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CONTENTS JANUARY 2024 | VOLUME 40 | NUMBER 1 | AKBIZMAG.COM
FE AT UR E S 10 FINANCE
Banking on Branches
A renewed focus on physical locations and financial services By Tracy Barbour
16 HEALTHCARE Certificate of Need
Extra hurdles for expanding healthcare services By Sarah Reynolds Westin
38 TELECOM & TECH
Cybersecurity Demands Unwavering Attention and Proactive Effort
Basic guidelines for passwords, multilayered defense, and awareness training By Joshua Rabe
42 SMALL BUSINESS Coding Kitchen
Flyntlik's recipe for dealer management and customer relationship software By Tracy Barbour
Flush with Cash
Village sanitation goal closer, thanks to federal infrastructure funds By Terri Marshall
68 EDUCATION
Eyal Saiet
64 ALASKA NATIVE
Flying Less Than Solo
UAF ACUASI piloting a drone economy By Vanessa Orr
ABOUT THE COVER Meet Alia (top), Captain (center), and Jackson (bottom), three of Alaska’s extraordinary youth. Alia is a guest author in this issue, and all three of these students participate in Junior Achievement ( JA) of Alaska, a nonprofit that educates Alaska’s youth about finance, free markets, and business. JA of Alaska’s goal is to elevate all students to financial and workplace success, but the organization recognizes that how they climb there is up to each student. Thus, its focus is not on line-item “what-to-do” lists but instead on providing the knowledge and tools young Alaskans need to accomplish a range of worthy goals. Alaska’s youth are being prepared to seize success—today’s leaders need to make sure the opportunities are there for them to do so. Location provided by Fair view Recreation Center Cover design by Patricia Morales Cover photo by Kerr y Tasker
QUICK READS 8 FROM THE EDITOR 72 THE FOCUSED MANAGER 4 | January 2024
74 INSIDE ALASKA BUSINESS 76 RIGHT MOVES
78 ALASKA TRENDS 80 OFF THE CUFF
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CONTENTS JANUARY 2024 | VOLUME 40 | NUMBER 1 | AKBIZMAG.COM
SPECIAL SECTION: JUNIOR ACHIE VEMENT Alia Halat
22 2024 ALASKA BUSINESS HALL OF FAME LAUREATES Scott Rhode | Alaska Business
By Terri Marshall
How JA helps me think about my future
28 JUNIOR ACHIEVEMENT OF ALASKA VOLUNTEER AND EDUCATOR OF THE YEAR
By Alia Halat
By Vanessa Orr
32 CAMPING WITH SHARKS
34 BUILDING WORKFORCE FOUNDATIONS
JA of Alaska's pathways to purpose, literacy, and entrepreneurship By Flora Teo
48 THE SCIENCE OF SUPPORT
The deep roots of research support contractors By Scott Rhode
Lloyd Pikok Jr.
SPECIAL SECTION: INDUSTRIAL SUPPORT SERVICES 54 ONLINE PLANS ROOMS Building resources in virtual spaces By Katie Pesznecker
62 OFFICE OUTSOURCING
Third-party providers for business processes By Rachael Kvapil
58 COMMERCIAL CLEANING
Let the experts do the dirty work
Janco Commercial Cleaning
By Amy Newman
Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc. 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373. © 2024 Alaska Business Publishing Co. All rights reserved. No part of this publication may be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the August & October issues. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/alaska-business.
6 | January 2024
Alaska Business www.akbizmag.com
This year, TOTE Maritime Alaska celebrates 49 years in the 49th State! TOTE is proud to have served Alaska since 1975, connecting communities with dedicated, reliable service from Tacoma, WA to Anchorage, Alaska. With our “built for Alaska” vessels and roll-on/roll-off operations, our service and operations were designed to meet the unique needs of the customers and communities of Alaska. Join us in commemorating nearly half a century of excellence in shipping to the Last Frontier.
49 IN THE 49TH
FROM THE EDITOR Alaska Business has been partnering with Junior Achievement ( JA) of Alaska for many years, long before I joined the magazine’s editorial team. Our annual January special section featuring JA of Alaska coincides with the Alaska Business Hall of Fame banquet, which honors laureates who have demonstrated a lifelong commitment to building the Alaska business community. In addition to highlighting the new laureates (and the rare Denali Award winner, as is happening this year), the Alaska Business Hall of Fame banquet is JA of Alaska’s largest annual fundraiser, being held this year on January 25. I enjoy approaching the new year through the lens of how the business community can help strengthen and support Alaska’s youth. It especially hit home this year. Our editorial team has heard one consistent message in 2023 across all industries: business owners and operators have been challenged with finding qualified workers. This concern is compounded by historic levels of federal funding for infrastructure, energy, telecommunications, and rural projects, all of which present awesome opportunities for the state but require a skilled workforce to plan, construct, and maintain. Even beyond those projects, retailers, healthcare service providers, and small businesses spanning all industries have reported to us at various times that finding the right people for the job is an obstacle. For example, in September I was looking for a business to profile related to the timber industry. My research led me to a long-established small business in Southeast that, from my initial research, would have been a great option. The business owner took my call and frankly explained that, in previous years, he would’ve taken the opportunity for a profile in our magazine without hesitation. But due to his inability to hire workers, his business had recently cut many of its services, and the timing wasn’t right. This conversation with the owner—in which he was open, communicative, and honest—increased my disappointment that our readers would miss an opportunity to learn more about this Alaskan and the business he’s been building for decades. One way to address this issue is attracting workers to Alaska. Another is ensuring that our youth don’t have good reasons to leave. While planning this year’s special section, JA of Alaska President Flora Teo conveyed to me that the organization is focused on helping Alaska’s youth find success through a variety of educational and career paths. She pointed out that many jobs our children tackle in ten years may not even exist today, and the traditional model of high school, followed by college, followed by entry-level positions, is not the path that many of our youth will take to financial success. Our youth need guidance on their many workplace options, but even more importantly, our business community needs to be prepared to support Alaskan youth in their pursuits so that when they are getting training or educated, starting careers, or launching their businesses, they see the benefit of doing so right here in the 49th State. Monetary donations are one way to help, and they’re important—but your time investing in Alaska’s youth has absolutely no substitute. Please consider investing generously.
VOLUME 40, #1 EDITORIAL Managing Editor Tasha Anderson 907-257-2907 tanderson@akbizmag.com
Editor/Staff Writer Scott Rhode srhode@akbizmag.com
Associate Editor Rindi White rindi@akbizmag.com
Editorial Assistant Emily Olsen emily@akbizmag.com
PRODUCTION Art Director Monica Sterchi-Lowman 907-257-2916 design@akbizmag.com
Design & Art Production Fulvia Caldei Lowe production@akbizmag.com
Web Manager Patricia Morales patricia@akbizmag.com
SALES VP Sales & Marketing Charles Bell 907-257-2909 cbell@akbizmag.com
Senior Account Manager Janis J. Plume 907-257-2917 janis@akbizmag.com
Senior Account Manager Christine Merki 907-257-2911 cmerki@akbizmag.com
Marketing Assistant Tiffany Whited 907-257-2910 tiffany@akbizmag.com
BUSINESS President Billie Martin VP & General Manager Jason Martin 907-257-2905 jason@akbizmag.com
Accounting Manager James Barnhill 907-257-2901 accounts@akbizmag.com
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8 | January 2024
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FINANCE
Banking on Branches A renewed focus on physical locations and financial services
Mt. McKinley Bank
By Tracy Barbour
10 | January 2024
Alaska Business www.akbizmag.com
T
e c h n o l o g y , c o m p e t i t i o n , a large teller line in a branch to process consolidation, regulation, and transactions, we don’t think that shift changing customer preferences means physical branch locations aren’t have reduced the need for physical just as important as they were ten banking locations. The number of years ago,” she says. A b ra n c h l o c a t i o n re p re s e n t s a institutions covered by the Federal D e p o s i t I n s u r a n c e C o r p o r a t i o n way to be a part of the community, Zins says. “The value of a (FDIC) has been declining physical location to us is since 2010. Back then, our ability to be in front of there were more than the customer, ensuring they 83,000 such branches; have a seamless banking on March 31, 2023, experience and we are the number was 77,000. able to support all of their To d a y, h ow ev e r, b a n k s banking needs,” she says. throughout the country and M a n y c u s t o m e r s e n j oy in Alaska are reimagining having convenient access a n d re m o d e l i n g ex i s t i n g to a physical branch. That’s b ra n c h e s , re i n v e s t i n g i n Elaine Kroll a key reason Denali State t h e i r b r a n c h n e t w o r k , Firs t National Bank Bank continues to maintain a n d i m p l e m e n t i n g o t h e r Alaska strategies to improve the customer four offices in Fairbanks as well as one in Tok. “They drive by and see our experience and competitive advantage. Studies indicate that many customers signage,” says President and CEO Steve appreciate having access to a physical Lundgren. “And the more often they see branch—despite having a proclivity for our logo, the more comfortable they electronic and mobile banking. A survey feel banking with us.” Lundgren says it’s not unusual for by global professional services firm Accenture, for example, found that most a financial institution to have only one bank customers like seeing physical location in a city the size of Fairbanks, branches in their neighborhood, as it where residents can drive across town confirms the stability and availability of in fifteen minutes. But Denali State Bank their financial institution. In particular, is adamant about operating multiple they value branches for infrequent branches. “I think it is a testament of my but important functions like opening bank’s commitment to our community accounts and obtaining financial advice. and customers, particularly in this time w h e re w e’ v e s e e n l a rg e r A recent survey by First banks that are based outside National Bank Alaska (FNBA) Alaska close branches,” he indicates that customers says. “We are not going to value the services provided do that; we are a long-term within its twenty-eight bank of this community.” locations. “About a third of Patricia Mongold, customers ranked in-branch president and CEO of banking as their preferred M t . M c K i n l ey B a n k , a l s o banking method, and almost recognizes the unique 20 percent prefer driveopportunity a physical t h r u b a n k i n g , c o m p a re d Steve Lundgren Denali State Bank location affords. Customers to online and mobile services,” says Treasury Management can receive personalized service at the and Anchorage Branch Administration bank’s five locations—three in Fairbanks, one in Delta Junction, and one in North Director Elaine Kroll. Pole. “We like people to come into the bank and get to know us,” she says. “We Enduring Value of Physical can tailor our products and services Branches The growing adoption of digital better if we have an opportunity for platforms has not altered the necessity face-to-face interaction.” Branches will always be a source and value of brick-and-mortar branches, according to Amber Zins, COO of of strength for KeyBank, says Derek Northrim Bank, which has almost Pender, regional retail leader for Alaska twenty branches throughout Alaska. and Washington. Over the last few “While we agree there is less need for years, KeyBank has experienced a shift
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Alaska Business
“I think it is a testament of my bank’s commitment to our community and customers, particularly in this time where we’ve seen larger banks that are based outside Alaska close branches… We are not going to do that; we are a long-term bank of this community.” Steve Lundgren President and CEO Denali State Bank
January 2024 | 11
The lobby of First National Bank Alaska’s Golden Valley branch in Fairbanks. First National Bank Alaska
in the way its clients visit and utilize or remodeled branches. For instance, relationships with our customers.” With its service-oriented culture, branches, but investments in Alaska N o r t h r i m B a n k i s a u g m e n t i n g i t s allow the institution to deliver the best locations in Alaska—where the number FNBA—which has physical locations possible experience. “Our investments of branches overall is declining. As of in nineteen communities in Alaska— in the digital experience—and in our June 30, 2019, the number of FDIC c o n s t a n t l y a n a l y z e s b r a n c h a n d transaction patterns and teammates, so they can advise with offices in Alaska was 121, and adapts to meet customer excellence—are important to us and this number was 113 for June needs and industry trends. our clients,” Pender says. “We value 30, 2023, according to Zins. Case in point: in 2020, FNBA relationships with our clients and “Three of the seven banks moved its 18,000-squarework hard to help them achieve their in Alaska have remained foot Anchorage Main Branch financial goals and dreams.” flat,” she says. “Three other location from Fourth Avenue, B r a n c h e s a r e a l s o i n t e g r a l t o banks have reduced their built for long lines of checkcustomer relationships at Wells o f f i c e s , a n d N o r t h r i m cashing customers, to a Fargo, in combination with its online has added locations.” smaller footprint on K Street. and mobile channels and automated Since 2019, Northrim Bank Karl Heinz “Our newer Metro Branch teller machines (ATMs), according to h a s a d d e d i t s F a i r b a n k s Firs t National Bank is approximately 2,500 David Larkin, region branch West full-service Alaska network executive Alaska branch. It also added full- square feet,” Kroll says. “Customers and western Washington. service branches in Kodiak and employees alike are very happy “Our branches are a place and Nome. “In Nome, we w i t h t h e s u c c e s s o f o u r m o d e r n where customers can meet were able to quickly open a and smaller location.” That same year, FNBA closed its with a banker for advice branch earlier than planned and guidance and have a after Typhoon Merbok hit, as Parkway Branch in East Anchorage, meaningful financial health we saw a huge need in the another facility where the large footprint conversation to help them community for more access was underutilized. The bank was able to reach their goals,” Larkin to banking services,” Zins reallocate resources to nearby U-Med explains. “ Today ’s branch Amber Zins says. “We recently opened and Muldoon Road locations. “For us, it’s Nor thrim Bank visit is about deepening our a Loan Production Office not the size of the façade that matters customer relationship, where customers in Homer, and we have just started most,” Kroll says. “Our priority is to engage in financial checkups with construction on a full-service branch support our team’s ability to meet our customers’ needs—whether in person, bankers to create and fine tune long- that will open in 2024.” term financial goals.” Northrim has also remodeled several over the phone, or through online branches in Anchorage. “Years ago and mobile channels.” In 2021, FNBA opened a Loan branches were built to focus on the Reimagining and Remodeling vault and the teller lines,” Zins explains. Production Office in Ketchikan to Facilities Although some banks have closed “Our branches are built now to focus better serve Alaskans in the southern locations, others have added and/ on the community and enhancing the Panhandle, which some national banks 12 | January 2024
Alaska Business www.akbizmag.com
“While we agree there is less need for a large teller line in a branch to process transactions, we don’t think that shift means physical branch locations aren’t just as important as they were ten years ago.” Amber Zins Chief Operating Officer Northrim Bank
have vacated, according to Branch Administration Director Karl Heinz. FNBA also relocated its Healy branch to a new location with added features, including a double-lane drive-thru, a drive-up ATM, a drive-up night drop, and easy access to the Parks Highway. Heinz says, “Our understanding of Alaska and access to in-person banking, as well as a suite of secure and digital services, make us well prepared to serve the entire state of Alaska.” The bank launched a Branch ReEngineering initiative a few years ago to rethink branches in terms of physical space, staffing models, customer engagement, enhanced technology, and system functionality. Kroll says, “In each instance, we redesigned the branch layout to portray a more modern and open concept, multifunctioning workstations to support a universal banker model, and fewer teller windows.” Besides completing branch remodels, www.akbizmag.com
Alaska Business
January 2024 | 13
Mt. McKinley Bank’s main office, located in Fairbanks. Mt. McKinley Bank
“Today’s branch visit is about deepening our customer relationship, where customers engage in financial checkups with bankers to create and fine tune long-term financial goals.” David Larkin Region Branch Network Executive Wells Fargo
14 | January 2024
share in Alaska with 41.86 percent ($6.48 billion), according to FDIC market data for deposits as of June 30, 2023.” Denali State Bank has also enhanced some of its locations. A few years ago, the bank’s Chena Pump office received a minor facelift. Now the manager is situated in the lobby, which supports better customer interactions. A s i m i l a r s t ra t e g y w e n t i n t o a n extensive renovation of the bank’s Fairbanks headquarters. Prior to the remodel, the manager, customerfacing employees, and most of the main office floor were behind the teller counter. “So we reduced the size of that backroom working area and moved the manager out into the lobby,” Lundgren says. “All of our customer service, new accounts, and customer-facing people now all have workstations directly accessible to our customers.” Denali State Bank also relocated its entire executive team downstairs to F N B A a l s o re p o s i t i o n e d c u s t o m e r offices with glass walls adjoining the service teams, including moving Escrow lobby. Customers—many of whom are Services to the Eastchester Branch. friends—can greet the management t e a m w h e n t h ey s t o p by The bank also made some t h e m a i n o f f i c e . “ T h a t ’s less evident investments one way we as a small to re-engineer branches, bank can differentiate such as altering its driveourselves from our larger thru mechanics. “These competitors,” Lundgren changes not only improve explains. “I think it ’s our efficiencies but also improved our reputation as significantly enhance the a customer-focused bank.” c u s t o m e r a n d e m p l oy e e In 2020, Mt. McKinley Bank experience,” Kroll says. David Larkin revamped its main office to With thirty-seven locations Wells Fargo expand electronic services. in Alaska, Wells Fargo is endeavoring to “rightsize” its network. Before then, retail customers typically Since January 2021, the bank closed had to deal with a teller, and businesses four branches. “We may continue to would work through the information combine two older existing branches technology department. “Our thinking into one better situated location, w a s t o b r i n g a l l o f t h e s e r v i c e s as was done in September 2023 under one place,” Mongold says. “It’s been a really positive when our Wasilla branch thing from a customer was consolidated into service standpoint.” our Cottonwood Creek Mongold says Mt. McKinley branch approximately 2.2 Bank is considering further miles away,” Larkin says. expanding the department B ra n c h c o n s o l i d a t i o n s to include a call center. do not diminish the Several KeyBank branches importance of Wells Fargo’s have also undergone full presence, Larkin says. “We transformations, including are committed to serving all c o l l a b o ra t i o n w i t h o t h e r communities, including rural Patricia Mongold Mt. McKinley Bank lines of business to deliver markets, and we know our customers value our presence in small, a n a l l - a r o u n d e n g a g i n g b a n k i n g remote towns,” he adds. “Wells Fargo is experience, Pender says. “This also is an proud to have the number one market example of KeyBank’s commitment to Alaska Business www.akbizmag.com
Over the next year, Mt. McKinley Bank will enhance its digital capabilities for customers. The b a n k i s h o p i n g t o ro l l o u t o n l i n e account onboarding. The bank is also Reinvesting in Branch considering deploying interactive teller Networks KeyBank is still seeing a steady machines, especially for North Pole increase in client preference for digital and Delta Junction. “We are always banking, though. “Client transactions looking for good opportunities to p rov i d e b e t t e r c u s t o m e r through online and mobile service,” Mongold says. banking were already H o w e v e r, H e i n z s a y s two times the number of n o t h i n g c a n re p l a c e t h e customer transactions value of in-person service completed at a branch when a customer needs it office,” Pender says. most. FNBA is committed Northrim Bank is also to providing customers focused on enhancing its with choices—when, where, digital platforms. And Wells and how they need it—at Fargo, while updating branch home, in the office, on their location floorplans to create Derek Pender KeyBank p h o n e , o r d i g i t a l l y. “A n y more space for conversation and consultation, is also continuing change or enhancement we make at to invest in its technology. In October, our branches is always made with the the bank announced the expanded customer in mind,” he says. There will always be a place for availability of LifeSync, a personalized digital approach to aligning customers’ branch facilities, Mongold says. She goals with their money. In September, explains, “I think they offer a real value the bank announced the enhancement to our customers, and I don’t ever see them going away.” of its Fargo virtual assistant. our presence in Alaska and the critical retail, small business, and commercial clients we serve,” he says.
“Client transactions through online and mobile banking were already two times the number of customer transactions completed at a branch office.” Derek Pender Regional Retail Leader KeyBank
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H E A LT H C A R E
Certificate of Need Extra hurdles for expanding healthcare services
YuriArcursPeopleimages | Envato
By Sarah Reynolds Westin
16 | January 2024
M
ore patients than ever used the emergency room (ER) at Alaska Regional Hospital in 2022. The hospital counted 38,876 patients, an increase of more than 21 percent over the previous high in 2019. Each bed in the department cycled through 2,400 patients during the year, on average. Other ERs in the city were busier: Alaska Native Medical Center handled 49,550 visits, and Providence Alaska Medical Center saw 58,024. By Alaska Regional’s calculations, Anchorage needs 101 ER beds to meet current demand, which is 17 shy of current capacity. In response, Alaska Regional submitted an application last May for a Hospital-Satellite Emergency Department (HSED) in South Anchorage, to cover the other side of town. The application notes that Anchorage’s existing emergency medicine capacity is concentrated in a 2-mile radius. T h e p ro p o s a l w a s t o b u i l d a 1 0 , 8 6 0 - s q u a re - f o o t facility, estimated to cost nearly $18 million, scheduled for completion by the end of 2024. In addition to twelve emergency treatment rooms, the stand-alone HSED would
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add five beds for cardiac monitoring, as well as diagnostic X-rays, CT scanner, a n d u l t ra s o u n d . A l a s k a R e g i o n a l Hospital had proposed a similar facility, plus another in Eagle River, in 2015. As they did in 2015, state authorities r e j e c t e d t h e i d e a . I n O c t o b e r, Heidi Hedberg, commissioner of the Alaska Department of Health, denied the application, citing staff findings that Anchorage has no need for a stand-alone ER. The denial f u r t h e r c i t e d “c e r t a i n p o r t i o n s o f the application that were deficient,” such as a demonstration of stakeholder involvement. But wait: Alaska Regional Hospital is a for-profit entity, owned by Galen Hospital Alaska as a subsidiary of HCA Healthcare, which operates 186 hospitals and nearly 2,000 other sites nationwide. A private sector business can set up shop wherever it wants, within certain land use regulations. Why must a hospital ask for government permission first? B e c a u s e h e a l t h c a re c a p a c i t y i s regulated by Certificates of Need.
Program within the Department of Health—facilitate public comment and then issue (or deny) a certificate that would allow the project to advance. H o w e v e r, c o n c e r n s a b o u t C O N programs arose and spread quickly. S t a t e s f o u n d i n c re a s e d c o s t s , n o change in mortality rates, disparities in rural services, and stagnant innovation. Established hospitals were essentially protected from competition. Furthermore, the application process itself is burdensome, requiring
healthcare administrators in Alaska to complete a thirty-seven-page p a c k e t a n d p rov i d e u p t o n i n e t y pages of detailed architectural and engineering schematics. The federal CON program was re p e a l e d w i t h b i p a r t i s a n s u p p o r t in 1987. Since then, twelve states have repealed and eighteen states modified their CON laws, as of 2022. The Alaska legislature deleted federal requirements from its program in 1991 and passed statutory modifications
Need for Certificates
Thirty-five states, including Alaska, have Certificate of Need (CON) programs to determine whether proposed healthcare facility projects can advance—be they new, remodeled, or expanded. CO N l a w s s t a r t e d a p p e a r i n g i n state legislatures in 1964 to address issues relevant at the time: curtailing healthcare inflation, creating equal a c c e s s t o m e d i c a l c a re , re d u c i n g individual and government healthcare costs, and decreasing mortality rates. Congress followed suit in 1974, passing its own version of CON laws. In 1976, the State of Alaska enacted its version too. By 1980, forty-nine states had fully enacted these types of laws. The economic principle behind CON laws is that, if left unregulated, h o s p i t a l s w o u l d c o n s t r u c t exc e s s capacity in any given market. To fill those beds, hospitals might admit patients unnecessarily or they might raise prices to squeeze more revenue from the customer pool. Thus, hospitals must submit detailed applications to demonstrate the need for a proposed facility, and state authorities—in Alaska, it’s the CON www.akbizmag.com
Alaska Business
January 2024 | 17
Thirty-five states, including Alaska, have Certificate of Need laws [which] started appearing in state legislatures in 1964 to address issues relevant at the time: curtailing healthcare inflation, creating equal access to medical care, reducing individual and government healthcare costs, and decreasing mortality rates.
18 | January 2024
in 1997 and 2004. No other updates have been enacted since.
Application Evaluation
The application for HSED had additional obstacles beyond run-ofthe-mill bureaucracy. Its configuration as a stand-alone ER, detached from surgical suites, would require patients with intensive needs to be transported via what Alaska Regional Hospital called a “virtual corridor” (free of charge, the hospital promised). The difference is illustrated by the 2015 rejection, which came at the same time that Providence Medical Center was awarded a certificate to add thirteen ER beds to its existing campus. Another argument is that a South Anchorage ER would be a more expensive level of service compared t o o t h e r o p t i o n s , s u c h a s u rg e n t care clinics or primary care visits. The state says it has an interest in controlling costs because it pays for services via Medicaid. In her denial letter last fall, Hedberg said the HSED application did not correctly interpret population data or correctly identify the service area, among other criticisms. According to the CON Program web page, the review process “involves evaluation of plan narratives, relevant data, and architectural designs to remodel, expand, or build healthcare facilities and add new services.” Later, the page also notes, “Demographic p ro j e c t i o n s s u g g e s t t h a t A l a s k a n healthcare services will expand to meet the needs of a growing population, including a much larger senior population. Therefore, circumstances m a n d a t e t h a t n ew a n d ex p a n d e d services be planned properly to get the highest quality and most appropriate services possible at the best price.” Within the application packet itself, further emphases are placed o n i n t e g r a t i o n w i t h c o m m u n i t y, regional, state, and federal health planning; evidence of stakeholder participation; alternative methods o f p rov i d i n g s e r v i c e s ; a n t i c i p a t e d i m p a c t o n ex i s t i n g s y s t e m s ; a n d demonstration of accessible location. In short, determinations are based on more than the arithmetic of patients per bed. CON also hinge on how well healthcare facility architect-
engineer service consultants make an economic argument. In response to the denial for HSED, Alaska Regional CEO Jennifer Opsut i n s i s t e d t h e n e e d f o r e m e rg e n c y care exists, and she said hospital officials remain focused on enhancing services. Whether that would include a formal appeal of the department’s decision was unclear.
Repealing CON
“ We have boxes of data that CON laws don’t work in regard to the original idealization of keeping medical costs down,” says Senator David Wilson of Wasilla. Last session, Wilson introduced Senate Bill (SB) 8 to repeal the state’s CON program. It advanced through the Health and Social Services Committee, but Wilson is concerned that it will stall in the Labor and Commerce Committee in the 2024 session. “Everyone in Alaska agrees CON laws don’t work,” Wilson says, “but no one here wants to change anything.” Opposition seems to derive from the complicated nature of healthcare policies and their implementation in general. Health insurance terminology and coverage decisions can be confusing and slippery even to experts in the field. Combine those issues with the sensitive nature of medical privacy, health facilities trending toward monopolies, and other interested parties—like government departments and architect-engineer services— and Wilson is hardly surprised t h a t m o d i f y i n g o r re p e a l i n g CO N faces an uphill battle. “Changing them will take a lot of education and understanding,” Wilson says. “It takes a lot of time to get people moving, but I think momentum is on our side.” To build his case, Wilson obtained a letter from the US Department of Justice, Antitrust Division last May. The letter states that the division has consistently advocated for the repeal o r ro l l b a c k o f CO N l a w s b e c a u s e t h e y “c r e a t e d b a r r i e r s t o e n t r y and expansion, suppressing costeffective, innovative, and higher-quality healthcare options.” The letter says some companies have exploited CON programs to block competition, denied consumer benefits, and failed to control
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costs or improve access to care. This position goes back more than a decade and is generally bipartisan. Wilson points out: “We’ve seen the Obama, Trump, and Biden administrations express their opposition to them.” The senator can make his case for SB8 to skeptical colleagues as the legislative session resumes this month. A companion bill on the House side was introduced by Representative George R a u s c h e r o f S u t t o n l a s t y e a r, b u t no hearings were held.
Healthcare as a Utility
The Alaska CON program received f i v e a p p l i c a t i o n s i n 2 0 2 3 . Tw o o f the reviews are complete: the HSED application was denied, but a certificate was approved for Mat-Su Regional
Medical Center to establish a catheter lab at its hospital. A c e r t i f i c a t e w a s a l s o a p p rov e d f o r A s p e n C re e k M a n a g e m e n t t o establish a skilled nursing facility in Anchorage, but the approval is being appealed. Still pending are applications for Bartlett Regional Hospital in Juneau to expand its ER and for South Peninsula Hospital in Homer to expand its nuclear medicine services, relocate its pharmacy, and colocate its infusion department with its oncology department. Such a level of scrutiny is hardly necessary if, say, a restaurant wished to add tables or if a hotel drew up plans for a spa. The business of healthcare, dealing in matters of life and death, must leap through additional hurdles, much like power companies cannot
change electricity prices without a g o - a h e a d f ro m t h e R e g u l a t o r y Commission of Alaska. That comparison is apt, as Wilson s e e s i t . “ I f w e 'r e g o i n g t o t r e a t healthcare like another entity, we should treat it like a utility,” he says. “When there are issues, we'd have to go to federal regulatory authorities.” Indeed, repealing Alaska’s CON laws would not wipe away all healthcare regulation. "I just want to level the playing field for healthcare facilities and services,” Wilson says. “I think we all want better quality of services and not just people starting small ambulatory service centers where they skimp on staffing and services and equipment. We deserve to have the right facilities that care for patients while keeping costs down."
“We have boxes of data that CON laws don’t work in regard to the original idealization of keeping medical costs down.” Alaska Senator David Wilson, Wasilla
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By Travis Frisk, JA of Alaska Board of Directors
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uilding for success—whether in business, on a team, or day-to-day life—requires a solid foundation. And as Alaskans, we face unique challenges. Startups without reserve capital, teams lacking proper practice habits, and personal goals without planning usually are short-lived. A personal goal nearly everyone shares is to become more financially secure throughout life. We all want 20 | January 2024
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JUNIOR ACHIEVEMENT
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The True Value of Junior Achievement of Alaska
what Junior Achievement ( JA) of Alaska does, and it’s why I have been honored to serve on the JA Board of Directors for twenty-two years. While some Gen Z’ers may never have seen a checkbook, the math skills and diligence needed to balance one are universally applicable. JA’s mission is to help as many young Alaskans as we can with their financial l i t e ra c y t h ro u g h d a y l o n g c o u r s e s tailored to different ages, elementary through high school. We like to say we “flood the schools” with our JA in a Day program, in which our team of JA educators reaches every student in the school on that day. What started with three schools in 2009 has grown to serve nearly 12,000 students last year in twenty-eight school districts all across Alaska. Our goal is to serve 30,000 students by 2026. In my day job, I’m the Chief Financial O f f i c e r f o r C re d i t U n i o n 1 ( C U 1 ) , and our leadership team shares my passion for improving financial literacy among young Alaskans. It’s the driving force behind why we added a new member benefit for 2024: free
access to a family-focused financial a p p c a l l e d G re e n l i g h t . G re e n l i g h t p rov i d e s a s a v i n g s a n d s p e n d i n g account for children and teens, with its own card that parents can manage to help ensure their children gain positive financial habits. The program’s features allow parents to award money for chores, grades, or behavior as well as put limits on where the card can be used and how much their kids can spend—all from their smartphone. It’s the perfect tool for parents to build a foundation of financial literacy in their children (and keep an eye on what their kids are buying). CU1’s commitment to helping young Alaskans i s a b i g re a s o n why I’m proud to work there, and through working with partners in finance and e d u c a t i o n , we can make sure every kid in Alaska is prepared to build their own dream.
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to be able to live more comfortably as we age, even if we each have our own definition of what success looks like. It, too, requires a solid foundation. Sadly, however, many young people are not given the tools to develop towards their financial success, and as a state that has the highest average credit card debt in the country, Alaska needs to focus on building a better financial literacy foundation. Many kids are not being taught the fundamentals of managing their personal finances and the importance of it. Folks m y a g e l i k e l y re m e m b e r t a k i n g a personal finance class in high school, which focused on growing skills such as balancing a checkbook and understanding how to responsibly use credit cards. For budgeting reasons and others, these classes have largely been cut from current curriculums. While the School of Hard Knocks may sound cool, there is no reason today ’s young people should be put at a knowledge disadvantage that could set them back years financially. R ev e r s i n g t h i s t ro u b l i n g t re n d i n financial literacy is at the heart of
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2024 Alaska Business Hall of Fame Laureates By Terri Marshall
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n 1987, Junior Achievement ( JA) of Alaska began the Alaska Business Hall of Fame to honor outstanding individuals who have made significant contributions to the Alaska business community. Selection for the Alaska Business Hall of Fame is based on s u p p o r t f o r J u n i o r A c h i ev e m e n t ’s programs, demonstrated commitment to Alaska business, and direct impact toward furthering the success of business in Alaska. Three laureates named for 2024 c o n t r i b u t e d t o A l a s k a ’s e c o n o m y through their dedication and leadership, while a fourth honoree is being recognized with the prestigious Denali Award. While their paths differ, each offers words of wisdom to today’s young people and intriguing memories 22 | January 2024
from their personal roads to success. The induction ceremony is being held at the Marriott Anchorage Downtown on January 25, 2024. For tickets and more information visit alaskabusinesshalloffame.com.
David Karp
SVP & Managing Director, Saltchuk | President, Naniq Global Logistics “I started working as soon as I was allowed to,” David Karp recalls of his youth in Nome. “It was the mid-‘70s, and we had three busloads of tourists coming into town every day.” Panning for gold was a big thing then, so Karp made gold panning kits using Nome’s unique red garnetbearing sand, a little gold pan, a bag,
and a label that a local artist drew for him. “I thought it was fun and, truthfully, it is probably what inspired me to begin working in the visitor industry,” he says. Karp kept his work ethic intact as he reached high school. He says, “I had a family to support—thirty-eight sled dogs—so I was motivated to work.” The dog team ended up helping Karp pay for their supper. “I was a little bit of a drama student in high school and somehow ended up playing Santa Claus at the Alaska Commercial Company one year,” he recalls. “Pretty soon I was hooking up my dogs outside of town, and Santa was being tracked by the local radio show to determine when he would arrive in town.” Karp apparently made a convincing Santa because he was able to pry a three-
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David Karp is the only direct employee in Alaska of Saltchuk, overseeing the Seattle-based transportation and logistics company’s many flourishing subsidiaries, such as TOTE Maritime.
JUNIOR ACHIEVEMENT
year-old’s pacifier away in exchange for a Fisher-Price cobbler bench. Karp credits his entrepreneurial leanings to his dad. “My dad had a really bad serial entrepreneurial problem,” he shares with a smile. “He always had a bent for bringing creative new things to people. He even brought the first microwave ovens to Nome and started a restaurant with them.” Finding motivation continues to be Karp’s driving factor. “I believe when people recognize and reward you for your accomplishments, it provides encouragement,” he explains. “I’ve always thrived on recognition and the acknowledgment that what I was doing was positive and hopefully making a contribution. As I’ve grown older, I’ve learned that it’s not so much about me or what I do, but rather the impact I leave as a
Patricia Morales | Alaska Business
“Whether you’re growing up in business or growing up as a kid, the simple adage ‘do the right thing’ applies.” David Karp, SVP & Managing Director, Saltchuk | President, Naniq Global Logistics
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Sheri Buretta has chaired the board of directors of Chugach Alaska Corporation since 1998, shepherding its growth into a near-billion-dollar corporation, among the state’s largest. Patricia Morales | Alaska Business
“I’ve seen the subsistence economy and the importance of our rural communities and villages and then, overnight, all of these modern conveniences were available. But you had to be able to pay for them, so your work shifted.” Sheri Buretta, Board Chair, Chugach Alaska Corporation
On the wall of Mark Pfeffer’s custom-built home hangs a cityscape that shows the Linny Pacillo Parking Garage designed by KPB Architects (the “P” is Pfeffer) and the reflection of another possession, Anchorage City Hall. Scot t Rhode | Alaska Business
24 | January 2024
businessperson, leader, or parent.” When it comes to ethics, Karp goes back to the basics. “Whether you’re growing up in business or growing up as a kid, the simple adage ‘do the right thing’ applies,” he says. “As a kid that might mean don’t shoplift, while as an adult running a multi-milliondollar business, it likely means making sure to negotiate in good faith so everyone gets a fair deal. At its core, the message is the same.” Karp believes that it ’s important for young people to figure out what motivates them in a particular direction and then take a balanced approach to get there. “I consider myself blessed because I had such a unique childhood in Nome,” he shares. “I came out of college not knowing there were any parameters to stop me from pursuing my interests, and that’s a gift.”
Sheri Buretta
Board Chair, Chugach Alaska Corporation Born at Elmendorf Air Force Base hospital in 1965, Sheri Buretta grew up between Anchorage and the Prince William Sound village of Tatitlek where her mother was born. “I went to Nunaka Valley Elementary School, Clark Middle School, and graduated from [Bettye Davis] East High School and from UAA,” Buretta recalls. “Like many kids, my first job was babysitting and newspaper delivery starting from age 10. But when I turned 14, they were just finishing the Northway Mall, and I got a job at the Pretzel Factory. I loved that job! I was able to go to work after school and sell pretzels while meeting a lot of people.” Growing up in poverty fueled Buretta’s understanding of the need to make money. “My mom was born i n t h e v i l l a g e w h e n t h e re w a s n o electricity, plumbing, or water, so they had to live off the land,” she shares. “In my lifetime I’ve seen the subsistence economy and the importance of our rural communities and villages and then, overnight, all of these modern conveniences were available. But you had to be able to pay for them, so your work shifted. Now you had to have a job that pays you cash.” Watching the shift taught Buretta that if she wanted to get things, she had to work. “I remember how empowered I felt when I was able to
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of the eight years Pfeffer worked there, the business grew. Pfeffer worked in the meat market throughout his high school years, handling all sorts of tasks, and then eventually he finished college and moved to Anchorage. But he stayed in touch with the guy that started three months after him who went on to expand the small meat market into a huge international meat business. “He became really successful, and so did I,” says Pfeffer. “I didn’t really
know what was going on as I watched him build the business, but I knew something was happening, and it inspired me to think in some way to be a business guy.” Widely known as a real estate d e v e l o p e r, P f e f f e r ’ s s u c c e s s i s unquestionable. He has started several companies over the years, and he literally owns Anchorage City Hall (he bought the building from Weyerhaeuser, which was leasing it to the municipality).
Mark Pfeffer
Founder and CEO, Pfeffer Development Born in Iowa, Mark Pfeffer grew up in Omaha, Nebraska and attended the University of Nebraska-Lincoln College of Architecture, finishing his studies with a semester in London. Upon graduation, his dad bought him a one-way ticket to Anchorage, where he started his career as an intern architect. But Pfeffer ’s work experience started long before he arrived in Anchorage. “When I was in the eighth grade in Omaha, my mom would pick up my sister, brother, and me, then she would stop at this little local meat market to get hamburger or whatever,” recalls Pfeffer. “I was about two weeks from finishing eighth grade when the meat market owner said, ‘Hey kid, you want a job this summer cleaning up at the end of the day?’ and I jumped at the chance!” Pfeffer made $1.10 an hour starting in May of 1971, but the lessons he learned were far more valuable. He rode his bike to the meat market ev e r y d a y t h a t s u m m e r t o w o r k . Three months after he started the job, the owner hired another guy who was 22 years old. “So I was 13 and he was 22 and was a meat cutter, butcher kind of guy,” recalls Pfeffer. “But he also had a master ’s degree in business administration that he got as a veteran on the GI Bill, but he was still a meat cutter.” The 22-yearold man began helping the little meat market owner become more business-oriented and, over the course www.akbizmag.com
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buy my first car,” she says. “I bought skis, bought braces for my teeth, and I bought a ticket to Hawaii to be in my friend’s wedding when I was just 16, thanks to my job at the Pretzel Factory.” Buretta encourages young people to find what makes them energized, what makes them feel like they are being the best person they can be, and then find a job that allows them to do just that. “Remember, life goes by in a blink, and you may come across days that feel like you just can't get past whatever situation you're dealing with. But life is beautiful. Every day we have a new chance to start over and try again. Empower yourself to have that.”
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“When I came up to Alaska in 1980, I worked for the guy who first hired me for about a year. Then I started my own firm, which was just me working out of a small apartment designing house remodels, and I’ve been self-employed ever since,” he says. Pfeffer believes adults should make themselves available to young people: “Take the time to listen to what they’re pitching, give them an audience, and give them some hope.” I n re t u r n , h i s a d v i c e f o r y o u n g people is simple: “Follow your passion, stay organized, try to see the future, and don’t give up. And do things that are good for the community.”
As a real estate developer, Jennifer Schrage had trouble finding a contractor to handle everything from excavation to paving, so she started her own: Signature Land Services. Patricia Morales | Alaska Business
Denali Award Winner Jennifer Schrage
President, Signature Land Services Running, biking, skiing, and other outdoor pursuits have always been a part of Jennifer Schrage’s life, having been born and raised in Anchorage. “ When I was ten years old, Judy Sedwick, Diane Barnett, and my mom were all good friends, and Judy put together a little running group for a bunch of us girls between 8 and 10 years old,” recalls Shrage. “She also taught us about winning graciously a n d l o s i n g g ra c e f u l l y a n d h ow t o encourage each other. She wanted to make sure she was empowering us to be our best and to believe we can do whatever we try.” That was the beginning of the Girls Club Running Team, but there was more to come. “After watching a Half Ironman triathlon in Hawaii, Judy and Diane decided they wanted to do this for all of us girls,” says Schrage. “We all assembled on the deck at our house on Sand Lake, jumped in the water for the swim, had a transition area for the bike in the driveway, biked around Kincaid, then came back to run down to the Jewel Lake Carrs and back— and that was the start of the Alaska Women’s Gold Nugget Triathlon.” Schrage continued her sports pursuits through college and into her adult life. She attributes much of her success to the discipline she learned from her coaches. “My coaches definitely taught me much about what I need to do to be successful in life,” she says. Wo r k i n g i n m e d i a s a l e s a s h e r 26 | January 2024
first job, Schrage quickly noted the comparison: “Realizing I had to develop my year-round sales goals, I referred to a training plan from college and realized it mirrored the hours of training I needed to get to the next level.” W h i l e S c h ra g e ’s m e n t o r s o f t e n included coaches, she encourages young people to find mentors that work for them. “Start meeting people in school and find those mentors. JA is fantastic in terms of seeking out those opportunities and discovering where you want to be,” she notes. “At the end of the day, it’s the human element and relationships that are critical.” That insight earned Schrage the Denali Award from JA, just the third Alaskan so honored. Schrage’s mantra is one she shares with her own sons. “I’ve told my boys this many times, and I will say it again t o t h e J u n i o r A c h i ev e m e n t y o u t h : t e a c h e r s a n d m e n t o r s c a n n ev e r fire you; they only want the best for you,” she says. “ They want to offer feedback, provide opportunities, give you a safe space to learn, make mistakes, and try again.”
“Start meeting people in school and find those mentors. JA is fantastic in terms of seeking out those opportunities and discovering where you want to be.” Jennifer Schrage President Signature Land Services
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One-touch | Envato
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Junior Achievement of Alaska
Volunteer and Educator of the Year By Vanessa Orr
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nnually, Junior Achievement ( JA) of Alaska honors two exceptional individuals: a Volunteer of the Year and an Educator of the Year. JA’s work to prepare Alaska’s youth for the workforce and educate them about financial literacy wouldn’t be possible without support from local school districts and an amazing cohort of volunteers. While it takes many helping hands, this year JA of Alaska is celebrating Volunteer Stasia Straley and Educator Sidney Topf.
Volunteer of the Year: Stasia Straley
A professor of accounting at UAA, Stasia Straley first became involved in JA of Alaska more than a decade ago. Her mentor at the university, Lynn Koshiyama, originally taught for the accounting program and encouraged her to get involved. “After a day of teaching, it’s fun to see what the kids come away with,” says Straley, who has provided financial literacy programs at schools in Anchorage, Eagle River, and Chugiak. “I always have such fun with them, no matter what school I go to or what age group I teach.” Straley believes strongly in teaching students about finances and is often surprised by what they know or don’t know. “When I asked a group of high school students how much a person needs to 28 | January 2024
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JUNIOR ACHIEVEMENT
Stasia Straley studied accounting and Spanish in her home state of Wyoming, then she came to UAA as an accounting and finance instructor at the College of Business and Public Policy. Stasia Straley
“[Students] take the littlest thing and turn it into something silly and fun… When I ask them what they’re going to tell their parents about what they learned today, they say, ‘Don’t have kids,’ or ‘Don’t retire.’” Stasia Straley, Professor of Accounting, UA A
have to retire in their sixties, they said $2,000,” she says with a laugh. “I had to tell them, ‘Nope, that’s not going to work.’ They have no idea that a onebedroom home in Anchorage can cost $1,200 to $1,500 a month or that childcare can cost $1,200 each month.” What kind of impression does that leave? “They’ll take the littlest thing and turn it into something silly and fun,” she says. “When I ask them what they ’re going to tell their parents about what they learned today, they say, ‘Don’t have kids,’ or ‘Don’t retire.’” The topics Straley covers in her courses include the difference between credit cards and debit cards, using checks, and when and why to apply www.akbizmag.com
for a loan. The students play games and take part in interactive projects while learning, which makes difficult concepts easier to understand. “I think it’s so important to teach kids financial literacy because money can be an uncomfortable topic for a lot of families,” says Straley. “You’re not supposed to ask people about money or how much they make.” Straley believes the more awareness people have about finances, the better off everyone will be. She says, “It ’s important to understand what things cost, how to save, and the importance of a budget. You can’t prepare for the future if you don’t know how much you’ll need to meet your goals.” Alaska Business
But being able to communicate such concepts in a way that students understand can be challenging, she adds. “A l o t o f k i d s d o n ’ t h a v e a n y experience when it comes to this; for example, they don’t know what minimum wage is, or what they should make at a job. If I tell them, at this job you’ll make $15 an hour and at this one you’ll make $50,000 a year, those things feel different to them, but they don’t know how to translate the information.” Students are beginning to ponder whether to go to college or technical school or join the workforce. “They’re receiving a lot of different messages January 2024 | 29
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Sidney Topf’s military experience taught him that Junior ROTC students need a mission to learn leadership. That mission: teach JA lessons to kindergarteners. Sidney Topf
“In this day and age, especially in this economy, it’s very important for kids to understand the value of a dollar… They need to understand that money doesn’t just fall into a bank account.” Sidney Topf Junior ROTC Instructor Dimond High School
i n d i f f e re n t w a y s , a n d t h ey d o n ’ t know how to compare and contrast that information to make good decisions,” she adds. “My challenge is figuring out what they know and then communicating information in a way that is useful, interesting, and can apply to everyday life.” According to Straley, one of the advantages of volunteering for JA is that volunteers can make the classes fit into their own schedules. Not only are there different schools where they can volunteer so they can be close to home or work, but some programs allow flexibility when it comes to what days they teach. Volunteers can go in once a week over a set number of weeks or take part in JA in a Day, which is a one-day program where sessions are taught back-to-back. As a member of The Alaska Society of CPAs’ Relations with Education Committee, Straley works to connect new volunteers with the opportunities and age groups that best suits their needs. JA provides all of the materials that teachers require for each class as well as a handbook for running each session. Online YouTube videos are also available to make lessons 30 | January 2024
even easier to teach. “It’s so easy to volunteer with JA, and it’s such a great way to mold the next generation,” says Straley. “The more we can teach them about financial literacy, the better off everyone will be. For example, teaching kids how to budget when making minimum wage versus how to budget when working with a starting salary of $60,000 a year has a huge impact; they see how different life looks when making more money.” She notes that statistics back up the importance of learning these lessons early. Students who complete JA courses are more likely to graduate high school, have less college debt, and are more likely to become entrepreneurs. Though she never had the opportunity to take JA classes while a t t e n d i n g s c h o o l i n a “ t e e n y, t i n y town” in Wyoming, Straley is pleased that she can help Alaska’s students m a k e f i n a n c i a l i n ro a d s . S h e s a y s that she appreciates that she’s been noticed for her work. Straley laughs when she remembers being told she was named Volunteer of the Year. “I asked myself, ‘Is this really happening?’ It’s such an honor
because there are so many amazing volunteers—so many people doing so much good work. It’s such a nice thing to be recognized.”
Educator of the Year: Sidney Topf
When retired Army Major Sidney Topf took over the position of Junior ROTC instructor at Dimond High School in Anchorage, he hadn’t previously heard of JA and the programs that it offered. Since it was already in place at the school, he decided to continue using it with his students—and he’s glad that he did. “I kind of fell into it, but I soon realized that it’s a really good program,” says Topf, whose fourth-year cadets (and some third-year cadets) teach JA’s financial literacy program to students in kindergarten through 1st grade at Chinook Elementary School. “The program is beneficial because its purpose is two-fold: not only does it engage the young kids but it also reinforces these lessons to my cadets,” says Topf. “They need to know and understand the subject well in order to teach it.” According to Topf, third-year cadets
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a dollar,” says Topf. “ They need to understand that money doesn’t just fall into a bank account. You have to work for it, and you need to understand how to manage it. It ’s not just saving that is important!” The JA program also counts as the cadets’ service learning project, benefitting the students and the community. “It’s a great opportunity for students to mentor younger kids,” says Topf. “The elementary students look up to them; they act like they’re in the NFL! It’s also a good opportunity for my students to get in front of people and engage. It takes a lot to stand in front of a group of people and give a lesson.” Cadets also learn lessons not in the JA curriculum. “I think sometimes it helps put things in perspective about their own teachers as well,” Topf says with a laugh. “After standing up in front of a bunch of kids who have had too much sugar and trying to teach a class, they come back to the high school classroom and think, ‘Maybe I should be quiet.’ They realize how difficult it can be to control a classroom.”
Topf, who served for twenty-four years in the US Army, says that ROTC students do behave somewhat d i f f e re n t l y t h a n t h e i r c l a s s m a t e s . “You’re going to find less chaos to an extent, and a little more responsibility among the students,” he says. “While the cadet program is managed and overseen by instructors, it is run and led by cadets and follows a hierarchy just like a military-type organization.” The students attend squad leader meetings, company commander meetings, and staff meetings just like they would in the military. As they progress, they take over more leadership responsibilities. “When I first got here, I thought I’d try being an ROTC instructor and give it a couple of years. Now I’m in my seventh year, and I truly enjoy it. It’s a very impactful job,” says Topf. “As for JA, it’s such a good thing for the students and the community in general that I can’t imagine doing something else as our service learning project,” he adds. “I’ve even suggested to other schools that they look into doing the same.”
HONORING OUR VISIONARY LEADER,
SHERI ERI BURET BURETTA 2024 LAUREATE
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take leadership and teaching courses as provided by Cadet Command during their first semester. The second semester consumer economics curriculum provides them with the necessary skills to deal with financial i s s u e s l i k e t h o s e a d u l t s ro u t i n e l y encounter. After classroom instruction is complete, they receive a brief from JA and coordinate with teachers from Chinook Elementary to discuss where they ’ll teach, and then they begin practicing the classes. Responsibility ramps up for the fourth year. “Our cadets are running the program at Chinook Elementary while a couple of third-year cadets piggyback as a way to learn what they’ll be doing the next year,” explains Topf. “They learn all of the groundwork for the skills they’re going to teach, which lessens the learning curve.” Through games and activities, the elementary students learn monetary skills, including earning, saving, and the difference between wants and needs. “In this day and age, especially in this economy, it’s very important for kids to understand the value of
Kerr y Tasker
How JA helps me think about my future By Alia Halat
Sens vec tor | Envato
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Camping with Sharks
32 | January 2024
W
hen I went to JA Biz Camp, I started thinking about my f u t u re f o r t h e f i r s t t i m e . A t camp, I learned that starting and running a business takes a lot of work, but with a good idea and hard work, even someone like me can start a business and make a difference in the world! The camp counselors taught u s ev e r y t h i n g w e n e e d e d t o know about starting a business. They told us to believe in ourselves, be creative, find a need, make a plan, and become experts in what we're selling. We also learned about advertising and understanding our customers. At the end of the camp, we got to pitch our own business ideas to real business owners, who were called the "sharks." There were so many great ideas, like cafés and tech products. I wasn't sure what to do, but then my camp counselors helped me come up with the idea for "Alia's Treasure's Untold." My business sells custom paintings and “magic” wooden boxes. I like painting, so I decorated Alaska Business www.akbizmag.com
JUNIOR ACHIEVEMENT
a wooden box in painting class that holds my treasures. The boxes are “magic” because they use something called Radio Frequency Identification (RFID) locks. I first learned about RFID when I was on vacation and I got a toy wand. I wondered how I could use it to open hotel room doors. Then I watched a lot of YouTube videos to learn about RFID and wanted to put one in my treasure box. I made business cards and a sign to promote my business. On the sign, I wrote what my business was about, who I was selling to, why my business was special, how much money I needed, and how much profit I could make. I even drew a mascot named Sally the sea turtle and sharks on the sign for the "sharks." I practiced my whole presentation over and over again the night before I had to present my business idea to the "sharks." I tried to sound confident and not nervous. I was excited when I found out the "sharks" liked my business idea. I had a lot of fun at JA Biz Camp. I learned you can make a business out of doing something fun like painting magical boxes. Now when I think about my future, I believe that anything is possible! Guest author Alia Halat is an elementary s t u d e n t a n d J u n i o r "A c h i e v e m e n t of Alaska participant.
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Building Workforce Foundations JA of Alaska’s pathways to purpose, literacy, and entrepreneurship By Flora Teo
A
laska is not alone in the workforce shortage. The US economy continues to experience the after-effects of the COVID-19 pandemic and growing global tensions. In the workplace, The Great Resignation has put an even greater strain on employers who were struggling to find qualified workers before the pandemic. The pandemic also exacerbated the existing “skills gap” many industries were already facing. Countless trained and experienced Baby Boomers retired during the pandemic. Though it remains to be seen how the pandemic impacts the careers and finances of Generation Z and [school-aged and younger] Generation Alpha, some things can be done now to help them better manage the transition from school to work to life beyond in the coming years. Junior Achievement ( JA) can help young Alaskans become better prepared adults and build a foundation for Alaska’s workforce. 34 | January 2024
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The Great Resignation and Quiet Quitting
There are many structural reasons people are quitting their jobs, including pay, benefits, feeling underappreciated, and more. But these reasons existed before the pandemic, and people were not changing jobs at historic rates like they are now. One underlying cause could be a lack of a sense of purpose in work. In fact, www.akbizmag.com
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JA programs are designed to engage students on the subject from their first day in kindergarten to their K-12 years… because, in many states, career and work readiness aren’t addressed until later high school grades, which may come too late for students who haven’t given the subject much consideration in earlier grades.
JUNIOR ACHIEVEMENT
research by consulting firm Gartner shows that the pandemic caused nearly two-thirds of Americans to reconsider the importance of “purpose” in their personal and professional lives. Research by the Federal Reserve Bank of New York shows that only 27 percent of college graduates work in a field they studied in school. Additionally, a s t u d y by M i d A m e r i c a N a z a re n e University found that just 25 percent of Americans were in their “dream career.” A few conclusions can be drawn from these statistics. First, there continues to be an inherent disconnect between education, higher education, and preparation for a job or career. While some could make the case that the goal of education and higher education isn’t primarily to prepare young people for work, recent research shows that 86 percent of Americans believe that a college degree can help advance a recipient’s career. A second conclusion is that while not everyone can be expected to be in their “dream career,” employee satisfaction is key to retention. Employees who feel they are doing what they intended to do for a living and utilizing their talents and skills to support their interests are more likely to find purpose and satisfaction at work.
research firm Ipsos: • 73 percent of JA alumni who graduated college say they work in a field they studied in college. Research by the Federal Reserve Bank of New York shows only 27 percent of college graduates say the same. • 69 percent of JA alumni say they work in their “dream career.” Only 25 percent of Americans say the same, according to MidAmerica Nazarene University. • 80 percent of JA alumni say their careers are “extremely fulfilling.”
according to a report by NPR. At JA, we view financial literacy as “the other literacy.” Just like reading or writing, we all deal with money on a near-daily basis. Yet too often, financial literacy programs consist only of a one-semester elective course in middle or high school that skims the surface of basic concepts. Nobody would be expected to read a book or write a term paper after one semester of lessons on reading or writing, yet that’s essentially what happens with financial literacy education. JA’s pathways approach gives students the tools to increase their chances of achieving economic security as adults. Research results bear that out: • 82 percent of JA alumni agree they have a strong financial footing. • 68 percent of JA alumni between the ages of 18 and 29 say they are financially independent of their parents. According to the Pew Research Center, 34 percent of Americans in that age range say the same. • The average age at which JA alumni report paying off student loans is 30. • JA alumni report purchasing their first home at 29. The National Association of Realtors reports the average age Americans purchase their first home is 33.
We at JA believe it’s important to offer programs that cover entrepreneurship and small business across multiple grade levels… Our approach gives students the tools to A Pathway to Purpose increase their chances JA works with partners in education and the business community to help An Entrepreneurial e n s u re y o u n g p e o p l e m a k e m o re of starting or owning Awakening informed choices that lead to greater One of the surprising outcomes of work and career satisfaction as adults. a business as adults. the pandemic’s impact on the economy JA employs a “pathways” approach to teaching career and work readiness to young people. By pathways, we mean that JA programs are designed to engage students on the subject from their first day in kindergarten to their K-12 years. JA takes this approach because, in many states, career and work readiness aren’t addressed until later high school grades, which may come too late for students who haven’t given the subject much consideration in earlier grades. JA’s proven programs are shown to inspire and prepare young people for success. Our approach is demonstrated to give students the tools they need to increase their chances of achieving their potential in work, career, and life. According to a recent survey by 36 | January 2024
The Other Literacy
Nearly one-third of Americans (29 percent) say they lack savings to cover one month’s expenses. With inflation near a forty-year high, 56 percent of Americans report that rising prices are causing financial hardship. Even before recent cost increases, 40 percent o f A m e r i c a n s s a i d t h ey s t r u g g l e d to pay for healthcare and food, including households making more than $50,000 a year. While real earnings have remained flat or declined for many US workers in recent years, even those considered high-income earners have struggled to pay bills, save for retirement, and prepare for financial emergencies,
is the surge in new business creation. In fact, the rebound in entrepreneurial activity disrupted nearly forty years of lackluster small business growth, which had only worsened following the Great Recession of 2008. T h e c a u s e s f o r t h i s i n c re a s e i n new business creation are many. For instance, research by Intuit shows that “The Great Resignation” is fueling the boom in small business as more Americans leave their jobs and careers and strike out on their own. The next generation also feels this sentiment, with research by JA and investment a n d i n s u ra n c e f i r m T h e H a r t f o rd showing that 60 percent of teens would prefer to start a business over having a traditional job. However, while the interest and intent
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are there, starting a business is still risky. According to the US Bureau of Labor Statistics, one in five businesses fail in the first year, and nearly half fail by the five-year mark. This leads to the question, “What can be done to increase the odds of success for startups?” According to the Harvard Business Review, the average age of successful
starting or owning a business as adults. Research demonstrates the results: • 51 percent of JA alumni say they have started or owned a business. • 36 percent of JA alumni say that JA positively influenced their perception of business owners or community leaders. • 27 percent of JA alumni say they employ 100 or more people. The US Census Bureau reports only 1.7 percent of US small businesses say the same. To l e a r n m o r e a b o u t J u n i o r Achievement, visit www.JA.org. If you want to get involved in Alaska, contact me at fteo@ja-alaska.org.
Filling the Knowledge and Experience Gaps
F l o r a Te o i s p r e s i d e n t o f J u n i o r Achievement of Alaska.
Given that most of us will work for a small business at some time, and all of us interact with small businesses, we at JA believe it’s important to offer programs that cover entrepreneurship and small business across multiple grade levels. Our approach gives students the tools to increase their chances of
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Too often, financial literacy programs consist only of a onesemester elective course in middle or high school that skims the surface of basic concepts.
first-time entrepreneurs is 45. However, as the Harvard Business Review points out, venture capital funds tend to put their resources behind startup founders in their late 20s or early 30s. Ironically, the reason most startups fail is related directly or indirectly to lack of experience, including launching a product or service where there is no market need, running out of cash, not having the right team, cost and pricing issues, and not having a business model. This points to the fact that— given the proper information, tools, and guidance—young entrepreneurs can increase their chances of success with their business endeavors.
TELECOM & TECH
Cybersecurity Demands Unwavering Attention and Proactive Effort Basic guidelines for passwords, multilayered defense, and awareness training By Joshua Rabe
T
he cybersecurity landscape, much like our collective digital e c o s y s t e m , i s ev e r ev o l v i n g and changes daily. Staying on top of threats and best practices is daunting, but ensuring that your organization maintains adequate cybersecurity h a s re g u l a t o r y, f i n a n c i a l , a n d reputational implications. There are many reasons you should consider updating your cybersecurity approach, financial risk being key among them. We are seeing an increase in requests from clients to update their cybersecurity framework to meet new insurance and compliance audit requirements. Concurrently, an investment in cybersecurity can be beneficial for reputational preservation. Each instance involves meeting strict g u i d e l i n e s m e a n t t o h e l p p ro t e c t your data and instill confidence that
38 | January 2024
you are doing well on behalf of your clients and their sensitive information. While this may seem like an exorbitant amount of effort on the front end, robust information security means less headache and cost savings in the event of an incident or attack. In the worst scenario, an unprepared company might be locked out of company data for weeks or months or may never recover from a cyber-attack. The needs of individual organizations are vastly different. However, there are some basic guidelines to consider that can easily improve your approach t o c y b e r s e c u r i t y, re g a rd l e s s o f your size, scale, or need for special compliance considerations.
Password Policies Need Updating
The days of a singular password for
all applications and logins are long over, though some organizations have not implemented compliance policies for this simple but effective security step. For example, passwords should never be duplicated and should m e e t c o m p l ex i t y re q u i re m e n t s t o prevent brute force attacks. These requirements should be verified on a regular basis through a password audit or automated password vulnerability scan. Updating password policy is a crucial step in safeguarding your first line of defense, as outlined in many c o m p l i a n c e f ra m ew o r k s . U t i l i z i n g password managers and multi-factor authentication (MFA) as a part of your password policy will simplify these processes for all users and aid in the uptake of these requirements. Adding multifactor authentication is one of the easiest ways to significantly
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improve your security posture. MFA takes advantage of a three-legged approach to security: 1. Something you know: Password or PIN 2. Something you have: Physical key or authenticator device 3. Something you are: Fingerprint or face scan Using two or more of these “legs” will significantly improve protection of your company’s data, your customers’ data, and generally secure your businessrelated accounts. You may be familiar with authenticator apps used to confirm your identity prior to logging in to certain portals. (A text message M FA i s n o t o r i o u s f o r i n v o l v e m e n t in cyber-attacks, so switch to an authenticator app if you can!) T h a n k f u l l y, m a n y o r g a n i z a t i o n s are already paying for the tools to access MFA, and if not, there are affordable options to add this to your existing infrastructure. For example, Microsoft customers likely have access to MFA options which integrate into existing Windows infrastructure and single sign on configurations that can be added to existing applications. Additionally, these builtin features can be augmented to meet stringent compliance requirements like Cybersecurity Maturity Model Certification 2.0. Other organizations that use business suite software like Google Workspace have similar tools built-in and ready to implement. For www.akbizmag.com
small teams, this may be as simple as turning the MFA option “on.” For larger organizations, some special configurations may be necessary. Creating and adhering to a password policy are two separate issues. Be sure to create a policy that is easy to follow, then utilize your information technology (IT) department and tools to ensure adherence to the policy. Layering an MFA or single sign-on methodology can complement your password policy, ease uptake for your users, and reduce the level of password fatigue experienced.
Invest in a Layered Approach
Having adequate password protection is only one component of what is known as a layered approach to information security. This tactic of layering security mechanisms is called Defense-in-Depth (DiD). When correctly implemented, DiD applies multiple points of authentication and continuously monitors to ensure the activity and users on a network are benign and belong. Take, for example, the analogy of an apartment building. The exterior of the building may have a RFID/badge swipe system. A doorperson at the front desk could check the IDs of any unknown visitors. On the interior, each room has its own key and lock—including public spaces like the fitness area and mailroom. The maintenance and utility rooms are not accessible to tenants, Alaska Business
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Background processes and physical barriers are part of layered protection, along with organizational policies and individual awareness. Stratus Ser vices
though tenants have been instructed on move-in to report any activity that they believe to be suspicious. Defense-in-Depth functions similarly. Physical barriers are in place to keep bad actors out of certain private rooms of your organization. Policies like password guidelines and data classification are created in consultation with your IT team or service provider to meet the needs of your organization or governing compliance structures. In addition, background processes like firewalls, spam filtering, antivirus, and vulnerability scanning keep your team protected with little manual input. Final layers of protection include direct user support with items like MFA and cybersecurity awareness training. Considered as their individual pieces, none of these are sufficient to protect your network. When layered, these components provide a highly secure environment. Sometimes a service provider will bundle a collection of these services together. Be cautious of vendors or managed service providers or managed security service providers (MSSPs) selling packages as an approach to a complete security solution. Although it might feel like a cost-effective solution, this may not be optimal for your organization. In most cases it 40 | January 2024
is better to understand the specifics o f y o u r e n v i ro n m e n t a n d b u i l d a custom solution designed to meet specific business needs, as opposed to trying to fit an organization’s unique requirements into a predefined box of cybersecurity tools. When building a solution that takes into account your specific needs and workflows, the total cost of ownership may be less expensive than a bundled solution. Documentation is key. It is important to understand that implementing a cybersecurity toolset is not a “set-itand-forget-it" type of implementation. Whether you are utilizing in-house I T o r a n M S S P v e n d o r, l o o k f o r a plan that offers you an audit or an o n g o i n g re p o r t w h i c h s h ow s h ow your security is working and that it is tested and modified on a continuous basis. Understanding these reports will provide insights and show how your IT and security products are evolving to keep up with threat actors a n d m a l w a re . T h e re p o r t s , a l o n g with knowledgeable consultation, will provide actionable feedback to ensure your network meets the needs of various compliance frameworks.
Training Is Essential
“Who is responsible for our security?” is a commonly asked question. Your
layered security is only as good as your weakest link. Robust security should be shared among every user that touches your network. While each user has a different role, it is the responsibility of your entire staff to help secure your network. The IT team is responsible for maintaining the infrastructure and monitoring, decision makers (with input from IT) oversee policy and allocating funds, and general users are tasked with flagging suspicious activity and following best practices. A powerful tool in developing this mindset for your organization is to implement cybersecurity awareness training. The specifics of these trainings vary from modules to simulated social engineering, from phishing a t t e m p t s t o t ra i n i n g v i d e o s . T h e important piece is that everyone in your organization experiences and understands what is expected of them. For example, the appropriate course of action one should take if a suspected phishing email is received. Many vendors offer this training, a n d s o m e p rov i d e r s i n c l u d e i t a s a part of their service package. F o r ex a m p l e , i n a d h e re n c e t o U S Department of Defense contracting compliance, Stratus Services provides training via KnowBe4. These training modules include a series of videos, comprehension checkpoints, and reallife exercises like simulated phishing emails. After initial training during employee onboarding, organizations can monitor the behavior of employees’ reactions to these fake, malicious emails and make adjustments to training or create follow ups as needed. The goal is to create awareness that all team members are pivotal to the success of your cybersecurity. Each organization and department is unique, and you should work with your IT and compliance experts to ensure the training your employees receive meets the standards of the work they do. Different rules govern different compliance frameworks, and your team should help the organization meet these specific use cases.
Implementing a New Approach
Ta c k l i n g c y b e r s e c u r i t y c a n b e daunting, and finding reputable vendors that will serve the needs of your organization is no small
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feat. The ever-evolving landscape of cybersecurity demands unwavering attention and proactive efforts. Reevaluating your approach to p a s s w o rd p o l i c y, d ev e l o p i n g a multilayered approach, and getting your staff trained on the tactics threat actors are using are all great ways to begin securing your infrastructure. The implications of a lax security posture have grown from mere inconveniences to potential financial ruin and reputation damage. Whether driven by regulatory mandates, i n s u ra n c e a u d i t re q u i re m e n t s , o r the imperative of safeguarding your organization's image, investing in robust cybersecurity is no longer o p t i o n a l . A d d i t i o n a l l y, i n s t i l l i n g a foundation of trust with your
customers, that their data is safe with your organization, is vital in our digital world. Compliance frameworks—such as the Health Insurance Portability a n d A c c o u n t a b i l i t y A c t ( H I P PA ) , Cybersecurity Maturity Model Certification (CMMC) 2.0, and National Institute of Standards and Technology (NIST) 800-171—provide crucial guidelines for organizations to follow. Collaborating with compliance experts and service providers is essential to ensure that your security practices align with these standards. In this dynamic cybersecurity landscape, staying ahead of the curve is not just a competitive advantage but a fundamental necessity. Investment in cybersecurity today can mitigate
r i s k s , p ro t e c t s e n s i t i v e d a t a , a n d ultimately safeguard the reputation and financial health of your organization in the face of an increasingly sophisticated threat landscape. Joshua Rabe is the owner and CEO of Stratus Services, an IT services and security company based in Anchorage. He is an advocate for helping clients to turn needs and g o a l s i n t o s e c u re and effective technological solutions. If you’d like to see how your cybersecurity stacks up, visit stratus-services.com.
Whether driven by regulatory mandates, insurance audit requirements, or the imperative of safeguarding your organization's image, investing in robust cybersecurity is no longer optional. Free 877-868-3569 Phone 907-868MATERIAL FLOW Toll Fax
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Flyntlok
SMALL BUSINESS
Coding Kitchen Flyntlok’s recipe for dealer management and customer relationship software By Tracy Barbour
K
orn fritters used to draw diners to Sourdough Mining Company, on the banks of Campbell Creek near Midtown Anchorage, until the restaurant closed in 2016. The cost of renovating the building, under the same owner as the neighboring Peanut Farm, was prohibitive. “I used to jog by it on the trail every day, and I watched it get more run down over time,” says Sean McLaughlin. The CEO of Alaska Gear Company a n d t h e o w n e r o f C r a i g Ta y l o r Equipment saw the potential to add the building to his business holdings. “My first company [in Boston] was h o u s e d i n a re p u r p o s e d f a c t o r y, so I was familiar with this level of renovation,” McLaughlin says. After two years of work, the space was ready in December for a new tenant—but it’s not a restaurant. Where once a kitchen cranked out “world famous” hot-buttered corn, 42 | January 2024
McLaughlin’s team is crunching code. The building is now the headquarters of his software development company, Flyntlok. McLaughlin says, “Flyntlok was g row i n g , a n d I k n ew o u r c u r re n t location had no options for expansion.” The sight of the vacant Sourdough Mining Company inspired him. A local fixture for thirty-two years, the restaurant was imbued with an incredible history, signature food, and distinctive décor. McLaughlin wanted the renovation to retain the original character. “When the building shut down, they didn’t touch anything,” he explains. “It was like a museum that was shut down. I saw in it a place that I could add some high-tech flourishes, so it would be a cross between old and new. I kept some of that but put in very modern fixtures, including an updated bathroom, new gym, and locker rooms.” The revamped space is perfectly
suited for Flyntlok and its fifteen employees, who had been working at an office a short distance down Old Seward Highway. About half of them had been working in a garage. At the new office, the company can benefit from having its creative staff in one place. “Everyone is excited,” McLaughlin says. Besides providing an enhanced work environment, Flyntlok’s new location is important for talent recruitment. Many high-tech startups are repurposing old structures with character to attract a certain type of employee. That was a key impetus for putting a computer company in an ersatz gold mine. “ You don’t want a standard office building,” McLaughlin says. “You want something that speaks to the youthful exuberance of entrepreneurs.”
Filling a Niche
The name Flyntlok alludes to the flintlock firearm and to Flint Lockwood,
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Flyntlok’s remodel of the former Sourdough Mining Company restaurant. Flyntlok
“You don’t want a standard office building... You want something that speaks to the youthful exuberance of entrepreneurs.” Sean McLaughlin, CEO, Flyntlok
the aspiring inventor character from the movie Cloudy with a Chance of Meatballs. The “cloud” is key: Flyntlok has positioned itself as the “leading and only true” software as a service (SaaS), cloud-based equipment and dealer management system (DMS) built natively in the computing cloud. The product represents a unique solution for McLaughlin personally and for the marketplace in general. McLaughlin launched Flyntlok in 2018 to support his other businesses. The goal of a DMS like Flyntlok’s is to offer a single sign-on environment for employees of a dealership like Craig Taylor Equipment to streamline i n t e r n a l a n d ex t e r n a l p ro c e s s e s . W h e n i m p l e m e n t e d p ro p e r l y, t h e system optimizes operations across v a r i o u s e m p l oy e e s , re g i o n s , a n d m a n u f a c t u re r s . I t a l s o f a c i l i t a t e s communication among different departments, including management, marketing, sales, rental, parts clerks, technicians, and accounting. “We are not just trying to do this,” McLaughlin says. “We are succeeding a n d w i l l d e l i v e r 1 0 0 p e rc e n t A R R www.akbizmag.com
[annual recurring revenue] growth this year. We are solving problems for Alaska companies.” A c o m p e t i t o r o f C r a i g Ta y l o r Equipment with offices just around the corner from the old Sourdough M i n i n g C o m p a n y, C o n s t r u c t i o n Machinery Industrial (CMI), is already a Flyntlok customer. "CMI was one of the first companies to recognize the potential of Flyntlok as a local software startup squarely focused on what we do as a business,” says CMI CFO Travis Verley. “We knew our old dealer management system was holding us back, but there was not a fundamentally different offering until Flyntlok came along.”
Cloud-based Processes
F l y n t l o k ’s S a a S s o l u t i o n a l l o w s customers to connect to and access cloud-based applications over the i n t e r n e t i n s t e a d o f d ow n l o a d i n g software to a desktop PC or business network. With this type of delivery model, the software is centrally hosted, licensed on a subscription basis, and accessible to end users Alaska Business
through their web browser. As a software delivery model, SaaS offers a variety of important benefits for users. Primarily, SaaS is inherently mobile, easily advanced or improved, easily deployed, and easily connected to other “best of breed” software solutions, McLaughlin says. With McLaughlin’s direct involvement in the equipment industry, it ’s not surprising that Flyntlok’s system was designed in coordination with Craig Taylor Equipment’s leading brands: John Deere, Doosan, Stihl, and Bobcat. The company is fully invested in and committed to ensuring that its software helps dealers support sales, part sales, rentals, and service work. Built on Google’s cloud, Flyntlok’s multi-tenant dealer management platform is a much-needed, comprehensive solution, according t o M c L a u g h l i n . T h e f ro n t - t o - b a c k management software is designed to help equipment dealerships run all aspects of their business model, including point of sale, purchase orders, work orders, rentals, transportation scheduling, fleet planning, and January 2024 | 43
inventory and ordering; equipment rental operations with contracts and check-in and check-out procedures; and logistic support for equipment pick-ups and drop-offs or for multilocation dealer groups. Regardless of the type of support involved, Flyntlok provides access to a help desk that is integrated into the product. Customers can ask a question wherever they are in the application, or they can share their screen with support to receive more hands-on assistance.
Cutting-Edge CRM
Flyntlok’s remodel of the former Sourdough Mining Company restaurant exterior (top), and interior (bottom). Flyntlok
inventory planning. In addition, the software integrates in real-time with QuickBooks Online for general ledger, accounts payable, accounts receivable, and payroll. “There has been a protracted lack of investment in the space for quite some time,” McLaughlin says. “We are filling that hole in the market with one of the only new offerings.”
Full Support Services
To complement its DMS product, Flyntlok offers an array of support services. The company provides support to dealerships of all sizes, whether they operate one or twenty locations and have 3 or 300 employees. Flyntlok supports all aspects of equipment dealerships. For example, the company 44 | January 2024
has full point-of-sale support for both equipment and parts sales. Pointof-sale support includes integrated credit card processing and stored credit cards. Flyntlok also supports instant messaging and email customer relationship management (CRM) contact to facilitate order clarifications or to notify them when parts arrive. Flyntlok also provides equipment dealer service support, which includes a service system for work orders and warranty claims. From scheduling to billing, the company handles each step. Service managers can monitor the activity to see which technician is clocked into which work order and what their overall dealer backlog is. Other areas that Flyntlok supports include equipment dealer parts
As an innovative software company, Flyntlok is focused on maximizing the efficiency of its DMS product. In October, Flyntlok began offering an advanced CRM capability that allows dealers to manage the full lifecycle of their customers and prospects, from handling incoming leads to quoting, sales, and customer experience follow-ups. The system for managing customer relationships meshes with Flyntlok’s existing suite of tools. It integrates with customers’ external marketing websites to automate the creation of leads into the DMS. It contains an overview of customer interactions, purchase history, and preferences to enable personalized interactions and tailored services. Communication tools to allow real-time engagement with customers tied directly to existing inventory, parts, and other critical data. And advanced analytics provide actionable insights into customer behavior and native cloud integration. The new CRM features basically close a gap with old DMS vendors, according to McLaughlin. “CRM was never included, but it should have been,” he says. “We heavily rely on SMS [short message service] for this part of the application.” As a software company in Alaska, Flyntlok is somewhat of an outlier. But Alaska knows equipment, McLaughlin says, and he is confident i n h i s f i r m’s a b i l i t y t o b e c o m e a s world famous as Sourdough Mining Company’s korn fritters. “I just cannot see why a software development culture couldn’t thrive in Alaska,” he says. “We think we can and that we can be competitive.”
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INDUSTRIAL SUPPORT SERVICES
Industrial Support Services I
mplied in the term “industrial support services” is a hierarchy: “industry ” functions for its own sake, and “support ” serves its needs. Industry depends on support to achieve its goals; support depends on industry for its purpose. To an Alaskan working at a desk or trudging through a blizzard in Deadhorse, where they stand in the hierarchy hardly makes a difference. The distinction is real, though, in the three-sector model of economies. The primary sector encompasses oil and gas, mining, fishing, and agriculture—pulling raw resources out of nature. The secondary sector is manufacturing, including utilities and construction. Together, these are “industry” (which might be as small as a beachcomber crafting driftwood into a cribbage board). The tertiary sector is services, which people encounter every day as retail, finance, hospitality, entertainment, education, healthcare, or personal care. A subset of services is business-to-business support: transportation, warehousing, legal counsel, consulting, communications, computing, and the like. In this section, “Office Outsourcing” delves into thirdp a r t y h u m a n re s o u rc e s m a n a g e m e n t , e s p e c i a l l y f o r contingent workers hired by North Slope oil companies.
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Air Systems Deliver Fresh Air to Each Room!
“ O n l i n e P l a n s R o o m s ” t ra c e s t h e evolution of a service that connects builders with construction jobs. Everyone appreciates a tidy workplace, especially healthcare providers, b u t ex p e r t s h a v e b e t t e r u s e s f o r their skills than cleaning; thus, “ C o m m e rc i a l C l e a n i n g . ” A n d “ T h e Science of Support” explores support for researchers working in the Arctic (who are considered the fourth sector of the economy). See other articles in this issue for more support services: the equipment m a n a g e m e n t s o f t w a re c o o k e d u p in the “Coding Kitching” by Flyntlok; computer security consulting in “Cybersecurity Demands Attention and Effort”; and management consulting i n B r i a n Wa l c h ’s re g u l a r c o l u m n , The Focused Manager. Upon their shoulders, industry stands taller. www.akbizmag.com
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The Science of Support
The deep roots of research support contractors By Scott Rhode
S
Patricia Morales | Alaska Business
cientists huddle on the stoop of the Barrow Arctic Research Center (BARC) building while a polar bear lopes across the grassy tundra. They watch the animal with a mix of caution and curiosity, but not because polar bears are their job. Not all of them, anyway; scientists come to the BARC to study atmospheric chemistry, sea ice, or the seasonality of Arctic plants. Polar bears are the job of the BARC support staff, who ride over the grass on snowmachines to encourage wildlife to keep its distance. Bear guarding is one service provided by UIC Science (UICS), which operates the BARC as a business line of Ukpeaġvik Iñupiat Corporation. The company also maintains the offices, labs, and computers inside the station and the environmental monitoring equipment outdoors. “Our services are logistics and technical support as well as outreach engagement for the scientists that come to our facility,” says UICS general manager Terri Mitchell. Those scientists include researchers from the European Union through the International Network for Terrestrial Research and Monitoring in the Arctic (INTERACT). The other INTERACT site in Alaska is Toolik Field Station, a miniature town by a lake in the northern foothills of the Brooks Range. “It is a nexus of Arctic research. It is where things such as climate change and other research are happening,” says Patrick Proden, Alaska operations manager for Polar Field Services (PFS).
48 | January 2024
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shipping out the waste. For Toolik Field Station, UAF hires a b o u t t w e n t y s e a s o n a l s t a f f f ro m March through October, augmenting twenty year-round staff. According to the station’s Communication and DEI Manager Haley Dunleavy, “This includes cooks, camp managers and operational assistants, maintenance workers, field assistants, Fairbanks-based logistical and vehicular support, EMTs, drivers, hazmat, et cetera.” Another twenty staff hired through Battelle Memorial
Institute provide additional support. Not all science support is in the f i e l d . M i d n i g h t S u n Te c h n o l o g i e s , a subsidiary of Kotzebue-based Kikiktagruk Inupiat Corporation, offers scientific support as part of its suite of services. The company deals in network engineering, systems integration, and operations management. Far removed from the Arctic, the offices for Midnight Sun Technologies are just outside of Washington, DC, where federal agencies are its biggest
Gamut of Services
S u p p o r t s e r v i c e s b e g i n ev e n a s researchers apply for grant funding. “We by nature become part and parcel to that planning,” says Proden. “There's a whole gamut of cost estimation and project planning that goes into that.” PFS has experience in expedition design, frontier logistics, extreme c l i m a t e o p e ra t i o n s , c a m p d e s i g n , remote power and communications systems, freight movement, and as a cultural liaison. Before researchers go out to the field, support staff help select sites, assist with permit paperwork, provide safety trainings, schedule travel and lodging, and arrange lastminute fabrication or repairs. At the end of the season, they might handle delicate scientific samples. They also handle other unavoidable specimens: support service includes maintaining bathrooms and pit toilets,
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January 2024 | 49
INDUSTRIAL SUPPORT SERVICES
Based in Fairbanks, PFS is subcontracted by Battelle Memorial Institute, a nonprofit that runs several national laboratories. Battelle Memorial Institute is the prime contractor in Alaska for research funded by the National Science Foundation (NSF), w h i c h a w a rd e d t h e U A F I n s t i t u t e of Arctic Biology a five-year, $19.7 million dollar grant in 2022 to continue managing Toolik. From special instruments and coldweather gear to lunches and laundry, Proden and his three full-time staff coordinate with other service providers, which might include partners like UICS, to support scientific fieldwork. Proden says, “One of the things I’ve appreciated about working with Polar Field has really been the kind of ‘git-erdone’ attitude. There is no barrier to provide science support.”
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While putting in a research camp at Chevak, Polar Field Services staff navigate river ice. Polar Field Services
clients. Researchers at the US Food and Drug Administration, National Institutes of Health, or US Department of Defense count on the company from Kotzebue to deliver technology solutions.
Research Participants
Someone has to set up, inspect, and maintain the boardwalk that protects sensitive tundra at a research camp, and that duty falls to support staff. Polar Field Services
A bear guard working for UIC Science helps a field research team. Lloyd Pikok Jr.
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Military clients are also part of the PFS portfolio, as well as university researchers not funded by the NSF. The company has also diversified into supporting start-up entrepreneurs and the film and TV industry. “Polar Field, as an employee-owned company, is continuously exploring other opportunities and other clients from an income generation perspective,” says Proden. “Some of the support t h a t ’s b e e n o f f e re d t o re a l i t y T V shows is an example.” Proden estimates that PFS supports between sixty and seventy research teams each year. “They vary in terms of some of them being very, very topheavy, relative to support that we provide. For instance, a camp put in Chevak or just outside of Bethel may have a camp manager and camp cook,” he says. Compared to setting up a kitchen and latrine on the tundra, Proden considers truck deployments up the Dalton Highway to Toolik Field Station to be simpler. One consumer of science support s e r v i c e s i s G o I w a h a n a , re s e a rc h associate professor at the UAF International Arctic Research Center. Specializing in geocryology, Iwahana has authored papers on permafrost caves, bacteria in subzero brines, and methane emissions from Alaska Range glacier runoff. On the North Slope, he used support services for a field project from 2017 to 2019. “A guide or two participated in our field campaigns,” Iwahana recalls. “ They provided safety support for the snowmachine trips and camping logistics. The contract didn’t include a cooking service, but the guide helped with the kitchen work too.” In his field campaigns, typically two researchers and a student assistant were joined by a contract guide or two. At an established facility like Toolik Field Station, the ratio is closer to two researchers for every support person in summer. “The number of researchers at the station at any given point in time varies between 0 and 20 in the winter Alaska Business www.akbizmag.com
Starting Support
The Arctic coast has long been the domain of Iñupiat whale hunters, dating back to commercial whaling ships borrowing their knowledge. “ T h e re s i d e n t s o f U t q i a ġ v i k h a v e been providing science support t o re s e a rc h e r s f o r ov e r s ev e n t y five years now,” says Mitchell. But it wasn’t until 2014 that the village corporation organized those services as UIC Science. A few years earlier, in 2010, support services company Fairweather created a new division, Fairweather Science, to specialize in this area. In addition to coordinating research, Fairweather Science provides data collection, analysis, and reporting for its industry clients. In other words, its service is science. Fairweather Science helps clients fulfill permit requirements through cultural awareness training, marine
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mammal surveys, and remote sensing to monitor ground-based wildlife. One of its innovations is the detection of polar bear dens. Justin Blank, who helped develop that technology as senior scientist, has gone into business for himself as Environmental Research and Consulting. More than twenty years ago, a single entrepreneur started PFS. Jill Ferris worked in Antarctica as an ice shuttle driver, fueler, and outfitter for fifteen years, mostly with Antarctic Support Associates. By 1999, she relocated to the other pole, settling in Alaska as she had always planned. She established Polar Field Services to perform in the Arctic what she had done for South Pole researchers. A few of her Antarctic colleagues helped start the company, and when she retired in 2021, PFS became 100 percent employee owned. PFS competed against Battelle Memorial Institute to be NSF’s prime contractor in Alaska, and the bid paid off when Battelle Memorial Institute hired PFS to execute the contract. Through the Arctic research operations office in Fairbanks, PFS houses
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project managers, stores field gear, and hosts trainings. Much of what PFS does overlaps with oil field service companies. “The services are similar,” Proden acknowledges. “The same sort of things that go into supporting remote oil extraction are the things we do for remote science support: charters, equipment upkeep, camping gear, transportation, et cetera. However, PFS has not directly supported the Alaska oil industry to date.”
Allied Interest
The overlap between science and industry support goes back to the f o u n d i n g o f F a i r w e a t h e r. S h e r ro n Perry started the company in 1976 by providing aviation weather observation to North Slope explorers during the Prudhoe Bay boom era. The company boasts of strong re l a t i o n s h i p s w i t h H i l c o r p A l a s k a , ExxonMobil, and ConocoPhillips. When Shell was drilling in the Arctic Ocean, Fairweather managed a discharge monitoring program as a joint venture with Wainwright-based Olgoonik village corporation.
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and 130 in the summer,” Dunleavy says. In winter, support crew might outnumber scientists by a five-to-three ratio, she estimates.
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Located about 130 miles south of Prudhoe Bay, Toolik Lake has been a hub for Arctic research since 1975. The UAF Institute of Arctic Biology manages labs, dorms, and utilities at the station. It even has a sauna. Jason Stuckey | Toolik Field Station
A field camp receives a cargo delivery from a Dehavilland Beaver. Polar Field Services
A home away from home for field researchers, with comforts provided by a support contractor. Polar Field Services
“Science careers span a wide range of roles, and the path into them varies greatly… Support staff like those who work at Toolik Field Station and PFS serve a valuable role in research and are essential to making science happen.” Haley Dunleav y, Communication and DEI Manager, Toolik Field Station
Now Fairweather is under the Doyon, Limited umbrella. The Alaska Native corporation for the Interior region acquired the company last May. Doyon is folding Fairweather ’s 180 team members into its oil field services pillar. Fairweather Science is there, too. Its research into polar bear dens, which involved airborne detectors flown over artificial dens with varying ceiling thicknesses, was partly funded by the Alaska Oil and Gas Association to help the industry avoid disturbing the animals. Yet it would be a mistake to assume that science support is a spinoff of oil field support, according to Mitchell. “I suppose it is easy to feel that science s u p p o r t c o m e s f ro m o i l i n d u s t r y support because of the close proximity 52 | January 2024
of our facility to Prudhoe Bay,” she says. “There are many science logistics support facilities around the world that aren’t located near oil production that I would say serve as an example that this is a stand-alone industry.” Likewise, Proden says PFS was never an oil industry spinoff. “I think we have very distinct missions,” he says. But there have been crossovers, such as when he worked as a director at Iḷisaġvik College. Proden recalls, “Back in the day, we did loads and loads of partnerships with BP and Arco, with job shadowing programs in support of building the next generation of students to get into the oil industry.” Mitchell adds that Ukpeaġvik Iñupiat Corporation has its own oil and gas division that supports industry clients,
separate from UIC Science. “Can our employees find jobs in the oil industry? Yes, permit compliance does create jobs that are similar in nature, like bear guards for example. But that isn’t the reason UIC Science exists,” she says. The BARC was built solely for science, Mitchell points out, and research there goes back well before the oil industry was established on the North Slope. “I believe these are two standalone industries, but they have crossreferences that allow for workforce opportunities of similar nature. They developed in parallel, but science in Utqiaġvik goes back before our support of oil and gas production,” Mitchell says.
Valuable Roles
One way that UICS assists scientists is
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INDUSTRIAL SUPPORT SERVICES
with indigenous ecological knowledge. Its team includes Iñupiat whalers, hunters, and Arctic survival experts. “Our staff are traditional knowledge holders,” Mitchell says. “Indigenous w a y s o f k n ow i n g c a n s h a p e a n d detail predictions not considered by conventional science. Local knowledge can enable a research group to go out on the sea ice or the tundra and come back safely because they are guided by folks who live in that environment and have been taught by the generations that came before them.” Local knowledge can apply globally, too. Dunleavy says, “Many of the seasonal workers that Toolik hires will spend the other half of their year working similar positions in Antarctica, Greenland, and other field stations. For quite a few of our staff, it’s been a multi-decade career.” Dunleavy adds that careers in science are not necessarily a direct track from undergrad to PhD. “Science careers span a wide range of roles, and the path into them varies greatly,” she says. “Support staff like those who work at Toolik Field Station and PFS serve a valuable role in research and are essential to making science happen.” P ro d e n ’s c a re e r a t P F S s t a r t e d in science: he originally studied anthropology, and the Exxon Valdez oil spill cleanup in 1989 put him in touch with support services. The rest, he says, was “serendipitous.” Pathways into the field are varied, says Proden. “Someone interested in science support with PFS can do everything from outfitting field gear, spending time in the field directly supporting groups, be a mechanic working on a remote energy system or leading a snowmachine traverse, or a carpenter helping build a remotely located lab,” he says. “Interested individuals can also go into project management or operations and spend more time in planning and back-office support.” Whether flipping flapjacks, emptying a latrine, persuading a broken motor, fine-tuning a computer network, or shooing away a polar bear, support workers have a role in aiding the endeavor of scientific discovery. “Not often people think of the back side support,” Proden says, “but we like to be in the back seat to make things work seamlessly.”
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Online Plans Rooms Building resources in virtual spaces By Katie Pesznecker
Bubushonok | Adobe Stock
D
54 | January 2024
ecades ago, contractors seeking work opportunities would visit o f f i c e s p a c e s k n ow n a s p l a n s ro o m s — ro o m s p a c k e d w i t h b i d materials, blueprints, and other paperwork that they would sort through and photocopy or sit and do a take-off when a project with potential caught their attention. Technology has transformed and elevated this concept in today’s construction world, but the spirit of plans rooms remains the same: these virtual, online platforms compile and organize upcoming projects in searchable, sortable, and sensible fashion, creating a platform where would-be bidders can browse work prospects. Two private plans rooms operate in Alaska today. The Plans Room and the Associated General Contractors (AGC) of Alaska’s Online Plans offer a full range of services for bid-seeking general contractors, builders, construction suppliers, and others. AGC of Alaska members enjoy direct access to up-to-date project information through the Online Plans system that highlights projects throughout the state by providing visibility on opportunities, according to Clare Kreilkamp, AGC membership director. “By having a dedicated consultant whose job it is to scour project owners’ sites throughout Alaska, our members can rely on AGC’s Online Plans system to notify them of projects that are relevant to them through daily project email reports that highlight new projects and RFPs [requests for proposals], new project addenda, and winning bids information—taking the burden off of members to do that themselves,” Kreilkamp says. For those in the construction, contracting, and support services sectors, plans rooms make their lives simpler, promising convenience, efficiency, and a catchall of forthcoming work—from private projects to state efforts, school district construction, and more.
From In-Person to Online
While physical plans rooms still exist, Alaska’s have transitioned online, where construction project plans, specifications, and other relevant documents are available for contractors, subcontractors, and other stakeholders to review. These online rooms serve as central hubs for accessing and examining project Alaska Business www.akbizmag.com
For many years, The Plans Room was very much an in-person business, with more than sixty people sometimes passing through the office each day. Contractors would register with a project owner so they could get a copy of materials and submit bids. Staff would spend hours faxing bidder lists upon request. The in-person dynamics could make for interesting meet-ups between competitors. Ditz says, “Sometimes you would get maybe two contractors who were maybe trying to get the same set of plans to prepare their bids. The on-site atmosphere could get very interesting.” In its early days, The Plans Room published a weekly report for subscribers. That frequency has definitely accelerated with modern technology, Ditz says. “The minute you publish anything, it’s out of date, but that was the vehicle back in the day to let companies know about the projects,” she adds. The shift to digital technologies and the advent of the internet led to the development of online plans rooms.
“Sometimes you would get maybe two contractors who were maybe trying to get the same set of plans to prepare their bids. The onsite atmosphere could get very interesting.” Mary Ditz Business Manager The Plans Room
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details, allowing interested parties to prepare bids and proposals, track projects of interest, and view project addenda. Other available materials may include architectural drawings, engineering plans, specifications, and any other details relevant to the construction project. The Plans Room in Anchorage launched in the ‘80s, says business manager Mary Ditz, as an “information center ” for the Alaska construction industry. “Technology is constantly changing, and we’re constantly doing updates to fit our model to the industry,” Ditz says. “In the beginning, we actually had a very large office where we used to house all of the blueprints, plans, and specifications. The business model was that all the contractors, subcontractors, and suppliers would come into our office and make copies of said documents. Even in the middle of winter on a snowy day, if an addendum came out that affected a project, you’d have a dozen subcontractors driving to our office to copy a two-page document because they needed that information.”
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The transition to digital platforms has allowed for more timely, efficient, and accessible ways of sharing project information. In Alaska, it has opened up accessibility to statewide projects in some of the more isolated and far-flung locations.
Ramping Up the Pace
Today, virtual online plans rooms enable contractors to access documents remotely, collaborate with other stakeholders, and streamline the bidding process. This access to detailed project information is crucial for understanding the scope of work, materials needed, and project timelines. Plans rooms may also include features that facilitate communication and collaboration among contractors and project stakeholders. This can include messaging systems and discussion boards. “As tech ramped up, we got better tools for communicating back and forth, for verifying changes, tracking updates to projects, through to the point that the project on the day of the bid would announce the apparent low bidders, then they’d award a contract to a general contractor,” Ditz says. The user experience these days is also highly customized. Ditz outlined this example: a painting contractor receives a nightly email from The Plans Room of any new projects that have come in the previous day. The contractor can create certain filters and include specific keywords. If that hypothetical painting contractor ’s s e a rc h i n c l u d e d t h e w o rd “p a i n t , ” that would capture available work within their scope. U s e r s c a n a l s o l o o k a t p ro j e c t s in chronological order, from those bidding that day to those who are out for a certain duration of time. Other features also include access to owner information and any other relevant information for a particular job. The Plans Room users can submit questions to the project owner, and interactive tools allow users to send emails from the website to specific people on specific projects.
Visible Far and Wide
In Alaska, plans rooms create visibility on projects that are located far from major urban areas, whose 56 | January 2024
local industry may have few or no contractors and lack support services needed to complete work. Take for example recent projects i n C h e n e g a B a y a n d Ta t i t l e k , t w o small, off-the-road-system villages in Prince William Sound. The most recent US Census Bureau information reports each have fewer than fifty full-time residents. “They were remodeling two buildings and put that out to bid together as one project,” Ditz says. “I believe they were hoping to get better pricing.” The Plans Room can track a project’s traction and activity. For the Chenega Bay and Tatitlek work, “we had 357 hits to the project itself—those are unique visitors,” Ditz says. “And they came back 6,776 times to view the project. That’s the kind of reach and access we have for companies using our information.” Most users of The Plans Room’s services are Alaska-based, though some Lower 48 companies that do regular work in the state or provide s u p p o r t s e r v i c e s a re a l s o i n t h e mix. It benefits large and small businesses alike, Ditz says. “The mom-and-pop company doesn’t have the time to chase this information down on their own; they’re not going to go look at 500 websites or follow up when there’s an addendum or change to the project,” she says. “For a lot of them, they ’re sitting at home, after hours in their jammies, doing estimates on these projects. So for them, The Plans Room is a great benefit.”
Privileges of Membership
W i t h AG C , O n l i n e P l a n s b r i n g s specific benefits to members from smaller companies and service providers. “Many of our smaller members simply don’t have the staff and resources to dedicate an individual’s time to sourcing all of the project owner ’s sites to see where they might find their next job,” Kreilkamp says. “It’s purely a convenience factor and is a subtle networking opportunity to be listing their names on the bidders list to bring awareness of their skills set to other users of this system. Contractors can add themselves to the bidders list, which serves as free advertising to receive sub quotes and supplier information.”
“Members in all categories can source projects, add themselves to the bidders list for visibility and advertising purposes, and see who else is viewing projects to connect with other members for collaborative opportunities.” Clare Kreilkamp Membership Director Associated General Contractors of Alaska
AGC launched its Online Plans service in 2014 as a free benefit to members. This service was a natural progression for a nonprofit trade organization that formed in 1948 and aims to provide members with “products and services designed to improve and grow their business and enhance the professionalism of Alaska’s construction industry,” according to its website. Since Online Plans launched, “we have been receptive to member feedback, implementing updates so that the system functions best for those using it,” Kreilkamp says. AGC prides itself on allowing Online P l a n s a c c e s s t o a l l e m p l oy e e s o f its member companies. AGC’s membership comprises general and specialty contractors, as well as associates who represent the supply and service side of the industry. “ The jobs posted in our system p rov i d e a c c e s s t o a w i d e v a r i e t y
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offices to train the entire staff at once on an as-needed basis.” AGC’s Online Plans system lists all of the project information directly on its website as it ’s listed on the project owner’s site to avoid confusion a b o u t p ro j e c t t i t l e s . W i t h i n e a c h project, members can download documents and spec books to view information in its totality. “Through our system, members can internally share project information within their teams or to their clients a n d p a r t n e r s , a n d o n c e i t ’s b e e n established that they want to bid on this project, they can add themselves to the bidders list so others can contact them for services and sub quotes,” Kreilkamp says. “Members can sort projects based on job owners, regions, bid date, and many other sortable functions to customize the database as needed.”
Sustaining Business
Both AGC’s Online Plans and The Plans Room offer free trial membership for curious users and subscriptions at varying levels based
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on individuals’ needs. One of the largest victories for plans rooms is successfully capturing, updating, and sharing all relevant information in the fast-moving w o r l d o f c o n s t r u c t i o n b i d s . H ow do they pull it off? AGC has a consultant whose p r i m a r y re s p o n s i b i l i t y i s t o k e e p this system up-to-date. “Having a dedicated individual for this database minimizes overlap and duplication and allows the AGC staff to focus on maintaining exceptional service to our members on the many other areas where we support our members and Alaska’s construction industry at large,” Kreilkamp says. Ditz in part credits The Plans Room’s depth in its field. “The consistency we have at The Plans Room is our staff and our many, many years of experience,” she says. “People who work with me now have been with me ten-plus years. We’ve been doing this for a very long time, have great contacts with the agencies we work with, and have just been able to sustain the business for all these years because of that.”
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of projects so that members in all categories can source projects, add themselves to the bidders list for visibility and advertising purposes, and see who else is viewing projects to connect with other members for collaborative opportunities,” Kreilkamp says. “The types of projects that are added vary throughout the year, but at any given time you’ll find sources for equipment and materials sought, construction RFQs [request for quotes], supply and service RFPs—everything as it relates to the industry and beyond.” For the contractor looking for bids who are AGC members, access to the Online Plans system saves time by allowing them to set up saved searches based on regions and keywords, with daily notifications on any new projects that meet their specifications. I f AG C m e m b e r s n e e d s u p p o r t navigating Online Plans, that’s available too. Kreilkamp says, “ We offer our members access to this database free with their membership at AGC and provide on-demand training for this platform, with options to have a consultant come direct to members’
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Commercial Cleaning Let the experts do the dirty work By Amy Newman
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he commercial cleaning industry is a dirty business. It’s also expanding, spurred on by—no surprise—the COVID-19 p a n d e m i c , w h i c h d rov e h o m e t h e importance of cleanliness and hygiene to protect the health and well-being of employees and customers. “It’s a really vital industry, and I think COVID really showed building owners and property managers how important a clean and well-maintained facility is,” says Cynthia Mockbee, COO of Janco Commercial Cleaning, a familyowned and -operated commercial cleaning company in Anchorage whose niche is medical facilities and Class A office buildings. “It’s like a make it or break it, not just for the professional image but preserving the value of their investment.” According to data from Statista.com, there were slightly more than 1.2 million commercial cleaning and janitorial businesses nationwide in 2022, a 7.7 percent increase over 2021. The industry employed more than 2.1 million janitors and cleaners and had a market size of almost $90 billion. The Alaska Cleaning Company in Fairbanks contributed to that growth. When owners Matt and Remi Kawood struggled to find a company with the capacity to clean their rental properties, they decided to start their own. Their original plan was to offer residential services, but the couple quickly pivoted to commercial cleaning. “We wanted to fill a void we were feeling ourselves,” Matt Kawood says. “But cleaning is a funny thing. You can provide one service, and people will 58 | January 2024
ask if you do all these other kinds of cleaning. That’s when we moved into commercial cleaning.” Commercial cleaning is a broad term for an industry that provides cleaning and janitorial services to nonresidential spaces, says Genesis Parr, CEO of Janco Commercial Cleaning and Mockbee’s sister. It includes everything from general janitorial services to construction cleanup and floor care services, and it encompasses every type of industry and commercial space. “When you’re cleaning a commercial space, there are a lot of different categories,” Mockbee explains. “There’s medical facilities and surgical facilities. There’s office space, whether it’s Class A, Class B, or Class C. There are educational spaces. All of these are very different.” What they all have in common is the need for a tidy space when employees arrive in the morning.
Top-to-Bottom Clean
At their core, commercial and residential cleaners have the same goal: to rid a space of dirt, dust, and grime. That’s where the similarities end. “The cleaning services that we offer are different than residential,” Parr says. “Residential is way more personal, but the machines and products that people use for residential are different because of the volume and the amount of foot traffic.” I n d u s t r i a l - s t re n g t h c o m m e rc i a l cleaning products and equipment are more effective at cleaning large volumes of space than the materials used in residential cleaning.
“We’re using industrial equipment that you wouldn’t use in a residential place, like carpet extractors, that would clean the carpet on a larger scale,” Mockbee says. “ Vacuuming is just cleaning the dust bunnies; the carpet cleaner gets the germs.” Commercial cleaning also happens m o re f re q u e n t l y t h a n re s i d e n t i a l cleaning, which means the spaces are generally cleaner to start with. “Businesses typically hire us on a recurring basis [and] are generally a lot cleaner because it’s something that happens either daily or weekly,” Kawood says. “Homes can vary.” Although the space to be cleaned is often larger than a residence, there are fewer unknowns when cleaning a commercial space, says Rosi Nantes, owner of Initiative Commercial Cleaning, a woman-owned business in Eagle River which specializes in cleaning dialysis centers. There are occasional emergencies or seasonal tasks in the commercial space, but she says the day-to-day cleaning remains relatively consistent, a benefit to employees. “ You do it every night and it ’s a repetitive thing,” she explains. “You’re not expecting an extra bed to fix or an extra load of laundry to wash. It’s the same thing every night. I think you have more structure.” Breaks in that rhythm typically arise with emergency spills, for example, or seasonal changes. “Obviously breakup season is crazy,” Kawood says. “We do a lot more deep cleaning then, some more wall washing and carpet shampooing and stain removal during that time.”
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Janco Commercial Cleaning
“Clean businesses are something that you take for granted. It’s not typically something you look for, it’s something you feel.” Matt Kawood, Co-owner, Alaska Cleaning Company
Nantes, who is certified to handle blood and pathogens, is occasionally called in for an emergency clean-up. “If they have an accident in the lobby, we’ll go in and shampoo the carpets to clean the blood,” she says. “If there’s a bathroom accident, we’ll go in and clean it.”
Out of Sight
M o s t c o m m e rc i a l c l e a n e r s w o r k after regular business hours and, if they ’re called in during the day, must be mindful not to interfere with business operations. “Commercial cleaners have to work around employees and customers,” Mockbee says, and most of Janco’s a p p rox i m a t e l y 2 0 0 c l e a n e r s d o n’ t start until 5 p.m. “Sometimes they are cleaning throughout the d a y, a n d t h e n t h ey h a v e t o k e e p disruptions to a minimum.” Those daytime cleaners are typically www.akbizmag.com
in the medical setting, Parr says, and “basically tidy up everything and are there on call for any requests that the owner or the building needs.” Cleaning, disinfecting, and sanitizing aren’t the only services commercial cleaning companies offer. Whether d i r e c t l y o r i n d i r e c t l y, t h e y a l s o ensure their clients remain stocked with essential supplies. Nantes provides her clients with a checklist of supplies, including the supplies her employees need to clean the dialysis centers. “I send them a list and they provide the supplies,” Nantes says. “I know how many supplies we use a month, so I have a monthly list and they order exactly whatever they need for that month.” Janco has a day porter service that handles the procurement, delivery, and stocking of supplies. “ T h ey [ t h e d a y p o r t e r s ] p rov i d e supplies and make sure everything is Alaska Business
stocked for each building,” Mockbee says. “We just want to make sure the property manager and the building owner trust us to not only deliver that high-quality cleaning but also maintain t h e a s s e t s a n d t h e p ro c u r i n g o f supplies and coordinating the services.”
Cleaning Is Binary
The number of commercial cleaners and janitors is expected to increase by 4 percent annually through 2031. Despite those growing numbers and the increasing demand for commercial cleaning services, there are no industry-wide standards to guide those employees as they dust, mop, and vacuum their way through a commercial space. “ T h e re re a l l y i s n o s t a n d a rd o f cleaning,” Parr says. “I think there should be, but unfortunately the industry doesn’t have a standard.” In other words, “clean” is in the January 2024 | 59
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Janco Commercial Cleaning is a family-owned and operated commercial cleaning company in Anchorage that specializes in cleaning medical facilities and Class A office buildings.
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eye of the beholder. “Whether something is clean or not is very binary,” Kawood says. “Clean businesses are something that you take for granted. It’s not typically something you look for, it’s something you feel.” B u t j u s t b e c a u s e t h e re a re n o industry standards for what constitutes “clean”—or how to achieve it—doesn’t mean commercial cleaning companies just hand their crews a mop and hope everybody ’s idea of cleanliness is aligned. Instead, they provide extensive, ongoing training to employees from the moment of hire. J a n c o o n b o a rd s i t s s t a f f w i t h a standard one-on-one training that includes a checklist that explains how to properly perform each task. “The job description lays out the basics of the tasks that need to be done, and then there’s a mini checklist to cover all the basics,” Mockbee says. “How to empty the trash, how to clean a restroom—not just cleaning, but disinfecting—a list of doors that can be left unlocked, which have to be locked, how to vacuum.”
Dirty Details
The heightened focus on disinfection of non-medical spaces, as opposed to just cleaning a space, became a bigger priority during COVID-19 and is included in the training. “When you just wipe down your desk with a microfiber cloth, that’s cleaning,” Parr says. “Disinfecting is using a commercial grade disinfectant and leaving it on the surface for whatever time it’s recommended for. That’s really the biggest difference: cleaning is just wiping [but] disinfecting is using the chemical to its full potential.” Every commercial space has a different scope of cleaning, so training is tailored to the specifics of each space. Medical or surgical facilities, for example, require more thorough cleaning than a retail or office space. Parr says employees hired to clean t h o s e f a c i l i t i e s re c e i v e a d d i t i o n a l training, including how to properly handle biohazards, blood-borne pathogens, and terminal cleaning, which happens after a patient is discharged from a room. “Medical is very, very different,” she says. “There is terminal cleaning nightly. You have to wear your scrubs, and you 60 | January 2024
clean every single surface, from the ceilings to the floor.” “It ’s not just like a regular office cleaning, with mopping and dusting,” Nantes adds of the procedures for cleaning the dialysis centers. “It’s more detailed. They have to wear gloves because they ’re around blood, and there’s more glove changing depending on where they are in the facility. You h a v e t o u s e a s p e c i a l p ro d u c t t o sanitize the sinks and floor.” Like any industry, the commercial cleaning industry poses hazards, from chemical exposure to the potential for injuries from improper use of cleaning equipment. Employee training includes the safe use of these materials as well. “I try to do everything in a way that won’t cause injury,” Nantes says. “There’s a procedure to lift the trash bag so as not to hurt your back, and they use a cart to push the trash out. We use backpack vacuums that have the hose away from the body so they don’t have to breathe in any dust, and it’s lighter and easier to carry because it has reinforcement to their back and ties around their waist so they don’t use their backs as much.” Trainings are designed to protect the health of not just the cleaners but also the people who come in contact with the commercial space. “There are a lot of ways that cleaning t e c h n i c a l l y c o u l d b e d a n g e ro u s , ” Kawood says. “If we’re leaving chemicals behind or chemical residue, then that’s unsafe. So ongoing training, and just constantly ensuring that our cleaners are conducting themselves safely, is really our top priority.”
Passion for Washing
Janitorial staff became more appreciated during COVID-19, but outsourcing cleaning and janitorial services to professionals—which data shows roughly 25 percent of businesses do—has benefits beyond a clean, sanitized, and disinfected workspace. Nantes says leaving the cleaning to the professionals who have a passion for it—“I love getting there and seeing the floor beat up and transforming it, and everybody comes in and says, ‘Oh, we can eat off the floor!’”— allows office staff to focus on the job they were hired to do. “It’s just peace of mind to them,”
“What people don’t realize in this industry is, we’re not only janitors… Since we’re there daily, we have eyes on the building. There’s more value than just cleaning.” Genesis Parr CEO Janco Commercial Cleaning
Nantes adds. “If they hire an outside company to do the job that they’re not called to do, it frees them to do what they’re called to do. Then they can spend their energy doing what they do best.” Because most commercial cleaners w o r k o u t s i d e o f re g u l a r b u s i n e s s hours (which, Kawood says, is a good reason for businesses to check that the commercial cleaning company performs employee background checks), they act as an extra set of eyes and ears when the office is empty. “What people don’t realize in this industry is, we’re not only janitors,” Parr says. “We’re in your building daily, so we’re looking at, ‘Oh, there’s a leak, gotta report it to the property manager or the owner,’ or, ‘These doors were left open.’ Since we’re there daily, we have eyes on the building. There’s more value than just cleaning.” Mockbee agrees, adding that outsourcing clean-up provides long-term financial benefits that businesses shouldn’t overlook. “It’s not just about cleaning,” she says. “It’s preserving your building, preserving your furnishings, preserving your surfaces, extending the life of the space. It’s definitely a worthwhile investment.”
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Office Outsourcing Third-party providers for business processes By Rachael Kvapil
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hough there are pros and cons in hiring a third-party provider to handle business processes, the sheer number of companies offering their expertise suggests that outsourcing is on trend. Technology, in part, has made outsourcing services like payroll and HR easier and more affordable. Likewise, third-party providers have expanded their services in these two areas, meaning business owners get more bang for their buck. Airswift, an international provider with an office in Anchorage, has assisted employers mainly in technology and engineering sectors with workforce solutions for forty years. It started as a small computer-aided design company in 1979 and grew into a multifaceted consulting, management, and recruitment firm. Through a series of collaborations, mergers, private equity investors, and acquisitions, Air Energi and Swift Worldwide Resources officially merged into Airswift in 2016. Five years later, Airswift merged with its former competitor Competentia. Driven by three corporate hubs in Singapore; Manchester, United K i n g d o m ; a n d H o u s t o n , Te x a s , Airswift is an integrated team of 800 employees, 60 offices, and more than 7 , 0 0 0 c o n t ra c t o r s . T h e c o m p a n y has had an office in Alaska for more than fifteen years. “We have a truly global approach and a reach that is unparalleled,” says Christopher St. John, regional director of Airswift in Alaska. Airswift provides talent acquisitions, g l o b a l e m p l oy m e n t a n d m o b i l i t y, recruitment, and consulting that covers talent mapping, salary and market 62 | January 2024
ra t e b e n c h m a r k i n g , i d e n t i f i c a t i o n and delivery of cost savings, skills assessment, strategic workforce planning, and performance risk management advice. Determining the right mix of services starts with an audit of a potential client’s resources t o i d e n t i f y g a p s i n t h e i r ex i s t i n g business processes, followed by a discussion about best practices and market trends meant to guide future decision making. Airswift then develops a proposal with suggested services and associated costs for the company to review and accept. “Each solution is customized to individual clients depending on their specific needs,” says St. John.
Contingency Management
There are many reasons to outsource HR and payroll to a third-party provider. A company like Airswift provides instant expertise that ensures clients comply with labor and employment laws. Thirdparty providers can also adjust services as needed, which means they can ramp up for seasonal or project-based timeframes and reduce efforts during their clients’ slower periods. These temporary additions to a company ’s core employees are known as a contingent workforce. However, there are also challenges to outsourcing these services. St. John says that communication, strategies, and goals must be aligned between providers and their clients. Companies that embrace a contingent workforce as their own play an important role in developing a culture of belonging and teamwork, yet they might struggle with not having complete control of
contingent workers. Airswift’s job is to ensure companies are fully compliant with federal and state labor laws to mitigate the risk of litigation and protect clients from an array of workforce management issues. Following best practices, like requiring proper documentation for performance issues and accountability, is a priority. “Ongoing and effective communication is a must,” says St. John. “We conduct quarterly business review meetings discussing strategies, workforce analysis, and trends to get buy-in from client management on future services. We conduct weekly faceto-face meetings with hiring managers to discuss performance, current and future needs, upcoming interviews, candidate feedback, and invoicing.” He adds that, much like many internal HR teams, third-party HR providers aren’t always on the same page as their client’s internal operations and have different priorities. Overcoming this difference generally means soliciting more feedback from line managers since third-party providers aren’t always “boots-on-ground” and observing potential needs. “It’s difficult to offer help to struggling employees if we don’t know if there is an issue,” says St. John.
Recruiting Talent
In the face of workforce shortages, relying on third-party providers for business processes may be the answer. According to the January 2023 issue of Alaska Economic Trends by the Alaska Department of Labor and Workforce Development, an older population, lower birth rates, and migration loss in
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Pikka ramping up, the need for qualified talent greatly outweighs the supply within our state. Businesses like Airswift are looking for ways to connect with talent from a variety of sources and communities that have been underutilized in the past.” Christopher St. John Alaska Regional Director Airswift
the state translate to fewer current and future workers. People over the age of 71 make up more than 7 percent of Alaska’s population, up from 1 percent in 1980. At the same time, children below the age of 15, the future of Alaska’s workforce, have dropped from 29 percent in 1980 to 22 percent, with further decrease anticipated. And though the state’s working aged (1670) population still hovers around 70 percent of the total after a series of ebbs and flows, about 20 percent of Alaska’s jobs are filled by nonresidents, with only 10 percent seeking residency. Many of the infrastructure industries served by a company like Airswift are www.akbizmag.com
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with their clients. Strong candidates, according to Airswift, understand the logistical and environmental challenges the state faces when operating in rural communities.
A Growing Global Market
Outsourcing business processes isn’t likely to decline anytime soon. According to a March 2023 report published by Global Industry Analysts, the global market for HR outsourcing is expected to grow 7.2 percent a year from 2022 to 2030. In the United States, the estimated market value of outsourced HR services is estimated around $10.9 billion as of 2022. The global payroll market size was valued around $8.2 million in 2021 and is expected to grow to $12.4 million by 2027. While there are few data available for the number of Alaska companies outsourcing these services, it’s clear that third-party providers will play a role in developing the next generation of workforce in one way or another. Companies like Airswift not only assist their clients with the best business practices but also consult on the best way to find qualified candidates. Sometimes it’s by handling the full recruitment process, sometimes it ’s assisting with messaging, and sometimes it’s by directing clients to take an entirely different approach. St. John says this will most likely be the case with a generation of workers t h a t s i m p l y h a v e n’ t h a d t h e t i m e or training to acquire the skills of an existing employee. “Employers need to focus more on soft skills like having the aptitude to learn new skills, problem-solving, motivation, and communication,” says St. John. “These are keys with n ew h i re s l a c k i n g t h e t ra d i t i o n a l education and experience.” D e s p i t e t h e u p s a n d d ow n s o f the state labor market, St. John believes a long-term solution will eventually emerge. “The future is bright!” says St. John. “We are a growing industry, and as the ‘gig’ mentality continues throughout our younger workforce population, it’s important that companies maintain a pipeline of qualified talent as well as a flexible workforce. This is exactly what companies like Airswift offer to employers and employees alike.” January 2024 | 63
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“With Willow and
feeling the pinch. Oil and gas resumed growing after losing a quarter of its jobs during the pandemic. The report anticipated around 400 new jobs to be added in this industry as preparation for the Pikka and Willow projects on the North Slope are estimated to boost employment. “ The current talent landscape in Alaska is very one-sided,” says St. John. “With Willow and Pikka ramping up, the need for qualified talent greatly outweighs the supply within our state. Businesses like Airswift are looking for ways to connect with talent from a variety of sources and communities that have been underutilized in the past.” Mining is expected to add around 600 new jobs. Construction will potentially contribute another 500 jobs. The transportation, warehousing, and utilities sectors could also result in another 500 jobs combined. If all these industries continue job expansion t h a t exc e e d s t h e i r p re - p a n d e m i c levels, Alaska will need to find a way to increase worker supply. Retirement of elderly people and decreased birth rate aren’t the only reasons for a smaller labor force. People leave their jobs for many reasons, including childcare, care for sick and aging family members, health problems, school/additional training, and burnout. To counter this trend, third-party providers actively promote job o p p o r t u n i t i e s i n A l a s k a . A i r s w i f t ’s website primarily focuses on recruiting for the oil and gas industry while providing international case studies to highlight previous collaborations. The website emphasizes the need for a highly qualified and dedicated workforce and highlights the benefits of living and working within the state. For instance, Airswift promotes the oil and gas industry as the heartbeat of Alaska’s economy, with professionals receiving excellent pay, benefits, and rotational schedules to maintain a good work-life balance. H o w e v e r, t a c k l i n g a w o r k f o r c e shortage is going to be a team effort. Airswift works with companies throughout the state to find quality c a n d i d a t e s t h a t m e e t m o re t h a n 90 percent of their job description qualifications. Airswift ’s definition of “strong candidates” allows it to identify applicants that are a good fit
Alaska Native Tribal Health Consor tium
A L A S K A N AT I V E
Flush with Cash Village sanitation goal closer, thanks to federal infrastructure funds By Terri Marshall
64 | January 2024
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iving without running water and flushable toilets is a reality in many of Alaska’s remote communities, leading to increased health concerns for both children and adults. Fortunately, the Alaska Native Tribal Health Consortium (ANTHC) has received a grant from the Indian Health Service to build up sanitation infrastructure in these communities, and work is underway to kick off these much-needed projects. ANTHC is a nonprofit tribal health organization with an ambitious vision statement: to make Alaska Native people the healthiest in the world. This vision serves as the guiding principle in all that ANTHC does. “ANTHC was formed by an act of Congress through all of the regional tribal health organizations in the state coming together to create the only tribal health organization with a statewide focus,” says Shea Siegert, senior manager of external relations. “There are 229 federally recognized tribes in Alaska, and ANTHC’s board members represent all regions and tribes in the state.” The consortium is the largest, most comprehensive tribal health organization in the United States and Alaska’s second-largest healthcare employer, with more than 3,000 employees. It jointly owns and operates, with Southcentral Foundation, the Alaska Native Medical Center in Anchorage. Outside of cities, its largest project is water and wastewater improvements for rural villages.
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rural Alaska—especially in the passing of the 2021 infrastructure deal,” says Charissa Williar, sanitation facilities program director for ANTHC. Tr i b e s a n d o r g a n i z a t i o n s l i k e ANTHC must go through numerous steps to be awarded the funds. IHS uses the Sanitation Deficiency System: a collaborative process in which communities work with ANTHC, IHS, and other entities to identify sanitation needs, develop and agree upon solutions, and prepare required documentation for the prioritization and funding decision process by IHS. IHS distributed $13 million from congressionally directed spending earlier in 2023 and an additional $11 million from the federal sanitation facilities construction budget, in addition to $416 million of IIJA funding.
Plumbing for Health
$440 Million Package
Tony Knowles had just been elected governor when he pledged to put the honeybucket in a museum. Nearly thirty years later, more than 3,000 households statewide are still using 5-gallon buckets as toilets, emptied into a central sewage collection. Connecting those households to piped water and sewer remains the goal, no matter how much time and money it takes. The latest infusion of money arrived in September, when the US Indian Health Service (IHS) announced that Alaska is receiving more than $440 million to improve sanitation infrastructure. The funding is part of the Infrastructure Investment and Jobs Act (IIJA) of 2021, making $700 million available nationwide annually from 2022 to 2026. “ We are especially grateful to Senator Lisa Murkowski and the rest of the federal delegation for always championing the needs of www.akbizmag.com
Out of more than 200 rural Alaska communities, 32 have no running water in their homes. ANTHC has determined that access to clean water and sanitation systems has a direct connection to the economic, environmental, and physical health of individuals and communities. “It’s proven that having running water in your home helps communities be healthier,” explains Williar. “The research data states that infants in communities without running water in the home are hospitalized with pneumonia eleven times more frequently than those with in-home running water. These infants are also five times more likely to develop lower respiratory tract infections.” Infants aren’t the only ones affected by the lack of running water. “There’s a risk of skin infections and lower respiratory tract infections to all individuals,” adds Williar. “ Without running water, all community members are at higher risk for skin infections including MRSA [Methicilin-resistant Staphylococcus aureus], a staph infection that can get into a skin injury, such as a cut, bite, burn, or scrape, and lead to hospitalization.” In addition to the 32 unserved communities, federal sanitation funds will benefit other communities with i n f ra s t r u c t u re n e e d s . “ W i t h i n t h e 200-plus communities exists a wide range of different sanitation needs,” explains Williar. “While the 32 unserved communities have the biggest deficiency, other communities deal with an aging Alaska Business
infrastructure dating back as far as the ‘70s or even earlier. This is a once-ina-lifetime opportunity to correct these issues, and we’re doing everything we can to take advantage of it.”
“In the 32 unserved communities, we are looking at expanding wastewater lagoons, establishing water supply resources, and building the actual pipes required for each home to establish plumbing.” Charissa Williar Sanitation Facilities Program Director Alaska Native Tribal Health Consortium
Led by Communities
While ANTHC is excited to work with communities in all phases, from planning and construction to training and implementation, each community drives its own project. “Local knowledge and community engagement is a vital component every time we evaluate and begin these significant projects,” explains Siegert. “Our Division of Environmental Health and Engineering is looking at infrastructure projects being installed in communities which experience some of the harshest weather conditions in the country, if not the world. The residents and community leaders have the knowledge and experience to make the right decisions for the communities, and they are engaged in every step of the planning process, from identifying deficiencies to discussing the solutions to selecting the preferred project. We also need to be aware of local priorities, January 2024 | 65
Studies show a correlation between indoor plumbing and significantly lower rates of respiratory and skin infections and decreased hospitalizations for infant pneumonia. Alaska Native Tribal Health Consor tium
including things like the location of culturally significant sites and how the land changes from season to season.” All of these projects are substantial. “In the thirty-two unserved communities, we are looking at expanding wastewater lagoons, establishing water supply resources, and building the actual pipes required for each home to establish plumbing,” explains Williar, adding that two years of design are often necessary after the funding is received from IHS. “After receiving funding from IHS, it takes a few months to set up cooperative agreements with the communities and get those signed and executed. Then projects go into the design and construction queue. They fall behind the Fiscal Year 2022 projects because we also have to meet our commitments to other projects funded in prior years,” says Williar. ANTHC’s vision remains focused on its goal to use this opportunity for improved sanitation infrastructure to ensure every home has running water on a more day-to-day basis. “We’re working hard to do the required planning, earning the approvals from IHS, and—once the funding is there— completing the design and applying for the permits far in advance of the construction season due to our limited window for construction each year,” shares Williar.
Logistical Challenges
ANTHC’s Division of Environmental Health and Engineering connected the east side of Akiachak, where most of the village’s homes are, to water and sewer hookups last summer. Alaska Native Tribal Health Consor tium
Supply chain difficulties add an additional layer to the challenges of sanitation projects slated for these communities. For example, barge season in Western Alaska only runs from May through October, leaving a very narrow window of time to bring in the necessary supplies. “As we prepare to begin hands-on work on the sanitation projects, we consolidate all the required materials in our shipping and receiving yard,” explains Williar. “Some of our communities only have one scheduled barge per year, and we strive to make that schedule.” Despite the obstacles, Williar has confidence in the ANTHC logistics team. “We’ve been doing this for a long time and our logistics team is well-versed in what is required, which includes getting everything lined up ahead of time, ordering the parts, consolidating the parts upon receipt, and making arrangements to transport everything to the communities.” While ANTHC initially anticipated a time frame of three to five years for this batch of projects, the true timeline is uncertain. “It is yet to be seen exactly how the resource constraints will draw those timelines out even further,” explains Williar. “Suppliers and vendors are already experiencing supply chain disruptions and delays, and there are only so many barges to the communities each year to be able to deliver the required materials to the project sites.”
Capacity to Maintain
The starting phase of each sanitation project also entails training and employing local teams. “At ANTHC we have over 200 employees working in the Division of Environmental Health and Engineering,” says Williar. “In the early stages of the projects, our engineers and project management teams work with the communities to identify deficiencies and obtain the funding.” Those team members continue to be involved with the projects from start to finish. Once the planning is completed and the funding is in place, the design is completed by ANTHC engineers or by consulting 66 | January 2024
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firms contracted by ANTHC. Once the construction drawings and specifications are completed, projects are either advertised for construction bids or planned for in-house construction by ANTHC. For in-house construction, ANTHC’s construction managers and licensed trade workers—including superintendents, electricians, heavy equipment operators, and plumbers— are added to the project teams to work with community crew members to complete the projects. “Our construction managers and licensed trade workers work with local crew members and build local capacity throughout the project,” says Williar. “By hiring local community members to work on the building of the sanitation projects, they are receiving training about the ins and outs of the project. This provides them the capacity, understanding, and training needed to maintain and operate the infrastructure once the project is complete and ANTHC has demobilized from the community.” Including local workers in the projects provides additional benefits for ANTHC and each community. “We will often end up hiring people onto our permanent staff, which provides home-grown workforce development while providing these individuals with secure jobs, extensive training, and the opportunity to travel to other villages to work on additional projects,” Williar adds. As for when the last honeybucket will become a museum piece, that remains unknown. “There are only so many engineers, superintendents, licensed tradespeople, and equipment operators, and only so many construction contractors that work in these remote communities. We’ll be learning as we go as to the anticipated timeline,” says Williar. While the completion of sanitation projects for communities in need entails a complicated time-consuming process coupled with considerable hard work for everyone involved, Williar believes it is worth it. She says, “Our goal is to keep working hard. I’ve been working in this for over twenty years, and it’s exciting to be in a place where this level of infrastructure improvement is a reality. It’s challenging but worth the hard work to witness these improvements becoming a reality for the communities who need them most.”
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January 2024 | 67
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E D U C AT I O N
Flying Less Than Solo UAF ACUASI piloting a drone economy By Vanessa Orr
U
nmanned aircraft, often known as drones, have tremendous potential: scientific research, search and rescue, cargo delivery, and other applications. This technology can be used to save lives—especially in the 49th state, where general aviation accident rates are more than twice the national average. Fortunately, the Alaska Center for Unmanned Aircraft System Integration (ACUASI) is one of the top drone research programs in the country. L o c a t e d a t U A F, t h e p r o g r a m i s developing and testing drones for use in Alaska and across the United States. “If you can make the technology work here, you can make it work anywhere,” says Catherine F. Cahill, director of ACUASI within the UAF Geophysical Institute. “Alaska is a tough environment in which to fly; there aren’t good communications, the flying distances are long, and the weather is extreme. When it comes to testing drones, we are the final exam.”
Off the Ground
ACUASI is also one of the older groups in the nation working with unmanned aircraft, having started its airspace research in 2001. Initiated by a range 68 | January 2024
manager at the Poker Flat Research Range, the university’s rocket launch site northeast of Fairbanks, the program took a giant leap in 2012 when UAF applied to become one of six Federal Aviation Administration (FAA) Unmanned Aircraft System (UAS) test sites in the country. Partnering with Oregon and Hawaii on a joint proposal and partially funded by the state, ACUASI began conducting public aircraft operations. “The FAA was looking for geographic and climatic diversity, and Alaska rose to the top on that one, especially partnered with Oregon and Hawaii,” explains Cahill. “We had all of the climate zones they could need. We also have airspace suitable for doing some of this prototype aeronautical research with minimal ground hazards.” The ACUASI team and its partners, m o s t o f w h o m a re A l a s k a n , t h e n competed for the FAA's Integration Pilot Program (IPP), which was designed to get small unmanned aircraft systems into commercial use quickly. When the IPP ended, the FAA created BEYOND to address the challenges identified during IPP and asked the Alaska team to continue its work under BEYOND. BEYOND is designed to help overcome the challenges associated with flying
beyond pilots’ visual line of sight. The UAF team also participates in ASSURE, which stands for the Alliance for System Safety of UAS through Research Excellence, which is led out of Mississippi State University and includes eighteen core schools focusing on aviation safety research, including how to integrate drones into airport operations. On February 6, 2023, ACUASI received permission from the FAA to act as civil operator for the purpose of testing and evaluating aircraft, which will expand its mission even further. “That’s a huge change from everything done before,” says Cahill. “Before we had to follow public aircraft operator rules, which meant that we could only do prototype aeronautical research. Once an aircraft is pretty well established, the goal is to put hours on it in order to get to the point that it can be type-certified by the FAA and allowed to fly freely in the national airspace system.” Putting hours on an established aircraft, though, is not what the FAA considers research, so test sites weren’t a b l e t o h e l p c o m p a n i e s g e t f ro m prototype to type-certified. ACUASI is an exception. Cahill says, “Now that we are able to fly as civil operators, we can help them with that.”
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The Holy Grail of Safety
There are many reasons why drone research is so important to Alaska. In addition to the potential for cargo deliveries to remote communities in conditions where pilots can’t fly under visual flight rules, drones can also be used in cases where flying is simply too dangerous for a human pilot. “Alaska has one of the highest aviation populations in the country, even though we only have 1 percent of all of the aviators in the country,” says Cahill. “Unfortunately, we also have a huge number of accidents, accounting for about 40 percent of all fatalities. Aviation safety is a key issue, and there are a lot of missions where we lose pilots and biologists and others that could have been done with a drone far more safely.” S h e b e l i ev e s re m o t e - p i l o t e d o r autonomous aircraft could take the place of missions that put pilots and passengers at risk. “If you send out a Twin Otter over the Bering Sea to count ice seals and it goes down, you lose people,” Cahill says. “If you send out a drone and it goes down, all you lose is money. I know which one I’d rather lose.”
ACUASI has successfully proven that drones work in numerous instances and has used them for tasks including 3D mapping of glaciers and the first complete 3D image of the InuvikTuktoyaktuk Highway in Canada. Drones have been used for wildfire surveillance and carried ground penetrating radar to look at ice roads. They have also been used for numerous wildlife studies, including identifying ringed seals, Steller sea lions, various types of whales, and sea otters in Kachemak Bay. The program has also demonstrated how drones can help with search and rescue and other law enforcement activities. “We do a lot of aviation research with drones; for example, we have partnered with commercial entities on improving communications systems for longdistance operations in Alaska airspace w h e re t h ey d o n’ t h a v e c e l l p h o n e coverage and 5G,” says Cahill. “We are also working on determining what infrastructure is needed to support this technology and make it integrate seamlessly with current aviation in Alaska. Because we are flying with g e n e ra l a v i a t i o n a n d c o m m e rc i a l
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SeaHunter preparing to fly off of the same runway as the C130 in Inuvik, Canada. Alaska Center for UAS Integration
aviation, we want to make sure that it is safe and seamless.” One such project includes working with partners on Detect and Avoid technology so that, if the drone operator ever loses communication with an aircraft, the aircraft is still capable of spotting other air traffic and can autonomously maneuver to avoid it. “This is the Holy Grail of safety as far as the FAA is concerned,” says Cahill. “If we lose our communication link with the aircraft, it will still never hit another aircraft.” ACUASI’s drone and airspace research has included drones of all sizes, up to aircraft with wingspans bigger than those of Boeing 747s. Its fleet includes a 299-pound SeaHunter and a Sentry with a max takeoff weight of 425 pounds, which are used as proof of principle as they move toward testing larger aircraft.
Commercial Applications
ACUASI works with commercial entities as well as state, national, and international governments to help bring proven concepts to market. One of the projects ACUASI pioneered was using drones with thermal infrared and visible cameras to look at flare stacks on the North Slope to determine when parts needed to be replaced. “By using drones, oil companies can order and get the parts onsite before turning off the flare field for repairs. This saves millions of dollars compared to having to shut the field down, do the inspection, wait for the part, do the change, and then turn it on,” says Cahill, adding that this proven technology is now being used by commercial entities on the North Slope. ACUASI has also worked with Transport Canada to look for North Atlantic right whales in the St. Lawrence seaway to protect the endangered mammal, of which there are less than 400 left in the world. ACUASI and a partner developed a payload that flies on SeaHunter, a twin-engine aircraft that has approximately 12.5 hours endurance, enabling it to fly out of Michel-Pouliot Airport in Gaspé, Quebec, Canada, “mow the lawn” over the St. Lawrence Seaway, and take 70 | January 2024
high-resolution photos with an artificial intelligence (AI) equipped camera system. “AI then scans the photos looking for whales, and if it finds one, it sends back the longitude/latitude and a picture of the whale,” explains Cahill. “This allows Transport Canada and the Department of Fisheries and Oceans Canada to slow traffic in the St. Lawrence Seaway to keep the whale from being hit.”
Beyond Line of Sight
ACUASI is currently working with the FAA to develop technology, rules, regulations, policies, and procedures to expand these types of operations. To this end, this past summer it partnered with aviation technology company Merlin to send twenty-five flights between five different Alaska communities and Fairbanks using an autonomous Cessna Grand Caravan to show how these flights could be successfully performed. “Until you can fly beyond the visual line of sight of your pilot, you’re limited to short-range missions. In Alaska, we want to do long-distance cargo and look at the entire Trans Alaska Pipeline [System] in a single flight. We want to do animal counts and salmon measurements,” says Cahill. Enabling longrange flights opens a new field for other possibilities. “We’re playing the long game,” she adds. “A lot of companies have gone out of business trying to do this, but we’ve taken the limited amount of funding we’ve had in the past and made every penny squeak. We want to stay in the game to make sure that the rules and regulations that are developed work in the Alaska airspace.” Cahill notes that ACUASI is working with partners across the country to make unmanned flights a reality, including Massachusetts Institute of Technology graduates, Silicon Valley start-ups, and other universities and government agencies. “We’re pushing the boundaries here, and a lot of leading companies have figured that out and have reached out to us,” she says. “We’re partnering with a lot of big names, and that’s exciting. We’re seeing a lot more people coming in, and almost all from word-of-mouth.”
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With a laugh, Cahill observes that she’s running a military flight wing as a business at the university, which she says is the best and worst of both worlds. “The key thing is that we’ve got a group of seasoned professionals here who could be anywhere in the world, but they are here because they believe in this mission and they love Alaska,” she says.
Drone Economy
As its research continues to move forward, ACUASI is working to set up a drone economy that includes everything from workforce development to student outreach to explain how drones can be used in different careers. “As the technology becomes more integrated, we will need people in our communities who can turn around an unmanned aircraft. Loading and unloading right now is done by pilots,” says Cahill. “ We’ll need people to maintain the aircraft as well; these are not toys and need to be maintained just like regular aircraft.” She adds that each University of Alaska campus is focusing on their own strengths when it comes to working with drones. Southeast is focusing on using drones in environmental sciences, and Anchorage is working on integrating drones into its flight simulator. UAF is creating programs that include mechanical components in its Community & Technical College and just approved an aerospace engineering degree that will also deliver courses remotely to Anchorage. “ T h e re ’s re a l l y a p u s h t o m a k e sure that we have a workforce ready for this,” says Cahill. “Kids in our community can learn to use drones, not just for flying, but for biology studies, oceanography, and art and cinematography, among other uses.” As she sees it, the UAS field gives Alaska a high-tech industry, encouraging the best and brightest to keep their talents in the state. “ We have our hands in a lot of different realms, but our main focus is on Alaska and trying to establish our drone program as one of the top programs in the country,” Cahill a d d s . “ We’re d o i n g o u r d a r n d e s t to make that happen because it ’s an extremely important way to diversify our economy.” www.akbizmag.com
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January 2024 | 71
THE FOCUSED MANAGER
Aspirational Experiments A framework for shooting to the stars By Brian Walch
J
unior Achievement of Alaska is a nonprofit that helps young people expand their horizons and realize their potential. Its programs can spark imagination and ignite young people’s passion for business and entrepreneurship. When I was 11 years old, I participated in Junior Achievement. In our cohort, someone took the idea of “igniting our passion” a little too literally. At the start of the project, our mentors gave us several concepts to select from. There was a car emergency kit, custom greeting cards, and embossed matchbooks. What do you think a bunch of kids selected? Matchbooks, of course! The team was fully committed despite the distraction of market testing our product (e.g., playing with fire). We reviewed options, debated choices, created plans, sold our product, and critiqued our work. The experience of trying something new and figuring things out was transformative. Thinking that I could create a business at a young age was empowering. I remember that feeling well. Today, it drives me to keep trying new things.
Change Is Hard
With the pace of change in the world today, innovation is critical to success. Organizations that create a culture of innovation can improve employee engagement, increase productivity, improve resiliency, and reduce costs. Change is hard, though, and there are barriers to innovation. Organizations have a lot to lose 72 | January 2024
when trying something new. Internal disruptions can threaten profits and m a r k e t s h a re , i n c re a s e t u r n ov e r, and create confusion. Leaders are hesitant to make changes because of the risks involved. The status quo carries a lot of momentum. Managers have many ideas for change but usually aren’t empowered to implement them. Without support from leadership or the potential for significant rewards, managers will focus on maximizing value with established tools and processes. If change is to be successful, it requires commitment from everyone involved. If not fully invested in the i d e a , e m p l oy e e s w i l l s u c c u m b t o operational demands and stick to what’s tried and true. Leaders must provide a consistent and compelling vision for change t o b e re l ev a n t . To b e s u c c e s s f u l , they must also think about how to implement their vision.
Go Big or Go Home?
In 1961, President John F. Kennedy announced the United States would put a man on the moon and safely return him to Earth. This seemed like an impossible goal at the time, but it helped unite and inspire the United States. Today, companies use the idea of a moonshot to promote change and drive innovation. These big, ambitious ideas seem impossible but, if accomplished, change the organization's trajectory. The rewards make moonshots attractive, but undertaking one can also negatively impact an organization. For
example, the world-changing vision will inspire people, but it may overlook the team’s strengths and cause you to miss an obvious opportunity. Moonshots take organizational commitment, qualified people, and dedicated resources, which are costly. The moonshot initiative must be balanced with day-to-day operations, or you risk disrupting the entire business. Deciding who will be part of the moonshot, who won’t, and how they feel about it takes time. Despite all of that, the rewards are compelling. You want to inspire and motivate people to change, and it is tempting to think a big initiative is the right vehicle. In reality, most moonshots fail, people become reluctant to try again, and innovation stagnates.
Big Ideas. Small Experiments.
Scientists approach change differently than traditional business leaders. They are constantly trying new things by running experiments. Experiments aren’t a success or failure; instead, they are an opportunity to learn. The process is more important than the outcome. A scientist conducts an experiment, captures what was learned, makes adjustments, and then runs another experiment. As their findings b e c o m e c o n c l u s i v e , t h ey l o o k t o apply them practically. Yo u c a n u s e t h i s a p p ro a c h f o r yourself or your organization. Have big visions and ideas, then conduct small experiments to pursue them. I call this Aspirational Experimentation.
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Managers have many ideas for change but usually aren’t empowered to implement them. Without support from leadership or the potential for significant rewards, managers will focus on maximizing value with established tools and processes. E x p e r i m e n t s p ro m o t e c u r i o s i t y and learning, which will overcome the resistance to change. Small experiments reduce risk, which makes experimentation accessible to more employees and distributes t h e re s p o n s i b i l i t y f o r i n n ov a t i o n . This is how you build a culture of growth and engagement.
A Framework for Aspirational Experiments
To do this effectively, you want a tool that encourages employees t o ex p e r i m e n t , p rov i d e s v i s i b i l i t y for managers, and supports capturing lessons learned. Here’s one you can use. I call it the STARSHOT Framework. If a moonshot is a big initiative that comes from the top, a starshot is a small initiative available to anyone. (I know, I know… technically, stars are bigger than the moon and much farther away. But from where I’m standing, the moon is enormous, and there is only one. Stars are everywhere, look smaller, and feel more accessible.) This framework can be turned into a checklist or worksheet that any employee can use to design and run an experiment. It provides structure and promotes planning while empowering the individual to own the process and www.akbizmag.com
engage others for support as needed. If you like it, consider building it into your processes. For example, ask employees about possible experiments during check-ins, create a quarterly meeting for employees to submit starshot ideas, or give employees a certain amount of time each month to work on a personal experiment a n d h a v e t h e m s h a re w h a t t h ey learned with the team.
STARSHOT Components
Here are the eight components of the STARSHOT Framework. • Scope: At a high level, describe what you’re going to do. • Timeline: What is the maximum amount of time you’ll run this experiment? It may end earlier, but set an upper limit. • Ambition: Why is this important to you? How will it help others? What is the potential impact? • Requirements: What do you need to run the experiment? Who should be included on the team? How much time will be required from you and others? What technical, physical, and financial resources do you need? • Setup: Consider all the details of your experiment. What goals are you hoping to achieve? What data will you collect? Who are the stakeholders? Who else will be impacted, interested, or inspired? How will you communicate with them? • Hypothesis: What is your idea? What is the specific experiment you’re doing to test it? It could be an A/B test, prototype, testing a concept, creating a mock-up, thought experiment, running a pilot, or something else. What results do you expect? Identify your parameters and any constraints or limitations. • Operation: Conduct the experiment, track progress, and collect data. Day-to-day operations can cause experiment activities to take a back seat, so create checkpoints to stay on track. • Takeaways: What were the results, and how did they compare to what was expected? What did you learn that can be applied going forward? What was the impact? Who needs to know about the results? Using this framework, you can conduct Alaska Business
aspirational experiments in a structured manner. Use it when planning your experiment to think through all aspects and decide if it is something you want to do. If so, use this framework to present the idea to others, create your plan, and execute it.
Count On Unexpected Results
When you start conducting your own experiments, you’ll quickly see that the process is more important than the results. I learned this years ago as the product owner of an internal business system. The application had done wonders for our business, and I wanted to take it to market. I developed the concept and marketing material, did sales calls, a n d b ra i n s t o r m e d i d e a s f o r n ew product components and features. Sales were anemic, though, and the experiment was a failure. Or so I thought. Then I started noticing subtle changes within our company. Developers had hated working on the tool. But after the experiment, they started talking about it as a product and took more pride in their work. Similarly, users constantly complained about bugs and usability issues. After the experiment, they became more positive and proactive and engaged in collaborative discussions about new features. The results of aspirational experiments might not be what you expect, but that doesn’t mean they aren’t there. When I was 12, Junior Achievement showed me I could create a business. The project created possibilities and stirred emotions. Although we didn’t make money, we created a team and learned new skills. I was inspired. I even got matches to play with! B r i a n Wa l c h i s a n e xe c u t i v e c o a c h , c o n s u l t a n t , and speaker on leadership development. He uses his extensive experience in people and systems to provide tools and services to empower managers to lead themselves, their teams, and their organizations. Learn more at shiftfocus.com. January 2024 | 73
INSIDE ALASKA BUSINESS Alaska International Business Center
49th State Brewing Company
World Trade Center Anchorage has promoted overseas commerce for, effectively, the entire state, so the nonprofit is leaning into that larger identity with a new name. President and CEO Greg Wolf announced a rebranding in November, becoming the Alaska International Business Center, styled akIBC. Wolf says the name “is a better representation of our statewide membership and operations.”
With its new airport concession, 49th State Brewing – Ted Stevens brings Alaska-made beers, ciders, and sodas to the Air Crossroads of the World. At 7,372 square feet, the leasehold is the largest in the Ted Stevens Anchorage International Airport main terminal. The post-security restaurant on the C-Concourse shares a wall with a beer garden outside the secure zone; between them, a one-way chute passes through a small slot. The spaces used to be a Cinnabon and a branch of Humpy’s Great Alaskan Alehouse, a bar and grill in Downtown Anchorage. 49thstatebrewing.com
Alaska Gear Company To describe the full range of outdoor living and recreation products it makes, Airframes Alaska changed its name to Alaska Gear Company. Airframes Alaska started as a licensed maker of Super Cub fuselages at Birchwood Airport. The company acquired the Reeve Air Motive parts dealer at Merrill Field, and other acquisitions brought Alaska Tent & Tarp and Northern Sled Works under the same roof. “Our new brand gives us a chance to build an even bigger Alaskan manufacturing company,” says CEO and majority owner Sean McLaughlin. airframesalaska.com
Blaze Fast-Fire'd Pizza Wasilla is securing its position as the beachhead for national franchises entering the Alaska market. The latest arrival is Blaze Fast-Fire’d Pizza, which opened its first restaurant in the state in November near The Home Depot store. The pizzeria is next door to Firehouse Subs, owned by the same franchise partners, Greg Persinger and Catharine Persinger. (They gave Fairbanks the honor of welcoming Alaska’s first Firehouse Subs in 2018.) Greg says he first experienced the chain while on the road competing as a member of the US Men’s world championship curling team. locations.blazepizza. com/ak/wasilla/1080east-steam-commons-ave 74 | January 2024
NorthLink Aviation Construction is formally underway at a facility to expand the already prodigious cargo capacity at Ted Stevens Anchorage International Airport. NorthLink Aviation broke ground October 11 on the 120-acre site where new warehouse space will let shippers unload packages and clear customs in Anchorage instead of heading to international hubs at Los Angeles or Chicago. The air cargo terminal is slated to be complete by the end of 2025. northlinkaviation.com
Grant Aviation Within days of Ravn Alaska announcing it would cease operations at Kenai Municipal Airport due to a nationwide pilot shortage, rival carrier Grant Aviation stepped up. Grant Aviation added fifty additional flights per week between Anchorage and Kenai, a 30 percent increase over its previous service. The 35-minute route is used by commuters looking to avoid the Seward Highway, including Kenai Peninsula oil and gas workers. flygrant.com
Santos The refurbished high-rise at 601 West Fifth Avenue in downtown Anchorage is getting a major tenant. Australian
oil company Santos is moving its Alaska headquarters there. The company had been using two of the fourteen floors of the former Sohio and BP building in Midtown. Thanks to the company’s Pikka project on the North Slope, Santos expects to employ about 400 people in Alaska by the end of the year, filling seven of the nine floors at the Downtown building. Santos CEO and Managing Director Kevin Gallagher says the company signed a long-term lease, and he expects adding another oil company headquarters to Downtown will help revitalize the neighborhood. santos.com/north-america
Sun’aq Tribe | Native Village of Afognak The wholesale store in Kodiak, Cost Savers, is under tribal ownership. Kodiak’s Sun’aq Tribe and the Native Village of Afognak purchased the business as a joint venture in October. Afognak (a separate entity from the Afognak village corporation) is the majority partner with a 55 percent ownership stake. Tribal administrator Candace Branson told radio station KMXT that the village initially wanted to buy an empty lot near the store to expand farm programs (it has six on the island), and owning the store made sense. sunaq.org | afognak.org
Kodiak Area Native Association Shoppers are flocking to a new indoor mall about 1 mile north of downtown Kodiak ahead of its scheduled grand opening in May. Kodiak Marketplace was built on the site of a former department store. Kodiak Area Native Association, which mainly operates a tribal healthcare system, invested in the property in 2014 and demolished the old building in 2021. The two-story mall covers 63,000 square feet, with room for a small grocery store, a bakery, a restaurant, a book shop, a post office, and a gift shop for Alutiiq Museum while it renovates its own building. kodiakhealthcare.org
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ANCHORAGE FAIRBANKS
RIGHT MOVES Akiak Holdings
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The tribal corporation for the Kuskokwim River village of Akiak created the new position of Chief Growth and Strategy Officer Crovo and appointed Patrick Crovo to the role. Working alongside Akiak Holdings CEO Kevin Hamer, Crovo facilitates collaboration with government to drive the company’s growth in digital enterprise services. Crovo was most recently president of a professional services firm and IT firm which was successfully acquired by private equity in 2020. He was responsible for operations management, strategic planning, and company growth. He holds a bachelor’s degree in information systems from University of Maryland, Baltimore and an MBA certificate in information technology from University of Maryland, University College (now University of Maryland Global Campus).
Papé Kenworth
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A veteran of oil field support services, Kelly Droop is the new Regional Manager in Alaska for heavy equipment supplier Droop Papé Kenworth. With extensive leadership background in off-road trucking, field operations, and capital planning, Droop most recently served as COO for Colville, managing its six business lines in Alaska. Prior to that, Droop was an executive at Worley, overseeing oil field construction, fabrication, operations, and maintenance. Droop has served on industry-focused
nonprofit boards and is a past president of the Alaska Support Industry Alliance.
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Crowley
Crowley appointed Kollin Fencil as Senior Vice President and General Manager to lead its Crowley Fuels business unit. In this Fencil position, Fencil oversees one of Alaska’s largest petroleum wholesale providers, serving 280 mostly rural communities through a network of sixteen terminals and a fleet of river and coastal marine vessels. Fencil joins Crowley after serving as senior vice president, operations of global energy company Santos in Alaska. He previously served in management roles at BP and other energy companies after beginning his career as an engineer. Fencil earned a bachelor’s degree in mechanical engineering from Michigan State University. He also served as a US Peace Corps volunteer, assisting healthcare education and teaching high school science in Tanzania.
NORTECH Nortech—an environmental, energy, health, and safety services firm with offices in Anchorage, Fairbanks, and Juneau—added new hires to its team. Janine Way recently joined the firm as an Environmental Professional. She holds a bachelor’s degree in mechanical engineering Way from UAF and previously worked at the Alaska Department of Natural Resources. Way has expertise in hazardous waste management, the
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Resource Conservation and Recovery Act, as well as mechanical and nuclear engineering. Way is also a member of the Society of Women Engineers and the American Society of Mechanical Engineers. Jacob Ferrill comes aboard as an Environmental Staff Technician, applying his experience in monitoring environmental conditions, Ferrill collecting samples, and managing data related to water quality, air pollution, and hazardous waste for various Nortech projects throughout Alaska. Ferrill holds a bachelor’s degree in biology from UAS. He has notable experience in chemistry labs and biochemistry labs. In his free time, Ferrill enjoys hiking, fishing, reading, and rock climbing, as well spending time with his cat, Hamentashen (called “Homie” for short).
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UMIAQ Design
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UMIAQ Design, part of the commercial services division of Ukpeaġvik Iñupiat Corporation, promoted Jessica Cederberg to the Cederberg position of Architecture Manager. Cederberg is a licensed architect in Alaska and Washington, certified by the National Council of Architectural Registration Boards. She earned a bachelor’s degree in architecture from the University of Oregon, with minors in interior architecture and art history. Since joining UMIAQ Design in 2019, Cederberg’s projects have included industrial facilities in Utqiaġvik, Anaktuvuk Pass, and Cordova, along with work in Anchorage, Nuiqsut,
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and Point Lay. Cederberg was also elected president of the Alaska chapter of the American Institute of Architects.
R&M Consultants
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R&M Consultants, Inc. promoted Chris Black to the position of Group Manager of Site Development, where he had been working as senior Black project engineer. As group manager, Black is responsible for planning, design, and construction administration at worksites. Born in Juneau, Black has a bachelor’s degree in civil engineering from UAA. He is a professional civil engineer licensed in Alaska and a certified erosion and sediment control lead. Black has thirty years of construction and civil engineering experience. He first joined R&M as a project engineer in January 2015. Some of Black’s recent projects include the King Salmon Snow Removal Equipment Building, Alaska Psychiatric Institute Parking Lot Rehabilitation, and Chugach Electric Association Campbell Lake Substation.
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PGS
Anchorage-based business consulting firm Professional Growth Systems (PGS) brings Chris Dykes to the team as a Consultant. Dykes Dykes adds to the company’s planning and leadership services by applying skills he acquired in the US military. During his nine years in the US Army, Dykes served in leadership positions with Special Operations. Dykes received his bachelor’s degree in criminology from The College of New Jersey. His strong focus on development and growth is what attracted Dykes to PGS. “I found that the most rewarding experiences do not come from promotion, advancement, or awards.
They come from cultivating genuine relationships, building effective teams, and striving for improvement every day. Improvement, not perfection,” he says.
KPMG KPMG US, one of Alaska’s largest accounting firms and the only Big Four professional services firm with an office in Alaska, promoted two managing directors for its Anchorage office. As the new Audit Managing Director, Melissa Beedle is responsible for spearheading audit quality and leading engagement Beedle teams in project execution. Beedle joined KPMG in 2005. Beedle is a graduate of Western Washington University and resides in Juneau. As the new Tax Managing Director, Nick Whitmore leads federal and state tax consulting and compliance services. Whitmore joined Whitmore KPMG in 2011, specializing in Alaska Native corporations, settlement trusts, net operating losses, and financial statement accounting. He is a graduate of UAA.
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Providence Alaska Foundation
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The fundraising arm of Providence Alaska promoted regional director of operations Cynthia Libby as its President and Chief Philanthropy Libby Officer. In this new role, Libby leads Providence Alaska Foundation’s operations to support philanthropic efforts in the community. She is the successor to Suzanne Carte-Cocroft, who announced in August that she is moving to the Lower 48. Libby has been with Providence
Alaska for nearly ten years, credited with helping to raise tens of millions of dollars, including philanthropic investments for the construction of Alaska CARES, a facility that supports children who are victims of abuse. Libby earned a bachelor’s degree in business administration with a concentration in accounting from Walla Walla University, and her MBA with a concentration in finance is from Washington State University.
Alaska Native Justice Center The Alaska Native Justice Center (ANJC), a nonprofit affiliate of Cook Inlet Tribal Council, now has eight attorneys among its total staff of thirty, thanks to two new hires. Maude Blair is the new Tribal Justice Manager. In that role, Blair coordinates ANJC’s Tribal Justice Support program, including statewide tribal justice initiatives. Before joining ANJC, Blair served as the senior corporate counsel for Southcentral Foundation and worked for the Alaska Federation of Natives and NANA Development Corporation. She is also on the board of the Alaska Native Heritage Center. An Iñupiat from Kiana and Kotzebue, Blair earned her undergraduate degrees from UAF and her JD and Indian Law Certificate from Arizona State University. Samantha Cherot joins ANJC as Managing Attorney. In that role, Cherot collaborates with ANJC’s COO Alex Cleghorn to strategize and develop service delivery processes. Cherot brings a wealth of experience in public defense and legal administration. In her previous position as the Public Defender for the State of Alaska, Cherot supervised thirteen offices throughout the state. Born and raised in Anchorage, Cherot earned a bachelor’s degree in political science from Santa Clara University and her JD from California Western School of Law.
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Alaska Business
January 2024 | 77
ALASKA TRENDS
P
ositive work experiences stem from both employers and employees having their specific needs met. While honest communication and compromise can help an employer and employee who started at odds to find common, productive ground, it’s a huge boon for all parties to know the priorities of the other party from early in the hiring process. But even before interviews are scheduled, employees and employers can find information on general workplace trends that can inform their expectations on topics ranging from management styles to workplace culture to information on how employers look for employees and how employees choose where to work, hopefully leading to better outcomes for all. Specifically in Alaska, the Anchorage Economic Development Corporation, in cooperation with placement firm PeopleAK, aided this task with a pair of documents: the Employer Survey Report 2023 and the Millennial Workforce Report. The Employer Survey Report gathered insights from local businesses, while the Millennial Workforce Report gauged the attitudes and opinions of Alaskan Millennials; as a group, Millennials form one-third of the US labor force and are currently the largest working generation in the nation. The reports contain findings such as employers hiring third-party recruiters half as often as they post jobs on personal and professional networks, and 38 percent actively recruit military veterans while 53 percent cannot hire ex-felons. The Millennial survey, answered by 20- and 30-year-olds, found wages and benefits are slightly less important than good management, when it comes to choosing a job. This edition of Alaska Trends illustrates more findings from both reports, noting where the expectations of Anchorage’s largest demographic cohort align (or not) with what employers are willing to offer. Source: Employer Sur vey Repor t 2023 Sponsored B y: PeopleAK Source: AEDC Millennial Work force Repor t
24%
Labor Needs
of Alaska Millennials surveyed were actively
32% Moderate Difficulty
Businesses were asked, "In the past year, has
looking for employment.
~50%
finding and
of Alaska Millennials actively
hiring new
looking for employment
staff been
54% Significant Difficulty
a challenge?" 8% Minor Difficulty
were considering jobs outside of Anchorage.
6% No Difficulty
Culture Businesses were
8% Yes, but we stopped
84%
asked, "Has your organization recruited for hybrid or fully remote workers?"
of Alaska Millennials reported that
42% No, and do not intend to start
a casual work enviroment was very or somewhat important.
39%
43% Yes, and continue to do so
claimed schedule flexibility as the 7% No, but we are considering it
78 | January 2024
most important culture factor.
Alaska Business www.akbizmag.com
Shared Priorities
Employers rated their top priorities for applicants from 0/Irrelevant to 4/Essential; their highest-rated priorities align with the top desires of Millennial job seekers.
98% of Alaska Millennials reported wanting to have an interest
Top Priorities of Alaska Businesses
in the field, and they find professional development
Engaged and Wants the Job
opportunities to be important.
On Time and Presentable
98%
General Interpersonal Skills Positive Work History
reported good management was very or somewhat important.
Specific Work History
Defining Good Management
Résumé General Office Skills
29% said realistic manager
Work Samples
expectations and 25%
Formal Education
expectations were the
said clear manager most important factor
Specific Office Skills
of good management.
Letter of Recommendation GPA/Test Scores 0 / Irrelevant
1
0 / Irrelevant
2
3
4 / Essential
4 / Essential
Recruitment Strategies
74%
Wages were considered the most important factor by Alaska Millennials. Education reimbursement was also a dominant factor across age, gender, and educational attainment.
of Alaska Millennials reported education reimbursement was somewhat important or very important.
Benefits Offered by Alaska Businesses Childcare Incentive for Being Active In-office Perks
~60%
Desirable Location
reported opportunities for travel
Upward Mobility
were somewhat or very important.
Schedule Flexibility Professional Development Excellent Company Culture 0% of Employers 0%
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25% 25%
50% 50%
75% 75%
Alaska Business
100% 100%
January 2024 | 79
What book is currently on your nightstand? Limitless: Upgrade Your Brain, Learn Anything Faster, and Unlock Your Exceptional Life by James Kwik. What charity or cause are you passionate about? Girl Scouts of Alaska… Supporting youth is really dear to my heart, so I spend a lot of time and effort and resources supporting youth organizations. What’s the first thing you do when you get home after a long day at work? Usually my children [age 8 and 4] are home, so the first thing I do is get hugs. What vacation spot is on your bucket list? Maldives.
Photos by Monica Whit t
If you could domesticate a wild animal, what animal would it be? A fish species… Something small that can be contained in a small environment.
80 | January 2024
Alaska Business www.akbizmag.com
OFF THE CUFF
Maria Bourne P
etropavlovsk-Kamchatsky in the
AB: Is there a skill you’re currently developing or have always wanted to learn? Bourne: Playing piano… My sister played piano beautifully, but I never learned.
Russian Far East is a lot like Alaska. “It’s
a very similar lifestyle in terms of water, mountains, fishing, and outdoor activities,”
AB: What’s the most daring thing you’ve ever done? Bourne: South America comes to mind. We did a backpacking trip through Bolivia… This was twenty years ago, so not a lot of infrastructure.
says Maria Bourne of her hometown. Bourne crossed the International Date Line to attend college in Alaska, where her sister
AB: What are you superstitious about? Bourne: I grew up in a culture where superstition is part of the culture, a superstition for everything… One of the biggest superstitions is about dreams and which dream has truth to it.
had lived for a time. Her studies in accounting led to her becoming the chief financial officer at Denali Universal Services, an independent company owned by French conglomerate Sodexo (formerly a joint venture with Doyon, Limited and still located in the Alaska Native regional corporation’s South Anchorage building). “We’re multiple businesses under one roof,” says Bourne of her company’s security branch (including emergency medical services and firefighting) and facilities branch (housekeeping, camp catering, and sundry support tasks). nearly sixty sites statewide: “When I go to the field, it’s one of the best days at work.” After overseeing operations during the statewide economic recession, Bourne was promoted to president and CEO three years ago. “I enjoy leadership. I enjoy people,” she says, although she admits to keeping a closer eye on the finance department, given her background.
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AB: Dead or alive, who would you like to see perform live in concert? Bourne: We go out of the way to go to concerts every single year… Next on my list would be U2. AB: What’s your greatest extravagance? Bourne: Vacations. We’ve spent a lot of money on vacations… We go on as many as we can fit in the schedule.
She loves to see her team doing their jobs at
Alaska Business: What do you do in your free time? Maria Bourne: My free time goes toward the family. Young family, lots of demands for time. That’s really the best part of my day… I love the outdoors: hiking in summertime, skiing in winter.
AB: What’s your favorite local restaurant? Bourne: Depends on the mood. I love sushi, so my favorite sushi spot is I Luv Sushi on Lake Otis and Abbott.
AB: What’s your best attribute and worst attribute? Bourne: Probably resilience and endurance. I tend to remain calm in a time of chaos and think through things critically and calmly… The worst attribute is probably perfectionism. I’ve been working on that for quite some time.
Alaska Business
January 2024 | 81
ADVERTISERS INDEX Airport Equipment Rentals. ................... 83 airpor tequipmentrentals .com Alaska Dreams Inc................................. 57 alaskadreamsinc .com Altman, Rogers & Co.............................. 71 al trogco.com Anchorage Convention Centers............. 33 anchorageconventioncenter s .com ASTAC - Arctic Slope Telephone Association. .......................................... 53 as tac . ne t Avis Rent-A-Car. .................................... 51 a v isalaska.com Bering Straits Native Corporation. ......................................... 45 berings trai t s .com
Davis Constructors & Engineers Inc.. ...................................... 53 da v iscons tr uc tor s .com Doyon, Limited...................................... 67 doyon.com First National Bank Alaska. ...................... 5 f nbalaska.com
Oxford Assaying & Refining Inc. ............ 75 ox fordme tals .com Parker, Smith & Feek.............................. 27 ps f inc .com Saltchuk................................................ 25 sal tchuk .com
Global Credit Union............................... 37 alaskausa.org
Samson Tug & Barge............................. 13 samsontug.com
Great Originals Inc. ............................... 35 grea toriginals .com
Satellite Alaska. ..................................... 39
Groeneveld-BEKA Lubrication Systems. ............................................... 49 groene veld - beka.com JEFFCO Inc............................................. 71 je f fcogrounds .com
Sheet Metal Inc.. ................................... 55 shee tme talinc .com Span Alaska Transportation LLC. ........... 19 spanalaska.com State of Alaska Department of
Chugach Alaska Corporation. ................ 31 chugach.com
Junior Achievement. .............................. 69 ja - alaska.org
Health................................................... 17 medicaidrenewals.alaska.gov
Conrad-Houston Insurance Agency.................................................. 55 chialaska.com
Lynden.................................................. 84 l y nden.com
Stellar Designs Inc................................. 13 s tellar- designs .com
Construction Machinery Industrial. ......... 2 cmiak .com
Material Flow & Conveyor Systems, Inc.. ........................................ 41 ma terial f lo w.com
The Odom Corporation. ........................ 21 odomcorp.com
Cook Inlet Tug & Barge Inc. ................... 67 cook inle t tug.com
MT Housing Inc.. ................................... 47 mthousing. ne t
Craig Taylor Equipment. ........................ 61 craig ta y lorequipment .com
NANA Regional Corporation. ................. 23 nana.com
T. Rowe Price........................................... 9 alaska529 plan.com
Credit Union 1....................................... 15 cu1.org
Northern Air Cargo. .........................76,77 nac .aero
United Way of Anchorage........................ 3 li veuni tedanc .org
TOTE Maritime Alaska LLC. ...................... 7 totemari time.com
+ Careers Looking for Employees (or a job)? Reach a wider audience through a network of sites with a single job listing.
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Thank You Alaska! Thank you to our friends, neighbors, and valued customers for your ongoing support and partnership, and special thanks to each of our dedicated employees for their continued care, expertise, and ingenuity as we all work together to keep Alaska moving. We look forward to continuing to serve our communities by providing multi-modal transportation and logistics solutions across the entire state!