2011 annual report

Tri-State Minority Supplier Development Council 2011 Year In Review

Weaving Local Suppliers Into A Global Corporate Strategy

© 2012 TRI-STATE MINORITY SUPPLIER DEVELOPMENT COUNCIL // AFFILIATED WITH NMSDCPAGE 2


MissionTo create meaningful partnerships between corporate members and NMSDC certified minority-owned businesses that maximize mutual success.

Vision Minority-owned businesses thrive in our increasingly diverse and growing community.

For CorporationsTSMSDC membership provides company leaders with reliable information and streamlined access to certified, professional minority-owned business enterprises (MBEs) that provide the following:

• Extensive knowledge and expertise in multiple business disciplines.

• The drive to deliver business improvements and efficiencies.• A passionate commitment to economic and cultural growth

in Kentucky, West Virginia and Southern Indiana.

For Minority-owned BusinessesTSMSDC certification offers exclusive, in-depth educational opportunities to strengthen your business skills and build your professional network. TSMSDC certified Minority Business Enterprises receive quality introductions to corporations:

• Truly interested in developing a strong supplier diversity program.

• Committed to our community’s economic viability and the well-being of every citizen.

• Dedicated to ensuring suppliers have the opportunity to compete within an inclusive environment.

About the Organization

The Tri-State Minority Supplier Development Council was created by the Louisville Area Chamber of Commerce in 1972. Originally named Louisville Minority Purchasing Committee, the organization worked with five initial businesses (Brown and Williamson, Ford Motor Company, General Electric, International Harvester and Philip Morris USA) to identify bona-fide minority owned businesses with which to partner. In 1984, the organization began its affiliation with the National Minority Supplier Development Council and continued to expand business opportunities for minority-owned companies; to encourage mutually beneficial economic links between minority suppliers and the public and private sectors; and to help build a stronger, more equitable society by supporting and promoting minority business development.

Today, TSMSDC is one of 37 affiliate councils of the National Minority Supplier Development Council (NMSDC).

© 2012 TRI-STATE MINORITY SUPPLIER DEVELOPMENT COUNCIL // AFFILIATED WITH NMSDC PAGE 3



Dear Clients, Members and Friends of TSMSDC,

I find it interesting that two seemingly disparate economic trends actually harmonize quite well when

it comes to supplier diversity. The first is the push toward buying locally and supporting home-grown

businesses. The second is competing in and connecting with a globalized economy. I contend that our

work at TSMSDC is bringing those two economic factors together, with tremendous results.

Our 2011 Annual Report highlights how TSMSDC worked together with our MBEs and Corporate

Members to strengthen not only their positions as individual businesses, but to collectively contribute

to our nation’s economic recovery. For example, TSMSDC continued our commitment to nurturing the

development and long-term sustainability of MBEs in 2011 through innovative new programs such as

MBE University and bringing an NMSDC Centers of Excellence module to our region. These important

initiatives are among many we provide to help MBEs become more competitive locally, regionally

and globally.

TSMSDC’s Corporate Membership roster continued to grow in 2011, allowing us to engage the energy

of even more corporations committed to supplier diversity and economic inclusion. We appreciate

their generosity and applaud them for recognizing the value of doing business with suppliers that not

only perform well, but are also generating economic prosperity in the communities we serve through-

out Kentucky, Southern Indiana and West Virginia.

On behalf of the TSMSDC staff and board, we thank our Corporate Members, MBEs and community

partners for continuing to support our efforts with your knowledge, time and resources.

I look forward to our continued work together in 2012 and beyond, and I invite you to contact me at

any time with your ideas or suggestions.

Sincerely,

Ty Gettis

President & CEO



Highlights and AccomplishmentsAlthough socioeconomic indicators gave us reason to be a bit more optimistic about our nation’s economic recovery in 2011, many businesses in our region and across the country still faced challenges. TSMSDC and our colleagues at the National Minority Supplier Development Council found ourselves continually adjusting our sails as we navigated toward 2012. The staff’s commitment to reducing costs, along with certification and membership renewal of our dedicated MBEs and corporations, enabled the Council to maintain high quality supplier diversity services and programming throughout the year.

Events & Activities•CentersofExcellence - Six corporate members and

fourteen MBEs worked together throughout the year on capacity building, best practices and methods for securing procurement opportunities.

CorporationsBrown-Forman Corporation Commonwealth of KentuckyHonda of America Manufacturing, Inc.Jefferson County Public SchoolsToyota BoshokuToyota Motor Engineering & Manufacturing NA, Inc.

MBEsAmerica’s Finest Filters, Inc.D & D Consulting Services, Inc.HDDS, Inc.Houston-Johnson, Inc.L’Acquis Consulting Enterprises, LLCLB Manufacturing, LLCManufacturing Consultants International, LLCThe Mardrian Group Inc.Martin Construction Co.Nimbus, Inc.Plastikon Industries, Inc.The Reynolds Group, LLCShelby Industries, LLCT.E.M. Group, Inc.

•MBE-University - A new educational program sponsored by Honda of America Manufacturing, Inc. consisted of formal training classes for MBE firms. The program featured two levels; Track I for businesses in operation for less than five years and Track II for more established firms. The 2011 graduates of MBE-University were:

TrackIDonna Fox, Ink & Toner, USATony Salinas, Kentuckiana Enviro Oil Solutions, LLC

TrackIIMichael Lathon, AACON General Contractors, LLCSam Patel, HRS Hotels Group Inc.

•AdvancedEducationScholarships- TSMSDC, the Brown-Forman Corporation and Toyota Motor Engineering & Manufacturing North America provided full scholarships for MBEs Alice Houston, President of Houston-Johnson, Inc., Louisville, KY and Diane Lewis, owner of Action Facilities Management, Morgantown, West Virginia to attend the Kellogg program at Northwestern University. Scholarships were also provided to Lisa Jeff, President of L’Acquis Consulting Engineers, Indianapolis, IN and D. McGinnis Mitchell, CEO of National Diversity Solutions LLC, Lexington, KY to attend the Tuck School of Business at Dartmouth College in Hanover, New Hampshire.




•MBEOrientation- Five sessions were held for newly certified MBE firms to set realistic expectations, hear from a certified MBE who has used the council’s services and meet a corporate member who shared their procurement process and requirements for suppliers.

•MBECertifications- Certifications through the end of 2011, compared to the same period for 2010, have increased. Local certifications for the period increased by 12% while reciprocal certifications remained steady. We increased our outreach initiatives to retain existing MBE firms and those retention efforts have paid off with more renewals.

•BusinessOpportunityFair- Our goal of increasing 2011 attendance by 40% was exceeded with a total increase of 44%. We were honored to have newly elected Metro Mayor Greg Fischer as our keynote speaker. In addition to adding a new format to the show, we also had MBEs participating in the One-on-One sessions as both suppliers and purchasers. We will continue to support our MBE to MBE partnerships in the future.

•CommunityPartnerNetworkingEvents- TSMSDC continues to work with a variety of community partners hosting events and educational sessions. In addition to partnering with the Northern Kentucky Chamber of Commerce for the Power Breakfast, we also collaborated with the Hispanic Latino Business Council and Commerce Lexington on educational and networking programs. Partnerships with the Community Ventures Corporation and Consumer Credit Counseling Services resulted in various grant proposals and the development of the Minority Business Enterprise University (MBE-U). TSMSDC was also one of several organizations to participate in the One Southern Indiana Minority & Women Business Owners Conference.

•NorthernKentuckyPowerBreakfast- This annual business networking event features a corporate speaker and full

breakfast in Covington, Kentucky. Partnering with the Northern Kentucky Chamber of Commerce, this year’s speaker was Reggie Layton, Director of Diversity Business Development for Johnson Controls, Inc., NMSDC’s Corporation of the Year for 2003 and 2008.



Strategic PartnershipsOutreach efforts into West Virginia, Lexington (Kentucky), Northern Kentucky, Southern Indiana and other communities in the TSMSDC coverage area continues as we work pro-actively with the following community partners:

We appreciate the support of these and many other organizations in helping TSMSDC leverage resources and provide services

to our constituents.

» 92.5%RETENTION | CORP. MEMBERS

» 22.5%NET GROWTH

A Greater Louisville Inc. A liate

» 5.5%NATIONAL MEMBERSHIP GROWTH

Corporate Member Retention and Growth •LocalMemberRetention - Each year our goal is to retain over

90% of our members. Economic conditions and the slow-down in construction presented a challenge for us in 2011, but our retention rate held at 92.5%.

•LocalMemberGrowth - TSMSDC also secured 12 new local corporate members, yielding a net growth of 22.5% for the year. With new members come new MBE procurement opportunities. Our new members are:

Kenton County AirportJefferson Community & Technical CollegeTape Industrial SalesPlant Services Inc.KonecranesAbednego Environmnetal Services, LLCNGK Spark Plugs (USA) Inc.Mubea North AmericaThe Robertson Mechanical & Electrical CompanyGreen Metals, Inc.Sky Steel, Inc.Northern Kentucky Chamber of Commerce

• National Member Growth-Our national corporate membership grew by 5.5%.




The Minority Business Enterprise Input Committee (MBEIC) acts in an advisory capacity to the Board of Directors. The committee:

1. Serves as liaison between the minority business community and council members;

2. Assists the council with outreach efforts to minority businesses;

3. Identifies minority-owned businesses and encourages their participation in TSMSDC;

4. Advises and makes recommendations to the council on minority business priorities.

The MBEIC holds regular meetings to discuss issues of interest and concern.

ChairpersonKeith Hamilton, LB Manufacturing, LLC

1st Vice ChairToni Levy, Toni Levy & Associates, Inc.

2nd Vice ChairStacey Wade, NIMBUS, Inc.

Committee MembersShea Burns, Burns Janitor Service, Inc. Roy Coleman, Power Systems Sales & Engineering CompanyKathy Mills, Strategic Communications, LLCTawana Bain, New Age Communications

Minority Business Enterprise Input Committee

2011 Board of DirectorsThe Tri-State Minority Supplier Development Council Board of Directors is composed of persons representing major corporations, government agencies, Kentucky or West Virginia-based companies and minority-owned firms. Board members are committed to leveraging the resources of their respective companies to support the mission of TSMSDC. As leaders within the organization, they further consent to a high level of participation in the promotion TSMSDC programs and services.

TSMSDC 2011Board of Directors

Ralph de Chabert - Board Chair Brown-Forman Corporation

John Munson, Jr. - 1st Vice Chair Toyota Motor Engineering & Manufacturing North America, Inc.

Delquan Dorsey, Sr. - 2nd Vice Chair Governor’s Office of Minority Empowerment

Thomas Halbleib, Jr. - Treasurer Stites & Harbison, PLLC

David Montgomery - Secretary Raytheon

Keith Hamilton - MBEIC Chair LB Manufacturing, LLC

Paula Carter Honda of America Manufacturing, Inc. Rhonda Clark UPS Janet Cundiff Kroger

Rachel Curry YUM! Brands Inc.

Dr. Ralph Fitzpatrick University of Louisville Office of Community Engagement

Ty Gettis TSMSDC

Sandra Harper Humana, Inc.

DeVone Holt Jefferson County Public Schools

Brent Pacanowski Norton Healthcare

Renee Pierce PNC Bank

Kena Samuels-Stith SKS Accounting & Consulting Firm, Inc. Mark Schmitt LG&E and KU Energy, LLC Tyrone Tyra Commerce Lexington Inc.

Darrell Wilson Kentucky Lottery Corporation



Programs and EventsBusiness Opportunity Fair (BOF) - As our annual flagship event held in Louisville during July, the BOF consists of an exciting trade show, an opportunity for MBEs to meet one-on-one with purchasers, networking and educational seminars. Featured speakers at the 2011 BOF included a special presentation from Dr. Nat Irvin, Founder of Future Focus 2020, Strickler Executive in Residence and Professor of Management at the College of Business, University of Louisville.

Business Networking Summit - TSMSDC conducts this an-nual event to provide opportunities for business leaders to strengthen old and build new relationships in a social atmo-sphere. The 2011 Networking Summit was held at a public golf course in Louisville.

Making It Happen – The structure of Making It Happen sessions allow corporate members to meet a variety of MBEs and communicate their purchasing requirements and needs. Particularly popular with MBEs, it allows entrepreneurs an opportunity to gain pertinent information from the decision makers of a corporation and gives them an inside track on upcoming supplier needs.

NMSDC National Conference - Hosted by NMSDC each October, this is the nation’s premier conference and trade show for corporate representatives and MBE representatives. The 2011 Annual Meeting was held in Atlanta, where participants enjoyed a 600-booth trade show, numerous workshops, and networking with thousands of people. The culmination of the event was the Awards Program which recognized TSMSDC’s own Toyota Motor Engineering & Manufacturing North America as the Corporation of the Year.

Annual Agave Awards – TSMSDC brought together CEOs, buyers, senior management, minority business entrepreneurs, community leaders and others in December 2011 to recognize corporations and minority-owned businesses that have excelled in promoting supplier diversity and inclusion within our region. Honors are also given to individuals who play a key role in our community by displaying their commitment to diversity and multi-cultural teamwork.

’




Congratulations to our 2011 Agavé Award Winners

Corporation of the Year

Toyota Motor Engineering & Manufacturing North America, Inc.

Keystone Awards for Corporate Excellence

Public / University Sector - Louisville & Jefferson County Metropolitan Sewer District

Less than 1,000 Employees - Messer Construction Company

1,000 - 5,000 Employees - LG&E and KU Energy, LLC

Over 5,000 Employees - Humana, Inc.

Cornerstone Awards for MBE Supplier Excellence

Class I: NIMBUS, Inc.

Class II: Houston-Johnson, Inc.

Class III: OmniSource Integrated Supply, LLC

Class IV: EnovaPremier, LLC

Chairman’s Challenge Award

Honda of America Manufacturing, Inc.

Individual Awards

Ferda C. Porter Award: Pamela Dumm, Jefferson Community and Technical College

Impact Award: Stephanie Pryor, LG&E and KU Energy, LLC

2011

2011




Membership / Financial TrendsTri-State MSDC is funded in six ways:

1. Local corporate member dues2. NMSDC allocations based on national members with operations in Kentuckiana / Southern Indiana / West Virginia 3. Sponsorships, contributions and proceeds from programs and events4. Minority business certification fees5. Special funding from Greater Louisville, Inc. 6. In-kind services

Membership• Corporate Members (Local) • Corporate Members (National) • Certified MBE Clients (Local & Reciprocal)

StaffTy Gettis, President & CEO Sonya Brown, Director, Minority Business CertificationSuzanne Ruark, Director, Marketing & Events Renée Shafer, Executive Assistant

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Tri-State Minority Supplier Development CouncilCertify • Develop • Advocate • Connect

Louisville:614 West Main Street, Suite 5500

Louisville KY 40202502.625.0159

502.625.0082 (fax)

Lexington:330 East Main Street, Suite 200

Lexington KY 40507859.226.1636

www.tsmsdc.com

We are passionate about respecting the environment and strive to be considerate citizens of our communi-ty and our planet. For that reason, TSMSDC takes as many eco-conscious measures as possible to conserve energy, utilize resources wisely and reduce waste in our daily business activities. We encourage our members and corporate partners to join us in similar endeavors

with their companies.

© 2012 TRI-STATE MINORITY SUPPLIER DEVELOPMENT COUNCIL // AFFILIATED WITH NMSDC

2011 annual report

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