Pressroom Apex Remodeling & Construction is known throughout Northwest Indiana for providing superior remodeling and construction services. In fact, many look to Apex and President Mike Miller for information and advice. The Apex reputation has grown over the years, and combined with our many successful projects, we have been featured in national press as well. Here's a sampling of some of the coverage Apex has received. Apex's President, Mike Miller, is featured quarterly in The Times as part of The Times Board of Economists. Mike is part of a diverse group of business leaders in this group that convene quarterly to discuss the shape of the local economy. The Times and The Post-Tribune have used Apex as a credible source for professional remodeling advice and information. Apex has been featured in national magazines including Professional Remodeler, Remodeling, and Qualified Remodeler.

Apex in the Press

December, 2003
Remodeling Magazine
"Access Granted"

Click here for article

October 3, 2003
Post-Tribune
Ruth Ann Krause
Home Remodelers Give Back

Highland, IN - For years, Apex has been working to make homes more comfortable for their owners. Company president Mike Miller said the firm often gets calls for kitchen and bath remodeling, as well as relocating laundry rooms from the basement to the main level, widening doorways, replacing interior doors, and other jobs. Apex tackles deck construction, room additions, and siding installation, and its employees install Pella windows and doors in Northwest Indiana and the Chicago area.

Miller said he and partner Scott Filler hired a marketing firm to update their web site and develop new brochures to promote their services a year and a half ago, but they were still looking for another niche in the market to increase business for their company. After a brainstorming session, they decided to launch their own special needs remodeling division intended for senior citizens and people with disabilities. They also decided to launch their own charity endeavor by catering to people with special needs. "At least we know where the money went," said Miller, 40.

Every three months, Apex completes one special-needs project at no charge to the customer. Apex's first project was a new ADA-compliant wheelchair ramp at St. Timothy Episcopal Church in Griffith. The ramp was installed in mid-June at no cost to the church. Miller said he plans to do a project every quarter.

"We've grown like a weed in 14 years and it's because of our customers," said Miller. The idea behind the program is to give back to the communities they serve, he said. Requests are put into a hat and drawn at random.

July 6, 2003
The Times
Denise Koch, Highland
"Letter to the Editor - Reporting on Project would have Aided Disabled"

Apex Construction and Remodeling recently announced the creation of its new division, Special Needs Remodeling, which devotes itself solely to Americans with Disabilities Act-compliant remodeling projects. As part of its commitment to this program, Apex has pledged to donate one Special Needs Remodeling project each quarter to someone in need of this service. Apex provides all labor and materials free for such projects.

In mid-June, St. Timothy's Episcopal Church became the first recipient of this gift when Apex built a new, ADA-compliant wheelchair ramp to replace its old ramp. The Times, though notified of this event, chose not to cover it. In doing so, The Times missed an opportunity to assist the community by making readers aware of an honest, quality remodeling company, particularly when The Times is so willing to print stories about disreputable companies.

More important, The Times failed those who are disabled, especially suddenly, by denying them this resource. Instead, The Times chose to abandon its service to the community that week in favor of printing a worthless story about the father and son owners of Bridges Scoreboard and their rivalry over Chicago baseball teams. Who did that help?

June 12, 2003

"Commitment to the Community" Project Announced by Special Needs Remodeling

Highland, IN (June 12, 2003) ----Apex Construction's new division, Special Needs Remodeling, will install a wheelchair ramp at St. Timothy Episcopal Church, 1115 N. Cline Avenue, Griffith, beginning at 8:00 a.m. Monday June 16. This is the first in the Highland, Indiana company's "Commitment to the Community" program, in which Apex donates their construction services to physically challenged area residents in need. Initial project work including tear-out, footing placement, and initial reconstruction efforts will begin June 16, with completion of the project within a week.

"Physically challenged St. Timothy parishioners had a real tough time entering the church. The Apex Team decided that St. Timothy was the very best choice for our first 'Commitment to the Community' project," said Mike Miller, President of Apex. "When we started this new division of Apex late last year, we decided to perform one special needs home or business remodeling or construction project FREE each quarter. With so many potential recipients to consider, we had a tough time coming up with our very first recipient. This new ramp at St. Timothy will simply benefit so many", continued Miller.

Apex recognized the need for providing building alteration services for the elderly and disabled throughout Northwest Indiana. Over the last fourteen years, Apex has built countless wheelchair ramps and completed numerous home and business modifications to better accommodate customers with special needs. Through these customer relationships, the company realized there are so many who are physically challenged and in need of a quality professional they could rely on to make their homes and businesses barrier-free."

It's wonderful what Apex is doing", said Father Steven Schuneman of St. Timothy's, "and means a lot to our congregation."

Apex Construction's Special Needs Remodeling division completes projects for private residential and group homes, as well as businesses that need to comply with the Americans with Disabilities Act (ADA). The company ensures federal standards are accurately delivered, with all work being backed up by Apex Construction's five-year guarantee.

To have your specific need considered for the company's "Commitment to the Community" program, please visit their web site at www.apexremodeling.com, or send your information (including contact information, description of your need, and description of financial limitations) to: Apex Construction & Remodeling, Special Needs Remodeling, 2743 Highway Avenue, Highland, IN 46322.

March 23, 2003

Andrea Hollecek, Times Business Writer
The Times Board of Economists

Holiday Hangover Slowing Remodeling, Home Work

Even though it takes place a bit after other industries, the service sector currently is feeling the effects of the poor economy, said Mike Miller, president, Apex Construction and Remodeling.

"Although it seems like it has slowed a bit since the beginning of the year, we have both residential and commercial work but people are waiting on funding," he said. "It seems as if people want us to do the work but won't give us the go-ahead, especially commercial clients who are doing budgets. Compared to this time last year we're ahead in volume because we've had a few bigger jobs."

This time of year is normally slower than others, according to Miller. People have the holiday hangover or they're waiting on tax returns. Nationally, the slowdown seems to be pretty common, Miller said.

"People are concerned about the war," he said. "We're being bombarded with it. That's all that's on the news. The war threat and the bad economy are all negative news. ... Right now it's a double whammy between the weather and the war."

National Association of Home Builders is projecting an increase of 5 to 6 percent in remodeling volume in 2003, down from 2002 levels, with a $170 billion remodeling market this year. Total remodeling volume is expected to increase to more than $210 billion by the end of the decade.

November 11, 2001, The Times
Times Business Staff
The Times Board of Economists

Downturn Affects Local Sectors in Different Ways

This is the last part of a two-part, sector-by-sector look at what is happening in the region's economy. Last week the Times reported on construction, banking, restaurants, academia, real estate, investments and agriculture.

Consumer spending

Barbara Bibb, executive director of Consumer Credit Counseling Service of Northwest Indiana in Gary said the events of Sept. 11 took a toll on the average Northwest Indiana consumer. "What we're finding is bankruptcies have risen," she said. "I think a lot of it has to do with layoffs at the mills, and LTV and now Bethlehem Steel filing."

In some cases, consumers also are spending money at an even greater rate, trying to take advantage of low credit rates. "A lot of people are buying new cars, because they're selling them at no money down, zero percent interest rate. A lot of people are trading in the cars they bought last year at 7 percent, because it's cheaper for them to buy at zero percent. But in many cases, the income is no longer there to support the payments."

The average amount of indebtedness among her clients, Bibb said, has risen from $2,500 to $5,800. "And the interest rates have not come down on the credit cards," she said.

She warned consumers to be wary of "teaser" interest rates offered for new cards. "Read your statements thoroughly," she said. "Find out when the rate will go up and what it will be."

Even a minor economic downturn can result in climbing credit debt, Bibb said. "If you are over your limit, or miss a payment, there's a late fee and overlimit fee between $25 and $35," she said. "We have people coming in who are making payments, but the payments aren't covering the interest and late fees and overlimit fees. So their balances are going up, and they're not using the credit."

Her clients are afraid about losing their jobs, she said. "A lot of people at the mills worked there a long time, and suddenly they don't have a job," she said. "You just never know." When the worst happens and the job is lost, that fear shifts to "what happens to the money in my retirement account, and do I still have medical insurance," she said.

The coming holiday season provides extra temptations for debt-ridden consumers. Bibb suggests making a gift shopping list and sticking to it. "Stay under a debt of 15 to 20 percent of your disposable income," she said. "And put away 10 percent for long- and short-term savings. "Dream big and start saving small," she said, "but make it consistent."

Media

Overall, the media has become a very fragile business, Leigh Ellis, president of Radio One Communications in Valparaiso said about the plunge in advertising spending. "The business dollars are still there, but the people making the decisions are being very cautious."

He said advertising income has been down overall in broadcasting, but Northwest Indiana has not been as severely affected as the rest of the nation. However, getting the same advertising has meant working harder. "We're finding that we'd better have every objection answered before we walk in the door, because we're not getting a second chance" when talking to advertisers.

"This happened in 1991 during the Gulf War, too," he said. "When we get into a crisis situation, people seem to want to pull their horns in."

Ellis said that, although advertisers are trying to get the best value for their advertising dollar, cutting back on promotion can prove a false economy. "If you're not telling the public about your product, what will happen? Immediately your business will go down, and it starts a vicious circle."

He said the best business owners are watching for ways to shift gears, perhaps by focusing on a different product, so they can keep rolling. "Recessions seem to weed out the bad businesses," he said.

Casinos

The local gambling industry saw a downturn in September, but "our September numbers were not that terrible," said Rick Mazer, general manager of The Horseshoe Casino in Hammond. Slightly fewer passengers are turning out to gamble these days, he said, but the industry remains strong. "Historically, we have found that we are certainly not recession-proof, but we are recession resistant. When people are employed, even if they're not doing as well as they would like, they still want entertainment," he said. "They might be hesitant to buy that new TV set, but they still want to get out and get away from things ... The only time we see a significant impact is when they have no income."

Mazer said the average casino customer sees his gambling losses as the cost of his entertainment. "But we are the only entertainment venue that will allow you a chance to enjoy yourself and leave with more money than you came in with."

The local gaming industry suffers more from Indiana taxes than from a slowing of the economy, Mazer said.

"Our effective tax rate for the state is more than 30 percent, and in Hammond, it's close to 37 percent. And that's just for gaming and admission taxes, not counting sales and property taxes."

That rate is far higher than other states, he said. To a lesser extent, casinos also are impacted by Indiana's inventory tax, which exacts a fee for unsold items in the gift shops and food in the restaurants. In that respect, he said, casinos are in the same boat with every Indiana business. The taxes make it harder for Indiana casinos to compete with those out of state, he said. Casinos operating in a less burdensome tax environment might provide a better return on the company's dollar -- and that might mean corporations with casinos in many states will end up taking capital dollars away from Indiana.

The prohibition against dockside gambling also has taken a new toll on Northwest Indiana casinos, he said. "In Illinois, one of our competitors moved into barge, and that affected us ... We've seen a shift in the Northwest Indiana market, and there's no question, some of it is attributed to that."

Local government

The economic downturn has meant significantly less revenue for local units of government, according to Michael W. Griffin, clerk-treasurer of the Town of Highland. The drop of the prime lending rate by almost four basis points since Jan. 1 has meant less return on the low-risk investments to which units of government are limited, such as traditional savings accounts.

"We had to make an adjustment for the current budget," Griffin said about what has amounted to 30 percent revenue drop that will affect next year's budget. For example, no money was allocated for employee raises, although it is still possible that some shifting of funds might make raises possible. Department heads have been asked to leave unfilled positions empty as long as possible. "The council hasn't made any final decision on raises of any kind," Griffin said.

Medical insurance for employees remains Highland's biggest financial headache. "We experienced a 20 percent increase, and frankly, we were grateful it was only 20 percent," Griffin said. About 18 months ago, he said, the cost of medical insurance for the city had gone up 47 percent.

Highland has joined a consortium with four other local communities to explore the possibility of a multi-jurisdictional health care policy, he said.

Griffin said he believes the new Indiana tax restructuring proposal as presented "has many promising attributes that should be pursued" -- as long as they are introduced gradually.

"There needs to be a circuit breaker for communities like Lake County," he said. "I'm for fixing the system, making it more fairly allocated. But it was so badly skewed for so long. The problem didn't occur overnight, and we should allow for a gradual solution."

He's a believer in finding a "wider revenue stream" to fund schools. "What does a school give you? It equips young people to be citizens who can participate fully in their community. But that's a portable value-added. It seems to me you ought to tie that to a revenue source that has a broader base."

Entertainment

Charles Blum, president, Star Plaza Theatre & Star Productions in Merrillville, said business has been brisk since Sept. 11. "Gallagher plays here every Halloween, and he was here," Blum said. "His business increased this year over the previous one. We noticed the same thing with Carrot Top and Alice Cooper -- many shows saw an increase over previous years."

"I think people are just tired of sitting home watching TV. The news is depressing ... about things we can't do anything about. Also, they're not traveling as much, so we become a real value for them."

The most recent shows have been aimed at the Baby Boomer market. A younger audience, like that expected for Megadeth, is also buying tickets at numbers that "exceed expectations," Blum said. "I'm curious to see if all markets will pick up," he said. "The symphony was here, and it was one of their biggest nights ever."

The changing world politics have had an impact on what entertainment is available, Blum said. Some acts are reluctant to travel far because an air travel ban in mid-tour could strand them. That gives smaller venues, like the 3,400-seat Star Theater, the chance to persuade top-name acts to make a stop in nearby Merrillville after playing in the Chicago area.

"They're also looking at the type of venue they want to play, and ours is really more appealing because it's a smaller, safer environment."

Blum said he has not had to step up security measures for every show since Sept. 11, because most of his security personnel are trained law enforcement officers. The Star Theater already uses spot checks, and even metal detectors when necessary, to keep the audience as safe as possible.

Utilities

The slow-down of the economy since Sept. 11 has been bad news for the utility sector, but the latest reports show consumers will pay prices that are substantially better than last year.

"Some of our large industrial customers have cut back on production, reducing their energy demands which in turn, has a direct impact on NIPSCO's financials," said Barrett Hatches, NIPSCO president and chief executive officer. "As a result, NIPSCO's revenues have taken a hit."

"As the heating season settles in, we're encouraged by the market conditions that have driven the price of natural gas down significantly compared to the same time last year," he said, citing NIPSCO's November announcement of gas prices, which show a decrease of approximately 20 percent compared to November of 2000.

He noted that the price of natural gas, which NIPSCO distributes, is dependent on many factors, including weather and supply. NIPSCO generates its own electricity, but those prices are regulated by the Indiana Utility Regulatory Commission. NIPSCO's base rates for electricity haven't changed since 1987, although warring petitions to increase and decrease that rate are being heard in Indianapolis now.

Hatches is optimistic about the proposed tax-restructuring bill, which he said "has many positive implications for economic development in the state, which could also be beneficial to NIPSCO."

Health care

The events of Sept. 11 have forced hospitals across the country to review their disaster preparedness.

John Betjemann, Methodist Hospital's president and chief executive officer, said the hospital is reviewing its disaster and Y2K preparedness plans and building on it.

"We're also taking advantage of the American Hospital Association's recommendations and guidelines for germ warfare," he said. "This is a costly venture, but the stakes are high and we must do this correctly."

Meanwhile, Betjemann said managed care in Lake and Porter counties has taken the form of PPOs, not HMOs. The PPO is simply a panel of providers who have argued for a discounted fee schedule. HMOs entail more risk than providers can bear. The state Medicaid division is mandating that by 2003, all Medicaid recipients will receive their car from managed care systems.

In the very near future, Methodist plans to restructure some services to better serve the public.

The hospital plans to consolidate its neuroscience and oncology department into a single unit, with doctors, clinics and other services related to those departments contained in one building.

Betjemann said the hospital plans to construct a new building at each campus, Northlake and Southlake, that will provide diagnostics, procedures and clinical studies at one location.

"This will be a $20 million investment," he said. "We want to put doctors, clinics and high tech equipment in the same building. Doctors will be able to see their patients and do other things that they need to do in one building. From the time they come in, they won't have to leave the building. They'll be able to take care of their inpatient and outpatients all in one building."

Betjemann said a similar service is offered at the University of Chicago Hospitals. He said construction is scheduled to begin next year.

Small retail

The owner of a small, local boutique catering to women's apparel said business has never been better.

Cheri Emery, who owns Crown Point-based Point of View, said part of the reason is because she relocated to the historic Crown Point square, from a previous location on the north side of town.

"Business is up 20 percent over last year," she said. "We saw business drop a little bit after the terrorist attack. For the first five days, it was slow, then it began picking up again. I had a good September and a record October. I think that's because people are sticking closer to home to shop."

Despite the pall over the nation as it continues to recover from terrorism on American soil, three quarters of U.S. consumers shopped for Halloween, the second largest retail holiday following Christmas.

Some retail experts said people will be surprised by the amount of shopping that's done during the Christmas season. Small, niche retailers like Emery are looking forward to it.

"When people first came in here after Sept. 11, they wanted to talk about it, especially the first few days," she said. "They wanted to get out of the house. Then, it kind of tapered off. I think my customers feel comfortable coming in here. It's a nice getaway from the television, being at home and everything else."

Meanwhile, Emery said she, like other business owners, are looking at how restructuring Indiana's tax system will affect them.

Gov. Frank O'Bannon announced a plan that would remove the burden from business owners and place more of it on residents. He also proposed removing welfare from the property tax system, and increases in sales and income taxes.

"If a plan like that is approved, the increase in sales tax will affect me but that will affect everybody," Emery said. "People have to pay sales tax wherever they go. I don't think it's a big issue."

Service/residential construction

Despite the horrifying events of Sept. 11, Michael Miller, Apex Construction and Remodeling Co. president, said people are prioritizing their needs and choosing to spend their money on things that are important to them.

Although economists have said consumer spending is down and the first and second round of post-attack forecasts paint a gloomy picture of the American economy, Miller said his company which focuses on residential and commercial remodeling work has seen virtually no change between the "before attack" and "after attack" economy.

"When the chips are down and the economy is bad, I believe people will still take care of their homes," he said.

Miller said he belongs to a national remodeling organization, and most members are seeing a similar reaction from consumers. In addition, Miller said several manufacturers of the products his company uses are increasing their sales goals, planning promotions and trying to take goals up a notch for 2002.

"I know there are companies out there who are downsizing and cutting back because of fears about the economy but we're in the process of developing a new marketing campaign," he said. "I've hired some additional people."

Miller also admits the picture may change with a small, niche company like his or a larger construction firm which focuses on commercial or industrial construction.

Grocery

Donald Weiss, president and owner of WiseWay Grocery, said sales are stable.

"It's all been very consistent," he said. "Before Sept. 11, there was a return to the supermarket as an alternative to restaurants and people saw the economy softening. We still have day-to-day disruptions, but it doesn't appear to have had a significant permanent effect. It's stable. It's consistent. We haven't seen any significant change."

However, Weiss said people who work in high tech areas have been feeling a pressured economy for awhile. The worry here is for the future, he noted.

"Northwest Indiana has not had the thousands of layoffs that companies like Motorola have had," he said. "The situation at Bethlehem and LTV is a concern."

Still, Weiss noted, supermarket and drug store sales are two of the areas that have not had a slump nationwide.

Industry

The oil refinery business has been dramatically affected by the Sept. 11 tragedy, and people's subsequent fear of flying.

Recent reports say distillate stocks -- heating oil, diesel and jet fuel -- were 8 percent higher at the end of September than at the same time a year ago and are expected to continue to increase in the coming months.

With airlines cutting back flights in the aftermath of the terrorist attacks, demand for jet fuel has dropped by 20 percent. As a result refiners are expected to push out more heating oil, adding to already hefty supplies and pressuring prices downward.

Tom Keilman, senior public affairs advisor at BP Amoco said the business is somewhat seasonal but because of the fall off in air travel, they've experienced a slackening demand for jet fuel.

The Energy Department has said energy prices across the board, from gasoline to heating fuels, are expected to be sharply lower this winter. That's in sharp contrast to a year ago, when short supplies and spikes in demand saw prices soar.

"Under normal weather assumptions, relatively weak demand and generally ample fuel inventories portend sharp reductions in fuel prices compared to last winter's," said the report.

Just a year ago, there was a 27 percent rise in the cost of jet fuels causing airlines to raise the cost of domestic flights to absorb the increasing fuel costs.

October 25, 2001, The Times
Kim Chievrue, Times Business Writer

NWI Bucking National Economic Trends: Many Area Business Leaders Cite Profits Despite Setback after September 11

We are in the midst of a worldwide recession, according to local economics experts -- but sectors of Northwest Indiana's economy seem to be rebounding from the effects of the Sept. 11 terrorist attacks faster than the rest of the country.

The Times Board of Economists, a group of area executives and entrepreneurs from a variety of businesses, discussed the effects of the disasters in New York and Washington at a meeting Wednesday in Merrillville. Most agreed that local businesses either held their own or were recovering.

Mike Miller, president of APEX Construction, said his business has been booming.

"We're having our best year ever," he said. "Sept. 11 doesn't seem to have bothered us at all. It seems like our business is a bit bullet-proof."

Bill Hasse, who owns a construction and remodeling business in Calumet City, said his business also has done well. While commercial developments might have been stalled, he said, construction of hospitals and schools continues. "I don't see that changing," he said.

Other businesses made a relatively quick recovery. Cheri Emery, owner of the Point of View shop in Crown Point said her retail business fell off for five to six days after Sept. 11. "But then, things picked up. I ended September flat, which was a surprise. " She said she believed the market for high-end, designer clothing might have suffered more than smaller retail business after the attacks.

Donald Weiss, owner of WiseWay Grocery, said Sept. 11 said his business has been stable because people need groceries even when the economy goes down. While his business has not come back to previous levels, he said, it was now approaching those levels.

Not all businesses have fared as well. John Barney, president of Barney Enterprises, who owns local Wendy's restaurants, said the restaurant industry as a whole is down, with the biggest restaurants taking the hardest hit.

More local people are borrowing money, said Christopher M. Morrow, executive president and chief executive officer of Mercantile National Bank of Indiana in Hammond. "Lending is up," he said. "Loan rates are good now, and that's good for people who are borrowing."

More local people are gambling their money, too. George Corchis, Jr., assistant manager at Horseshoe Casino in Hammond, said gambling there is up. "It's almost double what it was last year, although the overall industry has seen a decrease in profits." He said the Sept. 11 attacks have had an effect. "A lot of people who normally go to Las Vegas aren't traveling. They're staying here instead. If you have a job, you're going to put some money aside for entertainment."

Charlie Blum, president of Star Plaza Theater & Star Productions, agreed. People want to get out and want to be entertained, he said, and since Sept. 11 they're more inclined to stay in town. He said he sees a potential problems getting entertainers to perform in the region if travel remains difficult.

People are still buying homes, but they're not spending as much on them as they did before Sept. 11. "We're in a period of change," said Frank Pressel of Century 21 Estates in Valparaiso. "It was a good year for low- and mid-range priced homes," he said, although sales of homes costing more than $300,000 has been down.

Despite the many drops in the prime lending rate, he said, mortgage rates had not come down radically. He thinks lowering the prime was a bad idea. "We sold as many houses at higher rates," he said. "But it does help with consumer confidence."

What can be done to ensure Northwest Indiana's road to economic recovery is as smooth as possible? The economists agreed on a few points.

Bank president Morrow said dockside gambling would be a boon to the area. Horseshoe assistant manager Corchis agreed, pointing out the safety advantages of a fixed facility. "There are other significant disadvantages to having casinos that are required to cruise," he said.

Morrow also suggested local governments consider collaborating to save costs. Highland Clerk-Treasurer Mike Griffin said health insurance costs drained the resources of governments in the same way they did businesses.

The businessmen agreed that Indiana's inventory tax, a yearly tax on unsold merchandise, hampered the local economy. "We need an amendment to stop the Indiana constitution from requiring the inventory tax. Reassessment will help Northwest Indiana, but not eliminate the problem. We need to look seriously at how we finance government."

The ITC decision to recommend for a government bailout of the steel industry will be bad for the economy as a whole, said Don Coffin. Nelson agreed. "It will cause inflation down the road. It will come back to bite us."

Nelson expects the country to recover from this recession. "It's for real that the NASDAQ is down the most ever. S&P is down one-third in round numbers. This has taken the wind out of the economy's sails. But this market has shown resiliency in the past."

"It speaks well for our economy as a whole that the markets were able to open the following Monday, after Sept. 11, and carry on business in a normal fashion."

This is a good time to buy into the stock market, he said. "Our product is on sale right now."

November 14, 1999, The Times
Times Business Staff
The Times Board of Economists

Local Economy Strong, but May Slow in 2000

Retail

David Winter, manager of JC Penney in Hobart's Southlake Mall, said all the luster for retail businesses seems to be subsiding.

"We're planning for 5 to 6 percent increase over '98," he said. "But who knows? In this market it's up slightly because of our renovations. But we're seeing fewer shoppers in the mall. Mall traffic is down 6 percent, but that can be attributed to the major remodeling. Shoppers don't want to mess with it."

Business is always worse during times of turmoil, but afterwards there's a big surge of traffic because shoppers want to see what improvements have been made, Winter said.

"I think the business is a little lackluster this quarter," he said. "Maybe people are preparing for a little more conservative holiday. I'm a superstitious, 39-year veteran of retailing, and to me the atmosphere going into the holiday period feels strange. This is suppose to be a big, dressy holiday with lots of glitz and glitter, rhinestones, formal wear. I've got it running out my ears, but it's moving very slow. It's not happening. Will it really kick off is the question."

The retailer said his gut feeling is that rather than buying a lot of party clothes, shoppers will buy the basic cold-weather-wear like sweaters, warm fleece, coats and the like.

"With La Nina and the Farmer's Almanac indicating it will be a colder and wetter winter, I think people will be more conservative. Take a forecast for weather that's colder and wetter and add Y2K and it brings out the conservatives. Glittery things are not on fire. If something's going to be hot, usually you'd see it by now (the first week of November). Christmas won't fall because of the conservatives, but it will change the flavor of what they'll purchase."

Like last year, retailers are having trouble recruiting holiday help, Winter said.

"I have been having trouble getting help for the last 18 months," he said. "I have to hire 100 people for the holiday; right now, behind 10 people. Every day is a struggle to get people to give good customer service. People with a smile who are nice to people."

People don't want to work nights or weekends, said Winter, who manages a store with 265 employees, 245 in non-supervisory positions.

"It's the law of supply and demand," he said. "There's so much out there for the person who makes $6 to $10 an hour that he can get any job, and if he doesn't like it he can walk off and get another job immediately."

Steel

John Kaloski, senior vice president of regional operations at National Steel Corp.

At National Steel, books are full and facilities are running at capacity, said John Kaloski, senior vice president of regional operations at National Steel Corp., providing a microcosm of the American industry as it tries to rebound from a year's worth of losses and declining profits stemming from a glut of imports.

Price increases have been instituted, mostly in semi-finished and hot-rolled products, and most domestic steelmakers have announced prices increases effective either later this year or early 2000.

"Prices look like the have the beginnings of recovery," Kaloski said. "Certainly imports are still playing a part."

In addition, a thriving automotive industry has provided a steady outlet for high-quality steel products, Kaloski said.

"The overall economy is strong. The automobile industry continues at levels that will make it a record year," Kaloski said. "We have no reason to believe that won't continue."

Much of the domestic industry should see improved numbers in the fourth quarter after virtually every U.S. integrated steelmaker suffered through abysmal third-quarter results. Companies are likely to start seeing profits in 2000, Kaloski said, with the ambiguity of contract talks in the past for both steelmakers and automakers.

"This quarter should show some improvement," Kaloski said. "Next year (domestic steelmakers) will start to show some profits. It appears we've bottomed out."

Health care

John Betjemann, president and chief executive officer of Methodist Hospitals

The medical industry is in the midst of a whirlwind of activity, according to John Betjemann, president and chief executive officer of Methodist Hospitals.

The Supreme Court has upheld the rights of patients to sue their HMO, forcing HMOs to allow doctors, not bureaucrats, to make medical decisions. For years, HMOs have effectively been practicing medicine, Betjemann said.

"It's the first time they've been accountable," he said. "A lot of consumer groups were happy with that. Most doctors were happy with that."

Furthermore, United Healthcare, the nation's second largest HMO, has said it no longer will override doctors' decisions.

"HMO stocks are going to go up because of this," Betjemann said, figuring a growing customer base will outweigh additional medical costs.

Physician Web sites also are on the horizon, Betjemann said. The sites will enable patients to speak with doctors or physician assistants in an "interactive" atmosphere. Patients can type in their ailments for doctors to scan and reply a request for more information or a possible diagnosis.

"The doctors who take to this are going to do very well," Betjemann said. "It's another example of how the Internet will change society."

Financially, hospitals, including local medical centers, have been leaders in the stock market, relying on bullish trends for a significant boost in capital. Once the market corrects itself, hospitals will feel the pinch as much as anyone, Betjemann said, as bond ratings will drop and lending rates will increase. That, he said, would likely lead to cost-cutting measures. Had it not been for the market, these cost-cutting efforts would have occurred much sooner, Betjemann said.

"It's going to mean fiscal prudence, and cost-cutting is going to be more important," Betjemann said. "Those who can, fine. But those who can't, go by the wayside."

Service

Business is booming for the construction industry, as residential and commercial developments continue at a record pace.

"The economy is good, and everything keeps moving," said Michael Miller, president of Apex Construction and Remodeling. "I don't see it slowing down too much anytime soon."

Miller said national economists expect sustained construction growth for the next nine years. The current rate of growth, which started about two years ago for Miller, may not last, however.

"People are saying this madness may be slowing down in the next year," he said.

In the region, home and commercial construction as well as home remodelings are stronger than ever, mirroring a national trend, Miller said.

"You see things being built everywhere," he said.

Miller said not only are more homes being built but they also are bigger and better, with huge homes sprouting up everywhere in area subdivisions. In addition, many remodeling projects are large-scale, often affecting entire homes.

Miller suspects the size of today's constructions are simply a result of people making more money in a robust economy.

Entertainment

Like other segments of the economy, the entertainment industry is quite healthy.

Neither rapidly rising ticket prices nor the explosion of entertainment on the Internet has stopped patrons from seeking a live performance.

Last year, close to half a million people visited the Star Plaza Theatre in Merrillville.

Still, Charlie Blum, president, has some ideas for attracting new customers in the millennium.

"We are a destination point with the hotel, theater, intimate environment, hassle-free experience -- and parking included in the price of a ticket," Blum said. "Once people experience the Star Plaza Theatre, they return."

The theatre couldn't survive on the patronage of Northwest Indiana alone, however, and relies on visitors from surrounding areas. Sometimes the audience may be 85 percent from the Chicago area, Blum said.

For the very first time a couple of weeks ago, the Star Plaza offered a heavy weight boxing championship match. The theatre partnered with Gary-based PACMA Production to host the International Boxing Commission match.

"We're going to have more of that," Blum said. "We're also looking to bring in wrestling and get some national television coverage."

Blum is chock-full of other ideas, too.

He plans to create a children's theater and a community theater with the idea of the theater producing its own Broadway-style entertainment.

"We would actively involve the community and promote and produce the shows," he said, adding they eventually would take the shows on the road, producing them in other communities.

"It will be similar to having a community theater just like that in Valparaiso and other communities," he said. "People will be able to play on the stage at the Star Plaza, which is very attractive to many people. There are a number of very talented people throughout the region, and we intend to invite those people to be a part of this."

Blum said the theatre's aggressiveness is, in part, due to trends in the industry.

"We have to be creative," he said. "We have to be visionary to remain successful. Whiteco Industries (the theatre's owner) has supported my programming style and allowed us to be creative and try new things."

Residential real estate

Low unemployment, high stock market values and consumer optimism are encouraging people to buy bigger and better homes, said Frank Pressel, who owns and operates Century 21 Estates in Valparaiso and Hobart.

Northwest Indiana's real estate market is changing, and a certain segment of the population are buying larger and more expensive homes than ever before, he said.

"Our economy is consumer-driven, and people have faith in the economy," Pressel said. "They want bigger, more upscale homes because they can afford them."

The average size of a four-bedroom home has increased to 3,500 square feet from 2,500 square feet, and much of that is from new construction. The average price of the four-bedroom homes sold in Northwest Indiana this year was $262,200, an increase of nearly $110,000.

Northwest Indiana is very much in line with the national trend, and all of that's due to the good economy, Pressel said.

Interest rates also have held pretty steady, he said. The rates have been hovering around 7-1/2 percent.

"There's some talk that rates may go up a quarter of a percent, but that won't affect the market," he said.

As more upscale homes are being built across the region, Pressel said affordable homes -- in the $100,000 and under range -- remain a pressing problem in many communities.

"I think certain areas of a community ought to be zoned for affordable housing," he said. "I think that has to start with the cities and zoning practices. They have to look at ways to make housing affordable. I don't mean putting a dozen houses somewhere. That's just a drop in the bucket. There are hundreds of people out there looking for an affordable house, and if only a dozen are built, that's doesn't address the problem."

Consumer sector

Barbara Bibb, executive director of Consumer Credit Counseling Service of Northwest Indiana, said for people who are cash-strapped, the pay-day loan industry is doing nothing but enabling them to dig a deeper hole in debt.

A number of pay-day loan companies have sprung up around the Northwest Indiana-Chicago region offering consumers a quick-fix until pay day. The companies make small, short-term loans, holding the consumer's check until pay day.

But the fees are outrageous, Bibb said.

"We are very concerned about it," she said. "We have a client whose interest rate on a $200 loan is 785 percent."

Bibb said the woman originally borrowed $200 and terms of the loan require her to pay $60 on the principal amount for the two week period until her pay day. In two weeks, the company can cash the check or the woman can ask for an extension for another $60 fee.

"If they hold the check for three pay periods, she's paid $180, almost the amount of the loan," Bibb said.

"That's more expensive than a loan shark. Pay-day loan companies are now required to give full disclosure about these loans and what the interest rate is, but people are not reading them."

Bibb said the practice of offering pay-day loans is legal and regulated, but the interest rates are too high.

"Loan companies in Indiana are capped at charging 36 percent per year," she said. "We know that it's difficult to borrow a small amount of money from a bank. We advise people to try their credit unions."

Grocery

Competition in south Lake County's grocery business has been "fairly status quo," said Don Weiss, owner of the WiseWay chain.

"There are no new competitors that weren't open last year, expect for Meijer in Highland and that doesn't affect us," he said. "Grocery prices are stable. Revenues are stable, which is good or bad in tune with what they were last year. I don't expect any great changes in grocery prices compared to last year. They've been fairly stable over the past year except for milk, and we hope milk prices will go back down."

Although Weiss said he's not qualified to predict changes in meat prices with any certainty, he said he expects prices in that segment of the industry will stay moderate through the next quarter as they have been for some time.

"We've just had some of our best (meat) features of the entire year in the last few weeks, really good prices," he said. "Pork really went low in response to problems in the Far East. There still is a good supply of everything, so we're not seeing price increases."

Wholesale turkey prices have increased a few cents since last year, but the hike may not be felt by consumers because many supermarkets sell them at a loss during the holidays to attract more customers, Weiss said. The price will be whatever they need to be, in order for stores to be competitive, he said.

Y2K problems may slightly increase grocery sales in the last week of the month, but Weiss doesn't anticipate any "grand hoarding."

"I think you might find some people buying during the last week of the year as if there was going to be a snow storm," he said. "We're fully Y2K-compliant and don't expect any problems, and don't think our customers do either. We don't anticipate, nor would we suggest anyone should go out and stock up. We do anticipate good sales for New Year's celebrations. It becoming a more important holiday every year and should be even better this year, and people will make the most of it."

Investments

Don Nelson, vice president of investments at Merrill Lynch in Merrillville, said the financial markets have been very volatile in fourth quater of 1999 and will continue to be volatile.

Corporate earnings reports have been coming in better than expected during the past month, pushing up the stock market 6 percent. That trend should continue through at least the first part of 2000, he said.

"At the end of the year, there may be an influx of cash into the market from foreign investors who are moving cash to the U.S. because we're more prepared for Y2K," Nelson said. "Then if it becomes a non-event, it will be pulled out. Some of the cash will be put into the treasury market and the investors who plan to keep it here longer will put it into S & P index funds. If there is concern on an international basis, and it's perceived as a problem, foreign investors seek safety. Historically they would have put their money into gold, but that hasn't been the case for the past decade."

Even if foreign cash is pulled out of U.S. markets after Jan. 1, it shouldn't have a huge effect on the stock market because after the beginning of the year there will be a big influx of cash from domestic sources, including institutional investors and individuals putting money in their retirement accounts.

"That would be enough to make up for the money that would be withdrawn," Nelson said. "Putting money into the market could drive down interest rates while pulling money out could drive them up. You never know what will happen, because you can't measure all the factors and what will happen over time. That's why there's all the uncertainty going into the end of the year. And the volatility may increase."

The Federal Reserve Board may increase interest rates by another quarter of a point, Nelson said.

"The yield in treasury notes has reached or neared their peak," he said. "For investors it means it's about two years since they've seen some rally in bonds. Now the Fed may increase interest rates, but they might have peaked or are near it."

If they've peaked, investors of fixed-income investments should consider purchasing them now but those looking for a mortgage should consider waiting three to six months before they lock in their rates, Nelson said.

There is an inventory build-up in the manufacturing sector going into Y2K, which could hurt the economy during the first and second quarters of Y2K. If there is any disruption in supply links, manufacturers will have the inventory in place to fill orders.

"If they have them already in place, after the beginning of the year, they'll have to gear down their inventories to levels they like to hold them at," Nelson said.

Industry

Ric Glaser, deputy business unit leader at BP Amoco's Whiting refinery, said the oil industry as a whole started 1999 with a billion-barrel surplus of oil. If everyone fills up their cars on Dec. 29, it would dissipate that surplus and create demand that would lead to the higher gasoline prices needed to offset costs, Glaser said.

"Overall, the oil industry anticipated crude wouldn't be at record levels," Glaser said. "They thought it would be depressed, but no one anticipated there would be such a rebound. It's good and bad news for the oil industry. Good for upstream exploration and production, but a poor year for the chemical sector because of the worldwide glut in the sector."

The refining sector has been a year unlike any other in its history, Glaser said.

"We anticipated low margins, but no one anticipated they'd be record-setting," he said. "The situation created a tremendous amount of activity trying to offset what margins did this year."

This year, the Whiting refinery's margin dropped $208 million from 1998 levels.

"That could be devastating, because we don't make that kind of money at this refinery," Glaser said. "The margins are so poor compared to 1998 that we'll be just above break-even and to accomplish that, we've had tremendous things happen. We've cut costs, staff. The operations and maintenance people made units run better and reduced costs. We did a lot on cost-control and improved our own efficiencies so much that it led to not having a major loss here."

Other refineries are feeling the same pain or close to it, Glaser said. Inland refineries have been especially hard hit, because unlike refineries on the coast, they have the cost of transporting their oil.

Despite problems within the industry, shareholders still expect a return on their investment, he said.

"Their expectations are that we have to deliver an acceptable return," Glaser said. "We have a billion dollars worth of assets here at the Whiting refinery, and our shareholders expect a return so we have to do even better, including working with the communities on the tax issues and on economic development. In the coming year there still will be a fluctuating market for crude. Margins will be razor thin as well, and we're preparing ourselves for that."

Gaming

The casinos farthest from the state line appear to be taking the hardest hit from Illinois' dockside gambling law.

Admissions on the four boats closest to the Illinois border -- The Empress in Hammond, Harrah's in East Chicago, ad Trump Casino and the Majestic Star in Gary -- dropped by 10,125 from September 1998, to September of this year, state gaming figures showed. September is the most recent month for which figures are available.

That's a 0.7-percent decline for the four casinos combined.

But when the Gary boats are separated from the Hammond and East Chicago casinos, the decline in admissions is much more dramatic.

Indiana Gaming Commission figures show Trump and Majestic Star lost a combined total of 61,252 patrons compared to September 1998, a whopping 10.5-percent decline.

Despite being the closest boat to the Illinois state line, The Empress actually experienced an increase in admissions from September 1998 to the same period this year, with 14,108 more people showing up to gamble. That's a 3 percent increase in gambling traffic.

Harrah's, the next-closest boat to the border, experienced an even larger increase, going from less than 390,000 patrons in September 1998 to 426,038 in the same month this year, a 9.5-percent increase.

The Blue Chip in Michigan City was not included in this analysis, because its distance from the Illinois border makes it largely invulnerable to the potential ill-effects of dockside gaming.

Casino executives have been lobbying state lawmakers to change Indiana gaming laws to blunt the edge of Illinois' dockside advantage. This summer, laws requiring gamblers to board Illinois boats during specified boarding times were abolished, giving patrons increased access to the casinos.

Hoosier legislators, however, have yet to indicate whether they will be receptive to making similar changes to Indiana law in the next legislative session.

September, 1999
Qualified Remodeler Magazine
"Top 500 Class of 1999 - Apex Highlighted"

Click here for article

August 17, 1999, The Times
Times Business Staff

Apex Construction

Remodeling Magazine has named Apex Construction and Remodeling of Highland to its Big 50 Class for 1999, designating Apex as one of the remodeling industry's top 50 companies in America. The group of remodelers featured in the magazine were chosen because of their excellence in the remodeling business through business management, industry impact and community involvement. For information, visit the magazine online at www.remodeling.hw.net.

May, 1999
Remodeling Magazine
"The Big 50 Class of 1999 - Michael D. Miller and Scott A. Filler"

Click here for article

May 16, 1999, The Times
Times Business Staff
The Times Board of Economists

Steady as She Goes - Buoyant Local Economy Mirrors National Scene

Don Coffin, associate professor of economics and dean of the business school at Indiana University Northwest, said the local and national economy has been "in good shape" during the first quarter.

"Except for the steel industry, Northwest Indiana's economy is booming, it's buoyant," Coffin said. "Employment is strong, particularly in construction which has gone up 15 to 20 percent in this area , which is astounding."

He credits the good economic conditions, especially high employment and low interest rates, for driving the construction boom.

"It usually doesn't happen at this stage in a recovery," he said. "Construction recovery usually comes out of a recession rather than when the country is in the seventh or eighth year of the economy cycle. It's just amazing. But with the economy soaring, people need new production facilities, new warehouses, new offices. And with the low interest rates, a whole lot of people can buy homes, move up and trade up."

The retail sector also has been strong both locally and nationally.

"Consumption spending is driving the economy with people feeling wealthier because of what's happening in the stock market and with employment," Coffin said. "When people are able to have and keep jobs it's easier for them to spend. There's usually a tendency for consumer spending to cool off at this stage of the recovery, but that hasn't happened."

The problems in the steel industry during the last quarter have led to a 2 percent drop in local steel employment, according to Coffin.

The local steel industry has been depressed because of the economic conditions in Asia, which sent their steel producers looking for new markets; the devaluation of Asian currency, which increased the amount of steel being purchased for the dollar; and, possibly, Asian countries subsidizing steel production, he said.

"But even that is snapping back faster than expected, which bodes well for the local steel industry's future," Coffin said.

"Obviously the Asian economic sector went through a serious downturn beginning about a year and a half ago triggered by specific situations in those countries that made them start looking for new markets for their products. And we're (the United States) the biggest, strongest market in the world."

But during the last quarter, Asian economies have started to recover, which has taken some pressure off the U.S. steel industry, he said.

"The stress will continue to lessen and local steel employment will stop falling," Coffin said. "Steel will get a little stability and help move the industry locally for the next six to 12 months."

The only cloud on the national economic horizon is Wednesday's resignation of U.S. Treasury Secretary Robert Rubin who has had the respect and trust of Wall Street, the banking industry and institutional investors, Coffin said.

"He's provided a level of confidence and given credibility to Clinton's federal taxing and spending policies," he said. "He's enough on top of things that people believed nothing bad was going to happen with the fiscal policies. Now there are some people in the financial community who are a little concerned."

Coffin said he's convinced one person "can't possibly be that important." But if the heads of the major mutual fund companies, brokerage houses, insurance companies, banks and other financial institutions have concerns that change their investment strategies, it could force interest rates up.

"I still don't think it will make a big difference locally or nationally, but there are a number of people who may," Coffin said. "It's reasonable for people to recognize that. There may be a change in the way people think and feel about the economy that may make them behave differently and that could have consequences."

Investment

Donald J. Nelson, manager of the Merrillville office of Merrill Lynch, said investing rules have changed.

"The biggest factor is the recognition by baby boomers that Social Security is not going to take care of them and they need to do something for retirement," Nelson said. "We have full employment or almost full employment and we have a lot of people putting $25 a week in their 401K plans that weren't doing it before and they're the force driving the market."

With the Dow Jones Industrial Averages reaching record highs throughout the winter and spring, people are putting their excess incomes into the market. Some even are selling their tangible assets for market investments, Nelson said.

"They're looking at the return on their investment in tangible things: gold, silver, oil, gas, real estate saying, 'Why should I be in a Certificate of Deposit getting 4.5 percent?'" he said. "People are taking out mortgages on their homes and putting it into the market."

At the same time, corporate America is buying back more stock shares than its issuing.

"The basic reason is they have money in their treasury and they're saying, 'What can we do with this money?' " Nelson said. "Do we expand our business? Do we expand our markets? Should we buy CD's? They look at all the alternatives and they say 'Gee with everything we're doing we think our stock is cheap.' So they buy back their stock. Those people who own the remaining shares have shares with more value."

The corporate buying means there's more and more money chasing what are really fewer and fewer shares of stock, with the net number of shares in the marketplace on all the exchanges actually being reduced, he said. The reduction of shares kicks in the law of supply and demand, with fewer shares on the market driving stock prices higher.

Currently, the market has two components -- the technology stocks that are driving up the averages and getting all the press, and the segment of stocks that is staying static or falling.

"At the end of March, 52 percent of all stocks on the New York Stock Exchange were more than 20 percent off their highs and 60 percent of the NASDAQ," Nelson said. "It's a very volatile market. People need to be wary. Everybody is looking at things in a short time frame."

Nelson said investors should look at the advice of Warren Buffet, who said Americans would be better off to put their stock certificates in a drawer and not look at them until five years later to see how they're doing."

Grocery

Donald Weiss, owner of WiseWay, said the recent deflation in meat and produce prices has hurt grocers who make their profit from the margin between the cost of an item and the selling price. The reduction in cost of meat is especially troublesome because meat comprises a large part of a consumer's food budget. Deflation drives down a grocer's total sales dollars without bringing margins correspondingly higher.

"You're only going to buy a pound of this thing whether it's $2 a pound or a $1.50," Weiss said. "In a stable market, people know what prices are. We like a stable market."

Weiss, who co-owns the WiseWay chain with his father, said the competition in the sector continues to increase. During the last three years, 800,000 square feet of grocery-related retail space has been added to Lake and Porter counties, with most of it nonunion.

"It has less of an effect than local competitors thought it would, but I can't say it hasn't had an effect," he said. "It will propel more consolidations."

Although competition always has been a factor in the industry, the recent influx of grocery-related competitors has changed, Weiss said.

"We're competing with $100 billion companies in the form of Wal-Mart. Jewel is a $30 billion company, and Safeway, which owns Dominick's, is a $30 billion company," he said. "There aren't so many locally owned supermarkets anymore. We're the largest surviving independent grocery chain in the Chicago area. Stack & Van Til is locally operated, but it's owned by its distributors. To survive, you have to have your market niche and fill it better than anyone else."

The market is fragmented and a store's survival depends on which niche a grocer chooses, he said. And Weiss said Northwest Indiana is unique in that, unlike the Chicago area, its grocery sector isn't dominated by Jewel and Dominick's. Yet it is home to the supercenters like Meijer and Super K, which haven't yet entered the Chicago market.

Real Estate

Frank Pressel, owner of Century 21 Estates, Valparaiso, said housing sales in Northwest Indiana continue to grow. More than 1,800 homes were sold in the first four months of 1999, compared to just more than 1,700 for the same time period last year.

The average home price stayed about the same through the 12-month period except four bedroom homes which increased about 10 percent due to new construction costs. The average time a house was on the market before it sold decreased over the year by 7 percent to 104 days.

"We have enjoyed stable economic conditions in Northwest Indiana, and I would expect that to continue throughout the year," Pressel said. "With unemployment down to just over 4 percent and interest rates continuing to remain low, there has never been a better time to buy a home, especially for the first-time home buyer."

Northwest Indiana's biggest problem is providing better roads, sewers and other infrastructure to the 60,000 people who have moved to the area from out of state during the past decade, Pressel said.

"Our communities and elected officials in Northwest Indiana need to put aside petty politics and work together as a whole to improve conditions and keep up the growth of our area," he said.

And the Realtor said he agrees with officials of the Greater Northwest Indiana Association of Realtors who said, "What's good for Gary is good for Valparaiso and even better for the region as a whole."

"We have the second-largest population here in the state, and we need to work together to get our share of federal and state money necessary for important projects," Pressel said. "Northwest Indiana offers a lot of good things to help families make the decision to relocate here. We need to work together to assure these things continue."

Construction

The strong regional economy is fueling a construction boom in Northwest Indiana, creating fierce competition for skilled labor.

"Good, skilled workers are pretty scarce," said Michael Miller, president of Highland-based Apex Construction and Remodeling.

"It's a nationwide problem. It's not just here, but it gets very irritating," he said.

Summer is always brisk in the construction industry, but contractors are expecting increased demand as more people relocate from the cities to the suburbs building their dream homes. With skilled labor in short supply, smaller projects like home remodeling are being pushed back.

"Part of the problem is that there aren't enough people going into the trades," Miller said. "I belong to a national remodeling organization, and we've seen this coming for a while. It will probably get worse before it gets better. If you don't train workers today, they won't be available when you need them tomorrow."

Another factor is that key people are leaving the business to start their own companies, Miller said.

"The economy is good, and economists tell us it's going to continue to be good for a while," he said. "Key guys are leaving the companies they work for and starting their own firms. They can be out on a job and decide they can make more money doing this for themselves. It's kind of a compounding problem, because it creates another construction business that needs good workers."

Hesitating to sound negative, Miller nonetheless contends that a downturn in the construction industry might not be a bad thing.

"That would choke out the weaker businesses," he said. "It doesn't mean the person isn't a good craftsman, but it would force them to close their own business and work for another company, creating a pool of workers to pull from."

Agriculture

Similarly, the increased urbanization has directly affected the decreasing amount of farmland in Northwest Indiana.

"My family has farmed in Porter County since 1842," said Hebron farmer and businessman Mike Aylesworth.

"It looks like I will be the last generation to farm here. The number of farmers and farms will continue to dwindle because of the development and construction into the rural areas. The farmer's retirement is tied up in the land. If we want to retire, we'd have to sell the land, because that's what has value."

Prime farmland has many characteristics that make it attractive to developers, and significant growth is taking place in Lake and Porter counties.

Last year, Lake County ranked 69th of the 92 counties in the state in terms of population growth but fourth in the state in terms of single-family housing permits.

Porter County's population has been growing at an amazing clip, ranking it 21st in Indiana based on its growth rate and fifth among the 92 counties in the issuance of building permits for single family houses.

"Farmers will continue to consolidate and follow the age-old tradition of increasing in size for efficiency," Aylesworth said.

"It used to be that we farmed two hundred acres. Now, I farm 2,500 acres," he said. "I'm leasing land from people who are no longer interested in farming. It's rather sad that farms are being eaten up by urbanization, but it's also inevitable."

Aylesworth, who is president of the state's Corn Growers Association and a member of the National Corn Growers Association, said the price of corn remains low, which strains farmers.

The farmer said he lost money last year on corn that sold at $2 a bushel, slightly below his break-even price.

Twenty percent of the nation's corn, and 40 percent of its soybeans is sold overseas.

However, those countries that consume American corn and beans are in financial difficulties.

"Indonesia and the entire Pacific Rim are a good example," Aylesworth said. "They are a major importer of U.S. soybeans, but they've unfortunately cut back on their needs because of the cash crunch."

Aylesworth believes the price of corn will remain low unless there is a summer weather scare, a drought, somewhere in the country.

"There's an oversupply of corn," he said. "We know someone has to have dry weather for prices to improve. We're just hoping it's not us here in Indiana. There's an old saying in my industry that 'Weather got us into this, and weather will have to get us out of it.' "

Health

John Betjemann, president and chief operating officer of the Methodist Hospitals, said the Chicago teaching hospitals are eyeing Northwest Indiana as a new source of business.

He said the Chicago teaching hospitals are struggling as business goes to the suburbs. Outpatient clinics appear to be the future of health care, with several hospitals establishing those kinds of centers.

"Several of the hospitals in Northwest Indiana are talking to the Chicago teaching hospitals about developing some kind of alliance with them," he said.

"Methodist Hospital is talking to someone, but I can't disclose who at this point," Betjemann said. "The Chicago teaching hospitals are finding that some of their business is going to the suburbs and that's hurting them so they are sniffing around Northwest Indiana."

Already, Community Hospital has affiliated with a neurosurgery group from Columbus Cuneo Hospital, and St. Margaret's Hospital is doing an alliance with a cardiac surgery group from Christ Hospital.

But Betjemann said the affiliations will be good for consumers, especially those who are critically ill. Often, those who are very sick are not referred to specialists by their Northwest Indiana doctors. With these alliances, the very ill will have better access to specialized care.

Casinos

All the boats along Lake Michigan are viable and here to stay, said Rick Mazer, Empress Casino's vice president and general manager.

Empress in Hammond has been the leading casino since it opened in 1996. It also has been committed to the community, from employing local residents to utilizing area businesses and contributing to its community's charitable organizations.

Much of its success is related to its loyal clientele and its marketing strategy, Mazer said.

"Most of the people who come to Empress are seniors," he said. "There is an older crowd with more disposable income. The average income of our patrons is $40,000. The senior market is very key for us."

Mazer said the casino markets to seniors because of their disposable income and their ability to come to the casino during the daytime, as well as evenings.

Empress also has successfully used chartered bus runs to boost its clientele with a record 55 buses coming in one day.

Steel

The steel industry's painful declines in prices and orders may see a second-quarter rebound, but contract negotiations for both United Steelmakers and General Motor's United Auto Workers continue leave the immediate future of the industry in doubt.

Mike Gambardella, head analyst for JP Morgan, said the industry's struggles triggered by imports last year seeped into 1999 in the form of high inventory levels, which continued to stack up as orders declined but contractual obligations required companies to keep employees working.

Gambardella said the steel industry should see an improvement in the second quarter but will remain short of where it should be. Expectations for the second half of 1999 depend too much on a host of variables -- most notably steel and auto contracts -- to predict.

The worst-case scenario for steelmakers could occur if a steelmaker expected to strike doesn't, and General Motors strikes a couple months later. Gambardella explained that inventories built by steelmakers to hedge against a steel strike could be left sitting in the mills if the auto giant's work force walks out.

Gambardella called the scenario possible but not likely.

United Steelworkers spokesman Marco Trbovich said joint negotiations started Monday between U.S. Steel and Bethlehem Steel negotiators and bargaining chairmen for the United Steelworkers. The companies are the first to meet jointly in 16 years.

No other steelmaker has agreed to the Steelworkers' neutrality precondition -- requiring the company to remain neutral if unionizing efforts are made in a nonunion sector -- meaning those companies, including LTV Corp., Ispat Inland and National Steel, must wait until June before bargaining.

The union's contract with those companies expires Aug. 1.

Analysts have called LTV and Ispat Inland the most likely candidates for a strike.

Gambardella said the union's so-called pattern-plus bargaining will assure the best contracts for U.S. Steel and Bethlehem, as companies bargaining later will be asked to agree to the same contract as well as an additional concession of their own.

Trbovich said the union sought early negotiations with companies to maintain a "maximum united front" in trade cases and steel legislation. The Stand up for Steel campaign carried jointly to Washington by steelworkers and producers has proven successful in an assortment of cases filed against countries dumping steel into the United States.

"We're hoping a settlement will show our alliance is especially formidable," Trbovich said.

Companies have been less helpful in the union's efforts to gain legislation limiting steel imports. A bill that would impose quotas to reduce imports to precrisis levels of 1997 has stalled in the Senate.

November 1, 1998, The Times
Times Business Staff
The Times Board of Economists

Future Uncertain

An economic slowdown in Northwest Indiana could provide a temporary shot in the arm to local hospitals and health-care providers, said Methodist Hospitals President and CEO John Betjemann. Betjemann believes the economy will slow, and he bases that prediction on steel producers' order books being down.

"It's only a matter of time before they start laying people off. The question is what can the health-care system expect."

What usually happens, he said, is that hospitals experience a short-term surge in business because people who are being laid off will try to get their health-care needs addressed before their insurance coverage expires. The surge is only temporary though, so hospitals must rely on fattened portfolio earnings to carry them through, Betjemann said.

"Our losses during the down times have been somewhat offset by the investment yield of our stock and bond portfolios. Some hospitals have a nine-digit number in their stock portfolio."

Hospitals that provide charity care must dip into that portfolio to help subsidize free care, so they may not be able to weather an economic downturn as long, Betjemann said.

But the hospitals in Northwest Indiana are in "pretty good shape" to survive any slowdown, he said.

Managed care faces continuing challenges as it is under attack from the federal government, Betjemann said. Health maintenance organizations have economic incentives to cut corners as the federal government reduces the rates they are paid, he said.

"The question is whether an HMO, most of which are owned by for-profit groups, can be committed to shareholder earnings and provide quality patient care. That's a policy question that's behind the HMO attack at the federal level and by consumer groups. That's the question answered by the marketplace."

Steel's story no standup routine

Whether it comes from a steelmaker or a steel worker these days, the message is clear: It is time to stand up for steel.

David McCall, assistant director for the United Steelworkers of America District 7, said that despite the continued strong market demand for steel during 1998, domestic steelmakers are being damaged by a myriad of market forces that has resulted in the price of steel falling to unprofitable levels.

"There is no simple answer here to what has happened," McCall said. "But it is a very dark time for the steel industry."

John Kaloski, senior vice president for regional operations at National Steel, said that U.S. trade officials must stop the flood of foreign steel that is reaching the domestic market, millions of tons of which is being sold at "cut rate" prices.

"It's time to stand up for steel," Kaloski said, "We don't feel enforcing existing trade laws is protective. We just want a competitive situation."

Since January, steel imports to the United States have increased more than 25 percent from last year's record level, according to the American Iron and Steel Institute. In August, a record 4.2 million tons of steel was imported into the domestic market - helping drive the spot price of many steel products down 33 percent.

McCall said it is this overproduction of steel worldwide that has caused the price of steel to fall dramatically over the past several months.

For example, McCall said on average, it costs American steel producers about $240 a ton to make hot-rolled band steel. Recently, a Russian steelmaker was selling hot-rolled band steel for $160 a ton.

"The American steelworker is the most productive in the world," McCall said. "We cut 300,000 jobs and spent $50 billion on industry improvements during the past decade to get there. But what is happening now is we are being told to subsidize (less productive) countries with our dollars and with our jobs."

In response, domestic steel producers have already reduced production levels by more than 25 percent, idled blast furnaces, reduced overtime shifts and even pink-slipped workers.

"If something doesn't happen quickly, there is going to be some changes in the steel industry," McCall said. "And the major impact will be on steel-related jobs and jobs created by the spending power of steel industry workers."

Chemical industry sees disappointing results

Dan Wilson, manager of Whiting's Amoco Refinery, said the company's oil refinery business is well on its way to having another good year because the summer months managed to offset the cost of the March freeze when the refinery was down for three weeks.

"There's a glut of gasoline out there, and we're all going into the winter with a glut of inventory, the kind we usually have at the latter part of November" Wilson said. "It means a poor fourth quarter for us."

When Hurricane Georges hit the Gulf of Mexico, it adversely affected refineries on the coast, but the problems Wilson expected to see at the refineries there haven't materialized.

"Margins are kind of so-so," he said. "But they could have been worse."

Margin is the difference between the cost of crude vs. the cost of gasoline at the pump. A typical gasoline station operates on the supply and demand strategy. When prices fall, it normally means a station's sales volume isn't moving.

"From a refiner's standpoint, we look at cost of crude and price on the street, then after we subtract our expenses, the difference is our profit margin," Wilson said. "Our business is very seasonal. In the summer, margins are high. Those are the months when we make our money. In the winter, there's not a lot of driving. The margins are poor with some of it offset in winter by making heating oil."

Wilson said problems in the Asian economy and the lack of anticipated growth in the industry are causing the chemicals business to have an off year.

"There was a lot of over-building and everyone is wishing they hadn't because they're not getting the expected return," he said. "They see incentives and everyone rushes in, then when the pot has too many players, no one makes what they thought they would make."

The chemical industry had a poor third quarter and the fourth quarter will follow the same pattern, Wilson said.

"You have to be the low-cost producer and very efficient," he said. "Efficiency drives the industry. This is going to be a long dry spell for the chemical business, and it will last through the summer."

The state's shrinking labor force

Donald Coffin, dean of the Division of Business and Economics at Indiana University Northwest, said Northwest Indiana has seen employment climb less than 1 percent to 266,500 jobs in September 1998 from 264,500 jobs in September 1997.

The biggest increases were in service-producing activities, with the big gains in retail trade and business services. Construction employment and manufacturing employment were unchanged over the year.

Earnings in manufacturing were constant and unchanged when adjusted for inflation, except in petroleum refining, where earnings climbed 10 percent because of overtime, and in the chemical industry, where earnings dipped slightly because of decreased overtime, Coffin said.

Earnings in primary metals, which still is the major manufacturing industry in the region, remained steady with little hourly earnings growth, he said.

"There are more people who live there (in Northwest Indiana) and have jobs than there are jobs in Lake and Porter county," Coffin said. "If you look at residence, the number of people who live in Northwest Indiana and who have jobs has declined. The number of jobs in the region is going up, but the number of residents working or looking for work is going down. With fewer people in Lake and Porter county looking for jobs, it means they're either moving out of the region or it's an aging of the population issue."

In the state as a whole, the labor force has gotten smaller, he said. There are several reasons for the decline including the fact that Indiana residents are aging more rapidly than the population as a whole, the state has a low birth rate and immigrants aren't moving into Indiana.

During the fourth quarter, the number of jobs in the region should climb because of the heavy retail sales in the quarter, Coffin said. Manufacturing will hold its own but probably won't grow because output is growing and productivity is growing, so there's no need for additional workers.

Retailers expect mixed holiday results

David Winter, manager of the JC Penney store in Southlake Mall, said the third quarter softened a little in retail.

"The reason the apparel business all around was softer was the warm September," he said. "The third quarter is driven heavily by weather. The home business stayed strong in this market. There still is a growth of new homes and people moving into the area. Retail had a slow start this year, but it was really strong during the summer. When people move to a new home, they have to buy stuff like paint, carpets, blinds. The more people you have buying and selling homes, the better your home business is."

The ups and downs of the stock market during the third quarter didn't affect the retail industry, he said.

"If the stock market stayed down, consumers' concern for a problem economy and higher interest rates and higher unemployment might have an effect, Winter said. "If customers expect or fear a recession, then retail turns south and business would go down pretty quick. I don't see that at all at this point."

Fourth quarter is bringing mixed signals, he said.

"The holiday will be tough this year because we (retailers) lose a week between Thanksgiving and Christmas," Winter said. "It's tough to lose a week of Christmas sales."

He also predicted holiday apparel sales will be sluggish with customers buying more housewares and games as gift items, as well as electronics and computers.

"Giving apparel as a gift is on a slower trend and that probably will continue," he said.

Labor is getting to be a major issue in the retail sector as the low unemployment rate continues.

"In retail, you need so many temporary workers and people just aren't willing to do it," Winter said. "It's difficult to find people and certainly difficult to find qualified people. Qualified people are people who come to work, will work with a smile, and try to be nice, helpful and friendly to customers."

Retailers are starting to recruit holiday workers earlier, and they are offering them incentives like discounts and special family shopping days. Raising wages is done only selectively because no matter what the wage, the pool of available employees remains the same, Winter said.

Home construction still booming

Michael Miller, Apex Construction and Remodeling Co. president, said although there's been some slowdown in some sectors of the economy, the service industry continues to do well.

"Nationally, I've heard that things haven't changed much from last quarter to this quarter in the service industry," he said. "There's been a 3.8 percent growth in the building and remodeling industry, and they expect similar growth for the next nine years."

Miller said he recently attended a seminar of the National Association of Home Builders in Chicago where they talked about growth in the industry remaining at the same levels. He believes Northwest Indiana will mirror the nation, or perhaps, fare slightly better.

During 1997, overall remodeling activity was $118.6 billion, compared to new residential construction of $187 billion. The growth in total remodeling expenses since 1991 has been in the owner-occupied segment, which grew to 72 percent in 1997 from 63 percent in 1991.

"This area sometimes outperforms the statistics by a percentage or two," he said.

Meanwhile, Miller said he, too, sees growth in both counties, but believes Porter County may be growing at a faster rate than Lake County, although he hasn't seen any figures to support that.

"The new home construction in Porter County seems to be raging with dozens of new subdivisions under development," he said. "I believe it's more status quo in Lake County because Lake has gone through that development spurt and seems to be at status quo now."

Because of the boom in development in Porter County, Miller said he has begun efforts to expand his business to Porter County.

"But everything seems to be very tight geographically. For instance, the guys in Porter buy from suppliers in Porter and the guys in Lake buy from suppliers in Lake County. There's not a lot of crisscrossing. The construction and remodeling industry tends to be geographical. I understand that in some respects because I don't necessarily want to do jobs in Fort Wayne. I'd like to stay within the local area and the counties around here," he said.

Market is 'going to have to rest'

Don Nelson, vice president and resident manager of Merrill Lynch, Merrillville, said he has no idea where the stock market is headed.

"The market got carried away to excess and now it's going to have to rest," he said. "As long as investors keep their goals in mind, they'll do all right. They have to keep their perspectives in mind."

There are indications the healthy economy remains on track.

"The dollar is strong, it will get pulled out of the fire," he said. "Earnings are better than expected. People need to look beyond the market's highs and lows. The market is pretty fairly valued as it is now. There is no spike down. The question is where are we at?"

The market will take a little longer to come back to its previous strength because of the economic problems in Asia and in other parts of the globe, Nelson said.

"Northwest Indiana's agriculture and steel industries will take a hit because of the drop in the price of imports and the lack of a market for exports of corn and soybeans," he said. "We'll be impacted as much or more as the East and West Coasts, but we don't think it will be as bad as five or six years ago."

Bank merger frenzy slows to crawl

Last spring, it seemed as if the stream of mega bank mergers wouldn't end. In less than three months, there were four large combinations: Citicorp and Travelers Group formed a colossal financial services company; NationsBank combined with BankAmerica; First Chicago NBD joined with Banc One; and Wells Fargo & Co. and Norwest Corp. merged.

The robust merger activity began to slow, seemingly with a steep correction in the stock prices of most U.S. banks. Activity in the third quarter of this year, with 107 bank and thrift merger deals announced, was the slowest quarterly period since the first quarter of 1997, according to SNL Securities in Charlottesville, Va.

Institutions are not inclined to merge in a volatile market because the violent swings in share prices provide an unstable base on which to value both buyer and seller. Since most bank deals in recent years have used stock as a currency, a sharp decline in the market value of the combining institutions can quickly destroy much of a deal's announced value and may trigger walkaway provisions.

Despite the spate of mergers in recent years, there are still about 9,000 commercial banks in the United States.

In Northwest Indiana, mergers affect small locally owned banks because of the competition to find and keep skilled employees, said Chris Morrow, executive president and chief executive officer of Mercantile National Bank.

"(Large banks) look for your best key people, and they literally have the ability to go out and buy them," he said. "We have fixed costs, to some degree, where a multibillion dollar operation can come in and pay $10,000 or even $150,000 more for an employee, and it's easier for them."

The mergers also contribute to an atmosphere of "cannibalism" lending, Morrow said.

"We're kind of eating each other's clients up because we're all going for the best clients."

As an example, Morrow said a community bank may offer ABC Corp. a loan at 8 percent, but a large regional bank will offer the company a loan at 7 percent.

"If I want that loan bad enough, I'm going to have to come pretty close to that," he said. "Ultimately, I may keep the loan, but that's going to affect my cost structure."

As for the future of banking, Morrow believes there will always be a role for community banks, but "that role is going to be diversified among those who need a relationship with a local bank and those who don't."

'Still a good time to buy'

The devaluation of currencies throughout the Asian countries has spread like wildfire and continues to do so. The dilemma is primarily a banking and investment crisis linked to a collapse in investor confidence. All together, these countries comprise about one-third of the world economy, and the turmoil represents a serious threat to global prosperity.

Frank Pressel, owner of Valparaiso-based Century 21 Estates, believes area business owners and residents will have to wait and see how quickly the Asian problems hit home.

"I still believe it will be quite a while before we see any real slowdown in the housing market," he said. "It's still a good time to buy, demand is holding steady and there are still very many good buys out there. There is a lot of growth in Lake and Porter counties. There's a lot of construction practically everywhere you go, with commercial and residential buildings going up."

August 1, 1998, The Times
Times Business Staff

Steered Toward Home

"You're not going to eat him, are you?" Chris Herzog asked after the Porter County Builders Association successfully bid and won the grand champion steer Thursday night.

His 5-year-old sister stood next to the 1,265-pound steer and cried after the Porter County 4-H Fair Celebration Auction.

According to a builders association press release, the association decided to return the steer to Chris and his sister. The decision brought smiles.

The builders association, through the efforts of PCBA past President Mike Bell and PCBA Executive Director Sheryl Draschil, raised more than $4,000 in pledges from individual members in the two days prior to auction night.

"The Porter County Builders Association has been a major force in Porter County for over 25 years and the people of Porter County have always generously supported our industry and events," Draschil said in the press release. "We wanted to give something back and what better way than to support the youth of this county."

Individual members who supported the effort were: APEX Construction, Aubrey Construction, Big "C" Lumber, Centech Security Systems, Charlson Construction, Citizens Financial Service, Coolman & Coolman, Curley's Masonry, Dan Anderson Construction, Dodrill Real Estate & Construction, Doncorp Development Co., E/M Specialists, From's Supply Co., Generation Homes, Gilliana Pools, Good Hospitality Co., Lake Erie Land Co., MB Builders, McAllister Drywall, McKinney Electric, NBD, NIPSCO, Ozinga Ready Mix, Precise Painting, Prime Homes, Sand Creek Sales Development, SPESCO, Trustcorp Mortgage Co., Wagner Homes, Weiss Prestaining, Wheeler-Bowers and Worstell Construction.

April 5, 1998, The Times
Dawn Wolfe, Times Business Writer

Remodeling Market Predicted to Grow Even More in 10 Years

With $120 billion total remodeling expenses in 1997, and anticipated market growth of 3 percent to 5 percent a year over the next decade, all signs indicate that remodeling is a trend that's here to stay, according to Michael Miller, president of Apex Construction and Remodeling. The National Association of Home Builders Remodelers Council predicts that dollars spent on remodeling will actually exceed spending on new home construction by 2010.

November 9, 1997, The Times
Phil Wieland, Times Correspondent

Policy Washes Shower Deal Down the Drain

I really resent it when telemarketers, usually credit card companies, call my home and refuse to talk to my wife, saying they will only talk to me. So I could feel Kimberly Fentress' pain.

Fentress called Crafter Rebath in Highland for an estimate on installing a shower stall. The Rebath receptionist asked when a representative could come to the house to talk to Kimberly and her husband, Mark.

Kimberly explained that Mark's long hours running two car dealerships didn't leave him time to sit through some sales rep's pitch. When the receptionist insisted, Kimberly said she would find someone else. She got her appointment.

An hour before the appointment, the sales rep called and asked if the meeting was still on with Kimberly and Mark. Kimberly explained the appointment had been arranged with just her. In that case, the rep said, he wasn't coming.

"I was so mad," Kimberly said. “So, if my husband is dead, I couldn't get a shower surround? So many women do so much for themselves. They don't even need men to have babies anymore, and I need Mark to sit here while I get a new shower?

"I don't want $10,000 worth of windows. I just want a $250 shower surround. I never had problems like this before. I bought a swimming pool by myself, and the man had no problem selling me a $5,000 pool.

"I could see it if they needed our signatures for a loan application, but this was totally uncalled for. It steams me to think that because I'm a woman that's the only reason they wouldn't come out."

It's not that Rebath doesn't want to deal with a woman, company President Terry Smith said. It's just that they want to avoid what is known in the remodeling industry as "one-leggers."

"We go out to anyone's house on our time, at our expense for no obligation, and all we ask is that all the parties be there, whether it's the husband and wife, two brothers or whatever," Smith said.

"From our experience, what happens is we go out and the person will say they want to show this to the other party. If they can't find some time when both people involved can be together, given any time variation that they want, it's a waste of time.

"Every time we let someone convince us otherwise on the phone, we go out and are proven we were wrong to do so. Even if they say they make all the decisions, the other party might not be happy with orchid," he said.

Michael Miller, president of Apex Construction and Remodeling in Highland and a leader of several remodeling trade organizations, said he doesn't approve of the term or the practice of ignoring "one-leggers" and said some companies want both parties present to pressure them into signing a deal.

"They get the husband and wife there and give them a price that is obnoxiously out of range. Then they give them discounts for being married, for putting up a sign, because it's Tuesday or whatever, so that when they sign, they think they are getting a deal but they still are getting taken."

Smith said most people understand the policy after he explains it to them, but Kimberly said the experience "just caught me at the wrong time," and, if Rebath doesn't want to talk to her, she doesn't want to talk to them.

Now, Rebath can feel her pain.

October 26, 1997, The Times
Crista Zivanovic, Times Business Editor

Beyond the Bottom Line - Board Wish List: Planned Growth, Jobs

The TIMES' Board of Economists - a group of 19 area business leaders and one economics professor - has met twice, now, for quarterly meetings to discuss the local economy, and a theme seems to be emerging.

Despite the issues we address that affect the business sectors represented, most board members end up harking back to two general concerns: planning our growth in a more unified manner, including rejuvenating our infrastructure, instead of the prevailing me-first, piece-meal approach; and the area's low unemployment, including a concern that the unemployed are unemployable for lack of sufficient education or training - despite jobs available throughout the region.

Board members revived those same two general concerns again this month when The TIMES' business staff asked them to respond to a recent speech by Michael Moskow, president of the Federal Reserve Board in Chicago, who suggested that the four ingredients necessary to a continued dynamic Midwest economy include improved efficiency, increased trade, a skilled work force and low inflation.

Barbara L. Bibb, executive director of Consumer Credit Counseling Service of Northwest Indiana, who represents the consumer sector, suggested that a fifth aspect unidentified by Moskow but essential to the region's economic health was a commitment to rebuild the cities that ring Lake Michigan, bringing back homes and businesses to their centers.

Without viable cities, the surrounding communities eventually will suffer, too, Bibb suggested. And indeed, area planning and development experts have observed that the so-called "poverty line" once marked by the Little Calumet River is creeping south and east into Lake and Porter counties ringing Gary, Hammond and East Chicago, spurred by booming residential and business construction sprawling out to the south.

"As someone who's involved in an industry that brings older buildings back to life, and seeing this glacier of new malls and restaurants creeping south, I wonder what happens when we use up all that land, especially when we have vacant buildings in our cities that are being wasted," said Michael D. Miller, president of Apex Construction and Remodeling in Highland, who represents the service sector.

Other board members said that that low unemployment - and lack of a skilled workforce - could counteract Moskow's four positive economic aspects, eventually bringing our local economy to a standstill.

"Perhaps we should badger government to offer job-training programs now, while we have low unemployment but a healthy economy," suggested Stephen P. Adik, executive vice president and chief financial officer and treasurer of NIPSCO Industries Inc., who represents the utility sector.

"We always offer job training when the economy is in the tank and there are no jobs, anyway. There are people out there that if properly trained now could become employed while there are jobs to fill. If we lose them now, we'll be back in the traditional cycle that makes no sense."

May 18, 1997, The Times
Mike Beirne, Times Business Writer

Local Economy Cruising, not Flying

What a difference a few months makes.

Before the new year started, economists - the weathermen of the business world - forecasted continued slow growth and stagnant interest rates. In other words, a repeat of 1996.

But the Federal Reserve Board threw a monkey wrench in the machinery of expectations in March by raising the federal funds rate - the rate that banks charge each other for overnight loans. That triggered increases in the prime rate, credit cards and on down the line.

The economy still is sustaining its continued slowed growth as spring turns into summer.

Unemployment is low and wages are just beginning to rise, but inflation actually is running at an annual rate of 2.4 percent, down from 2.6 percent last year and 3 percent in 1995. Some prognosticators anticipate inflation to fall to 2 percent during the next 12 to 18 months.

Consequently, Fed Chairman Alan Greenspan had to defend himself recently against accusations that the Fed acted too hastily to beat prices down when the inflation threat didn't really exist. He made it clear that he wants even slower growth.

So the economy keeps chugging along and Northwest Indiana and Chicago are microcosms of the nationwide productivity gains that boosted companies' earnings during the first quarter.

Overtime as a way of life

For example, Gary Works was a big reason U.S. Steel Group squeezed out an extra million tons of steel from its existing equipment since 1995. This feat gave the company more steel to sell without