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CONTENTS FEBRUARY 2019 | VOLUME 35 | NUMBER 2 | AKBIZMAG.COM
FE AT UR E S 8 TELECOM & TECH
70 EDUCATION
78 TOURISM
Cyber disaster recovery planning is critical
The University of Alaska’s path to even higher education
Tour operators work cooperatively to benefit travelers and each other
By Tracy Barbour
By Tasha Anderson
By Vanessa Orr
12 NONPROFITS
74 HEALTHCARE
It’s Your Data to Lose
Not-for-Profit, For-the-Economy
Mission-based organizations are economic drivers
Playing Nicely Together
Strategic Pathways
Health Wanted
Finding the next wave of Alaska’s life-savers By Arie Henry Alaska Railroad
By Tasha Anderson
48 OIL & GAS
Local Fabricators Still Fill Niche Alaska‘s manufacturers provide specialized and short-term fabrication solutions By Isaac Stone Simonell
54 TRANSPORTATION High Function, Low Impact Air Services Helicopters in Alaska’s industries By Isaac Stone Simonelli
I N T E R N AT I O N A L T R A D E 60 AIRPORT
62 CHINA
66 EMERGING MARKET
Ted Stevens Anchorage International Airport serves the world
Ties between the Middle Kingdom and Great Land
India could represent 1.3 billion new customers
By Greg Wolf
By Alex Salov
64 SOVEREIGN WEALTH
68 ARCTIC UPDATE
Sovereign wealth funds are significant investors globally
Alaska: the commercial gateway to the American Arctic?
By Greg Wolf
By Greg Wolf
Alaska’s Cargo Hub
Alaska and China
By Greg Wolf
ARCHITECTURE & ENGINEERING 18 NOMINEES © Ken Graham Photography | Architects Alaska
2019 Engineer of the Year Nominees
22 NESS PROFILE 2018 Engineer of the Year Christine Ness
28 PROJECTS
Discovering Excellence in Engineering
32 INTERIORS
From Open Floors to Enclaves Office interiors adapt to changing times By Vanessa Orr
A Largely Untapped Market
2019 Project of the Year Submissions
40 DIRECTORY
The Alaska Business 2019 Architecture & Engineering Directory
Large Funds with a Long View
The Arctic Opportunity
ABOUT THE COVER Nominated by the Alaska Chapter of the National Association of Women in Construction, 2018 Engineer of the Year Christine Ness is a fire protection engineer and project manager at PDC Engineers, an Alaska-based firm with five offices and more than one hundred employees. Ness always knew she wanted to be an engineer and, after moving here in 2013, found in Alaska the happy combination of her many loves: a brilliant husband, ample opportunities for solitary fishing excursions, and the ability to pursue her passion to make the world a little more fire resistant. Thank you, Matson, for allowing us to use your Anchorage facility fire suppression systems as the backdrop for our cover and Q&A photos. Cover Photo: Kerry Tasker Cover Design: David Geiger
DEPARTMENTS 6 FROM THE EDITOR 84 EAT, SHOP, PLAY, STAY 4 | February 2019
86 EVENTS CALENDAR 88 BUSINESS EVENTS
90 RIGHT MOVES
94 OFF THE CUFF
92 INSIDE ALASKA BUSINESS
96 ALASKA TRENDS
Alaska Business www.akbizmag.com
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VOLUME 35, #2 Published by Alaska Business Publishing Co. Anchorage, Alaska
EDITORIAL STAFF Managing Editor
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ALASKA BUSINESS PUBLISHING CO., INC. 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; © 2019 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 July & October issues. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($8.95 each including postage) visit www.akbizmag.com/store. AKBusinessMonth AKBusinessMonth
FROM THE EDITOR
A Lesson Well-Learned
A
laska set a stunning example of resilience after the November 30 earthquake, thanks in part to lessons learned from the 1964 Good Friday earthquake that have held up for more than five decades (with a few additions here and there). As news outlets nationwide were lauding the state’s road crews for repairing a partially collapsed off-ramp connecting International Airport Road and Minnesota Drive in Anchorage by December 4—fewer than four full days after the temblor—Alaskans were doing what they do best, getting on with life. Many retailers opened sections of the store they deemed safe the very next day, despite shelves askew, floors dotted with remnants of broken products, and limited staff. Utilities worked to get power and heat to Anchorage and Mat-Su Valley residents… and did so successfully for nearly the entire area the same day. Generally when a natural or other disaster hits, it’s first responders we think of for safety and assurance, and for good reason: they move heaven and earth to take us out of danger, not letting up until we’re in the right hands. But there’s another group, less visible perhaps, that is still out in droves as of mid-January making sure we’re safe in the buildings where we work and live. Since the earthquake and thousands of subsequent aftershocks, engineers have been working overtime making structural assessments, handing out green, yellow, and red tags depending on how much damage a building sustained. Many engineering firms have brought in extra help to meet overwhelming demand. While they’re still working overtime as of press, it’s important to remember that Alaska’s engineers have been “working” on this earthquake for decades—engineering seismically sound buildings to stand strong in the most seismically active region in North America, allowing Alaska to report to a concerned nation, with great relief, zero earthquake casualties. This month we celebrate Alaska’s engineers and the passion and drive they maintain to keep the rest of us safe in moments of peril—and in everyday life. On our cover is Christine Ness, a fire protection engineer and project manager at PDC Engineers who was named 2018 Engineer of the Year during E-Week last February. Don’t miss our Q&A with the multi-talented Ness in the Engineering & Architecture Special Section. We also feature several Engineer of the Year hopefuls, though not quite as many as in past years because most are still in the field assessing damage. We’re thankful to all of the talented people who, over the years, have made Alaska a more earthquake-safe place to live: those we see in the news and those we’ll be seeing at E-Week February 17-23.
Kathryn Mackenzie Managing Editor, Alaska Business
Generally when a natural or other disaster hits, it’s first responders we think of for safety and assurance, and for good reason: they move heaven and earth to take us out of danger, not letting up until we’re in the right hands.
alaska-business-monthly
6 | February 2019
Alaska Business www.akbizmag.com
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TELECOM & TECH
It’s Your Data to Lose
Cyber disaster recovery planning is critical By Tracy Barbour
D
ata is the modern oil, says Danny Maxwell, PMP, ITIL. And it’s essential that organizations recognize its value, protect it—and anticipate that it will have to be recovered some day. That’s why it’s vitally important for businesses to have a backup and recovery strategy and documented plan, says Maxwell, the Anchorage-based territory director with Structured Communications Systems. Headquartered in Clackamas, Oregon, Structured Communications Systems is an IT consultancy and multicloud services provider that partners with companies nationwide. “In our experience, it is not a question of ‘if’ you need a plan but rather ‘when’ you’ll need to execute a recovery,” Maxwell says. “Attacks, deleted or compromised data, broken communication lines, etc., are an unfortunate reality of doing business in today’s ‘connected’ world. The more proactive and prepared a business can be determines how fast and effective the recovery process is accomplished.” Cybersecurity threats are extremely serious—and growing. And cyber intrusions are becoming more commonplace, more dangerous, and more sophisticated, according to the FBI, which is the lead 8 | February 2019
federal agency for investigating cyber attacks by criminals, overseas adversaries, and terrorists. Cyber crime is so prevalent that the FBI has cyber experts positioned in its field offices nationwide, including its Anchorage Division. The collective impact of computer and network intrusions is staggering. Billions of dollars are lost every year repairing systems hit by cyber attacks. Some of the attacks take down vital systems: government agencies, hospitals, banks, and other businesses.
Where to Start A cyber attack—or a natural disaster like the powerful November 30 earthquake that rocked Anchorage—can cause substantial hardware or software failure. But having a data backup or cyber disaster recovery plan can make it easier for a business to get back up and running after a catastrophic event. When data is lost or compromised due to a cyber attack, natural disaster, or other calamity, companies generally have two options: recover the data from their last backup or recreate data if a backup isn’t available. Thankfully, most companies with even
a handful of employees on staff will have an IT person available to back up their critical systems and information, according to Glen Kratochvil, president of Alaska Computer Guy. Data recovery is something he holds close to his heart because he has lost years’ worth of information that could not be recreated. Such a catastrophic event can be as emotional as dealing with a house fire, and the experience can leave most people not thinking clearly, he says. “It’s not uncommon for people to call me very upset or crying when they’re in the middle of a data-loss emergency,” he adds. “If you have a recovery plan in place, you’re more likely to remain calm and not cause further harm. Knowing what to do when this happens can mean the difference between complete data recovery and having to rebuild years of company records from scratch.” When a cyber disaster occurs, Kratochvil says, companies should start by calling a trusted computer technician or data recovery center and explain what happened. How the recovery process is handled will depend on the specifics that led to the loss. He explains: “Often this will include restoring information from backups or decommissioned computer systems;
Alaska Business www.akbizmag.com
Structured Communications Systems
“In our experience, it is not a question of ‘if’ you need a plan, but rather ‘when’ you’ll need to execute a recovery.” —Danny Maxwell, Territory Director, Structured Communications Systems
wiping affected systems and reinstalling; or [if there are no backups] recovering some critical data from old email attachments or data sent outside the company. If none of these exist, it may be necessary for companies to recreate data or accounting records from scratch, which can be costly, time-consuming, and lead to significant business interruptions.” Alaska Computer Guy—which has been in operation since 2005—assists businesses statewide with all types of hard drive data recovery issues, often categorized as Level 1, 2, or 3. Many people think that a hard drive failure is the only reason to keep a backup hard drive, but that’s not the case. “When
an office is broken into and a computer is stolen, the thieves will take anything that is plugged into the computer, so if that’s your only backup, it just got stolen as well,” Kratochvil says. “The same is true for fire, earthquake, or water damage. Whatever affects one computer system will likely affect the backup that is attached to it.” He adds: “Cyber criminals or viruses that compromise data on a computer will also infect or encrypt the data stored on an external hard drive that is plugged into it. Put some space between your backups for maximum protection.”
Problem Dictates Response The time and expense required for data
recovery is determined by the situation. Data recovery can be simple (the charging port on an old laptop is damaged and the laptop has no power to turn on, but the hard drive and data are in good condition with no damage to them) or data recovery can be complex (an encrypted file system with physical damage and misplaced or nonexistent recovery keys). The cost of data recovery per damaged or compromised device can range anywhere from $75 for simple data recovery to $2,000 or more for severely damaged hard drives that require clean room recovery in a lab, Kratochvil says. Like Kratochvil, Maxwell says recovery doesn’t have to require an ultra-expensive solution. Being proactive and designing business systems with redundancy and recovery in mind will minimize time and expenses should an unfortunate disaster occur. “Today’s modern equipment, software, and available disaster recovery services provide many options and levels of recovery,” he says. “Businesses, small to large, need to recognize one of the most important assets is your data. Protect it accordingly.” There are several steps that businesses should follow to recover from a major cyber
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Alaska Business
February 2019 | 9
Data recovery services providers typically categorize hard drive data recoveries as one of three levels: Level 1: This is the lowest level, and it requires the least expertise and resources because the hard drive is still 100 percent functional. Level 1 problems are the result of deliberate damage, corruption, or deletion of all or part of a hard drive’s file system. Level 1 often involves issues such as deleting a file or folder, reformatting the hard drive, and restoring the operating system. Level 2: With this category, the hard drive is not functioning properly, and the situation requires more expertise for resolution. Level 2 data loss situations are normally the kind of problems an end-user cannot solve. These issues often entail defective printed circuit board electronics, corruption to the drive’s firmware, or issues with full disk encryption or file encryption. Level 3: These types of problems signify a major failure with the hard disk drive, which must be made functional again before data can be recovered. Typical complications relating to this level involve damaged head and disks, dropped hard drives, and fire or water damage. Level 3 means the hard drive will require extensive work in a sterile cleanroom to allow the best chance for data recovery. disaster, Maxwell says. First, the IT staff should recognize the severity of the situation and notify upper management immediately. If need be, the company should call an expert to help assess the potential breach or data impact. Then, if necessary, the business should disconnect its environment from outside communication, such as the internet. Next, the company should stop creating or changing its data. “Lock out internal users from accessing applications or shared files and directories,” Maxwell says. After this, the type of “disaster” will determine the next steps, whether they 10 | February 2019
be network changes, virus scans, or full data recovery procedures. “Management needs to take an active role in prioritizing what access, applications, or data needs to be recovered,” he says. “Structured offers the expertise and experience to be a passive, active, or combined resource in this process.” Structured can facilitate multiple facets of remediation. For example, to help clients recover from a cyber attack, the company can provide a security review and remediation from a networking and internet access perspective. This includes identifying the specific breach and “plugging the hole.” “Structured can assist with recovery, or ‘roll back,’ of your business data to a known good ‘state,’” Maxwell says. “This assumes you have a good backup strategy and ‘clean’ data at a point prior to the breach.” In the event of a natural disaster, Structured can be on point to coordinate with multiple vendors to facilitate the restoration of phone services or network communications and assist with computer and application recovery. Basically, the company can serve as a one-stop resource for systems recovery. Maxwell explains: “Structured has local resources in Alaska to act quickly and competently. We also have access to many remote experts depending on the size and need of the recovery.”
Backup and Recovery Strategies Cybersecurity and IT experts advise companies to be proactive and put a plan in place to facilitate the data recovery process. A key issue to ensuring a speedy recovery, Maxwell says, is to know what data is being used to run the company. He elaborates: “Establish a value of that data. What is your hourly or daily business impact if your business is offline? Recognize that email may be one of your most important applications.” Companies will likely have various levels of recovery needs, from least to most important. Once they establish their business priorities, Maxwell says, they can formulate strategies and plans. Depending on the application recovery need(s), businesses should consider the following strategies: Basic off-site backups, either tape or replicated data
A passive disaster recovery site, either owned, leased, or cloud-based Active recovery site (with live data ready for an immediate fail-over) At the most basic level, Kratochvil says companies should always have three copies of their data, one original and two backups. “One backup should always be offline—not connected to a computer or the internet—and should be in a different physical location than the others [such as the owner’s home, a bank safe deposit bank, or with a trusted employee off-site],” he says. “Rotate the off-site backup at least weekly or monthly to keep it current.” For critical systems, a bare-metal backup or full-system image is a good resource to have. Acronis True Image is a software product that allows businesses to create full-system images that permit them to completely restore a computer— along with all the programs, software, and data—exactly as it was when the image was created. This can be incredibly valuable for computers that have important (or expensive) software installed on them, according to Kratochvil. “I recently had a doctor contact me because one of his critical diagnostic computers had a hard drive spontaneously die on him with no warning signs,” says Kratochvil. “Fortunately, the doctor had made a full-system image using Acronis a few weeks earlier, and recovery was fast. Within three hours of his phone call to me, I had replaced the failed hard drive and restored the image, so the computer ran exactly as it did before the failure, and he lost a negligible amount of productivity because of the incident.” He continues, “Without that full-system image backup, this incident would have caused the computer to be offline for at least a day or two while the computer was reconfigured, software was obtained, and everything was reinstalled.” Kratochvil encourages businesses to automate or proceduralize their backup process as much as possible. Cloud backup solutions like Carbonite, iCloud, or Crashplan make this easy. Once the software is installed, it works automatically and provides a set-it-and-forget-it type of solution. But even with cloud backups, a local, off-site backup is still important for
Alaska Business www.akbizmag.com
“When an office is broken into and a computer is stolen, the thieves will take anything that is plugged into the computer, Alaska Computer Guy
so if that’s your only backup, it just got stolen as well… The same is true for fire, earthquake, or water damage. Whatever affects one computer system will likely affect the backup that is attached to it.” —Glen Kratochvil, President, Alaska Computer Guy
fast recovery, Kratochvil says. The cloud provider could go out of business or have a disaster in its data center. Or the business could encounter password/ authentication problems that prevent access to their data in the cloud. Some business owners assume that a good data backup and recovery plan will be too expensive to implement. But companies can put a rock-solid backup and recovery plan in place for less than $200, Kratochvil says. In fact, the easiest plan for a small- to mid-sized company or individual would be to buy two external USB hard drives and install free backup software from SyncBack Free. “Create a folder for each computer you plan to back up on the external hard drive and then rotate the hard drives weekly,” he says. “Keep one hard drive at the office and plugged in while the backups are taking place and keep the other hard drive off-site when not in use.” He continues, “Either weekly or monthly swap the hard drives, so one is never more than a month old, and the other is always current. The reason to keep two hard drives—with one always unplugged—is because if you have a backup hard drive that is always plugged in, it is vulnerable to anything that happens to the computer it is plugged into.”
Expert Advice Kratochvil urges businesses to be deliberate about their data backup and recovery plan—and get it in place before disaster strikes. They should not rely on a backup that they believe someone may have made a few months ago. And they should have an internal team member www.akbizmag.com
who is dedicated to ensuring backups are completed. “Even companies without a full- or part-time information technology manager need to designate a position whose job includes responsibility for maintaining backups,” he says. Companies need to plan regular checkups (annually at least) to make sure their backup and recovery plan is followed. They should also know the location of their backups and the specific kind of protection that each type
of backup provides. “An off-site backup kept at the owner’s home or a bank box will protect you even if an employee goes rogue and decides to cause a lot of harm to your network on his or her way out,” he says. Maxwell says some of the best data backup and recovery advice is the simplest: plan, test, and review regularly. “If you’re not comfortable with this process, hire a professional,” he says.
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February 2019 | 11
NONPROFITS
A Catholic Social Services volunteer washes the feet of a Brother Francis Shelter guest. Catholic Social Services
Not-for-Profit, For-the-Economy Mission-based organizations are economic drivers
I
By Tasha Anderson
n late October I was invited to visit Catholic Social Services as it hosted a small ceremony and reception to announce that Wells Fargo Housing Foundation had donated $100,000 to the Path to Independence program, “an initiative to quickly house individuals and families experiencing homelessness 12 | February 2019
while working to ensure they remain housed and find long-term financial independence,” to quote myself in the November 1 edition of the Alaska Business Monitor. I worked this event into my schedule for several reasons: Alaska Business, through our magazine and website, does occasionally spotlight philanthropic efforts, and this one in particular— which touched on housing issues (an ongoing problem for individuals and businesses alike) in Alaska—highlighted the way in which Alaska’s organizations are working together to solve problems to benefit the community. I saw it as a
positive story about partnership, communication, housing, and business in Alaska. And it was. But I didn’t plan to connect with Gabriel Layman, chief operating officer and general counsel for Cook Inlet Housing Authority, or for him to mention that The Foraker Group updated its report on the economic impact of nonprofits in Alaska, or for him to then take the initiative to introduce me to Laurie Wolf, president and CEO of The Foraker Group—and then in one conversation with her I fell headlong into the fascinating and surprising depths of the Alaska nonprofit sector.
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“I would love for everyone to really think about how is it that nonprofits impact their lives in both the obvious and then really not obvious ways, because nonprofits are really busy doing the work. They’re not always very good at telling their story, and it’s not always very obvious when a nonprofit is behind this amazing thing that’s happening in your life.” —Laurie Wolf, president and CEO, The Foraker Group
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The Foraker Group
The Stats According to Alaska Nonprofit Sector: Generating Economic Impact, the fourth iteration of the report and published in January 2018, 44,100 people were directly employed by nonprofit organizations in 2015—and counting indirect and induced jobs, that number jumps to more than 67,000. “If nonprofits were treated as their own industry, they would be the second largest source of non-government employment behind oil and gas in Alaska,” according to the report. Nonprofits provide almost twice as many jobs as the next largest sector (tourism) and employ nearly two-thirds as many people as the largest sector (oil and gas). The report continues to say 17 percent of all employment in Alaska is in the nonprofit sector, including up to 40 percent of all employment in some rural areas. In 2015 the sector paid a total of $3.89 billion in total wages: $2.68 billion through direct jobs and $605 million for induced jobs and $605 million in indirect jobs. As a group, nonprofits generated $6.98 billion in revenue in 2016. In fact, from 2013 to 2016 (generally bad years for Alaska), this sector actually saw revenues go up, rising 6 percent in those three years. According to the report, “At the same time [period], state economic output as measured by gross domestic product fell by about 15 percent, from $58.9 billion to $50.7 billion. This illustrates how nonprofits are a stabilizing factor in the economy.” Of the nearly 6,000 nonprofits in Alaska, 77 percent are classified as 501(c)(3)s, which includes charitable, religious, scientific, educational, or other public purpose organizations; 7 percent are 501(c) (4)s, including social welfare organiza-
tions like civic leagues, rotary clubs, and employee associations; 5 percent are 501(c)(6)s, which are business leagues, such as chambers of commerce; and 10 percent are other classes of nonprofits, like credit unions or utilities. According to Wolf of The Foraker Group, there are twenty-nine different kinds of nonprofit classifications in total, and the organizations within those classifications include everything from industry associations (RDC is a 501(c) (6)), trade unions, and hospitals (SEARHC is a 501(c)(3)) to volunteer emergency services (the Homer Volunteer Fire Department is a 501(c)(3)), vocational programs, and cemeteries—in addition to the many charitable organizations (Rasmuson Foundation is a 501(c)(3)) that many associate with nonprofits. The range of organizations, and variety of Alaska Business
their missions, is part of what Wolf enjoys about her job. “With almost 6,000 nonprofits out there, no day is ever the same, and I love that part.” For more than three years she has been the CEO of The Foraker Group, a 501(c)(3) organization whose mission is to strengthen other nonprofits from the inside out. The Foraker Group accomplishes this through various means, including leadership development, organizational development, educational courses on a variety of management and leadership skills that are essential to nonprofit management such as fundraising and finance, and shared services where The Foraker Group provides consolidated back-of-house services. “We are the accounting department for about ninety different nonprofits and tribes across the state,” Wolf says. February 2019 | 13
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“We also take on big public policy issues that impact the nonprofit sector,” she explains. “The happiest thing we probably ever did was collaborate to create Pick. Click.Give. Now the Alaska Community Foundation runs the program, and we just do the supporting mechanism to that work by teaching classes that help nonprofits make the most of that program.”
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This type of education is vital for nonprofits, which as much or more than their for-profit counterparts need to account for how every dollar that comes into their organization is used. And many of them excel at making the most of any dollar. Nonprofit entities in Alaska overall receive less than 20 percent of their funds from federal assistance dollars, but they combine that money with contributions, grants, volunteers, and community partnerships to benefit their communities far beyond the face value of funds receieved. According to Alaska’s Nonprofit Sector: Generating Economic Impact, “[Federal funds] are only a part of the financial health of organizations and, regardless of the size of the investment, it helps leverage additional resources for a diversified portfolio… Nonprofits in Alaska exceed the national average in
their ability to generate mission-related earned income, which in 2016 comprised 60 percent of revenue.” The report quotes 501(c)(3) Ester Volunteer Fire Department Chief Tori Clyde, who says, “For every $1 received in borough and other government funds, the department leverages $2 in volunteer hours.” Catholic Social Services, a 501(c) (3), leverages volunteerism in another way—Adult Community Transition is a post-secondary program affiliated with the Anchorage School District through which young men and women who are differently abled volunteer at St. Francis House. In volunteering they learn and practice important workplace skills like accountability, hygiene standards, and work ethics. Catholic Social Services also funds a transportation program that provides taxi rides to those in need to appointments, referral visits, and the emergency room. Lisa Aquino, executive director of Catholic Social Services, explains that in the program’s first year it provided 1,342 taxi rides, which cost the nonprofit $24,795. “But the savings from these rides is approximately $280,000,” Aquino says. “That’s estimating that an EMS ride is about $2,000 a ride, which
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is a national average; it’s probably higher here.” Many of those benefitting from this program are experiencing homelessness or are without work and may not have means to pay for an ambulance ride, but of course that doesn’t mean no one pays. Costs like these that cannot be collected directly may be paid through a program funded by taxes or become part of a general cost of operation, which means the entire community pays for them in one way or another. Another Catholic Social Services initiative is also related to healthcare: the Medical Respite program at Brother Francis Shelter “provides a space for the self-care and recuperation that patients discharged from medical facilities would have in their own homes,” according to the nonprofit. For example, a person experiencing homelessness may sustain a foot injury that would be treated in an emergency room; follow-up care instructions that include bed rest or staying off the foot, or even just keeping the foot clean, warm, or elevated, may be impossible for a person without a home. In the past, without a safe environment to be discharged to, that patient would often remain in the hospital, occupying
Nonprofit share of employment by Borough or Census area in 2015. Based on data from the BLS and Alaska Department of Labor and Workforce Development, and calculations by the Center for Economic Development, IRS, and Bureau of Economic Analysis. The Foraker Group
a bed, though he or she no longer technically required hospitalization. The Medical Respite program is a partnership between Catholic Social Services and all three major healthcare entities in Anchorage: Alaska Regional Hospital, 501(c)(3); Providence Alaska, 501(c)(3); and the Alaska Native Medical
Center, 501(c)(3), which is owned and operated by Southcentral Foundation, 501(c)(3), and the Alaska Native Tribal Health Consortium, 501(c)(3). “This was a common issue that they could all come together on because they’re all very compassionate and want to make the community stronger, and they were
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Anchorage, Chugach Electric is 501(c) (12)]. We buy groceries. We buy clothing. There’s a lot of intersection in the economy providing opportunity for people.” Girault continuines, “We also promote a culture of learning, so we have many employees in school, and we’re intersecting with universities and online programs [in Anchorage, Alaska Pacific University is a 501(c)(3)].”
Government, Industry, and Nonprofits
Exam tables at the Caring Clinic at Brother Francis Shelter, which is open five days a week and helps clients with acute illness, wound care and skin infections, laceration repair, injuries, cough/flu/cold, sore throat, and other conditions. Catholic Social Services
all struggling with the fiscal issue that is their hospital beds remaining full with people who don’t medically need to be in a hospital,” Aquino explains. In the first year of Medical Respite being in operation, it provided 2,900 bed nights, which is “more than $1.5 million saved,” according to Aquino. Anyone who has needed an overnight stay in a hospital in Anchorage recently knows exactly how expensive that can be. “This has a long-term impact in terms of savings and [the hospitals’] overall financial health, and it’s the right thing to do,” she continues. It also allows for space in hospital beds for patients who do need to be hospitalized. All in all, everyone wins.
Hope in the Community This is also the case as Hope Community Resources, a 501(c)(3), pursues its mission of “providing the resources that individuals and families need and removing barriers for them to live full and productive lives,” according to Michele Girault, Quality of Life director for Hope. Sharayah Talarovich, the organization’s director of human resources, says Hope employs 900 people directly throughout the state to pursue that mission. In 2018, Hope paid out $40 million in wages to its staff members who strive to provide aid to those with differing abilities in securing gainful employment, housing, and other life necessities. Up until 1997, a number of individuals in Alaska were housed at the Harborview Developmental Center, located in Valdez. “It was closed in the ‘90s from a lot of advocacy to view communities as a place for everyone and really honoring 16 | February 2019
differing abilities and providing work opportunities, life opportunities, volunteering opportunities, stable housing, and mental health supports,” Girault says. According to Alaska Developmental Disabilities System in 2018, a Hope publication, if Harborview were still open, it would cost $252,427 per resident, significantly more than the average homeand community-based Medicaid waiver utilized today that costs a third of that price. According to the same report, 20 percent (more than 450) of the individuals who Hope provides resources to are employed or working toward employment. These individuals, who otherwise may have difficulty finding employment, now have funds with which they occupy housing, shop at retail outlets, and engage in entertainment and recreational activities—they help build the economy, as do the 900 people directly employed by Hope. Additionally, Hope finds opportunities for those they serve to volunteer in areas that they’re passionate about. This benefits communities through more than just the actual volunteer hours—it’s not unusual for these volunteer opportunities to turn into employment as employers can observe the value of these volunteers. “They’re seen as being just as capable,” Girault says. Hope also provides housing, owning and operating its own housing facilities, which means the organization spends money in communities on plumbers, electricians, contractors, or snow plowers, among many others. “We have telephone services [in the valley, MTA is a 501(c)(12)]. We have electricity [in
Hope and Catholic Social Services lean more toward charity in their missions, but both organizations have to operate with sound business principles to be able to meet their mission year after year. In this, nonprofit and for-profit organizations often have more in common than not. Wolf says, “Private industry and government and the nonprofit sector—we all want the same things: we all want a strong economy and every industry leader wants certainty… We really designed Alaska’s Nonprofit Sector: Generating Economic Impact to say: We’re sitting at the table with you—sometimes we have to bring our own chair [she laughs], but we’re sitting there right next to you... It’s a myth to think that only industry is doing this or only government is doing this or only the nonprofit sector is doing that. It takes all three of our sectors together to make this work.” Alaska’s chambers of commerce are often proponents of that exact kind of interaction and communication as they bring together for-profit, nonprofit, and government entities to build healthy business communities. “We all look at the business environment from 5,000 feet; we look at what’s in the best interest of business and business development in our community,” says Bruce Bustamante, president of the Anchorage Chamber of Commerce, a 501(c)(6). He continues, “We have three seats on our board of directors that we hold for the military; a seat for superintendent of the Anchorage School District [Anchorage School Business Partnerships is a 501(c) (3)]; and we have a representative from the Anchorage Assembly and a representative from the Municipality of Anchorage… in our situation we can act as a liaison, pulling military and government into business.” Bustamante says that the Anchorage Chamber of Commerce offers “three pil-
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lars” to its members: business education, networking opportunities, and advocacy. The nonprofit’s six employees work to provide those services to its more than 900 member organizations, “which range in size from one-person members all the way up to some of the largest oil companies, banks, and other large businesses in Anchorage.” Of those 900 organizations, he roughly estimates 100 are nonprofits. “If a person wants to come to our committee meetings or to our board meetings and speak on an issue, they’re talking to probably the most diverse business group of any organization in Anchorage,” he adds. It’s pretty difficult to argue against the idea that, as all those groups work together, Alaska will feel the benefit. Nonprofits aren’t always the most visible in the community, in large part because they don’t spend their funds on advertising—they spend them on their mission. And that mission, which is often dismissed as just soft-hearted charity, is generally anything but. “Unlike most anywhere in the Lower 48, [nonprofits in Alaska] are delivering essential services. When your house catches fire in rural Alaska, it’s a nonprofit fire department that puts it out. When you get in an accident on the Seward Highway, it’s a nonprofit ambulance service that picks you up. So while it might look like a grant at the state level can just be cut, the amount of money that the state would spend to deliver the same service would be astronomically higher,” Wolf explains. “This is a conversation about how nonprofits are really doing it better, cheaper, and faster. The state will spend more money without us. We’re leveraging volunteers; we’re leveraging private philanthropy. We’re on the ground, we live in those communities, and we know what our communities need. It’s effective. It’s efficient. And it’s the best use of a state or local government dollar. We have to be in it together. “I would love for everyone to really think about how is it that nonprofits impact their lives in both the obvious and then really not obvious ways, because nonprofits are really busy doing the work. They’re not always very good at telling their story, and it’s not always very obvious when a nonprofit is behind this amazing thing that’s happening in your life.” www.akbizmag.com
BUILDING STRONG FUTURES TOGETHER. LIVE UNITED “By supporting programs that help youth start school ready to learn, stay on track and graduate prepared for college and career, Wells Fargo is doing its part to achieve and maintain Anchorage’s community goal of a 90 percent high school graduation rate. We are proud to partner with United Way of Anchorage in the fight for the health, education and financial stability of every person in our community.” Greg Deal, Alaska Region Bank President Wells Fargo United Way of Anchorage
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2019 Engineer of the Year Nominees served on the board and she’s been working on facility and mainAmy Mestas scholarship selection com- tenance projects since joining Coffman Amy K. Mestas, PE, SE, is a mittee in 2015 for the Society in 2014. Her notable projects include registered civil and structural of Women Engineers and has contributing to the design of the Point engineer and PDC Engineers’ participated in several Positive Thomson gathering and transmission senior associate leading their Leadership for Active Alaskan pipelines. She has also been actively instructural engineering group. Youth conferences. Mestas volved in various projects supporting the She has a BS and MS in civil volunteers during E-week Tesoro Alaska pipeline. As a consultant, engineering from the Illinois each year as a public speaker she has had the opportunity to work Institute of Technology. Amy Mestas and mentor. Mestas serves on the board for diverse owners/operators through©Kevin Smith Photography Since the Anchorage earth- out the state in piping engineering and of the Structural Engineers Association of Alaska where she is the im- quake on November 30, Mestas has project management. Johnson is an mediate past president, having held the been working around the clock organiz- active member of Society of Women positions of treasurer, vice-president, and ing PDC’s structural engineering group Engineers (SWE). Over the past eight president over the past five years. She in post-earthquake inspection efforts. In years, she has held various offices, inalso serves on the board for the Alaska the first two weeks following the earth- cluding president. She is currently serving Professional Design Council and is a mem- quake, their team provided more than a hat trick as vice president. Through ber of several other industry organizations. forty public and commercial facility in- SWE Johnson enjoys participating in Mestas has thirteen years of structural spections and more than forty-five resi- science, technology, engineering, and engineering experience and eight years dential inspections. She looks forward to math (STEM) flavored outreach activities of multi-discipline project management sharing her experiences and stories with like SmartGirls Rock, Girl Scout Women experience. She has served as the lead students during this upcoming E-week. in Science and Technology day, and othMestas was nominated by the Structural ers. Since 2005 Johnson has been volstructural designer for projects such as the Chena River Lakes Flood Control Project Engineers Association of Alaska, a non- unteering as a grader with Mathcounts, a Administrative Office and Visitor Center, profit organization established to pur- nationwide nonprofit organization dedithe Crown Point Maintenance Station, City sue the common interests of practicing cated to making math fun for students of Valdez Kelsey Dock Interpretive Center, structural engineers and others sharing in grades six through eight. She is also and the John R. Pugh Student Residence an interest in the activities of structural a member of Anchorage East Rotary, Hall at the University of Alaska Southeast, engineers. where she works with high which was awarded an Honor Award in school foreign exchange stuthe category of Structural Systems during dents as the club’s youth exKatie Johnson Engineers Week in 2015. change officer. In addition to Katie Johnson, PE, has more Her recent military design work includes than ten years of experience providing student counseling projects throughout Alaska. She has been as a mechanical engineer and and assistance during the acresponsible for high-altitude electromag- currently works at Coffman ademic year, she chaperones netic pulse protection, missile field blast Engineers. Born and raised foreign teens on road trips design, risk category 5 seismic design, and in Anchorage, she holds two and cultural events around Katie Johnson the renovation of historical facilities. She bachelor of science degrees: the state. In her spare time, has worked as a member of seismic re- mathematics from Purdue Johnson enjoys hiking with © Eric Teela view panels for projects related to Alaska’s (2003) and mechanical enher dog and quilting. missile defense assets at Fort Greely and gineering from University Johnson was nominated Clear AFB and has provided both the de- of Alaska Fairbanks (2008). by SWE, the first society dedsigns and reviews for critical mechanical She recently graduated from icated to the advancement of and electrical component designs for high University of Alaska Anchorage women in engineering. seismic conditions. with a master’s in engineering Mestas is also active in the commu- management (2018). Bradley Sordahl nity. She is the head volleyball coach at Johnson has had the good Bradley S. Sordahl, PE, is a South Anchorage High School and was fortune to see both sides of mechanical engineer with Bradley Sordahl the Northern Lights Math and Science the fence. Her career began thirty-five years of experience Night Chair for the past two years. She with designing pipelines, and in Alaska. Sordahl has worked MBA Consulting Engineers 18 | February 2019
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at MBA Consulting Engineers since 1992 and has been principal and chief mechanical engineer since 2007. Sordahl came to Alaska with two suitcases and began his engineering career with CMH/ VITRO in 1983 after graduating from Washington State University with a BS in mechanical engineering. Pullman became Sordahl’s hometown after growing up as a “Boeing Brat” in the Minuteman Missile Program. Sordahl lived in essentially every Midwest “rectangular” state, moving twenty times in eighteen years and attending five high schools in three states. He earned his PE at CMH before giving sales a try with the Trane Company. He completed the Professional Sales Engineering Program in Lacrosse, Wisconsin—essentially a master’s degree in heating, ventilating, and air conditioning. Having discovered sales was not for him, Sordahl joined MBA in 1992 as a mechanical project engineer. At MBA Sordahl has been fortunate to be the mechanical engineer of record on high profile projects and Alaska landmarks including the William Jack Hernandez Fish Hatchery, Alaska Native Heritage Center, Homer Islands and Oceans Center, Near Island Research Facility, Navy SEALS Cold Weather Training Facility, Iditarod Dining Hall, and hundreds more. Recent projects include two challenging renovations for the Anchorage School District at Willow Crest Elementary and Chugiak High School. Sordahl enjoys and embraces any opportunity to solve an engineering problem. He holds memberships in professional/ technical organizations including AMCA, NFPA, and ACEC and is past president of the Alaska Chapter of the American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE). Sordahl volunteers for the “I Know I Can— Kids2College Program” and is enjoying his first year contributing to Dimond Engineering Academy’s CANstruction design. He currently serves on the MOA IMC IFGC Code Review Committee. Sordahl volunteers weekly for the Mobile Food Pantry with Lutheran Social Services. Sordahl enjoys time at the family cabin on Big Lake with Jodi, his wife of thirty-four years. Sordahl also enjoys golf, but he is passionate about snow machining. He completed the 2010 Iron Dog Trail Class Race to Nome and has been an Iron Dog Race volunteer ever since.
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Sordahl was nominated by ASHRAE, a global society dedicated to advancing the arts and sciences of heating, ventilating, air conditioning, and refrigeration to serve humanity and promote a sustainable world.
Erica Jensen Erica Jensen, PE, PTOE, graduated summa cum laude from the University of Alaska Anchorage (UAA) with a bachelor of science degree in civil engineering and a master’s in engineering management. She is also a professional traffic operations engineer and has more than twelve years of experience with emphasis on transportation, aviation, and site design projects. As project engineer for CRW Engineering Group, Jensen has been the lead designer for a number of major projects throughout Anchorage: Campbell Airstrip Road and Trail—Jensen provided detailed design for this mile long transportation project to upgrade the roadway and construct a new trail through Far North Bicentennial Park. She helped balance the needs of local residents, park users, and federal regulatory agencies. Merrill Field Airport Miscellaneous Projects— Jensen is currently designing upgrades to
Alaska Professional Design Council (APDC), and UAA’s College of Engineering. Jensen is the current secretary for APDC and previously served as an officer for the ITE Alaska Section. At the national level, Jensen is the managing editor of ITE Western District, which Erica Jensen Lake Hood Airport Taxiway encompasses all thirteen states CRW Engineering Victor— Jensen provided detailed from Colorado to Hawaii. design for this transportation link serving When not focused on engineering, aircraft traveling between Lake Hood Seaplane Jensen is active in giving back to the comBase and Ted Stevens Anchorage International munity. She is on the board of Cook Inlet Airport. Jensen designed improvements to Soccer Club, serving as secretary, and the unique intersection of Postmark Drive and “coached” recreational soccer for ages Taxiway V, which is shared by vehicles, aircraft, U4-U8 (although it often felt more like and pedestrians. wrangling herds of cats versus coaching). Jensen is also on the Parent-Teacher The Susitna Flats— Jensen is managing the Association for Trailside Elementary civil site design for this downtown private School and she volunteers every other development luxury housing project at the west end of the Park Strip overlooking Turnagain Arm. week in her son’s classroom. When she does find down time, She provided detailed design solving grading, Jensen enjoys jiu jitsu, rock climbing, utility, drainage, and permitting challenges. camping, biking, and traveling. She comJensen is active in the professional peted in the 2016 International PAN Jiu community through her involvement Jitsu Championship, earning gold in her with, and presentations to, professional weight and belt division. She has luckily organizations and schools, including the not yet needed to utilize these skills on unInstitute of Transportation Engineers (ITE), reasonable contractors or young interns. taxiways, aprons, and parking areas at this municipal airport and solving the challenges of building over a former landfill site. She developed construction phasing plans to maintain uninterrupted airfield access for the adjacent hospital and medevac route.
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Nicole Knox Nicole Knox is happy to represent Alaska’s home-grown engineers. She has fifteen years of civil engineering experience with a broad range of site, roadway, utility, and airport design experience. Knox grew up in Anchorage, stayed for college, and graduated from the University of Alaska Anchorage (UAA) in 2004 with a bachelor of science in civil engineering. She worked as an engineering intern at ASCG, Inc. during school, then moved to R&M Consultants shortly after graduating. She has been part of the R&M team ever since. Knox steadily progressed from staff engineer to project engineer to senior project engineer and is now a shareholder of the company. She was promoted to R&M’s group manager of site development in 2017. Her experience includes site layout, grading, storm water and snow melt management, utility services design, signing
Alongside work, Knox finds and striping plans, and pedesgreat value in professional trian and vehicle access and and community service. She circulation analysis. Her focus is a willing mentor to students over the past thirteen years and young professionals. She has been working on large and has been actively involved in small, public and private site denumerous local professional velopment projects throughout organizations, serving conAlaska, each with their own currently on multiple boards unique challenges. Knox is highNicole Knox and committees beginning ly regarded for her attention to © Greg Martin Photography with her enrollment at UAA. detail and loves collaborating with energetic project teams to enhance Knox hopes to inspire other engineers her community and communities across to spend a little time giving back to the Alaska. She has provided civil site design engineering community, whether building for numerous schools, parks, and public bridges out of toothpicks and gumdrops facilities around the state. Knox is person- with elementary schools students, enally interested in how universal and inclu- couraging high school students to considsive design concepts can be seamlessly er engineering, scoring a few scholarship incorporated into site design to make vis- applications, or helping college students itors of all ages and abilities feel welcome, with their resumes. Knox was nominated by The National safe, and inspired by their surroundings. She feels fortunate to have worked on so Association of Women in Construction many exciting projects, including the re- Alaska Chapter, which provides support, cently completed Anchorage Museum networking, training, and more for womexpansion, Anchorage School District and en professionals in construction, and the Lower Kuskokwim School District school Society of American Military Engineers addition and renovation projects, and Anchorage Post, which leads collaborative the award-winning Alaska Airlines Center, efforts to identify and resolve national sewhich brought her back on to the campus curity infrastructure-related challenges. of her alma mater.
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Jensen was nominated by ITE, an international membership association of transportation professionals who work to improve mobility and safety for all transportation system users and help build smart and livable communities.
ARCHITECTURE & ENGINEERING SPECIAL SECTION | NESS PROFILE © Kerry Tasker
22 | February 2019
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C
hristine Ness is a fire protection engineer and project manager at PDC Engineers in the company’s Anchorage office. She earned a bachelor of science in mechanical engineering from Bradley University in Illinois and studied fire protection engineering at Worcester Polytechnic Institute in Massachussetts. She earned her Alaska FPE PE in May of 2014, and today uses her expertise in facility life safety hazard analysis and fire suppression and detection systems design to keep facilities and people safe throughout Alaska and beyond. Nominated by the Alaska Chapter of the National Association of Women in Construction, Ness was named the 2018 Engineer of the Year during E-Week last February. Alaska Business is pleased to share a little more about this exceptional woman and her vital work below.
Alaska Business: What drew you to engineering? Christine Ness: I’ve always been a tinkerer. I come from a long line of tinkerers, engineers, techs, engineering techs, whatever you want to call us. One of my mom’s favorite pictures from when I was teenager is of me sitting next to my first car. I’ve got on a cocktail ring and long nails and engine oil all over the place. From the time I could see over the fender of Dad’s ’50 Chevy, I wanted to know how things work. The fun was understanding how things went back together after I took them apart. I always knew I wanted to be an engineer. www.akbizmag.com
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2018 Engineer of the Year Christine Ness
ARCHITECTURE & ENGINEERING SPECIAL SECTION | NESS PROFILE
My childhood friends even remarked about how good I was at fixing things.
with friends over Memorial Day. Waking up to the waves just beyond the back tires was pretty incredible.
AB: What brought you to Alaska? AB: How did you find your way to PDC? Ness: A change of scenery. I had been working in Virginia Beach since 2006. In 2013, a recruiter from Illinois, of all places, called me up and said: “Hey, how’d you like to work in Alaska?” And so I had some personal clearing of the decks. I was ready for something different so I moved here in October 2013. I promptly found a wonderful Alaska man and got married. He’s brilliant. He keeps me challenged and motivated every day. I found my love in Alaska in many ways. I have always lived near a river, lake, or ocean. I love to go fishing. If sleep allows, I will go out at God-knowswhat hour of the morning to sit and throw a line into the water just because there’s nobody else around. I have been noted by friends to be on walk-abouts when the weather is mild, camping in the back of my old Tahoe. My first spring in Alaska, I camped on Nikiski beach
24 | February 2019
Ness: A few months after getting married in the spring of 2015, I found the job that I thought I’d always wanted and went to Japan. I realized after two months that my marriage is much more important than any job and came back to forgiveness. Two months after that, PDC Engineers offered me a position. I find PDC interesting due to its diverse clientele and projects. Also, it is an employee-owned company and it is, especially during earthquakes, a pretty supportive family.
AB: Tell me a little about the work you do. Ness: Fire protection engineering is suppression, detection, notification, and passive architectural design. I combine these approaches into one solution. There are trade-offs in building codes that allow flexibility: if you install
a sprinkler system in a building, you generally don’t have to build it as fire resistive, or if you install a fire detection and emergency notification system, you can have a slightly longer evacuation path, for example. Challenging projects start out with: “Well, we’ve designed this building and we want to build it. However, we just found out we need to include sprinklers because the fire marshal said so [she smiles].” The Army Corps, for instance, is an excellent client because they recognize the need to comply with building safety codes and plug design and systems cost into the schedule and budget on the front end.
AB: Typically when you’re working with clients, do they have a plan they want you to implement or just a problem they need you to solve? Ness: I’ve learned what questions to ask at the front end. A project could be new construction or a renovation. Each one of those has its own sequence of what I need to follow. For example, the
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F-35s coming into Eielson will occupy existing 1950s era buildings that needed updating to accommodate the new flight crews. There’s a particular building that’s long and has four hangar bays. Jets enter on one side and continue out the other side. Having that type of configuration in new construction, you would expect to have hangar doors that slide out of the way like barn doors or bi-fold doors. However, the existing hangar doors tilt up and then cause interior systems obstruction. The project went into construction before someone said: “When the hangar doors are open, they will extend into the hangar. We can’t put this up there, can’t put that in there.” You have to design for both of the doors to be open at the same time. I have to think of ways to accommodate existing facilities so the client does not have to upgrade expensive items like hangar doors. New construction brings in a whole set of requirements that don’t apply to existing facilities undergoing a minor upgrade. One of the projects I’m working on is at McMurdo Station in Antarctica. It’s an existing building. They’re adding on a whole new wing with server rack rooms and some office space. I had to consider the existing building that’s been there twenty to thirty years and how to feed the new building sprinklers with the existing system valves. I also needed to work out if the existing fire alarm system will work in the new building. I provided fire suppression system design, including hydraulic calculations for a new drypipe zone and extension of an existing two-zone dry pipe sprinkler system. The sprinkler systems were pressurized by a nitrogen generator instead of air to support longevity. I designed a clean agent suppression system for the server rack rooms with early warning aspirated smoke detection. I paid special attention to suppression options rated to -60 degrees Fahrenheit, offering minimal water hazards, and immediate automatic response. I’m proud to be part of that project and hopefully I’ll be there next year for final testing and acceptance.
ARCHITECTURE & ENGINEERING SPECIAL SECTION | NESS PROFILE
what’s existing, yet meet the level of safety that the code requires. I will spend days with it creeping in and out of the back of my mind: “Oh no, this problem is still bothering me, there’s something not right.” I’ll just keep going back and back and then finally, ding! “Okay—we’re good, I feel good about this solution.”
AB: In your day-to-day work, what do you find the most challenging? Ness: Making a project work within a budget, and keeping track of that budget. The usual challenge is having enough money in a project budget to do what we need to do properly. I can usually make things work within whatever space I have. The remaining bits I can work through and meet requirements.
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A N C H O R A G E FA I R B A N K S M AT- S U VA L L E Y
26 | February 2019
AB: What do you find most fulfilling about your work? Ness: That I am making things safer for people and hopefully they’ll never know it. They’ll never need to depend on it. But if something does go wrong, the system works properly and keeps people safe.
AB: Do you have any advice for someone looking to enter your field? Ness: Keep asking questions! Look for mentors: find people that you respect, just in general, and start figuring out, first of all, why do you respect them? How can you emulate them? Ask them what drives them from day to day. Does that work for you? Start implementing that in your own life. Get involved in STEM activities; get involved in programs like the National Association of Women in Construction. I get involved with programs that support young ladies getting into construction fields. I’ve demonstrated to the Girl Scouts how a toilet works. One asked, “You’re a fire protection engineer, why did you do that?” Well, because I can’t bring a fire in here to show you how that works! [she laughs]. Girl Scouts are always very excited and ready to be knowledge sponges. They are encouraged to ask questions, but they also know when to listen.
Alaska Business www.akbizmag.com
Ness: I’m already doing it! Honestly, variety is what I need and look for. That’s why I’m here. I’ve been building on what was already a strong discipline of engineering within PDC, and it’s getting stronger. I’ve been marketing the heck out of PDC since I got here.
AB: You like to be busy?
Where Engineering Meets the Environment.
AGC Excellence in Construction Award 2017 for Meeting the Challenge of a Job Between $3-$8 million
Ness: Yes, my husband says I feed off that. I enjoy teaching, I enjoy learning.
AB: If you had a pile of money to apply to any project to benefit Alaska, what would it be? Ness: This isn’t necessarily specific to my discipline, but why can’t we look at alternate training topics to bring our labor force in Alaska in a new direction, like tech? We’ve got people all over the state that are excited about being able to do pipeline work, drilling, mining, and all the different stuff that goes in with the existing industries. But an alternative industry that expands the skills base for the state of Alaska? I see a state that could benefit from expanding into another industry or set of industries to diversify our skill set as a state. If I had a pile of money for a project, I would like to pursue research and development in fire protection engineering, perhaps working with existing cold-environment research sites like the one at Fort Greely. Cold weather equipment testing generally goes to -40 degrees Fahrenheit and rarely goes further. However, there are plenty of places around the world that regularly see temperatures well below that. Why not look at dry chemical and gaseous clean agent applications that work in a remote environment that gets very cold too? One of my first jobs was with Underwriters Laboratories. I loved being able to think about how a product might fail and pose hazards like overheating, electric shock, or physical injury and how to test for those. Then how to help the client improve design to prevent product failure. www.akbizmag.com
Specializing in: • Bridges • Roads • Site Work • Environmental Cleanup
(907) 357-2238 | www.tutkallc.com SBA Certified HUBZone & EDWOSB/WOSB • DBE
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Civil | Structural | Mechanical | Electrical | Fire Protection | Corrosion Control Project Management | Instrumentation & Controls | Landscape Architecture 800 F Street, Anchorage, AK 99501
Alaska Business
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www.coffman.com
February 2019 | 27
ARCHITECTURE & ENGINEERING SPECIAL SECTION | NESS PROFILE
AB: Is there a dream project you’d love to work on?
ARCHITECTURE & ENGINEERING SPECIAL SECTION | PROJECTS
UAF Engineering Learning & Innovation Facility. © Ken Graham | AMC Engineers
Discovering Excellence in Engineering 2019 Project of the Year Submissions
W
e are proud to once again present a glimpse at this year’s Engineering Excellence Project of the Year Awards. The winners of this esteemed award will be announced during Engineer’s Week 2019 occurring February 17 through 23. Congratulations to all the nominees. 28 | February 2019
AMC Engineers—Engineering Learning and Innovation Facility The University of Alaska Fairbanks (UAF) opened its new Engineering Learning and Innovation Facility for the Spring 2018 Semester. This contemporary, 119,000-square-foot, $121.6 million facility is situated and forms a connection between two existing buildings. The facility’s design begins with a high performance building envelope, specifically designed for the Southcentral Alaska climate. Window placement, skylights, glass walls, and sophisticated lighting and lighting controls create a high energy
vibrant feel in a place where natural sunlight is scarce much of the school year. The building’s central HVAC systems are specifically designed to take full advantage of the low-pressure steam, 100 degree Fahrenheit waste heat, and 42 degree Fahrenheit chilled water provided from the UAF campus power plant. The HVAC systems serving the thirty laboratory suites and high bay structural testing lab include heat exchangers to extract and reuse heat from the laboratory exhaust air steams. Radiant floor heating and cooling provide stable baseline indoor temperature throughout the building.
Alaska Business www.akbizmag.com
Bartlett High School Cafeteria Addition. © Kevin G. Smith | BBFM
BBFM Engineers—Bartlett High School Cafeteria Addition BBFM Engineers designed the first innovative bolted SidePlate moment frame structure in the state of Alaska. When Bartlett High School opened in the fall of 1973, it included Begich Junior High. Therefore, there were two separate cafeterias with separate kitchens. When it became solely a high school, neither cafeteria was large enough to hold the entire school. After many years of trying to make this work, a study was done to evaluate adding seating to one cafeteria, expanding the cafeteria into the kitchen and adding a new kitchen, or providing an entirely new cafeteria and kitchen at the juncture of the east wing and the administrative area. The decision was to provide an entirely new cafeteria rather than try to force an existing cafeteria to work. It was decided early on to use the new bolted moment frame system, as it allowed for an unblocked view out of the exterior windows. BBFM Engineers worked with SidePlate through the three different versions of the structure: a structure with a partial second floor for www.akbizmag.com
Glenn Highway/Muldoon Road Interchange.
ARCHITECTURE & ENGINEERING SPECIAL SECTION | PROJECTS
Waste heat from mechanical/electrical/ server rooms, refrigeration system condensers, and numerous other heat sources is captured through a waste heat recovery loop, providing first stage preheat to the building’s outside intake air. Waste heat from the central plant provides second stage preheat, limiting the demand for central plant steam heat. Key building system components are displayed through observation windows, while large monitors display real-time building energy usage. The building design also includes a highly flexible power distribution system and telecom distribution system to simplify future revisions to the building.
© Ken Graham | DOWL
the mechanical room, one with a lower roof for the mechanical equipment, and a single-story structure with the mechanical room on the roof. All three versions had a low roof segment along the east wing to allow daylight into the existing second story classroom windows. The structure was fabricated in two local shops and quickly erected without extensive special inspection required by welded lateral load resisting systems.
DOWL—Glenn Highway/ Muldoon Road Interchange The Glenn Highway/Muldoon Road Interchange was originally constructed in the 1970s. Recent commercial and institutional growth on the north side of the interchange created a large increase in north and southbound traffic along Muldoon Road through the interchange, which led to congestion and an increase in the frequency of crashes. Two acceptable interchange upgrade alternatives were identified through preliminary engineering efforts. The Diverging Dimond Interchange was selected because it is more cost effective, performs at a higher level-of-service, and allowed the existing bridge to stay in place as replacements are constructed. The project replaced the former Muldoon Road Bridge over Glenn Highway with two, three-lane bridges. The project also increased pedestrian and bicyclist facilities, improved ditches and drainage, and relocated and constructed utilities. Services included all preconstruction efforts to complete this jointly funded state and federal project. Major elements of the project included two new Alaska Business
February 2019 | 29
ARCHITECTURE & ENGINEERING SPECIAL SECTION | PROJECTS
Aerial view of Spenard Road Reconstruction. © Peyton Briggs | Lounsbury & Associates
Zacharias John Williams Memorial School front entrance. © Kevin G. Smith | Reid Middleton
30 | February 2019
Alaska Business www.akbizmag.com
Lounsbury & Associates— Spenard Road Reconstruction Phase II, Hillcrest Drive to Benson Boulevard Spenard Road from Hillcrest Drive to Benson Boulevard in Anchorage was previously a roadway with frequent safety incidents due to turning traffic and inadequate sidewalks for pedestrians. Designed as Anchorage’s first “Complete Street,” this reconstructed segment of roadway to has enabled safe access for all users including pedestrians, bicyclists, transit riders, and motorists. Design elements included eight-foot sidewalks, marked crosswalks, five-foot bike lanes, a center left-turn lane, and bus stops with amenities. In order to grow the sense of community and favor for the project, designers worked with property owners to take improvements to the front door of the businesses. Other additions include off-street parking, LED lighting, landscaping, and art features that reflect the spirit of Spenard and make the corridor more inviting and attractive for patrons and local businesses. To minimize the impact on local businesses during construction, the work was phased into three zones so that only part of the road was in construction at a time. The project was a great success due to a collaborative effort between the owner, designer, and contractor, who maintained an “open door” policy with the public that fostered community support throughout the construction work. This reconstruction project represents the Municipality of Anchorage’s continuing commitment to making neighborhoods streets safe, welcoming, and convenient for all users—drivers, pedestrians, cyclists, and public transit passengers alike. It is also the culmination of a decades-long effort by Spenard leaders, activists, and business owners working with the municipality’s project team to create a roadway that is beneficial for everyone. www.akbizmag.com
Reid Middleton—Zacharias John Williams Memorial School, Napaskiak Reid Middleton provided structural engineering for the design of a new, 41,000-square-foot K-12 school. The facility is a pile-supported, singlestory, steel-framed structure with steel joists encapsulated by wood floors and structural insulated panel (SIP) roofs and walls. SIPs allowed the majority of walls and roof to be constructed off-site and barged to the site. Included in the facility are a mechanical mezzanine, gym, library,
computer lab, and bilingual/bicultural room. Students and visitors will enter the school by way of a long ramping corridor, symbolic of the Yupik Men’s House (Quasgiq) entry tunnel (an earthen structure built from driftwood and covered with sod). The building is an emergency shelter and serves as one of just a handful of buildings in the town with a backup generator and stand-alone septic system. The school successfully incorporated multiple local Native elements to make the interior welcoming to all.
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Alaska Business
February 2019 | 31
ARCHITECTURE & ENGINEERING SPECIAL SECTION | PROJECTS
three-lane-wide, two-span bridges; 1,500 feet of 36-inch water main relocation; noise walls; landscaping; pedestrian facilities; signalization; high mast lighting; geotechnical engineering; and foundation design. Bid-ready plans were completed in August 2015, less than thirty months from when the project was initiated. Construction started spring 2016 and was completed fall 2018.
ARCHITECTURE & ENGINEERING SPECIAL SECTION | INTERIORS
From Open Floors to Enclaves
As more workplaces switch to a flexible and open office concept, it’s not uncommon to see smaller workspaces. In some cases, the traditional 80-squarefoot workstation is switching to a 60-square-foot space. Stantec
Office interiors adapt to changing times By Vanessa Orr
W
Smaller conference rooms or “huddle rooms,” like this one at Stantec’s Anchorage office, are generally around 150 square feet in size, can accommodate four to six people, and are rich in technology. Stantec
32 | February 2019
hen it comes to office design, taste is subjective. But one thing that most business owners, architects, and interior designers tend to agree on is that today’s offices need to be adaptable. “Office space has become more fluid and agile over the years; for example, while a formal conference room may still be a requirement, it might now feature divider walls that allow the bigger space to be divided into two spaces,” says Stantec Associate Jessica Cederberg. “The furniture is also mobile; it may be stackable and movable, which makes it easier to adjust for larger or smaller groups.” “A lot of clients now talk about flexiAlaska Business www.akbizmag.com
ARCHITECTURE & ENGINEERING SPECIAL SECTION | INTERIORS
bility, especially during these uncertain economic times,” agrees Principal of Operations and Designer Natasha Schmidt of SALT (formerly RIM Design). “While they want appealing amenity spaces that attract employees and a variety of collaborative and open work areas, they need these areas to be flexible so that they can change use as they ramp up or down on staffing.”
Open Floor Plans and Enclaves According to Cederberg, while many clients lean toward a less formalized open office concept, they are also taking into consideration employees’ needs for semi-private workspaces. “A lot of what we’re seeing is the creation of multi-use rooms or gathering spaces that are less formal than before,” she explains. “Some clients are moving away from the idea of having an official reception area altogether; in fact, we have one client whose elevator opens up to the office’s kitchen space because their theory is that their employees are the company’s ambassadors and should greet visitors when they arrive.” She adds that clients are also requesting enclaves, or “phone booths,” that are just big enough for one or two people. “The idea is that in an open office concept, some people might want to go into an enclave to work in quiet or to think; they can also be used to make private phone calls.” As commercial real estate becomes more valuable, many businesses are keeping an eye on that particular cost and may look at trying to make do with less office space, which is one impetus behind these types of small work areas. While some companies still consider the private corner office a perk, others are looking to utilize every inch that they can. “The last office improvement I did allowed for 60 square feet per workstation, while the typical space is about 80 square feet,” says Cederberg. “The good news is that now employees can move anywhere in an office; they can make any area their work space.” Typical enclaves are roughly 30 to 50 square feet and feature a closeable door. Another in-demand item, the huddle room, is approximately 150 square feet and can accommodate four to six people. “This room is often technology rich and can include equipment for www.akbizmag.com
Alaska Business
February 2019 | 33
ARCHITECTURE & ENGINEERING SPECIAL SECTION | INTERIORS
Companies that are competing for the best employees need to provide attractive amenities that will entice and ultimately retain them, which can include large café spaces, lots of natural light, respite areas, and collaborative spaces.
conference calls, flat screens, computer monitors, and more,” says Cederberg. There are other considerations to take into account as well. The nature of a business can affect the design, as can the type of employees. “In an architectural firm, the design might be more flexible because the space is used for collaboration,” says Giovanna Gambardella, principal architect at Stantec. “In a medical office, privacy is a consideration, and the lobby area needs to be designed to be welcoming and to make people feel comfortable and secure. “From a generational perspective, millennials work very differently than
© Chris Arend
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Amenities to Attract Employees With people spending so much time at work, it’s important that employers make it somewhere that employees want to be. “We recently worked on a tenant improvement project with an insurance company that created a ‘health room,’ where during lunch or at the end of the day, employees could meet to take yoga classes or get massages,” Gambardella says. “We’ve also added maternity rooms with sofas, refrigerators, sinks, and microwaves for mothers who have returned to work and still need privacy. These rooms can also be used by people with migraines who need a place to lie down.”
Offices are also being designed so that employees have more places to socialize. “We have one client that hosts a potlatch every month, so we designed their conference room with that in mind,” she continues. “You wouldn’t believe the amount of outlets we added for crockpots.” According to Kelsey Davidson, principal and designer at SALT, companies that are competing for the best employees need to provide attractive amenities that will entice and ultimately retain them. “This may include a large café space, lots of natural light, respite areas, and collaborative spaces,” she says. “Some companies choose to riff off traditional meeting rooms with huddle spaces that have more of a lounge-like seating arrangement. This allows employees to choose the best type of work spaces based for the tasks they want to accomplish.” And while many offices have embraced the open concept or addition of collaborative spaces, it does raise some challenges. “These types of spaces create a lot of background noise, so we’ve found that white noise machines are a big sell with
GROWING WITH ALASKA
Phone enclaves—or phone booths—are popular in today’s office design. Stantec architect Jessica Cederberg incorporated this 60-square-foot phone enclave in Stantec’s Anchorage office design. Photo courtesy Stantec
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Alaska Business
February 2019 | 35
ARCHITECTURE & ENGINEERING SPECIAL SECTION | INTERIORS
Gen Xers,” she adds. “They prefer less formal spaces and more gathering areas. And because working remotely is very important, technology often drives the design.” Gambardella adds that geographical considerations also need to be kept in mind in Alaska with workstations oriented to receive more natural light during the darker months and to avoid window glare.
ARCHITECTURE & ENGINEERING SPECIAL SECTION | INTERIORS
“It’s worth every penny to work with a good team—not just designers, but also architects and engineers—to streamline everything. Working together, they can provide the client with a highly efficient space for the best cost.” —Kelsey Davidson, Principal, SALT
clients who can adjust the background sounds so that noise isn’t as prevalent,” says Gambardella. “We also use a lot of acoustical panels and look at the design so that big talkers—like someone in sales who is on the phone all the time—are in a more remote location so that they don’t disturb others.” “The installation of white noise or pink noise systems is really important in reducing the distraction of noises generated by employees in adjacent spaces,” agrees Davidson. “There is even a new system available by Habitat called Sound Scaping that is designed to be more dynamic and senses the volume of conversations to redistribute white noise where needed.”
Putting People First According to Kathleen Benoit, project manager at Architects Alaska, as office design evolves it is beginning to focus more on managing the humancentered environment. “Companies are now starting to think more about the occupants of their buildings and how to enhance their comfort and health,” she explains. To this end, the WELL Building Standard, which is similar to LEED, was created to help building owners and designers focus on their occupants. The program works on a points-based system, and building owners can apply for accreditation if they choose. “It’s a program that we look to a lot for cues in our design,” says Benoit. “Even if a client isn’t going for certification, we use the concepts in WELL and apply them to office spaces.” Benoit gives the example of the MatSu Health Foundation building in Wasilla, the first Class A office building in the Mat-Su Valley. The building is used by the public for information on various programming, ranging from soccer for four-year-olds to senior services. “We designed the building with heated sidewalks to keep out dirt and ice, and ‘healthy entrances’ including long, wide hallways that gave walkers time to kick contaminants off their shoes,” explains Benoit. “Drinking fountains have bottle fillers on all floors for easy access to water, and larger circulation zones and wider corridors make it easier for people using wheelchairs and strollers or the elderly walking side by side.” 36 | February 2019
Alaska Business www.akbizmag.com
“People see Google and Amazon and all of these tech company offices that are on the cutting edge with slides and spas and some think that’s where their company should be, too,” adds Schmidt. “But this definitely doesn’t work for most offices. One size does not fit all. “Most of what we design is a combination of form, function, and technology,” she continues. “During our initial interview, we get to the nuts and bolts of what each department does and how they collaborate with the public and with other departments and how they use technology. We put that into a spreadsheet
and go over it with the client to make sure that we can marry all of their needs.” Schmidt adds that a lot of discoveries happen during this process, which opens a discussion of the ideal office scenario based on each client’s office culture. “We direct the conversation away from what they’ve been doing for years because it’s habit or has been constrained by their current space. Instead we focus the conversation on how their space needs to be based on workflow, people, culture, etc. This helps the team think outside the box and ultimately makes for an improved working environment.”
Client Collaboration Just like any type of construction or renovation project, it takes collaboration to come up with the right office design. One of the keys to this is to truly understand what it is a business does and how its space contributes to meeting that goal. “We spend a lot of time understanding the culture of a business, working with user groups, and taking a deep dive on its inner workings,” says Davidson. “This way, we can create the right mix of open, closed, and collaborative spaces. There’s no point in having an open office if everyone stays in the phone enclaves.” www.akbizmag.com
Alaska Business
February 2019 | 37
ARCHITECTURE & ENGINEERING SPECIAL SECTION | INTERIORS
The firm also created sit-to-stand workstations in all of the offices. “Recommendations say that for every hour a person sits, they should stand for fifteen minutes,” says Benoit. “These types of stations allow them to continue to work but are better for their wellbeing.” Making employees and visitors comfortable is also paramount in office design. “There is a continued trend toward creating a homelike feel to make offices more inviting and to provide a warmer welcome,” says Benoit. “But materials need to be very durable at the same time. Off-the-shelf retail products won’t last long in a commercial environment.” Safety is also a priority, and that includes using sustainable, healthy materials that do not include toxic, off-gassing substances. “We have a ‘healthy’ library in our office of building materials that do not include nasty chemicals,” says Benoit. “When you go through the WELL or LEED program, you are required to prove that the materials you use meet this criteria. Luckily, manufacturers of commercial goods are much more on board now and are making cleaner products.” Benoit adds that the healthcare industry is at the forefront of incorporating artificial intelligence (AI) displayed by computers and software into daily practice. “As AI is more commonly put into practice, it will be exciting to see how its use will inform and transform our office designs; for example, conference rooms may become obsolete because we’re holding meetings in virtual spaces, while in reality we are sitting at home.”
ARCHITECTURE & ENGINEERING SPECIAL SECTION | INTERIORS
In Stantec’s recently opened Portland, Oregon, office, Anchorage architect Jessica Cederberg incorporated a small phone room directly adjacent to a larger “team area”—a collaborative space designed for breakout sessions. The Portland office consolidated employees from three offices into one open-office plan, so providing both privacy and teaming spaces was important. Stantec
SALT also asks that stakeholders representing each area of work within the organization meet at the table—not just the C-suite representatives. “This way, we can make sure the organization is fully represented, ” says Schmidt. Of course, even with the best ideas, budget always plays a part. “Absolutely, design is budget-driven; oftentimes we need to prioritize spaces, looking at the front of house versus back of house like they do in the hospitality industry,” says Benoit. “Clients need to decide if they want more money spent on the reception space or on more spaces for collaboration and break-out. They need to decide what is important both for groups and individual tasks.” “Change is hard, so it’s important that clients are open to the process and look at whether they do things the way they do because it’s the best practice or it’s because of the space they’re in,” says Davidson. “It’s worth every penny to work with a good team—not just designers, but also architects and engineers—to streamline everything. Working together, they can provide the client with a highly efficient space for the best cost.”
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Alaska Business www.akbizmag.com
ARCHITECTURE & ENGINEERING SPECIAL SECTION | DIRECTORY
The Alaska Business
2019 Architecture & Engineering Directory COMPANY TOP EXECUTIVE
YEAR FOUNDED / ESTABLISHED IN ALASKA
WORLDWIDE / ALASKA EMPLOYEES
SOCIAL MEDIA & BUSINESS DESCRIPTION
Laura Young, AK Ops Mgr.
aecom.com AECOM Alaska is a team of engineers, scientists, planners, and support staff providing 1904 92,000 Arctic-smart engineering and environmental services for the complete project life-cycle 1948 50 from permitting for air, water, soils, and solid waste to planning, design, and construction through production and site closure.
Chris Hickling, AK Bus. Dev. Mgr.
1998 2008
156 26
aesolns.com | info@aesolns.com | aesolutions | aesolns | aesolutions aeSolutions is a complete system integrator specializing in safety instrumented systems, automation, process safety consulting, industrial cybersecurity, alarm management, and operations and maintenance solutions; supporting all phases of the Process Safety Lifecycle.
Ahtna Engineering Services 110 W. 38th Ave., Suite 200A Anchorage, AK 99503 Phone: 907-646-2969
Timothy F. Gould, Pres.
2003 2003
35 31
ahtnaes.com | ahtna-engineering-services Ahtna Engineering Services is a self-performing federal and commercial contractor. The firm performs services nationwide including engineering, construction, environmental, administrative, and professional services. AES is positioned to support nationwide requirements with offices in AK, WA, and CA.
AMC Engineers 701 E. Tudor Rd., Suite 250 Anchorage, AK 99503-7457 Phone: 907-257-9100
Pat Cusick, Pres./Pncpl Electrical Eng.
1981 1981
24 23
amc-engineers.com | info@amc-engineers.com AMC Engineers is committed to the design of well-engineered and sustainable mechanical, electrical, and plumbing (MEP) systems, supporting the full range of institutional and commercial projects.
Arcadis 880 H St., Suite 101 Anchorage, AK 99501 Phone: 907-276-8095
Kent Crandall, AK Ops Leader
1888 27,000 Arcadis is Alaska’s leading provider of construction and program management services and a leading global design, project management, and consultancy firm. 1994 15
ASRC Energy Services 3900 C St., Suite 701 Anchorage, AK 99503 Phone: 907-339-6200
Doug Smith, Pres./CEO
1985 1985
BBFM Engineers 845 K St. Anchorage, AK 99501-3358 Phone: 907-274-2236
Dennis Berry, Pres.
1996 1996
10 9
S tructural engineering design and construction admin for new buildings, additions to existing buildings, and analysis of existing buildings, including seismic evaluations and condition surveys, design of tanks, modules, and pedestrian bridges. Specialize in cold climates: Alaska and Antarctica.
BDS Architects 3330 C St., Suite 200 Anchorage, AK 99503 Phone: 907-562-6076
Daniel Seiser, Pres.
1981 1981
12 12
Architecture, planning, interior design, and roof technology.
Blue Sky Studio 6771 Lauden Cir. Anchorage, AK 99502 Phone: 907-727-3185
Catherine Call, Mng. Member
2002 2002
2 2
callbluesky.com | catherine@callbluesky.com Architecture with a focus on residential and food service projects.
AECOM 700 G St., Suite 500 Anchorage, AK 99501 Phone: 907-562-3366 aeSolutions 3800 Centerpoint Dr., Suite 620 Anchorage, AK 99503 Phone: 907-865-5992
40 | February 2019
asrcenergy.com | corp.comm@asrcenergy.com A suite of solutions offered within our service lines and subsidiaries: O&M; equipment 2,778 rental and maintenance; exploration and production technology; regulatory and technical 2,545 services; construction; engineering; pumping services and production testing; pipeline construction and maintenance; tubular inspection.
Alaska Business www.akbizmag.com
YEAR FOUNDED / ESTABLISHED IN ALASKA
WORLDWIDE / ALASKA EMPLOYEES
SOCIAL MEDIA & BUSINESS DESCRIPTION
Tanya Bratslavsky, Pres.
1985 1985
30 20
bce-ak.com | mail@bce-ak.com A multi-discipline engineering and project management company specializing in full design, value engineering, tenant improvements, facility condition and ADA assessments, permitting, energy upgrades and audits, construction management and inspections, QA/ QC, and other services.
Bristol Engineering Services Corporation 111 W. 16th Ave., Third Floor Anchorage, AK 99501 Phone: 800-563-0013
Travis Woods, Pres./CEO
1994 1994
50 30
BristolAllianceOfCompanies Civil engineering, permitting and planning; total project management encompassing planning, design and construction.
ChemTrack Alaska 11711 S. Gambell St. Anchorage, AK 99515 Phone: 907-349-2511
Carrie Jokiel, Pres.
1973 1973
Tom Looney, Mng. Principal
1979 1979
500 110
coffman.com Civil, commissioning, corrosion control, electrical, forensic, fire protection, industrial design, instrumentation and controls, landscape, lighting, mechanical, pipeline integrity management, pipeline and process facility design, project management, structural, sustainable design, energy audit.
Corvus Design 2506 - B Fairbanks St. Anchorage, AK 99503 Phone: 907-222-2859
Peter Briggs, Pres.
2006 2006
6 6
corvus-design.com | corvusak | corvus-design Landscape architecture and planning services including landscape design, site planning, waterfront planning, playground design, recreation planning, community engagement, landscape ordinance and permitting, interpretive design, NEPA and visual simulations. Offices in Anchorage and Juneau.
CRW Engineering Group 3940 Arctic Blvd., Suite 300 Anchorage, AK 99503 Phone: 907-562-3252
D. Michael Rabe, Mng. Principal
1981 1981
73 71
crweng.com | cevans@crweng.com | crwengineering Civil, environmental, structural, electrical, mechanical, and geotechnical engineering, surveying, permitting, aviation design, and construction management.
DCI Engineers 341 W. Tudor, Suite 105 Anchorage, AK 99503 Phone: 907-257-2613
Paul Rogness, Principal
1988 2013
320 7
Structural engineering.
Lisa Greer, Owner
1986 1986
12 12
lgreer@dnsalaska.com Professional land survey firm providing survey services to both the public and private sectors. DNS has completed the following pipeline projects; Moose Pad, CD5, PT Thomson, Alpine, North Star, and Badami Pipelines. DNS services include design, ALTA & environmental, Pipeline ROW Plats, subdivisions.
Bratslavsky Consulting Engineers 500 W. 27th Ave., Suite A Anchorage, AK 99503 Phone: 907-272-5264
Coffman Engineers 800 F St. Anchorage, AK 99501 Phone: 907-276-6664
Del Norte Surveying PO Box 1105553 Anchorage, AK 99511 Phone: 907-529-8651
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907.420.0462 February 2019 | 41
ARCHITECTURE & ENGINEERING SPECIAL SECTION | DIRECTORY
COMPANY TOP EXECUTIVE
ARCHITECTURE & ENGINEERING SPECIAL SECTION | DIRECTORY
COMPANY TOP EXECUTIVE
YEAR FOUNDED / ESTABLISHED IN ALASKA
WORLDWIDE / ALASKA EMPLOYEES
SOCIAL MEDIA & BUSINESS DESCRIPTION
Chris Miller, Pres.
1957 1957
60 60
designalaska.com Design Alaska provides architecture; civil, structural, mechanical, fire protection, electrical, and environmental engineering; landscape architecture; and surveying. The firm also offers planning, condition assessments, energy modeling, LEED, construction administration and commissioning.
Christopher Dillon, Pres.
2004 2004
1 1
dillon@alaska.net Construction management.
DOWL 4041 B St. Anchorage, AK 99503 Phone: 907-562-2000
Stewart Osgood, Pres./CEO
1962 1962
350 120
dowl.com | info@dowl.com | DOWLHKM | dowl-hkm DOWL is a multi-disciplined consulting firm that has been serving Alaska clients for more than 55 years. We offer a full suite of environmental services, including biological and cultural resource surveys, environmental impact assessment and documentation, agency consultations, and permitting.
Doyon Anvil 509 W. Third Ave. Anchorage, AK 99501 Phone: 907-677-3021
Terry Caetano, Pres./GM
1984 1984
45 45
doyonanvil.com | tcaetano@anvilcorp.com Full service consulting engineering for the petro chemical industry as well specializing in exploration, Pre-EIS and early phase development. Extensive experience in brown field revamp projects.
EDC 213 W. Fireweed Ln. Anchorage, AK 99503 Phone: 907-276-7933
John Faschan, Pres.
1980 1980
7 7
edc-alaska.com | john@edc-alaska.com Mechanical and electrical engineering services. Rural water and sewer systems, HVAC & energy, fuel systems, fire protection, piping and pumping systems, facility power systems, SCADA and controls, roadway lighting.
EEIS Consulting Engineers 624 W. International Airport Rd., Suite 104 Anchorage, AK 99518 Phone: 907-258-3231
Rick Button, Pres./Principal Eng.
1989 1989
12 12
eeis.net Architectural services, structural, civil, mechanical, mechanical process, electrical and instrumentation engineering. Projects include camps, office buildings, warehouses, hangars, and various projects for rig and production support.
EHS-Alaska 11901 Business Blvd., Suite 208 Eagle River, AK 99577 Phone: 907-694-1383
Robert French, PIC
1986 1986
5 5
ehs-alaska.com | ecloudy@ehs-alaska.com Our staff of engineers and project managers are skilled in hazmat design for building remodel and demolition projects. Asbestos, lead, PCB, and other hazardous building materials identification. IAQ, welding fume, ventilation studies. MOA 3rd Party Plan Review and ICC and IFC Code Consulting.
Electric Power Systems 3305 Arctic Blvd., Suite 201 Anchorage, AK 99503 Phone: 907-522-1953
David Burlingame, Pres.
1996 1996
200 150
epsinc.com | eps@epsinc.com EPS delivers complete electric power systems study, planning, design, and construction administration services from prime and emergency power production to final distribution for commercial, utility, industrial, and government clients of all sizes.
EMC Engineering 8301 Old Seward Hwy. Anchorage, AK 99518 Phone: 907-644-3923
Ryan Bloom, Owner
2002 2002
75 75
emcalaska.com We provide construction administration, civil engineering, quality control management, materials testing, and special inspection services.
Enterprise Engineering 2525 Gambell St., Suite 200 Anchorage, AK 99503 Phone: 907-563-3835
Kevin Murphy, Pres.
1972 1992
60 38
E EI provides multidiscipline engineering and specialty services throughout Alaska and worldwide. As experts in fuel systems and civil site design, the Anchorage office is home to a thriving team of thirty-eight professionals who are excited to solve complex problems and meet the specific needs of each client.
Environmental Management 206 E. Fireweed Ln., Suite 201 Anchorage, AK 99503 Phone: 907-272-9336
Larry Helgeson, Principal Eng.
1988 1988
22 22
emi-alaska.com | lhelgeson@emi-alaska.com | EMIAlaska Environmental and civil engineering, Phase I and Phase II ESAs, asbestos management and design, HUD lead paint activities, UST closure, SWPPPs, SPCCs, GIS mapping, and safety training. A team of dedicated professionals working to make Alaska cleaner and safer.
F. Robert Bell & Associates 801 W. Fireweed Ln., Suite 201 Anchorage, AK 99503-1801 Phone: 907-274-5257
Frank Bell, CEO
1974 1974
32 26
bellalaska.com Engineering, land surveying, 3D Laser Scanning, and UAV services.
Wyche Ford, AK GM
fluor.com Engineering, procurement, fabrication, construction, maintenance and project man1912 56,706 agement. 100 years of experience including 50 years in Alaska. Our integrated solutions 1954 3 approach spans the entire project life cycle helping reduce costs and schedules, improve certainty of delivery and safe work performance.
Fugro 5761 Silverado Way, Suite O Anchorage, AK 99518 Phone: 907-561-3478
Rada Khadjinova, GM AK
fugro.com | akprojects@fugro.com | fugro | 6748 Fugro collects data on topography, soil composition, and environmental conditions, both 1962 10,500 onshore and offshore. We organize the acquired data and add value through processing, 2003 5 interpretation and visualization. In addition, we provide geo-related design, asset inspection, and integrity advice.
Golder Associates 2121 Abbott Rd., Suite 100 Anchorage, AK 99507 Phone: 907-344-6001
Mark Musial, Principal
1960 1980
Haight & Associates 526 Main St. Juneau, AK 99801 Phone: 907-586-9788
Benjamin Haight, Pres.
1980 1980
Design Alaska 601 College Rd. Fairbanks, AK 99701 Phone: 907-452-1241 Dillon 2031 Shore Dr. Anchorage, AK 99515 Phone: 907-229-4755
Fluor Alaska 4300 B St., Suite 210 Anchorage, AK 99503 Phone: 907-865-2000
42 | February 2019
6,500 Arctic and geotechnical engineering, groundwater resource development, environmental 30 sciences, and remedial investigation.
7 7
haight-assoc.com | info@haight-assoc.com Consulting electrical engineers serving Southeast Alaska since 1980.
Alaska Business www.akbizmag.com
HDL Engineering Consultants 3335 Arctic Blvd., Suite 100 Anchorage, AK 99503 Phone: 907-564-2120
YEAR FOUNDED / ESTABLISHED IN ALASKA
WORLDWIDE / ALASKA EMPLOYEES
70 70
SOCIAL MEDIA & BUSINESS DESCRIPTION
hdlalaska.com | info@hdlalaska.com | HDLEngineeringConsultants HDL provides civil, transportation, geotechnical, and hydrogeological engineering; land surveying and mapping; environmental, permitting, and real estate services; construction administration; and materials testing. Since inception, HDL continues to meet Alaska’s design and construction challenges.
David Lundin, Principal/Pres.
2000 2000
HDR 2525 C St., Suite 500 Anchorage, AK 99503 Phone: 907-644-2000
Tim Gallagher, AK GM
hdrinc.com Comprehensive engineering services for transportation, water/wastewater, solid waste, 1917 10,000 power, mining, federal, private land, and oil and gas. A full suite of infrastructure services 1979 110 including environmental, planning, permitting, cultural resources, and public involvement. 10,000+ employees worldwide.
Ivy & Co. Architects/Mark A. Ivy Corp. 3835 Spenard Rd. Anchorage, AK 99517 Phone: 907-563-5656
Mark Ivy, Principal Architect
1984 1984
Jacobs 949 E. 36th Ave., Suite 500 Anchorage, AK 99508 Phone: 907-762-1500
Jeff Doyle, VP/GM AK Ops
jacobs.com | JacobsConnects | JacobsConnects | jacobs Global professional services leader serving the Alaska oil and gas, transportation, port 1946 74,000 and maritime, environmental, and water and wastewater markets with camp, equipment, 1962 1,200 infrastructure, scientific, engineering, fabrication, construction, operations, maintenance, and turnaround services.
KAE PO Box 91970 Anchorage, AK 99509 Phone: 907-276-2126
Cyrus Randelia, Principal/Sr. Eng.
1997 1997
7 7
kaeinalaska.com | maia@kuskoae.com | kaeinc/ Engineering firm providing civil designs and construction management services for boardroads, boardwalks, roads, sanitation systems, and water distribution systems. 8(a) certified.
Kinney Engineering 3909 Arctic Blvd., Suite 400 Anchorage, AK 99503 Phone: 907-346-2373
Randy Kinney, Member
2007 2007
35 35
kinneyeng.com | info@kinneyeng.com Kinney Engineering is a multi-disciplined firm that provides a wide range of services. Areas of expertise include traffic planning, analysis, and engineering; transportation engineering; civil engineering; electrical engineering; NEPA documentation; project management; and GIS services.
KPB Architects 500 L St., Suite 400 Anchorage, AK 99501 Phone: 907-274-7443
Mike Prozeralik, Pres.
1981 1981
19 19
A n award-winning architecture, planning, landscape architecture, and interior design firm specializing in arctic/cold climate design, K-12 education, multi-unit/multi-family housing, healthcare, and indigenous and culturally sensitive projects for federal, state, municipal, and private clients.
Kuna Engineering 3111 C St., Suite 300 Anchorage, AK 99503 Phone: 907-339-6500
Keith Guyer, Dir. Env. Sciences
1981 1981
50 50
kunaeng.com Professional consulting services for energy, water/environmental, development/facilities, surveying, transportation, and construction/program management.
5 5
ivyandco.com | bonnie.ivy@ivyandco.com Innovative residential and commercial designs for the Alaska environment.
Engineering Results to meet Alaskan Challenges Since 1979 Energy Efficiency Industrial Hygiene Engineering Design Environmental Remediation Hazardous Materials Management
Regulatory Compliance Support Certified Inspection Services HSE Program Development Contingency Planning Tank Inspections
FAIRBANKS ANCHORAGE JUNEAU JUNEAU FAIRBANKS ANCHORAGE 907-452-5688 907-222-2445 907-222-2445 907-586-6813 907-452-5688 907-586-6813
Learn more at www.nortechengr.com www.akbizmag.com
Alaska Business
February 2019 | 43
ARCHITECTURE & ENGINEERING SPECIAL SECTION | DIRECTORY
COMPANY TOP EXECUTIVE
ARCHITECTURE & ENGINEERING SPECIAL SECTION | DIRECTORY
COMPANY TOP EXECUTIVE
YEAR FOUNDED / ESTABLISHED IN ALASKA
WORLDWIDE / ALASKA EMPLOYEES
SOCIAL MEDIA & BUSINESS DESCRIPTION
Albert Swank, PE/Owner
1980 1980
6 2
le-m@ak.net Engineering, civil, structural, mechanical, machine design, manufacturing engineering, engineering physics, nuclear engineering, accelerators, medical cyclotron developments upgrade and operation, nuclear isotopes. Army, Navy, DOD systems development and upgrade. Shops and offices Alaska and Washington.
LCG Lantech 250 H St. Anchorage, AK 99501 Phone: 907-243-8985
Wallace Swanson, Pres./CEO
1993 1993
15 15
lcgak.com | info@lcgak.com LCG Lantech (formerly Larsen Consulting Group) is a multi-disciplined firm providing architecture, structural, civil engineering, land surveying, mapping services, and landscape architecture to our rural and urban client-base.
Lifewater Engineering Company 1963 Donald Ave. Fairbanks, AK 99701 Phone: 907-458-7024
Bob Tsigonis, Pres.
1998 1998
9 9
LifewaterEngineering.com Custom fabrication of welded plastic tanks, boats, and other products including sewage treatment plants for man camps, homes, and lodges in the most extreme climates and remote places. For Rough Duty Boats, visit www.Class5Boatworks.com.
Lounsbury & Associates 5300 A St. Anchorage, AK 99518 Phone: 907-272-5451
Tom Adams, Pres.
1949 1949
50 50
lounsburyinc.com | info@lounsburyinc.com Civil engineering, land surveying, planning, construction management. Servicing local and state government, oil and gas industry, and private development. Offices in Anchorage, Wasilla, Fairbanks, and Kuparuk.
MBA Consulting Engineers 3812 Spenard Rd., Suite 200 Anchorage, AK 99517 Phone: 907-274-2622
Bradley Sordahl, Principal
1989 1989
13 13
mba-consulting.net MBA Consulting Engineers, established in 1989, is a full service mechanical and electrical consulting engineering firm specializing in Arctic, subarctic, and northern maritime design.
McCool Carlson Green 421 W. First Ave., Suite 300 Anchorage, AK 99501 Phone: 907-563-8474
John Weir, Pres./CEO
1983 1983
16 16
mcgalaska.com | marketing@mcgalaska.com McCool Carlson Green is an Alaskan-owned architecture, planning, and interior design firm. The firm focus is the design of high-quality educational, civic, commercial, military, and healthcare facilities that flourish in complex environments.
MEA PO Box 9343 Ketchikan, AK 99901 Phone: 907-254-8640
Fred Monrean, PE
1997 1997
1 1
fmonrean@kpunet.net Civil engineering, surveying, wastewater design, subdivisions, structural engineering, storm drainage design, foundation engineering, inspections, engineering reports, marine structures, permitting, etc.
Merrick Alaska 3201 C St., Suite 105 Anchorage, AK 99503 Phone: 907-341-4720
David Huelskamp, Chairman/CEO
1955 2014
560 50
merrick.com | hello@merrick.com | merrickcompany merrickcompany | merrick&company Merrick Alaska is a full-service, multi-disciplinary division of Merrick & Company that offers surveying, geospatial, and engineering services to our Alaskan clients, including the oil and gas industry.
Michael Baker International 3900 C St., Suite 900 Anchorage, AK 99503 Phone: 907-273-1600
Jeff Baker, Sr. VP/AK Mgr.
1940 1942
Michael L. Foster & Associates 13135 Old Glenn Hwy., Suite 200 Eagle River, AK 99577 Phone: 907-696-6200
Michael Foster, PE/Owner
1998 1998
20 20
F ull service architectural/engineering firm providing planning, investigation, design, permitting, oil spill cleanup, environmental remediation, construction, and expert witness/ litigation support services. Experts in civil, geotechnical, and environmental design, and cold regions construction.
Morris Engineering Group PO Box 210049 Auke Bay, AK 99821 Phone: 907-789-3350
Mark Morris, Principal
1997 2004
8 7
Electrical consulting; engineering; design; inspection; construction administration.
NANA WorleyParsons PO Box 111100 Anchorage, AK 99511 Phone: 907-273-3900
Craig Morrison, Pres.
1997 1997
242 233
nanaworleyparsons.com | info@nanaworleyparsons.com | nana-worleyparsons A project delivery company focused on multi-discipline engineering and design, procurement and construction management services for the hydrocarbons, mining, and infrastructure industries.
Leighton Lee, CEO
1978 1978
80 80
nhtiusa.com Telecommunications design and construction. In-house engineering, installation, and project management services for urban and remote communications facilities, OSP and ISP cabling, as well as electrical and communications equipment installation and integration.
Peter Beardsley, Pres.
1979 1979
25 25
nortechengr.com A multi-disciplined consulting firm with registered professional engineers and certified industrial hygienists on staff providing environmental, engineering, oil spill contingency planning, water/wastewater, compliance, industrial hygiene, and health & safety professional services throughout Alaska.
Lindsay Simmons, GM
1991 1991
6 4
northernlanduse.com | lja@northernlanduse.com | northernlanduseresearchalaska National Historic Preservation Act Sec. 106 assessments; identification, evaluation, mitigation services-prehistoric/historic archaeology, historic architecture, cultural landscapes, and subsistence; documents for NEPA and permitting; regulatory compliance; consultation; ground-penetrating radar.
Robert Meyer, VP
2017 2017
7 7
northformak.com | robert@northformak.com | NorthFormArchitecture Architecture services for new construction and renovations, including condition surveys and energy assessments/upgrades. Interior design, master planning, space programming. Project types: Healthcare, labs, K12 and higher education, cultural, social services, military, mixed-use, housing, commercial offices-retail.
Langdon Engineering 318 W. Tenth Ave. Anchorage, AK 99501 Phone: 360-620-7046
New Horizons Telecom 901 Cope Industrial Way Palmer, AK 99645 Phone: 907-761-6000 NORTECH 2400 College Rd. Fairbanks, AK 99709-3754 Phone: 907-452-5688 Northern Land Use Research Alaska 725 Christensen Dr., Suite 4 Anchorage, AK 99501 Phone: 907-345-2457 NorthForm Architects 2525 Gambell St., Suite 404 Anchorage, AK 99503 Phone: 907-339-9200
44 | February 2019
mbakerintl.com 3,000 Engineering: transportation, pipeline, geotechnical, mechanical, civil; GIS & LiDAR; 65 environmental/permitting/NEPA; public involvement.
Alaska Business www.akbizmag.com
YEAR FOUNDED / ESTABLISHED IN ALASKA
WORLDWIDE / ALASKA EMPLOYEES
SOCIAL MEDIA & BUSINESS DESCRIPTION
Nvision Architecture 1231 Gambell St., Suite 400 Anchorage, AK 99501 Phone: 907-349-1425
Paul Baril, Pres.
1997 1997
10 10
nvisionarchitecture.com | llucia@nvisionarch.com Full-service architectural firm.
PDC Engineers 1028 Aurora Dr. Fairbanks, AK 99709 Phone: 907-452-1414
Matt Emerson, Pres.
1975 1975
100 99
pdceng.com PDC is an all-Alaskan multi-discipline firm with five offices across the state. We are aligned with four sectors—transportation, facilities, utilities, and land development services, with civil, electrical, structural, mechanical, fire protection, and environmental engineers.
PM&E Services 123 E. 24th Ave., #11 Anchorage, AK 99503 Phone: 907-222-5059
Damien Stella, Principal
1999 1999
1 1
PND Engineers 1506 W. 36th Ave. Anchorage, AK 99503 Phone: 907-561-1011
Jim Campbell, Pres.
1979 1979
100 70
pndengineers.com | pnd-engineers-inc General civil, structural, geotechnical, Arctic, marine, and coastal engineering; survey; permitting; hydrology; metocean; quality assurance; inspection.
R&M Consultants 9101 Vanguard Dr. Anchorage, AK 99507 Phone: 907-522-1707
Len Story, CEO
1969 1969
100 100
rmconsult.com | email@rmconsult.com RM-Consultants-Inc-124297310951010 | r&m-consultants-incCivil, waterfront (marine), structural and geotechnical engineering; land surveying; geology; environmental; transportation and land use planning; construction administration; materials testing; special inspection; hydrology; right of way and lands consulting; GIS services; public involvement.
R&M Engineering-Ketchikan 7180 Revilla Rd., Suite 300 Ketchikan, AK 99901 Phone: 907-225-7917
Trevor Sande, Pres.
1989 1989
18 18
R &M Engineering-Ketchikan is a civil engineering and surveying company with architectural and structural engineering capacity serving southern Southeast Alaska from offices in Ketchikan and Craig. We also specialize in materials testing and inspection and have an ADEC certified microbiology lab.
Redpath Mining-JS Redpath Corporation 16345 Lena Loop Rd. Juneau, AK 99801 Phone: 907-789-3752
George Flumerfelt, Pres./CEO
1962 1991
Reid Middleton 4300 B St., Suite 302 Anchorage, AK 99503 Phone: 907-562-3439
Bob Galteland, Pres.
1953 1991
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P roject management and civil engineering support to a broad range of clients from municipal utilities to commercial and light industrial facilities.
redpathmining.com | TheRedpathGroup | theredpathgroup | js-redpath-limited Underground mining contractor. Mine development, construction and production mining. 6,200 Hydroelectric tunneling and penstocks, tunnel repair and rehabilitation. Alaska Projects: 145 Pogo Mine, Kensington Mine, Allison Lake—Copper Valley, Chugach Lake-Chugach Electric, Sitka Blue Lake, AEL&P Lake Dorothy. 74 9
reidmiddleton.com We offer structural engineering, civil engineering, and surveying throughout all market sectors, including buildings, bridges, and waterfront to public and private sector clients throughout the Pacific Northwest and Alaska.
Alaska Business
February 2019 | 45
ARCHITECTURE & ENGINEERING SPECIAL SECTION | DIRECTORY
COMPANY TOP EXECUTIVE
ARCHITECTURE & ENGINEERING SPECIAL SECTION | DIRECTORY
COMPANY TOP EXECUTIVE
RSA Engineering 670 W. Fireweed Ln., Suite 200 Anchorage, AK 99503 Phone: 907-276-0521
YEAR FOUNDED / ESTABLISHED IN ALASKA
WORLDWIDE / ALASKA EMPLOYEES
SOCIAL MEDIA & BUSINESS DESCRIPTION
Roger Weese, Pres.
1983 1983
34 34
rsa-ak.com | info@rsa-ak.com | rsaengineering echanical and electrical consulting engineering services for more than thirty years. RSA M specializes in providing mechanical and electrical design solutions that are affordable, maintainable, and sensible for the project location.
SALT 645 G St., Suite 301 Anchorage, AK 99501 Phone: 907-279-6563
Michael Fredericks, Pres.
1978 1978
8 8
salt-ak.com | nschmidt@salt-ak.com | SALTakLLC | salt-ak-llc SALT, formerly RIM Design + RIM First People, is a Native-owned, woman-owned small business in Alaska. Comprehensive design services including: corporate, retail, healthcare, education, hospitality, FF&E, BOMA, building file management, master planning, facilitation, stakeholder engagement, strategic planning.
Schneider Structural Engineers 101 W. Benson Blvd., Suite 306 Anchorage, AK 99503 Phone: 907-561-2135
Steve Cinelli, Office Mgr.
1999 2003
29 9
sastructural.com | kschaetze@sastructural.com Structural engineering services: planning, design, construction administration, inspection, expert witness, historic preservation/building rehabilitation, peer reviews, BIM.
Luanne Urfer, Principal/Owner
2009 2009
4 3
sdg-ak.com | luanneu@sdg-ak.com SDG is a woman-owned, small business design firm in Palmer offering innovative land architecture and environmental solutions. Using our specialized process, we create exceptional, high quality, efficient planning and development services integrating our work with cultural and sustainable design.
Chris Darrah, FBX Ofc. Mgr.
1954 1974
shannonwilson.com | info-fairbanks@shanwil.com Environmental site assessments; soil/water sampling; hazardous materials surveys; 300+ regulatory compliance; remediation design; storm water management. Also geotechnical 32 analysis/design; frozen ground engineering; earthquake analysis; AASHTO-accredited testing lab for soils, concrete, asphalt.
Matthew Hemry, VP/Anch. Office Mgr.
1954 1974
shannonwilson.com | info-anchorage@shanwil.com ShannonAndWilson | ShanWil_Inc 300+ Providing environmental and geotechnical engineering from our offices in Anchorage, Fairbanks, 62 Palmer, and the Lower 48. Services include geotechnical analysis/design; frozen ground engineering; environmental compliance, assessments/remediation; earthquake analysis; and other services.
Gord Johnston, Pres./CEO
stantec.com | StantecInc | Stantec | stantec/ At Stantec we always design with community in mind. We care about the communities we 1954 22,000 serve—because they’re our communities too. We’re designers, engineers, scientists, and 1972 86 project managers, innovating together at the intersection of community, creativity, and client relationships.
Matt Stephl, PE
1996 1996
SDG 247 S. Alaska St. Palmer, AK 99645 Phone: 907-745-3500 Shannon & Wilson 2355 Hill Rd. Fairbanks, AK 99709-5326 Phone: 907-479-0600 Shannon & Wilson 5430 Fairbanks St., Suite 3 Anchorage, AK 99518-1263 Phone: 907-561-2120 Stantec 725 E. Fireweed Ln., Suite 200 Anchorage, AK 99503 Phone: 907-276-4245 Stephl Engineering 3900 Arctic Blvd., Suite 204 Anchorage, AK 99503 Phone: 907-562-1468
8 8
stephlengineering.com Engineering firm specializing in trenchless technology engineering including horizontal directional drilling, cured in place pipe lining water sewer, closed circuit television inspection (CCTV), pipe condition assessment, sliplining, auger boring, and structure rehabilitation.
Most businesses overpay for workers’ compensation insurance. Does yours? Contact us to find out.
907-276-7667 www.chialaska.com
Alaska Owned & Operated Since 1979 46 | February 2019
Alaska Business www.akbizmag.com
Taku Engineering 406 W. Fireweed Ln. Anchorage, AK 99503 Phone: 907-562-1247
YEAR FOUNDED / ESTABLISHED IN ALASKA
WORLDWIDE / ALASKA EMPLOYEES
SOCIAL MEDIA & BUSINESS DESCRIPTION
William Mott, GM
2001 2001
18 18
takuengineering.com | billmott@takuengineering.com An Alaskan-owned and operated engineering firm dedicated to providing innovative project and discipline engineering and corrosion control design solutions.
Trihydro Corporation 312 Tyee St. Soldotna, AK 99669 Phone: 907-262-2315
Jack Bedessem, Pres./CEO
1984 2015
420 8
trihydro.com | information@trihydro.com | Trihydro | trihydro-corporation Trihydro specializes in strategic project implementation, air quality and process management, engineering and surveying, environmental, water resources and IT consulting. We serve a diverse clientele: petroleum, federal and state, mining and natural resources, industrial and commercial, and infrastructure.
UAF Institute of Northern Engineering PO Box 755910 Fairbanks, AK 99775 Phone: 907-474-5457
Bill Schnabel, Dir.
1982 1982
150 150
T he Institute of Northern Engineering (INE) at the University of Alaska Fairbanks provides solutions for the Arctic’s intractable engineering problems. INE focuses on research and development in civil, environmental, petroleum, mining, geological, electrical, computer, and mechanical engineering.
Valley General Energy Services 1400 E. Wasilla Shops Cir., Suite 2B Wasilla, AK 99654 Phone: 907-357-8444
Justin Shields, Pres.
2016 2016
12 12
vgesllc.com | kdenoncour@vgesllc.com | valleygeneralenergyservices Consulting, logistics, management, employee placement, procurement, architect, and engineering services.
VEI Consultants 1345 Rudakof Cir., Suite 201 Anchorage, AK 99508-6105 Phone: 907-337-3330
Vern Roelfs, Pres.
1981 1981
6 6
veiconsultants.com | vernr@veiconsultants.com Civil and environmental engineering, land surveying for local communities, governments, and private clients. Full range of services from feasibility studies through design, permitting, and construction administration.
William Merriman Architects 4011 Arctic Blvd., Suite 102 Anchorage, AK 99503 Phone: 907-929-2950
William Merriman, Owner/Principal
2013 2013
2 2
merrimanarchitects.com | office@merrimanarchitects.com Led by Will Merriman, AIA, NCARB, LEED AP, William Merriman Architects was founded to be singularly-focused on residential Architecture in Alaska and the Pacific Northwest in 2013. Licensed architecture practice in Alaska and Washington.
Wince Corthell Bryson 609 Marine Ave., Suite 250 Kenai, AK 99611 Phone: 907-283-4672
Mark Blanning, Treasurer
1971 1971
5 5
ivil and structural engineering, geotechnical, planning for municipal, state and private C sectors.
Z Architects PO Box 842 Girdwood, AK 99587 Phone: 907-783-1090
Marco Zaccaro, Owner, Principal
2003 2003
10 10
zarchitectsalaska.com | Kalie@zarch-ak.com | zarchitects Z Architects is a full service architecture firm that includes master planning, commercial and residential design, interior design, and permitting services.
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Alaska Business
February 2019 | 47
ARCHITECTURE & ENGINEERING SPECIAL SECTION | DIRECTORY
COMPANY TOP EXECUTIVE
OIL & GAS
Workers build and install entrance stairs and a landing for a camp on the North Slope. GBR Oilfield Services
Local Fabricators Still Fill Niche Alaska‘s manufacturers provide specialized and short-term fabrication solutions By Isaac Stone Simonelli
A
laska companies vying for oil and gas company contracts to fabricate custom objects and supply materials to the state’s most dominant industry faced increased competition from the Lower 48 after the oil market
48 | February 2019
took a dive several years ago. “The oil market dictates a lot of what happens on the North Slope. Over the last several years, we saw a lot of projects get put on hold or canceled altogether,” says Jim Wohlers, general manager for GBR Oilfield Services. “With the drop in demand came the willingness of some of the larger, out-of-state
companies to take on work at much lower rates. Over the past six months, we have seen a gradual increase in projects and work on the North Slope. In addition, over the past several years, we have seen a steady increase in the importance of safety across the field,” he says.
Alaska Business www.akbizmag.com
ANCHORAGE TO SEATTLE NONSTOP All New Piper M600
600HP Turboprop | 320MPH | Pressurized | Known-Icing | Luxurious Seating for Six | G3000 Avionics
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“The remote location of the Slope makes everything urgent. We are often called to design and fabricate a piece or part because it will take too long and cost too much to have it shipped from the Lower 48.” —Jim Wohlers, General Manager, GBR Oilfield Services
According to Richard Faulkner, owner of Steelfab, a custom fabrication company in Alaska, competition with companies in the Lower 48 is nearly impossible due to a number of factors, including higher wages demanded by skilled workers and significant employee compensation costs. “The majority of the bigger jobs don’t come from Alaska anyways. Alaska doesn’t buy anything from Alaska—little. They buy things from somewhere else and ship it up here,” Faulkner says. “You can’t compete with them.”
With workers’ compensation insurance in Alaska costing up to 25 percent—the second highest in the United States— Faulkner explains that he ends up paying about an additional $7.50 an hour for employees who make about $30 an hour. “I’ve got to compete with folks, let’s say in Washington, and they’ve got to pay maybe $20 to $25 for the same quality of person, and their workers’ comp rate is like $1.50. And if you go to Montana, they pay $15 to $16 an hour—they might pay a little more—but they only pay 50 cents an hour for workers’ comp,” Faulkner says.
“Alaska cannot compete with someone out of state unless something is overheight, overlength, overwidth, or overweight. At that point, the freight companies bring us up to where we are semi-competitive with where these other guys are.” The real advantage Alaska fabrication businesses have is that when a company in the oil and gas industry needs something— and they need it now—a local company is able to satisfy that need, Faulkner says. “They can come down and look at it. If you’re doing them a $50,000 to $100,000 job and they can get an inspector in here and appraise quality and progress, [that’s an advantage],” Faulkner says. GBR’s primary lines of service are casing running, welding and fabrication, and nondestructive testing, and Wohlers agrees that the quick turnaround that Alaska companies can provide makes a huge difference in the market. “The remote location of the Slope makes everything urgent. We are often called to design and fabricate a piece or part because it will take too long and cost too much to have it shipped from the Lower 48 in the timeframe the customer has established,” Wohlers says. The other primary advantage of being
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an Alaskan-owned and -operated business is knowing the market and establishing long-term contacts, as a lot of work comes by word-of-mouth and previous contacts, says Wohlers. Established in 1973, GBR is one of the oldest companies servicing the North Slope without any change of ownership and provides at least one of its lines of service for all of Alaska’s oil and gas companies and a majority of the service companies. However, despite the company’s deep roots in the industry, competition from Outside is still stiff. “We do find it difficult to compete with companies coming out of the Lower 48 as they are often able to fabricate out-of-state at a cheaper rate and are also willing to do work on the North Slope at a rate below what we are able to make a profit at simply based upon economies of scale. Likewise, we see some potential customers use companies based out-of-state simply because they dealt with them previously on another project in a different state and never really give a local company a fair chance to win the work,” Wohlers says. Steelfab is also a legacy fabrication company in Alaska. Established by the Swalling family in 1948,
Workers build and install entrance stairs and a landing for a camp on the North Slope. GBR Oilfield Services
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Workers build and install entrance stairs and a landing for a camp on the North Slope. GBR Oilfield Services
Steelfab is still family-owned, but now by the Faulkner family, who purchased it in 1988. “We’ve forged our reputation on exceptional customer service, an extensive product inventory, and the very best steel processing, fabrication, and services,” the company’s website states. Primarily a steel company, Steelfab works mostly with carbon steel and some stainless steel, though it does a modest amount of aluminum work. The company is located on a 10-acre site with an 84,000-square-foot facility housing six 10-ton and five 5-ton overhead cranes, four 1-ton jib cranes, two computer-guided plasma cutting tables, and a lot more gear. “Hell, we’ve got every kind of piece of equipment you can think of,” Faulkner says. The business itself is broken into three different areas: a service center that sells steel products (similar to a hardware 52 | February 2019
store), code fabricator, and coating and painting services. In December, Steelfab was working on a number of projects for the oil and gas industry, including a derrick extension for Hilcorp and an enormous generator module with the help of Delta Construction for Brooks Range Supply. One specialty item created by the company for the North Slope is a jack system for piping that compensates for subsidence. “We do quite a bit of the subsidence things for BP, as well as repetitive repair work on that product for ConocoPhillips,” Faulkner says. For custom jobs, Faulkner admits that he sometimes doesn’t even know what his team is building. The drawings are sent to a team that turns the engineering drawings into shop drawings—shop drawings break down the final product into all the parts the shop needs to build. Once the shop drawings are approved, his team gets to work fabricating.
Additional types of work are contracted out. Once the modules are built, teams will come in to do the wiring, instrumentation, and any other necessary work. “As a job shop, they send you a set of drawings and you build whatever it is they sent you. So, it varies. You can’t say we just do one thing. We don’t just build tanks. Though we do build tanks as a manufacturer,” Faulkner says, noting that a shop like his is different than a specialty shop, such as Greer Tank and Welding. Greer Tank and Welding is the largest tank manufacturer in the state, making everything from home septic tanks to fuel tanks for the North Slope. The company, based in Fairbanks, expanded to Anchorage in 1971. Then, in 1993, it set up a workshop in Lakewood, Washington. Though the company’s growth since its founding in 1952 can be attributed to the high demand for tanks in the oil and
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gas industry, it’s not the only reason the company continues to perform well. One of the Greer Tank and Welding’s many projects included a 50,000-gallon tank for Hilcorp. Though metalwork is still the company’s primary focus, it has expanded into plastic manufacturing to meet demand. The time it takes to build items for companies operating on the North Slope varies drastically—as do the costs—depending on the project. “Customers dictate the completion dates for jobs, and these can be from twenty-four hours to six months or more. We often will add staff to meet customer demands,” Wohlers says. “We will perform minor repairs that take a couple of hours, basic modifications that only take a couple of days, fabricate and build items that take from a week or two to a tank farm that takes several months to design and fabricate.” Weather can also dictate a lot about the project, though Wohlers doesn’t see any changes in overall demand from summer to winter, just changes in the types of work demanded. For example, there is more rig maintenance type projects during the summer, as rigs are busy running during exploration. The price for projects also varies from as little as a minimum charge for an hour of work—$85 at GBR Oilfield Services—to hundreds of thousands of dollars. In fact, it’s not unheard of for fabrication companies doing larger projects for the oil and gas industry to stick multi-million-dollar price tags on contract bids. One recent shift in the steel industry, perhaps surprisingly, has not had a real impact on fabricators such as Steelfab, and that’s the Trump administration’s tariffs on imported steel and aluminum, says Faulkner. In February the administration announced tariffs of 25 percent on most imported steel and 10 percent on aluminum imports, aiming to combat low-priced steel from China flooding the global market, though other trading partners were also caught up in the move. “The domestic users have increased their prices justifiably,” Faulkner says. “[But] it’s more of an availability issue than a price issue… [For] oil-related local fabrication, the size of the project we tend to do is about 60 to 80 percent labor and about 25 to 30 percent of the cost of the project is material.” www.akbizmag.com
So, when the cost of steel goes up, it only impacts 20 to 25 percent of the total costs, working out to a roughly 5 percent overall increase. However, for fabricators in the Lower 48 that have more automated facilities, the numbers for labor and material costs flip—which means changes in material costs have a greater impact overall on their business. “It really doesn’t affect us. If you consider the number of fabricators who are in Alaska, it’s not that big of a deal right now,” Faulkner says.
Though competition will remain stiff with regard to many types of products destined for the North Slope coming from Outside, there remains an important—and valuable—niche in the economy for locally-owned and -operated custom fabricators andsuppliers in the Last Frontier. In this way, legacy companies that have successfully diversified their offerings will continue to provide last-minute help to the oil and gas industry, as well as manage those projects that are too big for the Lower 48.
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T R A N S P O R TAT I O N
High Function, Low Impact Air Services Helicopters in Alaska’s industries By Isaac Stone Simonelli
H
elicopter services fill a specific need in Alaska’s extraction industries. The mining and oil and gas industries rely on rotary-winged aircraft for everything from site testing to crew changeovers in the vast, remote areas in which these industries operate. With many of the large, legacy helicopter operators based Outside leaving the state to seek higher returns in the last ten years, Alaska’s helicopter services are now dominated by mid- and small-sized operators, explains Chris Maynard, the vice president and director of sales for Pathfinder Aviation. “At one point of time, we had Erickson Helicopters here, you had Bristow, you had most of the major Gulf of Mexico oil and gas operators up here, but they’ve all pulled out of Alaska to chase highermargin oil and gas work around the world,” Maynard says. “That leaves more of the mid-sized companies serving the marketplace, and we’re probably the largest oil and gas operator in the state right now.”
Flying for the Oilfield Pathfinder, founded in 2001, originally focused on utility work, which mostly caters to transporting officials and scientists from various state and federal bureaus and departments—such as the US Geological Survey, the Bureau of 54 | February 2019
A helicopter approaches an oil rig. One of the main uses for helicopters on oil rigs is crew transfers. Pathfinder Aviation
Land Management, and Alaska Volcano Observatory—to remote areas. Such work is also tied to the oil and gas industry, since agencies and researchers need access to areas such as NPR-A or the 1002 region of ANWR long before projects are operational, under
construction, approved for construction, receive permits, or are even in the permitting process. Scientists need to begin their assessments—taking fish counts, conducting hydration studies, providing archaeological assessments, and so on, explains Maynard.
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“Our goal is to be ready for when the oil and gas resurgence occurs and continue to partner with the oil and gas companies who are investing in Alaska… We’re waiting for those remote outlier areas to open up, because that’s when we’re going to see a big renaissance of helicopter services on the North Slope.” —Chris Maynard, Vice President/Director of Sales Pathfinder Aviation
“We started out as a utility-work type of operation and grew into oil and gas. We’ve been supporting the oil and gas industry since the mid-2000s. We’re one of the largest operators in Alaska supporting the oil and gas industry,” he says. With an aggressive growth plan, www.akbizmag.com
Pathfinder looks to add two to three aircraft to its fleet of sixteen (fifteen helicopters and one fixed-wing aircraft) year-on-year for the foreseeable future. “And, of course, we can get more helicopters as needed by the contract. If a customer establishes the need for more Alaska Business
helicopters for their project, we’d go out and get more helicopters,” Maynard says. This approach of increased investment by the owner group comes despite an ongoing, statewide recession. But even as oil prices continue to fluctuate, oil and gas companies have found ways February 2019 | 55
Workers run through an aircraft down drill. Mark Stigar/ Pathfinder Aviation
to improve their efficiency and develop practices to keep costs, including the costs of helicopter services, down. The drop in oil prices forced Pathfinder and other helicopter service companies based in the 49th State to further diversify their portfolio. “We perform a lot of work in the firefighting industry; we do a lot of work in the mining industry; we are doing a lot of utility work in general,” Maynard says, noting that they also dip into the tourism industry—including providing services to heli-ski guides all over Alaska. Though the company has diversified since the downturn, it continues to maintain permanent bases in Prudhoe Bay, Nome, Anchorage, and Homer, where the company was founded. “Our goal is to be ready for when the oil and gas resurgence occurs and continue to partner with the oil and gas companies who are investing in Alaska,” Maynard says. “We’re waiting for those remote outlier areas to open up, because that’s when we’re going to see a big renaissance of helicopter services on the North Slope.” Even without such a resurgence there is a certain level of steady work to be done for the oil and gas industry, though such work varies between regions and seasons. In Cook Inlet, helicopters primarily provide passenger service to oil rigs. In order to meet the high standards of the oil and gas industry, twin-engine helicopters, 56 | February 2019
such as Airbus EC135s or Bell 212s, are used. Though boat access is possible to Cook Inlet platforms, many shift transfers are conducted via helicopter, as well as some cargo transportation. “You can get to the Cook Inlet platforms via boat, but it’s not very reliable and the Cook Inlet tides are very fast and make guaranteed service via boat not as reliable as the helicopter,” Maynard explains. On the North Slope, most of the work is also primarily personnel transport, especially during the spring and fall. “Typically speaking, the helicopters are used during the shoulder season between when they can run crew boats in the summer and have the ice road in the winter and can do more vehicular traffic out to the islands,” Maynard says. “Most of our oil and gas work on the North Slope comes at the same time of the year: freeze-up and breakup.”
Inspections and Collections For Alyeska Pipeline Service Company the day-to-day needs for helicopter services are different than those of an extraction company. “Helicopters support various functions along the pipeline, including emergency response and preparedness, safety, and integrity surveillance. The purpose of helicopter services is to ensure the safety of our people, pipeline, and environment,” explains Michelle Egan, chief communications officer for Alyeska.
“Alyeska uses helicopter services on a daily basis if weather allows. Helicopters are strategically positioned throughout the pipeline corridor to ensure we have coverage.” Egan confirms that Alyeska doesn’t own or operate any helicopters but has staff who work closely with contractors across the corridor. While the pilot flies, there will usually be an Alyeska employee onboard to carry out additional tasks, such as surveillance. Though Alyeska regularly monitors the pipeline via helicopter, the long summers of constant light in the far north usher in a different type of work for helicopter operators who secure contracts with exploration companies. “We come out and take different engineers and geologists out to do sampling, look at water tables, stick picking, and so on,” Maynard says. “Stick picking” refers to the collection of delineators that were placed along ice roads, Maynard explains. Often, there will be sections of ice road that companies were unable to access in time to collect the delineators. However, they must be removed from the tundra to minimize the impact on the environment. Missions to collect debris and take samples are carried out in a variety of different helicopters, depending on the customers’ needs, though all Pathfinder helicopters are outfitted with bear paws (similar in concept to snowshoes, bear paws provide stability on soft and uneven terrain and added grip on ice or other hard surfaces) on the skids, designed to have minimal impact on the tundra. “Landing a helicopter on the tundra is permissible and allowed; it does not affect the tundra or cause scarring in the tundra,” Maynard says, noting that the usual reason oil and gas companies hire helicopters for such trips is because they can land, giving passengers access to remote areas. “If you want to fly a sensor over a pipeline, that kind of work usually goes to fixed wing aircraft. But if you need an aircraft to land next to the pipeline and go investigate something—land somewhere an airplane can’t land, obviously—that’s where a helicopter comes into play.” The preference for fixed-wing aircraft when conducting flyovers with sensors comes from them being inherently cheaper to operate than a helicopter. However, because helicopters play an essential role in transporting people and
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gear to remote locations that neither planes nor land-based vehicles can access certain times of the year, Maynard says he’s not worried about the rapid development of drone technology. “Drones are a long ways away from taking workers to and from the platform,” he says. “They’re not going to be able to stop and pick up sticks or a core sample in the foreseeable future.” In the summer and early fall there’s a recurring assignment for those providing helicopter services: ice road building. “Some subcontractors need to go out and check the lakes with Zodiacs and sonars in order to apply for their permits to put in ice roads because you need to have a certain size or depth of lake to pull the water off of it in order to build ice roads,” Maynard says. And they get to these remote water sources via helicopter.
financial backing, Maynard says competition remains stiff in the industry. “A lot of helicopter contracts go out to bid: sometimes they change hands, you win them back some years, while in others they end up with the competitors. It’s definitely a competitive landscape. We are focused on partnering with our customers to come up with creative solutions to meet their needs. I’d say we have a decent amount of oil and gas work in Alaska, but we are always looking to take on more,” Maynard says. One change the company plans is to phase into its services by mid-spring
flight operational quality assurance, also known as flight data monitoring (FDM), which is a method for capturing, analyzing, and visualizing data generated by an aircraft during flight. Analysis of this data helps improve flight safety, increase maintenance effectiveness, and reduce operational costs. “We’ll be the only helicopter operator—that we are aware of— to use it in our aircraft in Alaska.” By using the Appareo Vision 1,000 FDM to monitor the history of the flight, Pathfinder’s FDM team will acquire the data needed to improve operational safety and efficacy. The additional monitoring will
And in Mining… Unlike in the oil and gas industry, where helicopters play an essential role from exploration phases through production phases, in the mining industry in Alaska helicopter work is largely on the exploration side. “There are a few remote mines that do have helicopter services to support production,” Maynard says. “But most of the work is from an exploration side, where we’re dealing with geologists, hydrologists, obtaining core samples, performing core drilling, and a lot more.” One significantly different task assigned to a helicopter crew working a mining contract versus an oil and gas job is moving and assembling the drill rig. “These drills are broken down into flyable weights, where we can use our aircraft to move them up a hillside,” Maynard says. “Then the ground crew will carefully reassemble the drill up on the hillside with the helicopter holding the key pieces in place.” For such precision work, which is essentially on par with operating an aerial crane, helicopter companies will put their best long-line pilot in the cockpit. “We move a lot of the drill rigs around. Then, once the drill rigs are moved, we turn into a shuttle bus, moving people up and down the hillside, as well as supplies and core samples back to the core tent,” Maynard says.
Remaining Competitive Even with its large fleet and strong www.akbizmag.com
Alaska Business
February 2019 | 57
also assure that there are no variances outside the parameters set for a specific task, increasing safety for the company’s crews, aircraft, and passengers, he explains. Though Maynard says the new system will increase the company’s competitive edge in the Alaska marketplace, he notes that, in general, safety systems and standards are becoming more unified. This is a change from ten to twenty years ago when safety systems were proprietary and closely guarded. Now, many of these same operators are members of HeliOffshore, a global, safety-focused association for the offshore helicopter 58 | February 2019
industry. “It’s awesome to see the amount of sharing of safety systems and information that is happening today that didn’t happen a decade or two ago,” Maynard says. “The days of comparing safety standards among different, larger scale operators [are] dwindling as most are adopting and implementing similar standards.” Maynard says most contract bids for helicopter services are very close in cost, within a few percentage points. However, one way a company can dash its chances of renewing a contract is by clocking excessive amounts of down-
time, also known as AOG or “aircraft on ground.” “In the mining industry, if we go AOG, you can’t run the drill, you can’t run the core samples, the whole operation comes to a screeching halt—and you’re talking hundreds and hundreds of thousands of dollars a day in operations costs,” Maynard says. With millions of dollars worth of spare parts on hand, paired up with an industry-leading supply chain and logistics team, Pathfinder is able to keep its AOG to a bare minimum. “We have spare helicopters, spare parts inventory, ample amount of highly
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A helicopter awaits its next mission. Pathfinder Aviation
trained mechanics, and qualified pilots to serve the industries we are supporting. Not all of our competitors can say that. “We thrive in remote, austere locations—as Alaskans, we know more about remote operations than our Lower 48 competitors. “I think that some of our local competitors do these same things very well also. Dealing with the remoteness is inherent to Alaskan operators in general. We’re really good, very tenacious. We figure it out and do it safely, which is different than other operators in other regions in the world.” www.akbizmag.com
Alaska Business
February 2019 | 59
INTERNATIONAL TRADE SPECIAL SECTION | AIRPORT
Alaska’s Cargo Hub
Ted Stevens Anchorage International Airport serves the world By Greg Wolf Greg Wolf has been the executive director of the World Trade Center in Anchorage since 2002; he previously served as the State of Alaska’s director of international trade and market development and was the vice president of oversees projects for AEDC.
W
hile some living in the Lower 48 may think Anchorage is at the end of the world, in reality the city is located right in the middle of the world. At least, so far as the aviation business is concerned. The commercial aviation industry has extensive air cargo operations that they perform at Ted Stevens Anchorage International Airport on a daily basis. Situated at the top of the world and near 60 | February 2019
equidistance between Europe, Asia, and North America, the Ted Stevens Anchorage International Airport is less than ten hours by air to 95 percent of major global markets. It serves as the primary link between cities in Asia and North America, as approximately 80 percent of all cargo flights operating across the Pacific make a “technical stop” at Anchorage to refuel, change crews, and (in some cases) to transfer cargo. It is why major integrator airlines like FedEx, UPS, and DHL all have a significant presence at the airport in support of their growing international cargo operations. The airport continues to be one of the busiest in the world for cargo carriers. It currently ranks as the fifth largest cargo airport in the world and the second largest in the United States. Internationally, it ranks only behind Hong Kong, Memphis, Shanghai, and Incheon (Korea). Domestically, only Memphis, home to FedEx’s major hub, sees more cargo traffic. Each week the airport handles more than 500 landings of wide-bodied cargo freighters.
Anchorage Advantage The primary advantage for cargo carriers to make stops at Anchorage is that they
can maximize their payload to fuel ratio. In other words, by being able to carry more cargo and less fuel, they can operate with more efficiency and greater profitably. A carrier can carry an additional 100,000 pounds of revenue cargo by making a fuel stop in Anchorage. It’s a simple—but powerful—incentive to make use of the Anchorage stopover. Another advantage is Anchorage’s unique cargo transfer authorities granted to it by the US Department of Transportation in 2003. These expanded cargo transfer rights make Anchorage extremely flexible for the cargo airlines, which can make use of time on the ground refueling to also carry out transfers between their own planes and those of other carriers. These transfer rights include “on-line” transfers between a carrier’s own aircraft; “inter-line” transfers between one carrier and another carrier; “co-mingling” of US and non-US cargo; and “changeof-gauge” transfers from, for example, a wide-bodied freighter aircraft to one or more smaller aircraft flying to potentially multiple destinations from Anchorage. To help facilitate the use of these unique transfer rights, the airport has recently issued an “Expression of Interest” request
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business activity generated at the airport, and many local companies do business with the airport and with the airlines and service companies operating at the airport. that seeks for qualified applicants to outline their capabilities and expertise in the design, construction, and operation (or lease) of a Quick Cargo Center warehouse facility at the airport. According to the request, “ANC [Ted Steven Anchorage International Airport’s IATA code] is using this EOI to explore operation of a Quick Cargo Center that will take advantage of ANC’s special cargo transfer rights. Just as passengers use terminals to wait for their connecting flight, ANC envisions the Quick Cargo Center being a temporary cargo storage facility for cargo that arrives on one flight and needs to wait for a connection to another flight. The facility would be a secure, climate-controlled environment with close proximity to aircraft parking positions where tugs can quickly store and retrieve pallets.”
Continuing Growth One of the growth engines for cargo activity at the airport is the ongoing expansion of trade between the United States and China. In addition to FedEx, UPS, and several other major US all-cargo airlines, a number of mainland China and Hong Kong-based carriers also operate flights between Chinese and American cities via Anchorage. These Chinese carriers include Air China, China Cargo Airlines, China Southern Airlines, Yangtze River Express, and Cathay Pacific. Connecting other Asian cities to US points via Anchorage are cargo carriers like Korean Air, Eva Air (Taiwan), Singapore Airlines, Asiana Airlines (Korea), and Nippon Cargo Airlines (Japan). Another factor propelling growth is the rapid expansion of global e-commerce. Consider the millions of packages traveling around the world each day, shipped by e-commerce behemoths like Amazon, Alibaba, and eBay. In a recent air cargo industry publication, Jim Szczesniak, the manager of the Anchorage airport, commented, “On a typical day, we www.akbizmag.com
can see six B747 freighters heading to Amazon’s base in Cincinnati. We can also see around thirty UPS wide-body operations and seventeen FedEx wide body operations.” He went on to say, “Total air cargo growth in 2017 at Anchorage was up over 7 percent to 2.7 million tons, and we know that a large driver of that growth was e-commerce.” For Alaska, and for Anchorage, the success of the airport’s international cargo operations is significant. From a historical perspective, success with cargo has helped to offset the loss of international passenger operations that, at one time, enabled Anchorage to be known as the “Air Crossroads of the World.” The airport still maintains some international passenger operations, of course, but these are now almost always summer seasonal service operations. These carriers include Condor, Japan Airlines, Iceland Air, and Air Canada. Possible new international service offerings may be forthcoming in the near future. There has been interest expressed by several carriers, for example, to provide direct passenger service between Harbin, the capital of Heilongjiang, China’s northernmost province, and Anchorage. Harbin is a sister-city with Anchorage. But cargo operations are clearly the breadwinner these days. The airport continually works to support current cargo customers and to recruit others that may wish to enter the Anchorage market. They meet regularly with existing customers and make presentations to prospective carriers at international air cargo conferences to highlight the airport’s advantages and attributes. The airport, overall, including both domestic and international passenger and cargo operations, is a major driver of the Anchorage economy. It is estimated that one in ten jobs in the Anchorage area are a result of business activity generated at the airport, and many local companies do business with the airport and with the Alaska Business
airlines and service companies operating at the airport.
Ancillary Operations One of the goals of the airport, as well as the Anchorage community, is the attraction of ancillary businesses that can benefit from the strong air cargo connections available at the airport. Commercial activities such as transshipment hubs, third-party logistics centers, integrated repair, and return operations, could potentially find a role at Anchorage. In other words, one way to help ensure that the cargo airlines continue to stop in Anchorage, even at such time when technological advances in aircraft design and performance no longer necessitate them to stop, will be the presence of business reasons for them to make the stop beyond fuel and crew changes. Private sector business groups, like World Trade Center Anchorage and the Anchorage Economic Development Corporation, are involved in such recruitment efforts, as is the State of Alaska’s Department of Commerce, Community, and Economic Development. Also, of course, the growth of locallyoriginating cargo, from light manufacturing, for example, will provide ongoing motivation for the carriers to stop in Anchorage, as well. The types of manufactured goods that typically utilize air cargo are those that are low weight, high value, and time sensitive. The Anchorage airport is a valuable transportation infrastructure asset that continues to pay dividends for Anchorage and the rest of the state. Its continued growth, and the growth of businesses that can leverage its capabilities, offers opportunities for economic diversification and in keeping Anchorage and Alaska important players in the world of global transportation. February 2019 | 61
INTERNATIONAL TRADE SPECIAL SECTION | AIRPORT
It is estimated that one in ten jobs in the Anchorage area are a result of
INTERNATIONAL TRADE SPECIAL SECTION | CHINA
Alaska and China Ties between the Middle Kingdom and Great Land
C
hina is the world’s largest importer of natural resource commodities, and Alaska is a major American producer and exporter of many of those commodities, so the growing commercial ties between the Middle Kingdom and the Great Land make for a natural, mutually beneficial trading partnership. And, indeed, the dramatic growth of China as an economic powerhouse has fueled continued expansion of Alaska’s international trade economy and has been the headline story for the state’s export community for the past two decades. The rise of China as a global economic force to be reckoned with began with the economic reforms commenced in the late 1970s. From then, until as recently as 2015, the country averaged 10 percent annual GDP growth rates. China’s economy is now ranked the second largest in the world, behind the United States and ahead of Japan. In recent years, as the economy has grown and matured, growth rates have slowed but are still strong. Currently, the country’s GDP growth rate sits at about 6.5 percent, according to the World Bank. China is Alaska’s largest trading partner, with annual exports now valued at more than $1 billion. In 2017, the most recent period for which we have fullyear figures, exports from Alaska to the country totaled $1.3 billion. The record year, so far, was 2011, when Alaska exports to China totaled nearly $1.5 billion. That was also the year that China became the state’s number one export market, surpassing Japan, which had held that status since Alaska became a
By Greg Wolf
state in 1959. The fastest growth period for Alaska’s export shipments to China was between 2000 and 2011 when export values rose from a modest $100 million to reach almost $1.5 billion in just ten years. We’ve dubbed this period as the “Dragon Decade.” Seafood is the predominate export commodity from Alaska to China, accounting for 57 percent of the total. Minerals and ores is the second largest category at 27 percent. The two other notable export categories are energy at 7 percent and forest products at 6 percent.
Overseas Investments In addition to being the state’s largest trading partner, China also has Alaska on
China is Alaska’s largest trading partner, with annual exports now valued at more than $1 billion. 62 | February 2019
its radar for investment, either directly or indirectly. Two examples are found in the state’s mining sector: in 2009, China Investment Corporation (CIC), one of China’s sovereign wealth funds, purchased a 17.5 percent stake in Teck Resources, the Canadian mining company that operates the Red Dog Mine. Red Dog is one of the world’s largest zinc mines, and China is the world’s largest customer for zinc. In 2017, CIC sold off a portion of its stake in Teck, but still retains a 10 percent holding in the company. Another example is Kensington Mine. Just prior to the pouring of first gold at the new mine, the American company that operates the mine, Coeur d’Alene Mines Corporation, announced it had reached a landmark agreement whereby China National Gold Group, a stateowned Chinese mining company, would purchase approximately 50 percent of the gold ores produced at Kensington. While neither of these examples qualify as direct investment, with one a purchase of equity in a Canadian company and the other being a long term purchase agreement, it does, however,
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In addition to being the state’s largest trading partner, China also has Alaska on its radar for investment, either directly or indirectly. and North America, some 80 percent of the all-cargo flights operating across the Pacific make a stop at the Anchorage airport to refuel, change crews, and, in some instances, transfer cargo to other flights. Beside FedEx, UPS, and several other major American all-cargo airlines, there are a number of China and Hong Kongbased carriers that operate flights between China and US cities via Anchorage, including Air China, China Cargo Airlines, China Southern Airlines, Yangtze River Express, and Cathay Pacific.
to expand the use of the Chinese language and the understanding of Chinese culture. The Institute at UAA was established in 2008. In addition to teaching language classes, the Institute also hosts a number of cultural events each year for students and the community at large. World Trade Center Anchorage (WTCANC) has been actively building on the Alaska-China relationship for more than fifteen years. In that time, WTC-ANC has led trade missions to China, introducing Alaskan business people and government leaders to their counterparts
The dramatic growth of China as an economic powerhouse has fueled continued expansion of Alaska’s international trade economy and has been the headline story for the state’s export community for the past two decades. in the project as well as the purchase of some portion of the LNG produced. The three Chinese partners to the agreement are well-known, major players in global finance and energy: Bank of China is the world’s fifth largest bank; China Petrochemical (Sinopec) is ranked as the world’s fifth largest oil and gas company; and China Investment Corporation, a Chinese sovereign wealth fund with more than $900 billion in assets under management, is the third largest fund in the world. The agreement between AGDC and the Chinese partners was re-affirmed in October 2018, allowing negotiations to continue. China is currently the world’s third largest buyer of LNG, trailing Japan and Korea, but is widely expected to rise to the number one position in a few years. China is also an important factor in the continuing stability and growth of air cargo traffic at the Ted Stevens Anchorage International Airport. Located at a strategic midway point between Asia www.akbizmag.com
On the passenger side of the business, Alaska does not currently enjoy direct service to China, but there are talks underway with several Chinese carriers regarding the potential of direct passenger flights between Harbin and Anchorage. Harbin is the capitol city of Heilongjiang Province in northern China.
Education and Partnership In addition to the growing commercial activity between Alaska and China, there is also people-to-people diplomacy at work. Alaska has a long-standing sister state/sister province relationship with Heilongjiang Province. And the Municipality of Anchorage has recently re-established a sister city relation with Harbin. The city, located 650 miles north of Beijing, has a metro area population of 10.5 million residents. In the realm of higher education, the University of Alaska Anchorage is set to host a Confucius Institute, a program sponsored by the Chinese government Alaska Business
in China. Twelve years ago WTC-ANC launched the Alaska-China Business Conference, a unique, annual event that brings together business and government leaders from Alaska and China to discuss the state of the relationship and opportunities for expanding commercial ties in the areas of trade, commerce, and investment. In addition, WTC-ANC hosts in-bound missions from China and visits from government and business dignitaries. These visits have included China’s ambassador to the United States, consul generals, and CEOs from major Chinese corporations. Looking forward, while there may be friction from time to time at the nation-to-nation level, Alaska can play a positive role in bringing the two countries closer with projects and partnerships that are win-win for both sides. The Alaska-China relationship is strong and growing and is a natural partnership based on mutual benefit. February 2019 | 63
INTERNATIONAL TRADE SPECIAL SECTION | CHINA
clearly demonstrate China’s awareness and interest in participating in Alaska resource development projects. One such project that potentially involves direct Chinese investment is the proposed natural gas export project, known as Alaska LNG. The project would transport gas south from Alaska’s North Slope via an 800-mile pipeline. At the tidewater port of Nikiski, the natural gas would be cooled and compressed at a liquefaction plant to convert it into liquid natural gas (LNG) for shipment via specially-built tankers to customers in Asia. The current project cost estimate is $43 billion. In November 2017, the State of Alaska and the Alaska Gasline Development Corporation (AGDC) entered into a Joint Development Agreement with a consortium of three state-owned Chinese entities. The non-binding agreement provides a framework for negotiation regarding Chinese investment participation
INTERNATIONAL TRADE SPECIAL SECTION | SOVEREIGN WEALTH
Large Funds with a Long View Sovereign wealth funds are significant investors globally By Greg Wolf
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tate-sponsored investment funds, better known as sovereign wealth funds, continue to rise in economic clout as their assets under management continues to grow and they deploy funds into a broader range of investments. While these government-controlled investment vehicles vary considerably in size and scope, as well as by their particular 64 | February 2019
investment strategies and policies, they are a significant force in the financial markets and their impact can be felt in all corners of the world, including Alaska. Typically, the source of the capital for these funds originates either from excess foreign currency reserves earned through exports or from income derived from commodity sales such as oil and gas. China’s sovereign funds would be an example of the former, while
Norway’s would be an example of the latter. Generally speaking, Asian funds arose from export earnings while Middle Eastern, European, and American funds arose from commodity earnings. Most of these funds invest globally. Some of them dedicate a certain percentage of their portfolio for investment in their own countries. According to the Sovereign Wealth Fund Institute (SWFI), there are now seventyone sovereign funds. The value of their holdings is estimated to be $8.1 trillion as of December 2018. These holdings encompass a wide variety of financial assets including stocks, bonds, real estate, precious metals, and other investable assets. They also include so-called “alternative investments” managed by hedge funds, private equity and venture capital funds. Analysts at the SWFI, who track these funds, expect the value of the funds to hit $10 trillion by 2020. That growth projection is based, however, in large part, on anticipated higher oil prices, which may or not occur consistent with this timeline.
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example is Singapore and one of its funds, Temasek Holdings. This fund was established in 1974 and currently has assets of $375 billion under management. In pursuing economic development objectives, Singapore has a history of being proactive in their attainment. A recent example is Pavilion Energy. Already a major player in oil storage, refining, distribution, and trading, Singapore is now seeking to do the same with the Asian LNG (liquid natural gas) market. To accomplish this, the Singapore government, through Temasek, established Pavilion Energy. The company, launched in 2013, aims to help Singapore become an important player in Asia’s growing LNG market. It will do so through investments in key LNG assets and related LNG businesses. The company is 100 percent owned by Temasek. The company will make investments in upstream assets and, through its subsidiary Pavilion Gas, will manage downstream gas operations in Singapore. Pavilion will be involved with storage, distribution, and trading of LNG in the Asia region. Singapore created a new company, through an investment by one of its sovereign wealth funds, to help achieve a national goal. The investment horizon for the funds varies according to each fund’s goals and policies. Several years ago, for example, CIC moved to extend investment horizons from five to ten years. Creating a longer-term portfolio allows the fund to participate in non-public investment vehicles including direct investments, hedge funds, private equity, and real estate. Over time, this fund, which at its beginning invested significantly in the US financial sector, has moved into other sectors such as energy, natural resources, and infrastructure. CIC, established in 2007, today is China’s largest sovereign fund, managing $941 billion in assets, and already has Alaska on its radar, both directly and indirectly. In November 2017, during President Trump’s visit to Beijing to meet with Chinese President Xi Jinping, a joint development agreement was signed between the Alaska Gasline Development Corporation, the State of Alaska, China Petroleum Corporation (Sinopec), the Bank of China, and CIC to advance the Alaska LNG project. That agreement was re-affirmed in late 2018 with all parties agreeing to continue negotiations. Alaska Business
China, which today is the world’s third largest market for LNG and is widely expected to be the largest in the not too distant future, is a natural partner for Alaska given China’s enormous appetite for natural resources and the state’s world-class reserves of these commodities. CIC already has a foothold in Alaska: in 2009, Vancouver-based Teck Resources, the operator of the Red Dog Mine, announced it had sold a 17.5 percent interest in their company to CIC for $1.5 billion. The transaction was described as a long-term, passive portfolio investment for the fund. In September 2017, CIC reduced its holding in Teck to approximately 10 percent. Teck President and CEO Don Lindsay commented, “Prior to their purchase of our shares in July 2009, CIC told us they intended to be a long-term partner focused on financial returns. They have fully lived up to that commitment and, in addition, have been helpful in building important relationship with customers and others in China. We understand CIC’s reasons for monetizing a portion of its shareholding and are pleased that CIC intends to remain a significant financial investor in Teck.” Looking ahead, as the number of sovereign wealth funds grow and their assets under management continue to expand, their presence will increasingly be felt around the world. Alaska, with its abundance of natural resources so much in demand by both developed and emerging economies, is an attractive destination for investments by these funds. It’s a win-win combination as many Alaska projects need to be large scale in scope to be economically viable. In turn, these projects require correspondingly large scale funding by investors, such as the sovereign wealth funds, with long-term time horizons. In addition, as Alaska positions itself as a focal point of Arctic trade, commerce, and investment, the sovereign funds may find benefit in participating with Alaska-based investment vehicles in order to give them exposure to investable opportunities in the Arctic region. Sovereign wealth funds, and their state-owned enterprise cousins, could be ideal partners as Alaska seeks to grow its natural resource economy and its role in Arctic development. February 2019 | 65
INTERNATIONAL TRADE SPECIAL SECTION | SOVEREIGN WEALTH
While Alaska was not the first American state to establish a sovereign wealth fund—that distinction belongs to Texas— it is home to the largest fund in the United States. With assets of approximately $65 billion, the Alaska Permanent Fund currently ranks 19th among the world’s funds, ranking just below Libya ($66 billion) and just above Kazakhstan ($60 billion). By contrast, at just over $1 trillion, Norway’s Government Pension Fund Global is the world’s largest fund. In addition to Norway, other countries with very large funds include China, the United Arab Emirates, Kuwait, Saudi Arabia, Hong Kong, and Singapore. One of China’s sovereign funds is approaching the $1 trillion mark, as well. China Investment Corporation (CIC) currently is the world’s second largest fund at $941 billion. As noted, Alaska has America’s largest single fund at just over $65 billion. Texas has two sizable funds—the Texas Permanent School Fund ($37 billion) and the Permanent University Fund ($17 billion). Taken together, Texas has approximately $54 billion is sovereign assets. The Texas funds date back to the 1800s. Other American states that have established a sovereign fund include Wyoming, New Mexico, North Dakota, Montana, Louisiana, Alabama, Utah, Idaho, and (most recently in 2014) West Virginia. The Alaska Permanent Fund is unique among all sovereign funds with its annual cash dividends paid out to each eligible citizen from the fund earnings. Since the fund was established in 1976, some $25 billion has been distributed in the form of dividend payments to its citizens. Investment policies governing the sovereign funds vary considerably. Most, of course, seek to achieve a reasonable rate of return consistent with a commensurate rate of risk. Typically, they measure the success or failure of their strategy against an index of the particular asset class invested in. Others seek not only this but also to attain “strategic objectives” to benefit their country. For example, a country that is energy poor might choose to invest in companies, regions, or projects that are involved with energy production. Some countries are more aggressive than others in terms of the types of investments they are willing to make in order to achieve a particular goal. A good
INTERNATIONAL TRADE SPECIAL SECTION | EMERGING MARKET
A Largely Untapped Market India could represent 1.3 billion new customers By Alex Salov Alex Salov is the business operations manager of World Trade Center Anchorage and has been working at the center since 2004; he holds a master’s degree in global supply chain management from the University of Alaska Anchorage.
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hat comes to mind when someone hears the word “India”? A large country located very far from Alaska. A very populous country home to millions of poor farm workers. At the same time, India also home to millions of highly skilled IT professionals. Many college students encounter professors from India who teach a spread of subjects at major American universities. And last but not least, the Taj Mahal is a major travel destination for many Western tourists. The above statements paint a multifaceted image of India. But what about India/Alaska relations? The current trade between India and Alaska is very low: India is Alaska’s 48th trading partner with $769,000 in exports (placed between Israel, 47th, and Romania, 49th). Current trade commodities include chemicals, electrical and transportation equipment, and waste and scrap. However, there are many opportunities for this trade to grow, and Alaska’s business and government leaders need to take a closer look at India and learn more about this potential new partner for Alaska.
India’s Socioeconomic State India’s landmass is about one third of the US territory, but it has three times more population than the United States—1.3 billion people, approximately one fifth of the world’s population. By 2024, India is on track to become the world’s most populous nation, surpassing China. One-third of India’s population is below the age of eighteen, and the median age is twenty-seven. A similar trend was true about China several decades ago; however, today the median age in China is 66 | February 2019
Currently, India is the fastest growing economy in the world with 7.4 percent of GDP growth projected for 2018. thirty-eight years old. Nearly 70 percent of Indians live in rural areas, but this number decreases every year. The country has twenty-two official languages, many religions, and is the world’s second largest English-speaking country (125 million people) just behind the US. India is a parliamentary democratic republic and it attained independence from Great Britain in 1947. Today India consists of twenty-nine states and seven union territories. India’s strong political system is an important factor for potential foreign investors—in 2016 it was the world’s top investment destination. Another factor that is often mentioned in India-related articles is that India has one of the world’s most extreme income inequality levels: more than 100
billionaires and 245,000 millionaires live side-by-side with hundreds of millions of low income people. Approximately 70 million of those are living in “extreme poverty,” surviving on less than US $2 per day. It is estimated that the richest 10 percent of Indians own more than 80 percent of country’s wealth. According to some economists, India’s “extreme poverty” is declining and will come to an end by the middle of the 21st century; however, there is no doubt that a very large group of the Indian population will continue to live in poverty. India shares similar economic growth characteristics with developing countries in Southeast Asia. Currently, it is the fastest growing economy in the world with 7.4 percent of GDP growth projected for
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Energy Infrastructure Needed Very often, mobile phones are the sole source of communication, information, and entertainment. As the middle class in India grows and urbanization continues, adequate infrastructure needs are currently not met and are immense. In an effort to cope with this problem, the Indian government has ambitious plans to electrify 40 million households that today don’t have access to electricity. To do so, the government is focused on growing the infrastructure of new power plants, roads, LNG terminals, pipelines, and offshore gas development terminals. Currently, coal is the largest source of electric power in India (80 percent of all the electricity is produced with coal). As the old adage says, “coal is still king.” India is the world’s second largest coal importer by volume after China, and the main coal suppliers to India are Australia,
China vs. India There is a tendency to compare India to China as they are the world’s most populous and rapidly developing countries. While China has positioned itself as the “mover and shaker” of the world, India’s growth is comparatively quiet. However, in the 21 st century India is poised to surpass China in both population and GDP. It has been forecasted that in 20182019 India’s economy is going to surpass France and the UK (currently, world’s 5th and 6th largest GDPs, respectively) to become the world’s 5th largest GDP after the United States, China, Japan, and Germany. Indian and Chinese economies are mirror opposites if compared in terms of their main export commodities. While China is the world’s largest manufacturer and exporter of manufactured goods, its service sector is largely focused on the internal market. For India, on the other hand, it is estimated that 37 percent of total exports in 2017 accounted for the services exports (software and IT services, followed by business, transportation, financial, insurance, and other services), and this percentage continues to grow. Indian manufacturing is currently focused on
military dialogues, business activities, and people exchanges, and “there is more going on between India and the United States than with any other country.”
Stumbling and Building Blocks So what are the obstacles to doing business in India? From Alaska’s standpoint these include distance and the absence of direct transportation routes between Alaska and India. The US Department of Commerce considers India to be a difficult market for outsiders because of the bureaucracy and corruption. That said, Alaska companies can offer many building blocks to address India’s infrastructure needs, including natural resources, technologies, and services. The Indian middle class is growing, and its demand for high-quality products that Alaska can offer is also growing. One more thing to consider about India is the size of its market. Just like in China, working with a local distributor in India can be more than enough for an Alaska business to fully utilize their products or services. World Trade Center Anchorage led the first ever business trade mission from Alaska to India in 2010. Several Alaska economic sectors—including infrastructure development and energy—
In the 21st century India is poised to surpass China in both population and GDP. Indonesia, South Africa, and the United States. In 2017-2018 India was the largest importer of American coal. Potentially, coal development and coal exports can become big business for Alaska with regard to trade with India. India currently imports more than 80 percent of its oil, plans to cut its reliance on foreign energy, and will offer international investors $300 billion dollars in investment opportunities in the energy sector. Currently, there are four operating LNG receiving terminals with eleven more planned or under development. The new LNG plants are positioned to increase overall LNG share in the energy mix to 15 percent (currently at 6 percent). India is the fourth largest LNG importer in the world and currently imports the gas from Qatar, Russia, Australia, and the United States. If a gas pipeline project in Alaska gets underway, India could potentially be a new and significant customer for Alaska LNG. www.akbizmag.com
the internal market, but this trend can change as the country develops. One of the reasons for the high demand for India’s service sector around the world is, of course, the advanced education level of the service industry’s human capital. Also, one of the major factors that adds to the success of the Indian service sector is the ability of its employees to communicate in English (the international language of the IT and finance sectors). An important factor that influences relations between the United States and India are the 3.3 million Americans that are of Indian origin who are employed in various business and government sectors and support the development of United States/India relations. According to the India First Group, a US-based strategic consulting firm, the interaction between India and the United States is“ extraordinary,” including government and Alaska Business
were represented, along with several state government officials. A number of meetings were held for the Alaskan delegation in New Delhi, including meetings with several Indian ministries and energy companies. The interest for bilateral commercial relations exists and a next step may be an inbound trade delegation visit of Indian leaders to Alaska to research economic opportunities. In spring 2019, World Trade Center Anchorage will conduct the second Alaska-India Business Conference during which commercial dialogue can continue and Indian officials will be able to meet their Alaskan counterparts and possibly connect with them with regard to the new business opportunities. This will be an important opportunity for Alaskans to understand India’s import needs and for Indians to evaluate Alaska’s export capabilities. February 2019 | 67
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2018 (compared to 6.6 percent in China and 3.1 percent in the United States). India has 1.16 billion wireless subscribers (86 percent of the whole population). This is a trend in developing countries, where people have access to mobile phones without access to common infrastructure such as roads or even electricity.
INTERNATIONAL TRADE SPECIAL SECTION | ARCTIC UPDATE
The Arctic Opportunity Alaska: the commercial gateway to the American Arctic?
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By Greg Wolf
s the world increasingly turns its eyes northward to the potential of the Arctic, Alaska finds itself uniquely positioned to play a leading role to serve as a gateway and forward base of operations for commercial development in the region. More so than any other state, Alaska has the opportunity to benefit from the economic activity that transpires in the American Arctic. The Arctic opportunity is literally in Alaska’s backyard. Geography doesn’t always deal the best hand; it can, after all, be a curse or a blessing. For Alaska, perched at the top of the world, its location has often worked to its advantage. For decades Alaska’s vast store of natural resources, combined with its strategic location on the Pacific Rim, has resulted in significant export opportunities (primarily to major Asian markets) that now amount to some $5 billion annually. Likewise, situated as it is nearly equidistance between Asia, Europe, and the United States, Alaska has become a key player in the international air cargo industry with dozens of airlines mak-
More so than any other state, Alaska has the opportunity to benefit from the economic activity that transpires in the American Arctic. 68 | February 2019
ing use of the Ted Stevens Anchorage International Airport as a stop to refuel, change crews, and to pick up or transfer cargo. The airport is among the top five in the world for cargo throughput. Now, it’s the state’s location in the Arctic that offers an emerging new economic opportunity. And, it’s not just the blessing of geography that presents Alaska with this opportunity. Alaska is home to a wide range of companies with world class capabilities in conducting business and carrying out projects in the far north. In addition to the business experience and expertise present in the state, Alaska is also home to a number of important Arctic policy agencies and organizations, as well as scientific research centers and cultural institutions. One further advantage for Alaska is the state’s Native peoples who have lived in the Arctic for thousands of years. They possess traditional knowledge of the lands, waters, and wildlife passed down through the generations. When joined with modern technologies and methodologies, this local expertise can help to ensure the success of projects. Companies operating in Alaska— whether local, national, or multi-national —have demonstrated their abilities to do business in a very challenging part of the world. They’ve learned to deal with extreme weather conditions, isolated job sites, extended supply chains, and a host of other conditions that require high levels of technical expertise and management. They’ve accomplished this under what are arguably some of the most stringent environmental standards. Particularly in the areas of natural resource development, such as oil, gas, and mining, companies operating in Alaska have the credentials to seek out and win business in other parts of the world, including other areas of the Arctic—and are doing so. At the same time, there are opportunities for American and foreign companies to come to Alaska and establish partnerships and joint ventures with Alaska firms for projects both in Alaska and elsewhere in the region. Many Alaska Native corporations, for example, have operating subsidiaries that specialize
Alaska is home to a wide range of companies with world class capabilities in conducting business and carrying out projects in the far north. in Arctic development. These companies not only do business in Alaska, they are also investors and participants in businesses and projects worldwide. Institutions interested in gaining portfolio exposure to investment opportunities in the Arctic will find Alaska home to a private equity company that focuses specifically on these investments. Anchoragebased PT Capital, founded in 2013, is the first private equity firm in this space and is currently putting money to work in a number of Arctic markets, including Alaska, Iceland, Finland, and Canada. They have made investments in an Icelandic telecommunications company and a hotel group in Finland, among others. Besides business enterprises focused on the Arctic, a number of government agencies and non-governmental organizations involved with Arctic policy are based in Alaska. These include the US Arctic Research Commission and the Institute of the North, both headquartered in Anchorage. There are scientific research centers in Alaska with an Arctic focus including the International Arctic Research Center and the Cold Climate Housing Research Center. Both of these entities are located in Fairbanks. In the area of education, the University of Alaska Fairbanks is a member of the University of
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have lived in the Arctic for thousands of years. They possess traditional knowledge of the lands, waters, and wildlife passed down through the generations. When joined with modern technologies and methodologies, this local expertise can help to ensure the success of projects. the Arctic, an international network of universities, colleges, and research institutes involved with education and research in the North. University of Alaska Fairbanks is also a recognized world leader in wide array of Arctic-related research endeavors. To better understand the opportunities posed by development of the Arctic—and the role Alaska can play—for the past seven years World Trade Center Anchorage has conducted Arctic Ambitions, an annual international conference and trade show focused on trade, commerce, and investment in the Arctic. In a nutshell, the event concerns itself with “the business of the Arctic.” The event highlights business opportunities associated with commercial development in the Arctic, including natural resource extraction (oil, gas, and mining), engineering, design, construction, environmental services, mapping , charting, energy, emergency response, tourism, telecommunications, maritime shipping, and others.
From these gatherings of business executives and government officials, a set of questions has emerged that serve to put into focus some of the fundamental issues related to commercial development in the region: Which projects need to be developed? What are the priorities? In other words, which projects come first? What do the projects cost and who do they serve? Who Pays? Government? Private sector? Both? What are the economic triggers to justify project development? What is the timeline? In other words, when?
always flow in a straight line. But with time the answers will come and Alaska, as America’s Arctic state, can play a key role. The opportunity for the state is simply too big to ignore. In a recent report by Lloyd’s of London, it’s estimated the investment needed in the Arctic in the next ten years is in the range of $100 billion for infrastructure projects such as ports, pipelines, roads, and power generation. If Alaska garners just a small percentage of the expected build out, the revenues, jobs, and other economic benefits would be considerable. With its strategic geographic location and considerable inventory of Arcticrelated assets, Alaska is poised to serve as the commercial gateway to the American Arctic. And, as the world increasingly looks north for opportunities and solutions, Alaska is uniquely situated and prepared to play a leading role.
The answers to these questions, of course, are a work in progress and don’t
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One further advantage for Alaska is the state’s Native peoples who
E D U C AT I O N
UA system nursing programs are led out of the University of Alaska Anchorage but are available statewide throughout the system.
Strategic Pathways
University of Alaska
The University of Alaska’s path to even higher education
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By Tasha Anderson
n 2016 the University of Alaska (UA) launched Strategic Pathways, a plan to “maximize value to Alaska through excellent, accessible, and cost-effective higher education.” An early draft was published in February 2016, and three years later UA has made significant strides in pursuing its goals.
Progress with Pathways According to UA President Jim Johnsen, “Many of the decisions resulting from the Strategic Pathways process have been implemented or are in the implementation process.” For example, within the UA system there used to be three schools of management, but now there are two; there were several procurement processes 70 | February 2019
that have been streamlined into one; multiple email platforms have been turned into one; and several grants and contracting processes have been simplified to one. In December 2016, the UA Board of Regents voted to locate the administrative functions of the Alaska College of Education at the University of Alaska Southeast, which now takes on a new leadership role in teacher education for the university system. Johnsen emphasizes that while a program may be led from one campus, opportunities to participate in that program are still available to students at other locations. “University of Alaska Anchorage [UAA] still has a School of Education, and the University of Alaska Fairbanks [UAF] still has a School of Education, but we felt it was important from a performance
and accountability viewpoint to designate one of our campuses as the lead. It’s very similar to the structure we have for our nursing programs. Those are led out of UAA, but we still have nursing programs across the system.” In this framework, the lead campus collaborates with the other programs and plays a vital role in coordinating and aligning the programs available at all three universities. According to a Strategic Pathways update presented to the UA Board of Regents in September 2018, initiatives involving engineering, teacher education, management/business, fisheries, and mine training programs have been completed, and initiatives related to health programs, arts and humanities, social and natural sciences, human resources, university relations, institutional research, information
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To provide Alaskans better access to jobready classes and programs, UA announced a 25 percent discount on tuition on many career and technical education courses, ranging from pharmacy technology to welding. University of Alaska
technology, finance, and facilities and land management are being implemented. General Education Requirement and academic calendar alignment also are being put in place. Looking forward, process improvements, research administration, eLearning, risk management, and plans related to athletics and community campuses are ongoing. “We are trying to answer the question: How can we do more for the state with less money?” Johnsen explains. “So we did some structural moves and focused on process improvements,” which streamline work for faculty and improve the experience for students, making it more convenient and up-to-date. Johnsen says that today, people have high-quality interactions online with large corporations such as Amazon or Alaska Airlines that have invested in improving the client/customer experience. “We haven’t invested in those over time, so we are investing in those right now.” One result of that investment is a new website gateway called My Future Alaska that allows students interested in higher education in Alaska to see the UA system as a “big picture.” For example, previously students interested in political science www.akbizmag.com
would need to visit the UAA, UAF, and UAS websites separately to see what programs and courses are offered at each one. My Future Alaska is a “horizontal view of all of our programs across the UA system that makes us much more transparent and communicates to people wherever they are in Alaska all of the programs that are available to them,” Johnsen says.
Goals for 2025 Johnsen has been UA’s president for just more than three years, having joined the university system in August 2015. He says that when he came onboard—in the midst of a state in a fiscal crisis and budgets for education being slashed—step one was Strategic Pathways: “What do we do now to step up our performance while our budgets are being cut, while people are being laid off, to try to create some positive energy.” But that was just step one; step two has taken the form of a seven-year plan that extends to 2025 and has five major goals: increase college completion and attainment, prepare Alaska’s workforce for Alaska jobs, contribute to the expansion and diversification of the state’s economy, Alaska Business
continue to strive for cost-effectiveness, and grow UA’s world class research. The number one goal for Johnsen is economic development. “Our state lags in many standard economic criteria: we have the lowest job growth in the country, the highest unemployment, and the lowest value added manufacturing of any state in the country. So what can we do, in terms of programs, to strengthen economic development in Alaska?” The system’s other goals all relate to building Alaska’s economy. Alaska is already a world leader in Arctic research, and in addition to capitalizing on that strength, UA is looking at what other research areas can benefit Alaska, such as healthcare and energy. “We have developed research initiatives that support challenges that we have in the state and support practical solutions to those challenges.” Educating and developing Alaska’s workforce clearly support the economy, and according to Johnsen, UA has decided to focus on two vital sectors: healthcare and education. “We’re still going to train engineers and welders, but healthcare occupations and teachers are two key areas for the state, and we’re making progress February 2019 | 71
UA President Jim Johnsen (right) is passionate about education, saying: “The single most important thing you can do for your state or nation is educate your people.” University of Alaska
on both of those,” he says. “We’re working with employers to find out what they need: what are you looking for, how many people do you need, what do they need to know, and what kind of attitudes do you want, because they can’t know everything, but people who are creative and innovative can learn on the job as they go.” Johnsen is particularly passionate about education, as one would hope, considering his vocation. He says, “The single most important thing you can do for your state or nation is educate your people.” He explains that Alaska ranks lowest in the nation in terms of students continuing their education after high school, whether that’s attending a four-year university or getting a vocational certificate. “We’re 50th in the country—we really want to step that up. Research across the globe says if you increase educational attainment in your state or in your country, you will improve the health status of your people. You will improve their incomes. Their kids will do better as a result of that, and are less likely to go to jail. Those are just a few—and all good—things.” As a part of this goal, UA is partnering “upstream” with K-12 educators, such as investing in dual enrollment programs (through which high school students 72 | February 2019
can take college-level courses) and the Middle College School programs, now with locations in Anchorage and Eagle River, that allow students to earn college and high school credits simultaneously.
Online with UA Middle and high school students aren’t the only nontraditional students that UA tries to accommodate. “Our traditional student is a non-traditional student,” Johnsen says. “Our average student is twenty-nine years old, so the idea that we can expect all of our students to come to class—to live in a dorm, to attend classes Tuesdays and Thursdays from 11:00 to 12:30—is ridiculous. In order to really serve our students, we need to recognize who they are.” To that end, UA has been pushing to develop its online course offerings in addition to evening and weekend class offerings. But especially in Alaska, online programs are the best bet to make sure students have access to the courses they need to work around work schedules, transportation, or weather issues. UA’s catalogue of online classes has expanded dramatically over the last three years, Johnsen says, “and we will keep driving that.” UA now has several degree programs that are available entirely online,
such as bachelor’s degrees in psychology, justice, and business. He says UA is very close to offering a bachelor of science in biology solely online. Additionally, a master’s degree in business can be earned entirely through online courses, “and there are many, many others,” Johnsen reports. In total, the UA system has 108 eLearning programs. One concern for many with pursuing an online degree, or even taking an online course, is if the quality of the course will match the standards of an in-person class or program. In November UAF became the fourth university in the nation to earn the Quality Matters Online Learner Support certification. Quality Matters is a nonprofit, quality assurance organization that reviews, offers ideas for improvement, and provides certification of quality for “well-conceived, well-designed, wellpresented online courses and programs.” According to a UAF release about the certification, “The Quality Matters review team was particularly impressed with the tech support available and the high satisfaction ratings it got from online students, the programs in place to help students succeed academically, and the variety of ways UAF accepts student feedback.” Johnsen adds, “Sometimes
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folks think that the online programs aren’t of quality, and they’re just flat wrong. Yes, face-to-face education is great, but for a lot of people with real lives and jobs and families, we’re just not available to serve them [through a traditional college approach]. So there’s been a lot of focus on quality in those online programs.” Most students attend college in search of better employment opportunities, whether that’s finding a new career or building on their current one. Considering many of UA’s students are not at the beginning of a career, it becomes even more vital to find the right program to meet their goals. To that end, in November 2017 UA launched Career Coach, which allows students to browse Alaska job postings, get information on workforce training and educational opportunities, and find data on Alaska labor markets and wages. Johnsen says, “The whole idea of Career Coach is we pulled together data from employers and other sources and make that data available to our students so they can say: Well, if I pursued this academic degree, what’s available to me?” Alternatively, if students already have a program in mind, such as nursing or petroleum engineering, they can see what jobs are available, how many openings there are, and where those jobs are in Alaska. “The concept is to integrate market data, job availability data, and our academic programs. It’s a cool program and we’re getting a lot of usage out of it.”
In April 2018, the McDowell Group prepared the University of Alaska Household Opinion Survey 2018, which took a look at Alaskans’ perceptions on “quality of life, the economy, outlook for the future, and their level of concern for a number of issues such as crime, energy costs, climate change, quality of education, and employment.” One of the takeaways that Johnsen was pleased with is that people have more confidence in UA than any other state entity they were asked about. In total, 28 percent had “significant confidence” in UA and only 15 percent of respondents reported that they had
“little confidence,” compared to the federal government and Alaska Legislature, which tied with 48 percent reporting “little confidence.” “If it’s true that higher education is critical for a state’s livelihood and competitiveness, then I would need to leave the state if I’m not optimistic,” Johnsen says. “But I love the state, and I love the people of Alaska, and I do everything I can to position the university to lead. There is no great state without a great university, period. That’s something for us to always remember and strive to support.”
No End in Sight Johnsen already has a vision beyond 2025 for the people and state that UA is striving to serve. “One of the things we’re looking at is 2040, and you’ll say, ‘Really, Jim? 2040?’ But a kid born today in Alaska, if he or she stays on track with their education, if we get it right, that kid will be graduating at UA in 2040… And if we don’t get it right, if we don’t make those investments and don’t create a stronger institution and therefore a stronger economy for Alaska, that kid’s not going to graduate or that kid’s not going to stay here.” Johnsen is bullish about the state and UA and throughout the last several difficult years has maintained his optimism about how the university can be a tool to help the state become stronger. “I don’t see us as a barrier to economic development, we’re actually an instrument for creating the state’s future,” he says. www.akbizmag.com
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H E A LT H C A R E
Health Wanted
Finding the next wave of Alaska’s life-savers By Arie Henry
I
t’s no revelation that the healthcare industry is experiencing an economic boon in the Last Frontier. Indeed, Alaska boasts the best average wages for several healthcare positions, including optometrists, pharmacists,
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dental hygienists, and general technologists and technicians. Healthcare employment has recently seen consistent increases—not many sectors in Alaska are seeing that trend. What isn’t common knowledge, however, is the Alaska Business www.akbizmag.com
UAA School of Nursing student Krysta Byford goes over treatment plans with actor Danny Ashton Earll as he portrays a patient about to be discharged during a simulated patient care scenario in UAA’s Health Sciences Building Simulation Center. UAA College of Health
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process involved in filling the positions that fuel the growing demand for jobs. The truth is that recruiting qualified employees is not as straightforward as one might think in such a “healthy” business environment. It’s a journey in which future employees and prospective employers do eventually meet, but not without help from educational outreach and staffing agencies. “We’re having a hard time finding talent that is qualified. Most businesses want people to have two years’ experience, three years’ experience. We’re getting a lot of people right out of college or right out of school,” says Kyle Thacker, client champion at Anchorage-based staffing agency Alaska Executive Search (AES). According to Thacker, AES employer clients seek to fill positions with candidates who have a substantial amount of time in the field and who have practically applied their skill sets in real-life scenarios. After all, real lives are on the line. The complication is that agencies like AES have a glut of Alaska-grown, soonto-be employees just out of college or vocational school with little to no practical experience on their resumes. So what is a graduate with a brand new degree and no prior work experience (at least in the medical field) to do?
Professor Grace Leu-Burke instructs medical laboratory science student Robert Beacham as he examines microrganisms he has cultured during an assignment for Advanced Clinical Microbiology in UAA’s Health Sciences Building. UAA College of Health
It All Starts with School The high demand/low supply situation has compelled employers like Providence Hospital to expand their searches to a national pool of talent. “We do contract with travel nurses from staffing agencies to supplement our staffing while we are in the process of looking for permanent staff,” says Providence Senior Manager of Talent Acquisition Kathryn Wade. “We have a wide variety of marketing, recruiting, and mission-aligned outreach programs designed to connect with
“You’re almost never going to hear [from employers], ‘They were unqualified.’ They wouldn’t have hired them. So then that just doesn’t really eliminate anybody. But what you hear is, ‘This person made the work environment toxic.’ In order to become a doctor, a registered nurse, or any highly-trained medical professional, they are trained how to save your life but not necessarily how to make you a happier person.” —Drew Sharp, Medical Recruiter, Alaska Executive Search
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new grads as well as experienced healthcare professionals locally and nationally to highlight career and growth opportunities with us.” As far as boosting the numbers of those local prospects, Wade cites specific efforts to make that happen: in the state’s largest city, Providence works closely with educational institutions like the University of Alaska Anchorage (a campus that is located across the street from the hospital’s own campus) and Charter College to fill positions that are ideal fits for new graduates. Dean and Vice Provost of UAA’s College of Health Jeff Jessee echoes the problem noted by Thacker, saying, “There’s nobody in that sweet spot who has had a few years of practical experience, meeting the requirements of what the employers are seeking.” Jessee cites a situation in rural Alaska that illustrates what happens when sourcing “Outside” personnel becomes a logistical challenge. The Yukon-Kuskokwim Health Corporation (YKHC) in Bethel relies heavily on out-of-state traveling nurses, but to entice those nurses to work in rural Western Alaska, “their nursing scheduling has gone to a seven-day-on, seven-dayoff schedule so that these travelers can fly in, do their twelve-hour shifts for seven days, get on the plane and go back home,” he notes. Jessee and UAA offered YKHC an alternative solution. “When we talked to the CEO, he said, ‘If you can get me to a tipping point where now it makes sense for me to move my scheduling back to a normal one [by having a locally-employed workforce], I’m all-in.’”
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Dental Hygiene student Mandi Roberts works on a patient in the Dental Programs Clinic in UAA’s Allied Health Sciences Building. UAA College of Health
YKHC is just one rural provider on which the university is keeping a close eye in order to understand the staffing needs of local communities. It’s a crucial practice, as healthcare positions in rural Alaska require a particularly versatile range of skill sets; with fewer staffers, each doctor and nurse must be prepared for just about any scenario. Dr. Marianne Murray, director of the UAA School of Nursing, notes that in addition to a large nursing program in Anchorage, the University of Alaska system has nursing schools in fourteen distance sites that include Bethel, Ketchikan, and Sitka. All of these locations have their benefits. Anchorage nursing graduates have the opportunity to gain work experience in one specific department of a large hospital, and nurses in more removed locations such as Valdez can see everything from infant deliveries to heart attacks in one day. “We call them ‘frontier generalists,’” says Murray. “They really are filling a need for these frontier hospitals, critical access hospitals that need a nurse. They can do everything from being with somebody when they die to being next to somebody when they give birth.” In recent years, UAA bolstered the resources and curriculum needed to better prepare students for patient interaction through simulated exercises using both real-life actors and high-tech mannequins. “There’s actually a control room with one-way mirrors and these high-tech mannequins, and it looks like a hospital room. You can make it look like a surgery, intensive care, [or] the emergency room. A computerized system runs the students through simulated medical situations and gives them a chance to boldly apply their knowledge in a safe environment,” says Jessee. This type of curriculum is especially helpful to frontier generalists; though they have to be ready for anything, they’re not www.akbizmag.com
guaranteed to see any specific medical situation at a clinic.
Culture Matters Every organization, healthcare and otherwise, is a collection of personalities. So employers need to find candidates with more than just the required certificates, clinical experience, and other technical qualifications that a position demands. Soft skills like the ability to communicate, problem-solve, and collaborate with others are critical traits in any position. Sometimes, an ideal fit won’t necessarily have the perfect mix of technical and interpersonal savvy but may just need an opportunity to show his or her workplace value. Those “diamonds in the rough” are an AES specialty. “We have the time and energy to put into not only screening everybody but also giving the applicants their fair shot,” says Drew Sharp, medical recruiter at AES. “With those candidates that might be fresh out of school, have an amazing personality, and are really driven to learn their position, we provide that extra boost they need and deserve to get into that first job. “If they’re not being considered enough by direct-hire positions, we give them temp opportunities so they can show that they have that skill set that they’re claiming to have.” As a client champion advocating for candidates to potential employers, Thacker adds: “That’s where working with a staffing agency can help you because we do have those established relationships with people in the community. We can reach out to them and they tend to trust our opinion.” As the economy in the Lower 48 continues to prosper, it may be the perfect opportunity for Alaskan talent to leverage those kind of relationships. Thacker says there’s been a drop in out-of-state applications through AES. According to Jessee, sourcing jobs locally is superior to recruiting traveling personnel not just from a logistics standpoint but from a culture standpoint as well. UAA tailors its health programs in a way that allows students to go from an associate degree all the way up to a master’s or PhD. In this way, Jessee hopes to see a rise in supervisory positions filled by locals instead of travelers so that all staff share a common context. Culture cannot be understated when it comes to staffing the right people in any business, let alone healthcare. Alaska Business
“There’s nobody in that sweet spot who has had a few years of practical experience, meeting the requirements of what the employers are seeking.” —Jeff Jessee, Vice Provost/Dean University of Alaska College of Health
Sharp explains it this way, “You’re almost never going to hear [from employers], ‘They were unqualified.’ They wouldn’t have hired them. So then that just doesn’t really eliminate anybody. But what you hear is, ‘This person made the work environment toxic.’ In order to become a doctor, a registered nurse, or any highly-trained medical professional, they are trained how to save your life but not necessarily how to make you a happier person.” In response to a need for employees skilled in human interaction, UAA has recently revised its curriculum. “The human part has really been left out,” says Murray. “So standardized patient exercises help us break down their soft skills. We’re moving towards a more 360 view of our students.” The process has applications in other fields, like social work. Jessee and Murray hope these skills can provide solutions to issues such as the high turnover rate of child protection workers. In terms of overall trends, Wade and Providence anticipate a sustained future demand for nurses, while Jessee also points to the countless other positions that will be required to support the entire scope of care, from behavioral health to imaging technicians and billing staff, and a bevy of other positions. The industry is ready to fill positions now. With an abundance of in-state talent, it ultimately boils down to a candidate’s readiness and the employer’s willingness to provide opportunities to newcomers. February 2019 | 77
TOURISM
Playing Nicely Together Tour operators work cooperatively to benefit travelers and each other
C
By Vanessa Orr
ompanies in the tourism industry often work together to provide the best experience for those visiting the Last Frontier. And while this form of cooperative tourism may seem counterintuitive since many of them are competing for the same tourist dollar, such relationships actually benefit all of the parties involved—including the state itself. “Alaska in particular is a unique destination, and everyone in the industry wants the destination to succeed because a rising tide lifts all ships,” explains Jillian Simpson, vice president of the Alaska Travel Industry Association (ATIA). “Our goal is to have a customer walk away from their Alaska experience with
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Great Alaskan Holidays’ goal is to provide customers with an amazing experience while also supporting the state’s tourism industry, so they partner with companies ranging from flying services to fishing guides. © Charlie Sears
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February 2019 | 79
Passengers of the Alaska Railroad can join Chugach Adventures for rafting tours. Alaska Railroad
There are other benefits to working with someone familiar with the state. “If you are able to book with someone who knows the destination well, you can trust that they will know the responsible operators and the best experiences in each location—that you won’t miss out on the highlights,” says Simpson. “An added value is that you can get the inside scoop on restaurants and guides, as well as take advantage of the special relationships that these companies have formed with other tour operators—for example, you might get to meet with a particular musher during a tour. You wouldn’t have access to this type of experience if you planned your trip independently.”
Finding the Right Partners
Visitors on Alaska Railroad’s Spencer Glacier whistle-stop can spend the day rafting, floating the river, hiking, or ice-climbing. Alaska Railroad
a well-rounded trip and to be happy with all aspects of their vacation,” agrees Bob Johnson, director of marketing for Great Alaskan Holidays. “While we’re in the business of renting motorhomes, we also want to support the tourism industry in Alaska as much as we possibly can. Ensuring that visitors have a positive customer experience—and want to come back—benefits us all.”
The Popularity of Package Tours According to a survey conducted by McDowell Group for ATIA, Alaska visitor statistics from 2016 showed that 64 percent of summer visitors purchased a tour package through one distribution channel that included two or more components for one price. This number is down slightly from a decade ago— 80 | February 2019
in 2006—when 69 percent of visitors purchased a tour package. “While we’ve seen a slight decrease in people booking package tours, it’s remained pretty consistent,” says Simpson. “It was thought that Baby Boomers and younger travelers might want to be more independent, but the fact is, these types of packages offer so many benefits that we have not seen a dramatic decrease. “I think it’s due in part to the fact that Alaska is a very big destination, and it can be complicated and overwhelming to plan the entire trip yourself,” she continues. “Most people who come to Alaska don’t stay in one spot; they want to travel around. And it definitely helps to have someone who knows the logistics involved and who can help visitors pick what will work best.”
With so many different tourism offerings out there, how do companies find appropriate partners? A lot of factors are taken into consideration, from the level of service provided to the uniqueness of the offering to safety records and employee satisfaction. “We look for a strong track record in customer service and companies that are known for delivering a good experience,” explains Meghan Clemens, marketing communications manager for the Alaska Railroad, adding that the company works with everything from large businesses to small momand-pop operations. “It’s the nature of train service to take passengers to new destinations, but they’re going to need somewhere to stay overnight and something to do. So we work with dozens of hotels, lodge properties, and tour operators to provide them with accommodations and activities.” Clemens notes that the company also looks for a solid safety record, as well as hotels and tours that are accessible to all levels of ability. Alaska Railroad’s reservation agents are locals, so they’re familiar with the options available to visitors. They advise visitors going to Denali National Park, for example, to spend at least two days in the park and to take part in excursions including flightseeing around the mountain, wildlife tours, and river rafting. “Denali is a huge bucket list destination, and one of our partners, the Grand Denali Lodge, is one of its most popular accommodations,” says Clemens. “Another one of our trips, the Spencer Glacier whistle-stop, is a passenger
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One of Great Alaskan Holidays’ motorhomes outside Nagley’s Store in Talkeetna. © Charlie Sears
opportunity we’ve developed in partnership with the Chugach National Forest Service.” Located south of Portage off of the road system, the only ground transportation to Spencer Glacier is by train. Once there, visitors can join Chugach Adventures for rafting tours or to float the Placer River or go ice climbing or hiking on Spencer Glacier with Ascending Path. Alaska Railroad handles summer bookings for the trip. According to Johnson, before Great Alaskan Holidays partners with a company, there’s a fairly significant vetting process. “We spend a fair amount of time getting to know the companies that we will recommend to customers as our business partners,” he explains. “We learn the core values of a business, their business processes, how they deal with customer satisfaction, and how they deal with customers who aren’t happy. We want to partner with companies that reflect our core values and share our perspective on customer service. “Safety, of course, is a top priority, and we also look at longevity—how ingrained www.akbizmag.com
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are they in the state of Alaska?” he says. “We also take note of their reputation and read Google and Yelp reviews.” Johnson adds that there are other not-so-obvious factors to take into account, including how many employees a company has and if they like their jobs, what the turnover rate is, and if they have a policy on continuous training. “When we visit the location, we pay attention to how we’re greeted,” he says. “We want to experience things the way a customer experiences them when they walk through the same door.” Great Alaskan Holidays works with a number of tour operators including K2 Aviation, Major Marine Tours, Copper Landing Fishing guides, AskMatt.com fishing guides, Rust’s Flying Service, Kenai Fjords tours, and more. “We sometimes work with more than one operator in the same industry, but we don’t want to dilute our offering with too many choices—we never work with more than two or three like-type businesses,” says Johnson. “We want to work with the best of the best. We also don’t want to overwhelm our customers with choices, so we do the legwork up front and pre-select companies that we believe will provide them with a great time.” Premier Alaska Tours is a tour operator that builds packages for a number of companies including cruise lines. In addition, they operate their own motorcoach and four glass-domed rail cars. Because they arrange so many different types of tours, they consider a wide range of criteria before adding partners into their mix. “For Royal Caribbean alone, we offer twelve different tour patterns when guests get off the ship,” explains President Josh Howes. “We may book rooms at Pikes Waterfront Lodge in Fairbanks, or rooms at the Grand Denali Lodge in Denali National Park, or at the Talkeetna Alaskan Lodge in Talkeetna. We also work with different restaurants and attractions to build a complete package. “It’s all about finding the right fit and price point,” he adds. “We serve a range of clients from junior high school students on a trip to Alaska looking for budget accommodations to couples looking for an ultra-luxury experience on a Crystal Cruise and the best lodges and personal guides—so we work with a healthy mix of different suppliers across the state.” 82 | February 2019
Howes adds that Premier’s safety team also vets operators to make sure that they are carrying the right insurance, follow the correct safety protocols, and have a crisis management plan in place.
A Mutually Beneficial Relationship While the ways in which tour operators partner together may be different, the end goal is to improve everyone’s bottom line. “Hotels and lodges want to work with us because we block a lot of rooms; we’ll take a certain number of rooms and continue to sell them over the course of the summer,” says Howes. “While not all companies want to do this—they may prefer to sell direct—we can be part of a healthy mix that includes other services like Expedia, who might sell four rooms a night all at different rates.” Premier also has access to locations and activities that other companies can’t offer, which makes for a unique guest experience. “We can provide private experiences at boutique lodges or VIP fishing at remote locations,” says Howes. “We also work with guides like Jimmie Hendricks in Denali who climbed the mountain and can offer guests an engaging, first-hand account of the experience. We provide similar presentations by Bush pilots and dog mushers.” Premier bills clients a lump sum for each package and pays all of its vendors directly. “This is especially helpful for smaller operators who find it a challenge to wait the 120 days that a larger company might take to get them payment,” says Howes. While every tourism company is looking to offer something unique, most of them are also quite loyal to partners who have proven themselves time and again. “At this point, there are a number of operators that we have long-term relationships with, and we’re not trying to shake things up every season,” says Clemens. “However, if we see that there is something new out there, we will reach out to see if there’s something that might round out our offerings even more.” While the revenue arrangement depends on the partner, Clemens says that for the most part, the railroad participates in reciprocal relationships in which each partner promotes and sells each other’s offerings. “We sell into their tours, and they promote our
Passengers on the Alaska Railroad pass by Bartlett Glacier. © Glenn Aronwits
trains,” she says, adding that most sales are commission-based. “While our core business is moving people around the state by train, we promote and sell into other local Alaska businesses,” she adds. “Part of our mission is to support economic development across the state because it’s good for our passengers and for our partners.” While Great Alaskan Holidays does not do bookings for its partners, they do promote the organizations on their website, by word-of-mouth, and through directing customers to these companies as preferred partners. “K2 is a good example of why our partners do their booking directly; we
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don’t know the ins and outs of their business and the specific information that they’ll want to know like how much a passenger weighs so that they can distribute weight balances appropriately,” says Johnson. Because Great Alaskan Holidays has been in business so long, its partner companies benefit from its reputation. “A lot of companies come to us because we’ve been serving tourists in Anchorage for thirty-four years, and we’re very wellknown,” says Johnson. “People trust us. We also have a large customer base, so we have long-reaching arms; we reach customers throughout the world.” Unlike other reciprocal relationships, www.akbizmag.com
Johnson says that the company rarely exchanges commissions. “We don’t get involved in that too much because, in my opinion, it can cloud the intent. If your top priority is the customer experience, and one company gives you 20 percent commission versus another company’s 10 percent commission, it might entice you to take the higher amount at the risk of customer satisfaction.” As a membership-based organization, ATIA provides its partners with numerous benefits, especially when trying to reach markets in the Lower 48 or overseas. “The travel trade is a very important partner to Alaska tourism, and part of our outreach is working with operators Alaska Business
in the Lower 48 and internationally to educate them on how to put together a package and how to connect with local operators in Alaska that provide tour products,” says Simpson. “We also attend trade shows, share leads with industry members, and pitch stories to top tier travel writers whom they otherwise might not have access to. “By packaging tours, operators are able to save on resources and reach a volume of customers that they otherwise wouldn’t reach,” she adds. “And from the consumer’s perspective, it’s a great way to take a trip—all wrapped up in a neat bow.” February 2019 | 83
EAT
SHOP
PLAY
STAY
MEET LOCAL MEATS
Fresh and Custom Protein S mall business owners around the state provide local meat options, whether through raising animals in Alaska or processing game meats and fish sourced in the Last Frontier. Below is a range of butchers, wholesalers, and game processors to help you get your meat fix.
Family-owned Indian Valley Meats, located in Indian, has been a custom processor of fish and exotic meats since 1976 and, according to the company, is “one of the largest processors of game meat in North America.” The cost for fish processing is by pound or by can, and options include smoked, vacuum packing, canned, jerky, or frozen. Processing game is also priced per pound and can include moose, buffalo, caribou, goat, sheep, deer, or pig. indianvalleymeats.com Glenn’s Wild Game Processing is a familyrun business that has been providing game and fish processing services since 1960. Located in Anchorage, it is known “for working with our ‘out of state’ hunting friends to make their hunt the best ever.” Prices are based on the incoming weight of clean meat; game can be turned into steaks, roasts, stew meat, ribs, hamburger, bacon, or sausages. glennswildgame.com Pioneer Meats has been processing local game into various products since 1995 and is located in Wasilla. Processing is priced by the pound, with incoming boneless meat costing less than bone-in meat. Processed products include teriyaki sticks, jalapeno sticks, Polish sausage, summer sausage, bratwurst, breakfast sausages, and chorizo. pioneermeatsofalaska.com 84 | February 2019
Delta Meat & Sausage is located in Delta Junction and processes game meats and humanely raises animals for slaughter. The company states, “Our Alaska grown meats are wholesome, healthy, and affordable.” Alaska grown beef is sold by the front quarter, hind quarter, half, or whole. Locally raised pork options include spring weaner pigs or one-half of pork. For big game processing, charges are based on incoming weight. deltameat.com Alaska Sausage and Seafood is located in Anchorage and states, “For fifty years Alaska Sausage Company has met the needs of local hunters and sportsmen,” and has maintained its dedication to excellent products. The company offers an array of Wild Alaska fish products: smoked whole side salmon, salmon pieces, smoked salmon lachs, salmon strips, and smoked halibut pieces. Gourmet sausages include sausage rings or links with reindeer meat, German bratwurst, teriyaki sticks, and more. alaskasausage.com Mat Valley Meats is “the only full service, oldfashioned meat market in Alaska’s Matanuska Valley,” according to the company. Mat Valley Meats specializes in Alaska grown beef and pork and offers custom game processing, domestic livestock processing, and fish processing and smoking. The
company offers freezer packs of beef, poultry, steak, and pork, as well as variety packs, such as the Jumbo Freezer Filler that includes about 190 pounds of meat. Mat Valley Meats will custom process game or fish, charging by the pound. mvmeat.com Bear Mountain Meats is a family-owned and –operated game processor and smokehouse located just outside Palmer. The company says, “We strive to give our customers the best quality product,” and guarantees customers will have their own game returned to them. Prices are based on incoming, bone-in weight. Bear Mountain Meats processes moose, buffalo, beef, elk, hog, caribou, sheep, bear, and goat. bearmountainmeats.com Alaska Meat Company sells beef “raised in Alaska for Alaskans.” The company owns and operates Sitkinak Ranch on Sitkinak Island, which has just occasional commercial fishing or hunting visitors, so the “cattle are able to freely roam the island year-round with abundant food and water.” Sitkinak cattle are not given vaccines, hormones, or other chemicals and are not branded and are minimally handled. Beef can be purchased as a whole side or as ground beef. alaskameat.com C&J Tender Meat is a family-owned and -operated butcher shop that has been
serving Anchorage and the Bush for more than forty years, taking “pride in the products we sell and our customer service.” Services include custom cutting and packing, repackaging and pricing for wholesale, holiday meat orders for companies or individuals, and fish packaging and freezing. Located in Anchorage, C&J Tender Meat provides products for wholesale and retail. cjtendermeat.com Mike’s Quality Meats has been in operation since 1989 and has been owned by the Giannulis family since 1991. The family-run company is located in Eagle River and is a retail store, meat processor, and wholesale meat provider. “We grind our ground beef fresh every day and you can see our butchers working to fill up our display cases any time you come in,” the company states. Mike’s Quality Meats carries a full line of meats and a selection of seasonings, rubs, marinades, and sauces. mikesqualitymeats.com Mr. Prime Beef is located in Anchorage and has been serving Alaskans since 1973. “We take pride in the products we offer and are proud to serve you,” the company states. Products available at Mr. Prime Beef include beef, pork, poultry, seafood, smoked meats, specialty meats, and seasonings and sauces. Specialty meats include buffalo, goat, lamb, and veal. Other miscellaneous products include cold cuts, frozen vegetables, cheese, and sides. mrprimebeef.com
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EAT
SHOP
PLAY
STAY
EVENTS CALENDAR
FAIRBANKS
FEB-MAR World Ice Art 14-31 Championships
This family-friendly event, produced by the World ICE Association, features interactive ice sculptures, multiple ice slides, and ice art exhibitions created by a multitude of artists, all at the Tanana Valley State Fairgrounds. www.icealaska.com/welcome/
ANCHORAGE
FEB APWA Gala: An 9 Evening of
Exploration Hosted by the Anchorage Petroleum Women’s Association, this gala raises funds for Alaska Resource Education and includes a reception, dinner, silent and live auctions, and live music performed by Chill Factor at the Anchorage Marriott Downtown from 6 p.m. to Midnight. ancpwa.org
FEB Iron Dog 13-23 Iron Dog is the longest, toughest snowmobile race in the
86 | February 2019
world, running from Big Lake to Nome and finishing on the Chena River in downtown Fairbanks. Race events include the Donlin Gold Safety Expo in the valley on February 15 and the Halfway Ceremonies in Nome on February 20. The Pro Class start is February 17 in Big Lake. irondog.org
FEB Anchorage 15-17 Boat Show Get a head start on summer boating and get out on the water this spring with the boat, equipment, and services needed to make the
most of the fishing, hunting, and sailing season. There will be a host of big boat builders, brokers, and dealers at the Dena’ina Center who can connect prospective owners with the boat of their dreams. anchorageboatshow.com
FEB Alaska 16 Marine Gala The Alaska SeaLife Center hosts the annual Alaska Marine Gala at the Dena’ina Center. This “black tie affair with an ocean blue flair” promises a night of food, fun, and fundraising. Cocktails and a silent auction kick
off the night, followed by dinner, the Alaska Ocean Leadership Awards, a live auction, and live music. alaskasealife.org
FEB-MAR Fur Rondy 22-3 Come join the iconic Alaska tradition that includes winter sports, native art and culture, and many other events that celebrate life and the frontier spirit of Alaska, all in Downtown Anchorage. furrondy.net
DENALI
FEB Denali Winterfest 22-24 Denali Winterfest offers loads of outdoor fun and educational events such as dog sledding, a 5k race, snowshoeing, hiking, park ranger programs, and more. This engaging, communityoriented festival starts off with a potluck and ends with a chili feed and cake walk—small town charm in the heart of Denali National Park at Mile 237 Parks Highway. nps.gov/ dena/planyourvisit/winterfest.htm
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FAIRBANKS
FEB Yukon Quest 2 Taking place every February, the Yukon Quest is a 1,000 mile international sled dog race between Whitehorse, Yukon, and Fairbanks. It takes from ten to sixteen days and has been run every year since 1984. yukonquest.com
community dances, an outhouse race, wedding expo, hockey tournament, Mr. Homer pageant, arts and crafts, and lots of food. This year’s carnival is celebrating the US Coast Guard’s 50th Anniversary in Homer with the theme “Coasting through Winter.” homeralaska.org
KETCHIKAN
FEB Fairbanks 21-24 Alternative
JAN-FEB Circus of 31-2 Curiosities
Improvisational Music Festival
This is the 33rd annual Wearable Art Show in Ketchikan, taking place at the Ted Ferry Civic Center. Artists in the Ketchikan community and beyond create original wearable wonders out of duct tape, foam, sequins, trash bags, wood, milk jugs—and lots of glue. The artwork comes alive modeled on the runway to music: fashion, sculpture, engineering, theatrics, dance, and music in one performance. ketchikanarts.org
This music festival, sponsored and organized by the Fairbanks Concert Association, takes place at venues throughout Fairbanks including Pioneer Park, Davis Concert Hall, and Unitarians Fellowship Hall. Performers includes Sirius Quartet, Seven)Suns, and other renowned artists. fairbanksconcert.org
HOMER
FEB Homer Winter 9 Carnival This is a weekend event of outdoor activities and fun for the whole family, including a parade,
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SITKA
FEB Sitka Jazz 7-9 Festival The Sitka Jazz Festival teaches music appreciation, skills, history,
artistic expression, and crosscultural understanding through jazz in a supportive environment. Visiting artists and local educators provide clinics in history, jazz theory, jazz improvisation, and a variety of individual instrument and section-specific workshops. Student performances are non-competitive, with an emphasis on cooperation and appreciation. sitkajazzfestival.com
VALDEZ
FEB Valdez Ice Fest 15-18 This winter festival features a variety of winter and climbing activities, including a welcome reception, workshops, clinics, dance party, and silent auction. valdezadventurealliance.com
WASILLA
FEB Ice Fishing 9 Derby for a Cure The Muscular Dystrophy Association of Alaska is hosting its 5th Annual Ice Fishing Derby for a Cure at the Palmer Elks Lodge from 8 a.m. to 2 p.m. There will be door prizes,
Alaska Business
fishing prizes for kids and adults, and activities for kids when they need a break from fishing. All funds raised in the derby help 130 Alaskan families fighting muscular dystrophy, ALS, and related muscle debilitating diseases. alaskavisit.com/event/mdaice-fishing-derby-for-a-cure/2317/
FEB-MAR The Savannah 15-3 Sipping Society In this delightful comedy, four unique Southern women, all needing to escape the sameness of their day-to-day routines, are drawn together by Fate—and an impromptu happy hour—and decide it’s high time to reclaim the enthusiasm for life they’ve lost through the years. Over the course of six months, these middle-aged women successfully bond and find the confidence to jumpstart their new lives. Together, they discover lasting friendships and a renewed determination to live in the moment—and realize it’s never too late to make new old friends. valleyperformingarts.org
February 2019 | 87
BUSINESS EVENTS FEBRUARY FEBRUARY 6-9
Anchorage AEYC Early Childhood Conference Hilton Anchorage: This year’s keynote speaker is Cate Heroman, author of Making & Tinkering with STEM, who will conduct workshops on Friday and Saturday. anchorageaeyc.org FEBRUARY 8-10
Alaska Pharmacists Association Convention & Tradeshow Sheraton Anchorage: The Alaska Pharmacists Association is a 501(c)(6) nonprofit organization serving pharmacists, technicians, associates, and students. alaskapharmacy.org FEBRUARY 11-15
Alaska Forum on the Environment Dena’ina Center, Anchorage: The Alaska Forum on the Environment is Alaska’s largest statewide gathering of environmental professionals including government agencies, nonprofit and for-profit businesses, community leaders, Alaskan youth, conservationists, biologists, and community elders. akforum.com FEBRUARY 13-15
Alaska Surveying & Mapping Conference Hilton Anchorage: The Alaska Surveying & Mapping Conference is a conglomeration of the many groups and societies that make up the professional mapping community throughout the state. aksmc.org FEBRUARY 16-19
ASTE Annual Conference Hotel Captain Cook, Anchorage: This is the educational technology conference of the Alaska Society 88 | February 2019
for Technology in Education. This year’s theme: Unplugged. aste.org FEBRUARY 25-27
Alaska Statewide Special Education Conference Hilton Anchorage: The Alaska Statewide Special Education Conference (ASSEC) is committed to providing high quality professional development relevant to the cultural, rural, and remote characteristics of Alaska. assec.org
FEBRUARY 28-MARCH 3
Alaska Library Association Annual Conference Juneau: AkLA is a nonprofit professional organization for the employees, volunteers, and advocates at academic, public, school, and special libraries of all sizes in Alaska, as well as library products and services vendors. akla.org MARCH
administrators, managers, healthcare executives, consultants, and vendors located throughout Alaska. akmgma.org APRIL 10-12
2019 CLSA Conference Hilton Anchorage: The theme of this year’s conference for the Clinical Laboratory Scientists of Alaska is “Lab Science the Central Piece of the Puzzle.” ascls-ak.org/ students/clsa-conference/
MARCH 7-8 FEBRUARY 26-28
TWS Alaska Chapter Annual Meeting Elizabeth Peratrovich Hall, Juneau: This is the annual meeting of the Alaska Chapter of The Wildlife Society and brings together wildlife researchers, managers, educators, students, and administrators. twsalaskameeting.com FEBRUARY 27-28
SWAMC Annual Conference T he Southwest Alaska Municipal Conference advocates for its region by “providing accurate research and information, developing regional consensus on issues, and conveying local and regional priorities to government agencies, the Southwest Alaska Legislative Delegation, and the Alaska Congressional Delegation.” swamc.org FEBRUARY 27-MARCH 2
Alaska Anthropological Association Annual Meeting UAF Northwest, Nome: The annual meeting includes workshops, an evening reception for information and registration, paper presentations, an awards banquet, and keynote speakers Dr. Igor Krupnik and Bernadette Yaayuk Alvanna-Stimpfle. alaskaanthropology.org
Alaska Forest Association Spring Meeting
APRIL 11-13
Baranof Hotel, Juneau: The Alaska Forest Association can be characterized as a high-profile industry trade association. Its members hold in common general business interests in the timber industry of Alaska. akforest.org
Wedgewood Resort, Fairbanks: This conference offers Category A+ or A continuing education credits. Credits are accepted by the ARRT and ARDMS for Ultrasound. aksrt.com
AKSRT Annual Conference
MAY MARCH 23-24
MAY 2-4
AKANA Annual Meeting
Alaska VFW State Convention
Embassy Suites, Anchorage: The annual meeting of the Alaska Association of Nurse Anesthetists is an opportunity for networking and education. alaskacrna.com
Anchorage: This annual convention includes a Joint Memorial Service, VFW Business Session, guest banquets, and other events. alaskavfw.org
MARCH 28-30
MAY 8-10
ComFish Alaska
Alaska Bar Convention
Kodiak: ComFish is the largest commercial fishing show in Alaska and the longest running fisheries trade show in the state, now in its 40th year, bringing together gear vendors, government agencies, and nonprofits involved in every aspect of commercial fishing. kodiakchamber.org/comfish APRIL APRIL 4-6
AKMGMA Annual Conference Alyeska Resort, Girdwood: The Alaska Medical Group Management Association is a professional organization comprised of group practice
Fairbanks: This conference provides opportunities to complete CLE requirements as well as an opening reception, several luncheons, and an awards reception and dinner. alaskabar.org MAY 13-16
AWWMA Statewide Conference Hotel Captain Cook, Anchorage: This conference in a venue for information, technology, expertise, curiosity, and thirst (for refreshment and knowledge) for the Alaska Water Wastewater Management Association. awwma.org
Alaska Business www.akbizmag.com
RIGHT MOVES United Way Veteran social worker and educator Sonya Hunte joined United Way of Anchorage as Vice President for Education Impact. Hunte will oversee United Way’s 90% Graduation Hunte by 2020 initiative. She earned a bachelor’s degree in sociology from Penn State University and a master’s in clinical social work from Boston College.
Stantec Tom Garrett, PE, joined Stantec as a Senior Civil Engineer in the firm’s transportation group in Anchorage. Garrett’s project design experience includes Garrett site development, road reconstruction and resurfacing, grading and drainage plans, retaining wall design, and utility main extensions. Garrett holds a bachelor’s degree from the University of Alaska Anchorage and is a member of the Institute of Transportation Engineers.
Ahtna Ahtna Environmental welcomes David Bennett to its team as Business Development Director. With a bachelor’s degree in civil/ Bennett environmental engineering from the University of Wisconsin-Madison and twenty-four years of experience, Bennett has a solid background understanding client operations, needs, planning, and project execution. His
professional strengths are opportunity identification and capture, client relationship building, teaming partner engagement, proposal and presentation preparation, and service line expansion. Morgan Bruno, PE, joins Ahtna Engineering Services as a Project Manager. Bruno is an environmental engineer with nine years of experience Bruno including preparation of remedial investigation/feasibility studyrelated documents; groundwater, surface water, soil, sediment, and vapor intrusion sampling; geoprobe, hollow stem auger, and sonic drilling oversight; among others. She holds a master’s degree in chemical engineering from Oregon State University and a bachelor’s degree in biological and agricultural engineering from the University of Idaho. Michael Selhay joins Ahtna Environmental as a Senior Construction Manager with more than eighteen years of construction and Selhay management experience leading all phases of construction planning and development, design coordination, and contract administration. Selhay earned a bachelor’s of science degree in construction management from Arizona State University and attended the Del E. Webb School of Construction. Also joining Ahtna Environmental is Nelson Crone as the firm’s GIS Specialist. Crone is skilled working with GIS data Crone for a variety of visual and computational purposes. He works with GPS equipment and has provided
operation, ArcCollector deployment and operation, ArcPad, and other various data collection techniques for field technicians. Crone has a master’s degree in GIS for development and environment from Clark.
Northrim Bank Northrim Bank welcomed Maureen Swartwood, AVP, Branch Manager, and promoted Christina Clayton, Assistant Branch Manager, and Darren Donahue, Branch Supervisor, as the leadership of the new Eastside Community Branch. Swartwood joins Northrim Bank with fifteen years of experience in the financial industry. She started as a teller and worked in various positions Swartwood to become a branch manager at Alaska USA Federal Credit Union. Clayton joined Northrim Bank in 2016 and has nearly five years of experience in the financial industry. Before joining Northrim, she had more than thirty years of experience in retail sales management. Clayton holds an occupational associates degree in retail management. Donahue joined Northrim Bank in 2012 as a teller.
CRW Lacie Stiewing joined CRW in 2018, bringing with her a BFA in ceramics-sculpture and a bachelor’s in speech communication from Stiewing Northern Arizona University, as well as a master’s in sculpture and computer art from the University of Alaska
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Cha
Fairbanks. Stiewing’s education and skills come together in her role as the firm’s resident Graphic Designer. Alma Abaza, PE, joined CRW as a Civil Staff Engineer and recently acquired her professional license. She has experience in Abaza site development and transportation and aviation projects. Hailing from Anchorage and a UAA graduate, she recently returned to Alaska after spending one-and-a-half years in Oregon. Audry Patrick joined CRW as a Communications Specialist in July of 2018 and has more than twenty years in public relations Patrick and communications. She graduated from Trinity University in San Antonio with a degree in communications and sociology. At CRW, she is primarily responsible for proposal efforts, social media, and technical writing. Becky Morris joined the CRW team in September 2018 as the Office and Human Resources Manager. She has more than eighteen years of experience working Morris in the engineering and consulting fields. Morris holds a bachelor’s degree in occupational education with a major in business administration from Wayland Baptist University. Dylan Baffrey, EIT, is a newly minted graduate of the University of Alaska Fairbanks. Baffrey formally joined CRW as a Civil Engineering EIT in Baffrey May, having spent the last few years as an intern. Kelly Yanoshek recently graduated from the University of Alaska Anchorage and joined CRW as a Civil Engineering
EIT. She worked as a student intern at CRW for several years, assisting with civil projects and the Alaska Bike and Pedestrian Resources Yanoshek website. Grace Wells joined CRW in the summer of 2018 as an Administrative Assistant. A recent graduate of the University of Alaska Fairbanks, Wells Wells majored in business administration with an emphasis on marketing and a minor in graphic design. Kyle Frazier recently returned to Alaska from Florida; Frazier joined CRW as an Accounting Assistant, bringing his seven years of Frazier accounting experience.
McDowell Group McDowell Group hired Kevin O’Neal-Smith as an Economic Analyst. He holds a bachelor’s degree in economics and business O’Neal-Smith administration from Fort Lewis College in Durango, Colorado. He also studied international economics and Southeast Asian trade at Chiang Mai University in Thailand.
Great Alaskan Holidays Great Alaskan Holidays promoted Corazon Gampon as a full-time member of the Great Alaskan Holidays Housekeeping and Laundry Technician team. With more Gampon than nine years of relative experience, Gampon now joins a long list of highly skilled housekeeping technicians who are
directly responsible for a major portion of the company’s tourism customers.
GCI GCI Business hired Aaron Helmericks as its Senior Director of Projects and Engineering. He brings a wide range of experience to Helmericks the position with more than fifteen years of oil and gas, telecom, and IT design and operations. Helmericks was most recently the CIO for Caelus Energy. He will be responsible for the continued growth of GCI’s oil, gas, and mining sectors.
Birch Horton Bittner & Cherot The law firm of Birch Horton Bittner & Cherot welcomes Shane C. Coffey. Coffey is returning to Birch Horton Bittner & Cherot after completing a clerkship Coffey with the Honorable Justice Peter J. Maassen, having first joined the firm in April 2017 after graduating early from the University of Oregon School of Law. Coffey’s practice primarily focuses on commercial litigation and municipal law.
Alaska Public Media Linda Wei accepted an offer to work as Alaska Public Media’s (AKPM) Chief Content Officer. Wei comes to AKPM after working more than Wei fifteen years in the public media sector. In her new role, she will be responsible for providing leadership, direction, and alignment for AKPM’s television, radio, and digital programming.
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Alaska Business
February 2019 | 91
INSIDE ALASKA BUSINESS UAF The University of Alaska Fairbanks has become the fourth university in the nation to earn the Quality Matters’ Online Learner Support Certification. Quality Matters is an international, US-based nonprofit organization that is recognized as a leader in quality assurance for online education. The Online Learner Support Certification recognizes programs that provide all the critical student and academic services needed for learner success and that use learner feedback to continuously improve those services. The Quality Matters review team was particularly impressed with the tech support available and the high satisfaction ratings it got from online students, the programs in place to help students succeed academically, and the variety of ways UAF accepts student feedback, among other things. This is the second program-level Quality Matters certification UAF has earned. Earlier in 2018, UAF’s Master of Education in Special Education program became the first online special education program in the nation to earn the Quality Matters’ Online Program Design Certification. uaf.edu
TelAlaska Anchorage-based telecommunications companies TelAlaska and Quintillion are bringing high speed broadband to residents of Nome for the first time. The new service will be delivered by TelAlaska over Quintillion’s subsea fiber optic cable system. Residents will have access to the internet at triple the currently available speeds and more than double the included data at competitive prices. telalaska.com | qexpressnet.com
Office of the Governor Former-Governor Bill Walker approved the release of $3.6 million (previously frozen by Walker’s signing of Administrative Order 271) so the EIS 92 | February 2019
process for the Ambler Mining District Access Project can be completed. No additional funding is anticipated to complete the EIS process for the project. gov.alaska.gov
Regulatory Commission of Alaska, a process that can take from six to nine months. The deal is expected to close in the fourth quarter of 2019 or early 2020. poweranchorage.com
Alaska Department of Labor and Workforce Development
GCI
The Department of Labor and Workforce Development is raising the per diem rate for covered workers on remote public construction projects for the first time in thirteen years. Eligible workers will receive $100 per day on remote projects instead of $75. The per diem rate applies to remote projects awarded by the state or by a local government. “Remote” is defined as an area inaccessible by road or more than sixty-five miles from the international airports in Juneau, Fairbanks, or Anchorage. The new rate applies on projects bid on or after April 11, 2019. labor.alaska.gov
AIDEA The Alaska Industrial Development and Export Authority (AIDEA) Board approved a dividend of $10,285,000 to the state general fund for Fiscal Year 2020. “We are very happy to announce this dividend to the State of Alaska, especially since it puts us over $400 million,” said AIDEA Board Chairman Dana Pruhs. “Our dividend is another great example of AIDEA’s strong contribution to Alaska’s economy.” aidea.org
Chugach The Anchorage Assembly authorized the sale of Municipal Light & Power (ML&P) to Chugach Electric Association. By a unanimous vote of 10 to 0, the sale of substantially all the assets of ML&P was approved in early December. The total transaction is valued at $1,009,600,000. Once all documents related to the sale are finalized and signed, the transaction needs approval from the
GCI launched 1 GIG internet service in Ft. Greely, the newest of sixteen communities in Alaska in which GCI provides 1 GIG speeds; with this new addition, 77 percent of Alaskans have access to 1 GIG speeds on GCI’s fiber optic network. gciliberty.com
Norwegian Cruise Line | Huna Totem Norwegian Cruise Line Holdings is partnering with Alaska Native-owned Huna Totem Corporation to develop a second cruise pier in Icy Strait Point, Huna Totem’s cruise ship destination in Hoonah. The pier is scheduled to be completed for the summer 2020 Alaska cruise season and will be built to accommodate Norwegian Cruise Line’s Breakaway Plus-class ships. In addition, the new pier will provide more cruise passengers with access to Icy Strait’s newly upgraded retail, restaurant, and shore excursion amenities. ncl.com | hunatotem.com
Elixir Alaska newcomer Elixir Petroleum acquired a 100 percent working interest in 35,423 acres adjacent to the Umiat oil field in September; in mid-December, the company was announced as the apparent high bidder on an additional 114,310 acres (ten leases) in NPR-A. According Elixir, “Securing additional leases in Alaska is yet another key milestone achieved during this very active period for the company.” Elixir is an oil and gas exploration company; in addition to the United States, it has operations in Mongolia and France. elixirpetroleum.com
Alaska Business www.akbizmag.com
AT A GLANCE What book is currently on your nightstand? 12 Rules for Life: An Antidote for Chaos by Jordan B. Peterson and Boomtown: The Fantastical Saga of Oklahoma City by Sam Anderson. I’m usually reading two books at a time. What movie do you recommend to everyone you know? In Harm’s Way— best John Wayne movie ever! What’s the first thing you do when you get home after a long day at work? Kiss my wife Nicole and ask her how her day was. If you couldn’t live in Alaska what’s your dream locale? Buffalo, Wyoming. If you could domesticate a wild animal what animal would it be? Mountain lion.
94 | February 2019
Alaska Business www.akbizmag.com
OFF THE CUFF
Bill Popp
B
ill Popp has spent more than forty years in both the Alaska private and public
sectors. As President and CEO of the Anchorage Economic Development Corporation (AEDC)
AB: What are you most superstitious about? Popp: Hanging on to good luck. I carry around a nine of clubs playing card that was a big winner for me years ago. Totally illogical, but it’s always with me. AB: What is your greatest extravagance? Popp: A really good, nicely tailored suit.
since 2007, he plans the strategic direction in marketing Anchorage and Alaska to companies and global industries considering Anchorage as a place in which to conduct business and assists
AB: What’s your best and worst attribute? Popp: Best: How much I care for my family. Worst: I’ve a tendency towards being a micromanager.
local businesses seeking to expand both within Anchorage and Alaska as well as Lower 48 and international markets. Popp is currently chair of the 49th State Angel Fund Business Advisory Committee. And he’s the latest Alaska Business Off the Cuff participant. Alaska Business: What do you do in your free time? Bill Popp: Gardening, reading, fishing, going to concerts, plays and movies, being with my wife and family, and building an occasional deck. AB: Is there a skill or talent you’ve always wanted to learn or are learning? Popp: I would love to learn woodworking. I am in awe of the beauty created by a true craftsman with wood. AB: What’s the most daring thing you’ve ever done? Popp: With two young kids at home, risking everything by leaving my first job after sixteen years and starting a retail business with my wife. AB: What’s your go to comfort food? Popp: A thick, chunky beef stew with fresh dinner rolls. AB: Other than your current career, if you were a kid today, what would your dream job be? Popp: Anything to do with NASA.
Images © Kerry Tasker
AB: What is your favorite way to get exercise? Popp: Yard work and hikes with my wife Nicole when she can talk me into going. AB: Dead or alive, who would you like to see perform live in concert. Popp: Prince. www.akbizmag.com
Alaska Business
February 2019 | 95
ALASKA TRENDS
Free Trade in the 49th State
T
hough many consider Alaska to literally be the Last Frontier, it is in fact a super hub of import and export activity. In 2017 Alaska exported nearly $5 billion in goods to destinations worldwide. Its top five export markets are China, Japan, Canada, Korea, and Germany. Its top five exports are seafood, minerals and ores, petroleum and coal products, transportation equipment, and oil and gas.
Free Trade Agreements The US currently has 14 free trade agreements in force with 20 countries. Alaska’s exports to US FTA partners totaled $1.6 billion in 2017.
Exports Sustain Hundreds of Alaska Businesses A total of 589 companies exported from Alaska locations in 2015.
418 Number of small and medium-sized (SME) goods exporters in Alaska in 2015
Since 2007, exports from Alaska have grown to several FTA markets
SMEs account for 71% of Alaska goods exporters
...and 38% of known Alaska goods export value
SME Exporters
Exports from SMEs
Top Dollar Growth, 2007-2017 (Millions of US Dollars)
In 2017, exports to FTA markets accounted for 33% of Alaska exports
Current FTA Partners
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$4.9 billion in Alaska Goods exports in 2017
Alaska’s Metropolitan Exports Anchorage is the 134th largest metro area reporting exports nationwide. In 2016 the Anchorage metro area brought in $1.2 billion in goods export value, resulting in a 51.7% share of state exports.
In 2016 the Fairbanks metro area brought in $3 million in goods export value, resulting in a 0.1% share of state exports.
Alaska Depends on World Markets Exports from Alaska helped contribute to the $2.33 trillion of US goods and services exports in 2017. Alaska’s Top 5 Export Markets (Millions of US Dollars)
Alaska’s Top 5 Export Categories (Millions of US Dollars)
ANS Crude Oil Production 12/30/2018
01/01/2014 05/01/2011 09/01/2008 01/01/2006
ANS Production barrel per day 529,883 Dec. 30, 2018
05/01/2003 09/01/2000
0
400,000
800,000
1,200,000
SOURCE: Alaska Department of Revenue Tax Division
ANS West Coast Crude Oil Prices 12/28/2018
09/01/2012
09/01/2008
ANS West Coast $ per barrel $54.50 Dec. 28, 2018
09/01/2004
09/01/2000 $0
$20
$40
$60
$80 $100 $120 $140 $160
SOURCE: Alaska Department of Revenue Tax Division
Statewide Employment Figures 10/1976—11/2018 Seasonally Adjusted 11/01/2018
Foreign Investment & Jobs in Alaska In 2015, foreignowned companies employed
Alaska Employment in Foreign-Owned Companies Number of Employees by Country of UBO
6.7% Share of Alaska private-industry employment at foreign-owned firms
17,400 Alaska workers
Source: Office of Trade and Economic Analysis, International Trade Administration, U.S. Department of Commerce.
Labor Force 356,014 Nov. 2018 Employment 333,543 Nov. 2018 Unemployment 6.3% Nov. 2018
01/01/2010 05/01/2004 09/01/1998 01/01/1993 05/01/1987 09/01/1981 01/01/1976 0
100,000
200,000
300,000
400,000
SOURCE: Alaska Department of Labor and Workforce Development, Research & Analysis Section
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www.penco.org February 2019 | 97
ADVERTISERS INDEX Alaska Communications...................... 3 acsalaska.com
Doyon Limited...................................... 57 doyon.com
Alaska Humanities Forum.................14 akhf.org
First National Bank Alaska................... 5 fnbalaska.com
Alaska Logistics....................................50 alaska-logistics.com
Great Originals Inc..............................59 greatoriginals.com
Alaska Mergers & Acquisitions LLC...21 akmergersandacquisitions.com
HDL Engineering Consultants, LLC...23 hdlalaska.com
Alaska Native Tribal Health Consortium........................................ 100 anthc.org
ICE Services.......................................... 46 iceservices.net
Alaska Soil Recycling..........................23 anchsand.com/divisions/soil-remediation Alaska USA Federal Credit Union....34 alaskausa.org ALSCO..................................................... 37 alsco.com Altman Rogers & Co...........................59 altrogco.com
Lynden Inc.............................................85 lynden.com Michael Baker Jr. Inc..........................25 mbakerintl.com MTA............................................................ 9 mta-telco.com New Horizons Telecom Inc.............. 31 nhtiusa.com
Society For Marketing Professional Services – Alaska.................................25 smpsalaska.org Solstice Alaska Consulting Inc.........26 solsticeak.com Span Alaska Transportation LLC......35 spanalaska.com Stantec....................................................20 stantec.com Stellar Designs Inc...............................87 stellar-designs.com T. Rowe Price.......................................... 7 uacollegesavings.com Technipress...........................................21 tpress.net The Plans Room...................................33 theplansroom.com Think Office...........................................33 thinkofficellc.com
American Marine / Penco......... 96, 97 amarinecorp.com
Nortech Environmental & Engineering...........................................43 nortechengr.com
Arctic Office Products........................47 arcticoffice.com
Northern Air Cargo..................... 90, 91 nac.aero
Tutka LLC................................................27 tutkallc.com
Bradison Management Group (BMG AES)..............................................26 bmgak.com
NU FLOW Alaska.................................. 51 nuflowalaska.com
UAA College of Engineering............19 uaa.alaska.edu/academics/college-of-engineering
Pacific Pile & Marine...........................93 pacificpile.com
Ugashik Traditional Village................38 ugashikvillage.com
Parker Smith & Feek............................89 psfinc.com
United Way of Anchorage................. 17 liveunitedanchorage.org
Pathfinder Aviation..............................53 pathfinderaviation.com
University of Washington..................73 foster.uw.edu
PDC Inc. Engineers.............................41 pdceng.com
WesternAircraft................................... 49 westair.com
PenAir......................................................86 penair.com
Westmark Hotels - HAP Alaska.......81 westmarkhotels.com
Construction Machinery Industrial (CMI).......................................................... 2 cmiak.com
Personnel Plus......................................87 perplus.com
World Trade Center Anchorage......15 wtca.org
Cornerstone Advisors.........................39 buildbeyond.com
PND Engineers Inc..............................29 pndengineers.com
Wostmann & Associates Inc............. 11 wostmann.com
Design Alaska........................................26 designalaska.com
R & M Consultants Inc.......................45 rmconsult.com
Calista Corp...........................................36 calistacorp.com Carlile Transportation Systems........99 carlile.biz Coffman Engineers.............................27 coffman.com Conrad-Houston Insurance Agency............................... 46 chialaska.com
98 | February 2019
Turnagain Marine Construction......24 turnagain.build
Alaska Business www.akbizmag.com
A l as ka Na t i ve Tri b al Hea l t h C on s ort i u m b u i l ds i m p rove me n t s i n A la s ka Na t i ve h ea l t h , wi t h . ..
520,000 Pounds of food shipped to rural Alaska communities
Tobacco treatment specialists trained since 2006
Community water and sanitation projects in rural Alaska
Speciality clinic visits, expanding access to care by 80 percent since 2011:
. . . al l s u p p o rt i n g o ur vi s i on t h a t Al a s ka Na t i ve pe opl e a re t h e h e a l t h i es t p eop l e i n t h e world.
anthc.org