Alaska Business March 2025

INVITING ARCTIC INVESTMENT

The Strategies behind develop ing Arctic Interests

MATTHEW HICKEY Associate Director Strategic Engagement Ted Stevens Center

Paul Larson,

INTERNET FROM SPACE

STAY CONNECTED WITH A BROADBAND PROVIDER YOU CAN REL Y ON.

10 40TH ANNIVERSARY

Unending Potential in the Mat-Su Alaska's growth locus

By Rindi White

30 ENGINEERING

CMMC Compliance

No, really, it’s actually happening

By Joel Recane

36 SMALL BUSINESS

Alaska SBDC’s AI Resource Program

Leading AI training, education, and adoption

By Tracy Barbour

46 INTERNATIONAL TRADE

Strong Subnational Ties

China remains Alaska’s largest international trading partner

By Greg Wolf

88 OIL & GAS

From Survival to Revival Hilcorp’s flood of innovation at Milne Point

By Rachael Kvapil

92 MINING

Let the Heroes Manage It Operations support for remote sites

By Terri Marshall

96 TELECOM & TECH

Ecommerce Expands

Physical businesses homestead the digital frontier

By Tracy Barbour

104 CONSTRUCTION

Not Just a Man’s World

Voices of women in construction

By Jamey Bradbury

FEATURES

22 ALASKA NATIVE

Quality of Life, Close to Home UIC’s focus on housing and food security By Vanessa Orr

QUICK READS

YOUR SOLUTION

Shape Your Tomorrow

SPECIAL SECTION: ARCTIC DEVELOPMENT

66 MAGNETIC NORTH

Alaska Native corporations attract Outside interest

By Tasha Anderson

70 NORTHWEST’S CLEAN ENERGY TRANSFORMATION

Building independence and sustainability

By Alexandra Kay

76 MATERIALS AND METHODS

Cold-weather construction and engineering innovations and adaptations

By Vanessa Orr

82 ANOTHER STEP IN THE ROAD

Superior Court vacates Santos’ KRU road permit

By Tasha Anderson

50 COLD CRUISING

Polar expeditions on the new frontier of tourism

By Amy Newman

58 THE TED STEVENS CENTER FOR ARCTIC SECURITY STUDIES

Soft power in the northern frontier

By Terri Marshall

ABOUT THE COVER

Days before this photoshoot took place, the editorial and production teams at Alaska Business were concerned that Anchorage would lack enough snow or ice to serve as an appropriate background for our Arctic cover. Fortunately, the warm spell ended, clouds moved in, and Anchorage was covered in a crisp, white blanket of snow. If there’s one truth about the Arctic, and Alaska, the lone US Arctic state: changes are afoot. Fortunately, there are those like Matthew Hickey, the associate director of strategic engagement for the Ted Stevens Center for Arctic Security Studies, who make a point of knowing what’s happening in the Arctic—and disseminating that valuable information.

Photography by Kerry Tasker

Hannah Smith | Ted Stevens Center for Arctic Security Studies

Andrew Peacock | Oceanwide Expeditions

FROM THE EDITOR

Celebrating our 40th anniversary of publishing is already paying dividends to the editorial and production departments. We are currently working on a digital archive of our full library of issues—but it isn’t quite done yet. This means conducting research in our historic issues requires us to pull an old magazine out of a stack to flip through its pages, an absolutely delightful way to gather information that provides opportunities for us to find what we need—and so many more interesting tidbits besides.

Our 40th anniversary highlight this month is written by the extraordinary and talented Rindi White, and the article looks at growth in the Mat-Su, echoing a similar theme published in 1985. While looking for the inspiration for White’s article, I stumbled across a profile of glaciologist Dick Ragle, “Ice Man of the Arctic,” published in November 1985, which feels particularly fitting for this issue that explores innovation and expertise in the Arctic.

Ragle was the in-demand expert at the time for constructing and maintaining floating ice roads in the Arctic, for example across the Beaufort Sea to connect Alaska’s north shore to gravel islands, such as Northstar. What’s a floating ice road? Similar to landbased counterparts, they facilitate the movement of gravel and equipment, only their foundation is sea ice.

According to the article: “The first step in building a floating ice road is developing an ample saltwater ice base. That’s done by drilling holes at intervals in the existing sheet of ice, augering water to the surface from beneath, flooding the existing surface, and allowing the fresh topping of water to freeze. Each flood is termed a ‘lift,’ and each lift is 1.5 to 2 inches thick. Once the saltwater base is completed—usually at least 5 feet thick—fresh water is spread over the top from water tanker trucks filled from fresh water lakes on shore.” Fresh water, Ragle explained, made for a harder and smoother surface.

He described his services as assisting with the design, construction, and monitoring, though he didn’t make any of the engineering decisions. “Sometimes I’m more like a crutch,” Ragle said. “They want me around in case something goes wrong. One time Bill Fowler [thenpresident of Alaska International Construction, a general contractor working with Shell to build the Seal and Tern gravel exploration islands] told me he wanted me on site because if any of the trucks went through the ice, I was to jump in after them.”

The charming and informative profile ended with this concluding thought from Ragle: “Building an ice road is just like building any other road… The only difference is that your materials are water and ice instead of gravel and asphalt. A good floating ice road is smooth as silk and a joy to behold, and there’s no environmental problem, either. To paraphrase General Douglas MacArthur, ‘They just melt away.’”

Tasha Anderson Managing Editor, Alaska Business

Volume 41, #3

EDITORIAL

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Unending Potential in the Mat-Su Alaska's growth locus

By Rindi White

“Ithink really, since the 1960s or even before that, it has just been growth, growth, growth, growth—with maybe a little lull in the '80s,” says Matanuska-Susitna Borough Planning Director Alex Strawn. “Generally speaking, growth is all that we know out here in the Valley, and we have no indication that it’s going to slow down anytime soon.”

The number of stories written over the past forty years featuring some version of “Mat-Su is Alaska’s FastestGrowing Community” could fill a book. However, with the abundance of buildable land, a strong economy, and proximity to Anchorage for higher-paying jobs, shopping, and more, the trend isn’t likely to stop.

Housing: Growing, but Slower

The growth for Mat-Su has come fast and held steady. Between Wasilla and the borough seat, Palmer, connector

roads are almost unrecognizable from forty years ago. Transformed from forest, occasional plots of farmland, and some scattered development, now the eleven-mile Palmer-Wasilla Highway—the primary connection between the two cities—is lined with commercial development, with more open space filling in each year.

Farther back from the highway, subdivisions line the route. Aerial comparisons between the ‘80s and now show a shocking density of development. While much of Alaska is experiencing a housing crunch with not enough new homes being built to keep up with demand, Mat-Su is continuing to build, build, build. In 2024, the borough saw 768 single-family homes constructed, the most since the 799 built in 2018.

“New construction houses right now are about 20 percent of the total market, and Mat-Su is building most of the new construction in the state. About 60 percent

of houses built in Alaska last year were built in Mat-Su. Those new houses, on a normal building lot, are running about $280 to $310 per square foot,” says Marty Van Diest, a longtime broker with Valley Market Real Estate.

The average one-acre lot with power and natural gas sells for between $80,000 and $100,000, he says. A June 1985 story about growth in Mat-Su, in this publication’s inaugural year, notes that prime one-acre lots were selling for $18,000 to $20,000 (or less than $60,000 today, adjusted for inflation).

An 1,800-square-foot house with three bedrooms and an average garage will sell for between $500,000 and $560,000, Van Diest says. An existing home, at about 1,600 square feet, has a median price of about $475,000. Comparatively, buyers forty years ago were looking to spend between $100,000 and $110,000 on a home (or less than $330,000 in today’s dollars).

WAYBACK MACHINE

Mat-Su's growth was the cover story for our August 2000 edition, which featured a photo of Palmer Mayor Henry Guinotte and Wasilla Mayor Sarah Palin.

While it’s true Mat-Su is building more homes than other Alaska communities, Van Diest says the housing market is moving much more slowly than in pre-pandemic times. Housing inventory started shrinking in 2019, he notes. Despite the lack of inventory, the market went a little crazy right after the COVID-19 pandemic, with buyers snatching up houses—sometimes unseen and often for more than the listed price—but total sales are currently lower than they have been in the last decade. Van Diest points to high mortgage interest rates as one cause.

“The only people who are selling are those who have to move,” he says.

In January, Van Diest counted 123 existing homes on the market, plus another 89 that are new construction or currently being built. “Even in 1985 there would have been two or three times that,” Van Diest notes. “There are less

than half the homes on the market now that there were in 2019.”

Compared to other communities, Mat-Su is still ahead of the pack. In the Municipality of Anchorage—from Girdwood to Eklutna—there are 184 houses on the market, including new construction and existing homes, less than the January total of 212 for MatSu. “That’s for three times as many people,” Van Diest points out.

Complementary Trends

Recently retired state economist Neal Fried, for years a regular presenter at Mat-Su meetings where he discussed the linked Anchorage and Mat-Su economies, says Mat-Su has been the locus for most of the state’s growth in recent decades.

“Between 2010 and 2022, the borough gained 22,757 residents as Anchorage lost a little more than 2,000 and the state as a whole grew by 26,325,” Fried wrote in a June 2023 snapshot of Mat-Su in Alaska Economic Trends

A July 2024 publication by the Alaska Department of Labor and Workforce Development’s Research and Analysis section, A laska Population Projections, 2023 to 2050 , notes that Mat-Su is helping keep Southcentral’s population

relatively flat, seeing growth while Anchorage’s population dips. The publication estimates Mat-Su’s July 2025 population at 115,481 and projects that it will reach 146,262 by July 2050. Anchorage’s July 2025 estimated population is 288,754 and is projected to shrink by 2050 to 260,093. The line of growth until then tracked mostly on a steady incline. In the 1980 census, Mat-Su had a population of just 17,816 residents; Anchorage had 174,431.

Still, population projections don’t always hold out. Mat-Su Borough Mayor Edna DeVries says she sometimes gives planners a hard time for their population optimism.

“In 1985 we anticipated that in a few years we would be over 100,000, and we just now crossed that,” she says.

But the change has been notable. In 1985, DeVries was a newly elected state senator. At that time the senate district for Mat-Su was dubbed the “donut district,” lumped in with South Anchorage, Whittier, Hope, Nikiski, Seward, Cordova, and Valdez.

“It was really challenging, in regard to trying to get things done for the borough,” DeVries says. Now, Mat-Su has three state senators and six house members.

A More Independent Economy

The business environment has also changed, according to the mayor.

“We didn’t have as many of the cottage industries that we have right now—you just see oodles of creativity,” DeVries says, adding that while one could get groceries and basics in Mat-Su in 1985, a trip to Anchorage was a regular necessity. Now, most of those stores have Valley locations.

Residents still travel out of Mat-Su for other reasons. Fried has often said Mat-Su’s chief export is its workforce. Around 41 percent of its workforce commutes to jobs outside the borough, mostly to Anchorage and the North Slope, where 2022 numbers peg average wages at $67,704 and $115,152 respectively, compared to an average wage in Mat-Su of $52,152.

Fried notes that the borough provides its own services more than it did forty years ago. The healthcare sector in Mat-Su grew by 74 percent in the last decade. Numerous companies have chosen Mat-Su as a base of operations from which they serve other parts of the state. He mentions Goose Creek Correctional Center, the state’s largest prison, as well as Cruz Construction, Inc., which performs oilfield, heavy civil, and infrastructure

The Wasilla Target store opened in 2008, the second Target in Alaska. The shopping center it anchors replaced Cottonwood Creek Mall, which housed fifty-four businesses and opened in 1984.

Patricia Morales | Alaska Business

construction work all over Alaska, and Talkeetna-based Denali Brewing, an employee-owned venture and one of the largest breweries in the state, with more than seventy employees and two related companies, Denali Spirits and Alaska Ciderworks, both also based in Talkeetna.

The economic change was beginning in earnest in 1984–1985, with the opening of two key locations. Cottonwood Creek Mall in Wasilla, anchored by Lamonts, Safeway, and Pay ‘n Save, was one. The mall had space for fifty-four businesses, making it the largest shopping center between Anchorage and Fairbanks. Pioneer Square Mall in Palmer, where the Carrs supermarket was the anchor tenant, was the second.

Both shopping centers have since been razed in favor of more modern shopping options. Wasilla welcomed Alaska’s second Target store in 2008, replacing Cottonwood Creek Mall in a development that is also home to Fly Trampoline Park, Famous Footwear, Michaels, GameStop, and others, with satellite buildings housing Walgreens, Wells Fargo, Taco Bell, Starbucks, and more. In Palmer, Pioneer Square was torn down in favor of a new Fred Meyer grocery store, after demand outgrew a smaller downtown Fred Meyer store, and Carrs-Safeway built a new store across the Palmer-Wasilla Highway from its previous spot.

People Have Needs

Other changes have accompanied the growing economy and population. In 1985, community leaders grappled with how to address rapidly growing schools to accommodate the neardoubling of school population from

4,384 in 1980 to 8,051 in 1985. They settled, briefly, on running double shifts at two of the district’s then twenty-two schools while awaiting construction of three new elementary schools, a junior high, Houston Junior/Senior High School, and additions to two more schools.

As of June 2024, 19,372 students were enrolled in Mat-Su schools,

making it the second-largest district in the state. The district now operates forty-nine schools, including MatSu Central School, a hybrid school where homeschooled students can take in-person classes such as science labs, which is under construction. Voters in November approved a $58 million bond to expand three existing charter schools: Academy Charter

“Generally speaking, growth is all that we know out here in the Valley, and we have no indication that it’s going to slow down anytime soon.”

Alex Strawn, Planning Director, Matan uska-Susitna Borough

The top image from 1985 shows acres of forest in the so-called "golden triangle" bordered by Wasilla-Fishhook Road on the right, Palmer-Fishhook Road on the left, and Palmer-Wasilla Highway on the bottom. Privately owned and publicly used Wolf Lake Airport, built in 1983, is at the top center. The bottom image, taken in 2024, shows woodland giving way to residential development.

Nick Srebernak | Matanuska-Susitna Borough GIS

School, Birchtree Charter School, and American Charter Academy.

All four projects will replace existing facilities, so the school count will not increase. But the community support for charter and non-traditional schools is notable. Fifteen of the forty-nine schools the district operates are charter or non-traditional. Mat-Su Borough Manager Mike Brown says c hoice is attractive.

“For folks who are considering moving here or building a business here, that might be an important consideration. When we look at it from a growth and economic standpoint, [a quality school system] is an important part of the consideration—and part of that is school choice,” Brown says.

Brown, at the helm of a borough that is showing strains from growth, says keeping up can be challenging.

Emergency medical services, for example, were once strictly oncall, but with the population has come a steady demand for services, along with increased training requirements. A 2021 Department of Emergency Services report reflects a full-time department of more than seventy people responding to medical emergencies, staffing between six and eight ambulances daily and going out on more than 11,000 calls each year. Around 300 additional personnel are involved in fire, rescue, and hazardous materials responses, as well as fleet maintenance and emergency management. About 60 percent of the total in both departments are paid, on-call responders who also hold jobs outside of emergency

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services. The blend of paid positions and paid, on-call responders varies for each community in which the responders are based.

“That’s part of that flexibility—you recognize that there’s no one-size fits all out here. There are different communities, and they don’t always need the same things,” Brown says.

“Our piece is just to adjust; not to come up with a cookie cutter and try to apply it everywhere.”

As borough officials often point out, their jurisdiction spans an area the size of West Virginia, only far more sparsely settled.

Power to the People

For many years, the Knik-Goose Bay Road was recognized as the fastest-growing area in the borough.

The unincorporated census area called Knik-Fairview boasts a greater population than the cities

of Palmer or Wasilla combined, with nearly 20,000 residents.

Lately, the spot with the fastest growth has shifted to what some call the “golden triangle,” bordered by Wasilla-Fishhook and Palmer-Fishhook roads, with the apex near Hatcher Pass.

“Where your population grows, it grows in different communities at different rates. Trying to keep up with the funding for that, it’s a different challenge,” Brown says.

Matanuska Electric Association (MEA) is planning a Fishhook to Pittman Transmission Line project that will build two new substations and a new transmission line between the communities of Fishhook and Meadow Lakes (population 5,048 and 7,570, respectively) to create redundancy and reliability in this fast-growing area. MEA will release the first phase

of the transmission line construction bid package this spring, with work from Sylvan Road to Church Road starting this summer. Construction of the new Meadow Lakes Substation is scheduled for 2026, and the Fishhook to Pittman power improvement project is expected to be operational by 2029. The first substation bid package should be posted in the spring, with transmission line construction expected to follow in the summer. The project is expected to wrap up with the second substation’s co nstruction in 2026.

While the early ‘80s saw big growth for MEA, nearly doubling the co-op’s consumer base between 1979 and 1985, the growth has continued. From 23,629 consumers in 1984 to 57,010 members and just more than 72,000 meters serving MatSu and Eagle River/Chugiak today,

National sandwich chain Jersey Mike's Subs chose Wasilla as the site of its first Alaska location in 2023, adding to a growing list of national brands cropping up in the city.

Patricia Morales | Alaska Business

the utility sees more than 1,000 new connections each year.

It has also gone from a power buyer to a power provider. In May 2015 the cooperative flipped the switch on its 171-MW Eklutna Generation Station, a $324 million project that it says is one of the most efficient thermal generation power plants in the Railbelt. Now it regularly sells power to neighboring electrical utilities.

Veins of the Valley

Where there are houses, there are drivers who need roads. Because most Mat-Su development has been piecemeal, with smaller subdivisions tucked beside each other and without a requirement for every developer to contribute to a fund for road development, collector and arterial roads in growth areas have seen increasing traffic with no clear way to pay for upgrades.

The method the borough has used, Strawn says, is road bonds. Mat-Su voters passed several transportation improvement packages in recent years, including a $76 million package in 2023 and another $33.8 mill ion in package 2024.

“We’ve been trying to find a way to get traffic out of the Fishhook triangle,” Strawn says. Voters approved one new access point, moving traffic from bustling collector Engstrom Road to Tex-Al Drive and then to arterial PalmerFishhook Road. But it’s not a perfect solution; it would require drivers to travel north to go south to Palmer, Wasilla, or Anchorage, which some drivers balk at.

A public-private partnership might provide the key. The 2021 transportation improvement package included a project to connect Engstrom Road to Trunk Road, but a plan to create a subdivision there interfered. The project, the fifteenlot Phase 7 of Hall Quality Homes’ Stone Creek Subdivision, with 186 lots so far, stood in the way. But the borough worked with the developer, who reconfigured the development to allow for Trunk Road access. The borough purchased right-ofway to compensate, allowing both projects to move forward.

“Stone Creek is a good example of where the public and private were

able to get together and create solutions,” Strawn says.

But the overriding problem still exists; the borough has used its planning powers lightly, often resulting in locked-in subdivisions that lead to overstressed roads, poorly planned intersections, and costly problems for future residents to solve. For example, the busy Midtown Estates and Golden Hills Estates subdivisions abut PalmerWasilla Highway, but the access streets don’t line up. Drivers encounter two traffic signals, one serving each subdivision, within 200 feet. Were the subdivisions developed today, the access streets would have had to line

up, Strawn says, but it wasn’t the case during their development.

Borough leaders recently revamped subdivision regulations. Fifty-foot road rights-of-way, enough space for the paved route and not much more, was the previous standard. New regulations call for a sixty-foot right-of-way, enough for roads, shoulders, and drainage ditches. Not sidewalks, though; space for those will not be required in new subdivisions yet.

Strawn says, “It’s an interesting experiment that we are participating in right now. We’re doing it differently than most places in the nation. In some ways it’s wonderful, the

Seward-Meridian Parkway is home to several healthcare providers, including Maple Springs of Wasilla, a senior assisted living, skilled nursing, and hospice facility, as well as a surgical center and several specialists. Commercial construction, a fire station, and an elementary school also dot the area. After years of backed-up traffic, the parkway is being expanded to handle the growth.

Patricia Morales | Alaska Business

freedom and property rights that people have here in the borough.”

Fun at Its Peak

While the Mat-Su Convention and Visitors Bureau didn’t have a building in 1985—it formed in 1986—the Valley’s nonprofit tourism promoter is now going strong. Executive Director Casey Ressler, who grew up in Mat-Su, is looking forward to having an office in the new, $6.5 million Gateway Visitor Center that just broke ground. It’s due to open in March 2026.

Looking back at the ‘80s, Ressler says the economic draw of tourism wasn’t in the forefront of people’s minds. “Nature was always here, but I think we didn’t really invest in it,” he says.

Now, Mat-Su has an abundance of recreational opportunities, from

steady development to improve Hatcher Pass State Recreation Area and improvements to popular fishing spots along the Parks Highway to borough-managed facilities such as Government Peak Recreation Area, Talkeetna Lakes Ski Trails, and the Haessler-Norris trail system in Willow.

The newest addition is Settlers Bay Coastal Park, a trail system that saw its first trail built in 2019.

That project, says Mat-Su Borough Community Development Director Jillian Morrissey, illustrates how MatSu does recreational development.

The 295-acre park was purchased by Great Land Trust, a Southcentral Alaska-based conservation-oriented nonprofit that aims to preserve land for community benefit. Great Land Trust donated the land to the borough as a conservation easement.

Trail development and maintenance is happening through borough trail funding grants, Morrissey says.

In 2024, the Mat-Su Assembly approved about $200,000 in winter trail grooming grants, distributed to more than a dozen nonprofit groups that groom and improve around 1,000 miles of trails from Lazy Mountain in Palmer to Skwentna and Denali State Park.

“Partnerships with organizations are critical to the maintenance and development of our parks and trails,” Morrissey says.

Settlers Bay Coastal Park is unique because, while people often talk about Mat-Su having glaciers or access to mountains, the park in the Knik-Fairview area celebrates something different. “We’re coastal! There are spots here where you can

go to see beluga and the waterfowl. So many people forget that that’s also us, and this really rounds out those opportunities,” she says.

Adds Brown, “Years ago, people would not have seen much of a need out there for that type of facility, but now it makes perfect sense.”

There’s also, at long last, a downhill ski area in Hatcher Pass. The ski area has been a dream for more than forty years. The MatSu Borough tried several times to attract national and international development firms to build one, and some would-be builders presented dazzling plans for ski resorts with hotels, shopping, and restaurants. But those plans ultimately fizzled when the numbers didn’t add up. Finally, the nonprofit Hatcher Alpine Xperience incorporated in 2015 and began work on a multi-phased plan to build a regional alpine recreation facility—Skeetawk, a name derived from the Dena’ina word “Shk’ituk’t” which means “where we slide down”—on leased Borough land. It opened in 2020.

The recreational opportunities translate to dollars; exactly how much, though, is hard to calculate. Without a border or airport, Ressler says, it’s difficult to gauge just how much visitor traffic Mat-Su sees on a year-by-year basis. Zartico,

a business intelligence platform that pulls data from credit card companies (spend $10 in Mat-Su with a credit card linked to an Anchorage zip code, for example, and it’s tracked) shows about 21 percent of all spending in Mat-Su came from zip codes outside borough boundaries, whether from elsewhere in Alaska or out of state.

Host with the Most

The most visible evidence of how recreational development has helped Mat-Su was last year’s Arctic Winter Games, which the Valley hosted.

About 2,100 athletes, coaches, and support staff attended the games from elsewhere in Alaska, Canada, Greenland, and the Sápmi region, which stretches across Norway, Sweden, Finland, and Russia. More than 2,000 volunteers worked to make the event a success. The event could not have been held in Mat-Su forty years ago.

Although athletes were housed at the athlete villages, the Valley saw a distinct bump in Airbnb and Vrbo rentals—the numbers are tracked through AirDNA, a software platform that tracks short-term rentals, Ressler says. In March 2024, when the Games occurred, there were 8,569 room nights booked, as compared to March 2023, when 6,771 room nights

were booked. That’s up more than 25 percent, he notes.

Revenue generated by shortterm rentals also jumped, from $1.25 million in March 2023 to $1.7 million in March 2024, a 36 percent jump, Ressler says.

“We used schools as athlete villages and staging areas. The main feeding area was Colony High School, and it didn’t exist yet [in 1985]—likewise Colony Middle School,” notes Morrissey. Neither did Skeetawk, the Government Peak Recreation Area, or the MTA Events Center, which is now twenty years old.

The Games did rely on assistance from Eagle River and Anchorage for a few events. Lacking enough sheets of ice, the Harry J. McDonald Memorial Center in Eagle River hosted speed skating and figure skating competitions. Kincaid Park hosted the biathlon. But Mat-Su shouldered most of the hosting duties. Almost as amazing, Brown notes, was monumental volunteer involvement.

“Having an international multicultural sporting event really shows how all of that works together,” Brown says. “I was astonished at the amount of community support in the number of volunteers. You saw all three communities working together. It was a great illustration of what community looks like.”

Quality of Life, Close to Home

UIC’s focus on housing and food security

By Vanessa Orr

Is sues that typically trouble most Alaskans are multiplied in the state’s more remote villages. Up-to-date infrastructure, access to housing, and affordable groceries cannot be simply taken for granted.

Residents of the North Slope Borough have these obstacles against them, but they also have allies on their side. The borough is home to the state’s richest homegrown business, Arctic Slope Regional Corporation. The eight village corporations in the region are also forces to be reckoned with, particularly in the Slope’s largest and northernmost community. Ukpeaġvik Iñupiat Corporation (UIC) is taking steps to make life easier for its shareholders as well as other Slope residents.

“With 4,400 employees nationwide and 3,000 employees in the Lower 48, UIC does quite a bit of work out of state, though that is still for the benefit of our shareholders and our home,” says UIC Chief Administrative Officer and Deputy General Counsel Richard Camilleri.

Above, the view from Browerville, the northern section of Utqiaġvik, with the Stuaqpaq supermarket in the lower left. Below, a reverse angle looking north from the town center. Protected wetlands are off to the right of the photo.

Ukpeaġvik Iñupiat Corporation

The largest city in the North Slope Borough, Utqiaġvik is home to 4,622 residents, of which 63 percent are Iñupiat. Although it is a modern community, subsistence hunting, fishing, and whaling are still important to the local economy, and many residents who work full- or part-time continue to hunt and fish for much of their food.

In 2023, UIC began expanding its shareholder base, accepting the children of original shareholders. Starting this year, grandchildren of original descendants became eligible to enroll. Over the past two years, this has added 1,100 Class B shareholders. UIC currently serves 3,800 shareholders with both Class A and Class B shares.

According to Camilleri, the corporation’s overall focus is on growth, sustainable development, and how those connect to community wellbeing while still tracking with Iñupiat values. To this end, UIC is focusing this year on housing and food security.

Affordable, Accessible Housing

“Housing is not only a regional issue, but an issue for the entirety of the state,” says Camilleri. “It’s even more of a challenge in rural Alaska.”

As the majority landowner in Utqiaġvik, UIC has prioritized land sales to shareholders in an effort to make home ownership more accessible. Since 2023, the corporation has sold fifteen residential lots to shareholders and facilitated five lot trades, enabling shareholders with land parcels outside of the current road

“We’re sending our young people out to get trained, earn degrees, and advance their educations, and we want them to come back home. But it’s hard to come back without a place to stay.”

Chief Administrative Officer and Deputy General Counsel, Ukpeaġvik Iñupiat

Richard Camilleri

Corporation

infrastructure to trade their land for land connected to the road system and municipal infrastructure.

“In 2024, we reviewed our land use policy which governs how we own the land—basically our treatment of the land from A to Z—through the lens of wanting to support our shareholders to achieve the goal of home ownership,” explains Camilleri. “We looked at how we could make the process easier when accessing a lot, buying a lot, and building on it.”

In addition, UIC’s Lands and Real Estate department sold four existing residential units to shareholders in 2024, and two more house sales are underway. These homes, which were owned and maintained by UIC, were formerly rented to shareholders but are now being transitioned to individual ownership.

To make lots more accessible, UIC’s Arctic Operations and Development company created a program

"The [wetlands mitigation bank] is very close to our community and is used for subsistence, and through the mitigation credits we can monetize the land without developing it."

Richard Camilleri Chief Administrative Officer and De puty General Counsel

Ukpeaġvik Iñupiat Corporation

offering discounted gravel sales to shareholders. The gravel for house and driveway construction has been a

major success; in 2024, UIC sold 4,500 cubic yards of gravel—more than $90,000 worth—at a discounted price to shareholders. UIC also made nearly 500 pilings available to shareholders for building above the tundra, and more pilings are available.

The company is considering a program to provide more affordable access to augering or drilling equipment and services to place the pilings, as well as ways to get affordable lumber and building materials into Utqiaġvik, which would make it more accessible to outlying villages as well.

UIC recently participated in a housing summit in Anchorage, during which UIC President and CEO Dr. Pearl K. Brower spoke, as well as leaders of other UIC subsidiaries, including UIC Construction and Bowhead Transport.

“The summit, which was hosted by the North Slope Borough, included

Ukpeaġvik Iñupiat Corporation President and CEO Dr. Pearl K. Brower (second from right) and staff at the 2025 North Slope Borough Housing Summit.

Ukpeaġvik Iñupiat Corporation

everyone who could potentially play a role in the buying, selling, and constructing of a home, including financers, banks, lenders, realtors, construction companies, and cargo companies,” explains Camilleri. “We talked about housing challenges, construction costs, and shortage issues—challenges that are similar to those of our brother and sister companies in villages across the state.”

These challenges include being located off the road system, a limited construction season, the high costs of construction, and the availability of contractors—including electricians, plumbers, and more— who most often don’t live in these remote communities and have to be flown to work.

“When you think in terms of labor and resources, it’s difficult in Alaska to recruit and fill positions because people are often competing with each other to take the top talent. There are a lot of job openings and a limited work pool applying to them, which is compounded even more when it gets down to the village level,” says Camilleri.

Utqiaġvik and other Slope communities also struggle with the aging of the current housing stock.

“Families are often faced with having multiple generations in the same house because of our limited housing stock,” says Camilleri. “We’re sending our young people out to get trained, earn degrees, and advance their educations, and we want them to come back home. But it’s hard to come back without a place to stay.”

He adds, “When a young couple’s only option is to move back in

with mom and dad, it makes it difficult to achieve the goals that we want: to have a successful and thriving community.”

Mitigation Credits

In 2024, UIC established the Charles Etok Edwardsen Jr. Wetlands Mitigation Bank (CEEMB) near Utqiaġvik, in partnership with Ecosystem Investment Partners.

The CEEMB is the first wetlands mitigation bank on the North Slope, and UIC now offers more than 1,000 mitigation credits to developers in need of compensatory mitigation planning during permitting. The UIC Mitigation Bank will preserve in perpetuity almost 2,300 acres via a conservation easement within the borders of the protected Barrow Environmental Observatory.

“The CEEMB is very close to our community and is used for

“All we can do is plan ahead to the best of our ability, and that includes putting time and effort into keeping track of what is happening where, and how to plan for it.”

Richard Camilleri Chief Administrative Officer and De puty General Counsel Ukpeaġvik Iñupiat Corporation

subsistence, and through the mitigation credits we can monetize the land without developing it,” says Camilleri. “The revenue from

the program goes to UIC through the board of directors’ designation, and those funds will be spent on support services that benefit our shareholders, inclusive of our work with housing.”

Space for Food Security

UIC’s focus on food security manifested this winter in a partnership with Alaska Commercial Company and Kannika’s Market.

Utqiaġvik anticipated a surge of visitors during one week in February for the Alaska Eskimo Whaling Commission’s annual Whaling Captains’ Convention and the North Slope Borough-hosted Kivgiq celebration, which brings hundreds of visitors and often includes Iñupiat groups from as far away as Canada and Greenland. All those guests need to eat, but Utqiaġvik’s supermarkets only have so much shelf space.

Ukpeaġvik Iñupiat Corporation board and staff serving at the 2024 Elders Thanksgiving Luncheon in Utqiaġvik.

Ukpeaġvik Iñupiat Corporation

Thus, UIC donated warm storage space so that Alaska Commercial Company could expedite delivery of 75,000 additional pounds of groceries, including 55,000 pounds of dry goods, 10,000 pounds of chilled food, and 10,000 pounds of frozen food. Kannika’s Market was able to handle an additional twenty pallets of supplies.

In addition to short-term support to local grocers, UIC is also looking toward long-term solutions that might include working with local grocers on the operation of each store and inventorying the retail space available that could allow grocers to provide more goods and services—not just to help the corporation’s shareholders but the whole community.

Deep Focus

Camilleri says that UIC will continue to do everything in its power to put shareholders first and to support them at home. More than half of its shareholders are in Utqiaġvik and other North Slope communities.

“All we can do is plan ahead to the best of our ability, and that includes putting time and effort into keeping track of what is happening where, and how to plan for it,” he says. Camilleri cites the example of tariffs against Canadian goods, which could increase the cost of lumber and other construction materials, but then they were paused the day he heard about them.

He adds, “There are a lot of moving parts, and it requires us to stay informed and up to date so we can plan ahead as much as possible.”

CMMC Compliance

No, really, it’s actually happening

By Joel Recane

Th e US Department of Defense (DOD) developed the The Cybersecurity Maturity Model Certification (CMMC) to enhance cybersecurity across its Defense Industrial Base (DIB). It was introduced in 2019 as a response to growing cyber threats and breaches targeting contractors handling sensitive DOD information, particularly Controlled Unclassified Information (CUI). At its core, CMMC aims to safeguard the DIB from threats while ensuring contractors meet cybersecurity standards before securing DOD contracts. Full implementation has begun, with the final phases expected to be implemented as soon as this spring.

With the final stages of implementation on the horizon, organizations need to act now to avoid falling behind the competition that is also vying for CMMC contracts. Navigating the CMMC

framework requires a comprehensive understanding of its requirements, scope, and objectives. Organizations must assess their current security posture and align it with the framework’s standards, ensuring that policies, procedures, and controls are effectively implemented and maintained. This process often involves cross-departmental collaboration, risk assessments, and ongoing monitoring to address potential gaps. Clear documentation and evidence of compliance are essential for audits and certification processes. In short, it takes a significant amount of time, so acting now to meet these regulatory requirements is key to staying competitive in this space.

Should I Care About CMMC?

The CMMC framework applies to all organizations in the DOD supply chain. This includes prime contractors, subcontractors, or any

organizations that handle CUI or federal contract information (FCI). There are a variety of security levels of increasing strictness applied to organizations depending on their access to controlled data.

All DIB contractors must meet at least CMMC Level 1 for basic cyber hygiene if they handle FCI. Contractors handling CUI typically need to comply with CMMC Level 2, depending on contract requirements. While rare, CMMC Level 3 (or Expert Level) is required for contractors who meet the highest levels of cybersecurity controls; it’s focused on safeguarding information against what are known as advanced persistent threats.

If you currently do business within the DIB or are planning to compete for DOD contracts, then you should take this as your warning to initiate your CMMC preparation now. Reviewing these controls does not happen overnight. Whether you

plan to perform a self-assessment or contract out, the full process can take months and will likely require remediation upon completion prior to undergoing a third-party audit. Time wasted means that other bidders who have already completed their CMMC readiness will be more competitive in the DOD contracting space.

Even if you don’t do business with the DOD or consider yourself a part of the DIB, now is a good time to start thinking about cybersecurity and compliance. CMMC is part of a broader trend within the federal government toward cybersecurity requirements in its contracting base. Maintaining this level of compliance or having someone review your cybersecurity posture now means that you will be ahead of the game if similar frameworks are ever required for other engagements with the federal government.

Prepare for Assessment

The most important component of CMMC compliance is scoping; an accurate and tight scope is essential. Inaccurate scoping in a CMMC assessment can lead to significant operational, financial, and contractual consequences for an organization. If the scope is too narrow or incomplete, critical systems, assets, or processes may be left unassessed, resulting in a failure to meet the required CMMC level. This can lead to certification denial, delaying, or preventing eligibility for DOD contracts, which could severely impact revenue and reputation. Conversely, an overly broad scope may lead to unnecessary assessments, requiring additional time, resources, and money

to evaluate systems or processes that are not relevant to the actual requirements. Such mismanagement wastes valuable resources and can inflate costs unnecessarily.

When the scope excludes key systems or processes that handle CUI or FCI, the organization risks noncompliance with contractual terms. This non-compliance could result in

penalties, contract termination, or the loss of future DOD opportunities. Additionally, an improperly scoped assessment increases the likelihood of overlooking critical vulnerabilities, which could lead to data breaches or unauthorized access to sensitive information. Such incidents can damage trust, attract regulatory scrutiny, and incur financial

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penalties. An incorrect scope also often necessitates reassessments, further increasing costs, delaying contract awards, and creating administrative burdens. Moreover, repeated errors in managing the assessment process can harm the organization’s reputation, signaling poor oversight to both the DOD and other stakeholders.

To prevent these issues, organizations must conduct a thorough scoping exercise before the assessment, ensuring that all relevant systems, assets, and processes that handle sensitive information are identified. Engaging experienced consultants or assessors to validate the scope and documenting decisions to align with DOD and CMMC guidelines can help avoid costly errors. Proper scoping is essential for successful certification, protecting the organization’s compliance status, and maintaining trust within the DOD supply chain.

Optimizing Your CMMC Compliance

Once you determine that you are required to meet CMMC compliance, how do you complete your assessment? Should you keep it in-house, leveraging your existing resources, or bring in outside expertise through a contractor? There is no right answer; each situation depends on your team’s expertise, the complexity of your needs, and how quickly you need to gain compliance.

Start by evaluating your in-house expertise. Do you already have a team with deep knowledge of cybersecurity frameworks like NIST SP 800-171 and experience with compliance audits?

CMMC is part of a broader trend within the federal government toward cybersecurity requirements in its contracting base.

Maintaining this level of compliance or having someone review your cybersecurity posture now means that you will be ahead of the game.

If so, you may have the foundation to manage CMMC internally. This is particularly true if your needs are straightforward—say, achieving Level 1 compliance, which involves basic cyber hygiene practices for handling FCI. But if your staff is unfamiliar with CMMC’s nuances or has little experience managing compliance for sensitive information like CUI, you are likely setting yourself up for complications. Contractors often bring not just expertise but also tools and streamlined processes that can help you avoid costly mistakes.

Resource availability is another critical consideration. Even if your team has the necessary knowledge, do they have the time to focus on

compliance without neglecting other responsibilities? Managing CMMC compliance requires a detailed assessment of your systems, policies, and processes, followed by implementing controls, documenting them, and preparing for an assessment. In addition, CMMC is not one-and-done; it must be continually monitored and audited every three years, with an annual attestation of compliance from a senior member of your company. This level of effort can be a burden for already stretched IT or compliance teams. Contractors, on the other hand, can take on the heavy lifting, allowing your internal staff to stay focused on their core responsibilities.

The complexity of your compliance needs plays a significant role in this decision. If your organization requires compliance with Level 2 or Level 3, where robust protections against advanced persistent threats are required, the stakes are higher. These levels involve extensive security controls, mature processes, and often government-led audits, making outside expertise invaluable. For simpler compliance needs, managing in-house may be more realistic.

Of course, there’s the question of cost. Managing compliance internally might seem like the cheaper option, but it’s not without its own expenses. Training your team, purchasing new tools, and reallocating staff can add up. Contractors, while requiring upfront investment, bring efficiency and a higher likelihood of success, potentially saving you the costs of failed assessments or the need for reassessments. If you’re working under a tight deadline to secure a

DOD contract, a contractor’s ability to accelerate the process might outweigh the initial cost.

A note on contractors: not all contractors are created equal. No one can sell you an easy button for CMMC. No one can get you compliant in two weeks. We recommend reviewing the Cyber AB (the official accreditation body for CMMC) marketplace for registered organizations. They have full lists of certified third-party assessment organizations, registered practitioner organizations, CMMC certified professionals, and CMMC certified assessors, organized by categories like region or service scope. Speaking of region, finding a local servicer may save money (Level 2 certification will require boots-onthe-ground assessing), and they may also understand your needs and environment more readily.

Ultimately, this decision comes down to weighing the risks and resources. If you have the time, knowledge, and staff to manage compliance effectively, an in-house approach might be a good fit. But if your organization is facing tight timelines, complex requirements, or limited internal expertise, hiring a contractor could be the key to a smoother, faster path to certification. For many organizations, a hybrid approach works well—handling simpler aspects internally while outsourcing the more complex tasks to a trusted expert.

Documenting Policies and Procedures

One of the most daunting parts of a cybersecurity and compliance project like CMMC is the amount of

documentation required, particularly for Levels 2 and 3. The primary document that is required by CMMC is a System Security Plan (SSP), which is considered your security road map. An SSP describes your assessment scope at a high level and has a section for each control describing your implementation details. The idea behind an SSP is

that it defines your information security program, and anyone who reads it can understand what you’re doing and how. A typical SSP can easily approach 100 pages, even for a small organization.

While an SSP is the only document explicitly required for CMMC, passing or even initializing an assessment will require many more policies and

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procedures. To demonstrate that you meet the requirements of CMMC, a typical organization must have other policies addressing security domains such as, but not limited to, access control, configuration management, and change management as well as the procedures to back them up.

Consider this example. A policy requirement is derived from a particular control, e.g., “system access is limited to authorized users.” The term “authorized” further raises the questions, “Who is an authorized user? How do they get authorized? By whom are they authorized?” This list of sub-queries can be lengthy and indeterminate, but these considerations must be dealt with in your policies and procedures.

Prior to a full assessment, assessors must review your documentation to ensure that you have a well-defined information security program. This step ensures that you have enough information available for an assessment to take place. At the end of this review, the assessor will determine whether the assessment should proceed as planned, be rescheduled, or, in the worst case, cancelled. Poorly organized and incomplete documentation is the greatest risk to having your assessment postponed or canceled. This, coupled with the large volume of companies trying to get assessed and the currently low number of assessors, can mean a significant delay in your certification if items are not in order. Careful and meticulous assessment preparation might seem like a lift, but it is well worth the ti me to stay on track.

The goal is for CMMC to not only assess subcontractors but to also replace cybersecurity requirements for other government entities… In other words, just because CMMC does not apply to you today does not mean that it (or something similar) will not be required in the future.

Prepare for CMMC Now

Business leaders in the DIB space often say they don't think these CMMC requirements are going to stick or that most of the work is “complete” so they should be audit ready in a couple of weeks. Unless you have previously completed an assessment or have been advised by an organization that has completed assessments in the past, this may not be the case. Don't underestimate the amount of work that is required to prepare for an assessment!

Working with a knowledgeable, local firm as soon as it makes sense for your organization can only benefit you in the long run. Additionally, even if you don’t have any current

DOD contracts but are considering them for future work, now is the time to get started.

As the CMMC rules continue to roll out, staying informed and proactive is more critical than ever. As the ecosystem continues to grow, the Cyber AB is being split into two separate organizations: the Cyber AB and the Cybersecurity Assessor and Instructor Certification Organization. The goal is for CMMC to not only assess subcontractors but to also replace cybersecurity requirements for other government entities.

This is important for two reasons. First, it is likely that this split heralds a new slate of requirements that extend far beyond DOD contracts and into other sectors of the federal government. In other words, just because CMMC does not apply to you today does not mean that it (or something similar) will not be required in the future. Second, finding a good news source like the Cyber AB to stay informed about updates in this space is crucial to maintaining your competitive edge when attempting to procure contracts.

Joel Recane is a senior cybersecurity engineer with more than a decade of experience in system engineering and cybersecurity, with a particular knack for helping Alaska companies improve security. He holds CISSP and CCP certifications, bringing deep expertise in risk management and secure system architecture. Question for the team? Reach out at cmmc@stratus-services.com.

Alaska SBDC’s AI Resource Program

Leading AI training, education, and adoption

By Tracy Barbour

As pire Med Spa, a luxury medical spa in Anchorage, is dedicated to blending beauty and science. With a focus on self-care for all ages and genders, Aspire offers a range of advanced aesthetic and wellness services.

“Our mission is to deliver highquality care in a sophisticated atmosphere, exceeding client expectations with the latest products and technologies,” says CEO and Aesthetic Nurse Marisa Scott.

Recently, Scott learned how to leverage AI to grow her practice to the next level. Her educational journey was guided by consultations with Carlos Machuca, director of the AI Resource Program in Anchorage.

“We discovered AI was the key to mastering efficiency, operations, accuracy, innovations, marketing, et cetera,” Scott says. “Incorporating

AI into my practice saved thousands of dollars in various departments. We are truly grateful to have had Carlos Machuca's guidance in learning and mastering AI.”

The AI Resource Program is an extension of the Alaska Small Business Development Center (SBDC), which is hosted by UAA’s Business Enterprise Institute. The Alaska SBDC helps small businesses grow through its online resources and business management expertise. The AI Resource Program—the first of its kind when it launched last spring—is a bold augmentation of the Alaska SBDC’s ever-expanding offerings

The AI Resource Program focuses on empowering organizations and communities by making AI accessible, fostering innovation, and encouraging collaboration. Its

mission is to enhance efficiency, resilience, and economic growth while ensuring inclusivity and adherence to ethical practices.

“The program addresses the growing need for small businesses to understand and utilize cuttingedge technology to stay ahead of the competition, especially the larger box stores and online retailers,” Machuca says. “By creating a series of GPTs [generative pre-trained transformers] that can fill workforce gaps, improve market research, grow online marketing, and support the business owner, we can help clients make the most of the opportunities that generative AI creates.”

Carlos Machuca AI Resource Program

According to Machuca, the Alaska SBDC has consistently demonstrated its forward-thinking approach by embracing new technologies that benefit the state's business community. This longstanding commitment to innovation and small business support naturally led to the creation of the AI Resource Program.

“By recognizing the transformative potential of artificial intelligence early on, the program now serves as a crucial bridge between cuttingedge technological possibilities and practical business applications, equipping Alaska's organizations with the tools and knowledge they need to thrive in an increasingly dynamic, technology-driven world,” he says.

AI Training and Educational Programs

The AI Resource Program offers a range of training and educational programs tailored to businesses, business advisors, SBDCs, individuals, and organizations across a variety of industries. These initiatives focus on developing AI literacy, practical skills, and readiness for AI adoption through workshops, assessments, hands-on labs, and consulting.

For instance, the program’s workshops and seminars are designed to help participants build foundational AI knowledge and skills. It offers AI readiness assessments to evaluate an organization’s preparedness for AI adoption, marking the initial step in its AI implementation training. And the program’s AI implementation guidance service follows its in-house guide of twenty steps, which is specifically created to help SBDCs and

“We aim to empower businesses and organizations in Alaska and beyond with accessible, practical AI solutions that drive sustainable growth.”

Carlos Machuca, Director, AI Resource Program

The Aspire Med Spa team is able to more efficiently deliver high-quality care, thanks to the assistance of AI business tools and the help of the Alaska Small Business Development Center's AI Resource Program. Aspire Med Spa

small businesses get started with AI.

The AI Resource Program’s handson AI labs allow participants to gain practical experience with AI tools to enhance their technical skills and understanding of AI technologies. But for more customized assistance, there are tailored consulting services available to provide industryspecific AI implementation and tool development to meet the unique needs of various sectors.

There are also specialized AI implementation and training programs available through the AI Resource Program. This includes training for Alaska SBDC clients, advisors, leadership, and administration. The program also provides implementation and training programs for other Alaska entities, such as nonprofits, government agencies, healthcare providers, chambers of commerce, and lending organizations.

Additionally, the AI Resource Program maintains ongoing research initiatives. “We engage in continuous research of AI tools that enhance

the capabilities of small businesses and business advisors,” Machuca explains. “These tools are cataloged in an internal database, enabling business advisors to share valuable AI resources with their clients. Each tool undergoes rigorous evaluation to ensure it meets our practicality criteria, guaranteeing that both advisors and their clients can significantly benefit from their use.”

The AI Resource Program equips the Alaska SBDC with a suite of AI tools that advisors rely on daily, enhancing their capacity to effectively serve local businesses. These contributions underline the program’s commitment to fostering business success and promoting innovation both locally and nationally.

Impact in Alaska and Beyond

Not surprisingly, the program’s advances in AI have improved its own operational efficiency by around 30 percent. “We’ve reduced the time it takes to assist clients while simultaneously improving our

performance metrics,” Machuca says. “In essence, we’re able to achieve more in less time, allowing us to serve a greater number of clients effectively.”

As a broader impact, the AI Resource Program has significantly enhanced the efficiency of small businesses by providing practical education and tools that streamline processes and reduce operational costs. For example, the program trained Integrated Project Services (IPS) how to incorporate AI into its document analysis and data workflows. Consequently, the Anchorage project management company can now complete complex mathematical formulas and programming in mere hours instead of the weeks or months it previously required. This has resulted in substantial cost reductions and enhanced efficiency, with Thad Phillips Integrated Project Services

the company anticipating savings of more than $522,000 annually, according to IPS Vice President Thad Phillips. “I love it,” he says. “I truly believe that this technology is a game-changer; businesses need to get on board or they’re eventually going to be taken over by competitors.”

Phillips says the personalized training he received from the AI Resource Program is much appreciated as it significantly expands the capacity of his small business, which employs ten to fifteen people. “Introducing us to this cutting-edge technology helps level the playing field between us and big corporations,” he says. “Kudos to Carlos and his department.”

However, the AI Resource Program's influence also extends

beyond Alaska. It actively collaborates on specialized AI projects that benefit SBDCs, governmental organizations, and nonprofits nationwide. The AI Resource Program has trained dozens of SBDCs across the country in implementing AI for their facilities.

For example, it helped the Nebraska SBDC in Omaha develop AI tools to streamline the process of crafting and analyzing business plans with limited advisory resources.

After completing multiple AI training sessions, the center has been able to reduce the typical two-week process of assisting clients with a

business plan down to a few days. AI has been a “fantastic resource” and huge time saver for the Nebraska SBDC while improving access to data for its clients, says Tony Schultz, state director for the Nebraska SBDC.

Schultz describes Machuca, who administered the training, as “a great guy” who is “passionate” about what he is doing. “You can see the excitement when he’s doing the presentation, and you can just tell he’s really in his element,” he explains.

In addition, Schultz says working with the Alaska SBDC was a great, collaborative experience. “Frankly, I was shocked by the time they were able to dedicate to our group,” he says. “They were so open to teaching us how to use the tools and spending time with us.”

Tony Schultz Nebraska SBDC

The Alaska SBDC’s AI Resource Program has also assisted the Federal Deposit Insurance Corporation. It helped the agency’s outreach division use AI to transform a static lender matrix into a dynamic, searchable database accessible to its executives and their partners.

Alluding to the practical purpose of the program’s collaborative efforts, Machuca says, “These programs and projects are designed to make AI accessible and actionable, empowering businesses and individuals to effectively harness its potential.”

Surprising Outcomes, Unexpected Insights

Since the AI Resource Program was established last year, Machuca has noticed some surprising outcomes.

While he recognized AI’s potential early on, he underestimated its ability to deliver rapid returns on investment and drive transformational changes in operational efficiency. The program has consistently enabled departments and organizations to optimize processes, turning tasks that once took hours into ones completed in mere minutes. “These advancements have led to significant financial savings and substantial productivity gains for clients, showcasing the profound impact AI can achieve when implemented thoughtfully and strategically,” he says.

Also, the speed at which businesses, nonprofits, government agencies, and other organizations are adopting the technology and requesting the program’s assistance is unprecedented. “This is one

of the fastest growing and most successful programs we’ve ever launched,” Machuca says. “The intuitive nature of AI tools, combined with their versatility in addressing diverse needs, has resulted in an exceptionally high adoption rate. People across industries are finding these tools remarkably easy to use and invaluable for achieving their goals.”

Machuca has also gained some unexpected insights through the AI Resource Program. Despite the wealth of information available about AI, many organizations continue to face challenges in effectively leveraging or implementing it within their operations, he reveals. “We’ve concluded that the rapid pace of AI advancements and its expansion

AI Resource Program Director Carlos Machuca discusses implementing AI in healthcare organizations at a preconference workshop of the Alaska Mental Health Trust Authority’s Improving Lives Conference 2024.

Todd Paris | AI Resource Program

into diverse fields make it difficult for small businesses to keep up and identify the ideal tools, skills, and strategies necessary for successful adoption,” he says.

“This underscores a significant gap in practical AI implementation and highlights the critical role of the program in providing tailored guidance, hands-on training, a nd ongoing support.”

In addition, the AI Resource Program has discovered that AI technology is particularly well suited to bridging the digital literacy gap in rural and remote communities.

“The conversational nature of AI GPTs (also known as AI Assistants) enables individuals with limited internet experience to access powerful tools they wouldn’t have been able to use before,” Machuca

says. “Coupled with the fact that satellite and broadband internet now covers the entire state, there’s an unprecedented opportunity to help rural and remote businesses and organizations overcome longstanding barriers to success.”

He adds, “These unexpected insights have reaffirmed the importance of establishing the program and its mission to empower organizations of all sizes and locations to thrive in the AI-driven era.”

Advancing AI Adoption

Early on, the AI Resource Program sought to be a leader in advancing AI adoption. When OpenAI introduced ChatGPT in November 2022, the Alaska SBDC immediately recognized its transformative potential for streamlining processes and enhancing efficiency for small businesses and business advisory services, Machuca says. Under the leadership of Alaska SBDC Executive Director Jon Bittner and the forwardthinking initiative of Machuca—who was then SBDC’s Anchorage Center director—the center moved quickly to dedicate resources and time to experiment with AI technology. “This early action established the Alaska SBDC as a national leader in integrating AI into business advising,” Machuca says.

The center’s success quickly caught national attention. In 2023, the Alaska SBDC was invited to present at the annual America’s SBDC Conference, which hosts more than 4,000 SBDC advisors and staff from across the nation. Alaska’s leadership in AI was featured in two

“The rapid pace of AI advancements and its expansion into diverse fields make it difficult for small businesses to keep up and identify the ideal tools, skills, and strategies necessary for successful adoption… This underscores a significant gap in practical AI implementation and highlights the critical role of the program.”

Carlos Machuca Director AI Resource Program

separate presentations, showcasing its innovative applications and results. These presentations attracted widespread interest from other centers, leading to the creation of an AI advisory group composed of like-minded SBDCs to collaborate on integrating AI into their operations.

The early adoption and demonstrated successes in Alaska caused other SBDC leaders to reach out to learn how to replicate the Alaska model. Today, the Alaska SBDC continues to lead by sharing its expertise and providing training to SBDC centers nationwide and beyond. “Over sixty SBDCs— including those in the [US] Virgin Islands, the Marshall Islands, and Turks and Caicos [Islands]—have benefited from this training,” Machuca explains. “These efforts have equipped SBDCs with the tools and knowledge to adopt AI effectively, enabling them to better serve their clients and elevate their capabilities.”

Today the AI Resource Program engages with a diverse array of organizations across the state, including the UA System, Native organizations, healthcare networks, local chambers of commerce, government entities, business groups, and Rotary clubs. The program has established mentorships for UAA students to explore AI applications in business contexts. Through the Alaska Chamber, it provides training for executives, and the program also hosts and participates in seminars with partner organizations.

“These collaborative efforts are designed to catalyze widespread AI adoption and integration throughout Alaska, creating a substantial impact across the community,” Machuca says.

Future Goals

The

AI Resource Program is committed to advancing its

Innovative AI Advising Tools and Applications

By Tracy Barbour

The Alaska Small Business Development Center (SBDC) AI Resource Program has created more than thirty AI-driven business advising tools to help small businesses launch, grow, and increase efficiency. Alaska SBDC advisors and support staff use these tools to ensure seamless collaboration and resource sharing:

x AI business plan tools: Assist advisors with analyzing business plans, crafting targeted outlines, and creating comprehensive, clientspecific business plans.

x AI marketing workflows: Streamline marketing efforts by providing workflows to define target markets, build detailed buyer personas, identify effective advertising channels, map the buyer’s journey, develop marketing calendars, and guide clients in creating impactful marketing.

x AI operational tools: Improve organizational efficiency, in part, by configuring standard operating procedures tailored to specific business needs.

x AI demographic analysis tool: Enables strategic decision-making by offering detailed demographic data by zip code, helping businesses align their plans with local market dynamics.

x Additional AI tools: Include applications like business insurance configurators, business valuation calculators, sales pitch writers, and success story creators.

The AI Resource Program’s success in developing and deploying these tools has resulted in its organization becoming a national leader in business assistance AI services, according to Carlos Machuca, the program’s director. To date, the AI Resource Program has provided training and tools to more than sixty SBDCs nationwide as well as training for domain name registrar and web hosting company GoDaddy and for other national technology service providers.

The AI Resource Program shares many of these tools through OpenAI’s generative pre-trained transformer marketplace, enabling SBDCs across the nation to access and benefit from Alaska’s innovative solutions. “By fostering collaboration and knowledge sharing across the SBDC network, the program is amplifying its impact and supporting small businesses nationwide,” Machuca says.

leadership in AI innovation through a comprehensive threeyear strategic plan. Its goals are to expand educational initiatives, develop advanced AI tools for business advisory services and administrative efficiency, deepen community engagement, and advocate for AI policies that foster equity and inclusivity. “We aim to empower businesses and organizations in Alaska and beyond with accessible, practical AI solutions that drive sustainable growth,” Machuca says.

In the coming years, the program intends to launch an AI user working group for SBDC centers nationwide, establish a dedicated AI user group for local organizations, develop an advanced series of AI workshops, expand its mentorship program, create AI tools for everyday business challenges, expand AI research and innovation capabilities, and create a monthly AI newsletter for its small business c lients and advisors.

Machuca feels that AI offers transformative potential to revolutionize processes, enhance efficiencies, and create new opportunities for growth and innovation. And the AI Resource Program is proud to lead this effort by fostering a future where businesses and communities thrive through the power of AI. He says, “We look forward to collaborating with organizations and individuals who share our vision of advancing innovation and inclusivity and welcome everyone to join us on this journey of discovery and transformation.”

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• Delivery throughout Alaska, from metro Anchorage to North Slope to remote villages in the Bush

• Customized solutions for commercial and industrial sectors, including oil and gas, construction, F&B, and retail/tourism

Strong Subnati nal Ties

China remains Alaska’s largest international trading partner

By Greg Wolf

In recent years, the value of Alaska's overseas exports has risen to record levels, now topping $6 billion annually. With seafood, minerals, and metals as the state's leading export categories, these shipments are destined for the state's primary export markets. These buyers are predominantly situated in the Asia-Pacific region of the world. Among these markets, China has been, and remains, the largest customer of Alaska exports for more than a decade.

Indeed, the rise of China to global economic prominence, and its growing need for natural resources to support that rapid growth, has translated directly into success for Alaska exports and the state's economy generally. Many thousands of jobs across the state, for example, are tied to the export of commodities and services to China and other important markets.

Tail of the Dragon Decade

China became the state's number one export destination in 2011 when Alaska shipments to the Middle Kingdom reached $1.5 billion. Since then, exports to the country have topped $1 billion annually. For 2023, the most recent period for which full-year numbers are available, China purchased $1.1 billion in Alaska commodities. Typically, China is the largest buyer in each of the state's major export categories.

These figures are even more impressive in the context of how fast and how far they have grown in a relatively short period of time. In 2002, exports to China were just $100 million. They grew steadily year by year and reached $1.5 billion in just ten short years, a period that has been dubbed the “dragon decade.”

To foster and support Alaska's commercial interests with China, the State of Alaska opened a trade office in Beijing in 2002. Alaska was one of the first American states to recognize the opportunities emerging from the rapidly expanding Chinese economy and establish an office presence to help Alaska companies to benefit from this growth. Although that office was closed in 2017, it played an important role during a dynamic period of trade development.

Alaska's relationship with China is at the sub-national level. While Washington, DC and Beijing are often at odds with each other on a variety of subjects, and likely always will be, Alaska and Chinese companies continue to work diligently to maintain and expand strong commercial ties, to the extent possible in compliance with the trade policies of the two nations.

People to People

Trade is not the only shared interest between Alaska and China. The country, which boasts one of the largest

outbound markets for tourism, is a growing opportunity for Alaska as a destination. Besides efforts by Alaska tourism promotion organizations to attract more visitors from China, Chinese President Xi Jinping’s diplomatic visits to Alaska and the US-China Summit held in Anchorage in March 2021 have helped to generate interest in Alaska for Chinese travelers.

Alaska's relationship with China is at the sub-national level.

While Washington, DC and Beijing are often at odds with each other on a variety of subjects, and likely always will be, Alaska and Chinese companies continue to work diligently to maintain and expand strong commercial ties.

There are other commercial fields as well, including air cargo transportation, with Anchorage serving as a bridge between China and the Lower 48. Half a dozen Chinese air carriers currently utilize the Ted Stevens Anchorage International Airport for cargo operations. These carriers include Air China, China Southern Airlines, and Cathay Pacific. In addition, numerous American carriers operate in and through Anchorage for their cargo flights to China. These include Atlas Air, FedEx, and UPS, among others. The rapid growth of ecommerce shipments has helped propel increasing activity at the Anchorage airport.

Beyond the strong commercial ties between Alaska and China, there is also people-to-people diplomacy at work. Alaska has a long-standing sister state relationship with Heilongjiang, China's northernmost province. Further, the Municipality of Anchorage has a sister city partnership with Harbin, the capital city of Heilongjiang Province. The city is located approximately 650 miles north of Beijing and has a metro area population of more than 10 million people. Recent visiting delegations from the city and province, celebrating the 40th anniversary of these relations, have reignited interest from both sides to do more in the realm of cultural exchanges.

On the education front, young Alaskans studying Mandarin is made possible through the Anchorage School District's Chinese language immersion program. Started in 2016, the program involves three local schools—Scenic

Park Elementary, Begich Middle School, and Bartlett High School. More than 200 students are currently enrolled in the program.

Center of World Trade

The Alaska International Business Center (akIBC) has been constructive on the China trade for more than twenty years and plays an active role in maintaining and building trade ties between Alaska and China. In December 2024, the akIBC conducted its 18th annual AlaskaChina Business Forum in Anchorage. The event brings together Chinese and Alaskan government officials and business executives and serves to highlight the size and significance of the commercial ties that exist and opportunities to create new ones.

The akIBC organizes and leads trade missions to China giving Alaskans a firsthand, boots-onthe-ground look at the market environment. Further, it participates in trade shows in various Chinese cities, most recently to Xiamen in southeast China, where the akIBC had a booth at a major trade show representing the products and services of nearly twenty different Alaska companies. In July 2024, akIBC announced the opening of a satellite office facility in Hong Kong. This foothold will give Alaska a physical presence to further promote exports and other business activities.

Looking forward, while relations may be frosty at the nation-to-nation level, Alaska, which enjoys old friend status in China, can play a positive role in bringing the two countries, the first and second largest economies in the world, closer together through partnerships and projects that are win/win for both sides. The Alaska–China relationship is strong and growing and is a natural partnership based on mutual benefit.

Greg Wolf is the President and CEO of the Alaska International Business Center.

ARCTIC DEVELOPMENT SPECIAL SECTION

Th e tropics don’t have an economic development council. That is, the region of the Earth between 23 ° north and south latitude is not treated as having a unified identity simply because it straddles the equator. Temperate latitudes, where most of the human population lives, have no special investment opportunities or regional cooperations. The Arctic stands apart in that respect, with nations touching the high latitudes and reaching toward the North Pole envisioning a shared future for this segment of the planet.

That vision encompasses renewable energy, fossil fuel energy, and infrastructure development like ConocoPhillips’ industrial road network across the Kuparuk River Unit. The uniqueness shapes the construction and engineering methods and materials for living in an extreme environment. The circumpolar frontier presents challenges for global security and openings for international cooperation. And more people will see the Arctic firsthand as maritime tourism increases.

This section is a tour of development in the Arctic, the only latitude with its own attitude.

Patricia Morales | Alaska Business

Cold Cruising

Polar expeditions on the new frontier of tourism

By Amy Newman

Al aska sits atop many travelers’ bucket lists, and most fulfill their dream of visiting the 49th state with a cruise. A 2024 McKinley Research Group study prepared for the Alaska Travel Industry Association found that 2.6 million people visited Alaska during the 2023 summer travel season, and two-thirds of them, or 1.7 million, arrived via cruise ship. Juneau, Ketchikan, and Skagway were the top ports of call, with each of the Southeast cities welcoming 70 percent or more of that year’s cruise visitors.

In recent years, cruise ship aficionados and travelers looking to explore some of the world’s most remote regions have begun boarding ships that chart a course farther north, beyond the Arctic Circle. They venture into an area that encompasses the northernmost parts of Alaska, Canada, Scandinavia, Greenland, Russia, and Iceland.

“Interest in polar regions, particularly the Arctic, has grown over the past thirty years,” says Florian Piper, director of Arctic program sales for Oceanwide Expeditions,

a Netherlands-based company that has offered polar expeditions to the Arctic and Antarctica for thirty years. “While the region has long attracted birders and those looking for unparalleled adventure, its popularity has recently expanded to include a diverse range of travelers, including families, solo travelers, and those drawn to remote and untouched destinatio ns like the Arctic.”

According to the Arctic Council, an intergovernmental forum promoting cooperation in the Arctic, in 2022

passenger cruise ships comprised just 5 percent of all vessels entering the Arctic Polar Code region, which sits at latitude 66.5° north of the equator. Though passenger ships are a small portion of vessels entering the region, their numbers have increased over the past decade. Data from Straits Research shows a 37 percent increase in passenger ship travel to the Arctic from 2013 to 2020, and 32,356 visitors to the region in 2019. In 2022, seventyeight cruise ships made 250 trips to the region.

Cruise companies are meeting the demand by expanding their tour offerings.

“We continue to enhance our Arctic cruises to offer our guests unique experiences through the natural beauty; stunning landscapes; wildlife, birdlife, and marine life; and unique geography of the Arctic,” says a spokesperson for Silversea Cruises, which was founded in 1994 and sailed to Svalbard, Iceland, and Greenland for the first time in 2008. “We recently announced 230 new voyages for 2026–2027,

which will… feature 131 expedition voyages to some of the world’s most remote regions—such as the Arctic, Antarctica, Galápagos [Islands], and more.”

Arctic cruises come with a hefty price tag—$10,000 to $20,000 per person or more, says Scott McMurren, publisher of the Alaska Travelgram newsletter—but for those with the financial means, they promise travelers a thrilling once-ina-lifetime adventure.

“Talking with friends and acquaintances who have made these

Andrew Peacock

| Oceanwide

Off-board activities for Oceanwide Expeditions passengers bring them closer to nature. This is partially because on-land adventures are a main appeal of the voyage and partially because polar-class cruise ships lack all the on-board amenities of their warm-water counterparts.

Andrew Peacock | Oceanwide Expeditions

journeys, their biggest takeaway is the other-worldly elements of the experience,” he says. “It’s quiet, without the usual trappings of civilization. The polar cruise is a venue to reflect and contemplate.”

Exploring the Polar Region

The modern era of Arctic exploration dates to the late 1800s, when explorers like Robert Peary, Roald Amundsen, and Frederick Cook attempted to push further into the Arctic Circle and reach the North Pole. Ice made passage into the region via ship difficult, if not impossible, so explorers headed north on foot and sled.

More than a century later, melting ice has made navigating the region easier; over the past thirty years,

the oldest and thickest Arctic ice has decreased 95 percent. The easier travel is especially true of the Northwest Passage, which stretches 1,700 nautical miles from Canada’s Baffin Island to the Beaufort Sea. In the 1980s the navigable period for open water vessels through the Northwest Passage was sporadic; starting in the 2010s, it grew to approximately ninety-two days per year.

Lindblad Expeditions in 1984 became the first cruise company to take a passenger ship through the Northwest Passage. In 2016, Crystal Serenity was the first large luxury cruise ship to make the trip, starting in Anchorage and making a stop in Nome before traveling east through the passage on its way to New York.

Cruise ship companies continue to take advantage of that evergrowing ease by modifying and increasing their fleet to ensure vessels have the capability to safely and responsibly navigate the icy waters while complying with regulations for traveling through the region. The International Code for Ships Operating in Polar Waters, which the International Maritime Organization adopted in 2014, dictates equipment, operations, and design and construction requirements for polar vessels. Requirements vary depending on the ship category, which is dictated by the type of waters ships travel through: Class A for medium first-year ice, Class B for thin first-year ice, or less than

Class A or B for ships traveling into open water or light ice.

Unknown Adventure Awaits

While large luxury liners cruise to the eastern Arctic with trips to Svalbard, Iceland, and Greenland, the dominant type of expedition cruises are through the Northwest Passage. The ships are smaller, which makes it easier to navigate and access remote and hard-toreach locales and focus on in-depth exploration and learning about these remote places. For example, Oceanwide’s largest expedition ship, M/V Hondius, can accommodate 170 passengers; Holland America Line’s Westerdam, by comparison, which will travel to Nome this summer, has a 1,916 passenger capacity.

“We prioritize immersive exploration of the Arctic and Antarctic, which specifically our smaller vessels make possible,” Piper explains. “They allow for more shore time and guests to engage directly with polar landscapes and wildlife.”

A team of onboard experts— guides, naturalists, and scientists— host lectures and discussions, help guide the itinerary, and lead off-boat excursions in small, inflatable boats that can give passengers an even more intimate look at the communities, wildlife, and landscapes.

“On- and off-board activities are designed to bring our customers closer to nature,” Piper says. “So that means rather than lounging by the pool, they might find themselves kayaking, polar diving, hiking, or snowshoeing.”

McMurren says feedback he has received from people who’ve taken expedition cruises says the on-board education is a highlight of the trip.

“[They] talk about how cool it is to have world-class scientists on board to explain the unique qualities of the landscape outside,” he says. “That includes anthropologists to discuss Indigenous populations, geologists to dissect the physical environment, and naturalists to provide insight on the animals i n the neighborhood.”

Inherent in any Arctic cruise is flexibility. Weather or ice conditions or the opportunity to view wildlife may require sudden detours or slow a ship down. That uncertainty is part of the allure.

“This is the unpredictable nature of expedition travel,” Piper says. “Every voyage is an unknown adventure,

which is exactly what makes every voyage with us unique.”

Charting a Course North

In the Eastern Arctic, the most popular destinations are Greenland and Svalbard, a Norwegian archipelago located between mainland Norway and the North Pole; in 2024, approximately 500 cruise ships docked in Longyearbyen, Svalbard's main settlement.

Visitors are drawn to the region’s towering glaciers, stunning fjords, snow-covered tundra, and floating sheets of ice; and wildlife such as polar bears, Arctic foxes, walruses, Arctic wolves, musk ox, and narwhals; and the ability to experience 24 hours of sunlight.

As the Northwest Passage becomes more navigable, the number of cruises through the region is growing.

M/V Hondius, built expressly as the world's first registered Polar Class 6 vessel, mostly travels in the Southern Hemisphere. Sister ships M/V Ortelius and M/V Plancius cover both Antarctic and Arctic routes, while the three-masted schooner S/V Rembrandt van Rijn sails the North Atlantic.

Koen Hoekemeijer | Oceanwide Expeditions

From 2013 to 2019, there was a 44 percent increase in the number of ships traveling the passage, according to Straits Research. Even some large liners that don’t make the Northwest Passage voyage have begun offering extended Alaska cruises that give travelers a taste of the Arctic, even if not on the same scale as smaller ships.

Juneau remains a main attraction for the traditional Alaska Inside Passage cruise—97 percent of cruise ships visited the capital city in 2023. But the Port of Nome, just south of the Arctic Circle at 64° latitude, gets all the attention from far-north cruises. As of August 2024, ten different passenger ships, including a UAF research vessel, had scheduled port calls in Nome between June and September 2025.

The largest of these is Holland America Line’s 1,916-passenger Westerdam , which departs Seattle on a twenty-eight-day Alaska Arctic Circle Solstice Tour. First offered in 2024, the cruise includes the typical Inside Passage stops but continues north to Nome with a day spent across the Arctic Circle. While in Nome, passengers can explore the town’s Gold Rush history, take guided hikes with locals, and attend an Alaska Native Culture Camp. Nome’s “limited tourism infrastructure” is billed as part of its charm, for now, and passengers are told they’ll be “trading breadth of experience for authentic interaction.”

Menu of Options

For passengers willing to trade the breadth of onboard experiences found on larger cruise ships,

“Interest in polar regions, particularly the Arctic, has grown over the past thirty years… Its popularity has recently expanded to include a diverse range of travelers, including families, solo travelers, and those drawn to remote and untouched destinations like the Arctic.”

Florian Piper, Director of Arctic Program Sales, O ceanwide Expeditions

smaller expedition ships increase the opportunities to interact more intimately with the polar region.

HX Hurtigruten Expeditions, which boasts of “the most extensive science program in the industry,” offers a cruise almost equal in length to Holland America’s, the twenty-sixday Northwest Passage through Canada’s Arctic Labyrinth aboard MS Fridtjof Nansen. But the ship’s smaller size—Nansen can accommodate 490 passengers—means it can access remote Arctic areas a ship the size of Westerdam cannot. The cruise begins in Reykjavik, Iceland and visits Greenland before heading northeast through Baffin Bay and Lancaster Sound in Eastern Canada on its way through the Northwest Passage, sailing through the Beaufort Sea, Chukchi Sea, and Bering Strait on its way to Nome.

Vancouver, British Columbia to Nome (or Nome to Vancouver) through the Inside Passage, the Gulf of Alaska, and the Aleutians.

National Geographic-Lindblad Expeditions’ sixty-nine-day Epic Northwest Passage: Iceland to Japan cruise also travels through Greenland, the Canadian High Arctic, and the Northwest Passage, making a stop in Nome on its way south to Japan. Two shorter cruises through the Northwest Passage offer a twentythree-day adventure, with the option to travel from Nuuk, Greenland to Nome or from Nome to Greenland.

which includes a stop in Point Hope, where passengers can explore the village of about 800 people with a resident guide or do a guided expedition tour with ship crew, before disembarking in Nome.

HX offers the nearly identical trip in reverse, the twenty-six-day Northwest Passage—Across the Top of the World aboard the 490 passenger MS Roald Amundsen. Passengers fly from Seattle to Nome, board the ship there, and travel east through the Northwest Passage before a final stop in Greenland. HX also offers several other Alaska cruises that travel from

Other tours originating in Greenland include Aurora Expeditions’ twenty-nine-day Traversing the Northwest Passage aboard the 130 passenger ship Sylvia Earle, which spends four days cruising the Beaufort and Chukchi Sea and the Bering Strait before disembarking in Nome; Hapag Lloyd Cruise’s twentynine day voyage aboard the Hanseatic Spirit , which travels through the Northwest Passage and Beaufort Sea and makes a stop in Nome before heading to its final destination in Seward; and Silversea’s twentythree-day cruise aboard its luxury expedition ship Silver Endeavour ,

The French cruise company Ponant’s first high-luxury polar expedition vessel, Le Commandant Charcot , takes passengers on a twenty-one-day cruise package named Transarctic, the Quest for the Two North Poles. The trip attempts the transpolar maritime route from Svalbard to Nome to reach the magnetic and geographic North Poles.

As access to the Arctic continues to rise, cruise lines remain ready to meet that demand and improve their offerings. According to Silversea, “We continue to enhance our Arctic cruises to offer our guests unique experiences through the natural beauty, stunning landscapes, wildlife, birdlife and marine life, and unique geography of the Arctic.”

And the growing interest in Arctic travel makes sense, particularly for the well-traveled, Piper says. “For those who have traveled the world, the Arctic is the next best place to visit.” Sailing

Jacques Marais | Oceanwide Expeditions

Arctic Encounter 2025 North America’s Largest Arctic Convening

Next month in Anchorage, Arctic Encounter is hosting its annual flagship and North America’s largest annual Arctic policy and business event: the Arctic Encounter Symposium (AES). Scheduled for April 2–4 at the Dena’ina Civic and Convention Center and Anchorage Museum, AES 2025 will delve into pressing Arctic issues, such as climate change, sustainable development, innovation, and geopolitics.

The conference is poised to convene stakeholders from more than twenty-five countries, including government officials, diplomats, politicians, business executives, investors, Indigenous leaders, scientists, and military and security officials. “We are taking great strides to bring together leaders who can solve problems,” says Arctic Encounter Founder and CEO Rachel Kallander, an Alaskan entrepreneur.

IMPORTANCE AND IMPACT

AES features VIP luncheon debates, plenary and breakout session panels, local exhibitors, receptions, artistic performances, and the Far North Fashion Show each year. To make AES more accessible, the event offers discounted access to nonprofits, students, government officials, and tribal entities. AES runs an attendance scholarship program for elders and rural Alaskans and in 2024 launched the Northern Vision Fellows program for ten accepted young leaders. “It’s important for people to be able to

come together with diverse opinions—not just to tell their story but to feel truly seen and heard,” says Kallander, who grew up in Cordova.

While Arctic Encounter held its first symposium in 2014 in Seattle, Washington, Anchorage has successfully hosted the event since 2022. AES 2024 assembled more than 200 speakers and more than 1,000 attendees from thirty-plus countries. AES 2023 garnered a Visit Anchorage award for its estimated $804,000 local economic impact.

EXPANDING ITS ROLE

Arctic Encounter is a 501(c)3 not-for-profit, nongovernmental organization based in Anchorage. It’s driven by a unique mission: to ignite a global movement of leaders dedicated to advancing collaboration and thoughtful progress in the Arctic. “We strive to build platforms that challenge the status quo dialogue, elevate diverse voices, and promote innovative solutions to support a sustainable and secure future in the Far North,” Kallander says.

Arctic Encounter has hosted events globally in Iceland,

Norway, Paris, and London. It also lends its voice and policy expertise to smaller settings, from private discussions with policymakers in Washington, D.C. to roundtables with security experts under Chatham House rules. In 2024, Arctic Encounter worked with community partners to bring nearly 100 leaders to Utqiaġvik and intends to take groups to the Alaskan Arctic annually. Arctic Encounter plans to expand its work in the District of Columbia and is exploring partnerships to produce AES programs in Asia and Europe.

Kallander encourages Alaskans to participate in AES 2025—even if their work doesn’t directly relate to the Arctic. “The Arctic is fast-

by Arctic

changing, and this is an event that covers many topics and includes leaders who travel to Anchorage to participate from thirty-plus nations,” she says. “What happens in the Arctic doesn't stay in the Arctic, and Alaskans should be the first to speak up, engage, and consult on both challenges and solutions when it comes to the US Arctic.”

Photos

Encouter

The Ted Stevens Center for Arctic Security Studies

Soft power in the northern frontier

By Terri Marshall

Before he was a US senator, before he moved to Alaska, and even before he earned his undergraduate degree from UCLA, a 21-year-old Ted Stevens flew transport aircraft over the Himalayan mountains in support of the Flying Tigers, volunteer fighter pilots assisting China’s resistance against Imperial Japan. Global security was his first career and remained an area of interest for the next half century. By 1989, Stevens was a contender for Secretary of Defense.

Now, fifteen years after his passing, Stevens’ legacy continues with a

namesake institution at Joint Base Elmendorf-Richardson.

The Ted Stevens Center for Arctic Security Studies (TSC) educates and collaborates with civilian and military practitioners from the United States and from Allied and partnered nations to build understanding and advance security solutions for the Arctic region. The center is the sixth and newest for the US Departme nt of Defense (DOD).

The DOD Regional Centers for Security Studies are international platforms for research,

communication, idea sharing, and training. They bring together US and foreign military, civilian, and nongovernmental participants. These centers create valuable academic spaces that help build strong and lasting international networks of security leaders. Currently there are six regional centers:

x George C. Marshall European Center for Security Studies in Garmisch, Germany, established in 1993.

x Daniel K. Inouye Asia-Pacific Center for Security Studies in Honolulu, Hawai'i, established in 1995.

x William J. Perry Center for Hemispheric Defense Studies in Washington, DC, established in 1997.

x Africa Center for Strategic Studies in Washington, DC, established in 1999.

x Near East-South Asia Center for Strategic Studies in Washington, DC, established in 2000.

x Ted Stevens Center for Arctic Security Studies in Anchorage, established in 2021.

“Our mission is to advance US national security efforts in

the Arctic region and with our Allies and partners as one of six regional centers across the Security Cooperation enterprise,” says Matthew Hickey, associate director for strategic engagement for the TSC. “All the regional centers are aligned with a regional combatant command; the US Department of Defense splits up the world into regions to synchronize the coordination of activities in command. We are aligned with US Northern Command (USNORTHCOM) but we also work closely with the European Command and other commands when applicable.”

Inspiration for the TSC

A congressional delegation visit to the Hawai'i center named for Stevens’ good friend Senator Daniel K. Inouye served as the inspiration for TSC. The delegation walked away impressed by the work the center was doing to support security cooperation initiatives in the Pacific region.

“Security cooperation in the IndoPacific region is done primarily to confront the competing interests of China,” explains Hickey. “The US National Security Strategy defines China is the ‘pacing threat.’ During the congressional delegation’s visit they

US Coast Guard VADM Peter W. Gautier, deputy commandant for operations, visited TSC last October to discuss a whole-of-government approach to Arctic security, as outlined in the National Strategy for the Arctic Region.

Hannah Smith | Ted Stevens Center for Arctic Security Studies

observed how the Asia-Pacific Center was doing good work in a critical region with important partners and allies, such as the Philippines, Thailand, Korea, Japan.”

Interest in the Arctic began to garner more attention in Washington, DC, in about 2019, around the same time the congressional delegation visited the Asia Pacific Center for Security Studies. “There was a kind of inflection or culminating point of an interest in Arctic issues within the national security apparatus… [there was] the establishment (or reestablishment) of a number of Arctic initiatives” referring to an updated National

TSC teamed up with DOD's Arctic and Global Resilience Office to host a visit to the Port of Nome last August. Officials gained insights into how DOD can work with Alaska-based stakeholders on Arctic security and opportunities.

Strategy for the Arctic Region, a new DOD Arctic strategy, and the incorporation of the Arctic.

It was at about the same time when Congress included The Ted Stevens Center for Arctic Security Studies into legislation and on June 9, 2021, the Secretary of Defense announced the establishment of the TSC and provided the following guidance:

x Advance a network of civilian and military practitioners promoting understanding and providing collaborative security solutions for the Arctic region.

x Build strong, sustainable, domestic, and international networks of security leaders and promote and

conduct focused research on Arctic security to advance DOD security priorities in the Arctic region.

x Prepare civilian and military security practitioners, propose useful solutions, and enhance people networks to ensure a stable, rules-based order in the Arctic that will benefit the United States and nations across the Arctic.

Arctic Support

While the TSC was being created, another initiative was in the works. The office of the deputy assistant secretary of defense for Arctic and Global Resilience position was being created within the Office of

Hannah Smith | Ted Stevens Center for Arctic Security Studies

Although the US Navy has a minimal presence in Alaska, the branch plays a role in Arctic research, situational awareness, and technology. LCDR Barry McShane addressed a meeting last November at TSC of the International Cooperative Engagement Program for Polar Research.

Amber E. Kurka | Ted Stevens Center for Arctic Security Studies

the Secretary of Defense for Policy to advance Arctic initiatives and priorities within the Pentagon and across the Defense Department.

“Personnel is policy and the creation of this office was yet another example of the Arctic’s growing importance.”

The new office was created to advise on how to protect the US homeland and Allied interests in the Arctic; address strategic resilience risks, such as critical minerals and energy security; and ensure the DOD maintains innovation advantages in strategic competition. That innovation alludes to investments in satellites, radars, missile defense, icebreakers, and other security assets.

The new office would also work closely with the new Ted Stevens Center to educate people and conduct engagement to build a network of Arctic leaders, both domestically and internationally. To compliment it all, the center also does research and analysis to support Arctic security initiatives.

“What we do is educate people on these issues everywhere from the tactical all the way up to the geopolitical level of engagement,” explains Hickey. “We’ve now existed for three years as a bit of a startup entity. It’s not easy to create something within the DOD, but we’ve embraced the opportunity

“What we see now is the Ted Stevens Center as a soft power complement to hard power investments in the region.”

Matthew Hickey Associate Director for Strategic Engagement Ted Stevens Center for Arc tic Security Studies

to exist. And what we have found from day one of our existence, the demand for our center has been nearly unsustainable to keep up with. To me that reflects how important the Arctic is in today’s geostrategic conversation.”

The Importance of the Arctic

“Alaska’s strategic location has farreaching implications. It serves as the first line of homeland defense, an essential power projection platform for US military forces, and a critical flank for NATO’s defense against Russian aggression,” says Hickey.

The National Security Strategy identifies China as the pacing threat to the United States, while Russia is an “acute” threat. Both countries are highly active in the Arctic region. “Russia is roughly half of the Arctic.

Regardless of what’s happening, you can’t change geography,” says Hickey. “Also, China has self declared aspirations of becoming a global power, which means it would need to be able to be everywhere, including the Arctic. This explains why China has sent icebreakers into the Arctic for what might be considered dualuse purposes,” referencing both civilian and military purposes.

The Arctic comes into play at all levels of strategic discourse: political, operational, and tactical. “Our center immediately came in demand to our European partners and allies, including Arctic countries like Sweden and Finland, who changed hundreds of years of neutrality policy to join NATO,” explains Hickey. “China and Russia have been jointly campaigning off the coast of the

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Aleutian Islands. Our Pacific partners and allies are keeping a close eye on what the United States’ response is to some of these actions.”

TSC’s main purpose is to educate. “Whether you are a strategist, a commander, a platoon leader, business executive, analyst, consultant, et cetera, everything is predicated on what you know and who you know. Our number two objective is to build a network or to convene people,” says Hickey. “I say this because we have found that our nation’s Arctic literacy is not as good as it could be. So the number one thing we set out to do was to create an education platform—kind of an Arctic 101. We’ve had over 100 people in each iteration of the course.” The insatiable demand for this course ultimately led to the center’s launch

MARINE SERVICES

TSC is equipped with a multimedia studio to amplify the center's mission through virtual courses and podcasts. Here, IT specialist Rahsaan Ash poses for systems testing by multimedia specialist Jason Roe.

Ted Stevens Center for Arctic Security Studies

of the inaugural Anchorage Security and Defense Conference.

The

Inaugural Anchorage Security and Defense Conference

In November 2024, the TSC held the inaugural Anchorage Security and Defense Conference (ASDC) to bring diplomats, international affairs specialists, regional experts, and senior military officers together for discussions centered around the Arctic’s growing importance in global security. In an op-ed, Hickey noted “The most important geostrategic

place in the world now has an important geostrategic conference. A crucial aspect of the ASDC was the representation from both European and Asian nations. The Arctic is not just a regional concern for the United States or Canada or the Nordics; it is a global issue that impacts countries beyond the circumpolar north. For Europe, the security of the Arctic is intimately tied to its broader defense posture, particularly in the face of Russia’s aggression. Countries like Norway, Sweden, Finland, and Denmark have long been on the front lines of Arctic security and have vital interests in maintaining

stability and safeguarding international law in the region.”

More than 300 people attended the multi-day conference. Hickey notes that participants included people from industry, national laboratories, the Indigenous community, and local representation. The keynote addresses covered information on partnerships, allies, working together in the Arctic region, and incorporating industry.

TSC plans to continue the Anchorage-based conference to provide people with a better understanding of the importance of the Arctic.

TSC sought public input at the Alaska Federation of Natives annual convention last October. The booth posted a different security question each day, encouraging participation and dialogue.

Amber E. Kurka | Ted Stevens Center for Arctic Security Studies

PMagnetic North

Alaska Native corporations attract Outside interest

By Tasha Anderson

Monica Sterchi-Lowman | Alaska Business

N C, a bank that has been expanding nationally from its East Coast roots, and RSM US, a consulting, tax, and assurance firm, jointly hosted an Economic Briefing in January that included a forecast for Alaska and the United States and a panel about mergers and acquisitions. The goal of the briefing was twofold, according to Laura MacNeil, regional president and West Coast territory executive for PNC: to connect with the bank’s current clients and to signal to other Alaska businesses that PNC is committed to “spending time in Alaska, working with the businesses up here, and really understanding the way the economy works.” Todd Wall, a partner and Alaska market leader for RSM, says, “RSM US appreciates the opportunity to collaborate with PNC to bring insights to business leaders and to have the opportunity to learn from them directly about the current business climate, their experiences, and the challenges they face. The Anchorage business community is made up of dynamic leaders, and we enjoy the chance to get them into one room to build personal relationships and hear their perspectives.”

Many of the attendees were representatives of Alaska Native corporations, which was no accident, as both PNC and RSM believe their services are suited to ANCSA corporations looking for growth opportunities. Wall says, “RSM is a large accounting firm with a unique middle-market perspective delivering consulting, tax, and assurance solutions tailored to a variety of industries. Alaska businesses, particularly Alaska Native corporations, can have unique and complex needs and opportunities extending beyond the boundaries of Alaska to the Lower 48 and internationally.”

MacNeil says that as soon as PNC identified its first opportunity to work with a Native corporation, “We actually wrote a white paper about how they operate, what their purpose is, and how they give back to their shareholders… We had to educate our credit team on why these were really strong, diversified companies

that are great for us to support from a credit standpoint.”

Beyond credit, PNC has a government contract team based in Washington, DC, that MacNeil sees as a particular asset for Alaska Native corporations that contract with government agencies.

Alaska Connections

What PNC doesn’t have, at present, is a permanent location in Alaska, and MacNeil is frank that it likely will not have a brick-and-mortar location in the state any time soon. PNC, she explained at the economic briefing, has found success in different markets through both organic growth and acquisitions, but the organic growth generally starts with corporate banking, which is PNC’s current approach in Alaska.

Wall says that cosponsoring the economic briefing emphasizes RSM’s commitment to Alaska. “RSM prioritizes being present in Alaska and building personal relationships with Alaska’s local business leaders,” he says. “Our personalized approach means we understand the needs of the Alaska business community and the industries that are driving growth for the state, particularly with Alaska Native corporations, including government contracting, construction, s eafood, and energy.”

One of RSM’s special offerings is its Industry Eminence Program, which was created and is led by the company’s Chief Economist Joe Brusuelas and Deputy Chief Economist Kevin Depew. “The program positions senior

“The Anchorage business community is made up of dynamic leaders, and we enjoy the chance to get them into one room to build personal relationships and hear their perspectives.”

Todd Wall Partner and Alaska Market Leader RSM US

analysts to understand, forecast, and communicate economic, business, and technology trends that are shaping the industries RSM serves,” Wall says.

MacNeil says that, even without a physical branch in Alaska, PNC representatives travel to the 49th state regularly to meet with clients and strengthen ties to the community; the economic briefing, which may become an annual event, is part of that. This year the bank was excited to share its new message that it is “brilliantly boring.” According to MacNeil, “It's really to say that you can trust us to be dependable and not doing crazy things with your money, so that you can… count on us to help you, individually and your business, grow so that you can be brilliant.”

Economic Insights

Beyond networking and building community ties, PNC and RSM are investing in providing timely and relevant information to Alaska businesses. Tim Clark, senior investment advisor for PNC, presented the economic forecast, and he spent some time explaining the factors that will likely influence inflation for the rest of the year.

One, he said, is that goods inflation, which was stimulated by the COVID-19 pandemic and supply chain issues, has already come down, but inflation related to services is “still staying relatively strong and sticky… whereas food, energy, and goods inflation is in the negative.”

The availability of housing, he said, is still an issue nationwide.

Mortgage rates are “extremely high right now, but it’s not dampening the fact that shelter is still a concern.” Clark mentioned that approximately 40 percent of homeowners have a current mortgage rate of less than 4 percent, and high mortgage rates will lead many of them to avoid selling their home. He referenced the Anchorage Economic Development Corporation’s annual economic forecast, where Mayor Suzanne LaFrance expressed the city’s goal to add 10,000 homes over the next ten years. “That’s great; I mean, that has to happen all across America,” Clark said. “There needs to be huge initiatives to build single-family homes; there’s just not enough homes to go around.”

Another contributor to inflation is that wealth for many Americans

The Winning Strategy: Combine Print and Digital

By Janis Plume, Senior Account Manager

“Don’t put all your eggs into one basket,” applies to advertising as much as other aspects of life. It certainly applies to B2B advertising campaigns. For example, reinforcing your print ad campaign with digital ad components amplifies your success.

Adding digital components to your campaign with Alaska Business could mean upgrading your print ad to a responsive ad in our digital edition or advertising on akbizmag. com with a banner ad or a Spotlight Digital Profile. Here are some “eggs” to consider to enhance your advertising campaign’s effectiveness.

Increasing Frequency: Running digital ads in conjunction with print increases your message’s frequency, keeping your brand and message top-of-mind for prospective customers. A Spotlight Digital Profile on our website gives you 24/7/365 exposure and

additional opportunities for clients to find you online.

Reinforcing Key Messages: Digital ads reiterate the messages from print ads, further strengthening the delivery of key points, benefits, and offers. This dual-prong approach increases the chance that your target audience receives and remembers your message.

Targeting Key Industry Sectors: In addition to ads on our homepage, akbizmag.com offers twenty-seven Industry Pages, ranging from Alaska Native to Transportation. This allows you to select appropriate and relevant business sectors to target with digital advertising. All web advertisers also receive bonus “run of site” impressions throughout akbizmag.com.

Attracting Digital-First Audiences: Many younger decision-making business professionals are digitally oriented. Combining print and digital advertising increases your chance of connecting with modern and traditional audiences. Fifteen

percent of our readers now consume our magazine via the digital edition. Upgrade your print ad to include a responsive ad in the digital edition to capture this audience. Your advertising should aim to reach the right people with the right message at the right time. Combining print’s tangible credibility with digital advertising’s immediacy can significantly enhance your ad campaign’s overall impact and ROI with Alaska Business.

If you’re interested in how Alaska Business can help your business grow with print and digital advertising, drop us a line. We’d be happy to assist with making sure your advertising “eggs” are in the right baskets.

907-257-2917

janis@akbizmag.com

JANIS PLUME

actually grew over the last fifteen years. “If you look at the net worth and growth that we’ve seen here in household net worth, especially middle class and above, it’s been tremendous,” Clark said. “Your house has doubled, your 401(k) has doubled, the stock market’s doing great, if you owned Nvidia, life is wonderful. But again, this also drives politics; if you’re below middle class, you might not be doing as well.”

Speaking of politics, he said how the new Trump Administration may affect the economy is a significant unknown. “Some of the fiscal policy rules with the new administration could potentially be inflationary… Adding material tariffs to our trade partners like Mexico, China, and Canada—that could be inflationary… The curtailment in

immigration could change the labor pool, which could potentially be inflationary, as well.”

Narrowing down on Alaska, Clark offered his thoughts on the Trump Administration’s pro-oil policy, which has potential to boost the state’s economy, though that certainly isn’t a guarantee. Clark explained that the last crash in oil prices, near the end of 2014, was in some ways driven by a large increase in oil production. “That whole industry, specifically the public market, has changed dramatically. Investors have really pushed all the big majors to slow down and grow at a pace that can provide capital back to shareholders, to increase dividends, share buybacks; you can't do that if you're blowing yourself out creating these big cycles… In the case of the public

companies, they're going to say, ‘If you can give me more tax incentives, if you can give me other ways for me to make these projects more economic and I can grow faster, sure. But if not, then I'm going to continue to follow what my shareholders are asking me to do, which is to grow at a decent pace, keep my balance sheet in check, and return my capital to shareholders.’”

Clark did share that production on the North Slope is expected to grow by about 40 percent. The growth is significant because, in Alaska, every job in the oil patch creates fifty jobs around the state.

All factors considered, Clark anticipates inflation will “start to taper off into the end of the year,” which would be a relief for many industries in Alaska and beyond.

We want to thank all the Alaskans who have supported us over the past 50 years. What we have accomplished together is truly remarkable.

Northwest’s Clean Energy Transformation

Building independence and sustainability

By Alexandra Kay

In a landmark investment, the US Department of Energy (DOE) committed $54.8 million to provide clean energy access to Northwest Alaska’s remote communities. The Northwest Arctic Borough (NAB) made the grant request in conjunction with NANA Regional Corporation, Alaska Village Electric Cooperative (AVEC), Kotzebue Electric Association, and Renewable Energy Alaska Project. Combined with matching funds and other contributions—including a $5 million match to other funds contributed by NANA—the NAB will have $68.5 million for the initiative. The project aims to offset approximately 350,000 gallons of fuel oil annually and save regional residents $2 million

in electricity and heating costs. The federal and local investment aims to address the unique energy challenges faced by the region’s remote villages while at the same time advancing energy independence and climate resilience.

Accepting the grant in February 2024, NANA CEO and President John Lincoln said, “This award is an incredible win for NANA shareholders and residents in Northwest Alaska. The cost of energy in our region creates a burden on families and suppresses economic development. By exploring other energy sources with our regional partners, we are building a stronger tomorrow with more opportunities for our shareholders.”

A Plan for the Region

According to DOE, the project includes the installation of 4 MW of solar photovoltaics, more than 7.1 MWh of battery storage systems, and 850 heat pumps across the Northwest Arctic region. A press release on the project notes, “This project seeks to replace a 10mile overhead distribution tie-line between the villages of Kobuk and Shungnak, allowing for greater interconnection in this remote region. Each of the ten solar and battery storage projects will be owned and maintained by eleven federally recognized Alaska Native villages, who will act as Independent Power Producers (IPP). As proposed, the Native villages will be able to sell the

power to their corresponding utility, potentially raising an estimated $970,000 in annual revenue.”

The eleven communities covered by the grant include Ambler, Buckland, Deering, Kiana, Kivalina, Kobuk, Kotzebue, Noatak, Noorvik, Selawik, and Shungnak.

As part of its Community Benefits Plan, the project would develop a Memorandum of Agreement with each of the eleven recognized Alaska Native villages to ensure a clear framework for promoting local hire, transferring ownership agreements, and creating meaningful engagement. Project partners may be expected to implement a local hiring preference of 50 percent for Alaska Natives and local job seekers, leveraging the UA System’s Alaska Native Science & Engineering Program to source candidates. The project’s proposed work also provides 100 percent of its benefits to disadvantaged communities.

Several Northwest Alaska communities have already demonstrated that renewable energy can work—even in Arctic locations. Kotzebue Electric Association has operated wind turbines successfully for years, and there is already a Shungnak-Kobuk Community Solar Independent Power Producer project.

The Clean Energy in Northwest Alaska grant will expand current renewable systems while at the same time bringing clean energy infrastructure to several communities that currently rely solely on diesel power.

In addition to the diesel fuel and cost savings, the project will demonstrate “a new powerdistribution technology for potential

The fleet at Cook Inlet Tug & Barge is ready to support your marine transportation needs in strong winds, freezing temperatures, and icy Alaskan waters. You can count on our expertise and durable vessels.

“It’s a long-term transition that’s coming to partial fruition… We can’t put wind in all of the communities, but we also have a hydro project that may be able to be accessed. If we can get there, the communities can get close to 100 percent.”

Ingemar Mathiasson Energy Manager Nort hwest Arctic Borough

replication in other remote communities,” DOE says.

Sun, Wind, and Water

Each of the eleven communities will receive targeted improvements designed for their unique energy needs. Ambler, Kiana, Kivalina, Kobuk, Noorvik, and Selawik will receive solar panels and battery storage systems. The other five villages, which already have solar power, will upgrade their existing systems. These include Buckland, Deering, Kotzebue, Noatak, and Shungnak.

“The project will go for four years and build out solar batteries as big as we can possibly get them,” says NAB Energy Manager Ingemar Mathiasson. “We can get about 25 percent of renewable energy from the sun, and [DOE] acknowledged our request. We are a 700 kW array with a 2 MW battery, and it should be operational by 2026 sometime,” he says.

In addition to building utilityscale systems, Mathiasson notes that there is also funding set aside to put “mini split” heat pumps into 865 households around Kotzebue, which will offset a significant amount of diesel fuel.

“It’s a long-term transition that’s coming to partial fruition,” he says, speaking ahead to the future of clean energy in the Borough. “We’ll see if we can get more wind at that point. Kotzubue has about 30 percent. Two other villages have 10 and 17 percent respectively. We can’t put wind in all of the communities, but we also have a hydro project that may be able to be accessed. If we can get there, the communities can get close to 100

percent. It’s a project to maximize resources for all eleven communities that was just obligated in December.”

Transmission Possible

Between the initial funding announcement and the money being contracted in December, the funding was a bit precarious, says AVEC President and CEO Bill Stamm.

“We are in the process of working with the Northwest Arctic Borough to upgrade our power plants,” Stamm adds. “There are some control upgrades that have to be done in these plants in order to receive power from a different source (solar and battery) and control that with the diesel.”

The rebuilt powerline between Kobuk and Shugnak will also demonstrate a new technology. Stamm explains, “We’re going to rebuild that so that it can transmit power in AC [alternating current] but also pilot to transmit power via DC [direct current]. We’re hoping to prove out that technology so that we might be able to join communities that are a little bit further apart. We’re limited in what we can do on an AC system at that capacity, and we’re hoping DC will allow us to do that a bit further out.”

Stamm notes that AVEC is currently working on procurement and design to complete its Selawik upgrades. Meanwhile, NAB is composing bids for the batteries and solar systems it will build on its end.

Community Benefits

For the eleven communities in the NAB, energy costs are a critical challenge. Northwest

“Diesel is the lifeblood of those communities, and it’s expensive, very volatile in price, and difficult to move around… And those communities for some time have been trying to reduce the amount of diesel they use for both heating and electricity uses, and the grant will address both of those issues.”

Chris Rose Founder an d Executive Director Renewable Energy Alaska Project

Alaska's communities pay some of the highest energy costs in the nation. Diesel prices sometimes reach $18 per gallon, which can eat up large portions of income, creating significant financial strain.

According to a 2022 NANA study, nearly half of households surveyed said they could not afford electricity or heating. Many remote villages rely on diesel fuel, which must be transported on barges during short periods in the summer when sea ice retreats enough to allow access or brought in by air in some circumstances. Dependence on diesel creates economic issues for village residents and leaves communities vulnerable to supply chain issues and environmental risks.

“The entire region relies heavily on imported fossil fuel to heat and electrify everything there, so diesel is the lifeblood of those communities, and it’s expensive, very volatile in price, and difficult to move around,” says Chris Rose, founder and executive director of the Renewable Energy Alaska Project. “It can spill, and it has emissions, but most of all it’s expensive. And those communities for some time have been trying to reduce the amount of diesel they use for both heating and electricity uses, and the grant will address both of those issues.”

Infrastructure improvements, modernized power distribution systems, and updated transmission lines (where applicable) will improve reliability and reduce system outages. A significant reduction in diesel fuel consumption will result in decreased risk of fuel spills during delivery, lower carbon emissions,

and reduced noise pollution from diesel generators. Lower diesel generator use also means improved air quality, enhanced power reliability, better emergency preparedness, and a more stable power supply. Decreased dependence on diesel fuel will potentially save every household thousands of dollars annually.

“My understanding is that they are testing high-performance heat pumps from LG, and if they are as good as they seem to be, every household would have an alternative heating system to imported heating oil, and every household would have a significant chunk of the electricity that runs that system coming from the sun,” says Rose. “The other thing this grant will do is help the region study the power systems there to make sure that they are adequate to take on the challenge of an electricity load—to make sure that the individual grids can handle it.”

The DOE grant, along with the additional funding from community partners, represents a significant step toward energy independence and sustainability for one of America’s most challenging regions. By combining technical innovations with community engagement, the project aims to create lasting positive changes that extend far beyond the current generation. As implementation continues, this initiative could serve as a blueprint for similar projects in remote communities worldwide, demonstrating how renewable energy can be successfully deployed in even the most demanding environments.

Alaska International Business Center

Your passport to a world of international business opportunity

Alaska International Business Center (akIBC) recently celebrated its one-year anniversary—but, in actuality, the organization has been in continuous operation for more than three decades. Founded in 1987 as World Trade Center Alaska, this private-sector entity has steadily evolved to meet the needs of businesses in Alaska. It rebranded to World Trade Center Anchorage in 2014 and adopted its current name in 2023.

The latest name change was intended to better reflect the center’s diverse scope of work within and beyond Alaska. “In addition to import and export work, one of our key functions is helping Alaskans discover new markets, customers, and business opportunities,” says President and CEO Greg Wolf.

EXTENSIVE SERVICES AND BENEFITS

The mission of akIBC—often referred to simply as the IBC—is to connect sellers in Alaska with overseas buyers. The primary focus of IBC’s activities is on Asia, which is home to Alaska's top three export markets: China,

Japan, and Korea. Canada and Australia are also significant markets, with these five countries accounting for at least 70 percent of Alaska's exports.

With 118 members statewide, IBC offers an array of services designed to help businesses enter and succeed in global markets. It hosts weekly public luncheons and major events like its 18th Annual AlaskaChina Business Conference. IBC also organizes trade missions, giving members the invaluable experience of visiting foreign countries, meeting officials, and gaining on-theground insights. In addition, it provides support for inbound missions from other countries, including recent delegations from China, Vietnam, and the United Kingdom.

Most IBC members fall in three categories: businesses that are considering exporting; those already exporting and seeking new markets; and entities providing technical and professional services to exporters, such as customs brokers, forwarders, and business-law attorneys. IBC members have access to oneon-one consulting, research,

and help with navigating the complexities of international trade, from competition and pricing to import laws.

Furthermore, IBC’s sister company—Alaska Global Export Management (akGEM)— can act as an external export department for businesses by either selling their products on commission or purchasing their products outright. “We can serve as a one-stop shop for doing their international work,” Wolf says. “There’s no one else in Alaska that does this.”

EXPANDING ITS SUPPORT AND PRESENCE

Recently, IBC introduced two new membership features: a Taipan Club that hosts exclusive events for top-level members and an all-access

by akIBC

pass to its events (excluding trade missions) for a onetime fee. The center also has established its first satellite office in Hong Kong, covering Mainland China, Hong Kong, and Macau. In late 2025, IBC plans to open a second satellite location in Singapore to serve India, Vietnam, and Thailand. “These offices are to serve our members when they are traveling to these countries,” Wolf explains. “Through our work, we are taking Alaska’s message to the world in terms of what products and services we can offer on a global basis.” Whether through its satellite offices or Anchorage headquarters, IBC is your passport to a world of international opportunity.

Photos

Materials & Methods

Cold-weather construction and engineering innovations and adaptations

By Vanessa Orr

Building in the Arctic requires a stable foundation.

However, cold-weather designers, architects, and builders face numerous challenges in this area, ranging from permafrost and frost heaves to a dearth of proper building materials.

“In a lot of communities, like the Yukon-Kuskokwim Delta and Bethel area, you can’t find gravel to save yourself, so you have to work with poorer quality materials like native silts and sands,” says Steven Halcomb, principal geotechnical engineer at Devise Engineering. “This causes all kinds of challenges, both in construction and in the long-term stability of infrastructure.”

The company, which specializes in structural and geotechnical engineering, has worked in the Yukon-Kuskokwim Delta, North Slope, Fairbanks, Canada, and Russia.

The remoteness of those communities makes adequate subsurface information hard to come by. “It’s often a challenge to do geotechnical and subsurface investigative work ahead of the design because it is cost prohibitive,” adds Jesse Gobeli, principal structural engineer at Devise Engineering. “While historical information can be used, it is not ideal.”

Many buildings in the Arctic are built on permafrost, which requires passively cooled steel piles (thermosiphons) to keep the ground from thawing. While used quite often, thermosiphons must be specially fabricated because they are pressurized vessels containing refrigerant.

An even bigger problem is differential permafrost, in which different areas within a region experience varying degrees of

permafrost thaw, according to Robbie Lynn, general manager of UIC Construction.

“In southern regions of the North Slope, for example, there is an active layer that is increasingly growing in depth, causing structures to move,” he explains. “This means that when you’re installing piles for the foundation, you have to go deeper. On some projects, we’ve had to go 60 feet deep for pile to ensure that we’re locking into a stable frozen layer or a bedrock layer. And this increases the cost of construc tion substantially.”

UIC Construction has been building schools, hospitals, and other major facilities in the Arctic since 1978. While it has used many of the same construction methods over the years, it is also exploring Arctic engineering advancements. One such innovation is using thermo-

Lisa Sterchi

charged piles. Instead of refrigerant, inert gas is used to actively cool the bottom of the pile.

“It’s not a new technology, but it is something that is being used more readily,” says Lynn, adding that UIC Construction has also been installing thermosiphons and thermistors (electronic thermometers) in order for clients to watch and monitor the ground temperature and ground movement of these buildings.

Protecting the Envelope

In addition to keeping heat from intruding into the soil, Arctic builders must avoid losing heat to the surrounding air. For example, designers and architects ensure that pieces of steel do not protrude from the exterior of the building envelope, pulling cold air back inside and creating condensation problems, among other issues.

“The envelope of the building has to be properly insulated, with moisture barriers in the right spots to avoid thermal transfer and moisture issues where at all possible,” says Nicholas Choromanski, principal structural engineer at Devise Engineering, adding that engineers who work in Alaska are required to go through an Arctic course to understand the special needs for construction in this environment.

It’s also important to protect builders working in dangerously cold temperatures, which often requires building a “bubble” to provide temporary heat.

“We’re building a school in Kaktovik, and in order to meet contract completion, we have to work yearround,” says Lynn. “Because we were

installing the roof in December, we had to first build a tent that we could work under to start the exterior work.”

Lynn laughs as he recalls, “There was a huge rush to get the building dried in so we could work inside the building.” The tent kept the site at 40°F during the interior framing process, considerably warmer than the exterior ambient temperatures.

Lynn adds that freezable items require warm storage or must be flown in immediately before use. These materials include glues, paints, and even carpeting. “The rest of the materials we use can withstand low temperatures, but if floors and glues freeze, they’re trash and you’re out quite a bit of money, especially

BUILDING ALASKA’S FUTURE

Owned and Operated Since 1954

Alaskan

one tough animal

since you can only ship them up o n one barge a year.”

While Arctic builders strive to follow international building codes, codes written in the Lower 48 are not applicable to some projects, including buildings elevated over permafrost.

“We have to kind of interpolate and come up with solutions that are not directly addressed in the code,” says Halcomb of numerous manuals that have been designed to help in the Arctic construction process. “And it can be a challenge to get everyone on board, from building officials to owners.”

Logistics, Logistics, Logistics

While using the right materials is imperative, so is planning deliveries so that construction can continue uninterrupted, no matter the season. Not only are builders dealing with remote locations and challenging weather but the materials must arrive on-site on time.

“The barge schedule is a major factor when it comes to accessing sites; a lot of material is shipped up rivers that freeze in winter, so you have a very short window for hitting the barge cycle,” explains Choromanski. “You can airfreight materials in a C-130, but that’s an expense you want to avoid.”

The logistics schedule becomes the limiting factor in construction management. “You have to think through the construction schedule in order to get materials in place,” Choromanski says. “Builders like to install pile foundations in the spring when daylight returns and while

“There is a great deal of uncertainty moving forward related to climate change, and we’re having to create new strategies for how we deal with the problems we’ve always had making things work in the Arctic. It’s getting more difficult to achieve the same goals with methods used in the past.”

Sarah Moyers Civil Engineer UMIAQ Design

the site is still frozen so they can move equipment there.”

Lynn agrees. “Working in the Arctic on the North Slope, logistics is hands down the most difficult hurdle,” he says. “Only one or two barges go up there a year, providing very limited resources to get materials to the North Slope. If you miss that barge, you push the project a year or have to fly in materials for a considerable sum.”

Unfortunately, costs are always going to be higher for construction in the Arctic and remote communities.

“Depending on if you’re on or off the road system, it can cost a tremendous amount more,” says Gobeli, noting that a building in town could cost $300 to $400 per square foot, but the cost increases to $1,500 per square foot for a more remote project.

Local Assets

Maintenance is also always an issue when it comes to any remote facility, with sea salt eating away at buildings in coastal communities, as well as wind and rust damage decreasing the life of a building.

“For this reason, we try to encourage clients to go with a more simplified system that is more easily maintained and doesn’t require specialized expertise,” says Lynn. “It is often difficult and cost-prohibitive to get experts to come to these smaller villages on a regular basis.”

Choromanski notes that it is imperative to hire companies with knowledge and experience of the Arctic that are familiar with the region and with sourcing and transporting the correct materials.

“If you’re working with someone in Texas designing a building in Utqiaġvik, you’re probably not going to have a successful project over the years,” he says.

UIC also relies heavily on interaction with Arctic communities and the support of local people to construct a successful project.

“That is hands-down most important thing about working there; without these communities, none of

these projects would get built,” Lynn says, adding that UIC tries to use as much local hire as possible. “We try to hire everybody that applies from laborers to carpenters to equipment operators and cooks, and we also rent equipment, housing, and vehicles from local people to reduce the cost of construction. They are our most valuable asset.”

He notes that those familiar with working in the Arctic may also be better prepared for the unexpected challenges that those locations bring.

“The Kaktovik school project is the first job where I’ve had to hire polar bear guards; you have to look out the door before jumping into your truck to ensure that you don’t have an encounter with a bear,” he says with a laugh. “In Nome, the musk ox are just as dangerous as the polar bears. While these obstacles are unique to working in the Arctic, my nieces and nephew love it when I send them pictures.”

Changing Climate, Changing Methods

The Arctic is seeing the results of climate change firsthand, so architects, engineers, and builders with years of Arctic experience must rethink their methods as they face new challenges.

“There is a great deal of uncertainty moving forward related to climate change, and we’re having to create new strategies for how we deal with the problems we’ve always had making things work in the Arctic. It’s getting more difficult to achieve the same goals with methods used in the past,” explains Sarah Moyers, a civil engineer with UMIAQ Design,

“If floors and glues freeze, they’re trash and you’re out quite a bit of money, especially since you can only ship them up on one barge a year.”

Robbie Lynn General Manager UIC Construction

another subsidiary of Ukpeaġvik Iñupiat Corporation.

“While we could choose one method or another before, now we’re having to resort to combining different methods, throwing everything at the problem to get the same level of performance that we used to get with one solution,” she continues.

Moyers adds that, from a design standpoint, it is extremely challenging when what has worked well in the past is not a good indicator of how things will perform in the future.

“It’s a challenge on two fronts; not only do we have to reinvent the wheel a bit, but we also have to bring everyone with us and get them on board,” she says. “Telling clients that they need to do these things that will be more expensive is difficult, but they have to invest more money to get the desired result. It’s not that we’re being overly conservative, but conditions are changing.”

She gives the example of building a gravel pad on permafrost. “You’re

essentially creating a buffer so that, as temperatures warm up, it doesn’t let warmth get into the frozen ground below so that it thaws and causes settlement. What’s written into the permitting document is that you need a minimum of four feet of gravel pad for long-term stability. But now that it’s getting warmer, the thaw is getting deeper, so you either have to add insulation or make the pad thicker. Both are expensive.”

Passive refrigeration (using thermosiphons to cool the ground without pumps or motors), is also becoming a challenge as temperatures are rising. This lowcost option is facing added costs as building owners install condensing units to actively cool the ground to keep foundations stable.

“Climate change is translating into needing bigger budgets for projects, which is difficult as budgets are already constrained,” says Moyers. “Planners often look at past projects to estimate what project costs would be with escalation factors, but now there’s more of a gap, and we have to account for these changes as well as ‘normal’ costs like inflation and the added costs of escalating prices on the supply side.”

Moyers approaches each case day by day, anticipating challenges that affect the design. “Will the site still be accessible? Will that site be underwater at some point? There’s so much uncertainty about what the future holds,” she says. “Designers, contractors, and facility owners will all need to work together to build resilient infrastructure in the Arctic that can adapt to the uncertain future associated with climate change.”

Pictured above - UIC Science provides support to US Navy SEALS and Norwegian Naval Special Operations Commandos during Arctic Edge 24.

Another Step in the Road

Superior Court vacates Santos’ KRU road permit

By Tasha Anderson

No rth Slope infrastructure is expensive and highly scrutinized. Production facilities, gravel pads, roads, personnel facilities, and other necessary construction must all be thoroughly documented, permitted, and approved. As referenced in “How to Share Infrastructure on the North Slope,” in the August 2024 issue of Alaska Business, much of the infrastructure on the North Slope is shared between projects and explorers/operators, which can reduce the costs to any one operator and is better for the environment, as it eliminates duplicative infrastructure projects. By law, common carrier pipelines, for example, are available for any producer on the North Slope to use by paying a set tariff rate. Other infrastructure, such as roads or other facilities, can be shared through private agreements between North Slope companies.

While this process of private negotiation has worked for the several decades that oil and gas have been produced on the North Slope, it recently hit a bump in the road.

ConocoPhillips Alaska and Santos disagree about how much it should cost for Santos to use the Kuparuk River Unit (KRU) road system. KRU is North America’s second largest oil field, and ConocoPhillips Alaska built and maintains roads within the unit and to satellite fields to support production of approximately 70,000 barrels of oil equivalent per day, all of which is processed through the Kuparuk production facilities.

As noted in “How to Share Infrastructure on the North Slope,” ConocoPhillips Alaska did not object to Santos accessing the KRU road system during the pre-development phase of Santos’ Pikka project, which is located west of the KRU. The two companies signed an ad hoc road

use agreement that allowed Santos access the road system.

However, after Santos applied for a permit for a seawater processing plant, the two companies could not come to terms on how Santos would compensate ConocoPhillips Alaska for access to the KRU roads.

ConocoPhillips Alaska reports that the road system costs between $10 million and $20 million per year for maintenance, and the cost to build a comparable road system today would exceed $1 billion. Santos said it offered approximately $60 million for operations, maintenance, and future capital expenses; ConocoPhillips Alaska asserted the actual offer was for less than $60 million, and its own counteroffer was “substantially equivalent to the road use fees that Santos previously proposed for longterm use of its own Pikka Unit roads.”

The two were at a standstill.

The Alaska Department of Natural

Resources (DNR) stepped in, issuing Santos a permit to use the KRU road system. ConocoPhillips Alaska appealed the permit; its request for a hearing was denied in December 2022. Regarding his decision to deny a hearing, then-Acting DNR Commissioner Akis Gialopsos said, “At its very core, the permit authorizes ‘access… until a commercial road use agreement is executed between OSA [Santos] and CPAI [ConocoPhillips Alaska] to provide for reasonable concurrent use.’” He continued: “Oil and gas leases incentivize and promote the development of the State’s resources by granting the exclusive right to the leasing party to the State’s subsurface oil and gas resources. These exclusive subsurface rights are accompanied by limited, non-exclusive surface rights for the

purpose of facilitating development within the leased tract.”

Believing that DNR’s decision to issue the permit created legal uncertainty in the oil and gas sector, ConocoPhillips Alaska exercised its right for the Anchorage Superior Court to review Gialopsos’ decision; Superior Court Judge Andrew Guidi issued his written order in December 2024, vacating the commissioner’s decision and the issued permit, stating, “DNR has no legal basis or authority to grant a third party the right to use CPAI’s leasehold improvements, by permit or any other means, even though they are built on state land.”

The Rationale

Guidi laid out his thought process for his decision to revoke the permit,

“The

State of Alaska has a constitutional obligation to maximize the development of our resources… We have to confirm with the Supreme Court that we have the authority to permit access for all developers to ensure we can meet this obligation.”

John Boyle Commissioner Alaska Department of Natural Resources

saying that for the permit to stand the court would need to find in DNR’s favor on five questions: 1) That ConocoPhillips and the State “jointly intended” that DNR could allow third parties to enter and use the land and improvements on it; 2) that issuing Santos a miscellaneous use land permit is authorized by law; 3) that 11 AAC 96.010(3) can be applied to grant Santos access to the KRU roads, although it hasn’t been done before; 4) that the enabling statutes on which 11 AAC96.010 are based grant DNR authority over leasehold improvements; and 5) that DNR’s permit is not a per se taking in violation of the Alaska a nd US Constitutions.

Addressing questions 1 and 2, in paragraph 29(e) of the KRU leases,

it says the state has the right to “enter upon and use said land.” ConocoPhillips Alaska argued that this language is limited to the land itself and does not include the road system. DNR said its interpretation of the paragraph allows the state to grant others the right to enter and use the roads in addition to the land. Guidi agreed with ConocoPhillips Alaska, noting that “there is no ambiguity as to what ‘said land’ means,” since “said land” is defined in paragraph 1 of the KRU leases and means only the actual land, so “DNR did not reserve the right to exercise dominion over the KRU roads (or any o ther improvements).”

Questions 3 and 4 both relate to Alaska Administrative Code Title 11,

Chapter 96, Section 10(3), which says: “On state land, a permit or other written authorization is required for an activity on land subject to a mineral or land estate property interest by a person other than the holder of a property interest, or the holder’s authorized representative, if the parties cannot agree on what constitutes reasonable concurrent use.” DNR’s argument was that, in this instance, because ConocoPhillips Alaska and Santos could not agree on how to concurrently use the roads, DNR had the authority to issue a permit to ensure both parties have access as they continue to negotiate. Guidi disagreed with this interpretation, stating, “Of the six enabling statutes cited as a basis for promulgating 11

AAC 96.010, the Court concludes that none provide DNR authority to grant a third-party use of private leasehold improvements; nor do any of the statutes treat ‘land’ and ‘improvements’ as one and the same.”

Guidi posits DNR’s interpretation of the statute would allow any third party to offer uneconomic terms for using a private improvement and then apply to DNR to use the improvement anyway—and for free— if the terms are rejected. He notes that during oral arguments for this case, ConocoPhillips asserted DNR’s interpretation of this statute would allow DNR to grant a third-party use of a lessee’s pipeline or even a building if it’s on state land. Guidi summarizes, “This interpretation would frustrate both the regulation’s

purpose and the Constitutional maxim of ‘maximum use’ that DNR claims to advance.”

For question 5, relating to the constitutional issue, Guidi says, “If… the parties are unable to reach agreement, and the State determines that it is in the public’s best interest that OSA have free use of the KRU Road System, the State is not without a remedy.” Eminent domain, Guidi says, would allow the state to take the KRU roads and issue permits at its discretion for their use.

Guidi concludes, “DNR cannot expropriate the roads for the benefit of OSA, without any authority, or due process, or any regard for the property procedure or fair compensation, all under the guise of a miscellaneous land use permit.”

“ConocoPhillips

Alaska welcomes Judge Andrew Guidi’s decision, which follows legal precedent and recognizes the longstanding custom and practice on the North Slope for operators to enter into commercial agreements governing third-party use of private improvements and facilities.”

ConocoPhillips Alaska

The Road Forward

For its part, ConocoPhillips Alaska is unsurprisingly receptive to Guidi’s decision, stating, “ConocoPhillips Alaska welcomes Judge Andrew Guidi’s decision, which follows legal precedent and recognizes the long-standing custom and practice on the North Slope for operators to enter into commercial agreements governing third-party use of private improvements and facilities, including the KRU road system. ConocoPhillips Alaska is supportive of Santos’ Pikka Project, which is moving forward, and has never sought to ‘block’ the use of the KRU roads for their project, other operators, or other developments. This is a longstanding practice of ConocoPhillips Alaska, and we have allowed Santos to use the KRU roads at no cost. With the judge’s decision finalized, we look forward to reaching a long-term access agreement with Santos.”

While Guidi’s order is now in effect, the question of DNR’s authority still isn’t settled, as DNR has appealed the decision to the Alaska Supreme Court, which has issued a scheduling order setting a due date for the State and Santos to submit their brief: March 5, if they file jointly, or March 17, if separately. DNR Commissioner John Boyle said in a press release, “The State of Alaska has a constitutional obligation to maximize the development of our resources… We have to confirm with the Supreme Court that we have the authority to permit access for all developers to ensure we can meet this obligation.”

In January, the Alaska Senate Resources Committee held a hearing

to gather information from DNR, via Deputy Commissioner John Crowther, and the Alaska Department of Law, via Chief Assistant Attorney General Mary Gramling, about the KRU roads and the situation.

The committee asked if there’s language in any lease or permit documents that granted ConocoPhillips exclusive use of the KRU roads. Gramling clarified that the road system was built out over time with a “mish-mash of authorizations” and said there is at least one permit from the construction period of one portion of the road that says it is a nonexclusive permit. She continued, “To your question of exclusivity, the State’s position is that the only exclusive use of the KRU leases that Conoco[Phillips Alaska] has is to extract that particular oil and gas, not other purposes.” The question remains if the “mish-mash” of permitting and lease documents support that position.

Crowther explained DNR issued the permit in order meet its “constitutional obligation to maximize development.” He continued, “We’re obligated to protect the state. And… that’s not to be in favor of one company or another. It’s not for one particular commercial agreement or another to be the preferred of the department. But it’s to look at what we are doing to support investment, to ensure that the state’s rights and reservations are protected, and to maximize value going forward.”

DNR’s concern is that, if one company has the authority to deny use of a road system or other such

infrastructure to new explorers or operators on the North Slope, it will deter interest in developing the state’s resources. As Crowther says, “The state’s position continues to be that the unrestrained or reserved right to exclude that leads to an uncapped authority to set the terms of access, including commercial terms, is not consistent with the reservations and the leases, and is not consistent with the state’s interest.”

ConocoPhillips Alaska has communicated to the State that its preference is to continue commercial negotiations with Santos and has provided Santos with an executable copy of a fully negotiated road use agreement. ConocoPhillips Alaska maintains its goal is to reach an agreement with Santos, and, looking forward, would be willing to use the fee structure in this case as a template for future developers, which it says would eliminate much of the uncertainty for new entrants onto the North Slope. The company states, “More oil in the pipeline is good for competition, tariffs, employment, and Alaska in general.”

Until now, exactly which party has what rights when it comes to certain infrastructure in the oil field has been untested, as operators and explorers on the North Slope have successfully negotiated amongst themselves, negating the need for the State to fill a role of moderation or oversight. That era has passed, and now current and prospective North Slope operators who need certainty on their rights and the scope of the state’s authority will need to wait for the Supreme Court to weigh in.

A Future Beyond 2031 Red Dog Mine

From Survival to Revival

Hilcorp’s flood of innovation at Milne Point

By Rachael Kvapil

Wh en people discuss the pioneers in the oil and gas industry, they generally point to companies like ARCO, Exxon, and bp, which initiated oil exploration and development in Alaska in the late ‘60s. However, as oil fields age, a new type of pioneer is coming to the forefront, one that can extend the life of an oil field and enhance its production beyond what was previously expected. Hilcorp is closing in on ten years of operating the Milne Point Unit and celebrating a significant oil production increase since taking partial ownership in 2014. Now, as full owners, the company attributes its North Slope success to a well-tuned strategy and innovative applications.

Going in with a Game Plan

When it comes to oil and gas production, Hilcorp isn’t about reinventing the wheel; it's about making the wheel roll more efficiently. Milne Point, a 71,000-acre oil field 25 miles northwest of Prudhoe Bay, is this concept in action. Discovered in 1969 by Conoco, Milne Point was brought online in 1985 as the third North Slope field, nestled near the coast between Prudhoe Bay and Kuparuk River. Conoco sold the unit to bp in 1994. Despite declining production, it held a lot of potential for Hilcorp when it acquired a 50 percent stake in 2014.

While most producers viewed Milne Point as an aging asset, Hilcorp developed a roadmap to extend the

life of the field and make it viable again. At the height of its production in the late ‘90s, Milne Point averaged 60,000 barrels per day; however, by 2014, when Hilcorp became the main operator and partial owner, production had declined to around 18,400 barrels per day.

Jill Fisk, senior asset team leader for Milne Point, says Hilcorp’s mission to revive aging fields boils down to a general strategy and applying specific production methods.

Fisk says the first thing Hilcorp does after acquiring an asset is arrest production to prevent the decline in production from continuing. Next, it stabilizes the field by controlling the cost of production and operating expenses in a way that is profitable

and leads to future growth. Finally, Hilcorp invests in repairing and maintaining existing infrastructure and developing additional facilities that draw more value from the field.

“Milne Point is an example of how we’ve implemented this strategy over the last ten years,” says Fisk.

In the case of Milne Point, those investments included the development of Moose Pad and Raven Pad, which provided space for fifty and sixty additional wells, respectively. Hilcorp spent $270 million for Moose Pad. Raven Pad is still in its construction phase. Overall, Hilcorp has invested $1 billion into the Milne Point unit and drilled more than 100 wells.

“To increase production, you can't just drill wells,” says Fisk. “It takes investment in surface facilities and maintaining aging facilities and aging infrastructures as much as drilling.”

A Flow State

The other game-changer that allows Hilcorp to increase production from aging fields is an innovative approach known as polymer flooding. Polymer flooding is an enhanced oil recovery method that uses high molecular weight polymers to decrease the water/oil mobility ratio by increasing the viscosity of the displacing water. It’s a method used worldwide but, until Hilcorp arrived, never on the North Slope. Traditionally, companies use water flooding to displace oil toward a production well. Of the two methods, polymer flooding has proven more effective.

When it comes to Milne Point’s second life, numbers don’t lie. Hilcorp increased production to

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“It’s important to note that we hit a high mark around our ten-year anniversary of ownership of Milne Point… And we are just as optimistic about the future of all our assets in Alaska.”

Matthew Shuckerow Corporate Manager of Alaska Governmen t and Public Affairs Hilcorp Alaska

34,000 barrels per day by 2020, which hadn’t been seen since 2008. Last year, it increased that amount to 50,000 barrels per day, triple what it produced when Hilcorp took over operations. Hilcorp estimates that number could return to 60,000 barrels per day in the next four to five years.

“It’s important to note that we hit a high mark around our ten-year anniversary of ownership of Milne Point,” says Matthew Shuckerow, Hilcorp’s corporate manager of Alaska government and public affairs. “And we are just as optimistic about the future of all our assets in Alaska.”

Additional changes occurred with regard to Hilcorp’s ownership status of Milne Point and other North Slope assets. In 2020, Hilcorp bought bp’s remaining assets, including its remaining interests in Milne Point. In 2024, Hilcorp increased its presence in the North Slope by purchasing the Oooguruk and Nikaitchuq fields from Eni, with plans to extend polymer flooding to those units immediately northwest of Milne Point. Combined with other assets in Cook Inlet and Kenai, Hilcorp is Alaska’s biggest oil and gas operator and largest natural gas producer.

Constant Improvement

Based in Houston, Texas, Hilcorp first entered Alaska in 2011 when it purchased assets in the Cook Inlet. Currently, it has more than 950,000 gross acres under production statewide with more than 1,700 producing wells. Those assets produce more than 135,000 barrels of oil equivalent per day and are staffed by a workforce of more than

1,500, of which more than 75 percent are Alaskans. Hilcorp maintains more than 700 partnerships with Alaska businesses, generating around $750 million in annual spending with state vendors.

“Hilcorp has gained a lot of experience over the last decade,” says Shuckerow. “And while other companies are stepping away from the North Slope, we are taking a long-term approach that builds on our current success.”

Shuckerow adds that none of this success comes without a dedicated team to implement Hilcorp’s strategies. The Asset Team comprises engineers and geologists prospecting new drilling areas and working with an extensive field crew to monitor production in existing fields.

Fisk says the key to achieving their goals is through quick wins and constant improvement. Besides polymer flooding, she says drilling advancements made it possible to increase production. She says working in the North Slope is very different from working anywhere else, including Cook Inlet and the Kenai Peninsula. She says understanding the logistics and operations in the North Slope was an initial challenge for Hilcorp, but the company quickly learned how to be efficient in controlling operating costs and developing new tactics to get as much value out of their fields as possible.

“Improvement is a constant challenge,” says Fisk. “We get better not by comparing ourselves to the previous operator but by comparing ourselves to what we’ve already achieved.”

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Let the Heroes Manage It

Operations support for remote sites

By Terri Marshall

Th e logistics required to optimize mine production and meet targeted deadlines are substantial and require external support across several sectors. From providing equipment to managing water, mining projects have specific needs often fulfilled by experts and specialists. There are numerous companies available to meet the needs of Alaska mining projects, from setting up field camps to providing equipment, supplies, and transportation. With so many moving parts to manage—in addition to the challenges of transporting supplies to extremely remote locations in a timely manner—mines often rely on third-party logistics managers to coordinate these needs.

Smooth Operators

Located in Fairbanks, Horst Expediting and Remote Operations (H.E.R.O.) was founded for the purpose of managing those moving parts. Company founder Josh Horst believed there was a void in the camp services industry and launched H.E.R.O. with the goal of providing affordable and personalized services to projects in Northern Alaska.

“I worked at a remote project in the Brooks Range in 2006 and 2007, and I loved it,” says Horst. “The location was beautiful and rich with wildlife, the work was physical and adventurous, and the mining history in the area was fascinating. As my duties evolved into being the person responsible for the camp and ordering supplies to be flown in from Fairbanks, I realized there was more demand than there was supply for a company in Fairbanks to support

camps like the one I was working at, so I decided to start a business and become that service.”

The camps H.E.R.O. builds are relatively small and short-term compared to other companies and other industries. “Our camps typically accommodate fewer than twenty-five people for one to three months,” explains Horst. Smaller camps typically come with smaller budgets and shorter timelines to prepare the camps.

With these projects, H.E.R.O. is tasked with creating a safe and comfortable temporary home for workers that collectively overcomes several limitations brought by the following:

x The type, size, and schedule of transport services available to that location;

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x The ground, vegetation, and access to water at the preferred camp pad;

x The size and fuel type necessary for power and heat generation;

x What is allowable under the permitting authorities; and

x Requirements for safe and responsible handling of waste.

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“Of course, this is Alaska, so we need to plan for the prevailing weather conditions and wildlife concerns,” says Horst. “Every day in our short summer season feels precious, so efficiency and long workdays are the norm.”

Supply Demands

H.E.R.O.’s routine work consists of receiving lists of supplies needed at a particular camp, locating vendors who have those supplies in stock, purchasing those supplies and boxing them for shipment,

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and delivering them to the charter service responsible for flying the supplies to the camp.

However, “Routine gives way to problem solving when the supplies that are needed are not stocked in Fairbanks and are needed on site right away,” says Horst. “Many of our clients use specialized equipment that require parts to be rushed into Fairbanks from vendors in the Lower 48 or outside of the United States. We work very hard to streamline these shipping processes to make sure the parts are received in Fairbanks as quickly as possible and then loaded onto a flight to the camp with as little delay in Fairbanks as possible. As these items often don't maximize the payload of the chartered aircraft, we simultaneously work to determine what additional items (food, fluids, lumber, et cetera) might be needed at the camp so we can add those items to the load and give the client the most benefit possible for the cost of the aircraft charter.”

On occasion, camps may not be situated on a runway. “In those instances, the logistics sometimes necessitate packaging materials so that they are prepared to be lifted by helicopter off our trucks and trailers,” explains Horst. “We work with our clients to determine a safe and efficient location to meet their helicopter, and we will go there at a designated time to send supplies to the camp via sling load. We may also send materials to a remote community by charter aircraft and then sling those materials to a nearby camp by helicopter.”

Mine operators have fewer worries when support contractors

“The projects with the most complicated and restrictive access always give us a special sense of satisfaction… Those are often smaller camps or claim staking jobs where we are intimately involved in the project and there is great camaraderie and personal connection with the client.”

Josh Horst Founder Horst Expediting a nd Remote Operations

tackle problems on their behalf. Horst says, “The uniqueness of each individual job and the logistics challenges that come with them are a big part of what makes thi s work so much fun.”

Teamwork, Positivity, and Respect

There’s no question the mining projects across Alaska present

unparalleled challenges when it comes to managing logistics and overcoming extreme weather obstacles. “The projects with the most complicated and restrictive access always give us a special sense of satisfaction,” says Horst. “Those are often smaller camps or claim staking jobs where we are intimately involved in the project and there is great camaraderie and personal connection with the client.”

The success of companies managing logistics for mining projects relies heavily on developing and sustaining relationships with suppliers. Networking is key to accomplishing all the services H.E.R.O. offers, whether setting up field camps, sourcing and procuring supplies, managing and consolidating freight, overseeing charter flights, maximizing flight payloads, or supporting contractors in the field.

“We've built some useful tools, mostly spreadsheets, which are shared with the clients in the field, which help us track orders, personnel, and flights,” shares Horst. “The most significant thing we've done though is hire great people and build collaborative relationships with the people who work at the transportation services and vendors we rely on.”

The work required to conquer these issues yields a sense of pride within the companies working together to manage everything. Horst says, “We're all in it together, we truly believe that, and when all of us do our jobs the best we can, we overcome some impressive obstacles on behalf of our clients.”

Ecommerce Expands

Physical businesses homestead the digital frontier

By Tracy Barbour

Be fore the ‘90s, brick and mortar stores sold only two things: bricks and mortar. With the advent of the World Wide Web and the electronic commerce that the internet enabled, the adjective became necessary to describe what had been the only kind of stores, give or take a mail-order catalog, since stores were invented.

Ecommerce has permanently transformed the global market. It empowers people to use computers,

tablets, smartphones, and other smart devices to purchase virtually anything—from everyday necessities to custom items and hardto-find collectibles.

Brick-and-mortar businesses are leveraging the power of the internet to reach new markets, streamline operations, and enhance customer experiences. During the COVID-19 pandemic, ecommerce saw a significant bump in activity—and the trend is destined to continue.

According to the US Census Bureau, ecommerce sales were 15.6 percent of the country’s total retail sales in 2023. The bureau projected this percentage to increase to 20.6 percent by 2027. Current US ecommerce sales are approximately $300 billion, with Amazon.com accounting for 40 percent of this.

Businesses nationwide are expanding their physical operations to support online shopping, selfserve digital tools, and other forms of

ecommerce. In Alaska, for example, Summit Spice and Tea Company purchased an existing online business; ARG Industrial (formerly Alaska Rubber Group) developed an innovative digital solution; and Alaska Arms launched its own website to replace an ecommerce platform.

A few years ago, Summit bought an online ecommerce gift box and specialty food store, Alaska Artisanal. The strategic expansion enabled the company to reach a new market and

better serve its existing customers. With the acquisition, Summit was able to quickly add an online store, along with inventory management and order processing and fulfillment systems that facilitate both retail and online sales. Today the online store features hundreds of Summit’s teas and spices, a variety of Alaskamade specialty foods, and Alaska Artisanal’s gift boxes.

“Alaska Artisanal was a good fit for Summit,” says Summit’s

owner, DeeAnn Apgar. “We were looking for a way to upgrade our online storefront, and the focus on Alaska-made specialty foods fit right in with our niche.”

Summit, which has been blending its spice and tea recipes since 1998, revamped its online presence in 2019. The timing was uncanny but perfect, Apgar says. “COVID-19 hit a few months after we launched the ecommerce site, causing major disruption to our traditional store

operations,” she recalls. “The ecommerce site allowed us to continue serving our customers through the shutdowns and enabled us to provide different options to our customers throughout the pandemic.”

A similar scenario happened with ARG Industrial, which launched a website amid the pandemic. The Anchorage company essentially wanted to “bolt a digital door” on the side of its business operations, so it began a digital transformation in 2019, according to President and CEO Mike Mortensen. Two key factors influenced its decision to add a digital component: the adoption of ecommerce by their larger customers and the realization that more than 80 percent of a customer’s buying decision happens online prior to them calling or visiting a supplier.

The initial idea was to develop an ecommerce platform to display product information, with the goal of combining local product availability and value-added services. By the fall of 2020, ARG Industrial had launched a new website that fit the bill. The platform—created by Unilog of Pennsylvania—couldn’t have come at a better time, as the pandemic precluded in-person interactions with customers. “We couldn't get out to see our customers, and in some cases our customers didn't want to come in and see us,” Mortensen says. “And without having digital tools, a lot of distributors were stuck and saw an impact to their business.”

Making the Transition

An employee-owned business, ARG Industrial provides hoses and fittings for hydraulic, industrial, food and

beverage, chemical, and petroleum applications, along with lifting and rigging products. The company’s ecommerce platform created an entirely new way to present products to customers. Although it didn’t produce immediate online revenue, the site generated a flurry of activity from people researching the company and its product offerings.

But the website was just the first step of ARG Industrial’s digital transformation journey. That’s because, in addition to selling offthe-shelf products, the company specializes in custom fabrication.

Hence, it needed a digital method to facilitate a process for customers to understand and order custom assemblies. “We're taking multiple different products from sometimes disparate manufacturers and putting them together to make an assembly, a wholly new product that solves a problem for a customer,” Mortensen explains. “And we needed a way to represent that in a digital way.”

Thus, ARG Industrial developed the industry's first online assembly configuration engine, enabling customers to self-serve. The ARG Hose Builder translates the

company’s internal knowledge into a tool, built around software that allows customers to walk through a process, answer a few questions, and custom build safe, effective assemblies online. “It's created a whole other separate company, called Intellibuild, which we set up around this piece of software, and it's being marketed to the industry,” Mortensen says. “It’s a pretty exciting digital tool, and it helped take our company in a direction we hadn't originally thought of.”

To enhance the ecommerce platform, ARG Industrial has developed additional self-serve options like online invoice payment and reviewing and accepting quotes. Larger customers can take advantage of punchout catalogs to employ their own systems to place orders, which are then processed digitally by the company. These enhancements are all designed to provide customers with a more comprehensive and userfriendly digital experience.

Alaska Arms, which manufactures firearm accessories in Big Lake, also needed an effective ecommerce solution for its business. The company had used Shopify for many years, with unsatisfactory results. The platform often misunderstood Alaska Arms’ products and blocked sales due to its internal firearms-related policies. “It was frustrating and ridiculous,” says Morris Melani, Alaska Arms’ owner. “The fees were very high, and the [sales] conversion rate wasn’t particularly high, so it wasn’t the better route for me go.”

The solution was to migrate from Shopify to BigCommerce, with Alaska Arms launching its new

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“Basically, all I have is ecommerce because I live in a village in Alaska… It’s a great way to get exposure. My sales since I transferred over have been up about 300 percent.”

Morris Melani Owner Alaska Arms

ecommerce site in 2023. The website features intuitive navigation, fastloading pages, captivating visuals to showcase its products, and a seamless checkout process, providing an enhanced customer experience. Building the site was a positive move for the company. “Basically, all I have is ecommerce because I live in a village in Alaska,” Melani explains. “It’s a great way to get exposure. My sales since I transferred over have been up about 300 percent.”

Overcoming Challenges

One of the initial hurdles Alaska Arms faced when enhancing its online presence was finding a company with the right expertise to develop the new website. The site would need flawless functionality, a seamless checkout process, and excellent technical support. Another essential element is customer service, especially after the sale.

“It’s one thing to sell someone something; the next important thing is customer support,” says Melani, who has been manufacturing firearm accessories for about fifteen years and has been a member of the American Custom Gunmakers Guild for nearly forty years.

Generating online exposure is a constant challenge for Alaska Arms, which specializes in making custom metal accessories such as scopes, triggers, and floor plates. Melani sells these parts to a wide spectrum of customers, including dangerous-game hunters in Africa, Europe, Australia, and Canada. To reach his target market, he relies on advertising in gun magazines as well as blogs, YouTube videos, search

engine optimization, and other digital marketing tactics. “Just having a website is not enough; you’ve got to be able to get it in front of people,” Melani says. “You’ve got to have those clicks; conversion rate is critical.”

For ARG Industrial, customer adoption of digital tools began slowly, but it’s now rising rapidly as more businesses source products online. ARG Industrial encountered initial resistance from employees, too, who viewed the digital platform as a potential threat to their jobs. They were concerned that customers' ability to self-serve would reduce the need for salespeople.

But over the years, employees have come to understand that digital tools allow them to offload repetitive and sometimes tedious tasks to focus on relationship building and opportunity finding. Consequently, this has led to greater acceptance of the ecommerce platform. “Our customer-facing employees see the digital tools as force multipliers for them, not as a threat,” Mortensen says.

One of the issues Summit faced when expanding its online presence was deciding what to offer in the ecommerce store. “The retail store has much more than teas, spices, and Made in Alaska products, but we needed to prioritize what we could add to the website,” Apgar explains. “We realized that those three categories were what really made our store unique.”

There were technical difficulties with designing the website. The company has three locations—a retail store, ecommerce site, and wholesale program—so setting up the technical and inventory side of

the site was extremely tricky. “It took a lot of planning on the front end to determine how to present these options to the ecommerce customer, and then how to track and manage the bulk inventory for retail and wholesale,” Apgar says. “We're still working on finding the best solution.”

Balancing Online and Physical Operations

Ecommerce entails more than simply connecting buyers and sellers; it requires a vast, often invisible, infrastructure to keep it running. Companies also must be able to balance the growth of their online business with their physical locations.

At Summit, integrating the retail store and website has been relatively seamless. For the most part, Apgar says, the web sales are “additive” to its physical store traffic, so the company has not had much trouble balancing the two. However, she says, “I think the hardest part is maintaining good inventory tracking. The store also provides a great pickup location for website customers who prefer that option.”

Apgar adds, “A full ecommerce site is an absolute must these days, but nothing can replace the in-store experience for discovering new favorites. We'll continue to invest in the physical store and use the website to expand our reach beyond our local customer base.”

ARG Industrial is also incorporating its online business with physical locations to create a smooth customer experience. The company is implementing quick-response (QR) codes in showrooms, allowing customers to instantly access

Alaska Born Globally Recognized

ARG Industrial President and CEO Mike Mortensen says launching an ecommerce platform helped the employee-owned company weather the pandemic. Its use has since expanded, allowing it to offer customers a self-service custom hose assembly tool.

Amber Johnson | Alaska Business Archives

product information and see their custom pricing—if they’re logged into their account.

Order pickup is another way ARG Industrial is bridging the gap between physical and digital customer experiences. It has introduced “willcall” pick up lockers. Customers can purchase products online or over the phone, receive a notification when their order is ready, and pick it up from a secure locker. “They don't have to come stand in line and ask somebody if their order's ready,” Mortensen explains. “They walk in and scan the code that they receive via text. The door pops open, and they take their product.”

ARG Industrial’s Intellibuild platform is proving to be a helpful

sales tool for customers, and it’s also a valuable training solution for employees. This reduces the time required for new hires— especially those with limited industry knowledge—to become proficient.

Younger employees are typically more accustomed to using digital tools. “They have a tool that’s there to help them do their job,” Mortensen says. “They’re grasping that and becoming valuable to the company very quickly.”

At Alaska Arms, the new website provides customers with a direct and easy way to peruse its products—including suggestions for related items. “I try to offer a compatible product, so there’s always an opportunity for an

upsell,” Melani says. “It puts relevant products in front of them.”

The ecommerce site enables Alaska Arms to engage with customers without the expense of a traditional physical storefront. This allows Melani to operate a small shop with just himself and computer-controlled machinery for manufacturing parts. Customers can browse the inventory online, make a purchase, and then visit the shop to have their item installed. While there, they can also receive a firearms safety check and other value-added services.

Melani attributes much of the success of his one-man enterprise to the impact of the internet. He says, “This is all possible because of ecommerce.”

INot Just a Man’s World

Voices of women in construction

By Jamey Bradbury

n a sea of flannel, denim, hard hats, and fluorescent vests, Maggy Desmond-Layral’s pink Merrell trail shoes raised eyebrows. One subcontractor took her aside.

“I remember he was like, ‘Do you need me to show you where things are?’ He was a little surprised when I handed him one of my cards and said, ‘Great. I need your numbers on the 14th, though,’” recalls DesmondLayral, who was, in fact, paying a pre-bid visit to the site on behalf of Western Mechanical, Inc.

Dmytro Sheremeta

Envato

Her pink Merrells weren’t the only thing that stood out on the construction site at the time. Simply being female, and in charge, was an aberration.

In many ways, it still is. Just 14 percent of Alaska’s construction workforce is female. According to the June 2024 issue of Alaska Economic Trends , roughly half of the women in the industry are concentrated in office jobs, holding positions like bookkeeper, office administrator, and secretary. While the largest number of women in the industry can be found in the field as construction laborers, the disparity in pay between male and female workers in nonoffice jobs is significant: women in field positions make 75 percent of men in the same roles.

But things are changing—and even improving—for women in construction. This month, in honor of Women in Construction Week, five women working in Alaska’s construction industry reflect on the challenges, opportunities, and lessons they’ve learned from navigating a male-dominated field.

Unintimidated

When Brianna Carlson looked around at the other students in her woodshop class in high school, one thing was abundantly clear: it was a man’s world.

“There were only a few of us girls in there, and in AutoCAD and construction technology. But I just was like, I know this is what I want to do. And it really didn’t intimidate me because I watched my mom go through the same thing with her career,” Carlson explains.

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PROUD SUBSIDIARY OF CALISTA CORPORATION

Carlson, who harbored fond memories of the lumberyard in Minnesota where her dad worked, started her own career as a building materials manager for Menards, a Midwestern home improvement store. There, she experienced her first encounter with defying expectations. As a twenty-something young woman, she often got asked—usually by men—to get her manager.

the event inspires more women to explore careers in construction and related fields. One of the ways to defy stereotypes and establish credibility, she says, is for women to rely on the networks they create to keep learning and growing.

Customers were surprised to hear she was the manager— and that she actually knew what she was talking about.

Today, Carlson is a project engineer with UIC Nappairit; in April, she’ll become project manager. While she was inspired by the men in her family, and by a male teacher, to go into construction, she’s been gratified to see more and more women entering the industry.

“I have seen more women in leadership roles and out in the field and in the trades, and I think that’s great. When I first moved [to Alaska], I didn’t really see that. Now that I work here, half of our team is women, and there’s more women upstairs in our other construction division,” Carlson says.

She points out that, even at 14 percent, the portion of Alaska’s construction professionals who are women is still greater than the national average, which is only 10 percent.

As co-chair for Women in Construction week, she’s hoping

“Continuing my education and joining the National Association of Women in Construction [NAWIC] has really helped me advance in my career, especially networking,” she says. “I feel like there’s this perception that women can be catty, but that’s not my experience in construction at all. We’re all here to support each other.”

Focusing on the Work

DelReal recalls, “It was just work, work, work, all the time. It can be stressful at the beginning, as you’re getting your career going.”

This is especially true for women balancing the demands of family with career—and it’s one of the barriers that can keep women from considering entering the construction field. Women acting as the primary caretakers for children or other relatives can’t always square the needs of their families with working long shifts or being away from home for extended periods on remote work sites.

Like Carlson, Randi DelReal of STG Pacific found a doorway into construction through family. A summer in high school spent working in Florida with her land surveyor grandfather convinced her that the field was for her. But when she couldn’t find land surveying work straight out of college, her dad encouraged her to try working as a project engineer at STG Pacific just to get her feet wet.

Six years later, she’s a quality control manager with the company and gets most excited by the variety of projects she’s been able to work on.

“Each project is different, and so I learn new things all the time,” DelReal says.

In the beginning of her career, she says, finding a balance between work and personal time was a challenge.

As Alaska faces a growing need for construction workers, one possible solution to the tight labor market is to make the field more attractive to female workers. Companies could explore ways to make work more flexible—a benefit for all workers, not just women—in addition to providing protective gear designed for women and creating environments protected from harassment.

DelReal also encourages women to pursue the parts of their work that excite them, as she did while working on the Long Range Discrimination Radar foundation at Clear Space Force Station, one of her earliest projects. She says, “I really grew from that project and learned a lot about concrete and reinforcement and testing. Focusing on the work alone will get you far.”

Being the Mentor She Never Had

As a single mother earlier in her career, Nichelle Smith kept her stints on remote Alaska sites short, which allowed her to be home more often

Brianna Carlson

Randi DelReal

for her children. Smith recalls, “I was able to raise [my kids] doing that work. Doing what I do now, it probably wouldn’t work—so I got lucky in that respect.”

These days, the senior project engineer for R&M Consultants spends a lot of time in villages across the state, doing quality assurance on airport projects for the Alaska Department of Transportation and Public Facilities.

To this day, she’s not exactly what people expect to see on construction sites in remote Alaska.

“Especially being a Black woman, they’re not used to seeing that. I still get, ‘Are you the secretary?’ I’ve had to prove myself over and over,” she says.

Smith came up during a time when she simply didn’t see women,

especially women of color, in the construction industry. Her early mentors were men, like the engineer in charge of interns at the US Army Corps of Engineers, where she first got exposed to construction as a potential career path.

“He was another Black engineer, and older, too, so he had gone through a lot of stuff and always had my back,” she recalls.

Now Smith tries to be the mentor she never had. She encourages younger workers to get their hands dirty, learn as much as they can, and stay current with changing technologies. She notes that a lot of work done in the field on specialized equipment has become more digitized and streamlined.

In fact, better technology is steadily making construction a more woman-

“You don’t have to wear more masculine clothes as armor. It’s not about what I’m wearing. It’s about what I know, and once I had enough confidence in that, the shoes didn’t matter.”

Maggy Desmond-Layral Vice President

West ern Mechanical, Inc.

friendly industry. According to the June Alaska Economic Trends article, women are “more likely to use assistive tools rather than rely on strength,” resulting in fewer injuries for women on the job.

lifestyle. Traveling to different villages throughout the state, she was able to partake in the traditional gathering activities she was used to from her upbringing in Teller.

Now in her seventeenth year with the company, she’s become a leader whom other women in the industry can look up to as they forge their own careers.

Nichelle Smith

Smith sees evidence of women taking advantage of the tools available on job sites, observing that younger women are getting into the field as laborers and equipment operators. “I wish I could have learned how to operate the equipment as a younger worker,” she says. “It’s cool to see. I tell interns, just learn all the tools you can and have a broad range that you can use. The more tools you have, the better off you’re going to be.”

Seasonal Benefits

Dora Hughes went from flagger to truck driver while working one summer at the Cape Nome Quarry. She’d recently completed an internship with Bering Straits Native Corporation and had gained experience flagging and working in the weigh station.

“There was some lead time, so they were like, ‘We can load this rock truck up and teach you how to drive it,’” she remembers. “They started training me in the heavy equipment, and from there we got into office work, and I collectively started taking on different duties.”

While seasonal work and remote locations can be a challenge for some workers, Hughes was attracted to the

“I remember one time, my friends landed a beluga on the beach out at Cape Nome,” she says. “I was able to go help cut it up between trucks. I loved the freedom to travel in wintertime when I was not in a salaried position. Even now, in a yearround position, I still maintain a balance between work and traditional gathering activities. It’s like, ‘Hey, I want to go fishing,’ if it’s available in the remote communities we work in.”

A More Female-Friendly Industry

Her work primarily takes her to Yup’ik communities, where she’s become a familiar face doing safety audits and hands-on training at job sites. As the health and safety manager for Knik Construction, Hughes has a knack for zeroing in on people’s preferred learning styles, tailoring her instructions and trainings to their needs.

She’s been gratified to work on projects important to her, like the emergency storm repairs Knik Construction completed in Nome after a “mega-storm” caused massive destruction to the community in 2022. “Being from there and seeing the damage firsthand and helping repair things was pretty special,” she says.

Near the beginning of her career, she set herself a goal: work for Knik Construction for ten years.

Maggy Desmond-Layral has come a long way since her pinkshoes incident. Now the vice president for Western Mechanical in Fairbanks, she is on NAWIC’s board and has the goal of recruiting more Fairbanks locals to the organization.

“For a long time, I was our token Fairbanks person, and that seemed odd. We have so many women in construction up here!” she says.

Even within the last decade, she points out, women-owned businesses and all-female crews have become less of an aberration in the industry. Western Mechanical itself is an emblem of changing times. Having started as Leonard Shaunce Plumbing and Heating, the company was renamed by Desmond-Layral’s grandfather when he purchased it. Now DesmondLayral runs the business alongside her father and intends to take over when he eventually retires.

That wasn’t always the plan. Though she grew up sweeping, doing inventory, and learning to run the forklift at her dad’s shop, she went to school for wildlife biology. But on a break from university, she returned to the family business.

Dora Hughes

Maggy Desmond-Layral

Though construction felt like a natural fit, she worked hard to demonstrate that she belonged in the field and wasn’t there just because of nepotism.

“I got a lot of those questions. ‘Are you supposed to be here? Do you know where you’re going?’ Understandably—it’s like seeing an alien coming into your community. It’s so weird for a lot of them to have a female come in,” she says.

One of the reasons DesmondLayral joined NAWIC was to grow her sense of community.

“When you’re in any sort of maledominated industry, it’s very isolating. Having that group from NAWIC, they all get it. Or going to a job site and finding there’s a female project manager—which means

at least one of the porta-potties is surprisingly clean!”

Finding tampons in a porta-potty, she adds, may sound like a silly thing to focus on. But it’s emblematic of a gradual change in culture within the construction industry in Alaska. For Desmond-Layral, it’s not about blending in or hiding who she is in order to be accepted on the job. Rather, she emphasizes that women in construction should embrace their role and allow their knowledge and experience to speak for itself.

“Wear the pink shoes!” she says. “You don’t have to wear more masculine clothes as armor. It’s not about what I’m wearing. It’s about what I know, and once I had enough confidence in that, the shoes didn’t matter. It’s about the confidence you have in your abilities.”

“I tell interns, just learn all the tools you can and have a broad range that you can use. The more tools you have, the better off you’re going to be.”

Nichelle Smith Sen ior Project Engineer R&M Consultants

Feedback to Give Back

See something, say something

By Brian Walch

Ever heard of the Vomit Comet? It’s the aircraft astronauts use to train for weightlessness. The plane climbs and dives to give passengers about thirty seconds of weightlessness with each cycle. The experience helps the astronauts prepare for the disorientation caused by the loss of gravity.

Like astronauts, employees who don’t receive sufficient feedback are operating in a disorienting environment. They might not get nauseated, but it doesn’t mean they enjoy the ride.

Managers can change that. Research from Gallup shows that employees who receive regular, meaningful feedback are far more engaged at work. If a manager wants to perform better, contribute to company performance, and help their employees thrive at work, they must become comfortable providing clear, actionable, and timely feedback.

Giving this kind of feedback isn’t the norm, though. Zippia research reports that only 28 percent of employees receive meaningful feedback at least once a week. In fact, most employees surveyed only receive feedback a

few times a year, with one-fifth getting feedback once a year or less! This contrasts sharply with the 60 percent of employees who say they want feedback daily or weekly.

Why the disparity? Many managers struggle with giving feedback and find it is one of the most challenging aspects of the role.

Why Do Managers Avoid Feedback?

It is normal for managers to struggle to give feedback. For most, it doesn’t come naturally. Addressing someone directly can be intimidating, especially if they used to be a peer.

Managers notice things but hesitate to say something. They worry they’ll make things worse or lack time to address it sufficiently. They tell themselves there will be a better time, or they silently hope the matter will resolve itself. When not addressed, minor issues grow and become problematic. Eventually, employee performance suffers, and team morale begins to decline.

The good news is that this hesitation isn’t insurmountable. With practice, managers can provide

clear, actionable, and timely feedback that improves employee and team performance. Over time, regular feedback becomes the group’s culture embraced by everyone.

Get It Before Giving It

To start, managers should lead the way and actively seek feedback.

Other team members might be just as hesitant to give managers feedback. To overcome this, managers can flip the script and invite feedback. This practice helps create a culture where giving feedback is the norm. More importantly, it is a path to accelerated personal development.

The key to getting great feedback is providing a specific area for the person to consider. This can be a skill area, a frequent situation, or a relationship. When asking for feedback, the manager should provide the observer with context and desired outcomes.

For example, “I’d like feedback on my communication skills in client meetings. I want the clients to feel more confident we can complete the work.” Or “I’d like feedback on my facilitation skills during staff meetings. I’d like to stimulate more interaction among the team.”

The person providing feedback then knows what to watch for and can provide detailed feedback. To further enhance a feedback culture, the manager should let their team know the feedback they received and what they are doing with it.

Simultaneously, managers must find opportunities to start practicing giving frequent feedback, and the easiest place to start is with positive feedback.

Find the Good Everywhere

Managers are driven to improve performance and solve problems, so they are biased to notice and react to the negative over the positive. However, managers should aim to give positive feedback at a 5:1 ratio to negative feedback.

To do that, they must train themselves to see the positive. They can begin by keeping a log of every positive event or behavior they notice. Each entry should include the employee, the action, and the impact.

For example, “Julie invited Bob to share his opinions at the launch meeting. His insights made the plan stronger.” Or “Kevin came in and said good morning to everyone. The overall mood improved.”

Keeping a log helps the manager be more disciplined about looking for positive events and provides a chance to construct their feedback. They should start practicing delivering the feedback as soon as they are comfortable.

The Art of Good Feedback

Good feedback is timely, clear, and actionable. Managers should follow these principles for high-quality feedback.

Most feedback has an expiration date. The more time that elapses between the event and the feedback, the less valuable it is. Feedback delivered past the expiration date is more damaging than not giving the input at all.

Consider an employee who is considered a problematic teammate due to their communication style on team chats. The employee might

respond angrily if the manager waits until the annual review.

“Why didn’t you tell me? I could have easily fixed that. I thought I was being helpful!”

Now they are embarrassed, upset, and have lost trust in the organization. Therefore, managers should provide feedback as close as possible to the event being discussed.

As Brené Brown says, being clear is being kind. This is especially true when managers provide feedback to employees. Clear and specific feedback helps employees understand what they are doing well, builds trust, and encourages them to continue those behaviors.

For example, instead of saying, “Great job in the meeting yesterday,” try being more specific: “You did a great job in the meeting yesterday of soliciting everyone’s opinion and listening to their concerns.”

Finally, feedback must be actionable so that employees know exactly what to do with the information. If a behavior change is needed, the manager should clearly outline the specific adjustments. For example, "Please prepare for meetings in advance, arrive on time, and be ready to participate.”

Mastering Feedback Models

One more technique managers can use to increase their confidence in delivering effective feedback is to follow a model for their feedback.

Although there are many models, the table below highlights three useful ones that managers can use immediately. These can be memorized to structure a conversation to flow smoothly and confidently.

SBI

Situation Behavior Impact (SBI)

SITUATION: Provide context for where the event occurred. Example: “When we were in the client meeting yesterday…”

BEHAVIOR: Describe the behavior observed. Example: “You took the initiative to share in-depth stats about the account.”

IMPACT: State the impact of the behavior. Example: “The client left much more confident of our ability to deliver results. Great job!”

This model is appropriate for negative and positive situations.

A variation to this model adds an additional I (SBII), which is either Intent or Improvement.

Intent includes acknowledging or discussing the purpose behind the behavior, which can reduce defensiveness.

Improvement is used when a manager wants to share how the employee can change or improve based on the feedback

Situation Task Action Result (STAR)

SITUATION: Describe the context.

TASK: Outline the employee’s task or objective.

ACTION: Discuss the actions of the employee in objective terms.

RESULT: Highlight the outcomes of their actions on the project or people.

IDEA

Improvement Direction Empowerment Action (IDEA)

IMPROVEMENT: The behavior or specific area of discussion, presented with details and facts and avoiding judgments.

DIRECTION: Clear guidance on how to change or improve performance, including a vision of success.

EMPOWERMENT: Highlight strengths, ability to improve, and support so the employee feels empowered.

ACTION: Identify and agree on specific actions to take to address feedback. This should be a collaborative discussion as opposed to a task assignment.

Habit of Feedback

Employees want to do their best. They feel engaged and fulfilled when they are doing great work, getting along with their coworkers, and helping the business grow. To achieve all of that, they need good feedback. It is part of a manager’s duty to provide it.

It doesn’t happen overnight, though. Feedback is a skill; like mastering any skill, it must be studied and practiced.

If managers build awareness of employee behaviors, they will find many opportunities for positive feedback. They must practice and build the habit of giving regular feedback so that, when negative feedback is delivered, it is well received.

The tips and models in this article are practical tools for managers to get better at giving feedback. When they do, they can end the up-and-

This model can be beneficial for more complex situations, like when conducting a project review, and can create the framework for a collaborative discussion.

This model is helpful in addressing areas for improvement with an employee and framing a productive and growth-oriented discussion.

down ride and launch their career into new orbits of success.

Brian Walch is an executive coach, consultant, and speaker on leadership development. He uses his extensive experience in people and systems to provide tools and services to empower managers to lead themselves, their teams, and their organizations. Learn more at shiftfocus.com.

INSIDE ALASKA BUSINESS

Glenfarne Group

The Alaska Gasline Development Corporation named Texas-based Glenfarne Group as the company interested in taking over the $44 billion Alaska LNG Project. The agreement would cover an 800mile pipeline from the North Slope to an LNG export facility in Nikiski. Glenfarne has a separate agreement with ENSTAR Natural Gas to advance import infrastructure in the same facility. Founded in 2011, Glenfarne has primary offices in Houston and New York. The company develops, owns, and operates energy infrastructure, such as the Texas LNG Project slated to export gas by 2028 from Brownsville, Texas. glenfarnegroup.com

Anchorage Daily News

The most-read news website and newspaper in Alaska is getting new leadership. David Hulen, a thirtyeight-year veteran of the Anchorage Daily News and its editor since 2015, is retiring effective March 15. Managing editor Vicky Ho becomes interim editor during the search for a permanent successor. Meanwhile, publisher Andy Pennington is departing to become regional president and publisher for Adams Publishing Group in Southern Wisconsin. Pennington has overseen operations since 2018, and he will continue to consult while owner and president Ryan Binkley steps up as publisher. Also, Kea Cuaresma is promoted from chief revenue officer to vice president of revenue and

community engagement, overseeing sales, subscriptions, events, and community relations. Binkley says the changes in leadership “signal an inflection point in the history of the ADN. I think when we look back on the beginning of 2025 it will mark the start of a new phase, and it’s one that I’m very excited about.” adn.com

Alaska Permanent Capital Management

Anchorage-based holding company Blue Umbrella is acquiring Alaska Permanent Capital Management (APCM), an investment advising company founded in 1992 by Dave Rose, the first executive director of the Alaska Permanent Fund Corporation. As the transaction closes this month, Blue Umbrella becomes majority owner of APCM and its subsidiary company, Alaska Wealth Advisors. Dave Rose’s son Evan Rose is stepping down as CEO to become Chief Compliance Officer, while company veteran Bill Lierman steps up as CEO of APCM. Alaska Wealth Advisors CEO Laura Bruce and her team will remain in place. Established in 2021, Blue Umbrella specializes in succession planning for middle-market companies. apcm.net

SouthEast

Alaska Regional Health Consortium

Effective on April 1, Southeast Medical Clinic (SMC) in Juneau joins the SouthEast Alaska Regional Health Consortium (SEARHC). The

addition of SMC’s internal medicine expertise complements SEARHC’s family medicine practice and specialty care expansion. SMC founder Dr. Catherine Peimann says, “Our shared commitment to recruiting and retaining highly trained and compassionate medical professionals, while bringing increasingly advanced technologies and innovations to Juneau, helps us deliver on that vision.” As SEARHC and SMC finalize the transition, the goal is to begin seeing patients as SEARHC employees at the current clinic on Willoughby Avenue. searhc.org

Ballard Spahr

The Anchorage branch of law firm

Lane Powell is now part of the Ballard Spahr organization. Under the Ballard Spahr name, Peter Michaud leads the combined firm as chair. Barbara J. Duffy, who served as Lane Powell’s president, now serves on Ballard Spahr’s executive committee. Duffy says, “Combining with Ballard enables us to bring a far greater range of services—and a national platform—to our clients.” The combination expands the firm to more than 750 lawyers in eighteen offices, with capabilities in litigation, corporate transactions, real estate, finance, and intellectual property. ballardspahr.com

Gorilla Fireworks

The pyrotechnic thriller at the gateway to Houston moved into more permanent quarters, just ahead of the New Year’s Eve sales blitz. Gorilla

Fireworks has been selling from an open-air stand along Parks Highway near Big Lake Road since 1990, but a change to municipal rules in 2009 requires an indoor structure in compliance with state fire code. After a lengthy grace period, construction began in 2019, and Gorilla Fireworks was able to move in by November 2024. Manager Samantha Bouma calls the new building a “cool” and “exciting” space. gorillafireworks.com

Bristol Bay Native Corporation

Majority and minority ownership of Alaska Growth Capital (AGC) is trading places. Bristol Bay Native Corporation now holds a 75 percent stake, after holding a minority stake since 2022, when McKinley Management acquired the business line from Arctic Slope Regional Corporation.

McKinley remains a partner and 25 percent owner and will continue to provide strategic support. Logan Birch continues as AGC president, but the company unveiled a new logo—a hemlock bough and cone—to represent “evergreen” impact on the community. bbnc.net

ConocoPhillips Alaska

In addition to a favorable court decision regarding its possession of roads across the Kuparuk River Unit, ConocoPhillips notched another win on the North Slope scoreboard as 2024 wrapped up. On December 17, the company reported first oil from Nuna, the forty-ninth drill site developed in the Kuparuk area and the first in nearly a decade. ConocoPhillips Alaska says the project was achieved ahead of schedule and under budget, using

the first sea-lifted module fabricated in Alaska for ConocoPhillips in more than twenty years. Drilling at site 3T began in September and is expected to continue for a few years, adding twenty-nine development wells, onpad infrastructure, and pipelines to Kuparuk processing facilities. alaska.conocophillips.com

IMA Financial Group

The insurance firm known as Parker, Smith & Feek (PS&F) is rebranding with the name of its strategic partner, IMA Financial Group. PS&F entered the Alaska market in 1986 and was acquired by IMA in 2021. The team of more than fifty associates in Anchorage join a majority employeeowned company with 2,700 colleagues nationwide. The firm specializes in risk and wealth management services. imacorp.com/pnw

THIS ALASKA BUSINESS

Amanda Bowles used to run a food truck in the Palmer area. She and her husband constantly set up in new locations, so she kept customers informed where to find them. “You’re killing it on social media,” they told her, so now Bowles shares her talents as Alaskan Social Media Manager, assisting small businesses statewide with cross-platform marketing strategy.

In addition to B2B services, Bowles offers a training seminar called Arctic Business Vibes. One free lesson: keep it local. That’s how Bowles can talk Palmer: her family has been in the Matanuska Valley since the ‘50s.

RIGHT MOVES

Alaska Communications

· Alaska Communications has a new top executive. The Anchorage-based telecom hired Paul Fenaroli as CEO and President. This leadership transition follows the departure of former CEO Matthew McConnell, who completed a one-year tenure. Prior to joining Alaska Communications, Fenaroli served as chairman and CEO at Kansas-based healthcare data provider Examinetics. Before that, he was managing director of Verus Strategic Advisors, a partner in the Boston Consulting Group, and an accountant with Ernst & Young. Fenaroli earned a bachelor’s degree in business and economics from Lehigh University in Pennsylvania. He holds an MBA from the Wharton School of the University of Pennsylvania, where he was named a Russell Palmer Scholar.

Systemcenter

· To lead its new Alaska endeavors, Hawai'i-based commercial furniture and storage dealership Systemcenter promoted Aukai Allen as Alaska Market General Manager. In that position, Allen oversees operations across Alaska’s commercial, military, federal, state, and local government markets by setting strategic priorities, fostering community relationships, and developing the brand statewide. Originally from Honolulu, Allen’s journey with Systemcenter began at an early age, learning the business under the guidance of President Stephan Edwards. He later honed his skills as a project manager supporting Systemcenter’s North America operations, and he played a key role in establishing the Anchorage showroom in 2024.

PND Engineers

The retirement of President and Principal Engineer Jim Campbell after nearly a decade in charge at PND Engineers brings leadership changes for the firm.

· Effective January 1, 2025, PND Senior Vice President and Principal Engineer Dempsey Thieman became the firm’s fifth President. Thieman was hired in 1995 (five months after Campbell, incidentally) and has managed hundreds of projects at PND from the Aleutian Islands to the North Slope. A professionally licensed civil and structural engineer, Thieman has overseen several large waterfront and expansive civil infrastructure developments.

· To serve as the company’s next Senior Vice President, PND’s board of directors elected Principal Engineer Bryan Hudson. Hudson has two decades of professional experience at PND, specializing in bridge engineering and waterfront infrastructure design. Like Thieman, Hudson works from PND’s Anchorage headquarters.

HDR

· Nebraska-based architecture, engineering, and construction firm HDR appointed Anna Kohl, a twenty-year veteran of the company, as its new Alaska Operations Manager. Kohl takes over for Matt Stone, an engineer in HDR’s Anchorage office who was recently promoted to Global Highways Director. Main focuses of her role are to support and elevate technical excellence and client relationships. Kohl is a certified environmental professional and has led dozens of successful projects for

RIGHT MOVES IS BROUGHT TO YOU BY NORTHERN AIR CARGO

Fenaroli

Allen

Thieman

Hudson

Kohl

public and private sector clients through permitting and regulatory processes. A born and raised Alaskan, Kohl chairs the board of the Alaska Association of Environmental Professionals and in 2024 she was added to the board of directors of the Resource Development Council of Alaska.

Coffman Engineers

· Coffman Engineers added James Wiseman to the project management team as Senior Project Manager. In that position, Wiseman works on oil and gas and alternative energy projects. Wiseman earned bachelor’s and master’s degrees in civil and environmental engineering from the University of California, Berkeley. Prior to joining Coffman, he was the capital project lead for Tesla’s first lithium refinery engineering, procurement, and construction project. Before his role with Tesla, he served as Santos’ senior vice president and project director, leading the Pikka project on the North Slope.

Alaska SeaLife Center

· A scientist with experience in public administration joins the leadership team at the Alaska SeaLife Center in Seward. Brad Ryan has been hired as Executive Vice President/Deputy Director. In this new position, Ryan supports Wei Ying Wong, who became the center’s president and CEO a year ago. Originally from Oregon, Ryan pursued a bachelor’s degree in biological sciences and earned a PhD in environmental science and resources. His specialty was bird predation of juvenile salmon. Ryan spent a decade as a research scientist with the National Oceanic and Atmospheric Administration. After selling his house and touring Africa, South America, and Central America by motorcycle, he settled in Haines, where he served as director of public facilities and later as borough manager.

A promotion and two new hires at Credit Union 1 (CU1) add to the leadership team as part of the financial cooperative’s commitment to exceptional experience for employees and member-customers.

· In his new role as Vice President of Member Experience, Tyler Hasbrouck oversees Account Services, the Member Service Center, and all branch and eServices operations. Hasbrouck joined CU1 in 2003 as a teller, and his career has spanned various roles, including loan officer, assistant manager, Member Service Center manager, and several vice president positions.

Hasbrouck is a graduate of Coastal Carolina University, and he further honed his leadership skills as a 2017 graduate of the Western CUNA Management School. He is finishing an MBA from Boise State University.

· Karri Wiggers joins the leadership team as Vice President of Human Resources. With more than eighteen years of experience, Wiggers has honed her skills in various aspects of human resources, including recruitment, labor and employee relations, and organizational development. Her deep understanding of HR practices and her commitment to fostering a positive workplace culture make her an invaluable addition to the CU1 team.

· Nicole Boswell is an influential leader in employee development, currently steering the future of workplace growth and enjoyment as the Assistant Vice President of Employee Experience at CU1. After eight years specializing in training management for financial institutions, she ventured into entrepreneurship, founding two training consultancy firms that design tailored solutions for global clients across various industries.

Wiggers

Wiseman

Hasbrouck

Boswell

Ryan

ALASKA TRENDS

In its Sustainable Investment Opportunities report from October 2022, the Arctic Economic Council (AEC) stated, “The Arctic has always been connected to the rest of the world via trade for centuries. Indigenous communities traded with each other across vast distances and the Vikings traded across the region. Walrus ivory from Greenland was sold in England centuries ago, while whale oil from the Bering Sea lit the streets of American cities.”

To acknowledge the role of business in the region, the Arctic Council intergovernmental forum created the AEC in 2014 as an independent business membership organization. Multinational corporations and small entrepreneurs join forces to facilitate partnerships, develop policies, and promote sustainable economic development in the Arctic.

The 2022 report showcases a selection of opportunities, including some in Alaska. In addition to GCI’s AU-Aleutians Fiber Project, air cargo improvements at Ted Stevens Anchorage International Airport, and the Ambler Metals mining prospect, the report spotlights a software startup. PolArctic, the brainchild of two Alaskans, is creating a system to forecast sea ice breakup and refreeze a year in advance.

One of AEC’s recommendations for action is that local and regional chambers of commerce should host investor meetings outside of the Arctic region. By going where the large financial institutions are, Arctic communities bring news of the opportunities for local investments.

This edition of Alaska Trends illustrates the top-of-the-world view from the AEC report.

SOURCE: “Sustainable Investment Opportunities in the Arctic” published by the Arctic Economic Council, 2022.

7.7M Square Miles

Or 20 million square kilometers encompass 8 Arctic nations. Of the 4 million Arctic inhabitants, 10% are Indigenous, representing more than 40 ethnic groups.

Limited Roads

The Arctic’s road networks are very sparse, with only 20% of Alaska accessible by road and zero roads between the cities of Greenland.

350 Ports

350 ports serve the maritime needs of the Arctic. Approximately 200 of these ports remain ice-free year-round.

1,300 Airports & Heliports

There are 1,300 within the Arctic Circle; 267 large and medium sized airports facilitate most passenger travel.

>100,000 People

< 100,000 People

< 30,000 People

< 5,000 People

80% of International Trade

The Arctic connects more than 80% of the world’s economy with increasingly accessible shipping channels.

$1T in Growth

Infrastructure requirements in the Arctic region alone are expected to reach nearly $1 trillion over the next 15 years.

What book is currently on your nightstand?

I’ve got a bunch of ‘em… Goals! How to Get Everything You Want— Faster Than You Ever Thought Possible by Brian Tracy; Mind Shift: It Doesn’t Take a Genius to Think Like One by Erwin Raphael McManus.

Dead or alive, who would you like to see perform in concert?

Tina Turner. Tina was unapologetically free, strong, and inspirational.

What’s your favorite local restaurant?

Double Musky Inn. What’s the first thing you do when you get home after a long day at work? I take a shower and change my clothes.

If you could domesticate a wild animal, what animal would it be? A lion because I consider myself to be a lioness… Having it around and showing the strength and courage it represents.

by

Photos

Kerry Tasker

| Location: Cedars Wholesale Floral Imports

OFF THE CUFF

Tracey Parrish

National insurance agencies extend their services into Alaska, yet Tracey Parrish stretches her insurance services from Alaska across the Lower 48. As owner and principal at Alaska Pacific Insurance Agency (APIA), Parrish counts twenty-seven other states, from Georgia to Arizona, where she and her team of eight full-time professionals provide services. However, 80 percent of APIA’s business is in Alaska, serving as a multi-offering agency. “High risk, low risk, no risk: we do it,” she says. “We do everything everybody does, and we do everything that nobody wants to do.”

Originally from Omaha, Nebraska, a visit to Alaska when she was 11 convinced her to stay. Parrish pursued a career in teaching, but she was working at a bank when a customer invited her to join Nationwide Insurance. After a couple of years, she struck out on her own, and she seized the opportunity to buy APIA in the late ‘90s.

“I clearly know who I am, which I didn’t always,” she admits. “I’m very secure in myself. I operate in confidence, and I also operate when I’m in fear.”

Alaska Business: What’s the most daring thing you’ve ever done?

Tracey Parrish: Purchasing my business under [the age of] 30 in twelve days.

AB: Is there a skill you’re currently developing or have always wanted to learn?

Parrish: Social media. I’m trying to keep up with the times and stay relevant.

AB: What do you do in your free time?

Parrish: I do nothing; my free time consists of “mental magic.” What that looks like for me is not thinking about work, not thinking about family, not thinking about issues. I just sit in my living room, and I watch the planes from my house.

AB: What’s your best attribute and worst attribute?

Parrish: My best attribute would be my connection to people. I find that I’m able to communicate with people of all types… My worst attribute, to me, would have to be: I can be defensive.

AB: What charity or cause are you passionate about?

Parrish: BRIX Foundation [Build, Revive, Inspire, Express]. It’s my organization, a nonprofit [started in 2010 originally for young women but later expanded]… I have a strong focus on elderly people, keeping them connected with their family.

AB: What’s your greatest extravagance?

Parrish: Planning events and birthdays for people I love. The best one was the event I gave [in 2023], APIA 25. That’s what we called twenty-five years in business. We sold the [Hotel] Captain Cook out three times!

AB: What vacation spot is on your bucket list?

Parrish: I have gone everywhere that I want to go. I just came from Greece, so I don’t have one. I just did all my bucket list things.

AB: What are you superstitious about?

Parrish: I don’t observe any superstitions; I believe everything is already predestined, and it’s going to be what it is. So I have to deal with stuff as it comes.

ADVERTISERS INDEX

2 Mobius Technology Solutions, Inc. .... 101 2mobius.com

Airport Equipment Rentals 123 airportequipmentrentals.com

Alaska Dreams Inc 39 alaskadreamsinc.com

Alaska International Business Center ........................................ 75 akibc.org

Alaska Pacific University .......................... 27 alaskapacific.edu

Alaska School Activities Association 13 asaa.org

Altman, Rogers & Co. 101 altrogco.com

Anchorage Chamber of Commerce ........ 35 anchoragechamber.org

Anchorage Convention Centers 37 anchorageconventioncenters.com

Anchorage Sand & Gravel 84 anchsand.com

Arctic Encounter 57 arcticencounter.com

ASRC Energy Services, LLC ...................... 62 asrcenergy.com

Arctic Slope Telephone Assoc 99 astac.net

Avis Rent-A-Car 113 avisalaska.com

Bering Straits Native Corp ..................... 73 beringstraits.com

Conrad-Houston Insurance Agency 93 chialaska.com

Construction Machinery Industrial 2 cmiak.com

Cook Inlet Tug & Barge Inc ...................... 71 cookinlettug.com

Craig Taylor Equipment ........................... 77 craigtaylorequipment.com

Crowley Fuels 31 crowley.com

Davis Block & Concrete 69 davisblock.com

Denali Commercial ................................. 103 denalicommercial.com

Doyon, Limited.......................................... 27 doyon.com

Equipment Source, Inc 43 esialaska.com

First National Bank Alaska 5 www.fnbalaska.com

Fountainhead Development 33 fountainheadhotels.com

GCI 65 gci.com

Greer Tank ................................................. 15 greertank.com

IMA Financial Group ................................. 21 imacorp.com

Invite Networks 99 invitenetworks.com

Landye Bennett Blumstein LLP 23 lbblawyers.com

Lennon Crane and Equipment Company................................ 89 lennoncrane.com Lynden 124 lynden.com

Manley Brautigam Bankston P.C. 93 mb-lawyers.com

Material Flow & Conveyor Systems, Inc. 109 materialflow.com

Microcom 3 pacificdataport.com

Mike Green Leadership 53 mikegreenleadership.com

MT Housing Inc. 55 mthousing.net

Nana Regional Corp ................................. 87 nana.com

NCB ............................................................ 15 ncb.coop

Nenana Heating Services, Inc 53 nenanaheatingservicesinc.com

Nortech Environmental & Engineering ........................................... 85 nortechengr.com

Northern Air Cargo ........................ 116, 117 nac.aero

Oxford Assaying & Refining Inc 95 oxfordmetals.com

wpcrane.com

yukoneq.com

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