Biz Connect: Koehler Welding Supply, Inc.

Today’s business world requires a streamlined, efficient approach to everything.   Acquiring supplies is no exception. Koehler Welding Supply, Inc. caters to small businesses and larger corporations alike, taking care of supply related details and allowing those businesses to focus on their individual products. In business since 1929, Koehler’s has evolved to meet the unique needs of their customers becoming an integrated, diverse supplier and distributer.

“We’re a large, small business,” President Dave Ungru explains. They are big enough to be competitive and keep a deep stock, but small enough to individualize their approach to service, based on their customers’ needs. Koehler’s takes on the responsibility of purchasing and maintaining inventory for a variety of businesses and manufacturers. They directly place purchase orders, and over time, a plant’s supply needs become something that Koehler’s understands and takes into consideration when communicating with vendors. With flexibility and buying power that rivals “large” companies, Koehler’s small-yet-big approach equals net savings for their customers. The overall convenience of having only one supplier is attractive for large and small industries.

“We work to build relationships,” explains Ungru, “getting to know the customers and paying attention to their buying habits helps us anticipate how much product they will need in the future.” This reduces the customers’ wait time, eliminates extra freight costs, and increases efficiency. He and the other employees at Koehler’s personally communicate with vendors negotiating the best possible prices for their customers. If Koehler’s had a motto, it would be “whatever it takes.”

Although gas is their core product, there seems to be no product too large or small for Koehler’s to stock and deliver: Krylon, Gatorade, Wesson Oil, gloves, ear plugs, even toilet paper line their highly organized shelves. They are doing the legwork associated with supplies for plants and small businesses around the country.

One example of exceeding customer expectations includes working with local plant, Dow Corning, to develop and patent a glove to suit their specific needs. Now that glove is used in plants around the nation. Understanding the customers as well as the vendors is a result of long-term relationships and good communication.

To some it may seem as though Madison is in the “middle of nowhere,” but, really it is in the middle of a large business hub. Koehler’s supplies to plants both regionally, in Columbus, Carrollton and Louisville, and nationally, delivering as far away as California and Canada. They apply the “whatever it takes” approach to every aspect of their interactions with customers, down to the delivery.

Originally, Koehler Supply included automotive products, but in 2006, the business became two separate entities, next door to each other:  Koehler Tire and Koehler Welding, Supply Inc.   Since then, the welding supply business has grown to include a larger inventory and more employees. Sometimes in business, the name says it all, but that’s not the case with Koehler Welding, Supply Inc.  This business is much more diverse and offers a wider variety of services than the name indicates.

 Koehler’s has been a Madison mainstay for 83 years. Ungru cites relationships as the key to building and keeping a small business in today’s economy.  Koehler’s also strives to maintain its relationship with the community. Like many Madison area business, Koehler’s gives back, supporting the Clearinghouse non-profit, Ribberfest and youth soccer.

Learn more about them at koehlerweld.com.

Tax Increment Finance (TIF) and Schools

By Corey Murphy
Chamber & Economic Development, Executive Director
Madison, Indiana
May 16, 2012

Education is critical to community success.  Important decisions that affect the quality and sustainability of Madison Schools will need to be made by the local elected school board.

Tax Increment Finance (TIF) is not an option for the schools because state statute prohibits using TIF funds to help pay teachers or other school costs. Madison Schools' funding challenges are primarily within the general fund (i.e. teachers pay).  The general fund is supplied by the state of Indiana, not local property tax revenue.

The slide show located on the school web site (http://www.madison.k12.in.us/) does not mention Tax Increment Finance (TIF) as a factor in the schools' funding challenges.  Declining state support and declining elementary student population are the two primary
reasons for the schools to consider reorganization.

TIF is an important economic development tool as is education.  Both support our community's competitiveness.

I wish the schools well as they chart a new course for our local students and look forward to continuing our partnership.

Biz Connect: Madison Municipal Airport

Sometimes the most vital elements of a community are a little off the beaten path. Take the Madison Municipal Airport for example. Although it is about four miles west of the central business district of Madison, it is one of the major keys to business development. Many high profile visitors have recently received a warm welcome at the Madison Airport: Hanover College President Sue DeWine, racecar driver A.J. Foyt, and Governor Mitch Daniels to name a few. In fact, flights are coming in and out of Madison every day, the majority of which are business related.

While many area corporations benefit from the public airport, small business owners also enjoy this facility. In fact, four Madison business owners have made the Municipal Airport their home-base. Cliff Robinson – Aerobatics; Ralph Rogers – Rogers Aviation; Mark Wilkerson – Aero-Color Paint and Restoration; and Jack Olds –and Over and Under Crop Dusting and Aircraft Services.  Tourists and long-time Madison residents alike can gain a new perspective on the city by taking a plane ride or even flying lessons at the airport.

The airport board values aviation education. To help encourage youth interesting in flying, the board recently established the Riley Aviation Scholarship Fund for aspiring pilots. Plans are in the works to set up flight simulation software at the airport, and the fund is now augmented with three $50-dollar awards from King Schools, which will renew annually. 

The airport is also essential to the Air Methods medical emergency transport service in Trimble County.  In the event of bad weather the helicopter must be stored, and a quick flight to Madison meets that need while keeping the helicopter ready to serve the community almost immediately after the storm has passed.  “The Madison airport is only a ten minute flight from the Air Methods landing pad,” said Debbie Crawford, Air Show Coordinator. The helicopter can also refuel at Madison, a great alternative to refueling in Louisville, which would put them out of service for a longer period of time.

Even though Bowman Field is only about 38 miles away, many Louisville residents choose to store their aircraft in Madison because of the convenience and low cost. “Indiana is favorable to aircraft ownership because of the low registration fees,” said Dick Goodman President of Madison Chemical. This is extremely attractive to business owners as is the facility itself.

The airport is the “front door” of the community, and we get many compliments about our facility,” said Goodman. For visitors looking to retire or relocate to Madison, the airport is the first and last thing they see.   

Within the past two decades the local government began to see the cosmetic importance of Madison’s “front door,” and gave the facility a makeover. Going from essentially a “double-wide” trailer, the Madison’s airport is now a modern, multi-room facility complete with meeting room, pilot lounge, kitchen, and attractive waiting room with a vaulted ceiling and an abundance of natural light.   

Currently, about 35 hangers are in use on the airport property with 54 aircraft based on the field. This includes single engine, multi-engine and jet. The transferrable land lease agreement sweetens the deal for those in the market for aircraft storage; in Indiana there are not taxes on the hanger itself and the fees are minimal.

The Chicago Airport District Office has said we are a “model airport,” said Rogers. The 5,000 by 75-foot runway and 1,400-foot medium intensity approach lighting system can accommodate a range of small to large aircrafts including Citations, Falcons and Learjets. There are about 13,000 take offs and landings there each year enabling not only corporations but also supporting local agriculture, sports and travel. Clearly the airport represents a key component of our local infrastructure.

Economic Development that Moves Us Beyond the Recession

By Kathy Huffman, Workforce Development/EcO15 Coordinator

Economic Development Partners, Madison, IN

May 1, 2012

Most communities feel they, singularly, have been hardest hit by the recession.  However, when Mr. Jeff Finkle, President and CEO of the International Economic Development Council, came to town he suggested that we, Madison, Indiana, located along the Ohio River in Jefferson County, are “within a stone’s throw of normal."   He reassured us the recession hit everyone and we are doing OK.  In highlighting some promising strategies for economic development efforts to counteract the effects of the recession, Mr. Finkle identified several top strategies that our community has already embraced. 

Economic development efforts that move communities beyond the recession include a strong focus on business retention, keeping current companies in place in the community.  Nationally that is exactly where 50 % to 70% of economic development efforts are focused.  Just as the recession was taking hold, Economic Development Partners of Jefferson County (EDP) committed to a business retention and expansion program to identify barriers of growth that could be overcome at the local level.  Listening to company executives in a systematic interview process identified a gap between workforce skills and the skills necessary to work within today’s high tech workplace.

Considering the large investment in technology, robotics and computers by companies in all industry sectors one should heed Mr. Finkle’s suggestion that “all companies are now technology companies."  Within this framework there is a transition in skill sets for the emerging workforce to learn.  Through the EcO15 initiative in Southeast Indiana ten counties, including Jefferson County, have developed strong partnerships between employers and educators to build the pipeline of local talent.  For example, pre-engineering and biomedical classes are now available throughout the region supporting the emerging fields of information technology, engineering and healthcare. 

Moving beyond the recession requires regional partnerships like EcO15 but the extent of such partnerships in Jefferson County is much broader.  Leveraging our community through regional partnerships offers an opportunity to expand economic development efforts exponentially.  Aligning EDP with the Chamber of Commerce enhances efforts for both organizations.  Regional partnerships include the South Central Indiana Economic Development Group, Indiana Economic Development Association, Regional Small Business Expo, Indiana Chamber Executives Association, and collaboration with the Mid-America Science Park. 

In response to the pertinent question Mr. Finkle asked “do our economic development efforts move us forward or have us trailing what is an ordinary economic development cycle?”,  here in Madison and Jefferson County, we should be pleased we are indeed on the right track toward advancement.