Features
 Current Features
 Past Features





Feature Story - March 2004
Gains in Education, Infrastructure, Health Care
Indianapolis Shifts Into High Gear

by Craig Barner

In years past "Naptown" was a tag for Indianapolis because of the city's sleepy pace of life outside its famed speedway.

Forget the name when it comes to construction. Indianapolis has long been on the move, and data for the metropolitan area show an industry cruising in high gear.

The dollar value of construction starts in 2003 went up 12 percent over the previous year to $5.2 billion, according to data from the Dodge division of McGraw-Hill Construction.

advertisement

"From a construction perspective, Indianapolis is one of the hottest markets in the country and certainly in the Midwest," said Rob Palmer, executive director of the Associated General Contractors of Indiana Inc. in Indianapolis.

Indeed, a recently commissioned study has projected the amount of planned construction will result in a shortage of 6,500 skilled craft workers by the summer of 2005, according to the Indiana Construction Roundtable Inc., an Indianapolis-based nonprofit organization of construction consumers. The report cites the $975 million Midfield terminal project at the Indianapolis International Airport, as well as others, for the possible shortage.

"Indianapolis is looking at the same level of percentage increase [in construction] that Atlanta saw when it landed the [1996] Olympic games," said Gary Price, executive director of the ICR.

One initiative to attract workers includes the launch of a Web site to entice young people and out-of-state workers to a career in construction in the Hoosier State. In addition, a coordinated effort will be initiated soon to reach out and provide information on construction careers to public and vocational school students, laid-off workers and prisoners.

Indiana already enjoys a low 4.7 percent level of unemployment, according to the Indiana Department of Workforce Development. By comparison, the nation's unemployment rate stands at 5.7 percent, the U.S. Labor Department says.

Huge Jump in Education

Data show vigor in multiple areas, especially education construction. Starts doubled in that area in 2003 to $700.1 million.

The jump is mostly attributable to the inception of some elements in the upgrade and expansion of the Indianapolis Public Schools, an overall $832 million project expected to last through 2011, said Deb Kunce, program manager for Schmidt Associates Inc., the Indianapolis-based program manager. The project, which is profiled in this issue, involves renovations to existing schools, new construction and other elements.

Also noteworthy is the $146 million project in north suburban Carmel, where the Carmel Clay Schools district has seen nearly 50 percent growth in enrollment since the early 1990s.

In higher education, Indiana University-Purdue University Indianapolis is shedding its reputation as a commuter school and poor sister of the flagship Bloomington campus. Student enrollment and student housing are increasing, and IUPUI has five projects under way, two of which are profiled in this issue.

Long an Indianapolis stronghold, health-care construction went up 65 percent for the year, to $290.6 million.

Clarian Health Partners Inc., a partnership of Indiana University Hospital, Methodist Hospital and Riley Hospital for Children, is driving the increase with the $118 million hospital and medical-office complex in Carmel and the $74 million hospital and office complex in west suburban Avon. Also noteworthy were three Indiana University School of Medicine projects downtown, including a $74 million research facility.

An estimated $1 billion in construction in the related life-sciences area has been completed downtown since 1995, said Terry Sweeney, vice president of real estate development for Indianapolis Downtown Inc., a nonprofit firm promoting the city. The huge jump is likely attributable to the presence of medical-products giants - Eli Lilly and Co., Guidant Corp. and Roche Diagnostics - and the IU School of Medicine, reportedly the second-largest teaching hospital in the nation.

And Indianapolis intends to increase its share of this market with BioCrossroads, a public-private effort to boost investment in the life sciences.

"If you're a biotechnology-type of firm, we have a great deal of momentum and have local partners, all within 2 mi. from each other in downtown," Sweeney added.

Lilly, the most active of all, has six projects under way, including the $156 million insulin finishing building in the Lilly Technology Center and two $100 million projects, the Drug Discovery Lab B28 and Lily Corporate Center B87.

"Lilly is undergoing record-breaking construction," the ICR's Price added.

Industrial, Infrastructure Increases

Industrial construction and infrastructure projects are also enjoying strong activity.

Warehouses went up 30 percent to $160 million, including the $28.7 million CNH Global Distribution Center in Lebanon and a $20 million warehouse and distribution center in Plainfield.

Long a warehousing and distribution hub, Indianapolis might see still more activity in the area because of the repeal of the state's inventory tax, the AGCI's Palmer said.

"It's possible that the anticipation of that might have given a slightly greater bump to warehousing construction," he added. The repeal has not yet taken effect.

Highway and bridge construction is hot and provides a foretaste of construction to come at the airport. Bridges went up 247 percent to $109.8 million and highways 29 percent to $133.7 million.

The Indiana Department of Transportation has opened five separate contracts, ranging in value between $23.1 million and $33.9 million, to rehabilitate or build new bridges or culverts on Interstate 70 or Interstate 465.

In water management, a $25 million contract was awarded in mid-January to Fishers, Ind.-based Bowen Engineering Corp. for a flow equalization basin, said Jed Holt, president of the firm. The project, which is part of the $1 billion overhaul of the antiquated Indianapolis sewer system, will help prevent the flush of sewage into the White River.

The Environmental Protection Agency-mandated project could last 20 years, Holt said.
So far about a dozen of 130 flow-regulating stations have been built, and retention basins, plants and tunnel are envisioned.

All that heavy work is being balanced with the opportunity for cultural refreshment, such as the $105 million expansion of the Central Library in the Indianapolis Marion County Library system and several museum projects.

Indianapolis Life

Booming Indianapolis is increasingly attracting people from the suburbs as a place to live.

Nineteen condominium, townhouse or apartment projects are under way, especially in the popular northeast quadrant.

"Since 1995, when the Circle Center [mall] was built, we have the amenities and authentic urban lifestyle," Sweeney said.

Addressing these opportunities and problems to come with growth will be addressed in Regional Center Plan 2020, an urban planning document that was expected to be released in late January or early February.

Cruising Indianapolis (in millions)

Indianapolis is red hot. The city saw a 12 percent increase in construction starts in 2003.

 

2000

2001

2002

2003

%ch. 03/02

Total Nonresidential

$1,233

$1,648

$1,273

$1,798

+41%

Total Residential

$2,427

$2,904

$2,770

$2,758

0

Total Infrastructure

$458

$341

$579

$642

+11%

Total Construction

$4,117

$4,893

$4,623

$5,197

+12%

Source McGraw-Hill Construction

 

 Click here for more Features >>


 


Sponsors

© 2008 The McGraw-Hill Companies, Inc.
All Rights Reserved