than figuring out how to do things in a different way.  However, there is great power in alignment.  In fact, I am certain that at large companies it is the only way to make major changes, and moving to a more energy efficient operation is one of those big initiatives  which requires alignment.

Alignment starts at the top.  As much as we would like to think that grass roots, bottom up efforts at a new initiative are successful, there is nothing like having the top of the organization on board.  But "on board" does not mean a tacit approval of the initiative.  It means a very active, visible and supportive behavior.  At Cummins, this happens only after a strong business case for the initiative is established.

Cummins jumped with both feet into the environmental energy efficiency initiative about two years ago.  We decided that the debates on Climate Change and greenhouse gases were over, and if nothing were done with the consumption of fossil fuels and the production of GHG the world as we know it will change markedly, and thus sustainability of Companies such as our own would diminish.  So, we made the leap and made a commitment to the USEPA Climate Leaders Program.  We committed to reduce greenhouses gas intensity by 25% from 2005 to 2010.

The business case for Cummins was an obvious one.  For our facilities -- over 250 of them worldwide -- our efforts to get them more energy efficient would result in lower utility costs!  For our products -- the majority of which are involved in producing power -- our efforts to improve energy efficiency translates to lower operating costs for our customers!  Once we had our top management convinced of the business case, their energy went quickly from challenging the initiative to putting their unwavering support behind it.

Aligning the organization was the next step.  Cummins has long held that our ability to design, develop and manufacture products for an environmentally regulated market is a capability with a worldwide competitive advantage.  All of our employees know well our mission statement which says that we "demand that everything we do leads to a cleaner, healthier and safer environment."  Moving the organization to the next environmental frontier of greenhouse gas control and energy efficiency was easy -- particularly when it comes with a payback to our bottom line and to our customers.  Important to note is that not all projects in this initiative gets implemented.  Every project must pass our financial hurdles.  In other words, if the payback is not reasonable, the project is not done.  But the interest in succeeding in this initiative has caused us to get very creative and industrious in the projects so that they do produce a satisfactory payback.

Now, about one and a half years into our six year commitment we are well over half way to our Climate Leaders goal.

With regard to our products, we are just as aggressive about energy efficiency.  Even before definitive legislation is structured, we are already developing plans for significant fuel efficiency gains from our products.

At Cummins, we have found that the secret to a successful environmental energy efficiency initiative was all about having the right mission, articulating a clear business case, and getting the alignment of the organization behind the initiative.  It has worked well for us, and we expect to continue this effort long after our Climate Leader's goal is met.

Only in that way can we expect to sustain ourselves in this very competitive and energy consuming environment.

Steve Corwell is the Senior Vice President of Corporate Affairs for IPL.

All of us desire to breathe cleaner air, and indeed, as a result of modifications that Indiana utilities have made to electricity generating facilities over the past several years, customers are benefiting from cleaner air, but at a cost.  In the case of IPL alone, over the past five years, we have spent over $400 million on the installation of emission reduction equipment, reducing sulfur dioxide (SO2), nitrous oxide (NOx) and Mercury (Hg) by approximately 97 percent, 90 percent, and 40 percent, respectively.

As we face potentially significant green house gas regulation in Washington, available mitigation technologies are more limited and therefore, achieving meaningful targets will be expensive. Coupled with these costs, further, more restrictive, NOx, SO2 and Hg regulations are likely, and many utilities are, or soon will be, embarking on the next major power plant construction program to meet their customers' growing needs for electricity. At the same time, the cost of Indiana spot coal has risen more than 75 percent in the last six months, as that coal is more and more influenced by world coal demand.

As we look to comply with the increasing costs of cleaner air, it will be important that we educate customers about both the benefits and costs of cleaner air and our increasing demands for electricity. Through education, we will be able to help our customers understand that clean air has a price and a proper balance must be found.

By Paul M. Jones, Jr. 

After a friendly hour of networking, Gerry Dick quickly got to work with the group that had assembled to discuss “going green in Indiana.”  Based on the topics discussed, the color “green,” though at times prevalent, was not the only color harkened in one’s imagination.  Grey, black, brown, white and blue were colors often more reflective of the imagery as the discussion raced from the blank pavement surfacing the entire Indianapolis landscape when looking out across the city from several floors up in an office tower to the coal which predominantly powers our state.  From the riveting discussion of “trash-to-gas” potential in Indiana to white reflective roofs, one of which will soon grace the Keep Indianapolis Beautiful headquarters, and to the Colts and the opportunities presented by the Super Bowl in just four short years.  Those were just a few of the colors, images and topics covered by the enthusiastic group. 

What seemed to materialize in the course of conversation was evidence of both Indiana’s leadership and Indiana’s potential.  On one hand, Indiana is a leader or will soon be a leader in the United States for wind development, biofuels, cellulosic fuels, hybrid battery technology and a host of cleantech industries.  On the other hand, when compared to other states (or countries), Indiana lacks a renewable portfolio standard (like many  other states), an attractive state tax credit (like Iowa or Ohio) to foster both solar, wind and biomass development and manufacturing of components like solar panels, wind turbines, etc., and by and large Indiana as a whole, while increasingly attentive to these issues, lacks education and/or the will to make changes in behavior that have been made (or forced) in other states.   

There was some debate over the tension between allowing market forces to control versus using government revenues and/or mandates to speed things along.  Politics aside, great ideas flowed and opportunities are clearly here in the Hoosier state.  The challenge is how to bring resources, education and the will to accomplish the possibilities, but we seem to be on the right track.

The Green Commission reconvened on Thursday, April 24th after a hiatus during the transition of administrations in city government. The commission hosted Deputy Mayor Nick Weber who spoke on the role of green development in for the city. Deputy Mayor Weber was followed by Department of  Public Works (DPW) Director David Sherman who outlined the goals of the DPW, including water conservation, energy conservation though fleet management and a study of city groups to see how the city can be made greener.  Tim Method then outlined the primary green steps the city plans to take in 2008, including:

1. Energy efficiency and conservation and the implementation of an energy conservation policy city-wide;

2. Purchasing by the city of eco-friendly products and implementing purchasing policies;

3. Traffic light conversion to LED;

4. Green building practices;

5. Decreasing fuel consumption (fleet management practices);

6. Reviewing public transportation options and strategies;

7. Internal city-wide recycling programs; and

8. Natural resource area focus - stormwater design manual and CSO long-term control plan.

The commission also heard updates from community and green commission members including the new Indianapolis Chamber of Commerce Green Business Initiative (6 companies, including Ice Miller LLP have met the criteria as a green business), the Indiana Sustainability Alliance (look for a new event hosted by a major manufacturer on its green practices), Keep Indianapolis Beautiful (planning on moving into its new headquarters in June) and Eli Lilly (discussing the green aspects of its Day of Service).

The commission agreed that its next steps would be to have the work groups convene to determine the top 1 - 3 priorities in each area so that the commission can establish the key implementation steps and recommend those to the mayor's office for consideration. The commission plans to meet in June to discuss the priorities. Interested parties can contact Tim Method at DPW to join the list serve to receive updates on the commission.

Indiana's General Assembly has passed House Bill 1280, Energy Efficient Buildings, which requires the environmental quality services council (EQSC) to study whether public entities should be required or encouraged to seek to achieve energy and environmental design ratings in the construction and renovation of buildings and structure and related issues. The General Assembly adjourned sine die March 14.  The Speaker of the House and the President Pro Tem of the Senate have seven days after sine die to sign all bills, after which they are sent to the Governor's office.  Once a bill reaches the Governor's office, the Governor has seven days to take action (sign, veto, or let the legislation become law without his signature). March 28 is the Governor's final deadline for signing bills. A technical corrections day, if needed, is set for April 15.  Both houses would convene at 1:30  p.m . The bill originally required a building constructed or designed under certain public works contracts entered into after December 31, 2008  to be designed with the goal of achieving the United States Building Council's Leadership in Energy and Environmental Design (LEED) rating system, the Green Globes Two Globes level or equivalent standard under an accredited program.  It contained provisions regarding state energy purchases and Energy Star rated equipment. It allowed the Indiana  Economic Development Corporation to adopt rules regarding priority for economic development projects that met or surpassed LEED criteria. The EQSC will likely consider these types of issues in determining whether public entities should be required or encouraged to seek to achieve energy and environmental design ratings.

Jim Rebber is the General Manager of Quality at Seymour Tubing, Inc.

The two things that I would like to discuss center around workforce improvement and global manufacturing as it relates to Indiana's competitiveness.  As was mentioned during the roundtable, Indiana is very willing to grant funds for employee training.  This question or thought that I have is, "How do we motivate the workforce in Indiana to take advantage of this opportunity?"  Is it a question of an employee's belief that there is not a need for them to improve their knowledge and/or skill base in order to compete for jobs in the future?  Or, are there some other factors holding many people back from taking advantage of these programs?  Maybe the question should be, "What is the level of involvement of people taking advantage of state provided training opportunities?"  The next question should be, "How do we increase this involvement?"

Second thought: Global competitiveness.  I thought about this on the way home.  I enjoyed hearing the gentleman from Taiwan talk about the fact that manufacturing jobs were leaving Taiwan and going to South Asia.  They have some of the same fears that we have here in the U.S.  The loss of middle-class jobs and, therefore, the weakening of the middle-class in terms of numbers is a real concern for them.  It was reported that they were going to look to the U.S. for answers – namely creating the service type industry base.  Truly it is a small world.  If we believe that it is important to keep a sound industrial base here in Indiana, then we are going to simply have to work smarter than the rest of the world in finding ways to compete in this global economy.  Thanks again for the opportunity to discuss issues that face Indiana.

Vincent Liu is the Senior Vice President of Telamon Corporation.

It is well recognized, in general, that the U.S. economy is moving from manufacturing to service.  The type of manufacturing jobs that will remain in the U.S. for the future, will be those in association with high-tech and knowledge-based skill sets.  Therefore, the future workforce has to be well educated in order to be globally competitive.

However, we also believe that the globalization will lead Asian companies to move their operations to the U.S.  We have seen European and Japanese manufacturing companies establishing factories in the mid-western states in recent years.  The other Asian companies from Taiwan and China will follow in the next ten years.  In order for Indiana to be a preferred state to host those companies, the Indiana business community should do more to build a reputation in Asia through more communications and learn more Asian culture/language through local events (i.e. those hosted by Ice Miller).

Like other Asian companies in Indiana, Telamon will always be willing to share its experience with local companies that have an interest in building business relationships in Asia or in the U.S.

Dr. Homer L. Pearce's remarks during Ice Miller's recent life science distinguished speaker's series highlight the importance of sufficient research funding for success in the war on cancer.  Research and development costs associated with identifying pharmaceutical solutions are particularly daunting and, given the time to market and current patent protection periods, sometimes commercially unjustifiable.

As a result of the targeted efforts of many, including the Indiana Economic Development Corporation and BioCrossroads, among others, Indiana's unique contribution to the national life science sector is becoming increasingly recognized - not only in terms of its many research institutions, major pharma companies and contract service providers, but also with respect to availability of funding.  In 2006, according to PricewaterhouseCoopers, Indiana ranked 21^st in the nation for venture capital investments in the life science sector.

According to the S&P-2006, Purdue and Indiana University currently have $200 million in academic life science funding commitments and graduate 10,000 science and engineering students each year.  Both institutions are developing innovative diagnostic equipment and pharmaceutical protocols that, with appropriate funding, can bring life saving treatments to market.  The financial needs of Indiana's innovators have not gone unnoticed by public and private financial sources that are positioned to fund such developments. 

In 2008, we should expect to see further growth in Indiana's life science community as our state's leading research scientists build on the efforts of past scientific contributors to develop cutting-edge technologies and as funding sources become increasingly available both locally and nationally.