CDC learns about Schlatter's, Inc. company, history

The founder was “a real innovator,” according to his son, who made speciality machines for the Francesville Drain Tile Corporation (Fratco), and for then local VonTobel Lumber Company, which at the time had been working with Owens-Corning blowing fiberglass tanks in Valparaiso. The company turned from general machining to the water-management field, beginning when Richard Overmyer of Fratco approached Pete Schlatter, telling him that Fratco needed outlet guards and tiles probes. Schlatter began to produce these items. It proved to be quite successful (and the company still makes these products). The water-management-accessory division became an important part of the family business, and the Schlatter name became well-known in the drainage industry.

In 1973, a representative of a Dutch company approached Pete about being a machine dealer for the company. Pete declined, but suggested that Ron would be interested. Ron flew to Holland and became a dealer for Barth Holland. Next, Schlatter’s became a dealer for the Ohio-based Buckeye Company for Indiana, Illinois, and Wisconsin. About this time, Pete Schlatter designed and built a two-wheeled “Foo Mobile”, inspired by the comic Smokey Stover. The company made and sold a couple dozen of the models. Lasers soon became an important part of the business. Downturns in the late 1970s and 1980s hurt, but side work, including processing steel, kept the company going.

Then, in the early 1990s, Ron began a professional relationship with John Wolfe, an Ontario manufacturer, selling the self-contained drainage plows that Wolfe produced, machinery more cost-effective than open-trench machines. This has become a primary focus of Schlatter’s, Inc., along with the GPS technology that they have handled since the earliest days of GPS. In adding these components to the business, the company let the accessories business slide, but this side will likely be a focus of future growth.

Mr. Schlatter has three children working in the family business. He said the “future is very bright,” but it won’t always be like this. In addition to selling and servicing machinery and the GPS business, the company has three projects under development that will help to diversify, strengthen, and grow Schlatter’s, Inc.

Schlatter also thanked the CDC and its director Nathan Origer for what they do for the county, noting that his wife is a teacher who is particularly concerned with keeping the local economy vibrant to ensure a healthy school enrollment.

Executive Director’s Report:

Strategic Relationships: Among other meetings and events, the director attended the K-IRPC executive-commission 2013-budget meeting. He reported that other than a sizable decrease to transportation (Arrowhead Country Public Transit in Jasper, Newton, Pulaski and Starke counties), grant funding for the agency would not change much. After the meeting, K-IRPC executive director Edwin Buswell raised the prospect of using some of the agency’s non-appropriated funds to re-introduce the community development planner (a position previously held by Origer) to better serve member counties on economic-development and land-use planning efforts. He also wants to help to fund regional projects, including the Comprehensive Economic Development Strategy, or possibly a business incubator or region-wide internship program.

Infrastructure: The Advisory Plan Commission (APC), as requested, rezoned the former Anvil and Saw property west of Winamac. The T&S Recycle company then received its loan from the Revolving Loan Fund to purchase and move to the property to begin operations there. In the wake of this decision, the APC offered a grace period for landowners to appeal the zoning designation of their properties if they wish, with a waiver of the fee.

Business Retention/Expansion and Entrepreneurial Development: The director visited a number of local businesses in the last two months: Schlatter’s, T&S Recycle, K&B Manufacturing, Leman Custom Cabinets, Apple Blossom Honey Farm (ABHF), and Fratco. In his meetings with ABHF and T&S, he was able to set up a partnership between the two companies. He also plans to visit a second cabinet maker in Francesville, MSD Cabinetry.

Origer arranged for Ron Gifford, of the Northwest Indiana Small Business Development Center, to speak to the Winamac Kiwanis about the services he can provide. Gifford had previously spoken at the library as part of the Year of the Entrepreneur.

Marketing: Origer attended the monthly Rural-and-Rustic meeting. The group is being inducted into the Society of Innovators of Northwest Indiana.

Professional Development: Origer reported on attending the Indiana Economic Development Association’s fall conference. County commissioner Tracey Shorter attended the second day of the conference, which included sessions for elected officials. Gubernatorial candidate John Gregg and lieutenant-gubernatorial candidate Sue Ellspermann addressed attendees.

Other: The director met with teachers at both high schools in the county regarding a business-plan competition for students, and appeared in classes at both schools as part of Junior Achievement.

Workforce Development: Origer met with Greg Podell, president of GalFab, and Jan Bailey of Ivy Tech Corporate College, to discuss training possibilities at the factory.

Pulaski County’s unemployment rate was 6.8 percent in July and August (468 and 454 unemployed people, respectively), second-best in the region. The director estimated a real unemployment rate in August of 7.83 percent or 12.04 percent - between 532 and 857 out-of-work and underemployed potential workers, depending on which calculation is employed.

Financial Report: At the end of May, over $45,411 remained in PCED’s budget. The entire CEDIT Fund had a balance of about $1.972 million not appropriated. Board member Dave Zeltwanger expressed concern that this could be seen as “low-hanging fruit” by the county. Discussion ensued, including the use of CEDIT money to pay down the jail lease and the income the jail brings in from out-of-county prisoners. The director showed how much money had been appropriated for all uses from the CEDIT Fund for 2013, offered a liberal forecast for additional appropriations and 2013 CEDIT revenues, and offered a very rough end-of-2013–balance prediction of $1.6 to $1.7 million. He expressed hope that adequate funds would be available in the next two years for proposed economic-development projects. The balance of the Donation Fund was $2,333, and the Revolving Loan Fund (RLF) had a balance of about $28,000 - T&S Recycle having received its loan. All borrowers continue to repay on time. Origer reported his understanding that the county had hired an attorney out of Merrillville who specializes in bankruptcy to pursue reclamation of some of the RLF money lost in the Chesapeake default.

Priority List and Monthly Calendar: Forthcoming events on the director’s schedule were reviewed. Origer will join his counterparts from Newton and Starke counties to meet with representatives of the Northwest Indiana Forum and Ivy Tech - Northwest (IT-N) to discuss the relationship between IT-N and the four rural counties in the region. They will specifically discuss how underserved the four counties, which often rely on other Ivy Tech regions, are by their official Ivy Tech region.

On Oct. 17 he was scheduled to meet with the president of the Valparaiso-based Regional Development Company (RDC); RDC is an SBA-504 lender, which allows it to partner with small businesses and local banks. (Francesville-based Alliance Bank participates in the program.) RDC provides low-cost financing for business development. Former Pulaski County CDC executive director Dan Dolezal has served on the RDC’s loan committee. Later in October and in November, Origer will return to local classrooms for more Junior-Achievement sessions.

Old Business

Brownfields Assessment (K-IRPC): Whether K-IRPC will apply remains to be seen, but Origer asked for submissions. No new sites were presented.

2012: Year of the Entrepreneur: Origer intends to schedule Peggy Hosea from the Purdue Center for Regional Development, and Ron Gifford back to Pulaski County; this time having Hosea speak in Winamac and Gifford in Francesville.

OSHA 30 training: Dates for training have been set: Jan. 9-11 and 17-18. The Braun Corporation has agreed to allow the use of a conference room for the classes. About 10 of the 20 seats are already reserved. Origer has already disseminated information to local employers, and will send a reminder.

Student business-plan competition: After meeting with teachers at West Central and Winamac, Origer concluded that because of scheduling issues, the program will first be piloted at Winamac. The business class that will be involved in the program already has a business plan component on which teacher Brandon Burgess can expand. Origer will reach out to local professionals to solicit volunteer time reviewing plans with students and judging finished plans. Ron Gifford, seeing value in the project, has volunteered to invest time into it, too. Origer expressed hope that after a successful first run, a second pilot year could occur at both schools. Assuming continued success, the program could be opened to any interested student, and not just be incorporated into particular classes, in the 2014-15 school year.

ITC (MidWest Indiana)/Northwest Indiana Forum: Noting that the county council had appropriated sufficient funds for 2013 dues for both regional groups, and acknowledging the previously discussed benefits of both, Origer encouraged embracing northwestern Indiana while retaining relationships toward the southwest. The CDC board voted in favor of the director’s recommendation.

Election-2012 debate: The director presented to the board two surveys, one for local-office candidates and one for state-level candidates, for the upcoming election. After brief review and discussion, the board voted to approve the survey and for Origer to distribute it to candidates. The director will contact local media to have them publish results, and will distribute them electronically, too.

New Business

Executive Director’s Review: An executive session to discuss Origer’s performance was set for Tuesday, Nov. 13 prior to the regular monthly meeting. The director will distribute the review sheet to the members of the executive committee well in advance.

2013 meeting schedule: Origer asked that members decide between calendars presented, or offer an alternative. The board voted in favor of the second schedule presented by Origer. The agreed-upon calendar cuts one regular meeting from the year and replaces it with an executive-committee budget meeting and pre-sets some meetings as short-agenda sessions.

Indiana Economic Forum: Origer will attend the annual meeting of the Indiana Economic Forum, at the Indiana Municipal Power Agency’s offices in Carmel. The focus of the session is “A State of Innovation.”

Chamber Tourism appropriation, second payment: Origer presented a budget from the Chamber of Commerce spelling out how the first $2,000 installment has been spent and what other plans the Chamber has for the funds. Discussion ensued, with Origer expressing hope for the Chamber’s direction. The board voted to disburse the remaining $2,000.

Quarterly newsletter 1-3: Origer presented the draft of the third edition and asked for input on completing it. Discussion ensued, and suggestions offered.

Public Access Seminar report: Origer briefly updated the board on what he and county commissioner Ken Boswell had learned at this seminar, which covered topics including Indiana’s Open Door Law and public-records access.