AB AMES BUSINESS
M O N T H LY J U L Y 2 0 19
SANDERS NAMED NEW ISU RESEARCH PARK PRESIDENT SEE PAGE 2
NEW CHIEF RESEARCH OFFICER ANNOUNCED FOR DOE’S AMES LAB SEE PAGE 3
AB
2 | A M E S B U S I N E S S M O N T H LY | J U LY 2 019
AMES BUSINESS
M O N T H LY J U LY 2 0 19 Vol. 12, No. 7 AMES TRIBUNE Ames Business Monthly is a publication of the Ames Tribune, 317 Fifth St., Ames, IA, 50010; (515) 232-2160.
3 New chief research officer announced for DOE’s Ames Lab 4 Florida native brings his custom apparel printing business to Nevada 5 Cole’s re-opens following early April fire 6 CyRide applies for Lowor No-Emission Grant for electric buses 7 Nate Brammer: Brexit, tariffs, volatility ... so when is the next recession? 7 Walters Sanitation in Boone turns 90
Changes you will be seeing in Ames Business Monthly Editor’s note: This will be the last time you see Ames Business Monthly in this format. Why? Because we are working to revamp it, make it better and provide more business-related content you will find useful. As this is a work in progress. we can’t precisely say what that will look like, but we promise to make it more
meaningful and relateable to you as a reader. Will there be a print component? Maybe. Will there be a stronger digital presence? Likely. The name will most definitely be changing. Over the next 30 days or so, we would welcome any input from you the reader as to what you would like to see from this
publication. What content would you like it to contain? What gaps exist between local business coverage you get from other sources? We’d like your help in making this a success. Feel free to email me at mcrumb@amestrib.com. Thank you. — Michael Crumb, Editor, Ames Tribune
Sanders named new ISU Research Park president By Robbie Sequeira, Staff Writer rsequeira@amestrib.com
Rick Sanders, the former Story County supervisor, assumed his duties as the new president of the Iowa State University Research Park on June 1. The move followed Sanders’ nine-year stint with the county. Prior to coming to Ames, Sanders followed a circuitous path through the world of sorts, serving in managerial roles with a minor league baseball club in Birmingham, Ala., and an ice hockey club in Montana. He announced his decision in early May, and sat down with the Ames Tribune to talk about his new role and his goals moving forward. “I believe that any time you start to consider a change, whatever that change is, you also open the door to other possibilities,” said Sanders in an interview with the Tribune. The move seemed to be a natural one for Sanders, who championed economic development during his tenure on the Board of Supervisors. Sanders, who beat out four other finalists in a nationwide search, takes over a thriving economic hub that spans more than 400 acres and is home to
90 companies and about 2,050 employees, according to the Research Park’s website. “Rick has big shoes to fill and yet we are confident that he brings to (the research park) the network, enthusiasm, contacts, and knowledge to make an immediate impact,” said David Spalding, Iowa State University interim vice president of economic development in a press statement. “We feel Rick is uniquely poised to carry that momentum forward.” Sanders said one of his chief goals is to help the Research Park fulfill its mission to ISU in its day-to-day operations. “How do you do that? You grow,” he said. “You continue to give great opportunities to students to enter the business world, great opportunities to young entrepreneurs to take whatever their idea is and see if they can bring it to fruition, and the opportunity to maximize any technology that’s coming out of the University. We’ve got to try to make sure that we’re giving a great pathway for those (ideas) to see the light of day.” Sanders said the ISU Research Park isn’t limited to providing positive economic development benefits exclusive to Ames and Story County. “Many people view the (ISU
Research Park) as the Ames Research Park, and that’s not what it is,” he said. “It’s the Iowa State University Research Park. The only reason it exists is to help ISU fulfill its mission of positively impacting the state of Iowa. It’s so much bigger than Ames and Story County or even the cultivation corridor of Central Iowa.” For the newly-appointed president, there’s no limit on the Research Park’s influence in the state and the enumerable benefits it can bring to its host, Iowa State University. “If this is done right, the case is going to be made successfully, that the Iowa State University Research Park can and should positively impact us from river-to-river and borderto-border,” said Sanders. “And it should be another entrance point to Iowa State University and its student and talent and expertise.” Dan Culhane, president and CEO of the Ames Chamber of Commerce, said Sanders will be a good fit for the Research Park position. “I think it’s a unique opportunity for Rick and a great opportunity for the research park,” Culhane said shortly after Sanders announced the move. “His fire and enthusiasm tends
Rick Sanders resigned from the Story County Board of Supervisors to become the new president of the Iowa State University Research Park. PHOTO BY MICHAEL CRUMB/AMES TRIBUNE
to be contagious. I think his persona will lend itself well to promoting and marketing the park and the community.” Culhane said Sanders is a known commodity in the community and that will benefit Sanders as he begins his tenure leading the research park. “There’s a value to being able to hit the ground running,” Culhane said. “The first 100 days you’re looking to make as many connections as you can and a lot of that legwork is done for Rick.” Sanders said he’s thrilled to assume his new role. “I said it in my cover letter when I applied, this opportunity gives me the ability to take a very narrow segment of what I’ve worked on as a supervisor and what I’ve been most passionate about and turn it into a full deal,” Sanders said. “I’m extremely excited.” Ames Tribune Editor Michael Crumb contributed to this story.
J U LY 2 019 | A M E S B U S I N E S S M O N T H LY | 3
New chief research officer announced for DOE’s Ames Lab By Kylee Mullen, Staff Writer kmullen@amestrib.com
After a year-long search, a new chief research officer for the Department of Energy’s Ames Laboratory was announced earlier this spring and began his new duties in June. James Morris previously served as the multiscale materials theory group leader in the Materials Science and Technology Division at Oak Ridge National Laboratory (ORNL) and an associate professor of materials science and engineering at the University of Tennessee, before his selection. Ames Laboratory Deputy Director Thomas Lograsso said the search committee, “wanted to
make sure that we took the time and effort to attract the right candidate with the right experience.” The committee of Iowa State University and Ames Laboratory personnel narrowed their pool of candidates down to about three onsite Morris interviews, and announced Morris’ appointment in a press release. Lograsso is confident Morris will perform well in the role. As chief research officer (CRO), Morris will be responsible for initiating, developing and supervising the Ames Laboratory’s
scientific divisions, institutes and programs. According to a press release, the CRO also formulates and evaluates new initiatives in support of Ames Laboratory’s mission, which is to “create materials, inspire minds to solve problems, and address global challenges — often emphasizing cross-disciplinary collaborations with other DOE National Laboratories, academia, and industry.” During Morris’ time at ORNL, he served as deputy director for the DOE Energy Frontier Research Center, the Center for Defect Physics and as Lab Coordinator for the Basic Energy Sciences — Materials Science and Engineering program. He has
also has prior experience as a researcher at Ames Laboratory. “James began his professional career as a postdoctoral researcher at Ames Laboratory, and I am thrilled to be welcoming him back. His expertise in materials science and proven track record of managing successful research teams will be a tremendous asset for our laboratory,” Ames Laboratory Director Adam Schwartz said in the press release. In addition, Morris said in the release that his past experience at Ames Laboratory played a big part in his desire to return. “My earlier time at Ames showed me that their small, collaborative environment has a big
scientific impact,” Morris said. “Ames Laboratory’s scientific capabilities and reputation are world-class, and I look forward to helping the lab continue to flourish.” Morris’ predecessor, Dimitri Argyrou, stepped down from the role on July 27, 2018, after 15 months at Ames Laboratory. In announcing his resignation, Argyriou said he made the decision so that he could be closer to his family. “We are very lucky to add James to our team here,” Lograsso said. “He is a great addition to the management at the lab as well as the research staff. We are happy to welcome him back.”
4 | A M E S B U S I N E S S M O N T H LY | J U LY 2 019
Florida native brings his custom apparel printing business to Nevada Terry Scott is the owner of USA Customs and Fashion, LLC, which has opened at 1316 Sixth St. in Nevada. The business does custom printing on apparel items and also sells an assortment of name brand shoes, jewelry, already printed clothing and customembroidered hats. PHOTO
By Marlys Barker Nevada Journal
Terry Scott, originally from Florida, says he loves Iowa and the people in the Nevada area, so he’s happy to call Nevada home for his new business. USA Customs and Fashion LLC, has opened in the business complex on Sixth Street, at the northernmost end of the main street business district. In the space that once housed VT Nails, Scott offers T-shirts, sweatpants, hats, brand-name sneakers, custom-made jewelry and more. Scott, who works full-time as an equipment operator for Elder Corp., in the Des Moines area, said his full-time job is sometimes on hold for periods of time, depending on weather conditions. Laid off for a while about a year ago, he started looking into doing something in sales to keep him busy and bring in a little more income. “I just thought (designing and printing T-shirts) was something
BY MARLYS BARKER/NEVADA JOURNAL.
good to do, because if you can sell something everybody wants and needs, you’ll do good, and everybody gets up every day looking for a T-shirt,” he said. Working from home, Scott has already filled shirt orders for a couple of local businesses and for the Ames High football parents, among others. His business already has a strong online presence, where he obtains a lot of his orders. He said anything someone
wants, whether it’s for a business, for a team, for an occasion and even if it’s just one shirt that you want to buy, he can do it. “About anything a person likes, I can do,” he said, holding up one shirt from an order he just finished. The shirt shows a picture of a person on it with special wording. In addition to doing custom printing, Scott said he also displays for sale in the store a few
original designs on sportswear that he’s done that are for sale, and he also has contracted with another local person who does custom embroidery. The store already has a selection of Nevada Cubs embroidered hats on its counter top for sale. Eventually, Scott, who is married and whose three children attend Nevada schools, hopes to add vinyl lettering and decals for cars.
And, last of all, because VT Nails’ owners left behind all their pedicure chairs and manicure tables, he is looking into the possibility of bringing a nail salon business back to the store, noting it could occupy half of the space. He’d love to hear from anyone with an interest in doing nails inside his store. He’s already looking into the requirements for a cosmetology license. Scott said he was ready to move his business out of his home and into a more professional location where he could meet customers and display his merchandise. So far, he said, it’s been a good move. “Bringing somebody’s ideas to life, that’s what I really love about it,” he said. “It’s like I became a fashion designer overnight.” USA Customs and Fashion LLC, is located at 1316 Sixth St., Suite 101, and can be reached at (515) 215-2103. Its hours are 9 a.m. to 5 p.m. Monday through Friday, and noon to 5 p.m. on Saturday and Sunday.
J U LY 2 019 | A M E S B U S I N E S S M O N T H LY | 5
Cole’s re-opens following early April fire By Marlys Barker Nevada Journal
David Sturdy was a happy and very grateful man Monday. He talked about the indebtedness he feels toward so many businesses and people who helped him rebuild his business, Cole’s, following a devastating fire in early April. That fire started on a Saturday afternoon when an outside smoker caught a nearby shed on fire and then spread to the east side of Sturdy’s main building. Cole’s has recently re-opened. “To all the people (who helped), thank you so much. You’ve lifted my spirits and helped keep me going,” Sturdy said. From business people stopping in and offering him donations, to business people from a variety of places who came to help with cleanup efforts in that first week, Sturdy said the generous spirit of others has overwhelmed him. He realized he couldn’t thank
them all, but wanted to give a shout out to a few of the businesses and people who got him through the period of cleanup and reconstruction. Stephanie Auld Reynolds, who Study said has a great cake business in the local area, started a GoFundMe page for Cole’s. “Good people like that, you want to reward,” he said. Hendrickson Construction, of Des Moines, and his buddy Charlie there, he said, are a big part of his re-opening. Diamond Vogel Paint of Des Moines, “a friend there donated paint,” he said. His close neighbor, right across the street, at B Fabulous BBQ, was incredibly helpful when the fire erupted, running over to assist him. Ballard Heating and Cooling, “they’re just great. They donated a lot,” Sturdy said. Then there were other little “hole in the wall” type eating
places, like his, that did fundraisers or donated funds to help one of their own. Those include Fat Randi’s, of Van Meter, and Starbuck’s Drive-In, of Nevada. Sturdy has already started a wall of recognition for all those who helped him in any way. He’ll hang up their business flyers or put names of people up in some way along that wall to honor them for helping him make his way back. In an article published by the Tri-County Times in May 2017, Sturdy shared some history about his sandwich and ice cream shop: It was the ’50s or ’60s … when the corner shop went from gas station to ice cream shop, and most owners operated it as an ice cream shop (many will recall that it was called Dairy Sweet for a time), until Sturdy’s (older) son introduced more food to the establishment. The place is now called Cole’s, he said, because he wants his younger son to have it some day;
hoping to keep it a classic family restaurant in years to come. In the meantime, he’ll run it and bring his son along when he can, so he gradually learns everything there is to know about the place. “I’m here,” he adds, “because I ain’t going to sit on the couch and die of a heart attack just sitting there. I’m here doing something I love (for people that he loves).” Sturdy also shared in that article about his support of veterans and why he is committed to that cause, which has to do with his oldest son, Brandon Sturdy, who was a Special Operations Marine and was tragically killed in action in Iraq in 2004 at the age of 19: Brandon created the recipe for the tenderloin, and now his father is the only one who has that recipe … After Brandon was killed … (Sturdy) had to close the place for about 11 years. “I had to work. I was a heavy equipment operator,” and he needed to work long
enough to secure his pension. And when he did, then Sturdy came back to open the restaurant, giving a part of its profits every month to the Wounded Warrior Project, a charity and veterans service organization that offers a variety of programs, services and events for wounded veterans of the military actions. It was started following the tragedy of Sept. 11, 2001. “I support Wounded Warriors in his honor,” Sturdy said. It was fitting that in only its third day of being back open following the fire, a National Guard member, Tyler Pasut, of Ames, just happened to stop in for a tenderloin and a shake. Sturdy got right to work, pounding Pasut out a tenderloin and watching over it as it cooked. Was Pasut glad to see the place open again? “Very much so,” he said. Sturdy looked around and declared that the re-opened restaurant was better than ever. All the work that has taken place, he said, “gives you fresh ideas, fresh paint, gets rid of a few problems … it’s like a brand-new building.”
6 | A M E S B U S I N E S S M O N T H LY | J U LY 2 019
CyRide applies for Low- or No-Emission Grant for electric buses By Robbie Sequeira, Staff Writer rsequeira@amestrib.com
CyRide, the city of Ames’ public bus system, hopes to acquire two battery-electric buses by 2023 after applying for a grant in a highly-competitive Low or No Emission grant program. According to Barb Neal, CyRide’s interim director, CyRide’s decision to apply for the grant process is to further its role in the city’s cooperative approach to sustainability as well provide a much-needed vehicle replacement. “I think one of the benefits we can point to is, how much greenhouse gas we would be eliminating in a switch to battery-electric buses,” Neal said. “I think sustainability is what the community is looking for, what the city continues to work toward, so we think it fits well with how can fit into that mission.” The Low or No Emission Grant is a highly-competitive federal
grant process, with nationwide transit agencies competing for the same pool of available funds. The program provides funding to state and local governmental, agencies to purchase or lease zero-emission and low-emission transit buses from an available pot of $55 million per year until fiscal year 2020. If selected, the grant would fund the purchase of two electric buses, and also fund the engineering, design, and construction of supporting infrastructure within the CyRide facility. “Because our funding can be so tight, if we’re able to apply for a grant that can provide two buses plus afford us additional opportunities to continue to address infrastructure needs, then it’s an easy decision to go for it,” Neal said. Around the country, more transit agencies have shifted toward purchasing more batterypowered electric bus, and these trends are expected to accelerate,
with half of the world’s municipal bus fleet opting for electric vehicles by 2025, according to Bloomberg New Energy Finance. Battery-powered electric buses use battery packs to run an electric motor to turn the wheels, the same as battery-powered electric cars. The batteries are recharged by plug-in chargers using electricity and have environmental benefits due to a lack of dependency on gasoline or diesel. Conversely, a report from Energy News documented concerns about battery-powered electric buses, mainly that some are finding that the vehicles can struggle in inclement weather or on hills, or that they don’t have enough range. CyRide applied for just over $1.6 million in federal funding, which would require a maximum local match of $455,620. Neal said that the Ames Municipal Electric Department has committed to a one-time local match for the application.
Through a Low or No Emission Grant, Cy Ride could join the vastlyexpanding municipal bus systems that are switching their fleets to battery-powered electric buses. PHOTO BY ROBBIE SEQUEIRA/AMES TRIBUNE
J U LY 2 019 | A M E S B U S I N E S S M O N T H LY | 7
Brexit, tariffs, volatility ... so when is the next recession?
O
ne of the questions I hear most often is, “When is the next big stock market downturn?” Often what they are really asking is, “When is the next recession?” Recessions can be complicated and scary, but they are often misunderstood. There is so much information floating around in the world regarding financial topics that it is difficult to discern what to believe. Even listening to perceived experts can be challenging for the average investor. The joke is if you ask two economists the same question, you will get four answers. However, with U.S. economic expansion now 10 years old, investors may be wondering whether the next recession is just around the corner. Unfortunately, economic cycles are notoriously hard to predict, but it is never too early to be prepared for the next downturn. Let’s talk about recessions. First, what is a recession? It is usually defined as at least two consecutive quarters of declining
Nate Brammer of the Gross Domestic Product or G.D.P. after a period of growth across the whole economy. The National Bureau of Economic Research has a fancier definition. It is “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment,
industrial production and wholesale-retail sales.” Recessions are caused by an imbalance in the economy. In 2008, the recession was caused by too much easily assessible debt in the housing market and in 2001, it was caused by an asset bubble in the technology stocks. The last 10 recessions, since 1950, have lasted between 8 to 18 months, but on average they have lasted about 11 months. Less than a year is relatively short term unless of course you have lost your job or are struggling with other financial issues or planning to retire. Like in the 2001 and 2008, during a recession, the stock market can decline for a few months, but usually rallies before the economy starts humming along again. However, things can vary widely between different economic cycles. Wouldn’t it be great to know when the next recession was coming? As stated above, it is nearly impossible to determine the exact start of a recession.
Walters Sanitation in Boone turns 90 By Logan Kahler
Managing Editor lkahler@newsrepublican.com
After nearly nine decades of service, Jim Walters is reflecting on the past and looking to the future of the garbage business his company began in 1929. Walters, 56, of Boone, recently talked about how much the waste management industry has changed, and his family’s business, Walters Sanitation has accommodated to those changes. “It’s insane, back then they were just shoveling ashes with one guy and a tractor,” said Walters, the fourth generation of his family to run the business. “Now we’ve got 17 vehicles
and one even has a freakin’ arm grabbing your trash!” That arm, Walters said, is a piece of mechanical ingenuity that has made an incredible impact on the collection of an increasing amount of waste in the wide range of communities his company serves. According to James, an average household throws out somewhere between 45 to 50 pounds of trash a week. With the growing population in and around Boone, it’s been necessary for the Walters family to up the fleet of trucks to hold the high volume of trash, considering one truck can handle roughly five to eight tons per load. After winter ends, Walters takes a deep breath and cracks
his knuckles because he knows his crews’ work will nearly double during the warmer months of spring and summer. People’s annual spring cleaning is a contributing factor to the increased workload, he said. Looking toward the future, he hopes to expand the family’s company even further and add a couple more counties before he retires and passes on the torch. Walters Sanitation currently serves communities in Boone, Story, Hamilton, Dallas, Greene, Dallas, and northern Polk counties. One of the most common questions he get’s asked recently is, “How’s business going to be this summer?” And with a little chuckle, he says, “Well, it’s going to stink.”
However, it is interesting to note that every U.S. recession in the last 50 years was preceded by an inverted yield curve. An inverted yield curve is when investors can earn more interest on our money over the short term such as 2-year Certificate of Deposit versus investing in a longer maturity such as a 10-year government bond. Typically, the longer we are willing to invest our hard-earned money the higher the interest rate we should receive. Economists watch to see when 2-year interest rates rise above the 10-year interest rates as a leading indicator that a recession is headed our way. It happens when investors are uncertain about the near-term economy and purchase longer term bonds driving down the yield/interest rates on those bonds. How should we position our retirement accounts? To prepare for a recession, investors should take the time to review their overall asset allocation, which may have changed significantly
during this bull market. Ensure that your portfolio is broadly diversified across both the U.S. and Internationally stock and bond markets. Assess how much risk you are truly comfortable taking with your investments. What would be the impact on your retirement goals if your portfolio lost 10 or even 20% of its value? Next, choose investment managers that have managed portfolios through challenging markets as well as favorable markets which translate to investment track record of longer than 15 years. Most importantly stay calm and keep a long-term perspective. Consulting a financial advisor can help immensely during times such as these that are often wrought with emotional decisions for investors. NATHAN D. BRAMMER MBA, CIMA®, AIF® is a principal and investment advisor at Marrs Wealth Management. He can be reached at Nate@marrswealth.com
Walters Sanitation in Boone is celebrating its 90th year in business this year. CONTRIBUTED PHOTO
8 | A M E S B U S I N E S S M O N T H LY | J U LY 2 019