INDIANAPOLIS — The top leader of Indianapolis-based drugmaker Eli Lilly and Co. will retire as chief executive officer on March 31 and as the chairman of the board at the end of 2008, the company said Tuesday.

Sidney Taurel has been Lilly’s CEO since July 1998 and chairman since January 1999. President and Chief Operating Officer John Lechleiter will take over Taurel’s CEO position on April 1, the company said.

The board unanimously voted to elevate Lechleiter on Monday, Lilly said in a news release.
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Taurel joined Lilly in 1971 as a marketing associate in Eli Lilly International.

Lechleiter joined Lilly in 1979. He has served as president and COO since October 2005. He will continue as president in addition to his new role of CEO.

Sales of existing homes in the United States fell in October for the eighth consecutive month, with median home prices falling by a record amount, the National Association of Realtors reported Wednesday.

Sales of total previously-owned homes, including single-family, townhomes, condominiums and co-ops, eased by 1.2 percent to a seasonally adjusted annual rate of 4.97 million units in October from a downwardly revised level of 5.03 million in September.

By region of the country, existing-home sales were unchanged at an annual rate of 900,000 units in the Northeast, but down 1.7 percent in the Midwest and 4.4 percent in the West.

In the South, sales were also unchanged at an annual pace of 2. 03 million units in October.

As sales decreased, prices plunged. The median price of existing homes fell to 207,800 dollars in October, down 5.1 percent from a year ago, marking the biggest year-over-year price decline on record.

The median price is the point at which half of existing homes are sold for more and half sold for less.

Meanwhile, total inventory of unsold homes rose 1.9 percent at the end of October to 4.45 million units in October. At the October sales pace, it would take 10.8 months to eliminate the overhang of unsold homes, a record length of time.

The huge inventories of unsold homes could put further downward pressure on prices, analysts say.

The once-sizzling housing market has cooled off since last year. Falling prices and rising interest rates have made many borrowers hard to keep up with their mortgage payments.

As late payments and foreclosures are soaring, banks and other lenders have tightened credit standards significantly. Analysts are worried that the tightening credit and the deepening housing slump could be enough to drag the economy into a recession.

Carson City, NV– Nov. 2007 — Nevada ranked second in the Small Business & Entrepreneurship Council’s 12th annual ranking of states according to their public policy climates for small business and entrepreneurship in the “Small Business Survival Index 2007.”

Nevada ranked behind South Dakota and in front of Wyoming, Washington and Florida in the study released this month according to the Nevada Commission on Economic Development (NCED).

The index is designed to help political leaders and policymakers understand whether their state truly has an environment that helps entrepreneurship and small business growth.

“This report provides outside, unbiased acknowledgement of Nevada’s business friendly environment,” said NCED Executive Director Tim Rubald. “It provides us with another tool when we’re talking companies that considering moving their operations to Nevada.”

According to the SBE Council, the study has been expanded again this year. It includes taxes, various regulatory costs, government spending, property rights, health care, energy costs and more.

The 2007 Index considers 31 major government-imposed or government related costs affecting small businesses and entrepreneurs. Those costs are added together for an overall rating. The entire report is available at http://www.sbecouncil.org.

This report is considered one of the most comprehensive gauges available of how state and local policymakers treat businesses.

Nevada has held onto its second place ranking for the past four years. It continues to rank well above other western states.

2007 2006 2005 2004

Nevada 2 2 2 2

Arizona 15 15 17 17

Hawaii 42 44 46 49

California 49 49 50 50

While countless issues play into the decision-making that goes into business location and investment, public policy plays a vital role. Government costs impact where people live and work and where they seek opportunity.

The top 25 states in the 2007 SBSI had population growth of 8.2% over the research period. That was almost double the growth of the bottom 26 states which registered only 4.1% population growth.

People go where the jobs are and job growth has occurred faster in the states at the top half of the study.
NCED Information

The Nevada Commission on Economic Development is the state agency providing services, support and assistance to communities. NCED helps communities diversify and develop their economies so they remain viable. For more information on the NCED visit www.expand2nevada.com or call 775-687-4325.

They all started their own businesses and along the way made sacrifices, took risks and learned some harsh lessons, but they forged ahead and built some of the country’s fastest-growing Hispanic-owned companies.

Leading Hispanic entrepreneurs gathered in Los Angeles on Thursday as part of the Hispanic Business CEO Roundtable to share their stories of building a company from scratch and what it takes to make a business a success.

More than 150 people attended the daytime event, which was part of the 17th Annual Hispanic Business Magazine EOY® (Entrepreneur of the Year) Awards Gala, which honors some of the country’s best and brightest Hispanic businessmen and women.

“Research tells us that first and foremost to having a successful new business is industry knowledge,” said Tom O’Malia, director of the University of Southern California’s Lloyd Greif Center for Entrepreneurial Studies and moderator of the CEO roundtable. “People that are successful in starting a new business know where it’s going, know where it’s been and aren’t afraid to start small.”

They’re also adept at managing risk, panelists agreed.

“In 2007 we were awarded a $100 million contract,” said Nina Vaca, a panelist and founder and chief executive officer of Pinnacle Technical Services, an information technology solutions provider. “I sat across the table and thought, I’ve waited 10 years to sign a contract like this, but in order to deliver I have to delve into equity, so I’ve bet the farm this year and it’s really scary. So it remains to be seen. You have to be a risk taker.”

Another panelist, John Molina, chief financial officer of Molina Healthcare, a multi-state HMO, told guests that one of the biggest risks and challenges he and his siblings faced was having to take the family business public. All five of the Molina children, at one point, worked for the company and helped the business grow, but then several competing needs arose. Some siblings wanted out of the business, and as the company grew in value, so did the tax liability. And lastly, the firm needed to expand.

While it may be an attractive financing option for many companies, experts caution that IPOs are a long, arduous process with significant long-term implications for a company.

“Every avenue we looked at there was a challenge. What we finally decided to do was to go public. The most important thing for us was control and when we went public the family still had control of the business,” Mr. Molina said. “We have seen the company grow from $90 million to $2 billion.

“First and foremost, being an entrepreneur means taking a risk,” he added. “The one thing that separates the successful entrepreneurs from the unsuccessful entrepreneurs is they know how to manage that risk.”

Then there are those unforeseen risks that can destroy a thriving business.

Panelist Carlos Garcia, founder and chief executive officer of KIRA, a maintenance and construction services firm, nearly lost his business when two of his top-level managers embezzled half of his company’s capital. They also falsified financial statements that nearly cost him his firm’s only available line of credit.

“I didn’t know how I was going to pull it through. I was suicidal,” recalled Mr. Garcia. “I tightened my belt, addressed it one item at a time, and made it through. It was ugly because as entrepreneurs we’re trained to push as hard as we can on growth. It’s in our DNA. The ice under our feet is very thin as we run across it sometimes. I urge you all to triple check your financials.”

All panelists agreed that one of the hardest tasks facing Hispanic entrepreneurs is raising capital.

“There’s no doubt about it, access to capital is the biggest challenge,” said panelist George L. Pla, president and chief executive of Cordoba Corporation. “We’re very familiar with debt but not private equity. It could make a huge difference with growth of businesses. We just need to become more sophisticated.”

Another panelist, Fred Flores, president and chief executive officer of Diverse Staffing Solutions, summed up a solution for tapping capital in one word: “Diversification.” Too much concentration with one customer will limit your access to capital, he said.

Mega Input Data Services, Inc. a full service database management firm specializing in custom web application development, has donated a web application to the Greater Indianapolis NAACP #3053. Utilizing our MPLEX Content Management System, the new website showcases a new design and is 100% configurable through the administration tool. Please stop by and check them out.

Human Rights Campaign Foundation and National Gay and Lesbian Chamber of Commerce Release Diversity Guide for Small Businesses

WASHINGTON—Today, the Human Rights Campaign Foundation and the National Gay & Lesbian Chamber of Commerce (NGLCC) released “Small Business Basics: How Small Businesses Can Create Fair Workplaces for Gay, Lesbian, Bisexual and Transgender Employees.” The toolkit is a first-of-its kind resource to help small businesses provide equal benefits, employment protections and an inclusive work environment for all their employees.

UPDATE: To download the guide visit: http://www.hrc.org/about_us/small-business.asp

“Each day over 41 million Americans go to work at small businesses—which face unique challenges and opportunities in addressing diversity and inclusion of gay, lesbian, bisexual and transgender employees,” said Joe Solmonese, president of the Human Rights Campaign. “By releasing this guide, we provide practical advice to fair-minded small business owners so they can recruit and retain productive GLBT employees, as their big corporate competitors have done for years.”

“Oftentimes, small business owners and managers feel that their hands are tied in developing more inclusive environments for GLBT employees because of perceived cost and lack of human resource counsel. This resource outlines the business case for GLBT diversity efforts and offers suggestions that are within reach for small business owners.” said Justin Nelson, Co-Founder and President of the NGLCC.

“‘Small Business Basics’ provides model benefits and employment policies and offers suggestions for businesses to cope with high health-care costs. It also gives practical, cost-effective ideas for small business owners and managers on building inclusion, monitoring the work force and addressing problems and taking advantage of the increased opportunities for senior leadership to interact with employees that exist in small businesses,” said Chance Mitchell, Co-Founder and CEO of the NGLCC.

The NGLCC and Human Rights Campaign conducted a series of focus groups and one-on-one interviews with small business owners to understand what information would be most helpful in creating an inclusive workplace.

The Human Rights Campaign is America ’s largest civil rights organization working to achieve gay, lesbian, bisexual and transgender equality. By inspiring and engaging all Americans, HRC strives to end discrimination against GLBT citizens and realize a nation that achieves fundamental fairness and equality for all.

The NGLCC represents the interests of the estimated 1.4 million LGBT owned businesses. Through its affiliated network of 45 state and local chambers and business organizations, the NGLCC is the largest LGBT business development and economic advocacy organization in the country.

The automaker is planning to cut one shift each at several plants in the Midwest.
Chrysler LLC said Thursday it plans to cut up to 12,000 jobs, or up to 15 percent of its work force, as part of an effort to slash costs and match slowing demand for some vehicles.

The automaker will cut 8,500 to 10,000 hourly jobs through 2008 and salaried employment by about 2,100. It will eliminate shifts at five North American assembly plants and eliminate four products from its line-up.

As part of the new plan, shifts will be cut in Belvidere, Ill., Toledo, Ohio; Brampton, Ontario; Jefferson North in Detroit and a plant in Sterling Heights. Also, a shift will be cut at the company’s Mack Avenue engine plant.

On Wednesday, congressional aides confirmed that Chrysler would eliminate 750 jobs at the Toledo plant, which makes the Jeep Liberty and Dodge Nitro, and 1,000 jobs at the Belvidere plant, where Chrysler assembles the Dodge Caliber, Jeep Compass and Jeep Patriot. The aides spoke on condition of anonymity because they were not authorized to speak publicly.
Chrysler restructures, thousands of jobs cut

The cuts come on top of thousands of salaried job cuts that began Wednesday. Chrysler spokesman Mike Aberlich said about one-third of the company’s temporary workers will be laid off in the next few months along with other salaried workers. Aberlich didn’t disclose the number of workers that will be affected.

But on Wednesday, a person briefed on the plan, who also requested anonymity because the plan has not yet been announced, said that 1,000 salaried workers and 1,100 temporary workers - who work in engineering, finance, procurement and other areas - will be laid off.

The layoffs of temporary workers began Wednesday and will be completed by December. Salaried workers will be eligible for early retirement and separation packages beginning next month, the person said.

The cuts come in addition to the 13,000 layoffs Chrysler announced in February as part of a massive restructuring plan. Those cuts included 11,000 production jobs and 2,000 salaried jobs. The new round of cuts was expected to involve buyouts or early retirement packages similar to those made in February.
Chrysler CEO praises ‘revolutionary’ deal

The announcement comes just days after the United Auto Workers union ratified a four-year deal with the automaker. Chrysler became a private company in August when Germany’s Daimler AG (Charts) sold 80.1 percent of Chrysler to the private equity firm Cerberus Capital Management LP. Chrysler’s new chief executive Bob Nardelli has said the automaker is focused on raising cash for its turnaround.

Nardelli and Chrysler Vice Chairman Tom LaSorda didn’t elaborate on the layoffs Wednesday during a trip to Washington to meet with lawmakers and the Bush administration on energy legislation, including upgrades to fuel economy regulations.

Nardelli said the final decision on the cuts came Tuesday during Chrysler’s first board meeting as a private company. “Those are within the confines of the board and the board’s decisions,” he said of the layoffs

WASHINGTON - U.S. economic growth quickened in the third quarter to the fastest in nearly two years as booming exports and revived consumer spending offset a worsened real-estate slump, the government said Wednesday in an initial estimate.

U.S. gross domestic product (GDP) grew at a 3.9 percent annual rate in the July-September period, up from 3.8 percent in the second quarter and 0.6 percent in the first, the U.S. Commerce Department said.

For now, the data contradicted forecasts of a housing-related slowdown in the third quarter and offered a political boost for President Bush.

The report came hours before the Federal Reserve’s latest interest-rate decision. With this summer’s subprime mortgage crisis lingering, financial markets looked for the U.S. central bank to cut its benchmark rate by a quarter of a percentage point.

In the third quarter, the drag from the U.S. housing slump worsened as building of private homes fell 20.1 percent, compared to a decrease of 11.8 percent in the second quarter. Companies slowed their pace of new construction.

Exports of goods and services - a mainstay of U.S. economic growth this year - surged by 16.2 percent in the third quarter, more than double the rise of 7.5 percent in the second, the government said.

At home, Americans spent more on everyday items, services and durable goods like appliances, boosting consumer spending by 3 percent compared with 1.4 percent in the second quarter. Government spending also quickened.

Yet a private survey Tuesday put U.S. consumer confidence at a two-year low and GDP numbers are often revised as the government compiles more data. The next estimate is due November 29.

In a sign that could influence the Fed in the months ahead, a gauge of inflation rose.

The price index for gross domestic purchases, excluding volatile food and energy prices, increased 1.7 per cent in the third quarter after rising 1.5 percent in the second, the Commerce Department said.

NEW YORK — Caterpillar, the world’s biggest maker of bulldozers and excavators, says the U.S. economy may fall into a recession next year. Ford, DuPont and Intel disagree.

On Oct. 19, Caterpillar cut its profit forecast because of the U.S. housing slump and said the economy would be “near to, or even in, recession” in 2008, helping to U.S. stocks fall that day the most in two months.

But Caterpillar remains an outlier among U.S. companies. Many company executives have said that while near-record oil prices, a plunge in housing prices and continued mortgage defaults will cause the U.S. economy to slow, they will not push it into a recession.

“The consumer is concerned about rising energy prices, what’s going on in the credit cycle and the real estate market,” said Joseph Moglia, chief executive of TD Ameritrade Holding, a major online brokerage firm.

“I don’t believe they can have those concerns and not have some impact on what they’re doing. That does not mean we’re headed for a recession.”

A survey of chief executives released this month by the Business Council predicted that U.S. growth would slump to 2 percent or less next year but that the economy would avoid a recession, defined as two successive quarters of declining gross domestic product.

The group, which includes the heads of Fortune 500 companies including American Express, Procter & Gamble and General Electric, forecast that the U.S. economy would expand by 3.1 percent in the third quarter from a year ago, down slightly from the 3.8 percent pace recorded from April to June.

For 2008, “we’re assuming global GDP growth at about the same rate as 2007, strong agricultural business and no U.S. recession,” Charles Holliday, the chief executive of DuPont, said during an earnings conference last Tuesday. “We have no expectations of an uptick in demand from U.S. residential housing market this quarter or even next year.”

U.S. buyers of computers do not seem concerned about the economy, either, Paul Otellini, chief executive of Intel, said in an interview last Tuesday. “People are buying notebooks like they’re hot cakes, and companies tend to invest in technology in downturns,” he said.

Intel, the world’s biggest maker of computer chips, reported a 43 percent rise in third-quarter earnings on Oct. 16.

Jeffrey Immelt, chief executive of General Electric, appears just as sanguine about prospects for the U.S. economy. “Global: strong. U.S. housing: tough. But the rest of the U.S. seems fine to us,” he said in a conference call on Oct. 12.

Still, executives say they are counting on the Federal Reserve to cut interest rates to stimulate the economy. The Federal Open Market Committee, which is to meet Tuesday and Wednesday, lowered the target rate for overnight loans between banks by half a point on Sept. 18, more than most economists had forecast, to 4.75 percent. The cut was the first in four years.

“I am very optimistic on some of the actions taken recently, like the Fed,” Alan Mulally, chief executive of Ford, said this month in Wayne, Michigan. “Hopefully, the subprime will improve and housing will stabilize again. We also have a good, growing U.S. economy. There’s a lot to be positive about.”

Caterpillar remains pessimistic about the U.S. economy.

“We don’t expect big improvements in North America any time soon,” Caterpillar’s chief financial officer, David Burritt, said.

The worst U.S. housing recession in at least 16 years will lead to a 12 percent decline in North American machinery and engine sales this year, Caterpillar said

WASHINGTON – Elmer Huerta, MD, MPH, has been named the new president of the American Cancer Society, the first Latino to hold the position in the Organization’s 94-year history.

“I am very honored and humbled to assume the presidency of an organization dedicated to eliminating cancer, and making a difference in the lives of millions of Americans touched by cancer,” he said.

Dr. Huerta is a preventive oncologist and founder and director of the Cancer Preventorium at the Washington Cancer Institute at the Hospital Center. His clinic is one of only few centers in the nation dedicated exclusively to cancer prevention and control.

His popular one-minute radio segment “Cuidando su Salud” (Taking Care of Your Health) is syndicated to 120 stations in the U.S. and Latin America and is the only daily radio show produced by a Hispanic physician in the U.S that promotes health and disease prevention.

Dr. Huerta also hosts another daily radio talk show, “El Consultorio Comunitario” (The Community Clinic of the Air) that is broadcast from his office in the Cancer Institute. He co-hosts a nationally syndicated weekly TV show, “Hablemos de Salud” (Let’s Talk about Health), and serves as a medical commentator on Univision, Telemundo, CNN en Español and CNN Radio Noticias.

For the past two decades, Dr. Huerta has been committed to improving the quality of life for Latinos. His Spanish-language radio and TV programs are nationally and internationally syndicated, and he is regarded as a trusted source of medical information to the Latino community in the United States and Latin America.

Ninety percent of Dr. Huerta’s patients are Hispanic/Latino, and nearly all report having learned about the Cancer Preventorium through one of Dr. Huerta’s radio or television programs, which he says shows that patients are getting his messages about prevention and screening.

As he looks ahead to his year-long term as president of the American Cancer Society, Dr. Huerta said, “My goal is to help the Society be more aggressive in its messages and more creative in the use of new technologies, to communicate with all Americans regarding ways to decrease their risk of getting cancer.”