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CONTENTS OCTOBER 2023 | VOLUME 39 | NUMBER 10 | AKBIZMAG.COM
10 BUSINESS OWNERSHIP
116 ECONOMIC DEVELOPMENT
7 things to consider
An economic development district propels local business activity
JAG Alaska Inc.
FE AT UR E S Building Up the Kenai Peninsula
Selling Your Business By Bob Kaufman
By Vanessa Orr
28 SMALL BUSINESS
Businesses Selling to Key Employees Keeping succession close at hand By Tracy Barbour
34 FINANCE
Business Plan Competitions
A roundup of entrepreneurship events
By Scott Rhode
42 OIL & GAS
The Only Alaskan-Owned Producer HEX/Furie keeps the lights on for local oil and gas
20 BUSINESS OWNERSHIP Family Legacy
Parents pass down generationally held businesses By Sarah Reynolds Westin
St. Isidore Farm
By Terri Marshall
110 MANUFACTURING
130 ARCHITECTURE
Making flavors from local resources
Holistic approaches to healthy buildings
Tasting Alaska
WELL and RELi Design Standards
By Scott Rhode
By Rachael Kvapil
122 PROFESSIONAL SERVICES
136 HEALTHCARE
Conducting post-incident investigations
Breast cancer screening goes mobile
Is Your System Set Up to Fail?
Mammography on Wheels
By Daniel P. Hoffman
By Vanessa Orr
124 CONSTRUCTION
144 FISHERIES
Construction project managers organize the chaos
Founder's vision transformed the fishing industry
Scope, Schedule, and Budget By Terri Marshall
Fifty Years of Trident Seafoods By Dimitra Lavrakas
Correction: On pg. 44 of the September 2023 issue, we misspelled the name in the photo credit. The correct spelling is Bering Straits Native Corporation.
QUICK READS 150 BALANCED BOUNDARIES 154 SAFETY CORNER 4 | October 2023
158 INSIDE ALASKA BUSINESS 160 RIGHT MOVES
162 ALASKA TRENDS 164 OFF THE CUFF
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CONTENTS OCTOBER 2023 | VOLUME 39 | NUMBER 10 | AKBIZMAG.COM
SPECIAL SEC TION: TOP 49ER S 46 THE 2023 TOP 49ERS At the top of their game
92 EVERYONE GOES HOME, EVERY DAY Advice for safety By Katie Pesznecker
80 VALUE BEYOND PROFITABILITY
How Top 49ers measure success
84 OUTGROWING ‘ALASKA’
ARG Industrial stretches toward the ranks of Top 49ers By Amy Newman
88 KEYS TO CUSTOMER SERVICE Advice for keeping clients happy By Alexandra Kay
Golden Valley Elec tric A ssociation
98 SUPERIOR COMPANIES REQUIRE SUPERIOR WORKERS Advice for attracting, nurturing, and retaining a dream team By Rindi White
102 COGS IN THE MACHINERY
Advice for equipment and technology By Sarah Reynolds Westin
106 2¢ WORTH
Financial advice for businesses By Tracy Barbour TOP 4
ABOUT THE COVER Every tabletop game requires a ruleset, an end goal, and players. The Top 49ers are major players at the “successful Alaska business” table, having set their sights on positive outcomes and refusing to step away while there’s still work to be done. On this cover, Andrea Gusty (center), president and CEO of The Kuskokwim Corporation, which represents ten Alaska villages along the Kuskokwim River; Geoff Lundfelt (right), president and CEO of Global Credit Union, which now serves more than 750,000 members; and Chris Devine (left), president and CEO of Craig Taylor Equipment, which recently acquired Peterbilt of Alaska, are representatives of the many world-class executives who meticulously plan for the future—and occasionally roll the dice—leading their companies to even bigger and brighter futures.
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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. © 2023 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.
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FROM THE EDITOR It’s our Top 49ers issue! Any readers who breeze past this letter to jump right into the ranks are excused—it’s an exciting list packed full of exceptional companies that do a lot to build Alaska’s economy and community. In fact, this issue would be impossible to compile without their participation. The Top 49ers voluntarily provide the information we publish within these pages; even in those cases where we could research revenue information without their cooperation, we don’t. The Top 49er ranks are a partnership between Alaska’s homegrown businesses and this homegrown publisher, and I’m incredibly grateful year after year for their involvement in this project. For our 2023 October issue, the Top 49ers have provided more rich content than ever, contributing to every article in the special section. While all the Top 49ers are incredible partners, this year three stand out: Global Credit Union, The Kuskokwim Corporation, and Craig Taylor Equipment. Their top executives—Geoff Lundfelt, Andrea Gusty, and Chris Devine, respectively— were generous enough to participate in the photoshoot for our cover with the scant description of “a tabletop game theme with other top executives.” As awesome as the cover photo is, it is just one among several fantastic photo options because Lundfelt, Gusty, and Devine exemplified what a Top 49er is: they show up, they have an awesome attitude, they collaborate and cooperate, and they get the job done. The other major contributor to our cover is represented through her work: Alaskan artist Tara Cox, the talent driving Mythic Alaska, was another essential top executive in our cover creation process. Art Director Monica Sterchi-Lowman and I anticipated that she might respond to our request for a handful of Alaska-themed, business-influenced, mythical characters with hesitation. We were wrong; we barely finished describing what we were envisioning when it became clear Cox was all in, and her enthusiasm for the project shines in her character design. For the last several years, our vision for the Top 49ers combines our magazine with our annual luncheon, and Cox’s exceptional art is the finishing polish on this year’s theme of tabletop gaming, tying everything together. Which brings us to this year’s theme: when pared down to their essential common elements, tabletop games present a challenge, a set of rules, and an opportunity to succeed. Some are solo ventures, some call for cooperation, and some encourage competition. But whatever the details, it’s up to the players to determine and pursue a winning strategy. It’s a clear metaphor for how Top 49ers and other local entrepreneurs and business owners pursue success in their individual industries. Although our theme changes from year to year, the Top 49ers issue is always a cooperative endeavor. Each of our publications requires many talented hands, but especially this month I’m happy to reflect on how this magazine is truly Alaskan made.
VOLUME 39, #10 EDITORIAL Managing Editor Tasha Anderson 907-257-2907 tanderson@akbizmag.com
Editor/Staff Writer Scott Rhode srhode@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
CONTACT
Press releases: press@akbizmag.com
Tasha Anderson Managing Editor, Alaska Business
Postmaster: Send address changes to Alaska Business 501 W. Northern Lights Blvd. #100 Anchorage, AK 99503 AKBusinessMonth alaska-business-monthly AKBusinessMonth akbizmag
8 | October 2023
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BUSINESS OWNERSHIP
Selling Your Business 7 things to consider By Bob Kaufman
A
once-in-generation shift in business ownership. T h a t ’s w h a t I b e l i ev e m a y be coming soon for Alaska’s economy. America’s Baby Boom generation is hitting the traditional age for retirement, and here in Alaska, almost half of all businesses are owned by Boomers. Therein lies a huge opportunity for entrepreneurs looking to take the reins. I’m one of those Boomers. I arrived in Alaska in 1990, four years after an oil crash that shook Alaska’s economy to its core and made it seem like the state couldn’t escape its boom-and-bust history. However, over the last thirty-plus 10 | October 2023
years, I’ve seen the Alaska economy grow and diversify into what feels like a much more stable business environment. As an entrepreneur in tourism, I’ve r i d d e n t h i s w a v e o f s t e a d y g row t h alongside other local entrepreneurs who found success in diverse sectors such as oil, telecom, retail, and construction. Many of my peers now find themselves thinking about their next chapter in life. I, on the other hand, am intrigued by the potential for new ventures in this climate of change. How will this coming era play out? What percentage of business owners plan to exit in the next few years, and why? What do they
seek in a buyer, and what challenges do they expect to face? How many expect to struggle to find buyers, and how many will just wind the business down? To get some answers, I surveyed more than 100 Alaska business owners. Their candid responses offer valuable insights into the potential rewards and pitfalls of selling a business in Alaska. This article, based on the survey results and my own experience as an Alaskan entrepreneur, is a roadmap for Alaska business owners who are either contemplating a potential sale or seeking to better position their business for a sale.
Alaska Business www.akbizmag.com
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1: Know—and Communicate— Why You Want to Sell
When asked what the main considerations were for selling their business, here’s what survey respondents said: • 62 percent: Retirement or focus on other interests or hobbies. • 11 percent: Raising capital for other investments or pursuing different business opportunities. • 11 percent: Taking advantage of www.akbizmag.com
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Whatever a business owner’s timeline or motivation for selling, transparency about the business makes it easier for all parties to find common ground and work toward a satisfactory outcome. Yuri Arcurs | Envato
Alaska Business Owner Survey Topline Findings • 27 percent plan to exit within five years, and 44 percent within ten years. • 27 percent never plan to exit. • Many business owners who plan to sell still expect to continue working. • 90 percent believe they know what their company is worth. • Alaska business owners report facing nearly identical challenges, in identical proportions, to business owners in the Lower 48.
12 | October 2023
market conditions. • 9 percent: Relocating to another area. • 7 percent: Exiting a difficult market or industry. The top response reinforces the idea that a shift is coming. But understanding one’s motivation for selling is key. When I moved to Alaska, determined to find a business to buy, an experienced investor told me, “Always remember: The seller chooses the time to sell.” Indeed, one of the most important things a buyer will discover in their due diligence is the real reason you’re selling—something that’s very hard to hide from a buyer with any sophistication. Answering this question honestly is the key to building trust with potential buyers, which means being honest with yourself about your motivation. For example, sellers will often say they want to pursue other opportunities when they may actually see limited opportunity within their existing business. That’s not necessarily a deal-breaker. Sometimes, a new owner with a fresh perspective and approach can unlock new opportunities. But hiding your real agenda can raise red flags with buyers. A trustworthy explanation helps align expectations between you and potential buyers. Understanding the full context of your decision can help buyers better clarify how acquiring your business fits into their strategic plans. In negotiations,
transparency makes it easier to find common ground and work toward a win/ win outcome. A n o t h e r m a n t ra I l e a r n e d i n m y consulting days: “The facts are friendly.” If your reason for selling is that you feel bored or burned out, say so—just be prepared for buyers to confirm that “boredom” is not the sign of a dying business. I f y o u a re s e l l i n g b e c a u s e y o u r b u s i n e s s i s u n p ro f i t a b l e , c o n s i d e r targeting buyers within your industry who may have the expertise to turn the business around or bring other synergies. If health reasons are forcing you out, try to plan ahead so buyers can’t “wait you out.” Whatever your reasons, smart buyers will want to verify them. Transitioning a business is an emotionally exhausting process for both buyers and sellers. The more you share, the more likely it is that the right buyer will commit to get the deal done.
2: Plan Your Next Chapter and Time the Sale Accordingly
Once you clarify why you want to sell your business, give deep, specific thought to what comes next. Doing this before you sell serves two important purposes. Preserves Happiness: Many people I know feel adrift and unhappy after selling their business. They underestimate the
Alaska Business www.akbizmag.com
importance of their work relationships, the sense of accomplishment work provides, and—especially for founder/ owners—the role their business played in giving them a sense of recognition and identity within the community. Planning for new commitments and challenges before you sell helps you avoid the doldrums. Quells Uncertainty: It’s hard for an owner to seriously engage in business succession planning when they haven’t d o n e s o i n t h e i r ow n l i f e . S ev e ra l business consultants have told me the number one obstacle they encounter is business owners self-sabotaging the succession process because they don’t know what they want to do next. Finding something compelling and meaningful is key to avoid unwittingly falling into this trap yourself. Define what brings you true fulfillment and happiness beyond financial success. Reflect on your personal values, passions, and the legacy you want to leave. The more concrete the answers are in your mind, the more motivated you’ll be to make the plunge. Then do it! There will always be risks in selling, like not realizing the return you hoped for. But there is also risk in hanging on too long, like not fully embracing the most important values and relationships in your life. Here’s when survey respondents said they expect to be able to sell: • 31 percent: When they find a buyer or successor who meets their requirements. • 18 percent: When the company is worth enough to make selling attractive. • 17 percent: They don’t plan to ever transition ownership. • 16 percent: When they’re financially secure enough to retire, including any sale proceeds. • 15 percent: When they can no longer work for health reasons. These responses shed light on the risks above. Finding the perfect buyer or achieving the desired value may never materialize. And of course, the unpredictability of life—including health issues—can disrupt plans. Evaluate the timing of your sale in the context of what truly matters to you at your particular stage of life. The odds of successfully selling your business go way up if you have a realistic and flexible mindset about www.akbizmag.com
the timing and conditions of selling.
3: Prioritize What You’re Looking for in a Buyer
What do owners expect to be the biggest obstacle in selling their business? The number one answer, garnering 20 percent of responses: “Difficulty finding a buyer who shares the same values or vision for the business.” This is no surprise. As a business owner myself, I understand the work and sacrifice it takes to build a company. It’s only natural for owners to seek a buyer
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who appreciates and values the thought and care that has shaped the business. The popularity of the answer also reflects that many small business owners recognize how integral their employees have been and are deeply invested in their continued well-being. The sense of gratitude toward customers is also a vital consideration for sellers. Businesses thrive because of the trust and loyalty customers place in them. I, for one, feel indebted to customers who were willing to take a chance on us and who have offered feedback to help shape
October 2023 | 13
There will always be risks in selling, like not realizing the return you hoped for. But there is also risk in hanging on too long, like not fully embracing the most important values and relationships in your life.
our products. Finding a buyer who shares a business’s values and understands the importance of maintaining the trust and loyalty of the customer base is paramount. Here’s the thing, though: while most buyers will say they care about these factors, not all actually do. See the sidebar “The Right Way to Interview a Prospective Buyer ” for tips on how you can evaluate the veracity of their commitment to these values.
4: Be Realistic about Valuation
Selling a business is obviously also a financial transaction. Sellers ow e it to themselves (and often their beneficiaries) to get the best return they possibly can. But there can be obstacles. As stated above, shared values was the number one hurdle cited by survey respondents when contemplating a potential sale, and here were the next three: • 16 percent: Difficulty finding a buyer who is willing to pay my asking price. • 14 percent: I have an emotional attachment to the business, or I
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don’t know what I would do next. • 11 percent: A sale would not generate enough to provide me what I need financially. All are valid concerns. But potential buyers view valuation through a different lens. They take into account return on investment, industry trends, and growth potential. That difference can lead to a major disconnect between buyer and seller. In fact, a full 90 percent of the survey respondents believe they know what their business is worth—and even reported a suggested value. However, when I compared those valuations to standard industry metrics, most appear to be significantly overvalued. Why? A common pitfall for owners is assuming their personal attachment to their business translates into a higher monetary value. Emotional investment and years of hard work can sometimes cloud judgment around asking price. An independent valuation conducted by a reputable third-party professional can be extremely helpful in determining an appropriate asking price. Not only can this exercise provide a reality check for
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owners, but it can also offer a credible reference point in negotiations with potential buyers. The goal of a valuation is not just to assign a dollar value to the business but also to identify key drivers of value and areas of risk that could affect a buyer’s decision. If you know what drives your business’ value, you can work to enhance those areas before offering your business for sale. Similarly, if you know the areas of risk, you can work to mitigate them. And keep in mind, setting an excessively high initial asking price— with the expectation of lowering it if there’s no interest—could cause buyers to see you as an unrealistic seller and steer clear. And when it comes time to negotiate, sellers should approach the discussions with an open mind and a willingness to consider market realities while still advocating for the value they’ve built.
5: Know How Much Money You Need
Many survey respondents expressed concern that a sale wouldn’t generate enough to provide what they need
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The Right Way to Interview a Prospective Buyer In any interview with a prospective buyer, your goal is to ask questions that elicit authentic responses and go deeper than stock answers. Start here.
The Questions & Why
QUESTION 1: How would you describe your leadership style and approach to managing a business? Why: This question helps gauge if their leadership philosophy aligns with your own and if they prioritize factors important to you, such as employee well-being, collaboration, or innovation. QUESTION 2: Can you provide examples of how you have successfully maintained or enhanced the culture and values of companies you have acquired in the past? Why: By asking for specific examples, you can assess their track record in preserving the culture and values of acquired businesses, indicating their ability to honor your business’s legacy. QUESTION 3: How do you plan to ensure a smooth transition for employees during the ownership transfer? Why: The response can indicate their level of consideration for employee well-being and their approach to maintaining stability and continuity within the workforce. QUESTION 4: How do you approach decision-making in relation to major changes or investments in a business? Why: This question helps assess their decision-making style and if it aligns with your approach, especially regarding key business aspects that are important to you, such as sustainability, community involvement, or ethical practices. Question 5: How do you plan to support the growth and development of the business and its employees in the long term? Why: This question assesses their commitment to the future success of the business and their investment in the professional growth and well-being of employees.
Evaluating
When evaluating a buyer’s responses, consider the following factors: Consistency: Inconsistencies or vague responses may indicate a lack of genuine alignment with your values. Depth of understanding: Assess their understanding of your business, its unique characteristics, and the industry landscape. A buyer who demonstrates a deep understanding shows a greater potential for maintaining your vision. Cultural fit: Evaluate how well their values align with the existing culture and values of your business. Assess if they appreciate the importance of preserving your business’ legacy and its positive impact on employees. Transparency and honesty: Look for genuine interest and sincerity in their commitment to your business’ values. Trust your instincts and intuition: Observing body language, tone of voice, and overall demeanor can provide additional insights into a buyer’s authenticity and alignment with your values. Engaging in multiple conversations and interactions can help validate their responses and build a deeper understanding of their compatibility with your vision for the business.
16 | October 2023
financially. Yet many business owners don’t really know what that number is. This is where a financial advisor can help. Most financial advisors have access to forecasting tools that assess how much money you’ll need in retirement, based on your current spending, planned retirement lifestyle, and how long you ideally want to work. The tools simulate thousands of scenarios to estimate the probability of meeting those goals at different spending levels, retirement ages, life spans, and market return environments. Most financial planners aim for a 70 percent to 80 percent success rate in such a simulation. If the proceeds of selling your business at fair market value put you in that probability range, you’re in good shape. If the percentage falls short, consider working a few more years rather than attempting to artificially inflate the asking price for your business. Each additional year is an opportunity to contribute to savings, put off drawing down those savings, and realize investment income from your existing nest egg.
6: Explore a Range of Buyer Types
We asked business owners, “When it comes time to sell your business, which of the following potential buyers would you consider or pursue?” Their answers: 45 percent: Unrelated third-party b u y e r. T h i s g ro u p c o u l d i n c l u d e a business looking to expand, a private equity firm, or an individual entrepreneur. It often provides the highest monetary return, but the transition can sometimes be challenging for your current employees and company culture. 37 percent: Current management team or key employees. This scenario often comes through an Employee Stock Ownership Plan. It ’s a great way to reward those who have been instrumental to the business’s success and ensure a smooth transition, since the buyers already understand the business well. However, it may be hard for the existing team to raise the necessary capital and often results in a slower payout for the seller. 34 percent: Children or other family members. This option can be a wonderful way to ensure that the business legacy continues. But family dynamics can complicate business
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Who Advises Business Owners?
Alaska vs. the Lower 48 Who will or has provided the most helpful conversations related to selling your business?
decisions, and family members may lack the skills or interest to run the business successfully.
7: Bring in Professional Guidance
One of the survey’s most interesting findings came from asking about who a seller will or has sought out for advice. The responses are especially compelling when compared with answers to the same question in the 2022 Business Enterprise Institute survey of Lower 48 businesses, as seen in the table “Who Advises Business Owners? Alaska vs. the Lower 48.” There’s clearly a stark geographic difference when it comes to a seller’s chosen advisors. Alaska business owners lean much more heavily on friends and significant others than on accountants or lawyers compared to those in the Lower 48. Why? Perhaps our smaller, tight-knit community fosters a greater reliance on friends, spouses, and business owner peers. It could also be that the surveyed businesses in Alaska are smaller than their Outside peers. Regardless, each cohort above can play an important role in the sale process. Business Owner Friends: Previous buyers and sellers can share lessons learned about negotiation strategies, deal structure, and pitfalls. They can also offer guidance on exit planning, such as strategies to maximize the business’ value before the sale. Those who operate in the same or a related industry can be especially helpful. Spouse/Significant Other: Spouses witness firsthand the sacrifices and challenges business owners face. They also intimately understand the owner’s personal goals and future aspirations and can help decide if a particular offer aligns with them. A spouse can also be a pillar of emotional support during the 18 | October 2023
Business owner friend(s) Spouse/significant other CPA or accountant Business lawyer Business consultant/coach Child/children Estate planning lawyer Financial planner Banker
often stressful and emotional process of letting go. CPA/Accountant: Most buyers will request financial statements going back at least three years, and a proficient CPA or accountant can ensure these d o c u m e n t s a re a c c u ra t e , c u r re n t , and adhere to accepted accounting standards. Don’t skip this step: detailed, t ra n s p a re n t , a n d w e l l - d o c u m e n t e d records create a strong first impression and can convey that a business is wellrun and trustworthy. CPAs can also help interpret financial metrics, identify potential areas of concern, and advise on the tax implications of a sale—including any capital gains taxes—providing a more accurate picture of the potential returns. Business Lawyer: A knowledgeable legal advisor, especially one with plenty of deal-making experience, can draft k ey d o c u m e n t s l i k e n o n - d i s c l o s u re agreements as well as sale and purchase agreements. They can also review term sheets and negotiate contract provisions that may make a significant difference in the final result. A good lawyer will know what’s standard and what’s negotiable— and how to protect your interests during the sale process. Business Coach/Advisor: A good consultant or coach can help you assess how saleable your business currently is and take steps to enhance its value to prospective buyers. Unless you plan to sell to another owner/operator, owner dependency and key-person risk is a concern for most buyers. You can take steps to ameliorate that by building a capable and committed management team that can drive business operations a n d g row t h . A n d d o n’ t f o rg e t t h a t documenting and streamlining operations can also ease the transition for a buyer. Banker: A business with valuable, unencumbered assets is more attractive
Alaska Survey 44% 43% 28% 19% 16% 9% 8% 8% 7%
Lower 48 12% 28% 12% 8% 3% 5% 13% 7% 4%
to most buyers. Assets like equipment and real estate can help a buyer secure bank financing on favorable terms, allowing them to structure a more attractive offer and give you more liquidity up front. If you have a relationship with a bank, explore how their bankers can help you facilitate a quicker and smoother sale process.
The Path Forward
I sometimes look back with nostalgia at the early days of my business. Everything was on the line—my personal savings, my pride, my reputation. I worked hard, and the business has thrived. Of course, over the years, as any business grows and establishes value, there can be a natural tendency to become more risk-averse, to protect what we have built. Yet it’s possible to hold on too long. I have seen Alaska business owners who, settled into their comfort zones, ended up stifling their top employees or otherwise hindered future growth. Don’t let that be you. When the time comes to move on, I hope the ideas I’ve shared will help you navigate the exit process with confidence. Selling at the right time and in the right way can honor the relationships you’ve nurtured and leave behind a positive legacy. It can also create an opening in your life for new possibilities, personal growth, and deeper meaning. Bob Kaufman is founder of Alaska Channel, Alaska’s market leader in travel media and outof-home advertising. He is also an active investor, with extensive experience in business buyouts and growth companies. Reach out at bob@alaska.org if you want to learn more about this topic.
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Alaskan Fudge Co.
BUSINESS OWNERSHIP
Family Legacy Parents pass down generationally held businesses By Sarah Reynolds Westin 20 | October 2023
R
oots—whether in the form of f a m i l i e s o r e n t e r p r i s e s — a re a firm foundation. When the owners of Alaska businesses embark on their endeavors, they can scarcely predict where those roots will branch out. When a business passes into the hands of the next generation, the new owners note that their ability to own a business would have been limited without the equipment, knowledge, and customers that their parents established. Generationally held businesses build a strong reputation in, and give back to, their communities.
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No matter which market they serve, generational businesses create legacies for their families, their communities, and the economy.
St. Isidore Farm
With a chuckle, Sarah Jansen says she “famously hated farm work” as a child. Nevertheless, she and her husband, Aaron, will soon become the owners of St. Isidore Farm, settled on 300 acres in North Pole, with 60 acres now in production. Sarah’s parents, Warren and Barbara Smith, purchased the property in the mid-‘80s and began by farming about 10 acres. Since then, the family h a s b e e n c o m m i t t e d t o p ro d u c i n g seeds that are native to Alaska and expanding the crop from growing only grasses to including flowers. Today, Sarah and Aaron work alongside Warren and Barbara to learn everything they c a n a b o u t S t . I s i d o re ’s o p e ra t i o n s and productions. “Out of all my siblings, you would not have picked me to carry the farm on.” Sarah’s emphasis on “me” stresses her point. After graduating from high school, she went to college and became
a teacher. Recently, Sarah and Aaron decided to come back to the farm. What prompted them to shift careers? They wondered what would happen to St. Isidore when Sarah’s parents retired. In the ‘60s, Warren and Barbara met after enrolling at UAF. “My dad grew up on a farm in northern Wyoming a n d w a n t e d t o f a r m a g a i n , ” S a ra h says, recounting his history as a fifthgeneration farmer for a cow, sheep, corn, and sugar beet operation. He understood the basics, like running and fixing the machinery and staying apprised about fertilizers. To start, Warren had to find land that had access to abundant, clean water. Many places near Fairbanks struggle with quality, depth, or pump-related water issues. “Quite a few possibilities were eliminated, but finally my dad found a place within 20 to 30 minutes f ro m o u r c a b i n . ” E a r l y o n , Wa r re n , Barbara, and their children commuted t o t h e M o o s e C re e k a re a t o w o r k . Together, they prepared their fields. “After someone bulldozed the trees,” says Sarah, “I remember picking up all the sticks, getting everything dialed in,
“When you’re working with family, you find yourself asking, ‘What are my parents leaving behind, and how are we going to carry on their legacy and build on their effort?’” Sarah Jansen, St. Isidore Farm
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Named for the Catholic patron saint of farmers, St. Isidore Farm in North Pole bills itself as a “3rd Generation Family-Owned Business,” operated with an eye toward preserving productive land for the founders’ grandchildren to inherit. St. Isidore Farm
and even climbing on these huge burn piles. It was a big learning curve for us all.” Eventually, the family moved to live on the farm. Warren planned to farm on the side while continuing to operate his other business, Summit Logistics—which his son-in-law and other daughter, Mike and Christina Repasky, now own. Warren still hoped his farming efforts would yield a profit. He knew that he needed to choose crops that thrive in Alaska and had a local market. Warren chose grasses, which proved to be both an asset and a challenge for St. Isidore in its beginning. Since no one else was producing the three varieties of native grasses that Warren chose, he had to create their market by educating people about the plants’ value, usefulness, and noninvasive qualities. “With family-owned farms, the beauty of the land and the joy of working it matters,” Sarah says, “but you need 22 | October 2023
buyers or the farms will fail.” Almost immediately, Warren and Barbara realized they had something that would be stable. “Within five years, my parents were able to sell all the varieties that were growing that had not been commercially available.” Sarah and her family want St. Isidore to continue being successful, but even more they want the land to be viable for the next generation so that it remains how her father found it. This desire requires that Sarah and Aaron look ahead for what their land, crops, and business could achieve in the future. “When you’re working with family, you f i n d y o u r s e l f a s k i n g , ‘ W h a t a re m y parents leaving behind, and how are we going to carry on their legacy and build on their effort?’” Sarah believes family-owned businesses can adapt quicker to unexpected circumstances. “Because we have full control of the farm, Dad and I just have to decide how to respond,” she
says, noting these conversations often occur over lunch. “A r e w e i m p a c t e d b y m a r k e t fluctuations?” she asks. “Yes, like the price of fertilizer, recessions, and even weather. But having a small, family-owned operation lets us have more flexibility in making necessary adjustments.”
Fireweed Cleaners
I n 1 9 6 8 , G e ra l d a n d H e l e n E a r p opened a dry-cleaning and laundry operation in Anchorage that came to be known as Fireweed Cleaners. The couple had left Illinois about ten years p r i o r, ex p e c t i n g e n t re p re n e u r s h i p opportunities in Alaska—and their instincts proved accurate. Although the couple divorced, Helen maintained ownership of the business. As she made retirement plans in the early ‘90s, Helen asked her son and daughterin-law, Randy and Julie Earp, if they would like to own it. Randy, who had tired of
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sitting behind a desk, knew that he could oversee the production and maintenance while Julie could run the office, keep the books, and oversee the counter. The couple agreed. With Randy and Julie running Fireweed Cleaners, their children grew up involved with their business. However, the Earps never imagined one of them would take up their work. When their son-in-law and daughter, JT and Katie Hampton, expressed interest, Randy and Julie were delighted. “As a kid, I had absolutely no desire to take over the cleaners,” Katie says with a laugh, “but then I fell in love with JT in college, who was studying business and entrepreneurship.” She trails off, letting JT pick up. “Well, things changed,” he says. “Moving back to Alaska and getting involved with the business became our unspoken plan.” Since 2010, JT and Katie have run Fireweed Cleaners. They have a main www.akbizmag.com
Alaska Business
October 2023 | 23
Katie Hampton’s grandparents started Fireweed Cleaners, but it was her husband JT’s interest in business that steered them both toward owning the company. Fireweed Cleaners
JT Hampton Co-owner Fireweed Cleaners
24 | October 2023
explains, “When Katie and I first joined them, we all had shellshock. Randy and Julie had built a business that was running well and sustaining. Then I come in and immediately start changing things, which rocked the boat sometimes.”
Fireweed Cleaners
“We may not be— and may never become—the biggest laundry operation in Anchorage, but our customers can count on us to always put them first. Sometimes, keeping it small lets you have a bigger impact.”
location that houses all operations on Fireweed Lane and a drop-off and pickup location on Abbott Road. When Randy and Julie retire, they will hand ownership to JT and Katie, who are positioned to succeed in carrying on their business' reputation—and have already done so. For a dry-cleaning and laundry operation, customer service and quality handling of garments are paramount, and remaining family-owned provides Fireweed Cleaners’ customers a sense of familiarity. “A lot of people don’t think about it, but dry cleaners are more personal than many other service providers,” JT notes. Customers trust them with their most valuable and sentimental textile objects, be it a suit and gown for a wedding, a handcrafted quilt sewn by a relative, or special linens for entertaining guests. “My dad ingrained in JT and me that we must take care of our customers,” says Katie. “No questions asked.” The Earps and Hamptons are a tightknit family; however, their closeness has not prevented the complications that often come with navigating changes. JT
Less than two months after JT and Katie started, Randy and Julie were forced to take a leave-of-absence for a quarter of a year, due to a motorcycle accident. “When mom and dad came back and saw we hadn’t burned the place down and even improved some areas,” Katie says, “they had proof we were succeeding and would keep doing so.” The trial by not-fire turned out to be a blessing in disguise for the family—and
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the business. “We passed an unintended test, which made it even easier for Randy and Julie to hand everything over to us,” states JT. As Fireweed Cleaners has grown under JT and Katie’s supervision, they have added a wash-and-fold service as well as free pick-up and delivery in Anchorage— and they continue evaluating other expansions. How will they decide which new ventures to tackle? According to JT, the highest weighted variable for his wife and him is continuing to provide excellent customer service. “We may not be—and may never become—the biggest laundry operation in Anchorage, but our customers can count on us to always put them first” he says. “Sometimes, keeping it small lets you have a bigger impact.”
“We’ve continued to follow my parents’ lead. We make our products in front of our customers, and we’ve got no plans to change that… Many customers and former employees are surprised our business has remained open and stayed in the family all these years.” Scott Bergmann, Co-Owner, Alaskan Fudge Co.
Alaskan Fudge Co.
In Juneau, Alaskan Fudge Co. has had a presence since 1980, when Blue and Deb Bergmann began the business. They had moved from Michigan to Fairbanks so that Blue could work on the Trans Alaska Pipeline System during the oil boom. After that job wrapped up, the couple wanted to stay in Alaska, but in a location with less harsh winters. They settled on Juneau, where Deb’s uncle also lived, to raise their family. Trying to figure out their next steps, Blue’s mom suggested making fudge. The tourism industry was taking off, and cruise ships were coming into port more frequently. They all knew that visitors love taking special gifts home, Southeast ’s atmosphere was ideal for making confections, and the newlyweds needed work to hold them over while they evaluated other professional opportunities. “With my dad having grown up in a region that produced lots of fudge, he thought the idea just might work,” says Scott Bergmann, Blue and Deb’s only son. To start the business, Scott’s parents collected recipes from his grandmother and then traveled to Texas to take a crash course from a candy shop, where they had connections. At first, according to Scott, Blue and Deb assumed that their candy shop would be a short-term project, enabling them to recoup their investment and buying them time to determine what came next. “They never suspected Alaskan Fudge Co. would take off like it did,” he says. www.akbizmag.com
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His mother suggested fudge as a business, but Blue Bergmann didn’t expect it would become his career, let alone a legacy to pass on to his son. Alaskan Fudge Co.
Blue and Deb Bergmann set the course that their son Scott is continuing. Alaskan Fudge Co.
S c o t t ’s p a re n t s h a v e g i v e n t h e i r business their all, making their products in front of their customers since day one. He emphasizes that his “parents were here every day” and they “have always loved being a local company.” Not long after Blue and Deb opened Alaskan Fudge Co.’s first store, they hired a young man who is the business' longest employee, Phil Wheeler, who was like an uncle to Scott growing up. Now, three men share ownership of Alaskan Fudge Co.: Scott, Phil, and Jason Love, who started with the business during high school, stayed through college, and continued his employment afterwards. Together, they operate the business alongside their respective families. 26 | October 2023
“Phil, Jason, and I never imagined our jobs would turn into permanent careers,” says Scott, “let alone that we’d become the owners.” However, like candy is known to do, things stuck. “We’ve continued to follow my parents’ lead. We make our products in front of our customers, and we’ve got no plans to change that.” From cooking and spreading the fudge to dipping chocolates, everything at Alaskan Fudge Co. is hands-on and family owned. “We don’t use any preservatives,” Scott says, “and, because we expedite our packages, orders arrive fresh for our customers, regardless where they live.” Alaskan Fudge Co.’s two locations in Juneau provide storefronts to sell and kitchens to make its candies.
“Many customers and former employees are surprised our business has remained open and stayed in the family all these years,” muses Scott, noting that nowadays people move and change careers often. However, given the feedback that he’s received, clearly Alaskan Fudge Co. pulls people back. What has been the business’ key to success? Scott says it is communication: “With three families following in my parents’ footsteps, w e ’ v e g row n t o s e e e a c h o t h e r a s family, which means talking honestly and respecting one another because, at the end of the day, we want the same thing: our families and our business to last.”
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SMALL BUSINESS
W Businesses
Selling to Key Employees Keeping succession close at hand By Tracy Barbour
28 | October 2023
hen businesses are sold, they are typically acquired by competitors or companies seeking to diversify their portfolio. But a growing trend is for small businesses to be purchased by one or more key employees looking to take on a leadership or ownership role. In Alaska, entrepreneurial employees are realizing their dream of purchasing the companies where they have invested their time, energy, and lives. While no official numbers are available to quantify how many Alaska businesses have sold to employees, there is clearly more interest in business ownership, including among employees. At least that’s what the Alaska Small Business Development Center (SBDC) is observing. Since the COVID-19 pandemic, SBDC has seen a marked increase in the number of new clients who want help buying or selling an existing business, according to executive director Jon Bittner. The center has also noticed that a number of the businesses being sold have been going to employees. The number of new clients who requested SBDC's help “purchasing an existing business” jumped 44 percent between January and June of 2022 and the same time period this year, Bittner says. “During those six months Jon Bittner in 2022, we received fifty requests for Alaska Small Business assistance regarding purchasing a Development Center business, and in 2023 for the same time period, we received seventy-two requests,” he explains. “Advising time that our staff spends with a business client specific to buying or
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selling a business also jumped across the state but particularly in Juneau and the Kenai Peninsula.” SBDC spent a total of 208 hours advising clients from January to June in 2022 and 296 advising hours with clients between January and June in 2023. W h a t ’s t r i g g e r i n g t h e i n c re a s e d interest in business ownership and companies being acquired by employees? There are a range of factors. For example, since the COVID-19 pandemic, business owners are re-evaluating their long-term goals, according to Clifford Cochran, director of S B D C ’s K e n a i P e n i n s u l a Center. “In some cases, weathering the pandemic was too much and drove them out,” he says. “In other cases, the business climate changed, and sellers want to go.” Businesses have also changed hands because some owners simply retired or relocated. “We've been working with a number of Baby Boomers retiring as well as business owners leaving the state,” Cochran says. “Our population is more transient in Alaskan communities than the Lower 48, so there are a lot more folks coming and going.” Chad Steadman, senior corporate lending director at First National Bank Alaska, has also noticed significant transitions in business ownership after the COVID-19 pandemic. There was a realignment of thinking, with Chad Steadman Firs t National Bank Alaska many owners wanting to retire or change careers, he says. Then the owners needed to determine how their business would thrive going forward. Many want their legacy to continue and to support the individuals who have worked so hard to help their company succeed. “I believe business owners sell to employees because they want to take care of folks they have relied on, ensure business succession, and see their legacy grow and thrive after they are gone,” he says.
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A c ro s s t h e b o a r d , Ste a d m a n h a s seen business ownership transitions that involve owners and employees in restaurants, environmental companies, www.akbizmag.com
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“One of the major benefits of purchasing a company that you work for is that the entrepreneur doesn’t have to start from scratch… They already have experience in operating the business and possess the industry expertise that may be required for success.” Jenna Wright Vice President Anchorage Economic Development Corporation
30 | October 2023
engineering firms, and the tourism and service industries. Most employees are using a combination of cash, equity from employment, owner financing, and bank financing to facilitate their purchase. A s i d e f ro m o t h e r d i re c t l e n d i n g methods, the US Small Business Administration (SBA) 7(a) loan program is another potential funding option. The federal program can benefit a direct employee purchase or adapt to accommodate an employee stock ownership plan purchase. “Existing employees’ operational knowledge, m a r k e t ex p e r i e n c e , a n d c u s t o m e r relations are all benefits when considering financing a business acquisition,” Steadman says. “With the SBA’s support, First National can more confidently consider financing when the new owner ’s financial position might not be as strong as the prior owner’s. In this case, terms may be ten years and up to twenty-five with real estate, and down payment requirements may also be reduced.” Down payment and sale price are the biggest barriers to individuals buying their employer’s business, Cochran says. “Employees often do not have the 20 to 35 percent down payment lenders require, which often nixes the sale,” he explains. “There is too much risk in a seller financing agreement, so that is often considered but passed on. Business owners often overvalue their business, so this can often prevent the deal from happening, Clifford Cochran s i m p l y b e c a u s e Alaska Small Business a b a n k w i l l n o t Development Center finance an acquisition if the business cannot support the debt service.” H ow ev e r, t h e A l a s k a S t a t e S m a l l Business Credit Initiative (SSBCI) program, which is being managed by SBDC, is a great tool for employees looking to purchase a business. “If the business is priced well and bankable—meaning it can support the debt service on an acquisition loan—and the employee has the down payment, commercial and SBA 7(a) loans are also good options,” Cochran says. “Businesses priced too high and employees lacking the down payment are the top barriers to make this work.”
In the Fairbanks area, the sale of companies to employees has generally entailed some form of buy-out, says Jomo Stewart, president and CEO of the Fairbanks Jomo Stewart E c o n o m i c Fairbank s Economic D e v e l o p m e n t Develpment Corporation Corporation. The transactions have primarily involved establishments that are owned by a single person or family or a few partners. That was Angie Tallant ’s situation when she purchased Somers & Associates Realtors in 2011 after joining the company in 2000 at the age of 20. She explains, “I was the assistant to the broker for those eleven years, and after about three years of working under his mentorship, I knew that one day I wanted to own Somers because I knew that this was what I was going to do as a long-time career. Somers has been an integral part of real estate in Fairbanks since 1991.” Since then, Tallant has diligently worked to expand the company, now named Somers Sotheby's International Realty. Within a year after purchasing the company, she had acquired thirteen new agents. In 2014, she opened an office in North Pole and continued to grow the business. “In 2017, I opened a new office in Eagle River so that the same culture and principles that Angie Tallant Somers is known Somers Sotheby ’s for could serve the International Realt y Southcentral area,” she says. I n a d d i t i o n t o a d d i n g m o re s t a f f and locations, Tallant has also made a significant effort to enhance her agents’ access to technology. “I wanted to continue the amazing culture of the o f f i c e w h i l e e m b ra c i n g t e c h n o l o g y and systems that would help us streamline our transactions and better serve our clients,” she explains. “In fact in 2020, I franchised with Sotheby ’s international real estate so that I can better provide upcoming technology to my agents.”
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Advantages of Selling to Employees
Jenna Wright, vice president of the A n c h o ra g e E c o n o m i c D ev e l o p m e n t Corporation, has observed a growing interest in entrepreneurship in Alaska. In some cases, this has been the catalyst for employees assuming ownership. “In recent years, I’ve noticed an increasing trend has emerged in the popularity of entrepreneurship and employees taking the reins of a company they work at by purchasing the business,” she says. Selling a business to key employees can offer a whole host of advantages for the current owner, other employees involved, and the business in general. “One of the major benefits of purchasing a company that you work for is that the entrepreneur doesn’t have to start from scratch at the inception of a business idea because Jenna Wright they already have Anchorage Economic e x p e r i e n c e i n Development Corporation operating the business and possess the industry expertise that may be required for success,” Wright says. In addition, purchasing a business that the employee is already familiar with may be perceived as a less risky endeavor, with a faster path to stable profitability. “Established businesses typically have existing revenue streams, customer bases, and assets that can lead to quicker profitability and potentially lower financial risk,” Wright says. “On top of that, owners may be more willing and able to offer flexible financing terms that the employee-turnedentrepreneur would not necessarily have access to on their own in the private markets for income or credit reasons or whatever else.” Selling a company to current e m p l oy e e s c a n a l s o c re a t e a m o re seamless transition than selling to an outside entity. “By selling to key employees who are already familiar with the business operations, culture, and customer base, the new owner will be able to have a smoother transition with a minimized learning curve, reducing the potential disruption to the business' continuity,” Wright says. www.akbizmag.com
Alaska Business
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“A sale to existing employees is the most seamless transition for customers and vendors… Employee purchases can help businesses leverage their existing local relationships with suppliers and retailers while maintaining continuity and business culture.” Chad Steadman Senior Vice President & Senior Corporate Lending Director First National Bank Alaska
Having employees as the new owner c a n a l s o p re s e r v e t h e l oy a l t y a n d motivation of other employees. “It ’s nerve-wracking for employees to go through any leadership change, especially an ownership change,” Wright says. “If they already have existing rapport with the new owner, it can drastically reduce that trepidation and reduce interruptions to operations—or worse, turnover of key staff members.” M o r e o v e r, t h e k n o w l e d g e a n d relationship retention that comes with turning an employee into an owner can have widespread ramifications, Wright says. It can prevent the loss of critical business insight and provide a continuity of relationships between customers and vendors that are so vital to business success and sometimes take years to build. Cochran has similar thoughts. When employees purchase their company, it often keeps the business momentum and provides for a smooth transition, he says. Eliminating the learning curve with an outside buyer often ensures the quality of the product or service remains. And with the company going to a key employee, this helps retain other employees as well. Ultimately, the feasibility of the sale is the deciding factor. “If the deal does not pencil out or the employee does not have capital for the down payment, it often goes to a financial decision, with the seller needing to get out of the business while they have strong financials and are able and willing to keep performing at a high level,” Cochran says.
Good for the Community
As a broader benefit, Wright believes that employees purchasing local businesses has a positive impact on the community. “ When local employees purchase a business, they are more likely to p r i o r i t i z e t h e re t e n t i o n o f ex i s t i n g jobs and the creation of new ones and have a sense of loyalty to their local c o m m u n i t y, ” s h e s a y s . “ T h i s h e l p s maintain the employment opportunities that the business provides within the community and the pride the community has in the particular business because residents know that local businesses often form the backbone of a community's economy.” 32 | October 2023
Similarly, Steadman emphasizes the positive effect of maintaining a business’ culture and legacy. “A s a l e t o ex i s t i n g e m p l oy e e s i s the most seamless transition for customers and vendors,” Steadman explains. “Employee purchases can help businesses leverage their existing local relationships with suppliers and retailers while maintaining continuity and business culture. Whenever an Outside firm purchases a business, profits are redistributed outside of Alaska, and the philanthropy and investment of a local business is lost. It has a significant impact on our community when we lose local companies.” The internal elevations generated when employees purchase a b u s i n e s s a l s o p ro d u c e s i m p o r t a n t macroeconomic, community benefits, Stewart says. “Part of keeping talent either in a company or in a community is having identifiable, accessible, and functioning ‘avenues for advancement,’ preferably operating under a timeline that offers an employee a fair expectation that the rewards for their work will keep pace with the growth of their own needs,” he says. “Certainly, the real or even perceived absence of these can be a driver of flight from companies and communities alike.” However, employees of longer tenure and experience will understand the unique needs of the business and will, presumably, provide better service to community members, Stewart says. This also will increase the likelihood the business will successfully remain in operation under the new owner. From Wright’s perspective, employees purchasing a business presents an exc i t i n g o p p o r t u n i t y f o r i n d i v i d u a l employees and the broader community. It's also a testament to the evolving nature of entrepreneurship and the importance of cultivating a supportive ecosystem for business ownership. “As Baby Boomer business owners begin to look to retire, I really encourage them to consider mentoring and collaborating with their employees to prepare them for a potential transition that keeps their legacy alive,” she says, “and hopefully contributes to the growth of our young adult population s o t h a t o u r e c o n o m y c a n g row f o r decades to come.”
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H R M AT T E R S
Developing a Strengths Based Leadership Strategy through Gallup Strengths Coaching & Tools Brooke Kuempel, Executive Consultant PeopleAK
E
ffective leadership is crucial for organizational success in the ever-evolving landscape of business. Leadership teams bear the responsibility of guiding their organizations toward growth and innovation. To achieve this, leaders must throw out the rules of conventional management and adapt their approach to the unique qualities of their team members. It is pivotal to understand each employee’s strengths and weaknesses to implement a strengths-based management style. The best way to achieve this is to administer Gallup’s Strengths Assessments to all your employees, including your leadership team. What Is the Gallup Strengths Assessment? Based on the CliftonStrengths assessment, the Gallup Strengths Assessment is a powerful instrument that has gained prominence as a reliable tool for coaching leadership teams. It focuses on identifying an individual’s inherent talents and strengths. Developed by the renowned psychologist Don Clifton, this assessment reveals your unique talent profile based on your responses. These strengths encompass a wide range of attributes from communication and strategic thinking to relationship building. When applied to leadership teams, this test helps to create a holistic view of team members’ abilities, thus
facilitating effective team dynamics and decision-making. Benefits of Administering the Assessment There are numerous benefits to administering the Gallup Strengths Assessment to teams and their leadership. Benefits include improved awareness of employees’ natural talents. The assessment results ranks thirty-four themes and is unique to each individual; greater confidence and empowerment thanks to a deeper understanding of how employees can access strengths to succeed; improved communication as team members recognize each other’s contributions and how best to work together; and enhanced employee performance. By first identifying team strengths, leadership teams can adopt a strengths approach to improvement, growth and sustainability throughout the organization. How? By using the data and tools for employees to apply their strengths and help manage overall expectations. How to Implement the Strengthsbased Management Style Leadership teams set the tone for their organization’s culture. When leaders embrace their strengths and lead authentically, they motivate and inspire others to do the same. The Gallup Strengths assessment assists in creating a culture where individuals are encouraged to leverage their
strengths, fostering a sense of empowerment and engagement. As team members feel valued for their unique contributions, morale improves, job satisfaction rises, and turnover rates decrease. Collaboration becomes effortless when team members understand and appreciate each other’s strengths. This enhances team performance and establishes a positive work culture where each individual’s strengths are celebrated. Creating a favorable and productive work environment should be the goal of any leadership team. With the help of the Gallup Strengths assessment and the strengths-based management style, leaders and team members can work together to build a strong foundation that adapts to each individual’s strengths, ultimately allowing an organization to reach its full potential. Contact us to discuss how a Gallup Strengths Assessment can help your team increase its performance.
Brooke Kuempel, Executive Consultant brooke@peopleak.com 907-276-5757
For more information about PeopleAK, please visit peopleak.com or call 907-276-5707.
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FINANCE
Business Plan Competitions A roundup of entrepreneurship events By Scott Rhode
“E
very business needs a business plan,” says Jon Bittner, executive director of the Alaska Small Business Development Center (SBDC) at UAA. “Do you need a sixty-page, high-gloss plan? Probably not; not at first, anyway. But it’s a really crucial first step for any business.” That first step is more than a blueprint for the final form of a business, according to Ashley Snookes, program director at Spruce Root. “Business plans can be seen as a final destination, [but] when we look at a plan that way, it breaks. It doesn’t last for the many things that happen to a business,” she says. Spruce Root is a nonprofit community development financial institution (CDFI) serving Southeast. In addition to its lending, networking, and philanthropic functions, Spruce Root’s Path to Prosperity program includes one-on-one business coaching, online training, and multi-day workshops. The flagship feature, though, is its business plan competition. Twice each year, the nine-week “Business and Balance” course leads a cohort through compiling a plan. At the end, judges award the best three up to $20,000 apiece. Bittner notes that many Alaska brands owe their success to a solid plan—and to the financial boost from a competition prize. “That’s where they got their start, most of the ones that seem 34 | October 2023
to have the best marketing presence. And I don’t think that’s a coincidence, honestly,” he says. “I think that there is definitely a direct tie to entrepreneurs that understand the opportunity that these competitions represent and their ability to leverage that later on.”
Company Description
Most businesses never submit plans for competition. Bittner says SBDC works with up to 2,000 clients per year, but competitions might be limited to a dozen entrants at a time. Organized contests certainly aren’t a requirement. But they can help. Most lenders require a well-vetted business plan, Bittner says, so participating in a contest looks good on a loan application. Cash prizes are another common incentive. “Some of them have money involved,” Bittner says. “Sometimes you get access to free resources, marketing, things like that. Some of them, it’s the exposure: you get a lot of promotion, not even if you win but if you’re in the top three. You also get access to the network of judges, sponsors, and other participants.” More than once, Bittner has seen competitors become collaborators by cross-pollinating their ideas. They also sharpen each other, motivating greater effort. “Sometimes
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Connor Meyer
“Participants are learning core elements of running a business… The ‘lightbulb’ moments had by our participants—from startups to seasoned entrepreneurs—tells us that these trainings make a difference in how they run their businesses.” Ashley Snookes, Program Director, Spruce Root
people need that competitive edge to do the homework,” Bittner says. “This gives you a structure, a timeline, and maybe some upside on the back end.” Snookes sees competitions the same way. “They’re a structured methodology for fleshing out your ideas or bringing them into action,” she says. “A lot of folks really like entering into something that gives them a hard deadline and a goal that they’re going to accomplish—and that extra carrot at the end, sometimes, of an award or something that they’re reaching for.” Furthermore, contests bring new talent into contact with experts. “Participants are learning core elements of running a business,” Snookes says. “The ‘lightbulb’ moments had by our participants—from startups to seasoned e n t re p re n e u r s — t e l l s u s t h a t t h e s e trainings make a difference in how they run their businesses.” www.akbizmag.com
Alaska Business
October 2023 | 35
The 2022 Path to Prosperity cohort takes a field trip to Barnacle Foods in Juneau. Connor Meyer
“Sometimes people need that competitive edge to do the homework… This gives you a structure, a timeline, and maybe some upside on the back end.” Jon Bittner, Executive Director, Alaska Small Business Development Center
Market Analysis
Competitions come in a variety of flavors depending on geography, demography, and intent. About a halfdozen organizations host business plan competitions in Alaska around the calendar. Spruce Root’s latest cohort began in September. It targets Southeast residents and emphasizes ideas that have positive environmental, social, and economic impact. SBDC’s rural program director, Ian Grant, assists Spruce Root, but the center itself does not host any competitions. UAA’s Business Enterprise Institute, h o w e v e r, r u n s t h e U p s t a r t A l p h a a c c e l e ra t o r t h ro u g h i t s C e n t e r f o r Economic Development (CED). The course starts in October with a two-day “Find Your Customer” virtual workshop and continues through December 15 with nine more sessions on market validation, branding, and financing. Participants are eligible for a cash stipend of up to $2,000. Finalists training through North Slope Marketplace have until November 3 to 36 | October 2023
submit business plans. That competition, operated by McKinley Alaska Growth Capital (MAGC) and open to Arctic Slope Regional Corporation shareholders, will announce winning grantees in February. Since 2009, it has awarded more than $1 million to fifty businesses. UAA’s College of Business and Public Policy has a competition tied to a course that begins in November. Prizes ranging from $1,000 to $8,000 are distributed in April at the “Perfect Pitch” event. April is also when UAF hosts its Arctic Innovation Contest. It offers a $15,000 grand prize in the main division, and prizes are also given to teens and younger innovators. Complete plans are not a requirement; the contest is open to products or ideas. N ex t M a y, t h e 4 9 t h S t a t e A n g e l Fund will again host its Alaska Angel Conference. The statewide program deals with the other side of the entrepreneurial equation: guiding novice investors through the process of selecting companies. Applicants compete for a
$100,000 investment. The conference not only boosts new businesses but increases the number of investors in the startup ecosystem.
Organization and Management
Business plan competitions are one of the many tools for lifting up entrepreneurs. Bittner rattles off resources like maker spaces, maker fairs, hackathons, startup weekends, and startup weeks. On its alaskastartups.com web page, UAA CED lists many more programs, albeit without the competition angle. For instance, the seven-week gBETA program run by gener8or, a national accelerator, is not accepting applicants at this time, but it is hosting a nationwide conference on manufacturing in Indianapolis this month. Anchorage Community Land Trust operates its Set Up Shop program for growing businesses in the Mountain View, Fairview, Muldoon, and Spenard neighborhoods. Functionally similar to
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they’re going to accomplish—and that extra carrot at the end, sometimes, of an award or something that they’re reaching for.” Ashley Snookes, Program Director, Spruce Root
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that gives them a hard deadline and a goal that
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The winners of the last UAA Perfect Pitch included a software company developing “digital twin” platforms and the inventor of a toolbox that attaches to the top of a ladder. U A F ’s A r c t i c I n n o v a t i o n C o n t e s t awarded cash prizes to AiryCherry, a portable outdoor air-purification system; Grater Than Ice, a spinning ice scraper; and The Animal Alert, an app for warning about dangerous wildlife nearby. That last idea was from the pre-teen division. Bittner judges the adult division, but he loves to see kids’ inventions. “Those kids come up with stuff where I’m, ‘Why have I not thought of it that way before?’ There’s been so many business ideas that I wish I’d thought of first,” he says, recalling one intriguing twist on frozen yogurt. New uses for Alaska resources catch Snookes’ attention. “It’s super exciting to see entrepreneurs that are leaning into the mariculture space. We know that there’s a lot of federal funding that’s come to Southeast Alaska that’s interested in growing this nascent industry,” she says. With so many different industries represented, how do judges weigh plans against each other? Bittner explains, “There are certain fundamental things that basically every business plan needs. Financials are financials, no matter what industry sector you’re in. Margins may change, operating costs, all that stuff— but at the end of the day, the money you bring in has to exceed the money you spend, or it’s not a business. It’s a hobby.” M a r y M i n e r, v i c e p r e s i d e n t o f community development at MAGC, says judges for North Slope Marketplace look for certain criteria. “We have a
“A lot of folks really like entering into something
CAP
other training courses, it simply drops the competition component. With cohorts capped at ten, twenty, or at most fifty participants, the state’s entrepreneur training pipeline struggles to meet demand, according to Bittner. Having many small programs, though, lets each of them occupy a narrow niche. Spruce Root ’s focus, for instance, is a holistic approach. “We have a lot of conversations around well-being, balance, and how they manage running t h e b u s i n e s s w i t h t h e re s t o f t h e expectations that they have in their lives,” Snookes explains. The diversity of programs also opens the field to a wider spectrum of entrants.
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Alaska Business
October 2023 | 37
Previous winners of the Path to Prosperity business plan competition, Leah Wagner and Nick Schlosstein of Foundroot, a farm and garden supplier in Haines. Spruce Root
scoring rubric that we share with the entrepreneurs. They see the business plan template, and it links to the scoring section in our rubric,” Miner says. “Really, we’re looking for comprehensive plans.” The best plans thoroughly and scrupulously analyze all aspects of the business.
Marketing and Sales
As is the nature of competition, though, not all plans are the best. Bittner says one common mistake is not choosing a market segment. “You think your product is the greatest thing that’s ever been invented; you want everyone to buy it. ‘My market segment is the whole wide world!’ It’s very difficult to market to the whole wide world,” he says. Therefore, client discovery is very important, a point Snookes agrees with. “It’s really tempting for entrepreneurs to, for example, discuss their competition in the business plan and just want to wow judges or whatever investor is reading it, to say, ‘Oh my gosh! This is the best!’ But as consumers, we all know that there’s 38 | October 2023
a huge variety of similar products and services,” she says. To b e u s e f u l , p l a n s m u s t a s s e s s shortfalls and risks as well as advantages. Snookes says, “The best business plans I’ve read are the ones that get really honest about the challenges that they foresee as well as the opportunities.” A long-term view is also important at the outset, according to Bittner. “A really, truly good business plan isn’t just structured for the next year or next three years; it’s structured for the exit,” he says. “Eventually, you’re going to leave the business… You can do a lot of things on the front end that can make that a very difficult, horrible process or it can make it a wonderful, easier process.” Winners of Spruce Root ’s Path to P ro s p e r i t y m u s t a l s o “d o g o o d , ” a principle that North Slope Marketplace has incorporated. “We have the business fundamentals, where we look at the opportunity and the value proposition, the feasibility of implementation, the financial plan, the team, and we look at the social impact of the business,” Miner explains.
Borrowing from Path to Prosperity, Miner says North Slope Marketplace weighs plans against a “triple bottom line” standard: people, planet, and profit.
Funding Request
Path to Prosperity was originally a program of Sealaska, in partnership w i t h T h e N a t u r e C o n s e r v a n c y. I n 2012, the Alaska Native corporation for the Southeast region spun off its C D F I a s a n i n d e p e n d e n t n o n p ro f i t , Spruce Root. More than 250 business plans have trodden the Path to Prosperity, advancing 124 finalists. Altogether, Spruce Root has awarded $750,000 to twenty-one startups through the competition (a small fraction of the 800 entrepreneurs supported through its technical assistance programs). Path to Prosperity earned Spruce Root an award for itself. In 2015, the International Economic Development Council gave the organization a Silver award for excellence. Snookes credits its client support, programming developed with the Sustainable Southeast
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meet
in
ANCHORAGE The Meeting: 2024 Association of Firearm and Tool Mark Examiners Conference May 26 - 31, 2024 Nicolette Roth, Host Chair of the AFTE Anchorage Conference Estimated Economic Impact: $1,176,830 In 1969, The Association of Firearm and Tool Mark Examiners set out to help the advancement of firearm and tool mark identification. Thanks to Alaska member Nicolette Roth, the annual AFTE Training Conference will be headed to Anchorage in May of 2024 for the first time. Excited to
Meeting Champion, Nicolette Roth
showcase Southcentral Alaska, Roth wanted to bring the conference to Anchorage to promote and facilitate participation in the broader forensic science community. With the only forensic laboratory in the state, obtaining the specialized training and building professional relationships with other forensic experts from around the world is essential to stay at the forefront of new technologies and research.
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A previous winner of the Path to Prosperity business plan competition, Justyne Wheeler, owner of Village Coffee Company in Yakutat. Spruce Root
Training sessions at Spruce Root’s 2022 Path to Prosperity boot camp. Connor Meyer
Partnership, and the underlying holistic approach. “We recognize that not every entrepreneur that goes through our programs is going to come out wanting to build a business, and that’s okay,” says Snookes. While Spruce Root focuses on Southeast, it has partners in other regions, North Slope Marketplace being one. Snookes recalls a recent field trip with the MAGC team. “It was really humbling to be in Utqiaġvik,” she says, “and really seeing how little the Spruce Root team knew about that area. But because we had that partnership with them, they were able to really bring in the community and ground us in cultural practices that we don’t know without a partner being there.” Responsiveness to local conditions forces each program to evolve. The nine-week course that Spruce Root is conducting this fall, for instance, used to be a three-day intensive boot camp resulting in two $25,000 prizes. Last spring, Spruce Root revised the training schedule while lowering the top prize to $20,000 and adding a third winner.
Financial Projections
Mary Miner (center) invited Ukpeaġvik Iñupiat Corporation CEO Pearl Brower to advise a North Slope Marketplace training cohort at the Top of the World Hotel in Utqiaġvik. McKinley Alaska Grow th Capital
40 | October 2023
Alumni spread the wealth, in turn. “Year to year, graduates are offering 100-plus jobs on average and adding $1 millionplus in revenues,” Snookes says. Still, she believes there’s a lot of work left to do. “Success in business competitions doesn't just look like winning businesses that exceed revenue projections,” she says. “It also looks like providing entrepreneurs the education they need up front to realize running a business might not be for them.” Partnerships, she adds, are the key to Spruce Root’s work. Indeed, Bittner expects more partnerships to flourish soon. “ The next three to five years, we’re going to see an explosion of other resources, mainly driven by the State Small Business Credit Initiative [launched last October]. There’s multiple technical assistance grants that are coming out, the various federal spending bills… All sorts of things like that,” he says. Bittner has observed that entrepreneurship programs outside of Alaska tend to compete for resources, but that’s less the case within Alaska. The competition is reserved for business plans themselves. Alaska Business www.akbizmag.com
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OIL & GAS
The Only Alaskan-Owned Producer HEX/Furie keeps the lights on for local oil and gas By Terri Marshall
W
hen John Hendrix’s company HEX Cook I n l e t p u rc h a s e d F u r i e O p e ra t i n g A l a s k a , i t w a s r u n by outside management and there was only one Alaskan working there. Now the company is 100 percent Alaskanowned and operated. In August 2019, Furie Operating Alaska filed for Chapter 11 bankruptcy protection and was marketed nationally to find new owners. At a December 2019 auction overseen by the courts, Hendrix made the highest bid, securing the rights to purchase Furie. In July 2020, Hendrix’s newly formed HEX Cook Inlet acquired the rest of Furie and its partners Cornucopia Oil & Gas Company and Corsair Oil & Gas in bankruptcy proceedings. With those acquisitions 42 | October 2023
complete, Furie Operating Alaska became the state’s only Alaskanowned natural gas producer. Hendrix believes more oil and gas businesses need to be owned and operated by Alaskans, but that requires an understanding of the business. “I think it would be good for our residents to have a more intimate knowledge of the oil and gas industry,” he explains. “The primary talent base has really been from out of state, but we have home-grown e n e rg y h e re a n d w e n e e d m o re home-grown people that understand it. We have locally owned companies in the oil and gas support industry, l i k e U d e l h ov e n O i l f i e l d S u p p o r t Services, Petroleum Equipment & Services, and Pollard Wireline, so why not more locally owned producers?”
In Hendrix’s opinion, an increased knowledge about t h e o i l a n d g a s industry among Alaskans would lead to an increased comfort level across the entire industry. “There’s always been this untrusting relationship between Alaskans and Outside companies. It’s personified in the movies and everywhere else,” he says. “I’m the only Alaskan owner producing gas for our state, and I don’t think that is good for Alaska. It ’s also not good for t h e o i l a n d g a s i n d u s t r y. I f o u r residents see more Alaskan-owned c o m p a n i e s i n t h e i n d u s t r y, t h ey will trust that companies are doing the right thing for our state and aren’t here just to make a fast buck and leave a mess for Alaskans to clean up.”
Alaska Business www.akbizmag.com
Why Outside Companies Run the Show
Furie’s Kitchen Lights Unit (KLU) leases cover Upper Cook Inlet waters about 5 miles offshore from a beach north of Nikiski; in the other direction, about 5 miles inland, is the site of Alaska’s first major oil discovery. Congress deemed that 1957 discovery at Swanson River as a secure economic base in Alaska, and thus Cook Inlet oil and gas laid the foundation for statehood. “With oil and gas from Cook Inlet, we were on our way to independent success,” Hendrix observes, “when the discovery of oil and gas in Prudhoe Bay came along.” The Prudhoe Bay field was discovered in March 1968 by ARCO and ExxonMobil through the Prudhoe Bay State #1 well. “Prudhoe Bay was too big, and we couldn’t handle it ourselves, so the major players in the oil and gas industry came in from places like Texas and Oklahoma,” Hendrix explains. “They basically operated at a different level, and they also overcomply, which led to more industry regulations. The entire focus of the state’s oil and gas sector switched overnight from Cook Inlet to the North Slope,” he says. “Cook Inlet became an afterthought even though it had world class energy reserves and contains the majority of the state’s population.” Hendrix believes that heavy regulations are manageable for the big players, but they put an unfair burden on small companies. “These extensive regulations place a hefty weight on the industry which puts the small guy out of business,” he says. Hendrix believes reevaluating the past could benefit the industry now and in the future. “We have to take a good look at a lot of the heritage paradigms that we put the oil and gas industry into,” says Hendrix. “We built this in a way that only major oil and gas companies can operate here. We need to work our way back in order to understand what is realistic and what is unrealistic.”
Fixing the Foundation
Hendrix grew up in Homer, where he attended public schools and participated in varsity sports and other school activities. He spent his college years in the Lower 48, where he majored in engineering at the University of Tennessee Knoxville. After adding a minor in environmental engineering, www.akbizmag.com
h e re t u r n e d t o A l a s k a t o w o r k f o r Schlumberger (now SLB) and BP on the North Slope. Hendrix has accumulated nearly four decades of experience in the energy industry in Alaska and internationally, such as assignments in the United Kingdom and Egypt. Hendrix returned again to Alaska to work for Apache Corp. in 2011. When Apache exited Alaska in 2016, Hendrix chose to continue his business pursuits in his home state as a way to give
back. He served on then-Governor Bill Walker’s cabinet as his oil and gas policy advisor, participating in international negotiations and supporting development of the energy industry. H e x ’s a c q u i s i t i o n o f F u r i e c a m e with numerous challenges. Under its previous owners, Furie brought KLU into production with a single well in 2015 and subsequently drilled three more production wells. By the time HEX took control, one of the four wells was no longer working and was in need of
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upgrades and repairs. “When we took over the company, there were a lot of foundation issues we needed to fix,” says Hendrix. “If you don’t fix the foundation, it cracks, and that will kill your business.” The prior owners attempted to produce gas from the wetter Sterling gas formations in late 2018 and early 2019. That attempt cost the previous owners $17 million when they froze the flowline due to excess water production in the winter of 2019. To remediate that issue, HEX obtained permits to allow production from gas zones with higher water content. The company invested $1.8 million in a water handling system, which was installed last year mainly for the Sterling formation. Hendrix believes this may result in increased gas recovery once the Sterling formation is brought on production. At KLU, the A-1 Sterling well has been put into test and, so far, the test has been encouraging. Additionally, the KLU A-2A and KLU A-4 Sterling zones have been tested; the KLU A-4 test is negative. Due to the inability to comingle production from the Beluga and Sterling formations, HEX is strategically placing individual zones in test to minimize any disruptions to overall production.
Pain in the Assessment
The state of Alaska assesses property taxes on oil and gas exploration, production, and transportation properties—including drilling rigs, pump houses, and offshore platforms—at the beginning of each year. The state has consistently valued HEX’s KLU property at $81.7 million. “ The state valued our property at four times more than we purchased it for and more than the IRS allows us to depreciate,” says Hendrix. HEX/Furie’s current property tax is $1.6 million a year, which is split between the State of Alaska and the Kenai Peninsula Borough. Hendrix appealed the assessment in 2021 and 2022. Both times, the State Assessment Review Board upheld the $81.7 million assessment. The assessment is now the subject of an active lawsuit in which Hendrix hopes to prevail, despite mounting legal fees. Hendrix believes the state is not accounting for the purchase price, the value, and the challenges of producing oil and gas in Cook Inlet, which many companies have abandoned. He believes 44 | October 2023
the facts,” says Hendrix. “Alaskans need to know there is a difference between a non-SEC [Securities and Exchange Commission] company stating what is proved reserves and an SEC stock listed company. Even though we are not a publicly listed company, we strive to provide SEC proved reserves.”
“According to our state constitution, Alaska employers are tasked with Coordinated Conversations The main natural gas supplier for maximizing the S o u t h c e n t ra l , H i l c o r p , h a s w a r n e d utilities that it can’t guarantee sufficient production volume in its next longresources for all term contracts. Thus, Railbelt utilities are looking into alternatives, which Alaskans. If I’m could include an expanded portfolio of energy sources to stretch the penalized on the tax renewable supply of Cook Inlet gas. “I’m not opposed to renewable energy front, I can’t provide sources,” Hendrix says, “but why am I going to drill a well for $20 million or royalties, can’t employ $30 million if my company is going to be replaced by renewables in five or ten years? There’s no incentive to spend the other Alaskans, and money.” frustrates him, Hendrix adds, can’t provide comfort is What the lack of conversation about the future with regard to renewable energy. for investors.” “ N o t h i n g i s c o o rd i n a t e d , ” h e s a y s . John Hendrix, President & CEO HEX /Furie Operating Alaska
those challenges warrant a reduction in the tax assessment. “The taxes we are paying each year could be put into production and into paying a Kenai Peninsula workforce,” he says, noting that HEX sells all of its gas to buyers in Southcentral. Hendrix sees the property tax assessment as a roadblock to future success for his company and for Alaska generally: “We need to look at the totality of what we’re doing. According to our state constitution, Alaska employers and elected officials are tasked with maximizing the resources for all Alaskans. If I’m penalized on the tax front, I can’t provide royalties, can’t employ other Alaskans, and can’t provide comfort for investors.” Honesty remains at the center of Hendrix’s business ventures. “A lot of smaller oil and gas companies looking to raise money and attract investors try to hype their prospects and so-called proved reserves. Our reputation is to be a good honest player. We’re going to show them
“There is no transitions and mitigation plan. What happens if it doesn’t work? Renewables are part of the solution but they are benefitting from state and federal subsidies and tax breaks to make them competitive—and they don’t pay royalties to the state. HEX pays 12.5 percent royalties to the state, so it would be a different economic model if renewables had to pay 12.5 percent of their revenue, as well. We need to start having these conversations now before it bites us in the butt. Alaska produces home-grown energy, and we want to keep it that way!” M o re t h a n s i x t y - f i v e y e a r s a f t e r the Swanson River unit brought commercial oil and gas to the Cook Inlet basin, the industry is hardly ready for retirement age. “Although we’re evolving as a state, when it comes to oil and gas, we’re still kind of like teenagers,” says Hendrix. “I’m Alaskan, but we need to understand how the major players in the industry from Texas and Oklahoma operate.” A s l o n g a s o n e p i e c e o f A l a s k a’s o i l a n d gas sector is under Alaskan ownership, the door is open for more players to join.
Alaska Business www.akbizmag.com
TOP 49ERS
t
op 49ers are high-level players. The annual ranking is an indication of how well they improvise, explore the terrain, resolve conflicts, and play their assigned roles.
The “successful business” game never ends. It is a path. Along the way,
the 2023 top 49ers At the top of their game
players encounter creatures that may aid in their journey. These fantasy experts are keepers of fantastic advice for improving the character attributes of a business, the basic kit of skills that each player starts with. Meet your guides: Moosicorn, the unicorn-moose of customer service;
Minoxen, the musk ox minotaur of safety; HR Kraken, the sea monster of human resources; the ancient and savvy IT Dragon; and the calculating and convivial Finance Fairy. They represent five foundational principles that every business must engage with. None of the five can be avoided, but each company may approach them differently, leaning into some more strongly than others. For instance, a sole proprietor may have little need for HR and de-emphasize that principle (what players call a “dump stat”). Different combinations of these five principles can lead to success. Ah, but what is success? Amassing a hoard of treasure is a valid victory condition, but it is not the only one. In this section, we ask Top 49ers what, other than revenue, they consider an indicator of success. This section also visits a player who is not yet a Top 49er but is at the table, watching the game closely. ARG Industrial is accumulating experience and equipping itself to level up. This year’s adventuring party is composed almost entirely of veterans. Only one Top 49er has never been on the list before. Flip to #47 to find out which. The table is set, the cards are shuffled, and the dice have had all the 1s rolled out of them. Let the game begin!
46 | October 2023
Alaska Business www.akbizmag.com
1
no.
2
Arctic Slope Regional Corporation
Bristol Bay Native Corporation
2022 Rank: 1 | 22.6% Change in Revenue Year Founded in Alaska: 1972 Employees: 14,899 Worldwide | 3,297 Statewide
2022 Rank: 2 | 26% Change in Revenue Year Founded in Alaska: 1972 Employees: 5,050 Worldwide | 1,538 Statewide
2022 Revenue: $4,752,955,000 2021 Revenue: $3,876,830,000 2020 Revenue: $3,420,602,000 2019 Revenue: $3,766,757,000 2018 Revenue: $3,396,783,000
2022 Revenue: $2,725,190,000 2021 Revenue: $2,162,939,000 2020 Revenue: $1,690,619,000 2019 Revenue: $1,766,967,000 2018 Revenue: $1,689,014,000
Abilities: ASRC's diverse operating segments—including government contract services, industrial services, petroleum refining and marketing, energy support services, and construction—give ASRC the capabilities to serve a wide range of federal, commercial, industrial, and energy customers.
Abilities: Industrial services, government services, construction,
Achievements: In 2022, ASRC reached its highest revenue in our 50-year history: $4.8 billion. Thanks to the commitment of our employees, we proudly completed a variety of projects ranging from the construction of the new Kivalina School to supporting NASA in launching the Artemis I rocket.
seafood, and tourism.
Achievements: BBNC holding company Bristol Bay Industrial acquired GHEMM Company in 2022. Based in Fairbanks, GHEMM has been a premier commercial general contractor in Alaska for over 70 years. This acquisition enhances and expands BBNC's construction services capabilities and market presence in Alaska.
Jason Metrokin, Pres./CEO Anchorage | 907-278-3602 | bbnc.net
Rex A. Rock Sr., Pres./CEO Utqiaġvik | 907-852-8633 | asrc.com
www.akbizmag.com
Alaska Business
October 2023 | 47
TOP 49ERS
no.
TOP 49ERS
NO. 1 ARCTIC SLOPE REGIONAL CORPORATION ASRC’s diversified operations strengthen the Alaska economy and return benefits to Iñupiaq shareholders. ASRC Industrial
no.
3
no.
NANA Regional Corporation
4
Lynden
2022 Rank: 3 | 38.2% Change in Revenue Year Founded in Alaska: 1972 Employees: 14,363 Worldwide | 3,514 Statewide
2022 Rank: 5 | 20.4% Change in Revenue Year Founded in Alaska: 1954 Employees: 2,519 Worldwide | 989 Statewide
2022 Revenue: $2,445,916,656 2021 Revenue: $1,769,700,000 2020 Revenue: $1,536,513,873 2019 Revenue: $1,655,322,000 2018 Revenue: $1,501,302,000
2022 Revenue: $1,300,000,000 2021 Revenue: $1,080,000,000 2020 Revenue: $960,000,000 2019 Revenue: $1,075,000,000 2018 Revenue: $1,050,000,000
Abilities: Resource development; land management; federal contracting; engineering & design; surveying & mapping; food & facilities management; camp services; security; industrial & commercial fabrication & installation; transportation & logistics services at Red Dog Mine; civil construction at Red Dog Mine.
Abilities: The Lynden family of companies provides transportation
Achievements: Created a public benefit company, Atautchikun, to expand energy programs and develop opportunities to serve tribes and communities. Acquired Pinnacle Solutions, a leading provider of defense and aerospace products and services. Allocated $1.5 million to the NWABSD to fund early education programs.
Achievements: Lynden was voted the Best Cargo/Logistics provider
John Aġnaaqłuk Lincoln, Pres./CEO Kotzebue | 907-442-3301 | nana.com
48 | October 2023
and logistics solutions. They serve the entire state of Alaska and offer a full range of transportation options across all modes—air, land, and sea—so customers can optimize time and money when shipping to, from, or within Alaska. in the 2023 Best of Alaska Business awards. Alaska West Express received two Safe Fleet awards from the American Trucking Association. Lynden companies are repeat winners of Logistics Management's Quest for Quality awards.
Jim Jansen, Chairman Anchorage | 907-245-1544 | lynden.com
Alaska Business www.akbizmag.com
We are the next generation of shareholders. Each of us is unique, with gifts to share and histories to make. Our resilience will build the future our Elders imagined. We are the next generation of Bristol Bay Native Corporation shareholders.
But, we share so much more than a corporation.
Visit bbnc.net
TOP 49ERS
NO. 8 KONIAG
Koniag’s leaders and staffers from its subsidiaries traveled to Woody Island in July 2023. Dr. Sven Haakanson Jr. | Koniag
NO. 27 CAPE FOX CORPORATION
CFC held its annual shareholder picnic in July, celebrating and showing support for the community. Jake Mosholder | Cape Fox Corporation
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no.
6
Chenega Corporation
Calista Corporation
2022 Rank: 4 | 16.4% Change in Revenue Year Founded in Alaska: 1974 Employees: 7,431 Worldwide | 99 Statewide
2022 Rank: 7 | 9.1% Change in Revenue Year Founded in Alaska: 1972 Employees: 3,500 Worldwide | 830 Statewide
2022 Revenue: $1,280,000,000 2021 Revenue: $1,100,000,000 2020 Revenue: $949,000,000 2019 Revenue: $871,000,000 2018 Revenue: $830,000,000
2022 Revenue: $788,526,000 2021 Revenue: $722,630,000 2020 Revenue: $732,937,000 2019 Revenue: $573,299,000 2018 Revenue: $574,354,000
Abilities: Chenega provides expertise and support to defense, intelligence, and federal civilian customers. Through our portfolio of companies, Chenega can compete in 8(a), small business, and full and open markets.
Abilities: Calista Corporation is the parent company of 30-plus subsidiaries in the industries of defense contracting, construction, real estate, environmental services, natural resource development, marine transportation, oilfield services, and heavy equipment.
Achievements: Chenega continues to maximize our business
Achievements: The collaboration between Calista Corporation and
opportunities, support shareholders, and develop/work on infrastructure projects in our village.
Charles W. Totemoff, Pres./CEO Anchorage | 907-277-5706 | chenega.com
50 | October 2023
Alaska Communications will connect seven Kuskokwim communities with a fiber-optic cable, offering up to gigabit-speed service at affordable rates, comparable to rates in Anchorage, thanks to a federal tribal broadband grant.
Andrew Guy, Pres./CEO Anchorage | 907-275-2800 | calistacorp.com
Alaska Business www.akbizmag.com
7
no.
Chugach Alaska Corporation
8
TOP 49ERS
no.
Koniag
2022 Rank: 6 | -4.9% Change in Revenue Year Founded in Alaska: 1972 Employees: 4,500 Worldwide | 900 Statewide
2022 Rank: 14 | 50.7% Change in Revenue Year Founded in Alaska: 1972 Employees: 3,000 Worldwide | 121 Statewide
2022 Revenue: $745,000,000 2021 Revenue: $783,000,000 2020 Revenue: $919,000,000 2019 Revenue: $977,000,000 2018 Revenue: $949,000,000
2022 Revenue: $699,322,000 2021 Revenue: $464,068,000 2020 Revenue: $410,730,000 2019 Revenue: $323,878,000 2018 Revenue: $267,415,000
Abilities: Chugach has a portfolio of complementary businesses across a range of industries including government, energy, and facilities services. Chugach also manages an investment portfolio and land and natural resource development projects in the region.
Abilities: Koniag's principal lines of business include investments
Achievements: Appointed President Josie Hickel and Interim CEO
Angie Astle; named best place to work by AJOC, received Gold Pan Award from Anchorage Chamber; broke ground on Naswik multiuse facility in Valdez; announced partnership with CYBER Express car wash; renewed long-term contract with Alyeska for oil spill response services.
in government contracting, energy and water, commercial IT, real estate, and ANCSA natural resource management.
Achievements: Koniag has continued its trend of year-over-year growth. Our government contracting sector led company growth with years of consistent contract performance and customer relationships built on trust.
Ron Unger, Chairman/CEO Kodiak | 907-486-2530 | koniag.com
Sheri Buretta, Chairman of the Board Anchorage | 907-563-8866 |chugach.com
Thrive with CIRI We believe growing businesses help people flourish. At CIRI, our world-class partnerships ensure our stakeholders thrive.
Learn more at ciri.com
www.akbizmag.com
Alaska Business
October 2023 | 51
TOP 49ERS
NO. 31 THE KUSKOKWIM CORPORATION
This year TKC partnered with tribes in the region to host the Jacob Wise Memorial Spirit Camp to share traditional knowledge, as well as cultural, wellness, and youth leadership activities. Megan Leary | The Kuskokwim Corporation
NO. 2 BRISTOL BAY NATIVE CORPORATION
Bristol Bay Native Corporation shareholder and descendant youth Yup’ik dancing in Dillingham. Nick Hall
no.
9
no.
10
Ukpeaġvik Iñupiat Corporation
Afognak Native Corporation
2022 Rank: 10 | 19% Change in Revenue Year Founded in Alaska: 1973 Employees: 3,733 Worldwide | 556 Statewide
2022 Rank: 8 | -1% Change in Revenue Year Founded in Alaska: 1977 Employees: 3,149 Worldwide | 314 Statewide
2022 Revenue: $693,397,740 2021 Revenue: $582,554,430 2020 Revenue: $531,383,460 2019 Revenue: $480,055,281 2018 Revenue: $461,190,653
2022 Revenue: $650,800,000 2021 Revenue: $657,600,000 2020 Revenue: $658,753,000 2019 Revenue: $618,395,000 2018 Revenue: $643,686,000
Abilities: Diversified commercial, government services, &
Abilities: Afognak Native Corporation, Alutiiq, Afognak Commercial
Achievements: 2022 was unprecedented for UIC, with record
Achievements: On July 13, 2023, Afognak Native Corporation hosted
Dr. Pearl K. Brower, Pres./CEO Utqiaġvik | 907-852-4460 | uicalaska.com
Greg Hambright, Pres./CEO Kodiak | 907-486-6014 | afognak.com
government contracting, technical/professional services, logistics/ support services, heavy civil/vertical construction, oilfield support, architectural/engineering services, marine transportation, real estate management.
revenues, growth rate, profit, and shareholder milestones, setting UIC up for another groundbreaking year in 2023. The approval to issue Class B stock to descendants of original shareholders shows UIC's commitment to enhancing the lives of its shareholders.
52 | October 2023
Group, and their subsidiaries offer exceptional service in federal and commercial sectors, including leasing, timber, engineering, security, logistics and warehousing, facility maintenance, retail liquor stores, and oilfield services.
the 7th Annual Afognak Youth Charity Golf Tournament at the Anchorage Golf Course with celebrity guest and NFL legend Terry Bradshaw, which has raised over $400,000 to date for the Native Village of Port Lions and Native Village of Afognak.
Alaska Business www.akbizmag.com
Sivulliksravut Leading the Way
nana.com |
TOP 49ERS
NO. 39 ROGER HICKEL CONTRACTING
Roger Hickel's management team provides design, pre-construction, and construction services on civil, commercial, and industrial projects. Roger Hickel Contracting
NO. 6 CALISTA CORPORATION
NO. 10 AFOGNAK NATIVE CORPORATION
Calista Corporation shareholder Alice Andrew of Napakiak cutting king salmon.
Afognak Native Corporation headquarters.
Russ Slaten | Calista Corporation
no.
Afognak Native Corporation
11
no.
12
Global Credit Union
Bering Straits Native Corporation
2022 Rank: 12 | 11.9% Change in Revenue Year Founded in Alaska: 1948 Employees: 2,204 Worldwide | 1,155 Statewide
2022 Rank: 13 | 16% Change in Revenue Year Founded in Alaska: 1972 Employees: 2,197 Worldwide | 652 Statewide
2022 Revenue: $544,119,473 2021 Revenue: $486,106,000 2020 Revenue: 2019 Revenue: 2018 Revenue: -
2022 Revenue: $543,100,000 2021 Revenue: $468,215,000 2020 Revenue: $456,170,000 2019 Revenue: $378,843,000 2018 Revenue: $415,000,000
Abilities: Financial services for consumers and businesses, including
Abilities: Government contracting, logistics, base operations support
Achievements: After a merger with Global Credit Union, one of the largest credit unions in the Pacific Northwest, Alaska USA is the 16th largest credit union in the United States. Together we are stronger: benefiting our members, employees, and communities in 5 states plus 3 branches on US military bases in Italy.
Achievements: BSNC's in-region operations have grown in
deposits (such as savings, checking, money market, certificates, HSA, etc.), loans, investments, mortgage and real estate, and personal insurance.
Geofferey Lundfelt, Pres./CEO Anchorage | 907-563-4567 | globalCU.org
54 | October 2023
services, aircraft and airfield services, special training and security, management and consulting services, IT services, construction and renovation, and communications.
profitability in the last three years with a continued focus of achieving two goals: profitability for all our in-region activities and maximizing shareholder benefits.
Z. Daniel Graham, Interim Pres./CEO Anchorage | 907-563-3788 | beringstraits.com
Alaska Business www.akbizmag.com
ENDLESS COMMITMENT to our shareholders, our community, and our customers. © 2023 Ukpeaġvik Iñupiat Corporation PC: Amaguq Media
www.uicalaska.com (907) 852-4460
TOP 49ERS
NO. 15 GOLDBELT INCORPORATED
Goldbelt shareholder Arlene Bennett, who passed away February 2023, at Sealaka Heritage Institute's Celebration. Xaak Du Kaa Toma Kimlinger
no.
13
no.
Cook Inlet Region, Inc.
14
Sealaska
2022 Rank: 9 | -11.8% Change in Revenue Year Founded in Alaska: 1972 Employees: 2,135 Worldwide | 155 Statewide
2022 Rank: - | - Change in Revenue Year Founded in Alaska: 1972 Employees: 2,000 Worldwide | 35 Statewide
2022 Revenue: $539,777,000 2021 Revenue: $611,749,000 2020 Revenue: $477,990,000 2019 Revenue: $493,023,000 2018 Revenue: $513,881,000
2022 Revenue: $410,741,000 2021 Revenue: 2020 Revenue: $697,000,000 2019 Revenue: $699,627,363 2018 Revenue: $429,333,000
Abilities: Through earnings from a well-balanced portfolio, CIRI is
Abilities: Sealaska's businesses are divided into three focus areas:
committed to providing meaningful and sustainable benefits to CIRI shareholders, descendants, and the more than 60,000 Alaska Native and American Indian people in the CIRI region and beyond.
Achievements: CIRI-owned Fire Island Wind celebrated its tenth
anniversary of providing renewable, reliable power to more than 7,000 homes in Southcentral Alaska. Fire Island Wind represents the area's first independently-owned, utility-scale wind project and is redefining the future of energy in Cook Inlet.
Sophie Minich, Pres./CEO Anchorage | 907-274-8638 | ciri.com
56 | October 2023
natural resources and land management, environmental services, and sustainable foods.
Achievements: For several years, Sealaska has been building a
business platform that revolves around fostering healthy oceans. Now with global expertise in geotechnical services, data sciences, marine construction, sustainable seafood, and more.
Anthony Mallott, Pres./CEO Juneau | 907-586-1512 | sealaska.com
Alaska Business www.akbizmag.com
Arcticom is an Alaskan Native owned, Small Business Administration approved Small Disadvantaged Business and 8(a) certified contractor.
CELEBRATING 10 YEARS AS
COMMUNICATION SOLUTIONS AND SERVICES THAT SET THE INDUSTRY STANDARD.
From microwave design/build, emergency response dispatch, PSAP integration, remote site engineering, design and build outs, portable and mobile communications, cellular repeaters and in building amplifiers to improve cellular coverage Arcticom has you covered. Arcticom’s expertise is unmatched when working in extreme Arctic and Subarctic weather conditions. Arcticom is also your one-stop shop for equipment sales, leasing, installation and maintenance for the Last Frontier and beyond.
114 E. Potter Drive Unit C, Anchorage, AK 907.276.0023 | sales@arcticom.com |
ARCTICOM.COM
TOP 49ERS
NO.24 CHOGGIUNG LTD.
The fiscal year 2023 Choggiung, Limited board of directors, executives, and managers in Spring 2023. Orange Slice Marketing
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15
no.
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Goldbelt Incorporated
Three Bears Alaska
2022 Rank: 11 | -18.7% Change in Revenue Year Founded in Alaska: 1974 Employees: 1,850 Worldwide | 295 Statewide
2022 Rank: 17 | 19.6% Change in Revenue Year Founded in Alaska: 1980 Employees: 1,040 Worldwide | 1,040 Statewide
2022 Revenue: $404,023,096 2021 Revenue: $497,000,000 2020 Revenue: $272,866,942 2019 Revenue: $240,646,300 2018 Revenue: $228,728,336
2022 Revenue: $386,814,000 2021 Revenue: $323,438,062 2020 Revenue: $278,712,835 2019 Revenue: $237,342,665 2018 Revenue: $212,185,435
Abilities: Tourism, government contracting, cybersecurity, facility
Abilities: Retail grocery; beer, wine, and spirits; general merchandise;
management, IT consulting, transportation, security services, logistics, engineering, and construction.
Achievements: 2022 was the second-best year in Goldbelt's history;
it reflects a superb effort to fill one-time pandemic sales with $90 million in new business. 2023 and 2024 revenue will continue to increase as we reach $500 million. Tourism's return is also a bright spot, with revenue that exceeded expectations.
McHugh Pierre, Pres./CEO Juneau | 907-790-4990 | goldbelt.com
58 | October 2023
sporting goods; pharmacy; Ace hardware; and fuel.
Achievements: Now operating twenty-three stores in Alaska, from
Fairbanks to the Mat-Su Valley and from Tok to the Kenai Peninsula and Ketchikan featuring groceries; beer, wine, and spirits; general merchandise; sporting goods; pharmacy items; Ace hardware; fuel; and wholesale meat, seafood, and cheese.
David A. Weisz, Pres./CEO Wasilla | 907-357-4311 | threebearsalaska.com
Alaska Business www.akbizmag.com
TOP 49ERS
Golden Valley Electric Association, proud to power interior Alaska.
NO. 43 WATTERSON CONSTRUCTION CO. Watterson’s home office team. Watterson Construction Co.
no.
17
NO. 22 DOYON, LIMITED In the Tanacross dialect, “Tsogh” means “white spruce trees,” and Tsogh is the name of one of three areas in Doyon’s carbon forestry project.
Chugach Electric Association 2022 Rank: 15 | 1% Change in Revenue Year Founded in Alaska: 1948 Employees: 450 Worldwide | 450 Statewide
Dr. Molly Redilla | Doyon, Limited
2022 Revenue: $354,400,000 2021 Revenue: $354,500,000 2020 Revenue: $237,429,000 2019 Revenue: $212,517,000 2018 Revenue: $202,253,000 Abilities: Through superior service, safely provide reliable and
competitively priced energy.
Careers
Achievements: Chugach is pleased to see continued savings from
the acquisition of ML&P. Over the first 2.5 years, we saved more than $72 million, which leads to overall lower electric rates.
Arthur Miller, CEO Anchorage | 907-563-7494 | chugachelectric.com
Interested in joining our team? Visit www.gvea.com/careers
(907) 452-1151 www.akbizmag.com
Alaska Business
October 2023 | 59
TOP 49ERS
no.
18
no.
19
Ahtna, Inc.
Tyonek Native Corporation
2022 Rank: 16 | 0.3% Change in Revenue Year Founded in Alaska: 1972 Employees: 1,114 Worldwide | 321 Statewide
2022 Rank: 18 | 6.6% Change in Revenue Year Founded in Alaska: 1973 Employees: 1,621 Worldwide | 17 Statewide
2022 Revenue: $324,900,009 2021 Revenue: $324,071,788 2020 Revenue: $336,752,052 2019 Revenue: $261,104,398 2018 Revenue: $284,400,000
2022 Revenue: $308,787,701 2021 Revenue: $289,709,829 2020 Revenue: $254,200,000 2019 Revenue: $218,200,000 2018 Revenue: $144,600,000
Abilities: Construction, engineering, environmental, facilities
Abilities: TNC specializes in aerospace and defense manufacturing; aircraft maintenance, modification, and overhaul; cyber security training; land management of more than 200,000 acres in the Cook Inlet region; construction services; and oil and gas services support.
management, surveying, security, military training, janitorial, healthcare and medical records management, government contracting, land management, resource development, oil and gas pipeline services.
Achievements: Ahtna has launched the HOPE (Helping Our People
Excel) shareholder program with a primary goal of getting more shareholders employed and gaining work experience. Supporting education and professional development opportunities is an important aspect of the program.
Michelle Anderson, Pres. Glennallen | 907-822-3476 | ahtna.com
Achievements: In 2023, Tyonek Native Corporation celebrates its
50th Anniversary. Achievement of this milestone is made possible due to the efforts of our dedicated employees who work tirelessly to support our armed forces while maximizing shareholder value. We remain committed to this strategic focus.
Stephen Peskosky, CEO Anchorage | 907-272-0707 | tyonek.com
NO. 49 GREAT NORTHWEST, INC.
Great Northwest continues to grow amidst varying economic climates, while maintaining safe and effective work environments that meet project demands and provide added value to each finished product. Olivia Ode | Great Northwest, Inc.
NO. 3 NANA REGIONAL CORPORATION
Shannon Melton tends to the family fish camp in Buckland. NANA manages its lands to protect subsistence activities that are fundamental to its people. HagePhoto
60 | October 2023
Alaska Business www.akbizmag.com
20
no.
21
Golden Valley Electric Association
The Aleut Corporation
2022 Rank: - | - Change in Revenue Year Founded in Alaska: 1946 Employees: 276 Worldwide | 276 Statewide
2022 Rank: 21 | 18.6% Change in Revenue Year Founded in Alaska: 1972 Employees: 1,200 Worldwide | 50 Statewide
2022 Revenue: $285,583,225 2021 Revenue: 2020 Revenue: 2019 Revenue: 2018 Revenue: -
2022 Revenue: $275,000,000 2021 Revenue: $231,893,388 2020 Revenue: $277,043,248 2019 Revenue: $258,131,652 2018 Revenue: $252,293,053
Abilities: A member-owned electric cooperative serving 100,000
Abilities: Government contracting; land and resource management;
Achievements: In 2022, GVEA's board of directors adopted a strategic
Achievements: The Aleut Corporation finalized transfer of
Interior Alaska residents from Cantwell north along the Parks Highway and from Fairbanks south to Alyeska's Pump Station 9 along the Richardson Highway.
generation plan that ensures reliable electric service at fair and reasonable prices into the future, while also helping to reduce GVEA's carbon output.
John Burns, Pres./CEO Fairbanks | 907-452-1151 | gvea.com
www.akbizmag.com
technology services; operations and maintenance; training services; logistics; environmental remediation; engineering, prototyping, and manufacturing; commercial real estate; fuel and port services. ownership of thirteen of its 8(a) subsidiaries under Aleut Federal Holding Company in four business lines, which include environmental services, construction services, infrastructure, and technology services.
Skoey Vergen, Pres./CEO Anchorage | 907-561-4300 | aleutcorp.com
Alaska Business
October 2023 | 61
TOP 49ERS
no.
TOP 49ERS
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22
no.
23
Doyon, Limited
Olgoonik Corporation
2022 Rank: 19 | -6% Change in Revenue Year Founded in Alaska: 1972 Employees: 944 Worldwide | 582 Statewide
2022 Rank: 20 | 1.1% Change in Revenue Year Founded in Alaska: 1973 Employees: 1,057 Worldwide | 103 Statewide
2022 Revenue: $266,000,000 2021 Revenue: $283,000,000 2020 Revenue: $319,100,000 2019 Revenue: $322,195,000 2018 Revenue: $310,643,000
2022 Revenue: $262,500,000 2021 Revenue: $259,700,000 2020 Revenue: $241,700,000 2019 Revenue: $241,700,000 2018 Revenue: $228,500,000
Abilities: Doyon, Limited operates a diverse family of companies
Abilities: Specializing in construction, logistics and operations,
in the areas of oilfield services, utilities, construction, information technology, natural resource development, tourism, laundry, real estate, and wireless telecommunications.
Achievements: The Doyon/Aramark JV received a 'Superior' rating for
their 2022 operating season from the National Park Service. Doyon announced a new Vice President of Lands, Dr. Molly Redilla. Doyon announced the acquisition of Fairweather.
Aaron Schutt, Pres./CEO Fairbanks | 907-459-2000 | doyon.com
security, environmental and engineering, well site plugging and remediation, and commercial electrical projects.
Achievements: In our Alaska-based operations, we successfully
completed the Iko Bay well plug and abandonment project. We have also been selected to work on orphan well projects in the Lower 48, and we look forward to putting our Alaska-tested expertise to the task.
Hugh Patkotak Sr., Pres./CEO Anchorage | 907-562-8728 | olgoonik.com
NO. 45 CREDIT UNION 1
CU1 and Wasilla leaders at the groundbreaking ceremony for CU1's Wasilla Branch, opening in late 2024. Mary's Rose Video Marketing
NO. 46 GANA-A’ YOO, LIMITED
NO. 23 OLGOONIK CORPORATION
Tim Donohue
Olgoonik Corporation
Gana-A'Yoo Limited's 8(a) certified subsidiary Kaiyuh Services working on a multi-client, design-build remodel at EPA headquarters in Washington, DC.
62 | October 2023
Although Olgoonik has diversified all over the world, it continues to build capacity to lead and support remote Arctic operations in and around its home village of Wainwright.
Alaska Business www.akbizmag.com
24
no.
25
Choggiung Ltd.
Davis Constructors & Engineers
2022 Rank: 23 | 5.2% Change in Revenue Year Founded in Alaska: 1972 Employees: 425 Worldwide | 106 Statewide
2022 Rank: 29 | 41.4% Change in Revenue Year Founded in Alaska: 1976 Employees: 221 Worldwide | 221 Statewide
2022 Revenue: $191,855,472 2021 Revenue: $182,286,396 2020 Revenue: $183,200,000 2019 Revenue: $150,189,000 2018 Revenue: $95,700,000
2022 Revenue: $188,943,940 2021 Revenue: $133,579,001 2020 Revenue: $94,270,117 2019 Revenue: $101,243,501 2018 Revenue: $128,512,733
Abilities: Construction, federal contracting services, hotel and diner, apartments, commercial real estate.
Abilities: Davis Constructors & Engineers offers complete project
Achievements: The past year has been exciting at Choggiung,
Limited. We have continued growth in our various business lines, our shareholders voted to create a new class of shares for descendants, and we were awarded a $29.5 million NTIA grant to bring high-speed affordable broadband to Dillingham!
Cameron Poindexter, Pres./CEO Dillingham | 907-842-5218 | choggiung.com
management services to assist with design and construction of all types of building projects. We have completed more than $2.8 billion in Alaska projects.
Achievements: In 2007 Davis established an endowment with the AK Community Foundation fund to support our community. To date, $492,965 has been donated to Alaskan causes through the Davis Constructors & Employees Fund. The Davis committee comprises current and past Davis "10 year" employees.
Luke Blomfield, Pres. Anchorage | 907-562-2336 | davisconstructors.com
General | Commercial | Design Build | Construction Management 6591 A Street, Suite 300 | Anchorage, Alaska 99518 907.562.2336 | davisconstructors.com www.akbizmag.com
Alaska Business
October 2023 | 63
TOP 49ERS
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TOP 49ERS
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First National Bank Alaska
Cape Fox Corporation
2022 Rank: 24 | 7.9% Change in Revenue Year Founded in Alaska: 1922 Employees: 618 Worldwide | 618 Statewide
2022 Rank: 26 | 13.1% Change in Revenue Year Founded in Alaska: 1973 Employees: 1,190 Worldwide | 331 Statewide
2022 Revenue: $184,630,000 2021 Revenue: $171,091,000 2020 Revenue: $174,672,000 2019 Revenue: $175,467,000 2018 Revenue: $164,818,000
2022 Revenue: $166,479,451 2021 Revenue: $147,183,908 2020 Revenue: $123,724,000 2019 Revenue: $76,800,000 2018 Revenue: $68,500,055
Abilities: Friendly, knowledgeable Alaskans offer convenience,
service, and value with a full range of deposit, lending, and wealth management services, and online and mobile banking. With 28 locations in 19 communities and assets of more than $5.4 billion, we believe in Alaska and have since 1922.
Abilities: Cape Fox Corporation has two lines of business: tourism in Alaska with restaurants, a lodge, and retail, and government contracting with multiple subsidiaries that offer capabilities in IT, healthcare, professional and facilities services, construction, and event management and marketing.
Achievements: Alaska Business readers voted the bank the "Best of Alaska Business" in the Best Place to Work category for the eighth year in a row, Best Bank/Credit Union for the third time running, and Best Corporate Citizen for a fourth time. Our Kodiak branch celebrated 60 years of serving the local community.
Achievements: After several years of growth, CFC is investing more in our communities with philanthropy and the support of Cape Fox Cultural Foundation. In 2022, CFC debuted the Ketchikan Innovation Hub, which will develop emerging and smart technologies that provide, enhance, and strengthen native communities.
Betsy Lawer, Board Chair/CEO/Pres. Anchorage | 907-777-4362 | fnbalaska.com
NO. 11 GLOBAL CREDIT UNION
Global Credit Union organized a team to participate in the 2023 Alaska Law Enforcement Torch Run, benefiting Special Olympics Alaska athletes statewide.
Chris Luchtefeld, CEO Ketchikan | 907-225-5163 | capefoxcorp.com
NO. 44 EVERTS AIR CARGO & EVERTS AIR ALASKA
Everts Air Cargo is proudly Alaskan, based in Fairbanks. The airline employs 350 Alaskans eager to serve Alaska rural communities. Captain Jason Turner
Lauren Engelsen
64 | October 2023
Alaska Business www.akbizmag.com
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no.
29
Matanuska Electric Association
Sitnasuak Native Corporation
2022 Rank: 25 | 2.1% Change in Revenue Year Founded in Alaska: 1941 Employees: 215 Worldwide | 215 Statewide
2022 Rank: 27 | -1.1% Change in Revenue Year Founded in Alaska: 1973 Employees: 1,200 Worldwide | 104 Statewide
2022 Revenue: $160,964,943 2021 Revenue: $157,629,815 2020 Revenue: $155,401,551 2019 Revenue: $148,343,834 2018 Revenue: $148,639,243
2022 Revenue: $144,008,083 2021 Revenue: $145,579,765 2020 Revenue: $185,519,277 2019 Revenue: $172,944,639 2018 Revenue: $133,494,517
Abilities: Alaska's oldest and second largest electric cooperative,
MEA serves more than 55,600 members in communities across the entire Mat-Su Borough, Eagle River, and Chugiak with power. In 2021, MEA celebrated eighty years as a member-owned and -led electric co-op.
Achievements: MEA currently produces 16 percent of its power from
renewable energy sources and over the last decade has reduced its carbon emissions by 28 percent.
Abilities: Fuel storage and sales; residential and commercial real
estate; financial and title services; retail; tactical apparel printing and manufacturing.
Achievements: Acquisition of Bennettsville Holdings. Transfer of 11,023 acres of SNC land into SNC Trust.
Charles Fagerstrom, CEO Nome | 907-387-1200 | snc.org
Tony Izzo, CEO Palmer | 907-761-9300 | mea.coop
INVESTING IN EACH OTHER As we continue to grow and thrive in business, The Kuskokwim Corporation thoughtfully pursues opportunities that allow us to invest in our land, our people and our communities. We are proud to be recognized as one of Alaska’s Top 49 as we cut a path to a better future for TKC Shareholders and all of Alaska.
K u s k o k w i m . c o m
www.akbizmag.com
Alaska Business
October 2023 | 65
TOP 49ERS
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TOP 49ERS
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Northrim Bank
The Kuskokwim Corporation
2022 Rank: 28 | -1.8% Change in Revenue Year Founded in Alaska: 1990 Employees: 489 Worldwide | 422 Statewide
2022 Rank: 30 | 7.9% Change in Revenue Year Founded in Alaska: 1977 Employees: 405 Worldwide | 31 Statewide
2022 Revenue: $134,405,000 2021 Revenue: $136,869,000 2020 Revenue: 2019 Revenue: 2018 Revenue: -
2022 Revenue: $132,542,074 2021 Revenue: $122,795,621 2020 Revenue: $73,160,209 2019 Revenue: $78,672,271 2018 Revenue: $74,267,227 Abilities: Construction, government services, environmental services,
Abilities: Banking services, such as deposits and loans available
through our network of nineteen branches and one loan production office statewide, and through robust online and mobile banking platforms. Now offering new commercial purchase card and integrated payable products. Achievements: In 2023, Northrim opened financial centers in Kodiak and Nome and a loan production office in Homer.
Joseph Schierhorn, Chairman/CEO Anchorage | 907-562-0062 | northrim.com
lighting, aerospace, aircraft maintenance and repair, real estate, and rural retail.
Achievements: TKC is focused on equalizing access to basic services for all shareholders. From housing to water & sewer projects, broadband & the Connect TKC program providing Starlink to any shareholder household that needs affordable reliable internet, TKC is making investments in our communities and beyond.
Andrea Gusty, Pres./CEO Anchorage | 907-243-2944 | kuskokwim.com
NO. 48 CRAIG TAYLOR EQUIPMENT
Craig Taylor Equipment recently acquired Peterbilt of Alaska, adding a new product segment that allows the company to support customers building Alaska's future. Craig Taylor Equipment
NO. 16 THREE BEARS ALASKA
NO. 4 LYNDEN
Three Bears Alaska
J. Craig Thorpe
The first “off the highway” Three Bears Alaska opened in Saxman in May.
66 | October 2023
A painted scene of Utqiaġvik shows some of the unique equipment Lynden uses on the North Slope.
Alaska Business www.akbizmag.com
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Vitus Energy
TDX (Tanadgusix) Corporation
2022 Rank: 40 | 80.1% Change in Revenue Year Founded in Alaska: 2009 Employees: 180 Worldwide | 180 Statewide
2022 Rank: 22 | -38% Change in Revenue Year Founded in Alaska: 1973 Employees: 600 Worldwide | 220 Statewide
2022 Revenue: $128,779,000 2021 Revenue: $71,500,000 2020 Revenue: $58,900,000 2019 Revenue: $55,000,000 2018 Revenue: $64,000,000
2022 Revenue: $124,000,000 2021 Revenue: $200,000,000 2020 Revenue: $177,000,000 2019 Revenue: $195,000,000 2018 Revenue: $138,000,000
Abilities: Fuel and freight sales in Alaska.
Abilities: TDX Corporation is owned by and represents the business interests of more than 650 Aleut shareholders of St. Paul Island. TDX business groups are diversified serving technology, government contracting, hospitality, and the seafood industry.
Achievements: Expanded Railbelt locations.
Mark Smith, CEO Anchorage | 907-793-9700 | vitus-energy.com
Achievements: TDX Corporation is owned by and represents the
business interests of more than 600 Aleut shareholders of St. Paul Island. Incorporated with the Alaska Native Claims Settlement Act in 1971 as the Alaska Native Corporation for the Community of St. Paul.
Christopher Mandregan Jr., CEO Anchorage | 907-278-2312 | tdxcorp.com
Hard Working and Reliable The Argo Aurora 8x8 is well suited for remote job site work, providing contractors and remote workers a strong, workhorse vehicle in all sorts of terrain and conditions.
► Oil and Gas ► Mining
Remote Real Estate ◄ Government Agencies ◄
► Remote Construction
Film/Video Productions ◄
► Environmental Cleanup
Emergency Response ◄
► Remote Exploration
907-315-9936 | alaskaargorentals.com www.akbizmag.com
Alaska Business
October 2023 | 67
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NO. 14 Sealaska
NO. 40 Kikiktagruk Inupiat Corporation
Ryan Cortes | Sealaska
Kikiktagruk Inupiat Corporation
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34
no.
Cruz Construction
35
Colville
2022 Rank: 34 | 37.9% Change in Revenue Year Founded in Alaska: 1981 Employees: 250 Worldwide | 250 Statewide
2022 Rank: 35 | 54.6% Change in Revenue Year Founded in Alaska: 1981 Employees: 150 Worldwide | 150 Statewide
2022 Revenue: $123,488,417 2021 Revenue: $89,558,663 2020 Revenue: $98,823,282 2019 Revenue: $80,884,836 2018 Revenue: $137,401,439
2022 Revenue: $122,812,809 2021 Revenue: $79,442,093 2020 Revenue: $96,944,395 2019 Revenue: $117,558,062 2018 Revenue: $88,647,382
Abilities: Oil and gas operations, ice roads, snow.trails, tundra
transport, heavy haul, heavy-civil, equipment, marine transportation, camps, logistics, oilfield exploration, engineering, and consulting.
Abilities: Oil and gas industry support services and supplies, solid waste utility, aviation support services, logistics and camp operations.
Achievements: Cruz Construction enjoyed a diverse year throughout Alaska. We moved more than 5.5 million tons of material, mobilized a 3.2 million pound drill rig down the Dalton Highway, constructed hundreds of miles of ice road and sNO.trail, and barged late into the operating season.
Achievements: Milestone of 100 million gallons moved achieved this year. No spills is no accident. Reopening Brooks Camp with a full service kitchen again. Expanding our Fairbanks-based wrecker fleet for large vehicle recovery. DEF plant will be operational by end of year in Deadhorse.
Dave Cruz, Pres. Palmer | 907-746-3144 | cruzconstruct.com
68 | October 2023
Dave Pfeifer, Pres./CEO Prudhoe Bay | 907-659-3198 | colvilleinc.com
Alaska Business www.akbizmag.com
Vitus Energy Convenience stores provide service for retail consumers
Vitus Marine Bulk fuel service for Western Alaskan Communities Vitus Terminals Bulk fuel storage locations provide convenient and reliable fuel and propane delivery for industrial and residential users
907.278.6700 info@vitusmarine.com vitus-energy.com
NO. 13 Cook Inlet Region, Inc.
CIRI's Fire Island Wind Farm harnesses nature's power to energize communities. CIRI
www.akbizmag.com
Alaska Business
October 2023 | 69
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Alaskans Fueling Alaskans
TOP 49ERS
NO. 17 CHUGACH ELECTRIC ASSOCIATION
Chugach Electric Member Appreciation Day, May 2023.
Chugach Electric Association
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MTA
Construction Machinery Industrial
2022 Rank: - | -21.1% Change in Revenue Year Founded in Alaska: 1953 Employees: 338 Worldwide | 334 Statewide
2022 Rank: 31 | -6.1% Change in Revenue Year Founded in Alaska: 1985 Employees: 112 Worldwide | 112 Statewide
2022 Revenue: $108,893,000 2021 Revenue: $138,000,000 2020 Revenue: $97,200,000 2019 Revenue: $110,307,317 2018 Revenue: $108,400,000
2022 Revenue: $108,000,000 2021 Revenue: $115,000,000 2020 Revenue: $117,000,000 2019 Revenue: $102,000,000 2018 Revenue: $105,000,000
Abilities: MTA provides residential and business technology
Abilities: Distributor of construction, mining, and logging equipment in Alaska. Representative for Volvo, Hitachi, Atlas Copco, Doosan, Metso, Link-Belt, and many other manufacturers.
solutions, such as internet and cybersecurity products. MTA provides Alaska with limitless bandwidth capacity through its AlCan ONE fiber line and partners with enterprise, government, and wholesale partners on scalable networking solutions.
Achievements: MTA won ESGR Above & Beyond, Achievement in
Business, 3 NTCA eXcellence Awards, to name a few. Secured ReConnect grant to bring high-speed fiber optic services. Employees donated $35,000 to Battle Dawgs combat veteran org. Pioneering esports in Alaska to support MTA Foundation mission in communities.
Achievements: Despite dealing with lead times and logistical issues
that all of us are facing in today's world, CMI is still committed to providing best customer support.
Ken Gerondale, Pres./CEO Anchorage | 907-563-3822 | cmiak.com
Michael Burke, CEO Palmer | 907-745-3211 | mtasolutions.com
70 | October 2023
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Usibelli Coal Mine
Roger Hickel Contracting
2022 Rank: 32 | 5.4% Change in Revenue Year Founded in Alaska: 1943 Employees: 190 Worldwide | 160 Statewide
2022 Rank: 43 | 42.3% Change in Revenue Year Founded in Alaska: 1995 Employees: 70 Worldwide | 70 Statewide
2022 Revenue: $99,357,000 2021 Revenue: $94,300,000 2020 Revenue: $94,000,000 2019 Revenue: $89,000,000 2018 Revenue: $81,000,000
2022 Revenue: $98,490,509 2021 Revenue: $69,204,276 2020 Revenue: $55,312,489 2019 Revenue: $37,248,153 2018 Revenue: $56,254,997
Abilities: Currently the only operational coal mine in Alaska, UCM is supported by the most modern mining equipment and state-of-theart engineering. Today, UCM supplies affordable, reliable, and ultralow sulfur coal to the five power plants located in Interior Alaska.
Abilities: General contractor of civil, industrial, and commercial projects throughout the state of Alaska.
Achievements: The coal mine remains family-owned and operated
and, in 2023, is celebrating its 80th year of operation. The coal mine continues to emphasize a culture of safety among its workforce. Employees recently achieved a new second-place safety record and are working toward a new all-time safety milestone.
Achievements: This year Roger Hickel Contracting celebrated its 28th year in business and will remain 100 percent Alaskan owned. We are excited to be a part of the construction industry in Alaska.
Sean Hickel, Pres. Anchorage | 907-279-1400 | rogerhickelcontracting.com
Joseph E. Usibelli Jr., Pres./CEO Fairbanks | 907-452-2625 | usibelli.com
Building Alaska for over 40 years
• Heavy Civil • Oil Field • Marine Transportation • Camps
PALMER: 907.746.3144 | DEADHORSE: 907.670.2506 | KENAI: 907.283.1085 | ONLINE AT CRUZCONSTRUCT.COM www.akbizmag.com
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TOP 49ERS
NO. 12 BERING STRAITS NATIVE CORPORATION
This spring, BSNC board members toured the offices of Central Environmental, Inc., an integrated company specializing in general construction, demolition, utilities, and environmental services. Bering Straits Native Corporation
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no.
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Kikiktagruk Inupiat Corporation
Udelhoven Oilfield System Services
2022 Rank: 36 | 6.1% Change in Revenue Year Founded in Alaska: 1973 Employees: 235 Worldwide | 24 Statewide
2022 Rank: 48 | 57.7% Change in Revenue Year Founded in Alaska: 1970 Employees: 296 Worldwide | 211 Statewide
2022 Revenue: $84,173,000 2021 Revenue: $79,307,587 2020 Revenue: $82,858,722 2019 Revenue: $68,161,437 2018 Revenue: :-
2022 Revenue: $82,917,932 2021 Revenue: $52,581,004 2020 Revenue: $56,994,250 2019 Revenue: $77,233,520 2018 Revenue: $60,694,110
Abilities: Scientific/professional services support contracts, commercial and residential rental properties, retail sales portfolio,government BOS/JOC/SABER/IDIQ contracts, design-build, heavy civil, and development construction contracts.
Abilities: Mechanical and electrical inspection, functional check-
Achievements: Continued growth in the scientific/professional
James Udelhoven, CEO Anchorage | 907-344-1577 | udelhoven.com
services sector with FDA and National Institute of Health Sciences. New awards of SABER IDIQ contracts with the DOD. BOS contract with NAVFAC in Florida.
out, quality assurance/quality control, plumbing, welding, modular fabrication, industrial and commercial construction.
Achievements: -
Thomas Kennedy, Pres./CEO Kotzebue | 907-277-7884 | kikiktagruk.com
72 | October 2023
Alaska Business www.akbizmag.com
Proven Technology to Support Alaska Before there was the pipeline, before there was a 49th star on the US Flag, MTA was investing in our communities. Today is no different. We support and partner with Alaska’s Top 49ers through new technology that increases efficiency and lowers cost.
mtasolutions.com
TOP 49ERS
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no.
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Anchorage Chrysler Dodge Center
Watterson Construction Co.
2022 Rank: 33 | -8.4% Change in Revenue Year Founded in Alaska: 1963 Employees: 100 Worldwide | 100 Statewide
2022 Rank: - | 59.6% Change in Revenue Year Founded in Alaska: 1981 Employees: 94 Worldwide | 94 Statewide
2022 Revenue: $82,460,000 2021 Revenue: $90,038,000 2020 Revenue: $84,416,000 2019 Revenue: $82,472,439 2018 Revenue: $77,738,867
2022 Revenue: $81,400,000 2021 Revenue: $51,000,000 2020 Revenue: $84,600,000 2019 Revenue: $115,300,000 2018 Revenue: $85,500,000
Abilities: Chrysler, Jeep, and Dodge new and used vehicle sales and service. Your hometown dealer for forty-seven years.
Abilities: Watterson Construction Co. is a general contractor specializing in alternate delivery of commercial, medical, aviation, civic, education, warehouse, government, and military sectors. Services include design/build, CM/GC, CM@Risk, and design/bid/ build.
Achievements: -
Corey Meyers, Pres. Anchorage | 907-276-1331
Achievements: For the second year in a row, Watterson Construction
Co. has been voted the Denali winner in the General Contractor category in Alaska Business' 2023 Best of Alaska Business Awards. We are truly honored by the support of our community.
Jim Watterson, Pres. Anchorage | 907-563-7441 | wattersonconstruction.com
Roger Hickel Contracting, Inc. provides excellence throughout the State of Alaska in design, pre-construction, and construction services. The Chugachmiut Regional Health Center in Seward, Alaska is one of our many projects.
For a complete listing and more information visit our website www.rogerhickelcontracting.com
Ph.907-279-1400 | Fax 907-279-1405 contact@rhcak.com 11001 Calaska Circle | Anchorage, Alaska 99515
74 | October 2023
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Everts Air Cargo & Everts Air Alaska 2022 Rank: 38 | 7.6% Change in Revenue Year Founded in Alaska: 1978 Employees: 366 Worldwide | 346 Statewide NO. 5 CHENEGA CORPORATION
2022 Revenue: $80,700,000 2021 Revenue: $75,000,000 2020 Revenue: $71,700,000 2019 Revenue: $59,190,000 2018 Revenue: $67,700,000
Chenega shareholders gathered at the original Chenega village to remember those lost in the 1964 tsunami. Chenega Corporation
Abilities: Everts Air Cargo provides scheduled and charter air freight
services in Alaska and on-demand charter services throughout North, Central, and South America, including the Caribbean. Everts Air Alaska, based in Fairbanks, provides passenger, freight, and charter service using PC12s and Caravans.
Achievements: In 2022, Everts Air committed to an additional MD-
80 freighter conversion (which will bring the MD-80 fleet to a total of seven) and began planning for the arrival of the Sky Courier passenger/freighter aircraft, which will provide service to smaller, rural markets in Alaska.
Robert Everts, CEO/Owner Fairbanks | 907-450-2300 | evertsair.com
www.akbizmag.com
NO. 20 GOLDEN VALLEY ELECTRIC ASSOCIATION
Golden Valley Electric Association’s 280 employees serve more than 100,000 members in Interior Alaska. Grace Wilson | Golden Valley Electric Association
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Credit Union 1 2022 Rank: 42 | 9.9% Change in Revenue Year Founded in Alaska: 1952 Employees: 398 Worldwide | 352 Statewide NO. 26 FIRST NATIONAL BANK ALASKA
Alaska Business readers voted FNBA the Best Place to Work for an eighth year in a row. First National Bank Alaska
2022 Revenue: $77,760,445 2021 Revenue: $70,736,844 2020 Revenue: $65,289,354 2019 Revenue: $69,394,584 2018 Revenue: $66,501,606 Abilities: Credit Union 1 is a full-service financial institution known
for its affordable, personalized loans, community outreach, and cutting edge money management tools. We value accessible, "people first" lending as one of our most vital community services.
NO. 30 NORTHRIM BANK
Now with nineteen branches, Northrim Bank opened new locations in Homer, Kodiak, and Nome in 2023. Chris Arend Photography
Achievements: As the only Alaska-chartered credit union in the state, we're dedicated to Alaska and we're proud to help grow the communities we call home. We recently announced our expansion to the Mat-Su Valley, and we look forward to introducing our Wasilla Branch in late 2024.
Mark Burgess, Pres./CEO Anchorage | 907-339-9485 | cu1.org
Spend Small, Drive Big! 11 Awesome Acres on E. 5th!
accak.com 76 | October 2023
Across from Merrill Field Alaska Business www.akbizmag.com
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Gana-A'Yoo, Limited
Huna Totem Corporation
2022 Rank: 39 | -2.7% Change in Revenue Year Founded in Alaska: 1978 Employees: 325 Worldwide | 26 Statewide
2022 Rank: - | 97.9% Change in Revenue Year Founded in Alaska: 1973 Employees: 399 Worldwide | 300 Statewide
2022 Revenue: $72,056,260 2021 Revenue: $74,041,908 2020 Revenue: $81,976,088 2019 Revenue: $61,914,317 2018 Revenue: $30,669,022
2022 Revenue: $70,506,878 2021 Revenue: $35,629,092 2020 Revenue: $14,095,688 2019 Revenue: $26,050,315 2018 Revenue: $14,656,333
Abilities: Gana-A'Yoo and our family of companies continues to grow to meet both our clients and shareholders needs alike. We provide services in the areas of construction, IT, logistics, demolition, janitorial, camp services, manufacturing, professional services, O&M, and waste remediation.
Abilities: Tourism and government contracting.
Achievements: Gana-A'Yoo and our family of companies had our
Achievements: Continued expansion at Icy Strait Point. Developing
new world-class ports in Juneau and Whittier. Continued partnership with Doyon, Limited through joint venture Na-Dena'. Growing federal contracting arm, HunaTek Holding.
Russell Dick, Pres./CEO Juneau | 907-789-8500 | hunatotem.com
3rd highest revenue posted in the history of the company. We also landed our largest competitively awarded contract at Wright Patterson Air Force Base—a SABER program worth $127,000,000 over five years.
Dena Sommer-Pedebone, CEO Anchorage | 907-569-9599 | ganaayoo.com
Building Community Since 1981 2023
p: 907.563.7441 e: info@wccak.com Photo Credit:© Ken Graham Photography .com
www.akbizmag.com
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October 2023 | 77
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TOP 49ERS
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Craig Taylor Equipment 2022 Rank: 47 | 21.5% Change in Revenue Year Founded in Alaska: 1954 Employees: 115 Worldwide | 115 Statewide 2022 Revenue: $68,146,916 2021 Revenue: $56,109,877 2020 Revenue: 2019 Revenue: 2018 Revenue: Abilities: Craig Taylor Equipment is a full service dealership for
John Deere, Peterbilt, Bobcat, Doosan, Dynapac, and many other manufacturers. Providing equipment sales, parts, service, and rental for the industries that are building Alaska's future.
Achievements: In January of 2021, CTE acquired Peterbilt of Alaska
now 100 percent locally owned and operated, allowing it to focus on providing solutions to the unique challenges that Alaska presents.
Chris Devine, Pres./CEO Anchorage | 907-276-5050 | craigtaylorequipment.com
H U N A TOTEM
CO R P O R AT IO N
2023
Building a Sustainable
for Alaska
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NO. 34 CRUZ CONSTRUCTION
Atqasuk, located 60 miles south of Utqiaġvik, is solely dependent on aviation and winter snow trails for transportation. Cruz rehabilitated the village airport by barging material to Utqiaġvik and hauling the rock inland on a 60-mile snow trail.
Great Northwest
Michael Connelly
2022 Rank: - | 50.1% Change in Revenue Year Founded in Alaska: 1976 Employees: 190 Worldwide | 190 Statewide 2022 Revenue: $62,275,000 2021 Revenue: $41,500,000 2020 Revenue: $61,400,000 2019 Revenue: $38,000,000 2018 Revenue: $58,000,000 Abilities: Heavy highway civil construction. Achievements: Great Northwest maintains safe and efficient
operations and continues to successfully navigate the varying economic climates.
John Minder, CEO/Pres. Fairbanks | 907-452-5617 | grtnw.com
Safe and responsible construction services in Alaska for over 40 years • Road construction • Site reclamation • Airport construction • Underground utilities • Site development • Erosion protection • Riverbank restoration
2975 Van Horn Road, Fairbanks (907) 452-5617 • (800) 440-8924
www.grtnw.com Locally Owned & Operated www.akbizmag.com
Alaska Business
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Value Beyond Profitability
T
How Top 49ers measure success he Top 49ers are Alaska’s largest local companies, as ranked by gross revenue. To qualify for the ranks, a company must have been founded in Alaska and
remain headquartered here, and it cannot have a parent company that does not meet those requirements. Annually, Alaska Business surveys these companies, and with the information they submit, we create the Top 49ers list. The Top 49ers are economic drivers and community builders, which is possible through their success in their various sectors and industries. What is success, though? Certainly, generating revenue is one measurement of success, but it’s not the only one. In the 2023 data gathering process, we asked the Top 49ers in what ways—other than making money—they measure success. Below are their answers, lightly proofed for house style and length.
Watterson Construction Co.
Watterson sees long-term relationships as an indicator of success. Having low employee turnover, repeat customers, and happy vendors lets us know we are on the right path.
Happy customers.
Vitus Energy
Usibelli Coal Mine
Usibelli Coal Mine is proud to be Interior Alaska's energy generation backbone, providing the region with the lowestcost source of energy. Coal provides stable consumer prices relative to heating oil, naphtha, or natural gas. Given coal's price advantage, the absence of coal from the Interior's energy profile would increase costs by more than $300 million, a cost which would likely be passed on to consumers and ratepayers. We are proud to be an economic driver for Interior Alaska.
Three Bears Alaska
Three Bears Alaska is committed to being a good steward in the communities where we live and work. We support numerous events to give back to and support Alaska communities, including Iron Dog 2023, Kenai River Festival, 1st Annual Three Bears Outdoor Sportsman Show at the Birchwood Recreation and Shooting Park, Willow 300 sled dog race (main sponsor), Knik 150 sled dog race, and Redington sled dog race—just to name a few!
The Kuskokwim Corporation
The Kuskokwim Corporation (TKC) measures success by the good we do for TKC shareholders and the people of the Middle Kuskokwim Region. Our business success in the Lower 80 | October 2023
48 has allowed us the opportunity to invest in projects that directly benefit our shareholders here at home. Not only did TKC distribute a record three dividends to shareholders in 2022 but we also work to steward our homeland with housing, workforce development, cost of living, and energy projects in the Middle Kuskokwim.
Sealaska
We measure success by the impact of our revenues turning into shareholder benefits and opportunities. Helping to create thriving, self-sustaining communities is our ultimate measure of success, and we are guided by our ancestral values in creating generational wealth for years to come.
Olgoonik Corporation
Olgoonik has consistently delivered benefits in the form of dividends, scholarships, and cultural support to our Alaska Native shareholders since 2009. This past year we welcomed a new generation of shareholders to our rolls with more Class B shares.
NANA Regional Corporation
“With the resources earned by our hardworking employees and subsidiary companies, we strive to achieve NANA's mission of promoting healthy communities and improving the quality of life for our shareholders,” says President and CEO John Lincoln. NANA's mission is to improve the quality of life for our people by maximizing economic growth, protecting and enhancing our lands, and promoting healthy communities with decisions, actions, and behaviors inspired by our Iñupiat Iḷitqusiat values. NANA shareholders have access to social programs that promote community development and provide support for education, healthcare, and elder assistance. Additionally, NANA invests in economic development and sustainability initiatives that create jobs and lower the cost of living in the region, which in turn strengthens the social fabric of our communities.
Koniag
As a "forever" corporation, Koniag must be future focused on a scale that is unparalleled in the for-profit business world. This means that our corporation is focused not only on financial growth but also on the growth of our Alutiiq shareholders and descendants and the communities across the Kodiak region. We are making investments in our future generations. One of the key ways we are doing that is through the Koniag Education Foundation. Since inception, it has awarded more than $6 million in scholarships to college and vocational students. Koniag also offers scholarships to children aged 3 through twelfth grade so they can attend athletic, scholastic, and cultural programs. Additionally, we offer internships and apprenticeships in a variety of areas in which we do business. For our elders,
Alaska Business www.akbizmag.com
TOP 49ERS
we are proud to provide extra financial support and subsistence packages. Through our burial assistance program, we support shareholder families during one of the most difficult times in their lives. Donations and collaboration with nonprofits in our region and beyond help to ensure that our in-region communities thrive. As we navigate our sixth decade, Koniag's focus remains on investing in and supporting our shareholders through the seasons to come.
Kikiktagruk Inupiat Corporation
Most importantly, under the leadership of the Board of Directors, Kikiktagruk Inupiat Corporation d e c l a re d a n d d i s t r i b u t e d a re c o rd dividend to shareholders and record shareholder employment/wages/benefits.
Huna Totem Corporation
We are an economic driver in local communities, supporting e d u c a t i o n , c u l t u ra l i n i t i a t i v e s , a n d shareholder development.
Goldbelt, Incorporated
Goldbelt's mission is to build bright futures for shareholders, and in 2022 benefits grew with an increased fall distribution of $8 per share and a special $100 benefit. Goldbelt also contributed $10.2 million to the Ancestral Trust to create a sustainable distribution separate from business operations.
RESET. REGROUP. RECONNECT.
First National Bank Alaska
One very tangible measure of success is the longevity of our employees' time at First National. It's not unusual to have employee anniversaries of twenty, twenty-five, or thirty years each month; sometimes even forty years. The average tenure of a First National team member is twelve years. This continuity helps us provide consistent, superior customer service to our fellow Alaskans. We believe success can be measured in the ability of a business to support the communities it serves. For more than a century, First National has been a strong supporter of cities, towns, and villages across the Great Land. In 2022, the bank's community investments and contributions during our centennial year reached nearly $6 million, which included charitable gifts, activity and community sponsorships, and community investments supporting lowwww.akbizmag.com
Our new Summit Suite is the finest room in Fairbanks, and impressive for VIP experiences or corporate retreats. 800-528-4916 www.FountainheadHotels.com
Take a Tour!
Locally-owned and operated in Fairbanks, Alaska Alaska Business
October 2023 | 81
TOP 49ERS
income affordable housing. This support of Alaska communities is part of our mission statement and a basic philosophy—when our friends and neighbors in the communities we serve succeed, so do we.
Everts Air Cargo | Everts Air Alaska
Among other evaluations, Everts Air measures success based on our recruitment, development, and retention of great employees, along with the feedback received from new and loyal customers alike, whose organizations we have supported and positively impacted.
Cook Inlet Region, Inc.
The mission of Cook Inlet Region, Inc. (CIRI) is to promote the economic and social well-being and Alaska Native heritage of our shareholders, now and into the future, through prudent stewardship of the company's resources, while furthering selfsufficiency among CIRI shareholders and their families. While financial growth is one measurement of success, CIRI fulfills its mission through positive impacts to CIRI shareholders, descendants, and their families, while providing meaningful programs and cultural connections to our stakeholders. CIRI was proud to host the company's first in-person shareholder and descendant information meetings and Annual Meeting in three years and continues to grow shareholder and descendant programming like mentorship, internship, and other programs intended to connect CIRI stakeholders with their Alaska Native culture and their company. CIRI continues to work closely with the company's tribally designated organizations and affiliated nonprofit organizations to make a difference in the lives of CIRI shareholders, descendants, and more than 60,000 Alaska Native and American Indian people who call the CIRI region home.
Chugach Alaska Corporation
Beyond financials, Chugach measures success through 1) Shareholder impact: Chugach was voted for best COVID response in 2022 by Alaska Business readers, largely due to our shareholder response, to include $24 million allocated to our community to address COVID-19 related impacts. In 2023 we broke ground on a multi-use facility, Chugach Naswik, intended to support shareholder and Alaska Native hire in Valdez. We also began the Chugach Native Professionals group and a Shareholder Advisory Committee to engage our future leaders. 2) Employee engagement: we pride ourselves on living our core behaviors (build community, do things the right way, empower people, and create meaningful value). During 2022/2023, Chugach was named best place to work by AJOC, received the Gold Pan Award from the Anchorage Chamber, and was voted best place to work by our employees in the Best of Alaska Business awards published by Alaska Business. 3) Community involvement: Chugach launched a twelve months of giving program, an employee volunteer program, and participated in a number of community activities. Team Chugach raised $24,000 and had the most participants for the AK Run for Women and raised more than $80,000 towards the Covenant House Sleep-Out.
Cape Fox Corporation
We measure success through our long-term commitment to our shareholders and our customers and their noted 82 | October 2023
satisfaction. We also measure it by the legacy of our company that extends to strengthening our communities, honoring our culture, preserving our past, and looking to the future through innovation.
Bristol Bay Native Corporation
In addition to financial growth, Bristol Bay Native Corporation also measures success by growth of shareholder distribution payments; shareholder workforce readiness and leadership initiatives; responsible development and protection of our lands, fisheries, and resources; growth of economic opportunities in Bristol Bay; advancing social, cultural, and community initiatives; employee retention and diversity; ethical and legal compliance; and brand recognition and perception.
Arctic Slope Regional Corporation
Arctic Slope Regional Corporation (ASRC) is proud to be in a position to provide significant benefits that include meaningful annual dividends: since 1974, ASRC has issued more than $1 billion in dividends to our Iñupiaq shareholders. ASRC is also an invaluable source of economic support to a variety of charitable organizations. Between 2001 and 2022, ASRC donated $100 million to nonprofit organizations that support our shareholders and the broader Alaska community. True to our Iñupiaq values of sharing, family, and relationships, contributing to the community is not just a box we check. It is who we are. ASRC's charitable giving is strengthened by our significant contributions directly to the Alaska Native community through the revenue sharing requirements under the federal law that created ASRC. Our aggregate 7(i) payments exceed $1.6 billion to the over 200 Alaska Native corporations across the entire state. ASRC's economic impact is made possible by the hard work and dedication of our nearly 15,000 employees nationwide, who are part of our Iñupiaq extended family. Therefore, ASRC is committed to attracting and retaining top talent through competitive compensation and a variety of employee benefits that include training and development opportunities throughout all stages of our employees' careers within our family of companies.
Ahtna, Inc.
As an Alaska Native corporation, Ahtna approaches profitability as a way to support the provision of vital shareholder services and programs aimed at preserving our cultural identity, developing our resources, protecting our land, and enhancing the lives of our people.
Afognak Native Corporation
Other key measures of success are the strength of our workforce and positive community impact. While the pandemic changed the nature of work in many ways, we continue to invest in ensuring our workforce feels valued and engaged in our collective mission, as we can achieve nothing without the commitment of our people. Many of those who work with us stay because of how our work benefits Afognak Alutiiq people and other communities where we operate. We were designed to be a different type of corporation—one that invests in longterm community sustainability—and our success is evidenced through championing our people, places, and cultures in perpetuity.
Alaska Business www.akbizmag.com
Laura Senior Environmental Coordinator, Air Quality
More than oil We’re building the next generation of Alaska’s workforce through investments in educational programs and vocational training. By creating thousands of good jobs right here at home, ConocoPhillips Alaska is more than oil. alaska.conocophillips.com © ConocoPhillips Company. 2023. All rights reserved. © ConocoPhillips Company. 2023. All rights reserved.
ARG Industrial stretches toward the ranks of Top 49ers By Amy Newman
ARG Indus trial
TOP 49ERS
Outgrowing E ‘Alaska’
very fall, Alaska Business releases its list of Top 49ers, and every year readers are left wondering—which companies just missed making it onto the list, and by how much? One up-and-comer is ARG Industrial, still waiting to crack the ranks for the first time in its 43-year history. In any other recent year, ARG Industrial’s reported gross revenues of $54 million would have been enough to catapult it onto the list; last year, that revenue would have been enough for number 47. But this year, with the bottom revenue set at $62.3 million, ARG missed the ranks. Barely. President and CEO Mike Mortensen believes the day is coming.
84 | October 2023
Alaska Business www.akbizmag.com
Alaska Roots, Northwest Expansion
“ We f o c u s p r i m a r i l y o n t h e f l u i d conveyance and lifting and rigging space,” Mortensen says. “We sell hose and fittings and all the related industrial products around that, wire rope chain and synthetic slings for lifting and rigging, and we get into a lot of other areas.” Headquartered in Anchorage, ARG Industrial’s 190 employees at twelve locations throughout Alaska and the Pacific Northwest serve the oil and gas, mining, construction, agriculture, and food processing markets. It is positioned as one of the largest regional distributors in the industry and is considered a leader in its vertical for distribution. ARG Industrial opened in 1980 as Alaska Rubber & Supply and operated out of a single storefront in Anchorage. Changes to the company’s operations and footprint began in 2006 when the original owners decided to sell. “Several of us that were there at that point purchased the business from the owner and formed an ESOP [employee stock ownership plan],” says Mortensen, who started with the company almost thirty years ago as a delivery driver before being named president and CEO in 2021. “It satisfied a desire for many of us to have a stake in the business but also set up a situation for succession management.” From there, the company began its slow, steady expansion throughout Alaska and the Pacific Northwest. In 2009 it doubled its Alaska footprint when it opened a second storefront in Wasilla and acquired Alaska Rubber and Rigging in Fairbanks. That acquisition led the company to change its name to Alaska Rubber & Rigging Supply. In 2014 it opened a fourth Alaska location in Kenai, www.akbizmag.com
“The ‘ARG’ is still Alaska Rubber Group,
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rubber.” Mike Mortensen President and CEO, ARG Industrial
and in 2020 it acquired Arctic Wire Rope & Supply in Anchorage. In 2013 the company broke into the Pacific Northwest with the purchase of five Washington-based companies. That was followed by the acquisition of Pacific Hose & Fitting in Oregon in 2021 and Industrial Supply Inc. in Bellingham, Washington in 2022, making a total of twelve locations in Alaska, Washington, and Oregon. The up-sized company also downsized its name, with Alaska Rubber Group rebranding earlier this year, adopting the “ARG Industrial” moniker to encompass its broader scope.
Multi-faceted Growth
The expansions and acquisitions tell only part of the story when it comes to ARG Industrial’s rise. “Obviously, every time we’ve done an acquisition, that comes with revenue expansion,” Mortensen says. “But we’ve also done really good at becoming the supplier of choice with the products that we sell in the markets that we serve.” A business-to-business e-commerce platform that ARG Industrial launched in 2021 helped by extending the company ’s reach beyond its physical locations and increasing its visibility to potential customers. “People who know us from our former trade name Alaska Rubber think we just Alaska Business
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October 2023 | 85
TOP 49ERS
“As we continue to grow, we hope to occupy that space someday,” he says. “We’re looking forward to officially making the Top 49 list someday soon.” After four decades in business, what’s brought ARG Industrial to the precipice of breaking into the rankings? According to Mortenson, it’s a mix of strategic expansions and acquisitions, the debut of an e-commerce platform that showcases an extensive line of products, and a company culture focused on customer service.
TOP 49ERS Rope, chain, wire, hose: if it ’s long, thin, and rolled on a spool, ARG Indus trial not only sells it but tes t s it s tensile s trength to ensure that the produc t does the job under it s heavies t load. Car ter Damaska | Alaska Business
“When our customers deal with members of our company, they’re talking to an owner. We like to think that shows employeeowners go above and beyond in serving the company.” Mike Mortensen President and CEO ARG Industrial
86 | October 2023
sell tires or something,” Mortensen says. “That’s one of the great things about our website. It really gives people an understanding of the depth and breadth of the products and the services that we offer. And we don’t just sell to contractors. People can walk in without an account and do business with us.” Mortensen believes the company ’s corporate culture and its switch to a 100 percent employee-owned ESOP plays a pivotal role in its success as well. “It’s not just about the product that we sell but what we’re willing to do for the customer to help them solve their problems,” he says. “When our customers deal with members of our company, they’re talking to an owner. We like to think that shows employeeowners go above and beyond in serving the company.”
New Name, Same Values
With more than half of its stores located outside of Alaska, and its product and service lines heavily expanded, the rebranding to ARG Industrial symbolizes growth beyond rubber—
and beyond Alaska. The company ’s Outside acquisitions were operating as subsidiaries, but the rebranding, Mortensen says, brings them under the same banner. “ We decided that our plans were no longer just about Alaska or just about rubber, so we rebranded to ARG Industrial,” he says, a process that is 75 percent complete. “The ‘ARG’ is still Alaska Rubber Group, but it also tells a different story. When we’re in Washington or Oregon or Montana or wherever we go, it’s not just Alaska, it’s not just rubber.” Mortensen says the company is open to further expansion and acquisitions where it makes sense. But no matter how far Outside ARG Industrial’s reach may extend, it will remain true to its Alaska origins. “Alaska is where our corporate offices are. It’s where more than half of our executives are based,” he says. “We’re Alaskans at heart. Even if it’s not directly in our name right now anymore, the ‘A’ is Alaska. We’re all super proud of that history and that heritage, and we don’t have any plans for that ever changing.”
Alaska Business www.akbizmag.com
TOP 49ERS
Keys to Customer Service Advice for keeping clients happy By Alexandra Kay
B
usiness revenue comes from customers, clients, and consumers, so without serving those customers, rev e n u e c a n d r y u p . G re a t c u s t o m e r service, in addition to driving a company’s bottom line, has a number of other benefits, such as when satisfied clients s h a re t h e i r ex p e r i e n c e s w i t h o t h e r s , boosting the potential for repeat business. Alaska’s Top 49ers clearly know how to make sure clients, customers, and consumers want to come back again and again. Though operating in different areas, experts have much the same advice on how to make for a great customer service experience.
88 | October 2023
Alaska Business www.akbizmag.com
Put the Client’s Needs First
G
“It’s a team effort and we all contribute. You can never underestimate how far a smile and eagerness to assist goes.” Susan Hoshaw, Assistant General Manager, Everts Air Cargo
B I G OR SMALL
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Seek and Implement Customer Feedback
If an issue does occur, it’s not always a financial solution that a customer is looking for. Professionalism and acknowledgement are also key to getting through any situation, as is addressing any issues promptly. “Some time ago, a cherished client gently pointed out that they were hoping for a swifter response time in our staffing process. Back then, eager to highlight our thoroughness, we focused on explaining our comprehensive vetting procedure, perhaps missing an o p p o r t u n i t y t o truly hear their underlying needs,” says Mitchell. “Today, having matured in our approach, I would first deeply listen to and acknowledge their perspective. I would seek to understand their specific requirements and timelines better and collaboratively explore how we might align our efforts m o re c l o s e l y w i t h their expectations. This experience www.akbizmag.com
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October 2023 | 89
TOP 49ERS
The heart of good customer service is giving value for the product or service. “That’s super important to everyone in the organization,” says Susan Hoshaw, assistant general manager at Everts Air Cargo. “It’s a team effort and we all contribute. You can never underestimate h ow f a r a s m i l e a n d e a g e r n e s s t o assist goes.” Delivering on what ’s promised is also incredibly important, says Harold Mitchell, chief operating officer for Cape Fox Federal Contracting Group. He recounts his very first contract with Eagle Health (at the time, a newly formed business arm of Cape Fox, the village corporation for Saxman, near Ketchikan). “Someone took a chance on utilizing our services, and we delivered on everything I had promised,” Mitchell says. “We’re a service-based business, and we put our name on the line. Every contract has a statement of work that outlines what we’re supposed to do and how, and we do that.” “One of the biggest things to remember is your customer has a needs base, and as a contractor we are the lowest responsive, responsible bidder, so you still have to engage your customer,” s a y s D a v e C r u z , p re s i d e n t o f C r u z Construction. “You still have to treat them like your most important customer even though you won the bid.”
TOP 49ERS
“Basically, if you’re not getting invited back to the game, that’s probably the biggest deal right there… It means either your performance wasn’t good or something didn’t work for the client.” Dave Cruz President Cruz Construction
underscored the importance of seeing every piece of feedback not as a critique but as a bridge to deeper understanding and partnership.” “We’ve been doing this for a long time, and there are probably dozens of things I would have handled better over the years! However, I’d say the root of most of them involve damaged freight,” says Hoshaw. “It’s an awful feeling every time, regardless of what might’ve happened or who was at fault. Since the safety of our crew, the aircraft, and the freight are always at the forefront of everything we do, we make sure we review those incidents thoroughly. Once we determine what went wrong, we do everything we can to make sure it doesn’t happen again. (I’m also very grateful we don’t have to make those calls very often!)” “One of the things is, if it ’s a construction project, the owner has probably spent a lot of money with an engineering firm to come up with a design and budgets, and as a contractor don’t try to reengineer the job,” says Cruz. “There’s a reason things were laid out as they were, and there are permitting issues, so you can’t come in and change t h i n g s b e c a u s e i t c re a t e s a l o t o f confusion rather than building to specs. If there’s a problem with that, then you take it to the owner.”
Be Respectful, Available, and Open
“If you have an ongoing project, the owner has a reputation there, and there should be constant communication between both parties,” says Cruz. “One of the most important things in today’s world is to get it in writing. A lot of the time we tend to over-email because both you and the owner have to document what’s happening.” He notes that, during a job, constant and immediate feedback would also lead to immediate implementation of any changes. Mitchell agrees. One of the best practices for great customer feedback is constant communication, he says. “They shouldn’t have to come to me when there’s an issue. I should have regular meetings with them, so they should know, well, I’m going to meet with Harold on Monday, and I’ll tell him then.” It’s also about availability, he notes. “Being available 24/7 is a cliché because no one is really calling you at 10 p.m., but 90 | October 2023
when they do call, I get back to them right away.” “We’ve tried a few different methods over the years, but my favorite is picking up the phone and simply asking the question, ‘How’d it go?’” says Hoshaw. “We learn so much by having conversations with our customers, and it really does influence the decisions we make on a daily basis.”
Always Look for Ways to Improve
“Basically, if you’re not getting invited back to the game, that’s probably the biggest deal right there,” says Cruz. “It means either your performance wasn’t good or something didn’t work for the client, so we’re not going to have you. It means you need to improve.” Mitchell concurs that retention rates are a key indicator of the need for improvement. “Any noticeable drop or lack of growth prompts us to take a closer look at our processes and interactions. Then there is the feedback we receive,” he says. “If we constantly hear similar comments about a specific area, it is evident that there is room for enhancement… And we cannot overlook the invaluable perspectives of our employees. Being directly engaged with clients, they often possess the m o s t u n f i l t e re d u n d e r s t a n d i n g o f client sentiments. By weaving together t h e s e d i v e r s e i n s i g h t s , w e e n s u re that our approach remains dynamic, always striving for excellence in the staffing arena.” “Outside of the feedback we receive from our customers, we have a variety of internal auditing processes,” says Hoshaw. “If we start seeing that mistakes or discrepancies are popping up more frequently, or other areas that could be improved, we determine if we need to review our training or revamp the process altogether. It can take a lot of work, but it’s important. At the end of the day, we know our customers have other options but choose to work with us, and we take great pride in that.”
Alaska Business www.akbizmag.com
You bring out the best in us. Thank you for voting Providence Alaska Medical Center the Best of Alaska hospital. We are committed to ensuring Alaskans receive the best care close to home. We’ve also once again been recognized as a top health care provider by U.S. News & World Report. Providence Alaska Medical Center has been named 2023-2024 Best Regional Hospital in Anchorage and High Performing in seven procedures and conditions. Thanks to the great work of all our caregivers, providers and community partners, enabling us to serve our community with award-winning care. Learn more at Providence.org/PAMCawards.
TOP 49ERS
Everyone Goes Home, Every Day Advice for safety By Katie Pesznecker
S
afety stands as a moral imperative and duty to the workforce, as well as economic necessity, shaping reputations and impacting project and service results. Successful businesses keep safety at the core of all they do, committing to a suite of values and behaviors that enhance and reinforce safety at every turn—from the safety of their people to protecting valuable assets and the invaluable Alaska environment. “Safety is our top priority,” says Robyn DiLorenzo, corporate safety director at Watterson Construction, one of the largest Alaskan owned and operated construction contractors in the state. “We don’t balance safety against any other consideration. If we can’t do something safely, we don’t do it. Budgets and schedules are built around safety. Our experience is that planning and completing a project safely produces better job cost.” Watterson and other Top 49ers have learned how investing in safety ultimately improves the bottom line on all fronts. 92 | October 2023
Culture of Safety
“Ask 100 people what safety culture is and they may not be able to articulate an answer, but they sure will know when a safety culture is missing,” says Marty Freeman, senior manager of safety, environment, and security at Chugach Electric Association. Chugach builds up its safety culture by ensuring a visible and practical commitment from leadership, maintaining prominent reminders about safe behaviors, and promoting accountable workplace behavior and continuous improvement. “Every company has a culture whether they want one or not,” Freeman says. “What a company has to decide is what they want that culture to be—as well as identifying how they choose to define it.” At Roger Hickel Contracting, a large Alaskan owned civil and building contractor, safety is the number one priority and responsibility as a construction employer, says company president Sean Hickel.
Alaska Business www.akbizmag.com
Engaging Employees
Norm Alden is safety manager at Golden Valley Electric Association (GVEA). Regular safety training, meetings, and discussions “revolve around the concept of personal safety ownership,” Alden says, “meaning each employee is responsible for their own safety and the safety of others in their work area.” A commitment to this starts at the top, Alden adds. “The most important aspect of ensuring work is completed safely is to develop and maintain trusting relationships. It is critical that company leaders are visibly engaged with frontline w o r k e r s , d e m o n s t ra t i n g a s i n c e re interest in the work they perform and the challenges they must overcome to perform work safely.” Safety staff play an essential role in building and maintaining a strong safety program, and an effective safety worker “must be able to build a rapport with people in the field, communicate with them, listen to them, be present, and teach them how to be part of the solution,” DiLorenzo says. A workforce with a strong safety culture will approach every task with safety in mind always, not just when the safety officer is watching, DiLorenzo adds. “Safety is usually one of the first shortcuts taken, in order to meet the schedule,” she says. “ With a safety culture, there are less shortcuts, less injuries, and lower insurance premiums. The way we have built a safety culture in our organization is through safety education, training, and good leadership. Leading by example is one of the most important ways to get tradespeople to buy into the culture.” Safety leaders say training is essential to aligning employees’ behaviors a n d ex p e c t a t i o n s . A t Wa t t e r s o n Construction, that includes site-specific orientations for everyone working on a project. “ We also conduct weekly safety meetings on every project, along with toolbox talks,” she says. “Toolbox talks cover a wide variety of safety topics that www.akbizmag.com
“If we can’t do something safely, we don’t do it. Budgets and schedules are built around safety. Our experience is that planning and completing a project safely produces better job cost.” Robyn DiLorenzo Corporate Safety Director Watterson Construction
Alaska Business
October 2023 | 93
TOP 49ERS
“We owe it to our employees to keep them safe and get them home to their families,” Hickel explains. “We try to instill a lead-by-example mentality to keep the safety culture strong. We reward our people for keeping job sites clean, safe, and minimizing risk.”
TOP 49ERS
Chugach Electric Association line crews know that the moment they don’t respect the hundreds of thousands of volts in a transmission line, the consequences can be deadly. Maintaining equipment in all weather, in remote locations, further demands that safety measures are an instinctive habit. Chugach Elec tric A ssociation
94 | October 2023
Alaska Business www.akbizmag.com
employees to keep them safe and get them home to their families… We try
TOP 49ERS
“We owe it to our Diverse Capabilities. Consistent Results.
to instill a lead-byexample mentality to keep the safety culture strong. We reward our people for keeping job sites clean, safe, and minimizing risk.”
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Sean Hickel President Roger Hickel Contracting
make it easy to deliver essential safety training to employees on a regular basis.” Roger Hickel Contracting rewards employees for keeping their job sites clean and safe and having no accidents. Teams work closely with thirdparty consultants. Both Roger Hickel Contracting and Watterson also credit the Alaska Department of Labor and Workforce Development ’s Construction Health and S a f e t y E xc e l l e n c e p ro g ra m , o r CHASE. The program partners licensed contractors with the department’s Alaska O c c u p a t i o n a l Safety and Health t o take a proactive approach to reducing injuries, illnesses, and fatalities in the construction industry.
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Embedding Safety into the Workf low
Establishing routine safety engagement opportunities means working safely isn’t a separate concept from simply working. It becomes part of the regular rhythm of the day and a core consideration in approaching and delivering work. www.akbizmag.com
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October 2023 | 95
TOP 49ERS Gloves, eye protection, hard hats: employees at Golden Valley Electric Association’s North Pole power plant are taking active steps to make sure they end each workday safely.
Golden Valley Elec tric A ssociation
Golden Valley Elec tric A ssociation
96 | October 2023
“At Chugach, safety is an inherent part of our workflow,” Freeman says. “For example, within line operations, every job begins with a tailboard during which the work to be performed is reviewed, hazards identified, and procedures, methods, and safe work practices are discussed so any risks are eliminated and/or mitigated.” In Chugach power plants, unit work permits are used. This process requires communication and coordination between power plant operators and the maintenance crew working on a given unit, Freeman says. “It also provides a listing of safe work practices that may be required depending on what work tasks are being performed.” Chugach has also developed a highrisk work procedure that proactively
identifies foreseeable hazards and risks for high-risk work activities and ensures a p p ro p r i a t e r i s k c o n t ro l m e a s u re s are identified and implemented. This rigorous process goes even deeper into risk mitigation, with thorough reviews of materials and equipment, critical steps, potential errors and consequences, and past experiences. GVEA also commits to routine safety briefings, meetings, and permitting to keep safe behavior at the forefront. “In addition, all group meetings begin with a participant voluntarily sharing a safety reminder or safety incident that helps others be mindful of safety in the workplace and at home,” Alden says. Watterson recently met with its team to review the “Call Before you Dig” program, DiLorenzo says. That’s the campaign to
Alaska Business www.akbizmag.com
TOP 49ERS
protect people from unwitting contact with underground infrastructure. “Digging into a buried electrical line or pressurized pipe poses a hazard to those digging and those nearby,” she says. “It also damages the utility’s property and can damage construction equipment and surrounding properties. Breaching a sewer, natural gas pipeline, or petroleum pipeline can create a hazard to the environment.” By building safe practices into company policies, businesses can demonstrate that safety is key to achieving top results— and to protecting people, property, and the environment.
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Safety at Any Cost
Some may fear putting safety at the forefront will threaten budgets and deliverables, but safety leaders have a different perspective. “Safety costs are built into any project budget, so there should be no need to balance safety and cost,” says Freeman. “We like to think that safety doesn’t compete with other priorities and, instead, is simply an understood value that is built into any work plan or project.” For companies that recognize a need to better incorporate safe practices into daily operations, DiLorenzo offers this: “Be the company that cares about their people. Know that those people working out in the field are the company’s number one assets.” Tradespeople work long days and nights, often in tough and trying Alaska elements. Therefore, DiLorenzo says, “Be the company that understands that incorporating safety into your daily work tasks will result in higher productivity and allow your company to be more competitive in this industry. Value your employees above all else. No business can be successful, in the long run, without outstanding people. Ensuring your employees go home to their families safely every day is imperative.” At Roger Hickel Contracting, safety outweighs budget every time, Hickel says. “If a job is safe and well-maintained, it is usually on schedule and budget,” he says. “If there is even one small accident, the budget doesn’t matter anymore. The most important thing you can do as a company is keep your people safe. If your people and organization are not implementing good safety policies, your company will fail.” www.akbizmag.com
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October 2023 | 97
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Superior Companies Require Superior Workers Advice for attracting, nurturing, and retaining a dream team By Rindi White
T
op-tier companies like the Top 49ers didn’t get there by chance. It takes effort, vision, planning, and persistence to unlock top-shelf status. Most importantly, it takes an excellent team of employees. Hiring talented workers is just one step; after successfully enticing a promising team, employers must think about how they ’re going to foster creativity, empower them to do their best work, and encourage them to grow.
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Alaska Business www.akbizmag.com
Start Well
“Professional development and training should be an ongoing aspect of any employer/employee relationship. It is a very mutually beneficial aspect that both parties need to be invested in.”
Employees who got their start in the ‘90s or before can share stories of having to put in long hours before earning much in the way of benefits. Family leave, a few decades ago, wasn’t really on the radar for many companies. A 1988 New York Times article, “Wooing Workers in the ‘90s: New Role for Family Benefits,” touts benefits some companies were considering to deal with an oncoming worker shortage due to lower birth rates in the ‘70s: “Chief among these benefits are ways to make it easier or cheaper for young parents to obtain child care. Other family incentives being offered include paid and unpaid maternity leaves, flexible working hours, and programs that enable employees to work part time by sharing a job.” Times have changed, at least in part. Twelve weeks of family and medical leave is federally required, though it’s not always paid leave. Many companies now offer flexible work hours, and—thanks in part to COVID-19—allow workers to telecommute. What it takes to attract workers looks a little different today, Bradison and Brown say. “There are multiple incentives that make an employer attractive to a wide range of applicants,” Brown says. “Some of the perks that my organization offers are unlimited paid time off, additional paid time away to spend with family, paid volunteering time, professional development money, and various financial incentives based on performance.” B ra d i s o n u n d e r s c o re d s ev e ra l o f those offerings and added that carefully building a strong team can also be attractive to prospective employees—who doesn’t want to be part of a dynamic, likeminded team? Identifying that team isn’t always easy. Bradison says when she is evaluating prospective employees, she looks for transferrable skills and a desire to be productive. Brown keeps an eye out www.akbizmag.com
Christine Brown, HR Ser vices Lead Recruiter, Wilson Albers
Alaska Business
October 2023 | 99
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PeopleAK founder Paula Bradison and Christine Brown, lead recruiter and human resources services partner with Wilson Albers, are two prominent Alaska recruiters and business consulting companies. Here are their tips for how they attract and retain high-quality employees, as well as advice that they p rov i d e t o t h e i r c l i e n t s l o o k i n g t o attract talent.
TOP 49ERS
“We have on contract a weekly massage therapy appointment, with a certified therapist for sports and/or targeted massage therapy (off-site). Starting each September, we offer free vitamin D testing and supply employees with vitamin D3.” Paula Bradison, CEO and Senior Consultant, PeopleAK
for details—information about specific projects that turned out successfully, for example. She says she’s not always looking for perfection; personal growth is key. “You do not need to show a perfect track record, but you need to show that you have taken steps to grow professionally and that you are open to learning from yourself and others,” Brown says.
Tend to Basic Needs
The incentives worked, the interviews were successful, and a dream team of
fantastic employees are on board. Now what? How can companies retain those skilled, dynamic workers? “Onboarding with expectations and key performance indicators from day one,” Bradison says. “We have adopted a strengths-based philosophy, focusing on our strengths and the strengths of our clients as well. Quality core value alignment makes the work come easy,” she says. With employees on board and working toward goals, it’s important that basic needs are tended to. Employee
health and wellness is important, and employers who nurture those things are generally rewarded. “Companies that put their employees’ physical and mental health as a top priority will always see a tremendous increase in productivity and overall satisfaction. Some of the ways employers can do this are to provide health and wellness programs and allow for time off as needed to care for oneself or family,” says Brown. Bradison says that, for her team, modeling and presenting healthy
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Keep Growing, Keep Engaging
Fostering engagement and collaboration—as well as disagreement in a healthy way—is vital to creating a safe space for employees to give input and grow, Bradison says. A clean workplace, multiple work areas that allow impromptu collaboration, on-site meetings with clients: those are all vital to encouraging collaboration. But disagreements? “ We a r g u e f re e l y a s p a r t o f o u r routine—while understanding professionalism is key,” Bradison says. “We are here to solve problems on behalf of our clients; this is best accomplished
with varying and diverse-experienced or -educated staff members.” Providing opportunities for employees to grow and learn is key to nurturing employee health as well, Brown says. “Professional development and training should be an ongoing aspect of any employer/ employee relationship. It is a very mutually beneficial aspect that both parties need to be invested in. Thoughtful planning and communication need to occur to ensure that an employee is on the right track toward the professional goals they have, and the employer needs to help ensure that progress is ongoing. Education, certification, and professional coaching are just some ways these goals can be achieved, and often a combination of these tools will yield the best results,” Brown says. Keeping an ongoing dialogue with employees about what they need is also valuable, she says. When budgets are tight, those discussions can provide a way to be sure client needs are met while employee needs are met as well. “ E m p l oy e r s t h a t c o n c e n t ra t e o n focusing on using money wisely in terms of how they meet their customer needs
as well as their employee's needs have a clear advantage. Oftentimes asking employees what is most valuable to them in terms of benefits and perks is the best way to meet those needs,” Brown says. “My employer keeps an open dialogue with our employees and uses surveys to make sure they are offering us the benefits that matter most to us, and not offering us benefits that are not a value to us. It is a win/win!”
Plan for Change
Bradison says recognizing and planning for employee turnover can be a vital tool for keeping a work team engaged and a company stable, fostering growth and development. “We recruit according to our attrition rate, looking for talent before we have a vacancy. We also embrace a healthy t u r n ov e r, w i t h s o l i d re t e n t i o n a n d succession plans,” she says. Life is going to happen; employees rarely stay in the same place for thirty years anymore, even if they love their workplace. Planning for the inevitable before it happens will help keep your company moving forward when it does.
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opportunities are key. “We try to make it both fun and easy to be in the office,” she says. “During and post-COVID, we have high-protein snacks to encourage healthy snacking versus daily DoorDash [orders]. We have on contract a weekly massage therapy appointment, with a certified therapist for sports and/ or targeted massage therapy (off-site). Starting each September, we offer free vitamin D testing and supply employees with vitamin D3.”
TOP 49ERS
Cogs in the Machinery Advice for equipment and technology By Sarah Reynolds Westin
A
laskans cannot always drive to “the next town over” to pick up the tools they need. Location, production, service, and shipping factors complicate access to equipment and business technology. Therefore, planning for contingencies, keeping equipment on hand, and assessing what strategy works best—buying or renting—are keys to running smoothly. Two companies, differently sized and positioned in separate markets, have shared insights about how customers can evaluate their best paths forward. Craig Taylor Equipment is a Top 49er that specializes in providing the heavy gear that clients need. Up-and-comer beadedstream deals in more hightech gadgets yet serves the same role in supplying the means for customers to maximize their productivity. Both companies’ leaders guide their teams on how to help their customers decide what works best for them.
Product Catalog
Craig Taylor Equipment has sold, rented, and repaired power tools of all sizes and for all applications since 1954. Based in Anchorage, it has six locations throughout Alaska, which offer products including John Deere, Bobcat, Peterbilt, Bluebird, Stihl, and Honda, ranging from chainsaws and lawnmowers to trailers and tracked excavators. Chris Devine joined Craig Taylor Equipment in 2013 to assist in the generational transition after Sean McLaughlin purchased the business from the Taylor family, who founded the company. The 102 | October 2023
two men got along well, and Devine was moved into the position of president and CEO and is a partial owner with McLaughlin. “We are a full-service dealership that provides sales, rentals, parts, and service for all equipment lines we carry,” Devine says. “Anyone who owns a machine that we represent, whether they bought it from us or not, can come to us for parts or service support.” Service is likewise included for the temperature sensor cables and remote data loggers sold by beadedstream, which designs and fabricates the hardware, too. The Anchoragebased company also offers machine learning software to help customers understand data and support decision making. Employees travel globally to sell, install, and maintain its products. Brian Shumaker and his father founded beadedstream in 2004. Now it operates as an integration-focused company by adapting existing technology for field-specific applications. It is invested in serving rural communities and industry construction projects that need rapid monitoring of underground conditions, especially where permafrost exists. “We provide a consultative sales process that starts by walking customers back to their original problem,” Shumaker says. For instance, customers might know they need to track ground temperatures but do not know what equipment to use or where to install it. In 2022, beadedstream sold, rented, and serviced 4,800 sensors, 60,000 feet of cable, and 100 data loggers.
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Rent or Buy
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TOP 49ERS
Devine and Shumaker agree that whether a business or individual should buy or rent equipment depends on projects’ end goals and duration as well as what they want to accomplish. “Our offerings are diverse—from businesses’ 100,000-pound excavators to homeowners’ basic lawnmowers,” Devine says. Craig Taylor Equipment’s customers must operate their own machines and possibly maintain them. So, Devine says, “they have to ask themselves, ‘What do I need to do?’ and, more importantly, ‘What equipment should I have on-hand to be efficient and productive?’” At beadedstream, purchases and rentals work differently than at Craig Taylor Equipment. “Our equipment is basically hands-off once people know where to plant the sensors and plug them into loggers,” Shumaker explains. I t s c u s t o m e r s d o n o t o p e ra t e t h e equipment and, by having solar-powered parts, little maintenance is required while data flows via satellite to the cloud and apps. Devine and Shumaker both note that equipment and technology generally become more expensive and complicated ov e r t i m e . “ S o m e t e c h n o l o g y, l i k e beadedstream’s, can be configured remotely as updates are needed, which can make offerings more affordable,” Shumaker says. These developments allow his customers to keep up with and apply innovations. However, Shumaker acknowledges that, in other areas of technology, staying current with the latest advancements or being able to pass maintenance responsibilities to owners “may be an argument to rent instead of buy.” Renting contributes less than 5 percent of Craig Taylor Equipment ’s rev e n u e . “ W h e n d e c i d i n g b e t w e e n buying or renting, you should consider your capacity to handle maintenance and repairs,” Devine says. “Customers who have the infrastructure and staff to maintain equipment and establish regular preventative maintenance programs to prepare for fix/fail situations often buy. Those who don’t may want to rent so they don’t have to factor those costs into their projects’ economics.” Having mechanics or service know-how also influences the decision. Shumaker acknowledges that when someone owns equipment, especially
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October 2023 | 103
TOP 49ERS This is high tech: even heavy machinery is equipped with telematics systems to monitor the equipment’s health to inform fleet maintenance and operations decisions. Craig Taylor Equipment
machines that collect data, that person has full control of the information—which can be even more valuable than the equipment itself. “We’re seeing the future become more data-centric for decision making, and it’s an accelerating trend,” Shumaker says. “The more data you have, the faster and better you can make decisions.” Thus, owning does provide a competitive advantage. “ Think about the numbers—that ’s what I encourage people to do. Since each project is different, we typically talk customers through them,” says Devine. “Does your project’s duration margin justify buying versus renting? Then we consider that information to help them make a good decision.” No right answer exists. For instance, tax implications—which are unique to each person and business—can impact choices too.
Learning Curve
Customers who come to Craig Taylor Equipment and beadedstream often d o n o t k n ow h ow t o m a x i m i z e t h e machine-monitoring data generated by their purchases or rentals—which
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TOP 49ERS
is, perhaps, the biggest value when investing in equipment and technology. This monitoring, called telematics, is found in more machines nowadays a n d p rov i d e s f e e d b a c k o n w h a t i s happening. People use it to assign m a i n t e n a n c e , ex t e n d u p t i m e , a n d improve reliability. Devine references telematics specifically, which can be the biggest hurdle for customers as technology evolves. “These systems help businesses be preventative and reduce downtime due to unexpected maintenance,” he says. Knowing how to harness, access, and interpret the collected data is critical for equipment users since it informs fleet management and operational decisions. While these technological advances drive up the price of equipment, in the long run it makes the machines more valuable because it saves time and money by preventing failure. Shumaker approaches technology evolution from another angle. “Even my business has benefited from plugins and apps that connect our departments,” he says. These advancements help any size business work as if it were a
Digital temperature cables string up to 125 thermistors, or sensor elements, along nearly half a mile of wire. Granular measurement of ice roads, for example, allows North Slope vehicles to travel for an extra four to six weeks each season. beadeds tream
large company with servers, clerical support, and IT departments. As businesses and individuals make investments in equipment and technology, understanding what these information systems offer and how to use them matters. “The industry is moving very quickly in the technology direction,” says Devine. “Our customers are more accustomed to it, so less and less education is needed.” However, Craig Taylor Equipment’s sales representatives still walk each person through the digital screens and apps to identify settings, navigate menus,
Alaska Business
and program operating modes, such as economy, heavy-duty, or downhill. Once the user sets up their online portal, they have information at their fingertips. “We see a future coming where people will go online and ask us a question like, ‘When can I drive on the ice road to Utqiaġvik?’” Shumaker says. “The answer is beginning to rely on—and will someday probably exclusively rely on—applying machine learning models. You can own all the machines in the world, but if they don’t get you where you need to go or do what you need them to do, then what’s their use?”
October 2023 | 105
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2¢ Worth
Financial advice for businesses By Tracy Barbour
S
Travis Frisk, CFO of Credit Union 1 (CU1), says he was told ome of the best counsel Michele Schuh, executive vice president and CFO of First National Bank Alaska at an early age that you should always try to pay yourself (FNBA), ever received is to build a good business plan first if you can, before you pay others. So he extends similar that includes a cash flow model. That step helps ensure that advice: “I am not suggesting that you not pay the obligations you have committed to. What I am saying is that financial decisions and desired outcomes are tied to you should utilize any and all avenues to save for the business mission and stakeholder goals. “From retirement. Take advantage of a company-offered a financial view, planning where sources of cash 401(k) if available or use IRAs as a means of are generated, along with how money is utilized, is saving for retirement. This can all be accomplished critical to success,” she says. “Every business will have by sitting down and establishing a reasonable competing demands for resources to meet objectives budget. Set a goal for an amount to have in your for growth, diversification, efficiency, or productivity. savings and retirement funds by the end of the Funding decisions on when to raise capital, when year and regularly review your progress. Start to borrow, and how to use existing cash generated early if you can. Speaking from experience, I wish from operations can be effectively modeled in a good Michele Schuh I would have.” business plan and executed with confidence.” Firs t National Bank Alaska
106 | October 2023
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my professional life. The only difference is, instead of basing a decision on what is best for me and my family, I base it on what is best for the members of our credit union.” The executive group at Northrim Bank leverages its collective expertise when making decisions. “Each of us in our organization brings a different perspective to our overarching philosophy of providing flexible, responsive service and customized solutions to customers,” the team says. “We work from a foundation of integrity and honesty, coming together often to discuss and share ideas to make sure we’re aligned in our decisions. We have a sense of personal responsibility for the relationships we have with each other and our customers and understand every customer is an individual and unique in their banking needs.” Consequently, Northrim strives to share financial preparedness information with its customers early so that they aren’t caught off guard by any shifts along the way. “Being prepared helps our customers survive and thrive,” the bank’s executives say. “We call this SurThrival:
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Northrim Bank’s executive group— A s t r u c t u r e d a p p r o a c h c o n s i d e r s which includes Joe Schierhorn, chairman a l i s t o f b e n e f i c i a l o u t c o m e s a n d and CEO; Mike Huston, president; Jed associated risks. “Good decision makers Ballard, executive vice president and CFO; incorporate the likelihood of various Amber Zins, executive vice president and o u t c o m e s i n c o n j u n c t i o n w i t h t h e business' risk tolerance,” she COO; and Ben Craig, CIO— says. “Financial decisions are heeds the advice of founder often made in the context Marc Langland: “Banking is of some uncertainty, so an a people business. Make the approach that includes risks, customer comfortable by rewards, and probability caring for their needs, and offers a good framework that’s how you deliver value.” t o h e l p g e n e ra t e a s o u n d Northrim, CU1, and FNBA financial decision.” have exercised sound financial Frisk applies intentional decision making on top of a Travis Frisk restraint with his personal solid financial foundations to Credit Union 1 decision making. His first become Top 49ers. These basic principles apply to every organization, as i n c l i n a t i o n i s t o n o t m a k e a q u i c k well. Given each institution’s prudence decision. From there, his approach with customers’ assets and with their depends on the type of financial decision own, they must know what they’re doing. a t h a n d . F o r e x a m p l e , h e u s u a l l y What other advice do some of Alaska’s takes longer than normal to make a most prosperous depositories have purchase—large or small. “I want to have time to review options,” he explains. “I to share? want to run scenarios of what happens Approach to Financial Decisions if I do this (or don’t) and what the Sound financial decisions start with outcomes may be. Do I need the item, or a clear framework built upon risk and can I wait? Do I pay cash, or do I finance? reward considerations, Schuh says. The same goes for financial decisions in
TOP 49ERS Northrim Bank Executive Group: (left to right) Ben Craig, EVP, Chief Information Officer; Mike Huston, President; Joe Schierhorn, Chairman and CEO; Amber Zins, EVP, Chief Operating Officer; and Jed Ballard, EVP, Chief Financial Officer. Nor thrim Bank
customers excel and grow their businesses. We meet our customers where they are, whether that’s through our electronic banking channels or any Putting Customers at Ease Discussing money can be awkward one of the new branches across Alaska, for many people. Starting the discussion so that we can have open conversations with a desired goal and breaking the with them.” Frisk says the most important aspect process into a series of simple math equations can help remove some of o f d i s c u s s i n g m o n ey i s t o s t a r t by t h e e m o t i o n a n d s u b j e c t i v i t y f ro m letting individuals know they are not the the planning, says Karl Heinz, senior first person who has run into financial difficulty or issues. “There is vice president and branch nothing to be ashamed of a d m i n i s t ra t i o n d i re c t o r a t and nobody is judging them,” FNBA. “Our job as bankers is to he says. “We are here to help, break down the numbers and but we are not here to force help find the right financial them into doing anything. They tools to help customers have to be comfortable making reach their goals,” he says. changes if they are needed. “That starts with establishing We are not here to sell them a a relationship where the product or service. We are here customer understands that Karl Heinz Firs t National Bank Alaska to provide sound advice on we want you to be successful. Relationships are vital to making people what we have seen work for individuals in f e e l c o m f o r t a b l e d i s c u s s i n g t h e i r similar situations and who have been able money because when the customer is to work their way out of a crisis and into a successful, their success supports our better situation.” community.” Northrim’s top executives say trust is Common Financial a key part of community banking, and Mistakes they are focused on building trust by According to Northrim’s executive engaging in the community and actively group, some of the common financial listening to customers when they talk mistakes that businesses make are linked about their businesses, challenges, and to myths about banking: banks don’t plans. “When we do this, we can better want my business because I’m too small; understand their needs and respond banks don’t make small loans; I need a w i t h o p e n c o n v e r s a t i o n s a n d l o c a l perfect credit history; loan applications financial expertise,” the executives say. take months; and fees are not affordable. “Throughout the state, our employees “Instead, get to know your banker and a re p a s s i o n a t e a b o u t h e l p i n g o u r let your banker get to know you,” the overcoming challenges and seizing opportunities.”
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executive group says. “By building this relationship, you will be able to alleviate any concerns you have and move forward quickly when you need to. Make sure you discuss your options, sources of financing, and lending readiness, so you know what to expect.” Frisk says many small companies— which are often sole proprietorships or family-owned enterprises—are extremely talented at the business they conduct but may not be as good at paying attention to their cash flow and ensuring invoices and vendors get paid in a timely manner. “The lack of financial acumen has led some business owners to enlist bookkeeping and accounting services to take over and run their finances,” he says. “There is nothing wrong with this, as the majority of these types of service providers are reputable and do a good job. I would only recommend that you do your due diligence by reviewing your financial activities often to ensure the health of your business and that your finances are being handled correctly.” In a similar vein, Heinz emphasizes that running a successful business is more than being an expert in your field and providing outstanding service. It is also beneficial to have a team of experts available to help support the business. He explains, “The BAIL acronym is a great starting point—B for banker, A for accountant, I for insurance broker, and L for lawyer. By building their business team, business owners can lean on t h e s e ex p e r t s t o s u p p o r t b u s i n e s s decisions and spend their time pursuing their passion and growing the heart of their business.” I n a d d i t i o n , n ew b u s i n e s s e s a re focused on growth and sometimes pay more attention to revenue than net profit. “It is important to remember that bigger is not always better, especially when you don’t have a healthy financial foundation,” Heinz says. Schuh says businesses have a much better chance at success with a solid financial foundation, a robust planning mindset, and decision-making excellence when a diverse group of capable and experienced people is developed into a leadership team. She explains, “Financial performance falls into place only when coupled with smart, passionate, forwardlooking leaders at the helm. Build an outstanding team and watch the performance follow.”
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M A N U FAC T U R I N G
Tasting Alaska Making flavors from local resources By Scott Rhode 110 | October 2023
B
ulk salt sells for pennies per ounce. Alaska Pure Sea Salt Company, though, sells 4-ounce pouches for $14 apiece. “A lot of people in town thought we had lost our marbles,” says Jim Michener, who co-owns the Sitka-based company with his wife. As they were starting more than a decade ago, he recalls neighbors scoffing, “Why would I pay this price that seems outrageous for a product I can buy at the grocery store for a percentage of that?” Over time, the community began to understand the product, and Michener says Sitkans are now the company’s biggest advocates. When cruise ship visitors inundate the town, locals tell tourists they absolutely must visit the salt store. The Micheners make a finishing salt. “It’s not thrown into food during a mixing or cooking process; it’s being used at the end. The food is plated, so you see these beautiful, geometric, shiny crystals on top. When you bite into it, there’s a textural component: a light, delicate crunch that is incredibly appealing,” Michener explains.
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Extracted from the waters of Sitka Sound, the salt also conveys a unique taste. “Even in the sea salt world, if you’re critically tasting, there is quite a bit of difference in the flavor of it,” Michener says. “Having a balanced flavor is key. When you talk about flake salt, that’s really the appeal for high-end restaurants, chefs, and enthusiastic home cooks.” Jake Beaudoin, co-owner of Bridge Creek Birch Syrup in Homer, speaks of his product much the same way. “There’s a lot of different flavor profiles to it,” Beaudoin says. “There’s three different main runs— there’s the early run, there’s the mid-run, then there’s the late run—and there’s a huge change in flavor.” The sweetener and the seasoning have another commonality: both are food ingredients manufactured from Alaska’s natural surroundings.
Greet Seasonings
In addition to the 3,000-square-foot store in Sitka, Alaska Pure Sea Salt Company has an online shop for its own products and for Barnacle Foods seasonings made with Alaska bull kelp and spruce tips. Shoppers can also find wildflower honey from Stoked Beekeeping Co. in Homer. North of Homer, Beaudoin and his partner, Anna Meredith, don’t like using a computer at their homestead. They prefer to sell birch syrup at farmers markets, but Bridge Creek Birch Syrup also supplies five value-added manufacturers, such as Chugach Chocolates in Anchorage. Meredith says, “We pick and choose because we’re so small. We don’t have a lot of product, so we pick the ones that we really want to enjoy for ourselves.” Evidently, Meredith and Beaudoin enjoy ice cream. “Yes, we are proud to use birch syrup from Bridge Creek Birch in Homer,” says Elissa Brown, owner of Wild Scoops. “We’ve been buying from them since we first opened in 2015.” Wild Scoops also uses flake salt from Sitka for its cookies and salted caramel. Michener and his wife are the “old guard” of Alaska salt. Michener made his first batch in 1999. “It was on our honeymoon that we accidentally left a big pot of seawater on a wood stove unattended overnight,” he recalls. “Woke up in the morning to find a heavy brine with salt forming on the surface. It lit the fire of, ‘Hey, let’s make some salt and use it in our kitchen at home.’” www.akbizmag.com
“If we didn't use local products, it would certainly be cheaper to produce our ice cream, but it would take away one of the things that makes Wild Scoops so unique.” Elissa Brown, Owner, Wild Scoops
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Sap collected from birch trees around Talkeetna yields reserve syrup (the lightest and sweetest, taken on the first day), early run (during the first week of spring), the tangier mid-run from only a few transitional days, and the late run from the final week. Alaska Wild Har ves t
Curiosity turned to passion. Michener kept a notebook while he experimented with salt making. At the time, he was a wilderness survival instructor and fishing guide. One of his clients in 2007 was Jason Wilson, a well-known Seattle chef. Wilson spread the word of Sitka sea salt to the culinary elite. Thus, the Micheners turned a hobby into a business. By contrast, Meredith was practically born into the syrup industry. At least, she grew up making maple syrup at her family’s dairy farm in New York. Beaudoin had made birch syrup at home, growing up in Homer, but it became his career mainly because hardly anybody else was doing it. Just a handful of suppliers make birch syrup in Alaska. Michael and Dulce East are pioneers in the field, starting in 1990. They established Kahiltna Birchworks in Talkeetna, which grew into Alaska Wild Harvest. This summer, they retired and sold the business to Ted and Alex Hammers and Chris Sorensen. Beaudoin credits Michael East with helping Bridge Creek Birch Syrup get 112 | October 2023
going. “Michael helped me out a ton. I talked to him every year. He's saved me a lot of heartache by little tidbits, how to do things, good advice,” Beaudoin says. “I'm not sure where it's going to go, but we'll find out, I guess.” In addition to bulk syrup, Alaska Wild Harvest makes birch candies and other fruit syrups, which Wild Scoops resells at its ice cream shop. Brown says, “If we didn't use local products, it would certainly be cheaper to produce our ice cream, but it would take away one of the things that makes Wild Scoops so unique.”
Nectar Connector
Honey is another local flavor that Wild Scoops highlights, and it also comes from the Matanuska-Susitna Borough. Gabel Family Honey sells pint jars for $20, so Wild Scoops uses it sparingly. “We buy five gallons of honey at a time, so there is some bulk savings there,” Brown explains. “We use it as part of our honeycomb candy add-in for our AK Honeycomb flavor, so we are able to
stretch it out more than if we just used it straight in the ice cream.” Alaska wildflowers offer a feast for hungry bees in the state’s surprisingly extensive honey-making network. “There’s a decent-sized beekeeping community in Alaska,” says Patrick Cotter, owner of Alaska Honey Collective in Fairbanks. He figures his area alone might have 200 or more insect whisperers. Most are backyard hobbyists, and Cotter ’s collective is small, too: just him and the bees. Since he started in 2016, he’s been looking for ways to expand, which would require larger property to host hives. (His neighbors, he says, don’t seem to mind the insects buzzing around.) Committing to wholesale orders is tricky, Cotter says, because he can’t guarantee quantity. The honey harvest in late August may vary in volume depending on summer weather. Cotter continues selling through the winter, doing a lot of business for Christmas. “I have done a few big orders where an individual said, ‘Hey, I’m doing a wedding.
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Sap collected for about a month in the spring becomes birch syrup for the rest of the year. Alaska Wild Har ves t
I’d love to have little wedding favors.’ So they buy little 1 ounce or 1.5 ounce jars. They’ll buy those 100 or 200 at a time,” he says. At Wild Scoops, “We don't use the syrup and honey as alternative sweeteners; they are specific flavors that we try to highlight as special add-ins,” Brown says. “But it's certainly a balance. We need to make sure that we can produce ice cream at a reasonable price so we can also sell it at a reasonable price and stay financially sound.” www.akbizmag.com
For a more premium product, Cotter sells squares of comb honey. “It’s more labor intensive to do,” he says. “You can’t just lop off a chunk of honeycomb; you have to take out the whole bar.” That’s when he uses a Top Bar hive, where bees attach combs to a horizontal bar. He also uses Langstroth hives: stacked boxes with wooden frames that give bees a head start on comb construction. To harvest honey from the frames, he spins them inside of a metal tub. The bees do most of the manufacturing. They slurp nectar from flowers, spit it into honeycomb cells, and maintain the hive environment to drive off water until the sugar is thickened. Evaporation is the key to birch syrup, too. “It comes in as raw sap, which is essentially water with 1 percent sugar in it,” Beaudoin explains. “We run it through a reverse osmosis machine that I built, which essentially extracts pure water from it, and then you're left with the concentrate.” Alaska Business
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business as carbon neutral, relying on Sitka’s hydropower, but the city denied his permit because his plant’s electricity consumption could cause a brown-out. Sitka’s hydroelectric capacity has since increased, and Michener has engineering drawings for a more energyefficient facility. However, he’d need to move out of his leased warehouse space, and finding waterfront land is a challenge. U n t i l t h e n , A l a s k a P u re S e a S a l t Company is locked into using propane heaters.
Alaska Mystique
The 100 mL bottles sold by Bridge Creek Birch Syrup are the exactly the size allowed in airline carry-on luggage, which makes them convenient souvenirs for travelers. Jake Beaudoin
Gabel Family Honey in Palmer supplies sweet additions to locally made ice cream. Wild Scoops
From 1,000 gallons of sap, the result is 200 gallons of 6 percent concentrate. But it’s not syrup yet. The concentrate goes into a pan, repurposed from a maple syrup evaporator, and a judicious application of heat boils off the unwanted water. Beaudoin and Meredith then bottle the resulting syrup by hand. Michener ’s process also starts with 1,000 gallons and removes the unwanted water. Converting seawater 114 | October 2023
into packaged salt takes six days, which includes sanitizing, filtering, and multiple evaporation stages. Several batches are processed concurrently. Seawater is “basically free,” he adds, but “evaporative costs are tremendous.” In cloudy, rainy Sitka, brine pans can’t be left outdoors. Salt is manufactured with indoor evaporators. “I’m not proud of my carbon footprint,” Michener says. He conceived of the
Bridge Creek boasts of being an “all wood-fired” birch syrup maker. Beaudoin says it takes five cords of wood per season, and buying more land for fuel is the company’s main capital expense. The direct tie to the land is a selling point, though. While Bridge Creek’s main market for birch syrup is locals, the product also appeals to tourists. “They just want to take that flavor home. It's just nice to be able to purchase a gift that isn't going to hang around forever, too. It's like flowers: it goes away,” says Meredith. Salt is another flavor that tourists take home. “A lot of people are looking for Alaska-made products,” Michener says. “That really fits the bill for us; we have a product that’s locally made from start to finish. It also is small, so it’s easy to travel with. And it’s consumable, so it’s a good gift. We do quite well with the visitor trade.” Alaska Honey Collective does a couple thousand dollars’ worth of sales per year, and Cotter says about half his customers are in the Lower 48. “I think there’s a mystique about anything from Alaska,” he says. “Our honey tastes different depending on the floral sources and everything. Depending on where you have your hives, the bees can get a lot of nectar from fireweed, which I think has a unique taste. There’s not a lot of apiaries out there that can say that.”
Terroir and Merroir
Cotter ’s bees collect nectar from whatever flowers they forage and return to hives in his yard. In the past, he hosted hives with other homeowners. “ The benefit to me is I get to put my bees in a spot where there’s different floral sources (or spread out so I don’t have
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all my bees in one spot, in case a bear comes through),” he says. “And at the end of the season I give them, I don’t know, a few jars—a quart or two—of honey for hosting the bees.” To make birch syrup, Bridge Creek relies on other people’s property. “This year we worked with six landowners,” Meredith says. “We get agreements, and they're excited that a product is coming off their property and they don't have to do it themselves. We trade them a year's supply of birch syrup.” Syrup, Beaudoin believes, has terroir, like wine. “You go upstate, its syrup tastes totally different. I think we're really lucky here. I think our trees have a higher sucrose content,” he says. “That’s one thing that we're blessed with down here. Good, light, delicious, buttery.” Does sea salt have the marine equivalent, a merroir? Michener has heard of it, but he doesn’t think so, generally. “I imagine if you went to the mudflats of Turnagain Arm, stirred it up, and got some of that stinky hydrogen sulfide mud,” he conjectures, “maybe you’d end up with some of that skunky, Span_ABM_8-2023_1A_PRINT_1.pdf eggy smell. But for the most part,1
whether you’re pulling the water from Sitka or San Francisco, if you’re just talking about seawater, there should be no difference.” That said, Michener concedes that the lack of heavy industry in Sitka Sound makes some difference. Furthermore, “Any sea salt that’s made properly is a tremendously different product from what you consider salt: sodium chloride in the Morton’s bottle with the umbrella.” Michener notes that Alaska Pure Sea Salt Company is the only domestic producer of flake finishing salt. Unlike gold or oil, the resources that go into these food ingredients are practically everywhere. No one has to explore for seawater, wildflowers, or birch trees. “I don’t know why more don’t make it,” Meredith says of potential growth in the birch syrup industry. Not enough people know about it, she supposes. Beaudoin would like to change that. “My goal is to make something that’s good enough to sell itself,” he says. “It's taking a long time, but our process has been refined, and I do believe I'm very 6/22/23 proud to 12:58 put it PM out there."
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“A lot of people are looking for Alaska-made products… That really fits the bill for us; we have a product that’s locally made from start to finish. It also is small, so it’s easy to travel with. And it’s consumable, so it’s a good gift. We do quite well with the visitor trade.” Jim Michener Co-founder/Co-owner Alaska Pure Sea Salt Company
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ECONOMIC DE VELOPMENT
Building Up the B Kenai Peninsula An economic development district propels local business activity By Vanessa Orr
116 | October 2023
usiness is booming on the Kenai Peninsula, in large part due to the Kenai Peninsula Economic Development District (KPEDD), one of only four federally recognized business districts in Alaska. By leveraging the involvement of the public, private, and n o n p ro f i t s e c t o r s , t h e s e e c o n o m i c development districts—including Southeast Conference in Juneau, Prince William Sound Economic Development District in Cordova, and Southwest Alaska Municipal Conference serving Kodiak, Bristol Bay, and the Aleutians and Pribilof Islands—are able to establish a strategic blueprint for economic development regionwide. A s t h e f i r s t s u c h f e d e ra l d i s t r i c t designated in Alaska, as well as the first of nine Alaska Regional Development
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Organizations (ARDORs), KPEDD has been involved in public works projects, shellfish industry development, international trade, promoting a North Slope natural gas pipeline to Cook Inlet, infrastructure d ev e l o p m e n t , w o r k f o rc e p l a n n i n g , community action plans, and tailored business assistance. “We have gas and oil, but not like they have on the Slope. We have tourism, but not like they have in Southeast. We have commercial fishing, but not like they have in Southwest,” explains KPEDD Executive Director Tim Dillon. “We have a variety of amazing things here to offer, and that makes us unique.” Realizing that potential natural gas projects, like the proposed AK LNG pipeline to Nikiski, would require a local workforce, KPEDD approached filling that niche four years ago. “There was no reason that companies s h o u l d n e e d t o h i re a ro u s t a b o u t from Louisiana or Texas for entry-level positions when people right here in Alaska can be trained for that job,” says Dillon. “Working with the [Alaska] Petroleum Academy in our building and the [Alaska] Construction Academy on
our property, we came up with a 40-hour class that trains local people to take those jobs. Whenever businesses are looking to fill these entry-level positions, we get with the Department of Labor [and Workforce Development] to offer the class, which has a 90 percent placement rate.”
Incubating Entrepreneurs
One of the reasons that businesses are attracted to the Kenai Peninsula is because they receive a wealth o f a s s i s t a n c e f ro m K P E D D. T h e organization’s 30-acre facility in Kenai serves as a business incubator helping new businesses to get off the ground. “Right now, we’ve got nine businesses in the building incubating, and we’re also working with sixty to sixty-five businesses around the Peninsula,” says Dillon. One of these businesses is Kenai Peninsula Driving Instruction (KPDI), which recently moved out of the incubator to its own property two miles a w a y. T h e b u s i n e s s w a s s t a r t e d i n response to Alaska’s lack of local workers with commercial driver’s licenses (CDLs). “Five years ago, there weren’t enough CDL-licensed drivers on Alaska’s roads,
“If a person has a good business plan, we will go to the bank with them, and if they need collateral to get a traditional loan, we will work on backfilling that amount for them.” Tim Dillon, Executive Director Kenai Peninsula Economic Development District
and one of the reasons is that the only place to go to school to get that license was up in the Valley,” says Dillon. “Alex and
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The US Coast Guard Cutter Kukui was in for a complete exterior preservation this past winter at JAG Alaska Inc.’s Seward Shipyard. To accomplish this task, the vessel had a large containment built around it. JAG Alaska Inc.
To date, Kenai Peninsula Driving Instruction has graduated more than 1,000 class D drivers and 826 CDL drivers, with an approximately 98 percent placement rate. Kenai Peninsula Driving Ins truc tion
118 | October 2023
Sarah Douthit started a driving school, and it has become so successful that they are not only turning out new CDL drivers but have been able to help companies like Enstar [Natural Gas Company] and Homer Electric Association do check rides that are required by their insurance.” “It’s a heck of a lot better to do them here in Kenai instead of sending drivers to the Valley and paying overnight and per diem charges,” Dillon says. A l ex D o u t h i t c re d i t s K P E D D w i t h helping the burgeoning business cut through the red tape required to start a driving instruction business in Alaska. “In the very beginning, we needed a lot of help with the licensing process; it was a big hurdle to get around the cumbersome regulations, and I was getting stonewalled throughout the process,” Douthit explains. “Tim and KPEDD were able to help point us in the right direction and to make contact with the people we needed to reach, which was integral to us starting the business.” The company has grown from a threeperson driver instruction company to a multiple-employee business and training team that provides commercial driving instruction, class D drivers’ education, and third-party DMV services, including drivers’ licenses, tags, and titles. It also holds contracts to provide Transportation Worker Identification Credential and TSA precheck for federal contractors and background checks. Once located in a roughly 100-squarefoot space in the KPEDD incubator, KPDI moved in August 2023 to its own 1,700-square-foot commercial training center that includes a shop on 5 acres of property in Kenai. Its unique hybrid CDL program, which consists of online remote learning followed by one-on-one student-instructor training, has proved to be extremely popular with both students and businesses alike. “One of biggest shortages that communities face right now is not having enough commercial truck drivers locally,” says Douthit. “They are struggling to get new drivers in entry level positions, and we’re making it possible to train the staff they have now.” To date, KPDI has graduated more than 1,000 class D (non-commercial) drivers and 826 CDL drivers, with an approximately 98 percent placement rate. “It’s been eye-opening for me and my wife to realize how much we’ve grown in Alaska Business www.akbizmag.com
such a short period of time, and we are proud to be part of such an amazing community that is so supportive and receptive to us,” says Douthit, who notes that now that they have paved the way for other driving schools, including a new one in Southeast. “We’re continuing to look for new training opportunities to fill niches locally and statewide.” He adds that his wife, Sarah, specializes in the grant writing process, so she can help direct small businesses to tools that enable them to send their students to KPDI for little or no money out-of-pocket. “It ’s really neat to go to different functions locally and see our students who are now garbage truck drivers, food and beverage delivery drivers, and gravel drivers doing dirt work year round, who tell us what a difference the school has made in their lives,” says Douthit. “These jobs are all integral components of a small community.”
Startup Financing and Grants
CONTRACTOR SUMMER 20C 01-M185551 THE SUPERIOR GROUP PU W/O CHG MC 09/09/20
In addition to providing the workforce that businesses need to be successful, KPEDD can also provide financing to help young startups succeed. For example, it recently helped Genevieve DeRoos, the owner of Rustic Roots in Seward, when she wanted to start her own business. “ This 19-year-old woman had just graduated from high school and wanted to start a mobile boutique capitalizing on cruise ship traffic,” says Dillon. “I’ve looked at business plans for years, and I have to say that her plan was one of the best I’ve ever seen.” K P E D D p rov i d e s s m a l l l o a n s f o r entrepreneurs who might not qualify elsewhere. “Most banks won’t write a check for someone who is only 19 to start a business,” Dillon says. “She and her father redid a bus, and now it’s the most awesome store you’ll ever see on four wheels.” KPEDD also collaborates with other economic development districts and departments to provide funding for e n t i re i n d u s t r i e s w i t h t h e g o a l o f establishing new businesses. KPEDD worked with Robert Venables at the Southeast Conference, for example, to get a $49 million federal grant to develop a mariculture industry in Alaska. “ We held a mariculture meetup with a variety of growers of geoducks, oysters, mussels, kelp, and seaweed to www.akbizmag.com
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October 2023 | 119
The RV Sikuliaq and Alaska Marine Highway System MV Tustumena came to JAG Alaska Inc.’s Seward Shipyard for repair and preservation. JAG Alaska Inc.
ask how we could help them,” explains Dillon. “What we kept hearing is that in mariculture, because it is a nontraditional industry, you can’t just walk into a bank and get a loan.” With proper financing, though, Dillon estimates that ocean farming could create a $100 million annual revenue stream for the state in the next ten years. “We are in the process of taking a pool of dollars from the $49 million we got from the Build Back Better program to backfill collateral,” he continues. “If a person has a good business plan, we will go to the bank with them, and if they need collateral to get a traditional loan, we will work on backfilling that amount for them.” KPEDD also works with businesses when they fall on hard times. When COVID-19 hit, the organization helped local small businesses apply for an Alaska Industrial Development and Export Authority program that provided up to $100,000 each to help businesses keep their doors open. “This money would help them pay mortgage, rent, electric, water, equipment, and more, so we sat down 120 | October 2023
with the business owners to help them understand what they needed to do to apply,” says Dillon. “Those who were not tech-savvy would not have gotten the money if we hadn’t helped.”
Shipyard Relationship
While it certainly helps to be centered in an economic development district, the Kenai Peninsula has other advantages as well. For JAG Alaska, which provides marine repair and maintenance for ships, the state’s northernmost ice-free deep water port provides great protection from storms and rough weather while also providing numerous opportunities to grow. “We’d made a couple runs at acquiring the Seward Shipyard prior to finally getting a deal done in 2018,” says Tim Jagielski, co-founder and executive vice president, JAG Marine Group. “At the time, the volume of vessels coming through the shipyard was extremely low, and the sheer volume of vessels either home ported or operating in Alaska waters was extremely high.” Jagielski cites a database at the time that showed 6,489 commercial fishing
vessels, 152 vessels supporting oil and gas, 576 vessels supporting the passenger and cruise trade, 296 tugs and freighters, and 108 barges operating in or passing through Alaska waters. To serve them all, he adds, “There were only two viable shipyards capable of drydocking large vessels, which were in Ketchikan and Seward.” He notes that the supply chain was m o re a t t ra c t i v e i n S ew a rd t h a n i n Ketchikan, as it is directly connected to the highway, which allows for multiple options for dealing with consumables, materials, and technical support by trucking, barging, or air. Seward is also home to the Alaska Vocational Technical Center (AVTEC), which provides a wide array of classes geared directly toward t ra d e s t h a t a l i g n w i t h J AG A l a s k a’s employee needs. “ We have utilized past graduates of AVTEC all through our workforce, a n d t h ey re m a i n a g re a t p o t e n t i a l source of employees moving forward,” says Jagielski. Since taking over the lease assignment in Seward, JAG has grown from 6 employees to approximately 147 employees. Each governmental vessel that uses the shipyard also comes with a crew of roughly 20 people and five to ten port engineers, tech representatives, and contracting personnel. “This has a direct impact on hotels, restaurants, rentals, and gas stations,” s a y s J a g i e l s k i , a d d i n g t h a t S ew a rd , w h i l e a s m a l l c o m m u n i t y, o f f e r s a wide array of support businesses t h a t c o m p l e m e n t w h a t J AG A l a s k a specializes in. He adds that the company also likes to have open discussions with all of its city, state, and federal officials. “You can literally pick up the phone and call them to discuss issues,” he says. “This is not the case in the Lower 48, at least for a business of our size.” Like many growing businesses, JAG Alaska has worked with KPEDD to connect with other businesses that can support various work items and/or specialized tasks. “They made initial introductions with AVTEC when we first came into Seward, which has really helped out across all trades of our operation,” says Jagielski. “Tim Dillon is usually our first call when we get into situations where we need assistance.”
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Is Your System Set Up to Fail? Conducting post-incident investigations By Daniel P. Hoffman
W
orkplace incidents requiring follow-up investigation fall into several categories, ra n g i n g f ro m a c c i d e n t s t h a t re s u l t in serious injuries, death, and/or major property damage to lesser events involving minor injuries and/ or negligible property damage and even extending to “near-miss” incidents which—while not resulting in direct injury or damage—expose the strong potential for such outcomes in the f u t u re . P ro g re s s i v e e m p l oy e r s a re likely to have what they believe to be a strong and comprehensive investigation p ro c e d u re i n p l a c e , e s p o u s i n g t h e need to determine the root cause(s) of accidents and near-miss incidents and to follow up with appropriate corrective actions to ensure that such incidents will not reoccur. D e t e r m i n i n g t h e t r u e ro o t - c a u s e factors that contribute to a workplace accident is a goal that should indeed be pursued, as should the subsequent formulation, implementation, and “tracking-to-completion” of proposed corrective actions that are deemed to constitute an effective response. However, as some of the more astute readers of my first paragraph likely noted, I wrote that many employers “believe” that they have a strong procedure in place when it comes to conducting such investigations. Sadly, this is often not the case.
Human Factors
First and foremost, I should begin by addressing the elephant in the room (or 122 | October 2023
on the page, as it were). I’m a former career cop, having spent twenty years in law enforcement before beginning my second career in industrial loss control and risk management. Having conducted (and supervised) countless criminal investigations—often involving the most serious aspects of human misjudgments, prevarications, and failures—I bring a perspective and experience base to the table that is understandably missing from most private-sector managers and supervisors. That said, I’m fully aware and appreciative of the fact that, to cultivate a positive and proactive culture of safety within an organization, the investigation systems and procedures should be framed within the context of identifying and correcting problematic circumstances rather than by seeking to assess blame and inflict punishment on the part of involved individuals. Unfortunately, in their well-meaning efforts to ascribe to such a standard, company executives may put policies into place that subvert the necessity to truly determine rootcause factors, thus skewing the results of their investigations. From my own experience and observations, most companies use some form of root-cause analysis to frame their incident investigation process. Further, while pursuing potential causative factors, many companies commonly break down their areas of inquiry into three main categories: 1) administrative/ procedural, 2) physical/equipment, and 3) human-caused. These groupings are
all relatively self-explanatory: a policy or written procedure that was unclear or provided unsafe or conflicting direction would fall under category number 1. Failure of a piece of equipment or physical safeguard would be an example of number 2, and an employee who failed to knowingly follow a prescribed safety procedure would be an example of number 3. Everything seems relatively straightforward, right? So what ’s the problem? Not to seem overly jaded, but as is quite often the case, people are often the biggest problem. Gaps, inconsistencies, or misinterpreted direction in written policies and procedures can usually be ascertained fairly quickly when their written content is subjected to a critical, investigative review. Likewise, determining the causative contribution of a mechanical failure is often a relatively straightforward exercise. (Although potentially contributing maintenance factors which may have led to such failures will often lead to the more problematic “human” category.) In the same manner that human conduct (such as minimization, rationalization, fearfulness, dishonesty, self-justification, et cetera, et cetera) so often complicates criminal investigations, so can these human failings lead to substantial roadblocks when conducting workplace incident inquiries.
Think Like a Detective
In their zeal to create a culture of “nonblaming, collaborative fact-finding,” I’ve
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seen more than a few companies make what I believe to be a fatal mistake in the structure of their investigative process, declaring: “We will be conducting a rootcause investigation of INCIDENT-X in the conference room at 2 p.m. tomorrow; the facility superintendent, the shift’s crew boss, the two involved employees, and two witnesses who were on scene will all be at the table as we run down the list of potential causative factors, providing input as necessary.” Sadly, this approach has already set the company up for potential failure. When conducting criminal i n v e s t i g a t i o n s , t h e re a re s o l i d a n d justifiable reasons why suspects are immediately separated and interviewed individually. And, while not trying to “criminalize” the workplace investigation procedure or place emphasis on “blame assessment,” one simply cannot expect to gain candid and truthful admissions and statements from frontline workers on a consistent basis, particularly if t h e re a re n o t a b l e i s s u e s i n v o l v i n g unsatisfactory and/or unethical supervision taking place. Think about it: if a strongly controlling, mid-level supervisor has provided unsafe and/ o r c o n t ra d i c t o r y d i re c t i o n t o t h e i r subordinates (which, unfortunately, can and does occur more frequently than we would often like to think), do you really think that those subordinates, when questioned, will feel comfortable in speaking up when seated at the table with that same supervisor? While I’m a strong supporter of seeking input from all levels of personnel involved in any workplace incident, I am also a fierce advocate for the formation and utilization of a pre-investigation review panel, which should be staffed primarily with health, safety, and risk personnel and should purposefully exclude anyone within the direct supervisory chain of the involved work crew.
appropriate protective equipment, et cetera.) • Does it appear that human-caused factors could have been the result of non-existent, poor, or improper supervision? • Have there been other incidents or anecdotal information on the jobsite indicating potential problems or issues with the involved supervisor(s)? If the answer to any of these questions is “yes”, it’s incumbent upon the company’s safety supervisor to work with senior leadership in structuring an investigation and interview process that will facilitate the open and truthful answering of necessary questions at all levels of the personnel structure. Frontline employees who were directly involved in the incident may need to be interviewed separately, away from direct supervisors, with a human resources re p re s e n t a t i v e p re s e n t t o p rov i d e assurances regarding fears of retaliation, any necessary whistleblower protections, et cetera. Don’t get me wrong: the majority of managers, frontline supervisors,
and employees are all good people, working hard on a daily basis to try and get things done in a safe and efficient manner. Unfortunately, there will be those occasional times when a supervisor is not living up to standards, and their lapses in supervision result in a workplace accident. When such conduct and behavior result in a n i n c i d e n t i n v o l v i n g s u b o rd i n a t e employees, it is not reasonable to place those employees at the same table with their immediate supervisor and then expect them to voice their honest and open feedback. After retiring from careers in public safety and mineindustry risk management, Daniel Hoffman now serves as principal for Hoffman Consulting, an Alaska-based firm specializing in emergency preparedness, crisis response, and contingency planning. A popular corporate speaker and presenter, Hoffman’s speaker profile can be viewed at: allamericanspeakers.com/speakers/426220/Daniel-Hoffman
Separate Tables
In conducting an initial review of scene evidence and discussing the most likely causative factors, the main function of a pre-investigative panel should be to determine the probability or likelihood of the following: • Does it appear that there were likely human-caused factors which led to the incident? (E.g., failure to follow procedures, failure to wear www.akbizmag.com
Alaska Business
October 2023 | 123
Scope, Schedule, and Budget Construction project managers organize the chaos By Terri Marshall 124 | October 2023
Corners tone General Contrac tors
CONSTRUCTION
W
hen Mass Excavation, Inc. (Mass X) general manager Justin Shields was in college studying construction management, he learned the mantra for his career. “For me, the foundation of project management can be summed up in three words: scope, schedule, budget,” says Shields. “We live and die by those three words in this industry.” Laying out a clear plan of action, communicating that plan, and sticking to it ensures that construction projects meet the owner’s expectations. Harmonizing all the players is the job of the project manager. The list of essential duties and responsibilities for those who assume this important role in the construction industry is a lengthy one. “A heavy construction project manager’s responsibility is to make sure that all aspects of the project are going according to plan. This includes scheduling, coordination, identifying and solving problems that arise, [and] ensuring that the project is completed on time, within budget, and according to the owner’s specifications,” explains Kelly French, the project manager responsible for overseeing all of Granite Construction’s Anchorage projects. “This involves a wide variety of tasks, such as managing construction teams; coordinating with the client, subcontractors, and suppliers; monitoring project progress; addressing any issues or risks that arise; and ensuring compliance with safety and environmental regulations.” Todd Petrie is well acquainted with the delicate balancing act required in this position. Petrie joined Cornerstone General Contractors in October 2021 as senior project manager. He already had two decades of project management experience in Alaska and the Lower 48. Notably, in a previous position, Petrie Alaska Business www.akbizmag.com
worked on the Anton Anderson Combined Vehicle-Railroad Tunnel to Whittier. At Cornerstone, Petrie’s responsibilities include the development and management of aviation-related projects and other large-scale developments. “As the construction manager, Cornerstone’s control over aspects such as timelines, costs, materials, et cetera is exercised as required to align with the project's deliverables,” Petrie says. “We focus on representing the owner's interests, skillfully managing the project's timeline, cost, materials, quality, scope, safety, a n d f u n c t i o n t o e n s u re t h a t ev e r y aspect is in accordance with their vision and expectations.” With $5.3 billion in federal construction funds coming to Alaska from the Infrastructure Investment and Jobs Act alone, project managers will be busy for years orchestrating scopes, schedules, and budgets.
“We focus on representing the owner's interests, skillfully managing the project's timeline, cost, materials, quality, scope, safety, and function to ensure that every aspect is in accordance with their vision and expectations.” Todd Petrie, Senior Project Manager, Cornerstone General Contractors
Responsibilities of Project Managers
Notable qualities of successful construction project managers include self-motivation and the ability to step into the role as a take-charge leader to supervise and provide guidance, support, and expertise to large teams. The position comes with an expansive list of responsibilities. Some of the key roles of project managers are as follows: • Effective Planning: Project managers are responsible for defining project goals, creating timelines, and allocating resources. This process establishes a roadmap for the entire construction process. • Budget Management: Estimating project expenses, monitoring budgets, and tracking expenditures throughout the construction process prevents cost overruns and ensures financial feasibility. • Allocation of Resources: Organization and allocation of equipment, labor, and materials are necessary to avoid shortages or bottlenecks that can interfere with project progress. • Risk Mitigation: Project managers develop risk management strategies, implement safety measures, identify and manage potential risks during www.akbizmag.com
Alaska Business
October 2023 | 125
A construction project manager for Mass X must bring together the excavator, the hauler, the operators, and the earth to be moved—all on the correct day. Ken Graham
“It takes a dedicated team to successfully manage each project. It can often be challenging to find qualified people to fill these roles, but as you grow and develop that team, it becomes a unit.” Justin Shields, General Manager, Mass Excavation, Inc.
126 | October 2023
construction, and address safety issues promptly to minimize work disruptions and maintain a safe working environment for team members. • Stakeholder Communication: One of the most important responsibilities lies in effective communication, which is essential in commercial construction projects. Project managers are responsible for facilitating communication among stakeholders, including owners, contractors, architects, and suppliers.
Time in the Trenches
Qualifying for a position as a project manager in the construction industry re q u i re s a h e a l t h y c o m b i n a t i o n o f education and experience. While it is possible to get into the profession right out of college, it’s not common. To i n c r e a s e t h e o d d s , d e g r e e s i n construction science, construction management, architecture, engineering, or business management are recommended. Regardless of the route
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taken, formal training in construction project management through certification or a master's program is often necessary. In most cases, project managers emerge from various roles within the construction industry like a construction manager, craftsperson, or office manager. Understanding the ins and outs of construction sites is crucial to managing the project. The best way to obtain that knowledge is by spending time in the trenches working under the guidance of an experienced project manager. As a result, most candidates start as project engineers or field engineers before assuming the responsibilities necessary to be the construction project manager. Understanding the foundation of the work comes first. It can take several years to gain the experience, knowledge, and skills required to juggle the complexities and responsibilities of managing an entire construction project.
Protocol for Contractors and Subs
Depending on the project, construction firms may serve as the general contractor or a subcontractor. Adhering to the
construction management plan is important for everyone involved from the general contractor to each subcontractor, and how each company handles its role is critical. Mass X is a civil contractor specializing in earthmoving, roads, drainage, and site development. Established in 2004, the company is now a business segment of Davis Constructors & Engineers in A n c h o ra g e . M a s s X h a s c o m p l e t e d commercial, industrial, and residential projects; public works including landfills, utilities, and waste management facilities; and a broad range of environmental work. As general manager, Shields oversees a team of project managers. “Whether Mass Excavation is serving a s t h e l e a d p ro j e c t m a n a g e r o r a subcontractor, we treat the projects the same way and continue to focus on the scope, schedule, and budget,” says Shields. “As the subcontractor for a project, we work closely with the general contractor to make sure we are in line with their plan. When we win a project as the general contractor, we sit down and develop a preliminary project schedule and send it to the subcontractors. If there
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is a schedule conflict, we work with them to establish a schedule that works best for everyone involved.” Cornerstone operates in the same manner. “ Whether we are the construction manager or a subcontractor, our lens remains the same: it is the scope and scale of the project in focus that shifts,” explains Petrie. “As the construction manager, we oversee the entire project from preconstruction to completion, seeking value engineering o p p o r t u n i t i e s a t ev e r y s t a g e . A s a subcontractor our attention is specific to our assigned scope but with the same emphasis on preconstruction and value. In both capacities our mission is to deliver the best construction experience possible.” French presents a slightly different outlook. “When you are managing the project as the general contractor, the level of detail is higher. You are coordinating across so many entities—owners, suppliers, labor, subcontractors—that you have to be extremely focused on keeping all the ducks in a row and having a complete understanding of current progress and upcoming tasks at
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Alaska Business
October 2023 | 127
to the decisions made by the general contractor. As the subcontractor, we are still held to the same requirements to meet schedules, coordinate work, and to meet specifications for our scope of work, and we have the ability to work with the general contractor when we are asked to do tasks above and beyond our original responsibilities.”
Unique Challenges
Before the siding was replaced at Mears Middle School last summer, managers had a plan for what materials would be needed at what time. Corners tone General Contrac tors
all times,” she explains. “When acting as a subcontractor, the tasks and process to complete those tasks are generally more defined. When our client is the
general contractor, there is a different relationship than when you are working for the project owner, and there are a lot of instances where you need to defer
While the responsibilities of m a n a g i n g l a rg e - s c a l e c o n s t r u c t i o n are similar throughout the country, Alaska presents its own set of unique challenges. Long winters, short summers, permafrost, and inaccessible regions across the state add to the list of issues to work around. Extreme cold temperatures can have an impact on material properties as well as the people working on the jobsite. With limited construction time available, organization and planning are vital to meet the goals of the project. “One of the most unique projects I’ve worked on dates back to before my days with Mass Excavation,” recalls Shields. “I was the project manager for
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a construction job at Fort Yukon, which is only accessible by boat or plane. We were redoing a runway out there, and it was one of the most challenging projects I’ve worked on because of project logistic issues due to the remote location. We spent the entire winter planning just that part of the project, determining what would have to be brought in by barge—supplies, fuel, food, et cetera— and how to manage that since there was a very short barging window. The first year of the two-year project was focused on mobilizing everything necessary to do the job. Finally, in the second year, we shut everything down and got the job done.” Construction companies working on public projects like roads and bridges g ra p p l e w i t h a d d i t i o n a l c o n c e r n s . The frequency and magnitude of e a r t h q u a k e s t h ro u g h o u t t h e s t a t e mandate an emphasis on seismic design. Since many of Alaska’s main highways don’t have alternate routes, keeping the bridges secure is paramount to keeping transportation moving. All of these considerations land on the to-do list of the construction property manager.
“Communication is the key to success… The plan can be perfect, but if it isn’t communicated well, the result won’t be good.” Kelly French, Project Manager Granite Construction
Communication and Teamwork
“Communication is the key to success,” says French. “The plan can be perfect, but if it isn’t communicated well, the result won’t be good.” In terms of how to execute that, French suggests investing time early in the process to connect with all the stakeholders. “Make sure they know to
expect information from you and make sure they know they can come to you with issues. Projects will always run into challenges, and the strength of those lines of communication determines how well those problems are addressed.” “One of the unique challenges we often face is reconciling the estimated budget through different design phases,” says Petrie. “While this isn't specific to any one project, it is a crucial aspect we must be prepared to effectively manage— particularly for projects of greater scope, scale, or complexity. In order to overcome this while delivering a quality construction experience, it takes teamwork and a collaborative effort to align the design, client requirements, and budget.” For Shields, teamwork is also key. “One of the most valuable lessons I ’ v e l e a r n e d i n m y c a re e r i s t h a t i t takes a dedicated team to successfully manage each project. It can often be challenging to find qualified people to fill these roles, but as you grow and develop that team, it becomes a unit. I’ve been fortunate to have an amazing group of people on my team—they are like family.”
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October 2023 | 129
ARCHITEC TURE
130 | October 2023
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WELL and RELi Design Standards Holistic approaches to healthy buildings By Rachael Kvapil
"T
he design of a building can affect the quality of people’s lives and their productivity at work,” says Dana Nunn, director of interior design at Bettisworth North in Anchorage. Nunn is well aware of the intersection of mind and surroundings: she studied chemical engineering and worked in hospitality, and now she is an accredited professional in both the Leadership in Energy and Environmental Design (LEED) and WELL building standards. “ WELL” is not an acronym for anything. It was devised by the International WELL Building Institute (IWBI) in 2013 to incorporate human comfort and mental health with environmental and engineering factors. The US Green Building Council (USGBC), which awards LEED credentials, can certify WELL as a third party, and it developed its own resilient design rating system: RELi. An evolving set of standards like WELL and RELi encourage holistic building design that focuses on the health and well-being of building occupants in addition to the efficiency and longevity of the structure. In Alaska, only a select few architects are WELL and/or RELi certified, while others are implementing parts of these standards to benefit building occupants.
Kevin G. Smith Photography
Designing WELL
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According to Nunn, the WELL standard builds upon LEED’s initial concept of a green building that analyzes how buildings can have both a positive and negative impact on the natural environment and people. Nunn says WELL focuses on additional factors such as lighting, acoustics, and access to space. Likewise, she says WELL buildings are also meant to prompt activity, maintain physiological health through ergonomics, and inspire proper health and nutrition. As the name implies, the WELL Building Standard focuses on building that impacts human health Alaska Business
and wellbeing. The point-based system measures, certifies, and monitors features of the building for its entire life cycle. The standard is upheld by IWBI, a public corporation whose mission is to improve human health and well-being through a welldesigned building environment. The initial WELL standards measured seven concepts affecting occupants, but that list expanded to twelve in 2018 with the launch of WELL v2. A holistic design addresses factors such as air, water, nourishment, light, movement, thermal comfort, sound, materials, mind, and community. Optimizing indoor air and water quality, improving lighting, and creating distraction-free, acoustically pleasant buildings with good temperature regulation seems like a straightforward concept. However, designing a building that encourages healthy food choices and positive behavior cues is less obvious, as is a structure that supports positive mental and emotional health. “When it comes to concepts like the mind, we consider what is relevant to the occupants,” says Nunn. “We look to incorporate biophilic design, cultural elements, and natural resources. It’s something that we’ve done for a long time, but using WELL standards, we’re doing it better and more deliberately.” Nunn adds that WELL design is suited to any type of building except single-family homes. Any designer can include concepts from the WELL standard; however, WELL Accredited Professionals know how to take a project from inception to certification. Ideally, designers start discussing WELL certification with clients at the start of the project since meeting the criteria will influence the team’s approach, decisionmaking, project cost, technological choices, materials, construction, and building maintenance. Designers will also help project teams decide October 2023 | 131
Accoustic boards designed with birch tree features. Bet tiswor th Nor th
whether to pursue a WELL certification for an owner-occupied building or a WELL Core certification for shell buildings implementing fundamental features to benefit tenants. Building certification is based on points awarded to the finished project. WELL and WELL Core both have four levels of certification, bronze through platinum. A building must meet a minimum of forty points for a WELL/WELL Core bronze status and eighty points for a WELL/WELL Core platinum status. Owner-occupied buildings also must earn additional points per concept in the top three certification levels. For WELL certification to remain in good standing, project owners need to apply for recertification every year. Since a commitment to a certified building standard requires ongoing funding, Nunn says many clients include elements of the standard without seeking certification.
A Building to RELi On
Though the Resilience Action List (RELi) is also a points-based system based on holistic design, the focus combines the well-being of its occupants with the resiliency of the structure. Like WELL,
132 | October 2023
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RELi is an evolution of the LEED standard but includes action items that result in a building design capable of weathering social, economic, and environmental change. Structures built using RELi guidelines are robust structures designed for community vitality despite emergency circumstances such as extreme weather or a disruptive event. A RELi-compliant building must m e e t a l i s t o f re q u i s i t e s i n s ev e n categories: Panoramic Approach, Hazard P re p a re d n e s s , H a z a rd A d a p t a t i o n , Community Vitality, Productivity/Health + Diversity, Energy/Water + Food, Materials + Artifacts, and Applied Creativity. There are four levels of certification, from entry-level certification to platinum certification, based on the number of points earned during project review. The points needed for certification range from 300 points for entrylevel to a minimum of 600 points for platinum level. Annual recertification is not required, but certification may be revoked within eighteen months if there is a successful challenge made by Market Transformation to Sustainability (MTS) or a third party.
The initial RELi standard was developed by MTS and the Chicagob a s e d d e s i g n f i r m P e r k i n s &W i l l i n 2012. From 2017 to 2022, USGBC managed certification and developed the RELi 2.0 standard but returned the ownership of the rating system back to MTS when USGBC decided to integrate resilience strategies in its flagship LEED program. Despite this shift, both RELi and WELL have paved a way for designers to incorporate, and at times substitute, L E E D s t a n d a rd s t h a t c o u n t t ow a rd prerequisites for certification. Finding a RELi-trained designer is difficult in Alaska, as several firms have opted out of point-based standards or chosen to follow a different standard, such as LEED or WELL. Nunn suspects RELi is still new enough that firms have not dedicated the time and money to certify designers. “ M y W E L L ex a m i s p ro b a b l y t h e toughest thing I’ve ever taken,” says N u n n . “ P ro b a b l y t o u g h e r t h a n m y accreditation exam. Plus, there is a twoyear recertification cycle that includes thirty-plus credits on specific topics
“We look to incorporate biophilic design, cultural elements, and natural resources. It’s something that we’ve done for a long time, but using WELL standards, we’re doing it better and more deliberately.” Dana Nunn Interior Design Director Bettisworth North
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Yukon Kuskokwim Health Corporation sitting area. Kevin G. Smith Photography
on top of my regular CEUs [continuing education units].”
Holistic Buildings in Alaska
Design standards are always going to play a role in building architecture and construction. At the very minimum, they ensure the safety and efficiency of occupants and other nearby structures. New building technologies may not necessarily be good choices for a particular building. A good designer, combined with the right design standards, will know which technologies to adopt. “Like LEED, we have to remember that these newer standards are just a tool and not an end-all solution,” says Nunn. “They equip project owners and design teams with the tools and guidance for an environmentally positive building that benefits the people inhabiting the building.” According to IWBI, investing in WELL-certified buildings has shown 134 | October 2023
Office design with desk spaces in a vibrant color scheme with plants provided by Green Connection.
Interior design mood board displaying fabrics, colors, textures, and other materials.
Bet tiswor th Nor th
Bet tiswor th Nor th
measurable success. Recent summary reports identified $200 billion in productivity gains among US office w o r k e r s , a 2 8 p e rc e n t i n c re a s e i n worker satisfaction, and an 8 percent i n c re a s e i n e m p l oy e e p e r f o r m a n c e due to improved air quality. The full report goes into further detail about s t re n g t h e n e d re a l e s t a t e re t u r n s , i n c re a s e d d i v e r s i t y, a n d b e t t e r investment decisions. Designing a building for either WELL or RELi certification is highly achievable in Alaska. Nunn says that Bettisworth North has implemented WELL standards in many urban and rural buildings, including prisons, office spaces, healthcare clinics, military facilities, and schools. The firm even designed its new office using the WELL standard, though it chose not to apply for certification. “It’s the right thing to do, whether or not our clients ask for us to meet these standards or plan on applying for certification,” says Nunn. “As long as the
design solution fits the goals and budget, then it’s good for the community.” Aside from the cost of certification and ongoing renewal fees, Nunn feels clients don’t necessarily understand point-based standards. Likewise, she says conversations about design standards, when they happen, either don’t happen early enough in the process or don’t include all the stakeholders. Since buildings are designed to benefit the occupants, she feels their input provides insight into how people operate in these spaces. For example, consulting with human resources managers may result in a design that improves recruitment and retention, input from safety managers may reduce employee risk, or the right room may influence how businesses develop strategies or make financial decisions. As people become more familiar with WELL and RELi standards, Nunn suspects more people will implement the concepts and possibly pursue certification.
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Mammography on Wheels Breast cancer screening goes mobile By Vanessa Orr
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Breas t Cancer Detec tion Center of Alaska
ne out of every eight women will develop breast cancer in their lifetimes. With early detection, the disease is easier to treat, surgeries are less invasive, patients can take less medication, and patients experience better outcomes overall. In Alaska, the American Cancer Society estimates that 520 new female breast cancer cases will be diagnosed in 2023, and 60 women will die of the disease. One of the best ways to intercept the disease in its earliest stages, however, is through mammography, which detects breast cancers, benign tumors, and cysts before they can be felt by touch. In fact, early detection with screening mammography can decrease mortality from 30 percent to 15 percent.
136 | October 2023
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“ E v e r y t w o m i n u t e s , a w o m a n where they might also be encouraged to i s d i a g n o s e d w i t h b r e a s t c a n c e r, ” get the screening done. Alaska faces an additional explains Jacyn DeBaun, issue: finding a place to get a executive director of the mammogram in a remote area. Breast Cancer Detection One of the biggest hurdles is Center of Alaska (BCDC). geography, with the nearest “With mammography, we can mammography unit sometimes detect cancer at its earliest hundreds of miles away. stage, which is Stage 0. If “ To g e t a m a m m o g r a m , caught then, it is 99 to 100 you have to have the physical percent survivable. It so mammography unit to important to catch it then provide images,” explains Dr. for the five-year survivability Jacyn DeBaun Breast Cancer Detection Heather Tauschek, medical r a t e , v e r s u s f i n d i n g Center of Alaska director at Providence metastatic Stage 4 cancer or finding it at Stages 1, 2, or 3 when I m a g i n g C e n t e r. “ W h i l e p l a c e s l i k e there is a lower chance of survivability.” Kotzebue and Nome have their own Unfortunately, many women don’t take mammography units, getting patients advantage of this life-saving technology. in far-flung villages to those locations is In addition to the difficulty of fitting very challenging, creating both a cost and a mammogram into a busy schedule, geography barrier.” some women are reluctant to have the screening because they think it might be On the Road painful or uncomfortable, and some are To provide Alaska women with the afraid to hear the diagnosis. h e a l t h c a re t h ey n e e d , P rov i d e n c e DeBaun adds that, since COVID-19, Imaging Center and the BCDC have there has been a decline in the number established mobile mammography units of people getting back in to see their that travel the state, providing these physicians for standard well-checks, screening tests to women who might
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Alaska Business
“Alaska terrain is hard on vehicles, especially where we go. Our new unit will feature a more appropriately sized motor, all-wheel drive, a smaller yet more powerful power system, and just be all-around more comfortable and inviting.” Jacyn DeBaun, Executive Director Breast Cancer Detection Center of Alaska
October 2023 | 137
otherwise not have access. Not only t h o u g h S ew a rd i s g e t t i n g i t s ow n do these mobile units provide the tests mammography unit. The BCDC unit, a 34-foot Freightliner themselves but staff also provide breast cancer education and information to the built specifically to be a medical facility on wheels, travels all across the state, communities they serve. The Providence Imaging Center Mobile including twenty-one communities that Mammography coach, in partnership would not have access to mammography with Providence Cancer Center and without it. In addition to its clinic in P r o v i d e n c e A l a s k a F o u n d a t i o n , i s Fairbanks, the BCDC serves areas north centered in Anchorage and serves people of the city, as well as Tok in the eastern Interior, parts of the Kenai at a combination of local sites. Peninsula, as far southwest as It also takes breast cancer Dutch Harbor, and numerous screening to more distant cities in Southeast. locations, including those “ We p a r t n e r w i t h o t h e r accessed by the Alaska Marine health agencies such as the Highway System. S o u t h c e n t ra l F o u n d a t i o n , “We may be parked Southeast Alaska Regional locally at ConocoPhillips Health Consortium, and the [ i n D ow n t ow n A n c h o ra g e ] Metlakatla Clinic, and we also so that women working in h a v e c o n t ra c t s w i t h l a rg e businesses around the area Heather Tauschek Providence Imaging Native associations and can get mammograms in the Center foundations and work with parking lot,” says Tauschek. “Our broader route takes us to places local clinics,” says DeBaun. “We usually like Glennallen, Valdez, Cordova, and park our truck in their parking lots, other small villages and towns across which enables them to let patients know that we’re coming so they can book the state.” She notes that the mammogram unit appointments, and we’ve also found has also served the Kenai Peninsula, that aligning with community resources
that patients are familiar with makes them more comfortable and more willing to come in and get a screening done.”
Ready to Roll
Women who visit the BCDC mobile unit get checked in just like at the clinic and speak to a staff member who takes their medical history. The tomography machine is in a private exam room. After their screening, patients leave through a door at the rear of the unit. After a year-and-a-half of fundraising, BCDC is in the process of getting a brandnew mobile unit, which should be ready to roll next spring. “We’re retiring our first mobile unit, which we’ve had for twelve years,” says DeBaun. “Alaska terrain is hard on vehicles, especially where we go. Our new unit will feature a more appropriately sized motor, all-wheel drive, a smaller yet more powerful power system, and just be all-around more comfortable and inviting.” Technology has changed since 1995, when mobile mammography was introduced to Interior Alaska. “Back then, it was just a 2D mammography
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machine that folded in half that was put in a 12-seater van or flown to rural communities. It wasn’t until 2011 that we got the first full mobile mammography truck,” DeBaun recalls. Providence Imaging Center is now o n i t s t h i rd m a m m o g ra p h y c o a c h , which provides the same high-tech 3D mammography used in larger imaging centers, just in a much smaller space. “It just happens to be in a unit that can move,” says Tauschek.
Settling the Bill
Before arriving at a location, Providence’s mobile mammography coordinator works with each site, letting them know when it will be there so that they can schedule patients. The unit can typically accommodate walk-in patients as well. Screening mammography is usually covered by insurance and does not require doctors’ orders. In addition to taking all forms of insurance, BCDC also has its own in-house Mammography Assistance program that helps cover the costs and co-pays for those who can’t afford it.
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“We don’t want not having the ability to pay to be a hindrance,” says DeBaun. “They don’t have to apply for this help; they just check a box that says ‘don’t bill me,’ and we’ll cover it through money raised through nonprofits and from fundraising. We also work with Alaska Breast and Cervical Screening Assistance Program [ABCSAP], a Medicaid program for Alaska women.” P rov i d e n c e I m a g i n g C e n t e r a l s o works with ABCSAP, and the Providence Alaska Foundation may be able to cover screening mammography costs for patients who do not qualify financially for other breast and cervical services. After a visit, BCDC sends a letter to patients with their results so that patients can work with their primary care physicians if care is needed. “One of our requirements is that patients do need to have a primary care provider [PCP]; if they don’t, we work with some doctors that will see patients at Chena Health in Fairbanks and at Interior Community Health Clinic. We also work through Southeast Alaska Regional Health Consortium to get them connected to a PCP so that, if we find
Alaska Business
“While places like Kotzebue and Nome have their own mammography units, getting patients in far-f lung villages to those locations is very challenging, creating both a cost and geography barrier.” Dr. Heather Tauschek Medical Director Providence Imaging Center
October 2023 | 139
A doctor’s referral is not necessary to schedule a mammogram, but patients should have a primary care physician to discuss the results. Providence Imaging Center
“These people are living in a healthcare desert, so anytime someone is willing to come in and offer these types of services, they get a warm reception.” Jacyn DeBaun Executive Director Breast Cancer Detection Center of Alaska
From its headquarters near Fairbanks Memorial Hospital, BCDC dispatches its pink Freightliner to Tok, the Kenai Peninsula, Southeast, and even Dutch Harbor. Breas t Cancer Detec tion Center of Alaska
something, we know that they have a PCP to follow up with them to get them the care they need.” While driving a mobile mammography unit all over Alaska can be quite a c h a l l e n g e , Ta u s c h e k s a y s t h a t i t i s more than worth it to help catch breast cancer early. “ We’ve definitely had technical challenges—sometimes the generator goes out, and being able to transfer images depends on the bandwidth in 140 | October 2023
an area, so sometimes techs have to wait to download images until they’re back in Anchorage or Valdez or Seward,” she says. She notes that there are also a lot of wear-and-tear issues, like those caused by frost heaves in Tok, and mobile units also require a technician who is comfortable driving a large truck, backing the vehicle up, getting it on the ferry, and squeezing into some pretty small places. “We do this because of its impact on
patient lives,” Tauschek says. “We want to improve breast cancer survival rates.” While the rates of women diagnosed with breast cancer in Alaska are similar to rates in the rest of the country, certain populations are at higher risk. Approximately 10 percent of women across the country are at elevated risk because of family histories and genetic mutations. “It’s not just an Alaska problem, but a nationwide problem,” Tauschek says.
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Mobile mammogram vans serve remote communities along the Alaska Marine Highway System, so drivers must be skilled enough to squeeze the vehicles into the car deck of a state ferry. Eli Duke
“We do this because of its impact on patient lives… We want to improve breast cancer survival rates.” Dr. Heather Tauschek, Medical Director, Providence Imaging Center
“While I can’t quote research to this effect, anecdotally I think we see more advanced breast cancer cases here because of the geographical constraints,” she adds. “Patients, including our large immigrant populations, are not getting the screenings they need.” She adds that if patients need more serious follow-up treatment, such as a lumpectomy, they must travel to a critical access hospital in Fairbanks, A n c h o ra g e , t h e M a t a n u s k a - S u s i t n a Borough, or another urban hub. “Similar to chemotherapy, they need to go to a larger population center just because of the availability of specialists, and that can be a barrier to care as well,” she notes.
A Welcome Reception
To date, Providence Imaging Center h a s p rov i d e d m o b i l e m a m m o g ra m services to approximately 1,500 patients around the state. “The mobile unit is utilized, for sure. And patients appreciate not having to 142 | October 2023
come into Anchorage,” says Tauschek. “The handful of patients that get called back for extra imaging because they had a change in their mammogram or because we find something do find it frustrating to have to come to Anchorage for a follow-up. But, at the same time, they appreciate that they are getting a service they wouldn’t have had otherwise.” The BCDC, which was started in 1976 as an Alaska nonprofit by women for women, provides approximately 2,700 women with mammography screenings each year through their clinic on Cowles Street and the mobile mammography unit. “We really do get a good response,” says DeBaun of the roughly 800 women a year who use the mobile service. “These people are living in a healthcare desert, so anytime someone is willing to come in and offer these types of services, they get a warm reception.” She says the welcome is especially heartfelt in ferry-accessible places.
“Sometimes we can’t be there for more than a day or two because of the ferry schedule, so our techs and support staff will stay open until 11 p.m., knowing that they have to leave the next day,” she adds. “If women need to come in after work or after dinner, or however we can see them, we will be there as long as they keep coming.” DeBaun is an especially strong p ro p o n e n t o f s c re e n i n g a n d e a r l y detection because of her personal ordeal. At the age of 36—four years before the suggested age for a mammogram— she found a lump and got screened. Diagnosed with Stage 3 invasive ductal carcinoma, she says that today she is alive and thriving because of that screening and the quick care of her Fairbanks physician. She says, “I am passionate about this mission and consider myself very fortunate to work at BCDC and to connect with Alaska women and cancer survivors.”
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Trident Seafoods
FISHERIES
Fifty Years of Trident Seafoods Founder's vision transformed the fishing industry By Dimitra Lavrakas 144 | October 2023
M
cDonald’s and Long John Silver’s c a n t h a n k C h u c k B u n d ra n t for the enduring success of their fish filet sandwiches. The founder of Trident Seafoods convinced the chain restaurants to switch from cod to pollock in the late ‘80s. That coup alone is indicative of Chuck’s fertile mind, an entrepreneurial drive that powered him from owning his first vessel, a 135-foot crab boat F/V Billikin, to a company-owned fleet of more than thirty vessels ranging up to 356 feet. F ro m Te n n e s s e e t o t h e w i l d s o f Alaska’s ocean, Chuck took a leap of faith in himself. Having arrived with friends who left Alaska after the summer, he stayed and parlayed the $80 in his pocket into a fish industry empire. “Chuck was a humble and conservative fisherman,” his son Joe Bundrant says. “He grew up on a farm and learned to save in the good years to carry the bad years.” And there were bad years. Bundrant recalls, “He had no distribution network—he had to build it through sheer grit and determination. In the beginning, dad caught, processed, and sold crab to restaurants and neighbors.” Bundrant, now the CEO of Trident Seafoods, says his father didn’t set out to build a large company. “He just wanted to do honest work, focus on stakeholders, reinvest, and develop people,” he says. “He believed if you did those things well, the rest would follow.” And it did. The privately held American c o r p o ra t i o n i s t h e n a t i o n’s l a rg e s t vertically integrated seafood company. It owns a fleet of vessels working in Alaska waters and sixteen shore plants and support operations in Akutan, Anchorage, Chignik, Cordova, Dillingham, Dutch Harbor, False Pass, Ketchikan, Kodiak, Naknek, Petersburg, Sand Point, St. Paul, and Wrangell. Tr i d e n t o p e r a t e s t e n L o w e r 4 8 locations, including processing and production plants, shipyards, an innovation center, and a Seattle support center. The company also has eighteen international value-added processing plants and sales offices, and it recently established a branch office in Tokyo, Japan, to serve customers there.
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Its brands include Trident Seafoods, Louis Kemp, Alaska Pure Omega, Alaska Naturals, and Pure Catch. In the Alaska Business 2023 Corporate 100, ranked by the number of Alaska employees, Trident Seafoods came in third. Trident employs some 9,000 people, including seasonal workers. “We believe that investing in people and infrastructure are synonymous with integrity,” says Bundrant. “Trident exists to serve, and we ensure our longevity and our continued ability to serve through these reinvestments.”
The 300-foot Starbound is one of three Trident trawl catcher/processor vessels that harvest pollock in the Bering Sea during the late winter and summer months, employing 100 workers. Trident Seafoods
Handing Over the Wheel
Chuck turned the company over to his son in 2013. Thanks to Chuck, Bundrant was no stranger to the sea, having gone fishing with his father since he was 13, working the Bristol Bay salmon season in the summer. Bundrant says he often thanks his d a d f o r b e i n g s o h a rd o n h i m a n d teaching him the value and rewards of hard, honest work. He recalls his father’s adage, “We may not be the smartest, and we may not be the best looking, but nobody will work harder than us.”
“It’s important to think long-term in this industry… We don’t make decisions for this year or next year. We make decisions for the next generation.” Joe Bundrant, CEO, Trident Seafoods
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“We believe that investing in people and infrastructure are synonymous with integrity… Trident exists to serve, and we ensure our longevity and our continued ability to serve through these reinvestments.” Joe Bundrant, CEO, Trident Seafoods
In 2021, Chuck passed away at age 79 at his home in Edmonds, Washington. In a New York Times obituary, he was lauded as the “Henry Ford” of Pacific f i s h e r i e s f o r h i s i n i t i a l i n n ov a t i v e approach to processing crab on board F/V Billikin. Essential to Chuck’s vision was his respect for people, also something that Bundrant carries on. “ O u r a p p re c i a t i o n f o r t h e m a n y stakeholders who got us to where we are today ” is part of that vision, says Bundrant. “Our philosophy has always been to acknowledge the unique needs of all stakeholders and to serve each to the best of our ability. Without the efforts of all our stakeholders, Trident would not be celebrating today.” Celebrations kicked off on January 31, which would have been Chuck’s 81st birthday. Trident plans to celebrate with as many employees and communities as possible around the world. In Alaska, its executive team celebrated in February and June with employees and communities in two week-long trips to most of its locations.
“Our anniversary is centered on two sentiments: appreciation and optimism,” Bundrant says.
Giving Back to Communities
Bundrant says there are four rules for family members who want to work at Trident: 1) Get a college education; 2) spend at least two summers in Alaska (because if you haven’t stood on a cold, wet boat then it’s difficult to truly understand what employees go through); 3) do something outside of Trident Seafoods before coming into the company; and most importantly, 4) have the heart of a servant leader. Bundrant left for seven years, and Chuck called him back during the ConAgra Brands deal in 2006, when ConAgra Foods of Nebraska sold all of its seafood businesses to Trident. The company’s largesse in giving back to its communities is well known. In 2022, Trident donated 14,681 pounds of seafood to the Southeast Alaska Food Bank in Juneau through the non-profit organization SeaShare,
BE PREPARED By Janis Plume, Senior Account Manager
Our troop leader repeatedly said, “be prepared,” when I was a young Boy Scout. That was never more true than when we got ready to go on a winter camping trip. You don’t head out into the frozen wilderness without the basics that will not only help safeguard your survival but will also lead to a rewarding experience. The same holds true for your business, which will require steadfast preparation of your marketing activity. Not only do you want to survive—you want to succeed! In October we’re at the doorstep to another Alaska winter. This is the time to prepare for 2024. You may still be gathering the “nuts and berries” of this year’s bounty, but in order to have such a
harvest next year you must also prepare for what lies ahead. Your Alaska Business account manager can help you with preparations. We can get you into a state of solid marketing preparedness by talking with you to learn more about your goals, challenges, and even budget limitations. Armed with this information, we’ll work with you on developing the most effective advertising plan to reach your target market with print and digital media solutions offered by Alaska Business Publishing Co. Contact your account manager and set up a time for a fruitful discussion that will lead to a state of marketing preparedness that you can count on. We’re ready to help you “be prepared.”
A smile is worth a thousand words Before joining Alaska Business, Janis was a ‘jack of all trades’ in Alaskan advertising for over two decades, working at some of Alaska’s best ad agencies. While he is pretty capable with a camera and loves photography and graphic art, he’s quick to say, “I’m not a graphic designer, and I don’t play one on TV.” He is, however, pretty handy at working one on one with clients seeking advertising solutions in Alaska Business. Janis is a product of the UAA JPC program and believes the pursuit of knowledge and professionalism are lifelong endeavors. When not helping advertisers, Janis celebrates his love for fish and music with a guitar in one hand and a fly rod in the other.
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which provides seafood to food banks throughout the United States. In 2019, Captains for a Cure raised $380,000, exceeding its goal of $250,000, for a research grant on Parkinson’s disease with the help of Trident and in honor of Chuck, who was diagnosed with the chronic condition in 2006. In April, wild Alaska pollock, considered one of the world's most sustainable proteins, was named the official whitefish of Climate Pledge Arena and the Seattle Kraken hockey team. It is being featured on menus throughout the arena. Trident, a member of the Association of Genuine Alaska Pollock Producers, announced its partnership with the arena and team and pledged to bring 32 million sustainable seafood servings to people in need by 2024 through its partnership with SeaShare. Bundrant says he learned from his father: “The most important things in life are faith, family, hungry, and humble, and to serve others every day.”
Fishing into the Future
“It ’s important to think long-term in this industry,” Bundrant says. “We
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Joe and Chuck Bundrant, pictured with F/V Kodiak Enterprise. On April 8, 2023, the vessel caught fire at the Trident dock in Tacoma, Washington, and was declared a total loss. The company fleet includes three other trawl catcher-processors. Trident Seafoods
Alaska Business
October 2023 | 147
Boxes of f ish move quickly down the line on a processor. Trident Seafoods
“How we conduct business and how we treat people will never change; it’s ingrained in who we are… We are facing big challenges, and we will meet these challenges by working with our stakeholders, as we have always done.” Joe Bundrant, CEO, Trident Seafoods
don’t make decisions for this year or next year. We make decisions for the next generation.” In 2022, Trident started work on building a 1,500-foot sheet pile dock in Unalaska’s Captains Bay. The sheet pile dock will support a new processing plant in Unalaska, which was originally slated to break ground in 2024; in August the company announced the groundbreaking is postponed until 2025. The company has projected a three-year build plan, which means the new processing plant will be operating in 2028 at the earliest. According to an August release, “This decision reflects an unprecedented confluence of high inventory levels, low consumer demand, and aggressive price competition in global markets. These forces have driven prices down rapidly and across species—all while high global inflation and rising interest rates are driving up operating costs.” Bundrant commented in August: “I’ve been in the 148 | October 2023
industry a long time and I’ve never seen markets like this.” The new processing plant at Captains B a y w i l l re p l a c e Tr i d e n t ’s ex i s t i n g facilities at Akutan, a move the company recognizes will have a significant effect on the village. “We’re working closely with the village of Akutan to soften the impact of Trident’s eventual move to Unalaska,” Trident Executive Vice President of Public Affairs Stefanie Moreland explained in August. Dutch Harbor, connected to Unalaska by a bridge, has been the number one commercial fishing port in the nation by volume of landings for the past twenty years. Its largest fishery is pollock, with catches of more than 1.5 million metric tons per year. “That’s why, for the next five years, our focus will be on reinvesting in vessels and facilities. We want to invest in the infrastructure to support the business for years to come,” Bundrant says.
The Unalaska project will put Trident Seafoods cheek to cheek with Unisea, which has bunkhouses, cold storage, and processing facilities across that bridge in Dutch Harbor. It is a subsidiary of the Nissui Corporation of Japan. H ow ev e r, Tr i d e n t S e a f o o d s s e e s the construction at Captains Bay a s a c h a n c e t o m a k e a p ro c e s s i n g plant that is modern, efficient, and environmentally responsible. “How we conduct business and how we treat people will never change; it’s ingrained in who we are,” Bundrant says. “What will change is the science and technologies required to continue advancing the fishing industry. And we will be at the forefront of that change. We are facing big challenges, and we will meet these challenges by working with our stakeholders, as we have always done. Not many companies make it to fifty years, and we don’t take anything for granted.”
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BALANCED BOUNDARIES
Work Wellness Alone Isn’t Enough It’s time to address our work structures By Woodrie Burich 150 | October 2023
I
t’s time to talk work structures instead of just work wellness. According to the Global Wellness Institute, work wellness was a $52 billion dollar industry in 2019, with the overall wellness economy estimated at $4.4 trillion in 2020. With all that budget going towards wellness, it sure seems work stress issues should be solved by now—that is, if wellness alone could solve them. Historically, work wellness has primarily focused on support at the individual level. What started off as gym memberships and fancy cafeterias has more recently shifted toward trainings and support for more self-care, self-agency, and healthier personal work habits. Yet lately this is getting some scrutiny. Work wellness is a bit more nuanced than just what a single individual can do personally; we need to take into account other factors such as corporate culture, power dynamics, workflow structures, healthy workloads, and multiple other variables if we want real change. We’ve been missing a key aspect by only addressing work wellness through an individual wellness lens, and this has led to mixed outcomes. Focusing on individual wellness is great—in fact I’ve argued that it’s absolutely necessary. Self-agency is a vital component to addressing work stress. However, it’s not the only component. It’s just one component. The other component is work structures. We need to start addressing workflows, workload management, program and project ebbs and flows, and our fundamental approach to how we engage our work at a team and organizational level.
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Often it’s the work structures that keep us “stuck” in the hamster wheel, running a mile a minute and not being able to pause. These are the structures that hold us back from our fullest potential—at the individual, team, and organizational level. To really address work wellness and capitalize on the benefits of it (stronger e n g a g e m e n t , re t e n t i o n , c re a t i v i t y, and better decision making), we need to spend some time understanding these structures so we can start to change them. Here are three ways to begin addressing work wellness by shifting your work structures.
Create and Commit to Strategic Space
We are living in a world of decision overload, well-documented overwhelm, a n d h i g h s t re s s l ev e l s , a n d w e a re experiencing extremely turbulent times of change (e.g., generational s h i f t s , a n i n c re a s i n g l y g l o b a l w o r k e n v i ro n m e n t , A I a n d f u n d a m e n t a l technology shifts, not to mention COVID-19 and adjustments to hybrid work environments).
We need the time and space to reflect on ourselves, our peers, our teams, and our work worlds. We need time to process everything that is rapidly evolving and changing around us. We need time to make solid and sound decisions. And we are sorely lacking this time. The greater your responsibility, the more necessary this becomes. In fact, a leader’s commitment to strategic space is a key indicator of effective leadership. I’ve witnessed this time and time again. Interesting side note: In Tim Ferriss’ bestselling book Tools of Titans, where he summarizes his top interviews with elite performers from a variety of fields (e.g., Arnold Schwarzenegger, Jamie Foxx, Chris Sacca from Shark Tank, Brené Brown, and many more), he cites the single most consistent pattern amongst all these high achievers is that more than 80 percent of them had committed to meditation or a mindfulness-based practice. Strategic. Space.
Review Work Trends for Peaks and Valleys
Take a close look at your teams. How are they truly doing? Are members
staying late and working into the evenings? How about emails—do you see many after hours? What’s their energy level and engagement like throughout the day? I come from tech and worked as a strategic consultant on enterprise-level programs. One thing I noticed was that, for many national and even global programs, many members of the core team often rotated together from project to project. This was sometimes due to a combination of specific subject matter expertise, a high level of program-specific experience, and it offered an added value of a team with prior experience working together in various venues. This is great—until it isn’t. Core team members who rotate from high-stress and high-pressure projects one after another (without breaks) are at risk of burnout. Especially programs with high-stakes deadlines with no break or buffer in between. A few months ago, I was speaking with an executive leader about restructuring their high-performing program team to incorporate periods of “proactive rest” for a handful of their members.
We need to stop looking at wellness
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training” or boxchecking activity and that focused effort in Sandy Holmes this space will create Photo by
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Why? Because the benefits of a rested team affect performance and outcomes, and this executive was smart enough to realize it. We also explored how to stimulate creativity and innovation bursts for their organization through these structured rest periods. Reflect on your own teams. Who needs breaks? Has everyone on the team had a “valley” in order to rest and re-energize before they climb their next “peak”? How are you capitalizing on this time? Consider this as a harsh reality check: a while back I was speaking with a team member from a program where multiple people on the same program team had died of either heart attacks or strokes within a six-month time frame.* The behind-the-scenes rumors were that these deaths were all related to work stress, specifically the high pressure and unrealistic deadlines. Now let ’s pause for a moment to really let this sink in—the impact at the individual level. Family level. Community level. The unspoken belief was that overwork was at the core of the deaths, t h o u g h n o t h i n g w a s ev e r c i t e d o r proven on record. Certainly, the notion of deaths from work stress is backed by significant research from well-reputed sources, including the International Labor Organization. In Japan, there’s even a name for this: karoshi—death by overwork. Some researchers claim that America is facing our own karoshi crisis. For an in-depth analysis, the book Dying for a Paycheck by Stanford Organizational Behavior Professor Jeffrey Pfeffer provides examples. Now, regardless of cause, let’s just reflect on the impact that this team’s perception of the high pressure and those deaths had on that organization. What do you think that pressure was doing to team morale? What about the quality of outcomes? How about error rates? Do you think it impacted the reputation of that organization? Do you think it impacted who stayed and left that program team? You bet it did.
Support Teams with Boundaries and Workload Response Plans
Plan and execute. We are good at this stuff, right? As leaders, we know how to develop a plan and execute against that plan. It ’s time we start applying it to the world of work wellness. One way is to 152 | October 2023
We need to start addressing workf lows, workload management, program and project ebbs and f lows, and our fundamental approach to how we engage our work at a team and organizational level. Often it’s the work structures that keep us “stuck” in the hamster wheel, running a mile a minute and not being able to pause. simply include it as part of strategy development; another way is to incorporate it into a team project plan or at the onset of a program. This can be done internally or externally through the support of consultants and some basic educational training. One client of ours has had a High Workload Response Plan in place for nearly four years.* It helps them manage and navigate through their peak stress period (they have a “busy season”). They plan for the busy season about three months in advance. As with any well executed plan, they track it. They monitor progress. They make it fun and celebrate their wins. They ’ve had such success with it, it is now part of their yearly
planning process. I have another client who developed a personal plan and integrated stronger work boundaries based on some coaching and training with us.* He planned his days more intentionally. Set up strategic space and time for himself. He even received a major promotion due to his increased energy, newfound creativity, and improved work outcomes from his efforts. But here’s the real story: a major personal health emergency with an immediate family member arose unexpectedly. He was under extreme personal stress and was bedside at the hospital for multiple weeks straight. We spoke just after he had this experience. His comment: I don’t think I could have managed all that without this work on boundaries. Sometimes we can’t plan for something—but we can prep for it. H e re ’s t h e b e s t n ew s : h i s f a m i l y member is healthy again. And here’s the good news: he had cultivated skills, tools, and the support he needed when he truly needed it—and he continues to thrive at work. Bonus: he’s sharing and teaching these skills to others too. I t ’s t i m e w e s t a r t c re a t i n g w o r k structures that honor our needs and optimize our full potential— individually and collectively. We need to stop looking at wellness as just a simple “side training” or box-checking activity and consider the possibility that focused effort in this space will create stronger teams and stronger outcomes. As we strategically shift our approaches to work, we will not only improve our health and business outcomes but also contribute to sustainable, resilient, and innovative corporate environments that positively impact our communities. Wellness— only amplified. *Client stories slightly altered to ensure confidentiality. Woodrie Burich is an award-winning thought leader, TEDx speaker, and Forbes Coaches Council member. She drives business outcomes through work boundaries and may be found at workboundaries.com.
Alaska Business www.akbizmag.com
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ANCHORAGE FAIRBANKS
SAFETY CORNER
Before a Fall New emphasis on reducing fall-related injuries By Sean Dewalt
O
n May 1, 2023, the US Occupational Safety and Health Administration (OSHA) announced a new National Emphasis Program (NEP) with a focus on reducing f a l l - re l a t e d i n j u r i e s a n d f a t a l i t i e s . This announcement purposefully coincided with the start of the National Safety Stand-Down to Prevent Falls in Construction, which concluded on May 5, 2023. The goal of this NEP is to “significantly reduce or eliminate unprotected worker exposures to fall-related hazards in all industries that can result in serious injuries and deaths.” OSHA intends to utilize a combination of enforcement methods for the construction industry, i n c l u d i n g h a z a rd - b a s e d i n s p e c t i o n targeting as well as optional locally g e n e ra t e d p ro g ra m m e d t a r g e t i n g . Along with federal OSHA Region 10, which has jurisdiction at many jobsites in Alaska, this program has been adopted and implemented in Alaska u n d e r P ro g ra m D i re c t i v e 2 3 - 0 5 by Alaska Occupational Safety and Health (AKOSH). These inspections are slated to last three years. According to OSHA statistics, falls accounted for 13 percent (5,369) of the 40,531 fatalities in all industries in the last eight years, and fatalities caused by falls continue to be a leading cause of death for all workers. The risk of an OSHA inspection for c o n t ra c t o r s w i l l i n c re a s e , a s t h e s e programs are designed to focus on the construction industry. According to a 154 | October 2023
Now is the time to doubledown on your company’s efforts to reduce falls in the workplace. If you received the letter from AKOSH, the likelihood of an inspection is high. June 29, 2023 letter sent by AKOSH, selected businesses “are likely to receive an unannounced enforcement inspection starting ninety days after the date of this letter.”
Focused Inspections
The list of targeted operations began with a search of state business licenses with National Association of Insurance Commissioners codes pertaining to fall exposures in general, construction, and maritime industries. From that search, 8,071 businesses were then filtered down by region, with a focus on the most populated areas (eighteen cities and towns), to 5,921 companies. For the final list, 500 businesses were randomly selected by AKOSH staff. An additional list of non-construction activities focused for inspection are also included in the program directive. T h e s e i n c l u d e ro o f t o p m e c h a n i c a l work and maintenance, utility line work and maintenance (electrical, cable), arborist/tree trimming, holiday light installation, road sign maintenance and billboards, power washing buildings (not connected to painting), gutter cleaning, chimney cleaning, window cleaning, and communication towers. These focused workplace inspections were scheduled to begin in September at both the federal and state level. For other non-construction work activities where a worker is observed by a Compliance Safety and Health Officers (CSHO) working at height, an inspection may be initiated upon approval by area office management. These observations “may occur during the CSHO’s normal workday travel or while en route to, from, or during, other OSHA inspections.” This means that if your worksite is in “plain view” and an unmitigated fall exposure
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exists, an inspection is likely to happen. E s p e c i a l l y i f a p e rc e i v e d i m m i n e n t danger exists. OSHA currently employs nine f u l l - t i m e C S H O s i n A l a s k a . O S H A's maximum penalties for serious and other-than-serious violations that CSHO’s may find during an inspection increased in 2023 from $14,502 per violation to $15,625 per violation. If a company has a previously adjudicated citation (Final Order) for a violation that meets a substantially similar c o n d i t i o n , a re p e a t c i t a t i o n c o u l d be issued. The maximum penalty for a repeated violation is $156,259 per violation. Under a 2018 decision out of the 2nd Circuit Court of Appeals, Triumph C o n s t r u c t i o n C o r p . v. S e c re t a r y o f Labor, “neither the OSH Act nor the regulations promulgated under the Act set forth any time period that limits the issuance of repeat citations.” The court cited previous OSH Review Commission precedent that the time limitation set forth in the Field Operations Manual “is only a guide” and “is not binding on OSHA or the Commission.” In
other words, OSHA is not restricted to looking back to only a certain period of time in classifying violations as repeat. Not so for state authorities: AKOSH l o o k s b a c k f i v e y e a r s f o r p rev i o u s citations that can be used to illustrate a repeat violation.
Top-Down Protection
Solutions for and mitigation of falls from heights begins with ownership and management of the company. The top-down approach, deciding at the senior management level that safety is paramount, is key. A proactive safety culture that begins with employee trust and demonstrating to workers the core value of the “why we do this” tends to yield good results and reduce risks. When employees and senior management are equally engaged and aligned in a safety-first workplace, a quality safety culture can be achieved. This often starts with formalization of safety programs and policies that can define the processes and procedures that will be the baseline for the company’s overall safety goals. Rewarding employees for safe operations, good
Solutions for and mitigation of falls from heights begins with ownership and management of the company. The topdown approach, deciding at the senior management level that safety is paramount, is key.
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Alaska Business
October 2023 | 155
Combining an on-site training program with frequent workplace inspections will help ensure employees are working safely. Documenting the inspections and reviewing findings with upper management and owners helps to maintain alignment.
decision-making, using a job hazard analysis, conducting audits and safety meetings, and following written plans and procedures positively reinforces their efforts. Formalized, written fall protection programs are required by OSHA in many circumstances. These written plans should include site-specific plans, and the employer has a duty to provide a training program for each employee who might be exposed to fall hazards. The program should enable each employee to recognize the hazards of falling from heights including ladders and stairways, and each employee should be trained in the procedures to be followed to minimize these hazards. The employer needs to ensure that each employee has been trained by a competent person qualified in those areas. OSHA defines the term "competent p e r s o n" a s "o n e w h o i s c a p a b l e o f identifying existing and predictable hazards in the surroundings or working c o n d i t i o n s w h i c h a r e u n s a n i t a r y, hazardous, or dangerous to employees, and who has authorization to take prompt corrective measures to eliminate them.” Combining an on-site training program with frequent workplace inspections will help ensure employees are working safely. Documenting the inspections a n d rev i ew i n g f i n d i n g s w i t h u p p e r m a n a g e m e n t a n d ow n e r s h e l p s t o maintain alignment. It should be noted that the lack of competent persons is among the most frequently cited violations annually by OSHA. A formal sixteen-hour competent person training is highly recommended and available in Alaska.
Job Hazard Analysis
Another great tool to reduce the risks of falls is a job hazard analysis. This exposure recognition and mitigation system evaluates job tasks to identify hazards before they occur. It assesses the relationship between the worker, the job tasks, the tools, and the work environment to eliminate and prevent hazards at the work location. Ideally this analysis takes place on site before the work starts. Discussion on specific fall protection systems, use of ladders, scaffolding, and other fall exposures allow workers to engage with each other and come up with a common plan for site safety. 156 | October 2023
By conducting and documenting this job hazard analysis, each worker knows what the exposures and controls are for the tasks to be performed. This enables the team to complete the job in a manner that limits the risks of falls. Whether guardrail systems, safety net systems, or personal fall arrest systems are utilized, the job hazard analysis will help identify the best tools to use for each step of the work. And remember: if a personal fall arrest system is chosen as the best protection for that job, a formal rescue plan for that location should be created and implemented. When a worker falls and is suspended, the suspension trauma clock begins ticking. Orthostatic intolerance, or harness hang syndrome, can occur in less than twenty minutes and can be fatal. Now is the time to double-down on your company’s efforts to reduce falls in the workplace. If you received the letter from AKOSH, the likelihood of an inspection is high. Enhancing a current program and conducting training takes time and should begin immediately. Resources for training and consultation are available online or by contacting AKOSH and scheduling a meeting. This service is free and is separated from the enforcement process. Workers’ compensation insurance carriers and insurance agents may have loss control services available for their policyholders, and often this service is at no cost to the company. There are also local contractors who specialize in safety that may be able to provide support or resources as well. Employees are the greatest resource a company has, and protecting workers from falls should be made a priority. Taking the time to assess the potential exposures and implement quality controls may save you from a hefty OSHA fine, but more importantly it could save a life.
Sean Dewalt is a Senior Loss Control Consultant for Umialik Insurance Company in Anchorage. Dewalt has been working in safety and risk management in Alaska since 2000. This column is intended to be informational and is not intended to be construed as legal advice.
Alaska Business www.akbizmag.com
AMA Annual Convention and Trade Show November 6-9, 2023 Anchorage, Alaska | Dena’ina Center
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INSIDE ALASKA BUSINESS TOTE Maritime Alaska The roll-on/roll-off ships that TOTE Maritime Alaska sails between Anchorage and Tacoma, Washington no longer depend on diesel fuel. The company is the first in the world to convert its entire fleet to run on liquified natural gas. MV North Star completed the dualfuel commissioning period with the US Coast Guard this spring, and MV Midnight Sun completed commissioning in 2022. TOTE describes the ten-year conversion process as the company ’s second biggest investment into the Alaska trade since its inception in 1975. totemaritime.com
Visit Anchorage Allure Day Spa in downtown Anchorage closed last October after thirty years in business, yet the prime real estate on Fifth Avenue won’t be vacant much longer. Visit Anchorage is moving its tourism information bureau out of the Historic City Hall on Fourth Avenue and into the former spa. (The Log Cabin will remain, however.) Historic City Hall is considered a strong candidate for the Anchorage Library System to restore a Downtown branch. anchorage.net
Gana-A'Yoo The joint Alaska Native corporation for four villages on the Middle Yukon River has a new Anchorage office. Gana-A’Yoo, Limited moved into the Arctic Slope Regional Corporation (ASRC) building in Midtown to accommodate a doubling in size in the last couple of years. Although rooted in the Interior, Gana-A’Yoo has regular need for banking, bonding, and transport services available in 158 | October 2023
Anchorage. ASRC’s building is newer and more spacious than Gana-A’Yoo’s previous Anchorage offices at Benson Boulevard and LaTouche Street, shared with Northern Skies Federal Credit Union. The first-floor suite was previously occupied by ASRC’s Alaska Growth Capital subsidiary, which moved to the JL Tower next door to share offices with its new owner, McKinley Capital Management. ganaayoo.com
Seafood’s largest facility and the largest of its kind in North America. The Captains Bay plant was originally scheduled to open in 2027, but a one-year delay in groundbreaking at the factory itself pushes the completion date until 2028. CEO Joe Bundrant cited concerns about sluggish demand and low prices. An executive with Trident, Stefanie Moreland, notes that the delay does not change the company ’s long-term plans. tridentseafoods.com
Credit Union 1
Delta Constructors
A groundbreaking ceremony in July formally began construction of Credit Union 1’s (CU1) thirteenth branch, its first in the Matanuska-Susitna Borough. The site on Railroad Avenue near the junction of Parks Highway and Knik Goose Bay Road affords convenient access in downtown Wasilla and for the extensive suburbs south of Wasilla city limits. "We’ve been keeping an eye on the Mat-Su Valley for a long time and had many member requests to build a branch in Wasilla over the years,” says CU1 President and CEO Mark Burgess. The board of directors approved the expansion last October. Spark Design created plans for a 10,000-square-foot building, and construction is being led by Cadence General Contractors. The Wasilla branch is scheduled to open in the fall of 2024. cu1.org
For the first time since 2001, a Single Process Module (SPM) is being fabricated in Alaska for use on the North Slope. Delta Constructors was contracted to assemble the approximately 425-ton module. The company counts more than 100 direct jobs involved in the contract; most recent modules have been fabricated on the Gulf Coast or in Asia. The 150-foot-long, 24-foottall SPM will be sealifted to the Slope next June. deltaconstructors.net
Trident Seafoods Construction began this summer on the first bunkhouses for Trident Seafoods’ new processing plant at Captains Bay in Unalaska. The buildings join a 1,500-foot dock that was installed last year. The site is slated to replace a plant in Akutan, northeast of Unalaska Island, as Trident
Peggy's Restaurant After serving pies across from Merrill Field since 1944, Peggy ’s Restaurant closed for good in August. Nancy Burley, who bought the business in 1988, says her family urged her to retire, now that thirty-five years of working nearly every day has taken its toll. The property on East Fifth Avenue has been sold, but Burley ’s daughter says the business itself may re-emerge as a food truck. Editor's Note: Economic Indicators has moved to akbizmag.com. Find daily updates on oil and gas prices as well as monthly employment updates on our homepage.
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United Way When we show kids what they can accomplish, of Anchorage we inspire them to pursue careers that touch the lives of thousands. is amplifying It takes a city: United Way of Anchorage works our IMPACT with partners across our community to engage United Way of Anchorage
families and help them build bright futures. Learn more about our work and how you can get involved at liveunitedanc.org.
RIGHT MOVES MSI Communications
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An executive at Anchorage advertising and public relations firm MSI Communications is promoted to President. Miller Kris Miller has been with MSI for more than ten years and recently served as Vice President of Client Services. In her new role, Miller is responsible for agency operations and business success while continuing to serve as the account supervisor for the agency’s largest clients. The promotion also enables owner and CEO Laurie Fagnani to focus on business growth strategies and client relationships.
Bettisworth North
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Bettisworth North Architects and Planners elected Tracy Vanairsdale as the firm’s new President. Vanairsdale joined Bettisworth Vanairsdale North in 1997 and for the last ten years has managed the firm’s branch office in Fairbanks, where she was born. Vanairsdale earned a bachelor of architecture degree from the University of Idaho. She has managed projects across Alaska, such as the expansion and renovation of Yukon-Kuskokwim Health Corporation’s Delta Regional Hospital in Bethel, the Morris Thompson Cultural and Visitors Center, Ryan Middle School, Ketchikan Public Library, and Mat-Su Borough’s Dena’ina Elementary School. The leadership transition is only the third since the firm was founded in 1976; Vanairsdale succeeds past president Roy Rountree, who
is transitioning to a supporting leadership role with the company.
Coffman Engineers
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A fire protection engineer with ten years of experience in the oil and gas and nuclear industries, Spence Carter, joins the team at Coffman Car ter Engineers in Anchorage. Carter is a licensed professional engineer in fire protection in Idaho. His previous role at the Idaho National Laboratory was the fire protection engineer at the Advance Test Reactor facility, where he oversaw the inspection, testing, and maintenance programs for fire suppression and detection systems. Carter earned a bachelor’s degree in fire protection and safety technology from Oklahoma State University. His other experience includes fire and gas engineering for BP Alaska and sprinkler system design engineering with Bechtel at the US Department of Energy’s Y-12 National Security Complex in Oak Ridge, Tennessee.
R&M Consultants
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Carina Perez recently joined R&M Consultants as an Engineering Associate in the firm’s Construction Services Department. In Perez this role, Perez provides office engineering on a variety of Alaska infrastructure construction projects, assuring construction work is completed in accordance with plans, specifications, and established procedures. Perez has
seventeen years of construction experience in Alaska, the last fifteen as an office engineer for the Alaska Department of Transportation and Public Facilities Central Region. Since joining R&M, Perez has already begun providing office engineering for the Noorvik Airport Rehabilitation and Skagway Dyea Road projects.
Northrim Bank Northrim Bank is staffing up its new Kodiak branch while also promoting new officers and hiring a new executive. Cody Beech comes aboard as Vice President - Commercial Loan Officer in Anchorage. Beech joined Northrim in April and has sixteen years of experience in the financial industry in Alaska and California. She holds an MBA from Brandman University in Irvine, California (now known as University of Massachusetts Global).
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Blake Rod is promoted to Commercial Loan Officer in Anchorage. Rod has been with Northrim since 2018 and has more than eight years of experience in the financial industry in Alaska. He holds a bachelor’s degree in business from Minnesota State University, Mankato. After twenty-one years with Northrim, Mary Castro becomes Special Credits Associate Officer. Castro has thirty-one years of experience in the financial industry and has been in the Northrim lending department for six years. Castro has received Northrim’s Customer First Service Award twice. The bank placed Mira Pagcu as Assistant Branch Manager at the Kodiak Financial Center. Pagcu started with Northrim in November 2022 with six years of experience
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RIGHT MOVES IS BROUGHT TO YOU BY NORTHERN AIR CARGO
Committed to the Alaska Spirit 160 | October 2023
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in banking and is a certified financial counselor. Northrim cut the ribbon at its new Kodiak Financial Center in February.
Alaska Railroad Ahead of this summer’s centennial of the Alaska Railroad, the state-owned corporation promoted and transferred several key employees, including a successor for the long-time Vice President of Real Estate. Christy Terry, the director of external affairs for the Alaska Railroad Corporation (ARRC), takes over for Jim Kubitz, who retired in June Terr y after more than twentyfive years of lands management. As Vice President of Real Estate, Terry oversees the land services, facilities, and real estate departments. Terry started working for the railroad thirteen years ago as the assistant port manager in Seward. She was promoted to port manager, and last year she became director of external affairs. At the time, she was finishing a three-year term as mayor of Seward. As Terry’s immediate successor, ARRC promoted Meghan Clemens to Director of External Affairs. Clemens first joined ARRC Clemens in 2013 as marketing and communications manager. With an MBA degree from UAA, Clemens is credited with helping improve the user experience of the railroad’s online presence. While ARRC was wrapping up its first century of operations last fall, Dwayne Atwood succeeded Terry as Seward Port Manager. Atwood At wood was previously serving as assistant port manager. He has been with
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ARRC since 2017. Christina IsabelleGlover was promoted from project analyst manager to Director of Grants. IsabelleIsabelle- Glover Glover brings more than ten years of railroad experience to the role, with extensive knowledge of grants administration. Amy Kinnaman was promoted from assistant controller to Controller, just under ARRC’s chief financial officer. Kinnaman is Kinnaman responsible for the oversight of accounting operations. She brings a strong background in financial and grant reporting to the role. David Greenhalgh transitioned from director of strategic marketing initiatives and guest services to Director of Freight Sales Greenhalgh and Marketing. He brings more than twenty-three years of railroad experience to the position. Tucker Remley was promoted from manager to Director of Guest Services, filling the role previously held by Greenhalgh. Remley Remley demonstrates strong leadership in guest operations, continuing ARRC’s legacy of outstanding customer service. Rusty Pochatko became Director of Car and Trailer-onFlatcar (TOFC), making him the point of contact for car shops and TOFC operations Pochatko in both Anchorage and Fairbanks. Pochatko is an eight-year veteran of ARRC’s mechanical division. Bryan Cothren was promoted to Director of Locomotive Maintenance
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Operations. He brings extensive mechanical experience to his new role. ARRC welcomed Cat Clarke to the role of Cothren Corporate Communications Officer upon the retirement of Stephanie Wheeler from the position. A former resident of Nome, Clarke brings experience in community relations and regulation development. Shane Maloney became Clarke ARRC’s newest Facilities Director, departing his former position as manager of real estate. Maloney holds an MBA degree and is one of only forty-four Alaskans to hold a Certified Energy Manager credential from the Association of Energy Engineers. He joined ARRC Maloney in 2011.
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Mat-Su CVB
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The Matanuska-Susitna Convention & Visitors Bureau (CVB) promoted Casey Ressler to President and CEO, succeeding Bonnie Quill, who Ressler announced her retirement after leading the organization since 2000. Ressler has been with the Mat-Su CVB for nearly seventeen years, serving as both the membership manager and the marketing manager for the last fifteen years. “After a thorough and competitive interview process, we are happy to announce Casey Ressler has been promoted to the President and CEO position,” says Board Chair Mark Austin. “He brings a new vision and direction for the CVB but also continuity and the community knowledge and experience we need for the next era.”
Northern Air Cargo is committed to getting your cargo where it needs to be, on time, so you can worry about what really matters.
For more information, please visit us at www.nac.aero. www.akbizmag.com
Alaska Business
October 2023 | 161
ALASKA TRENDS
E
ven accounting for inflation over thirty-eight years, the Top 49ers have shown incredible growth. In 1985 the combined revenue of all Top 49ers was $2.7 billion, worth about $7.8 billion in today’s dollars. That approximates the combined gross revenue of this year’s #1 and #2 by themselves. The first #1, Carr-Gottstein Foods, reported $335 million in gross revenue, or just over $1 billion adjusted for inflation. On this year’s list, five companies earned more. The inaugural Top 49ers covered a broader variety of industry sectors compared to the ranks today, which are dominated by Alaska Native corporations. Two major disruptions explain the change. First, Alaska Native corporations have grown to contain diverse business lines on their own. Second, after the 1985 economic crash, nine of the original 49ers dropped out, never to be seen again. Of the first class of Top 49ers, ten appear on the 2023 list. Overall, six companies have exactly the same rank as in 2022. Others have made big moves in terms of revenue: Vitus Energy reports 2022 gross revenues 80 percent higher than 2021, and Udelhoven Oilfield System Services, Colville, and Koniag report revenues 57.7 percent, 54.6 percent, and 50.7 percent higher, respectively. Overall revenue growth among all Top 49ers is a continuing trend, though the biggest growth year over year was reported in 1990, with 37.7 percent, nearly matched by 2006’s 36 percent. More math: divide total revenue of all 2023 Top 49ers by total number of all of their employees, and the average figure is comparable to the productivity of each worker at Olgoonik, nearly smack-dab in the middle of the ranking. This edition of Alaska Trends crunches more data collected from our annual Top 49ers survey.
$23,966,899,029 Total 2022 gross revenue
+19%
Industry sectors represented have changed since the first Top 49ers.
1985
2023
Increase in revenue
~$268,000 Average revenue per employee
207
Total companies ranked as 49ers since 1985
1 New 49er in 2023
Huna Totem Corporation
162 | October 2023
Retail Finance Construction Alaska Native Oil & Gas Transportation Logging Tourism Media & Arts Manufacturing Energy Real Estate Mining
14 9 7 7 2 2 2 2 1 1 1 1 1
Alaska Native Construction Finance Energy Oil & Gas Retail Transportation Telecom & Tech Mining
26 7 4 3 3 2 2 1 1
Alaska Business www.akbizmag.com
TOP 49ers EMPLOYEES 89,403
22,571
ARCTIC SLOPE REGIONAL CORPORATION – 14,899
25.2%
Most worldwide employees
Percentage of 49er employees who are Alaskan
ROGER HICKEL CONTRACTORS – 70
NANA REGIONAL CORPORATION – 3,514
ROGER HICKEL CONTRACTORS– $1.4M
15
Total worldwide employees
Total Alaska employees
Most Alaskan employees
Fewest worldwide employees
Number of 49ers with only Alaskan employees
Million-Dollar employees (revenue per worldwide employee)
CHUGACH ELECTRIC ASSOCIATION Highest grossing 49er with only Alaskan employees
ARCTIC SLOPE
REGIONAL
B I G G E S T R E COV E R Y TO PRE-PANDEMIC REVENUES
#1 1995
CO R P O R AT I O N
(2022 vs 2019)
#2 1992
h a s b e e n a To p 4 9 e r every year since 1985; it started at #13 but has held the
+87%
#3 1991
Davis Constructors & Engineers
#5 1990
#1 SPOT SINCE
#6 1989
Cape Fox Corporation
#7 1988
1995
#9 1987
+116%
#13 1985
Koniag
HIGHEST INCREASE IN RANK, 2022 TO 2023
Vitus Energy +8,
#40 → #32
Runners-up:
www.akbizmag.com
+117%
Udelhoven
+7
#48 → #41
Koniag
+6
#14 → #8
+68%
The Kuskokwim Corporation
Alaska Business
+134% Vitus Energy
October 2023 | 163
Photos by Kerr y Tasker
What book is currently on your nightstand? Stamped: Racism, Antiracism, and You by Jason Reynolds & Ibram X. Kendi. Dead or alive, who would you like to see perform in concert? I have always wanted to make it to a Carlos Santana concert. What’s your greatest extravagance? What do I have that’s extravagant? I have a fancy bed. I splurged on a Tempur-Pedic bed. That’s extravagant to me. What vacation spot is on your bucket list? Taking my kids to Athens, Greece. I went there once, years ago. I had a blast. If you could domesticate a wild animal, what animal would it be? Hands down, an elephant. I’ve always loved elephants. Or a gorilla.
164 | October 2023
Alaska Business www.akbizmag.com
OFF THE CUFF
Jasmin Smith R
aised in Eagle River, Jasmin Smith has been adopted by Mountain View. She nurtures
the neighborhood in return, locating her Umoja Coworking & Incubator there. Named for the Swahili word for unity, “It ’s a nonprofit designed to be a coworking space for entrepreneurs in communities who need it the most,” she explains. Smith aspired to be a primatologist like Jane Goodall, but while at college in Atlanta her path led to the music industr y. “ The rappers said, ‘ You sound fancy. Where are you from? ’ So, because I knew how to talk professionally, they hired me to be their business person,” she recalls. Handling contracts morphed into a consulting business. Becoming a mother inspired a new direction. After improvising a diaper at the Fifth Avenue Mall, Smith created a vending machine for baby supplies. Her company, Baby Vend, now has more than fifty machines in sixteen states. A self-described serial entrepreneur, Smith is also the owner of a consulting association, The Business Boutique, and the president of the Alaska Black Chamber of Commerce. “ We have a lot of ecosystems for entrepreneurship,” she says. “ We’re always thinking of other things to do with the [Umoja] building that ’s not just business but also community and wellness at the same time.” Alaska Business: What charity or cause are you passionate about? Jasmin Smith: [In addition to Umoja,] I’m also a big animal person. The SPCA and other animal places. www.akbizmag.com
AB: What do you do in your free time? Smith: Lie in bed, watch true crime shows, and hang out at the playground with the neighborhood kids and push them on the swing too much. AB: What’s the most daring thing you’ve ever done? Smith: When I learned how to play rugby. I played rugby for a while. That was daring enough for me. I had no idea what I was doing. It was fun, though. AB: What’s the first thing you do when you get home after a long day at work? Smith: Let my hair down—literally—and jump in my bed. AB: What’s your favorite local restaurant? Smith: Chowder Express [food truck on Mountain View Drive, across from Umoja’s previous location]. AB: What are you superstitious about? Smith: Growing up in my family, we had those Southern ones. Like, you have to put money under your porch when you go into the new year, so you aren’t broke. Or you have to cook certain dishes at the new year, so you have good luck. I swear by those. AB: Is there a skill you’re currently developing or have always wanted to learn? Smith: I have always wanted to learn how to design… I’m not creative at all; I can’t draw or that stuff, so I’m really working on how to be creative—paint, draw, color—because I’m terrible at it. AB: What’s your best attribute and worst attribute? Smith: I am an independent go-getter. I will get it done and problem solve like a champ… My worst attribute is that I get it done like a champ on my own schedule. For those who don’t know me, it can cause some anxiety because I don’t have a clear process. I just live by, “Trust me, it’ll be done.”
Alaska Business
October 2023 | 165
ADVERTISERS INDEX 3-Tier Alaska................................... 133 3 tieralaska.com
Cape Fox Shared Services................ 37 capefoxcorp.com
JEFFCO Inc........................................ 23 jef fcogrounds .com
Roger Hickel Contracting Inc........... 74 rogerhickelcontrac ting.com
Ahtna, Inc....................................... 143 ahtna.com
CIRI................................................... 51 ciri.com
Junior Achievement........................ 145 ja- alaska.org
Satellite Alaska.................................. 85
Airport Equipment Rentals............. 167 airpor tequipmentrentals .com
Color Art Printing, Inc..................... 113 colorar tprinting.com
Littler................................................ 25 li t tler.com
schwabe.com/locations-anchorage-alaska
Alaska Air Cargo - Alaska Airlines... 149 alaskacargo.com
ConocoPhillips.................................. 83 alaska.conocophillips .com
Lynden............................................ 168 l y nden.com
Alaska Argo Rentals LLC................... 67 alaskaargorentals .com
Conrad-Houston Insurance Agency............................................ 138 chialaska.com
Material Flow & Conveyor Systems, Inc.................................... 127 ma terial f lo w.com
Construction Machinery Industrial.... 2 cmiak .com
Matson Inc........................................ 87 ma t son.com
Cook Inlet Tug & Barge Inc............. 103 cook inlet tug.com
Moda.............................................. 139 modaheal th.com
Credit Union 1.................................. 41 cu1.org
Matanuska Telecom Association...... 73 mtasolu tions .com
Cruz Companies............................... 71 cruzcons truc t.com
Nana Regional Corp......................... 53 nana.com
Alaska School Activities Assoc.......... 35 asaa.org
Davis Constructors & Engineers Inc................................... 63 da v iscons truc tor s .com
NCB.................................................. 95 ncb.coop
Alaska Travel Industry Assoc.......... 117 alaska tia.org
Dorsey & Whitney LLP....................100 dor se y.com
Altman, Rogers & Co........................ 14 al trogco.com
Doyon, Limited............................... 138 doyon.com
Alyeska Tire.................................... 137 al yeska tire.com
Equipment Source, Inc................... 135 esialaska.com
Ampersand.....................................104 amper sand tech.com
First National Bank Alaska.................. 5 fnbalaska.com
Anchorage Chrysler Dodge............. 76 accak .com
Fountainhead Development............ 81 fountainheadhotels .com
Anchorage Convention Centers..... 111 anchorageconventioncenters.com
Golden Valley Electric Assoc. ........... 59 g vea.com
Arctic Slope Regional Corporation.... 99 asrc.com
Great Northwest Inc......................... 79 gr tn w.com
ASRC Construction........................... 95 asrcbuilder s .com
Great Originals Inc........................... 29 grea toriginals .com
Avis Rent-A-Car................................. 47 a v isalaska.com
Groeneveld-BEKA Lubrication Systems.......................................... 125 groene veld - beka.com
Alaska Communications Systems....... 3 ac salaska.com Alaska Dreams Inc.......................... 126 alaskadreamsinc.com Alaska Mergers & Acquisitions, LLC.............................. 14 Alaska Miners Association.............. 157 alaskaminer s .org Alaska Professional Pumping........ 128
Bering Straits Native Corp................ 57 berings trai t s .com Bob's Services, Inc............................ 31 bobsser v ices .com
HDL Engineering Consultants, LLC............................ 128 hdlalaska.com
Nenana Heating Services, Inc........ 103 nenanaheatingser vicesinc.com New Horizons Telecom, Inc............ 105 nhtiusa.com Northern Air Cargo................160, 161 nac.aero Northrim Bank.................................. 27 nor thrim.com Nu Flow Alaska............................... 129 nu f lo walaska.com Oxford Assaying & Refining Inc..... 153 ox fordmetals .com Pacific Power Group........................... 7 paci f icpo wergroup.com Parker, Smith & Feek........................ 19 ps f inc.com PeopleAK.......................................... 33 peopleak .com Personnel Plus Employment Agency........................ 31 perplus .com PIP Marketing Signs Print............... 101 pipalaska.com
Schwabe, Williamson & Wyatt, P.C.... 11
Seatac Marine Service.................... 147 sea tacmarine.com SES Space & Defense......................... 9 sessd.com Sitnasuak Native Corporation.......... 61 snc.org Span Alaska Transportation LLC.... 115 spanalaska.com Stellar Designs Inc............................ 23 s tellar- designs .com Structured Communication Systems.......................................... 155 s truc tured.com Subway of Alaska.............................. 89 sub wa yak .com Superior Group.............................. 119 superiorpnh.com T. Rowe Price.................................... 17 alaska529plan.com The Kuskokwim Corporation............ 65 k uskok wim.com TOTE Maritime Alaska LLC.............. 121 totemari time.com UA Local 375 Plumbers & Pipefitters......................................... 45 ualocal375 .org Udelhoven Oilfield System Services, Inc..................................... 75 udelhoven.com Ukpeagvik Inupiat Corporation........ 55 uicalaska.com Umialik Insurance Company........... 151 umialik .com United Way of Anchorage.............. 159 li veuni tedanc.org Visit Anchorage................................ 39 anchorage.net Vitus Energy..................................... 69 v i tus- energ y.com
Bristol Bay Native Corporation......... 49 bbnc.net
Hecla Greens Creek Mining Company.............................. 93 hecla- mining.com
BSI Commercial Real Estate, LLC.... 107 bsialaska.com
Hotel Captain Cook........................... 15 captaincook .com
Providence Health & Services Alaska............................................... 91 prov idence.org
C & R Pipe and Steel, Inc................. 123 crpipeands teel.com
Huna Totem Corporation................. 78 huna totem.com
providence.org/locations/ak/imaging-center
Providence Imaging Center............ 141
World Trade Center Anchorage........ 21 w tca.org
Calista Corporation........................ 109 calis tacorp.com
JAG Alaska....................................... 132 jagalaska.com
Resource Development Council....... 13 ak rdc.org
Yukon Equipment Inc....................... 97 y ukoneq.com
PND Engineers Inc........................... 43 pendengineer s .com
Watterson Construction.................. 77 wa t ter soncons truc tion.com Westmark Hotels - HAP Alaska....... 119 wes tmark hotels .com
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