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Contents
THE MAGAZINE FOR GROWING BUSINESSES IN SOUTHERN MINNESOTA
8 Impressive Energy
STAFF & CONTRIBUTORS Editor: Grace Webb Art Director/Staff Photographer: Kris Kathmann
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Advertising Manager: Steve Persons
Burt Lyman is no stranger to change and progress, switching careers several times before he landed in Mankato as the executive director of the Verizon Wireless Center. Now he’s guiding the center through its biggest change yet, courtesy of a $30 million expansion project.
Contributing Photographers: Art Sidner Contributing Writers: Deb Schubbe, Dakota L. Wood Production: Becky Wagner Circulation: Becky Wagner Printing: Corporate Graphics, N. Mankato
Memorial Service
Mailing: Midwest Mailing, Mankato
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Cover Photo: Kris Kathmann
When Mark Beito started his funeral supply business in 1990, he had no business experience except what he knew from running a newspaper. Now, his business has taken off so much that he’s had to expand four times.
Community Furnishings
CIRCULATION 8,800 for May 2015 Published bimonthly
CORRESPONDENCE Send press releases and other correspondence: c/o Editor, Connect Business Magazine P.O. Box 452, Nicollet, MN 56074
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For nearly 70 years, the Ankeny family has operated the same business in the same building in Blue Earth. Current owner Bruce Ankeny has weathered several changes to the business while maintaining the reputation built by his father and grandfather before him.
E-mail: editor@connectbiz.com (please place press releases in email body) Web: www.connectbiz.com Phone: (507) 232-3463 Fax: (507) 232-3373
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ABOUT CONNECT
Editor’s Letter
6
Business Trends
22
Bulletin Board
24
Grace Notes
26
Connecting Back
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Hot Startz!
48
Press Releases
51
National Opinion
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Numerous threats from overseas enemies are increased even more as America’s military approaches pre-World War I levels. 4
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MAY/JUNE 2015
Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising. Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, web design, illustration and photography. conceptanddesign.com
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Copyright 2015. Printed in U.S.A.
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EDITOR’S LETTER
Change Is In The Air Change. It can be frightening. It can be difficult. It can be unpopular. But sometimes, it can open the door to opportunities that never could have existed if you didn’t take that uncertain first step. The May issue of Connect Business Magazine is all about three professionals who have seen great changes in their personal lives and their business experiences. First, there’s our cover story, featuring Burt Lyman, executive director of Mankato’s Verizon Wireless Center. Lyman has an exhaustive resume that spans several industries, from owning his own business to running a national marketing company. No stranger to change himself, he’s now leading the Verizon Wireless Center through the biggest change in its 20 year history: a $30 million expansion project that promises to bring millions of dollars of economic impact into the Mankato area. Then there’s Mark Beito of Mark Thomas Co., a funeral supply business that sells to funeral homes nationwide and works with partners from around the world. In the 25 years since he started his business in Sleepy Eye, Beito has overseen four expansions as the company just keeps growing and refining itself. Finally, there’s Bruce Ankeny of Ankeny Furniture, a third-generation furniture store owner whose building has been the site of everything from a roller rink to a bowling alley. As his family has managed the different businesses within the building, they’ve learned what works and what doesn’t to offer the best business possible to customers. We hope you enjoy this issue’s selections. An veritas, an nihil, Grace Webb
CONCEPTUAL IMAGE OF VERIZON WIRELESS CIVIC CENTER EXPANSION
I+S GROUP Enriching everyday experiences. A wide variety of people—from citizens to visitors alike—embody the spirit of each community and make it unique. At ISG, we value and strive to wholly understand our clients’ aspirations and enrich each experience with inspiration. Nowhere is this goal more intricately important than when working with our civic and cultural clients. Since public and group stakeholder involvement is the cornerstone of these projects, it’s our commitment to listen and bring a multitude of ideas together. The outcome is a building or space that is functional, dynamic, aesthetically pleasing and a reflection of the people who spend time there—a place of distinction, unique to them.
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By Grace Webb Photo by Kris Kathmann
Civic Center Executive Director uses $30 million expansion project to bring new wave of economic impact into the Mankato area.
The Verizon Wireless Center, located in the heart of downtown Mankato, is a thing of multifaceted beauty. Built in 1995 for $23 million, it has blossomed into one of the very anchors of the city itself, more than repaying its initial costs thanks to the roughly $47 million in economic activity it generates each year. The way it drums up that business is dizzyingly diverse, from adrenaline-drenched hockey games to formal business conventions. The schedule is wonderfully disjointed, a little bit of everything and therefore surely something for everyone. While there may seem to be no rhyme or reason to a center that books pop superstars back-to-back with insurance conventions, the Verizon Wireless Center infuses all its activities with a sense of crazy energy and manages to mix them into something overwhelmingly successful—something that has been growing more successful with every year. If there’s one constant underlining the whole wonderful mess of activity, it’s that nothing stays constant: the center is continually growing, progressing, building and
improving. In a word, it’s always changing. It makes sense, then, that its executive director is the same way. When Burt Lyman starts to tell you about his life, it can be exhausting to follow the myriad of changes he’s experienced. He’s owned his own business, worked as national marketing director for a multi-million dollar company, lived out of his suitcase promoting the Harlem Globetrotters and even tried his hand at telemarketing. He has an impressive energy, diving headfirst into every opportunity that proves worthwhile. And he believes in not only the importance of change but the necessity of it—of always looking for ways to do things bigger and better. Now, he’s guiding the center through its biggest change yet—in the form of a $30 million expansion project that will fundamentally redefine its place in Mankato’s economy. But Lyman isn’t worried. He’s excited. continued > MAY/JUNE 2015
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Impressive Energy
Tell me a little about your childhood. I was born in Minneapolis and generally raised until about eight or ninth grade in the Maple Plain/Mound area of Minnesota, which is on the western side of Lake Minnetonka. I went to the local schools in Mound for the first several years of my education and then, in my sophomore year, I went to Shattuck-St. Mary’s, which is a preparatory school in Faribault. What lessons did you learn from your parents? One of the things I’m very grateful my dad taught me, right after I graduated college, was to save your money for retirement. I did, and that presented opportunities for me later because I wasn’t living hand to mouth, so I was able to take some risks that maybe I wouldn’t normally have taken because I had savings. My parents also taught me to work hard, and that’s very important. And both my parents always said, “Do something that you love to do, and be the best you can.” And in this case, I really love what I do, and I do my best. I’m not the best, but I do my best. Why did you switch from the local public schools to the private boarding school? On my dad’s side, all his brothers went to the boarding school, and on my mom’s side, she went to the girl’s portion of the boarding school. It was inevitable that I would attend.
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Once you graduated from Shattuck-St. Mary’s in 1984, you attended the University of Minnesota to study economics and Latin American history. Why did you decide to major in economics? I always liked economics. My dad was a stockbroker, and, like a lot of kids, you ask a lot of questions about what your dad did. We would talk about his job, and the Economist and the Wall Street Journal were always around the house. I wanted to be a banker.
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So what was that like for you? Which school system did you enjoy more? I think at the time, I probably would have liked staying in the public school, because you get to go home and go out with your friends at night. But at the same time, I realized I was getting a much better education at the boarding school. One of the things they do there is ensure you’re doing the best you can. So say the best you can do is being a B student—they just make sure you’re getting B’s. If the best you can be is an A student, they make sure you achieve A’s. They also instilled a good work ethic. You had to try hard. The class sizes were small—sometimes 6-8 people in a class. So there was a lot of attention given to you. And your day was very structured: you had to study during a certain time in the evening and then it was lights out. It had some real long-term life advantages.
What about that Latin American minor? That doesn’t really seem to connect. I guess I’ve always been fascinated with Mexico and Latin American culture, but I can’t tell you why. I took Spanish as much as I could, all the way through college. I’d like to say I’m fluent, but I’m not.
Burt Lyman | Verizon Wireless Center
Impressive Energy
100% FACTORY IS T A S RATING* Courteous
A Project With A Long History It’s been a long road when it comes to the Verizon Wireless Center’s $30.5 million expansion project. The city of Mankato lobbied the state legislature for years before the project was finally put on Minnesota’s bonding bill in 2014 and approved—authorizing $14.5 million in state money for the project. The rest of the project will be funded by Mankato, through a local option sales tax. The first part of the project revolved around the demolition of the 20,000-square foot former U.S. Bank Building on Second Street. While Mankato officials first considered remodeling the building, constructed in the 1970s, for convention center space, they decided it didn’t make economic sense after a building analysis was completed, since it would have taken about $4 million to renovate. The demolition, which occurred late last year, cost about $300,000. The next part of the project includes constructing new locker rooms, updating the hockey facilities (to the tune of $6 million), and adding offices for coaches. While the civic center is already home to the MSU Mavericks men’s hockey team, these changes will allow the women’s team to move from All Seasons Arena to the center as well, for both practices and games. In addition, the project will also expand the center’s concession stands and add a performing arts center that can seat 2,100-3,000 people. This expansion will allow the civic center, which can currently host conventions of around 600 people, to host events for 1,0001,200 participants. The project will be completed by June or August 2016.
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It’s all up there, but sometimes pulling it out there is tough. I travel to Mexico on vacation regularly, and practice up, and usually by day three I’ll dream in Spanish. It’s funny, because in my dreams, my Spanish is much better than in real life. Even my accents are better. I secretly always desired at some point in my career to work down in Mexico. At one point, when I was out of college, I did interview with the president of HP Fuller Corp., and he had some jobs down there, but, because I wasn’t completely fluent, he wouldn’t send me down. What did you do once you’d graduated? Well, technically I graduated in 1992, but I finished all my coursework besides my senior thesis in 1989, which was when I started working. I went out and did find a job at a bank, Richfield Bank and Trust, but I didn’t realize that even with a good degree in economics from a school that’s known for economics, you start at the bottom. My first job was sitting in an office with about ten people looking at microfiche to look up data. Anybody who knows me knows I don’t even like to sit down, let alone do something very excruciatingly detailed. I remember within a couple hours, looking up at the clock, and I swear it was going backwards. I quickly realized that banking is very detail oriented. Even looking at the whole institution that I worked at for a grand total of one week, it just wasn’t for me. You only stayed a week at your first job? Give or take a few days… Prior to getting that job at the bank, I’d been calling various people around the Twin Cities to get informational interviews for a class, and a guy ended up calling me back on Wednesday, two days after I started at the bank. He happened to own the Ice Capades and Harlem Globetrotters. And even though I already had my job at that bank, I still agreed to meet with him, just on a whim. So I went and saw him that weekend, and at the time, they had just had someone on their promotion team quit. By the time we’d finished talking, he asked, “Would you
like to be a promoter?” I didn’t even know the job existed at the time. But I said yes. The following week, I drove up to Duluth, where the Ice Capades was preparing to launch their season, and I interviewed with their president. The next day, they called me and offered me a job. So you went from banking to marketing. What was that job like? They told me to pack two giant suitcases and plan on not coming home for at least six months. I assumed there was going to be apartments or something, but they said I was going to live on the road. So I packed my bags and flew out to Hollywood. I spent a period of time training at their corporate offices, and then I hit the road. I went everywhere from Orlando to Dallas to Toledo to upstate New York, all over the country. Literally, week-to-week, I’d go to these various places learning the job, and after I was trained, I became a promoter with them. All that travel must have been difficult. It was. I really enjoyed the job, but after about a year, not having a home base was really starting to get to me. And I happened to get a call from a company called Vee Corporation, which produces “Sesame Street Live.” At first, I thought it was one of my coworkers, just joking. It took the woman about four tries before I finally said, “You’re serious?” So I interviewed with a person while I was on the road, and ended up getting the job. They were based back in Minneapolis, which was great for me. So I still did the travel but I had an apartment to come home to. And the funniest part was, nobody forgot my name because I was Burt with Sesame Street. You stayed with the Vee Corporation about a year and a half. What came next? I received a call from a corporation named Ogden in 1992, and they were looking for a marketing director to help with their FargoDome project in North Dakota. That was a great learning experience. I worked 7 a.m. to 10 p.m., six days a week, for 7-8 months to get the building open. My job was to go out and sell sponsorship,
Burt Lyman | Verizon Wireless Center
bring entertainment into the facility, market that entertainment and do the public relations for the building. The building opened, and it did very well. So about five months later, I got a call from their corporate office in Rosemount, Illinois, and they asked me to be the national marketing manager for their facilities in the United States. And I took the job. I’d travel around to the various facilities that Ogden managed, to work with their marketing directors. I was probably on a plane once a week. But being young and single, that’s not such a bad thing. Then an old coworker from my time at the Ice Capades called me and said he wanted to start a business, and he asked if I was interested in partnering with him. We founded Larson Lyman & Associates back in Minneapolis, and we were basically doing the same thing we’d always done:
promoting family shows and sporting events, and working with facilities to help them maximize their ticket sales. It was just the two of us in the office, and my little brother, who was our intern. What was it like running your own business instead of working for someone else? When I first started, it was really scary. I left a pretty good paying job at a fairly young age to do it. At first it was hand to mouth, and that was tough; we learned a lot about cash flow and how a lot of people don’t like to pay on time. But we worked through it. Eventually my business partner, who had a couple of children, really couldn’t justify it. He just wasn’t making enough money. But for one person, it was plenty of money to make a good living, so I ended up buying him out in 1996.
Impressive Energy
Getting to know you:
Burt Lyman Family: wife Star, cat Dexter Education: University of Minnesota, industry-related course work at Cornell University Favorite subject in school: Economics Hobbies: traveling the world, running, golf, skiing Lives: on Lake Washington Most valued tangible possession: “My books. I collect leather-bound books, especially the classics. My favorite author is John Steinbeck. He doesn’t use big words or fancy words, but he’s able to communicate effectively in plain language. I’ve read everything he’s written, probably two or three times over.” Most valuable intangible possession: “My family—and that includes my cat.” If you didn’t have this job? “I’d go work somewhere in Latin America… if my wife would agree.”
Impressive Energy
So what brought you to Mankato? I received a call in April 1997 to come down here to work at what was then the Mankato Civic Center as a consultant for Compass Facility Management—now Venue Works. They needed help selling signage, sponsorships and suites. The person who managed the facility at the time left, and the management company asked if I wanted his job. I thought about it, because I had a business, but it wasn’t the kind of business that was going to grow by leaps and bounds. Many people think just because you have your own business, you’re going to be rich, but it doesn’t work that way. And I was getting a little sick and tired of chasing people and collecting money, so it worked out nicely. At first, I did both, but it wasn’t very long before my old business dissipated and went away, because the job here was all encompassing and needed my full attention. Eventually, that management company left the facility, and I stayed. I really quite honestly didn’t think I’d be here more than a couple of years, but I love Minnesota and I love Mankato. I’m very fortunate because I have a great team of people I work with on many different levels, and they are all amazing. The operation here is not about me, it’s about a team effort. So how exactly do you fit in with the city? Instead of coming on as a city employee, I came on as an independent
contractor, more or less. There are advantages to that, particularly when it comes to sales. It allows me to have some flexibility that I wouldn’t otherwise have as a city employee. I’ve heard that it can be very difficult working in the sales business. That’s a really key point. If I believe in what I’m selling, it isn’t sales anymore. What I want to do is create a situation where the sale makes sense for the business and for us. It’s not like the movie, “Glengarry Glen Ross,” when you’re on the phone cold calling. I’ve found over the years that if it’s not the right fit, then it’s not good for anybody. For example, my policy with respect to suites is, if someone purchases a suite and it doesn’t work out for them, I want to know. Even though contractually they might be bound for five years, it doesn’t make sense to have somebody in a suite who’s unhappy. So we’ll work to secure another sponsor who is interested in the suite and might be a better fit. I think it’s just fitting the two pieces of the puzzle together. Have you ever done cold calling? I had a lot of odd jobs during college, and I did have a telemarketing job. I was soliciting companies for quotes on their insurance. During your first three calls, you’re shaking and you don’t know what to say, but of course, after a couple of weeks, it’s easy.
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Burt Lyman | Verizon Wireless Center
Did you have any jobs before that, like in high school? I always liked to work, even as a little kid. My first job was working for a veterinarian, and I learned a lot. Besides that, I mowed yards, I caddied, I valet parked… I always had a job. I think in college, I always had at least two jobs at the same time. I wasn’t any different than any of my other Chi Psi fraternity brothers. Everybody seemed to work during college—you had to. If I had never had a job and walked into my first job, I would have been worthless, not understanding things like showing up on time and doing tasks even if I didn’t enjoy them. Even today, there are things in my job that I really enjoy, and things that I don’t. But you get to do them both, and you learn that. What are some of those things in your current job you don’t enjoy? (Laughs) Now you’re really going to get me in trouble here. I think sometimes, the politics of this job can be a bit frustrating. But that comes with the territory. I talk to managers all over the country, and we’ll talk about the political situations, because that’s usually one of the more difficult components of the job. I will say, all that being said, Mankato’s an extremely well run city. I report to the city manager, Pat Hentges, and I’ve really enjoyed a good relationship with Pat. He’s been there since I started, and he has done wonderful things for this community.
There are many communities out there that really don’t allow the staff members at a particular facility to maximize its economic impact because of unnecessary politics. That environment does not exist here in Mankato. You start off by being Minnesotans, which means you’ve got a step up on a lot of other states; people from our area are generally very practical and reasonable. What about some of the good parts of your job? The good stuff is working with the team of individuals I work with. It’s fun to be part of it. It’s fun to see new people come in and bring new ideas. I really enjoy the staff, I enjoy the community, and it’s so interesting watching Mankato grow from what it was 17 years ago, when I came to the civic center, into what it is now. It’s remarkable, and I feel in a very small way that I’ve been a part of that. Tell me a little about the changes you’ve noticed in Mankato. There’s always something new. I remember when I first came downtown, the mall was empty. There wasn’t all the activity that’s going on now. As general rule, if you don’t have a healthy downtown, you’re not going to have a healthy community. I think Mankato has done a very good job of creating a vibrant downtown, and it takes a lot of volunteer work by a lot of people to make that happen. I just look forward to the next five years, to see what lies ahead. There are a lot of communities that aren’t as successful as Mankato.
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This community is fortunate because there is good leadership with respect to the city council, the city manager and the deputy city manager. Additionally, in the Mankato area, there are a lot of very engaged business leaders that stay engaged not only with respect to financial commitments, but with their time and talents. They use their knowledge base to make this community better. When it comes to our air show in June, roughly 75 percent of it is produced by volunteers. I think that says a lot about Mankato. So what does your job entail? Kathy Volk might be able to answer that better than anyone; she has been around a couple of months longer than I and makes sure I’m doing what I should be doing. But I feel one of the most important aspects of my job is to clear the way for the rest of the team, so they are able to successfully do their jobs. The staff here, they work very, very hard, and they all know what their roles and responsibilities are. Most of them here are here many, many hours a week, sometimes working overnight and even 24 hours straight. Obviously in this business, one works a lot of weekends, too. I am fortunate in that everybody here is extremely dedicated. We have an unwritten policy that I don’t tell people when they have to be here. They know. Many times, I find myself telling them to go home and spend some time with their families. We have a budget to balance, I review contracts, sell suites, and sell sponsorship. Right now, one of the biggest parts of my job is to sell sponsorship for the upcoming air show. We also oversee Vetter Stone Amphitheater in Riverfront Park, making sure it is ready for summer, and the team is in the midst of the event center expansion being headed up by our operations manager, Steve Conover. That, in itself, is a 40-hour-a-week job, but Steve takes everything in stride and manages to look after the rest of the building besides. There is a lot of activity around here: conventions, meetings, banquets, MSU Mavericks hockey. We try to keep the center as busy as it can be, because if it’s busy, it’s generating economic impact, filling the City Center bars and restaurants and area hotels. I see the civic center as one of the engines that drive economic impact.
Burt Lyman | Verizon Wireless Center
But at the same time, while staying as busy as we can be, we have to make sure to produce events successfully. We don’t want to fall down on events. If we’re doing a big concert, we want to make sure we have all our ducks in a row, because if there’s a problem, it could be a catastrophe for the facility, not only locally but nationally. That’s why this last Elton John concert (in 2012) was such a big deal for us, because we were able to successfully pull off a major, worldwide-recognized artist, sell out in a number of minutes, and then successfully produce the show. Elton John was one of the biggest names in music—if not the biggest name—you’ve ever hosted at your facility. How did that affect your reach moving forward? It showed the rest of the entertainment industry that Mankato, even though it’s a smaller community, can host an artist of that magnitude, as well as sell the number of tickets it did as fast as it did and at a fairly high ticket price as well. And hats off to Eric Jones, who worked doggedly with the promoter for years to route Elton John through Mankato. That helped us turn the corner here; we’re not going to have Elton Johns every year, but Mankato is getting looked at by bigger artists who wouldn’t have looked at us before. The venue’s image and reputation in terms of outside Mankato, in terms of the music and entertainment industry, is important to preserve, because if you don’t have a good reputation, artists are not going to play here—particularly because we’re not a must-play market. Minneapolis, New York, Los Angeles—those are must-play markets. We’re what I call a tertiary market. We have to go communicate to these promoters and agents that we are a viable entity and that they can successfully produce a show here. With Elton John, we showed them that we can do it, we can take a top tier worldwide act, produce it, sell tickets and have the artists, producers and agents make money. You say you try to keep the center as busy as possible. How many events did you host there last year? We had more than 700 events last year, from meetings of 10 people to MSU hockey games.
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In 2013, the center hit the $1 million mark in concession sales for the first time. Add in all these shows, and I’d think you’re making great profits. Actually, in reality, public assembly facilities like the civic center are breakeven propositions. That’s not to imply we don’t want to make money. However, these facilities are designed to generate economic impact. In general, if public assembly facilities made a lot of money, then private business would build them. We strive to maximize our revenues and minimize our expenses, but these are very expensive facilities to operate. It takes a lot of work and labor to keep the people coming through with conventions, meetings, sporting events and concerts. And there is a lot of competition out there. Mary Brown, who retired late last year, did a great job of managing the hospitality side of the civic center and making sure that we didn’t run out of beer or food. She had a tremendous rapport with vendors and customers alike, and even developed relationships with many clients who return year after year. Brian Sather, the new kid on the block, brings some new ideas and product offerings to the table and will continue to provide the same great hospitality, along with keeping an eye on the bottom line. But if you want to look at the profitability
“However, these facilities are designed to generate economic impact. In general, if public assembly facilities made a lot of money, then private business would build them.” of the Greater Mankato area, we’re doing great. The new restaurants, bars and hotels aren’t exclusively because of the civic center, by any means, but we do play a role in generating business downtown. The civic center may not be a profit center, but we position others to make money and grow their businesses and start new businesses. There is absolutely no doubt that this center contributed to the vitality of downtown and maybe encouraged some people to plant themselves in the downtown area. I’ve heard, though, that some businesses are expressing concern with you offering more food at your concession stands once you expand. That could hurt downtown businesses, couldn’t it? We look at it like this: “Let’s just make the pie bigger.” There isn’t a finite amount of business that Mankato can do before businesses cut into each other. If we can get patrons here a little earlier to have a sandwich or soda,
that’s better for our bottom line. I think it’s important to remind people that if this facility, in terms of concessions, can bring more people into the downtown area, then they’re much more likely to visit an establishment in the community before or after. In 2006, the MSU Mavericks had a home game against the Gophers but decided to play at the Xcel Energy Center instead. The media reported you saying you thought the center probably lost about $30,000 because of that decision. Looking back, what are your thoughts? The building took a financial hit because of that choice. It was a decision that MSU made, and they’re certainly within their right to do so. They may have done it for financial purposes, and I’m not quite sure how it worked out for them. Having said that, I think, if this is going to be your home ice, and if this is where the majority of your fan base is, it’s important
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Burt Lyman | Verizon Wireless Center
that you play your home games on your home ice and not in the metro area, or any other area for that matter. I think in the future, that probably won’t happen again, but that’s a decision that MSU would have to make.
scheduled. In terms of full time, my guess is you may see one or two full-time positions added, but it will depend on how business is going. If we do add full-time positions, we’re going to do it cautiously.
Visit Mankato recently estimated that the civic center sees more than $3.5 million in lost business annually because of the limitations of the current facility. Yes, there’s no doubt that we lose conventions because of the space issues. If you have a convention on a particular week or weekend, you can’t have two. With the size of this expansion, it is feasible that you could have two smaller conventions at the same time or, more importantly, one larger convention, which currently we are not able to successfully host. So that expands our reach, in terms of what kinds of conventions we can go after. Because we have this additional space, we have additional room to host larger banquets, business meetings, conventions, flat shows, trade shows and concerts.
What do you think will be the greatest disruption during the upcoming construction? I’d say probably the most disruptive component of the project will be when they drive the pilings into the ground. Obviously when they drive the pilings, you’re going to feel it. We’re still going to be hosting events inside this facility, so we’re definitely going to be working with the contractor to reduce the impact on our clients inside. I would submit that if you’re a restaurant, you may see increased activity because there will be a lot of construction workers down here and they need to eat lunch. There will be some impact and it will cause some inconvenience for some, but I’d like to think that after the project is done and we’re up and running, those who have been inconvenienced will benefit from the expansion when it’s completed and operating. It’s like any construction project; it’s going to cause some inconvenience, but hopefully the greater good is achieved by expanding the facility. I believe that.
Will the expansion lead to more jobs? Definitely, though it will probably be more on a part-time basis. We’re eventdriven, so we’re not going to have people on the clock when there are no events
THE ESSENTIALS
Verizon Wireless Center Address: 1 Civic Center Plaza Mankato, MN 56001 Telephone: 507-389-3000 Website: verizonwirelesscentermn.com
Once the expansion is complete and you can attract more events, do you think downtown will have a problem with more congestion? If we’re able to keep the event center as active as we’d like to see it, you may see some congestion downtown. But do you choose not to host a Viking’s game because there’s going to be a lot of traffic in downtown Minneapolis? No. I think that’s a growing pain. And it’s a positive sign. There’s already a lot of construction going on in Mankato. Does this affect the civic center project? Because of all the other construction, the price for raw materials is quite high, especially with Minnesota’s booming economy. Steel, concrete and other construction supplies for this facility are selling at a premium, and that’s a concern. We want to make sure that the quotes come back within our budgetary constraints. The city hired
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Impressive Energy
Impressive Energy
USAF Thunderbirds
The Minnesota Air Spectacular Since the year it was first organized, the Minnesota Air Spectacular has quickly become one of the civic center’s most popular events. The $750,000 event is organized by several partners, including the civic center, the department of public safety, the parks department, Blue Earth County, MN State Patrol, other representatives from the city of Mankato, the Mankato Regional Airport Commission, local businesses and local volunteers. For the most recent show, in 2012, more than 35,000 people (and 1,000 volunteers) attended the event, which featured six fighter jets from the Blue Angels as the headlining act. That show raised about $25,000 for local charities and generated an estimated $7.4 million of economic impact on the area. Lyman explained that when it comes to planning air shows, the first step is even being selected by the military to host one of its performance teams, such as the U.S.A.F. Thunderbirds, which most recently came to Mankato in 2003. The military group performs for free, but the city organizers need to prove they’re able to put on one spectacular show. Thanks to the success of the 2012 event, Mankato was able to win 20
U.S. Army Golden Knights
the right to host the Thunderbirds in 2015. Besides the Thunderbirds, this year’s show also features the U.S. Army Golden Knights Parachute Team, aerobic flyers Team Oracle and John Klatt, comedic pilot Kent Pietsch, and wingwalker Tony Kazian (flying with Dave Dacy). Lyman said this year’s show is particularly exciting because it’s the first time the Thunderbirds will be able to land at the Mankato Regional Airport. When they performed in 2003, the airport’s runway wasn’t long enough for them to land, so instead they flew out of the Minneapolis airport, performed the show, and returned to the Twin Cities without ever touching down on the ground. However, the Mankato Regional Airport recently extended its runway, giving the jets the ability to land. “If you’ve ever been to an air show, some of the greatest drama is watching the pilots get into their planes, turn on those jet engines and taxi down the runway,” Lyman said. “It makes a big difference in the quality of the air show.” He said he hopes the event draws crowds of 45,000 to 50,000 people this year, and the organizers are working hard to expand their marketing beyond the Mankato area. “I think the biggest picture here is to remind the people of Minnesota that Mankato is here,” he said. “There isn’t a better way to showcase your community than to get people to visit. The air show is the biggest thing we do, it’s the most difficult, and it’s the most rewarding.” The show runs June 27-28 at the Mankato Regional Airport.
Burt Lyman | Verizon Wireless Center
Mortenson Construction because they have a lot of experience with these types of facilities, and it was the right decision. I understand you’re also doing some work at Vetter Stone Amphitheater. Last year, we put in a concrete pad with a roof over it, where we could vend our food and beverages. The parks department also worked on the turf and irrigation, because obviously you don’t want a mud pit out there. Now, we will be adding signage and finding different ways to vend our concessions. Even with the amphitheater, this facility, the air show, and RibFest, every year the staff still tries to come at it with, “What can we improve? What didn’t work last time and why didn’t it work?” We regularly reevaluate all of the events we produce to see if we can make changes to make things better. Are there things you’ve tried over the years at these events that haven’t worked? Oh, yeah… (laughs) One of the things at RibFest that comes to mind was how we tried to create a more kid-friendly environment for young children, with rides and a climbing wall. That’s not what RibFest is. Candidly, RibFest is ribs, music, beverages, and catching up with your friends. WinterFest and arena football were a couple of projects that really didn’t go over well at all, either. How has the park evolved over the years? When the park opened in 2010, we thought we’d maybe do some smaller concerts in the amphitheater, but it evolved into doing a lot of shows. When RibFest moved to the park, we were very worried, because many times, when you move the location of a festival, you kill it. But RibFest grew, and it grew even faster. Usually when you get to 18 years, like with RibFest, the event will
start to wane, get old, and so far we haven’t seen that with RibFest. Much of that can be attributed to the civic center team. Each year, everybody tries to make it bigger and better, adding acts and attractions that people wouldn’t be able to see at other places at a discounted price. RibFest has grown from a $75,000 event that brought in about 7,000 people the first year to a $270,000 event that attracted 25,000 people in 2014. I heard that the amphitheater is booked for summer music events long before summer comes around, and you actually have to turn acts away. How do you plan your season? We don’t schedule as many shows at the park as we could. At some point, one would start cannibalizing oneself. If you have a show every night, you might like the music for every single show, but you’re not going to attend every night. So we’re being very strategic about how we’re booking the amphitheater this year because we want to A) make sure the events we have out there make money and B) figure out what works well out there. Eric Jones has been doing a great job of scheduling events at the park and has an uncanny sense of what works well and what doesn’t. Certainly in this community, country music sells very well. I wouldn’t say you can’t lose on country music, but Mankato is known nationally for being a very good community to host country music events. But what doesn’t work well is your sort of outside-the-lines type of music. We’re all getting a little bit better about figuring out what’s going to work and what isn’t. This year will be the Verizon Wireless Center’s 20th anniversary. Are you doing anything to commemorate it? We’re making a video, but we might not have a big event because of all the focus that’s on the expansion project. But that’s okay. We’re still going strong and we hope, with the expansion, to be even busier, bigger and better.
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BUSINESS TRENDS
ENERGY REGULATIONS
The latest ozone pollution standards proposed by the Obama administration could result in $1.7 trillion in lost activity by 2040, according to the National Association of Manufacturers (NAM). In November 2014, the Environmental Protection Agency proposed lowering the National Ambient Air Quality Standard (which regulates the level of pollutants such as carbon monoxide and ozone allowed in the air) to between 65 and 70 parts per billion concentration of ozone, saying ozone causes respiratory and heart problems, among other health concerns. This new level would
HOMEOWNERSHIP
Homeownership in the U.S. has hit a 20year low, according to the Washington Examiner, with only 64.5 percent of American households living in the same home they owned last year. This is the lowest rate of ownership since 1994, when 64 percent of people lived in homes they owned. In fact, studies show that both young and middle-aged householders are less likely to own their own home compared to similar demographic groups from three decades earlier. The only people more likely 22
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bring the U.S. standard closer to public health standards from other industrialized countries, but it could cost businesses—and reduce the country’s gross domestic product by $140 billion every year. A study by NERA Economic Consulting reported that the regulation would also result in 1.4 million fewer jobs through 2040 and reduce household income by $830 a year. This could hit Minnesotan families particularly hard as the state struggles to implement statewide changes mandated by the EPA, which sets different standards for different states. Minnesota has already made strides to reduce its carbon footprint by exploring alternate forms of energy and reducing its pollutants. The Minnesota Next Generation Energy Act, signed into law in 2007, required that 25 percent of utilities’ retail electricity sales come from renewable sources by 2025. While the state was ranked 21st in the nation in population in 2013, it was 25th in residential per capita energy use, according to the U.S. Energy Information Administration. It already produces more than a fifth of its energy through its two
nuclear power plants, and it was ranked seventh in the nation in net electricity generation from wind energy in 2013. Now, however, Minnesota will be required to reduce its carbon dioxide emissions by 30 percent by 2030 and cap carbon dioxide emissions per megawatt hour at 1,100 pounds for new fossil fuel-fired electric power plants, a level that’s 40-50 percent lower than what is achievable for coal-fired power plants with current commercial technology, according to the Coalition for a Secure Energy Future. As Minnesota works to follow this proposed cap and trade plan, NAM predicts that the cost of using natural gas will increase by more than 40 percent in the first year of the carbon tax study, while gasoline prices will jump by more than 20 cents a gallon. In addition, Minnesota households will see an increase of 4.8 percent on average in their electricity rates (which have continually been lower than rates in other states) in the first year. Minnesotan businesses will also suffer, with a loss of worker income equivalent to about 24,000 jobs in the first year and about 50,000 jobs by 2023.
to own a home in 2014 compared to their age group in the 1980s are homeowners 65 years old or older. One of the lowest homeownership rates belongs to young homeowners under 35 years old. In the 1980s, 41.2 percent of American householders under 35 owned the home where they lived. Now, only 35.8 percent of this age group owns homes. The biggest drop, however, is homeowners aged 35 to 44. In the 1980s, about 70 percent of this age group owned their own homes, but now, only about 59.7 percent do. When it comes to Minnesota, about 72.5 percent of Minnesotans own their own homes—nearly eight percent more than the national average. The decrease in homeowners points to an increase in renters. Nationwide, about 35 percent of the population rents, according to the U.S. Census Bureau. In Minnesota, about 27 percent of the population rents. Renting can seem like the smart way to save money for cash-strapped families, with the average renter paying $962 per month
(according to the Department of Numbers) and the average homeowner paying $1,061 (according to the National Association of Realtors). In Minnesota, the average twobedroom apartment will cost you about $820 a month, while owning a home will cost you about $1,350 in mortgage payments. However, Forbes recently reported that buying a home is actually 38 percent cheaper than renting (a six percent decrease from last year, when it was 44 percent cheaper to buy a home). One reason for this difference is the fact that the 30-year fixed interest rate for mortgages has been lower this year than last year, according to the real estate website Trulia. But while buying a home could save thousands of dollars in the long run, many families run into problems buying while the buying is good. According to the NY Times, 74 percent of renters have household incomes below $50,000 (compared to 41 percent of homeowners), making it difficult to save for the recommended 20 percent down payment.
CAPITAL INVESTMENTS
Minnesota saw a record high in venture capital investment in 2014, with the highest number of investments since 2008 and the seventh-highest total recorded since 1995, according to The MoneyTree Report by PricewaterhouseCoopers. Altogether, investors invested more than $386 million into 38 deals, with most of the activity (nearly $92 million) happening in the final quarter of last year. That’s an increase of almost 150 percent compared to Minnesota’s 2013 number, which was closer to $270 million. A majority of Minnesota’s venture capital investments—more than $245 million— went to the medical device sector, which has long been a strong sector of the state’s economy. The second most popular sector in Minnesota was software, which raised $55.9 million last year. The biggest software deal went to Sport Ngin, a Minneapolis sports software company that raised $15 million. Minnesota usually ranks between 10th and 20th among states for venture capital investments. (States with more technology companies traditionally rank higher.) Taking the latest results from 2014’s last quarter, Minnesota was ranked 17th. Nationwide, investors also created a new recent record, funneling $48.4 billion into startup companies—an increase of 61 percent compared to 2013 and the most money invested since 2000. Across the country, the software sector continues to lead the pack when it comes to receiving venture capital investments. Last year, about $19.8 billion was invested into nearly 1,800 software deals. Biotechnology, media and entertainment, and the medical device sector were also some of the main sectors to receive venture capital investment. MAY/JUNE 2015
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BULLETIN BOARD
Any chamber of commerce, convention and visitors bureau, or economic development organization in our reading area—large or small, from Amboy to Waterville—can post on our free bulletin board. For details, email editor@connectbiz.com.
Blue Earth Cindy Lyon, Blue Earth Chamber
Our chamber memberships keep coming in! We have several pending, 131 paid and 16 new members for 2015! GIANT! Ads for tourism are going out, and tourism guide dispensers have been filled and refilled. Our citywide garage sales and citywide cleanup days are upon us! They are chamber fundraisers, but we are giant about being green in beautiful Blue Earth! Mark July 10-11 for Giant Days here in Blue Earth. It’s going to be GIANT!
Fairmont Christy Selbrade, Project 1590
Project 1590 made its debut in the summer of 2014, when a group of Fairmont residents formed a committee with the aim of improving the community. The group has gathered ideas from area residents, who have had the opportunity to vote for their favorite ideas, and a reveal party is scheduled for May 14 from 6-8 p.m. at the Holiday Inn in Fairmont. Visit the project’s Facebook page or website for more information: www.Project1590.com.
Gaylord Amy Newsom, EDA Coordinator
The Gaylord Economic Development Authority is pleased to announce that they are offering a residential lot for sale for the price of $1. Within four months of the signed purchase agreement, the buyer must produce copies of plans for a new home, a sworn construction statement and a financing letter or documentation of cash reserves to show that the buyer has the capacity to complete the project. Interested parties should contact the Gaylord EDA at 507-237-2338.
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Gaylord Amy Newsom, Gaylord Area Chamber
The Gaylord Area Chamber of Commerce will be hosting this summer’s Music on Main concert series. There will be ten music events this summer, beginning on May 20 with Carver Creek Bluegrass. The music runs from 5–7 p.m. with a break at 6 p.m. for the drawing of $300 in Gaylord Green! June artists will be the Don & Betty Band and The Frye. Beginning mid-June, the music will run in conjunction with the Farmer’s Market, craft and food vendors. Join us in Gaylord this summer!
Lake Crystal Julie Reed, Chamber of Commerce
Calling all bargain hunters. The Lake Crystal Area Chamber will be hosting its Semi Annual Spring City Wide Garage Sale on May 8-9. Maps will be available at most local businesses. Lake Crystal Days will be June 19-20, starting with the “Battle of the Bands” high school marching band competition parade. A parade with 12 Minnesota marching bands begins at 6 p.m., followed by fireworks. Stay for the carnival, pony rides, beer garden, bingo, pedal pull, beanbag tournament, turtle races and live music.
Mankato Kathryn Reeder, Visit Mankato
Visit Mankato is celebrating the 32nd annual National Travel and Tourism week May 2–10 by honoring four local hospitality industry personnel for the outstanding service they provide to visitors. In addition, the organization launched a new program called iKNOW Mankato with the intention of helping frontline staff better address
Madelia
Mankato
Karla Grev, Madelia Chamber
Jonathan Zierdt, Greater Mankato Growth
Madelia Park Days will be July 9-12. Events include the Blues Festival, Art & More Fair, a parade, a chain saw artist, “SuFuDu,” fireworks, tournaments, a 5K run/walk, food, a wine/beer wagon, a kids’ carnival, live music and free harmonica lessons. On Sunday, there will be the Fireman’s Pancake Breakfast, live gospel music and worship, and a kids’ pedal pull. For more info, visit www.visitmadelia. com, or call 888-941-7283.
Celebrating its 12th year, Songs on the Lawn presented by Xcel Energy returns to Greater Mankato every Thursday in June from 11 a.m. – 1 p.m. in Jackson Park. Songs on the Lawn gives coworkers, friends and families from all around the region an opportunity to gather in the City Center to enjoy live music from area bands and food from local vendors. For more information about the weekly event, visit greatermankato.com/songs-lawn.
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Local Chamber & Economic Development News
visitor questions and enhance their overall experience at the destination. The program is open to all hospitality frontline staff. To learn more, visit visitgreatermankato.com/partners/.
Mankato Laura Dhuyvetter, RCEF
RCEF is offering a free opportunity for entrepreneurs to get immediate feedback on their idea from area business professionals. It’s called BizPitch, and it allows the entrepreneur 10-15 minutes to present their idea/concept to a panel of business leaders. The presentation is followed by 30-40 minutes of Q&A and feedback. Call Bryan at (507) 344-7897 or Laura at (507) 344-7895 for more info! It’s free!
Mankato Nicole Griensewic Mickelson, Region Nine
Are you looking to relocate or expand your business? Danielle Walchuk, RNDC’s Regional Development Planner, can help determine where the consumers are for your product or service. Using the latest technology, RNDC can produce site analytics using a variety of data resources. RNDC has access to thousands of demographic, health, economic, education, market potential and consumer spending trends data to meet your business’s needs. Contact Danielle at danielle@rndc.org or (507) 389-8863.
New Ulm Sarah Warmka, New Ulm Chamber
The New Ulm Area Chamber of Commerce hired Cara Knauf as its new retail services specialist. Many of the attractions that were closed for winter are open in May, including Hermann Monument, Domeier’s Store, Morgan Creek Vineyards, Harkin Store, MN Music Hall of Fame and the Wanda Gag House. Upcoming events include Mai Fest (May 2), Bacchus Fest (May 16), Schell’s Lager Lauf (May 16), Quiltistry (June 27), Summer Party (June 27) and Autofest (June 28).
Sleepy Eye Kurk Kramer, Sleepy Eye EDA
Sleepy Eye is proud to be the home of two major implement dealerships here in southern Minnesota. Miller Sellner Case IH Implement is celebrating 50 years of business here with about 40 employees. It has been a pillar in the community for half a century! Kibble Equipment, John Deere, recently purchased 15 acres to build a new facility with a 48,000 square foot dealership on the east side of town. They recently consolidated two other dealerships with the one in Sleepy Eye. This will add eight new jobs at the Sleepy Eye dealership. Construction will begin in the coming weeks.
Nicollet Alesia Slater, Nicollet Chamber of Commerce
Citywide Cleanup Day is May 2. All items must be curbside by 6 a.m. The American Legion invites you to the Memorial Day Service in the City Park at 11 a.m. on May 25. Nicollet’s annual Friendship Days Celebration is the weekend of June 26-28. Festivities include a carnival, Miss Nicollet competition, craft fair, tractor pull, 5K run/walk for the Susan Koman Foundation, beer garden, bean bag tournament, kiddie tractor pull, parade and entertainment and food in the park. For more information about these events and more, visit nicollet.org.
Saint Peter Ed Lee, St. Peter Chamber of Commerce
A few of the marquee events in St. Peter this summer include Ambassadors’ Blues Fest on June 13, the Old-Fashioned Fourth of July celebration with a parade, picnic in the park, and fireworks, and the Rock Bend Folk Festival on Sept. 12 and 13. See the chamber website for more.
Waseca Kim Foels, Waseca Area Chamber of Commerce
Business tax refund, a new state of Minnesota program, offers eligible businesses sales tax refunds. The Greater Minnesota Job Expansion Program provides tax benefits to businesses that increase employment. To learn more, contact the Minnesota Department of Employment and Economic Development. Check out DEED’s new tool for “Cost of Living,” which provides a yearly estimate of the basic-needs cost of living for individuals and families living in the county. The Waseca Area Chamber will be hosting an Educational Networking event, IT/Security offered by CliftonLarsonAllen, on May 27. Check out www.wasecachamber. com for information.
Mankato Julie Nelson, Small Business Development Center
America’s SBDCs are celebrating 35 years. We are the largest technical assistance program for small businesses in the country, with nearly 1,000 centers providing no-cost consulting and training for small businesses. Last year, the South Central Minnesota SBDC delivered 4,705 hours of consulting and helped clients access more than $18 million in capital. Of the clients who started a business in the last five years, 92 percent are still in business. Can we help to make your big ideas happen?
MAY/JUNE 2015
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GRACE NOTES
My plan for my May column was to focus on the question of minimum wage. Minnesota is set to increase its minimum wage to $9.50 per hour in 2016, and start indexing to inflation in 2018. But some people are saying that’s not enough for people to survive on, instead lobbying for wages of $10 or even $15 per hour for jobs as simple as flipping burgers. According to the Pew Research Center, about 3.3 million people are working at or below minimum wage—which is about 4.3 percent of the country’s hourly-paid workforce. A full-time job paying minimum wage will bring in about $15,000 per year. That’s right about at the poverty level for a family of two. A family of four needs to make more than $24,250 to be above the poverty line. Researching more about poverty in our country, and especially our state, is when I decided to change topics. There’s no doubt that poverty affects thousands of people in the U.S. In Minnesota alone, more than 175,000 children live below the poverty line, according to the U.S. Census Bureau. That’s about 15 percent of all Minnesotan kids—a percentage that has been increasing in recent years. Minnesota’s overall poverty rate is about 11 percent. Nationwide, about one in 7 people—15 percent, give or take—live in poverty, according to the U.S. Census. That’s not a very good number, especially since we launched the “War on Poverty” more than 50 years ago. Over the past five decades, we’ve funneled trillions of dollars into programs designed to reduce or eliminate poverty. Yet the official poverty rate has dropped a measly 4 percent since when President Lyndon B. Johnson started his campaign in 1964. Politicians approach these statistics in different ways. Democrats push for a higher minimum wage, an extension of long-term unemployment benefits and a narrowing 26
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of the nation’s income gap between “rich” and “poor.” Meanwhile, Republicans want to reduce or dismantle many of the safetynet programs Johnson began, saying they pile on debt and discourage people from working themselves out of poverty. But here’s the big question: Just what is real poverty? We know how the federal government defines poverty. It compares pre-tax income against a threshold that is set at three times the cost of a minimum food diet in 1963, updated for inflation using the Consumer Price Index. Yet according to research done by the Heritage Center, the average household defined as poor by the U.S. government still had a car, air conditioning, two color televisions, cable or satellite TV, a washer, a dryer and a coffee maker. That’s hardly the picture of a family living in dire need, fearful of not having enough food to go around or enough money to pay their heating bills. I’m not saying families in America don’t struggle, because they do. But when it comes down to a family in Minnesota that can’t afford an X-box or a family in Africa whose kids are literally eating dirt to ease their hunger pains, I think it’s clear where the true need lies. While American families are labeled “poor” if they’re under that $24,000 threshold, nearly half of the world’s population— more than three billion people—are living on less than $2.50 a day, or barely more than $910 a year. About 80 percent of people worldwide live on less than $10 a day, or $3,650 a year. More than 22,000 children die every day due to poverty, according to UNICEF, while 805 million people worldwide don’t have enough food to eat and 750 million lack adequate access to clean drinking water.
The World Food Programme reports that hunger is the No. 1 cause of death in the world, killing more people than HIV/ AIDS, malaria and tuberculosis combined. I saw this poverty up close when I went on a mission trip to Colombia in 2005. We carried bags of groceries to families living on the outskirts of Bogotá, up in the Andes Mountains. These people lived in one-room shacks made of old metal scraps, with dirt floors and no doors or electricity. Sometimes, an entire village shared one cell phone, pitching in to pay the monthly bills. They drank dangerously dirty water. They didn’t all have shoes. Colombia was my first real glimpse into true poverty, and it shocked me. Since Grace A. Webb then, I’ve seen the Editor same hopeless need in Mexico and Ecuador, too—little kids selling paper flowers at markets and mothers begging for change at bus stops. Does this mean that we should totally neglect American families and only look to kids who are literally starving to death? No. We can help both. In fact, I believe we’re called to help both. And that’s where it gets tricky, because the question arises: What’s the best way to help those who are suffering and in true need? Should we shuffle them off onto the federal and state governments through entitlement programs such as Medicaid and SNAP, which are continually growing in scope? Or should we dig into our wallets and give voluntarily? To be brutally honest, I don’t believe it’s the government’s business to redistribute wealth by taking it from those who have
Yet according to research done by the Heritage Center, the average household defined as poor by the U.S. government still had a car, air conditioning, two color televisions, cable or satellite TV, a washer, a dryer and a coffee maker.
more and giving it to those who have less. I contend that’s an overreach of federal power as outlined in the 10th Amendment of the U.S. Constitution, which states that all authority not given specifically to the federal government is reserved for the states. The federal government can tax for things like creating roads, maintaining a military and paying its debts. If you want to argue for state entitlement programs, that’s a whole different ballgame. But instead of diving into state programs, let’s look at something infinitely more difficult: donating money yourself. The average American household contributed about $1,800 to charities in 2012, according to Creditloan.com, while Philanthropy.com reported that Minnesotan households donated about 2.7 percent of their discretionary income—not even triple what they spent on alcohol over the year (1 percent). 2.7 percent? $1,800? Creditloan.com numbers show that’s less than we spent on entertainment. To use an even clearer example, a recent report came out showing that Americans spend an average of $1,100 every year on coffee, according to ABC News. If that money were given to programs like Feed My Starving Children instead, it would pay for 5,000 meals for needy kids. When people are spending almost as much on coffee as they are on helping other people in need, you know something’s seriously wrong. Shame on us.
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Mark Beito and son-in-law Casey Coulson.
When Mark Beito decided to open his own funeral supply business—Mark Thomas Co.—in 1990, he had no idea it would spring to life as quickly as it did. In fact, by 1993, he had outgrown his rented quarters in the back of the local bank and needed to expand—fast. His landlord needed the space for the bank’s own expansion, and needed him to move right away. But there was a problem. There were no good buildings available for purchase in Sleepy Eye, where he wanted to stay. His banker had a suggestion: a goose hatchery that had been used by the former Pietrus Foods might be available. The new owner, Sleepy Eye Foods, had no need for a hatchery in its business plan and was willing to unload the 4,000 square-ft. building. Beito could buy it for cheap—only about $24,000. But there was a catch. The building was little better than a shed. It had no heat, no electricity and no water system. The walls were covered in mold and mildew stains. The space was filled to the brim with old incubators. And the distinct odor of geese permeated the whole building. “It was disgusting,” Beito said with a laugh. “But there weren’t a lot of choices in town.” But Beito looked past the building’s decay and saw what it could be with a little tender love and care. He bought it and cleaned it up—though the smell of birds took years to fade away. By November 1993 he was able to move his business out of its cramped 1,500 square-ft. rented room into a 4,000 square-ft. headquarters Beito could proudly call his own. Since then, he’s expanded another three times as his business grows to keep up with the demand created by thousands of funeral homes nationwide. And even now, situated in a 24,000 square foot building that’s still in the process of construction, Beito says the business is already bursting at the seams. “Our first expansion took us 10 years, and after that we’ve been adding on about every five,” he said. “So once we get done with this one, I guess that starts the clock ticking.” continued >
From hand-collating memorial folder samples on his kitchen table, Sleepy Eye resident Mark Beito has grown his funeral supply business into a 45-employee company that works with more than 4,000 funeral homes every year.
By Grace Webb Photo by Kris Kathmann
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Growing up in Granite Falls, Beito, 63, never planned on opening his own funeral supply business. It’s not something one usually aspires to do as a little kid. Instead, Beito was more interested in the newspaper business. He grew up on the family farm, the oldest of three siblings. (His younger brother still farms the land.) Along the way, he met his future wife, Sandra, who was on the same bus route as he was. The two were married in 1973. After graduating high school, Beito studied economics at Macalester College in St. Paul and worked for the college paper. He graduated in 1973 and moved on to the University of Minnesota to earn his law degree. There, he worked for two campus publications as well as writing for community papers. “It was something that I wanted to do,” he said. “I felt called to do it.” He graduated from law school in 1976, and he and his wife bought the Sanborn Sentinel, the weekly newspaper for Sanborn, MN. Beito ran the newspaper while his wife worked as a teacher. They sold the paper after two years and moved to Sleepy Eye in 1979, where he became publisher and co-owner of the Sleepy Eye Herald-Dispatch. He ran the Herald-Dispatch until 1990, when he decided to take a completely different road: opening his own business. He had become
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Beito does a lot to give back to his community and beyond. For several years, he used some of his vacant land to grow a garden, which his employees tended. The food was donated to the local food shelf after every season. However, one year the food shelf flooded and couldn’t accept donations, so Beito didn’t work the garden that year. He hasn’t gone back to it since, but he has found other ways for him and his employees to work in their community. He’s also part of the Great Printer Program, which is a group of printing businesses committed to going beyond basic environmental regulation standards to do even more to protect the planet. Every year, they take on a different project, such as switching over to all wind-generated power and investing in ergonomic floor mats. Beito volunteers in his spare time, as well. He teaches a junior achievement class at the elementary school and is active in his church.
Mark Thomas Co. | Sleepy Eye
friends with Wally Haas, a Sleepy Eye businessman who started the company that would become Bic Advertising and Promotional Products. Haas had sold the company in the 1960s, and a decade later bought back the funeral products portion of the business. The two had even talked about Beito buying Haas’ funeral supply company. But Beito decided he’d rather start his own from scratch—even though he had limited experience in the world of printing products other than his time at the paper. He called his new venture Mark Thomas, after him and his son, Thomas (“Thomas was easier to spell and remember than Beito,” he explained). “There was no road map; I didn’t really know what I was doing,” he said. “I didn’t have a business name that anyone had ever heard of, I didn’t have any products that anyone had ever seen… it was just a blank slate. I said, ‘We’ll just start it and see how it goes.’” Beito said he chose to explore funeral supplies—starting with memorial folders—because they were easy to sell. “I wanted to make things that were ours and sell them profitably, all across the country,” he said. “Sleepy Eye is a fairly small town, so I knew I needed more business than what my local community could give me. I wanted a product that I could sell that wouldn’t require a long sales cycle, so that someone could look at a sample and say, ‘Yeah, that looks good,’ not something that would require me to make personal visits to them and spend a lot of time with them. I didn’t have the time to spend driving all over; I needed a product that was easy to sell.”
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To begin this new chapter in his life, Beito grabbed his camera, drove around Sleepy Eye and took pictures. He started with an inventory of 16 different memorial folders (which has now grown to more than 200 choices), sending his pictures to Corporate Graphics in North Mankato for printing. He guessed at how many copies he should order. “I had to think about what I could justify, printing how many thousands of each of these that I’d never sold before,” he said. With the first printing on its way, Beito realized he’d need a place to house the business. “I couldn’t do it from my living room,” he said. “I talked my banker into letting me rent some office space they weren’t using for $50 a month, on a trial basis.” Once he received his order back, he and his three children—Tom, Laura and Julia—put the samples together by hand. “They would help me after school or on weekends put these samples together,” he said. “We’d walk around a table and hand
When Beito started, he had no customers. Instead, he created a mailing list of funeral homes and sent the first batch of samples out in late 1990. Within only a few days, they received their first order from a funeral home in North Dakota. collate them. I made my kids work with their coats on when we were starting, to save heat. But that didn’t last very long because you can’t collate with gloves, so I had to turn the heat on.” Tom and Laura grew up and moved on. They both went to law school and are attorneys in the metro area. Julia and her husband, Casey Coulson, moved back to Sleepy Eye in 2005. Julia and Casey share ownership of the business with the Beitos. Casey’s title is sales manager, but there are few tasks that he doesn’t get asked to handle. “It’s been a wonderful opportunity to have
Casey here,” Beito said. “Ten years and we haven’t had an argument. Without a succession plan, what’s the point of growing a business?” When Beito started, he had no customers. Instead, he created a mailing list of funeral homes and sent the first batch of samples out in late 1990. Within only a few days, they received their first order from a funeral home in North Dakota. “Right away, people started asking for stuff,” Beito said. “‘Can we get thank-you cards to go with that?’” So he began offering more products:
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Mark Thomas Co. | Sleepy Eye
thank-you cards, service bulletins, prayer cards. All that printing led him to buy his own printing press. In that first year of business, Mark Thomas Co. attracted a few hundred customers, enough to warrant the hiring of an employee, Julie Huiras, who still works for the company today. (“Most of our customers call in their orders, so Julie has been talking to our customers every day for 24 years,” Beito said.) As for those first customers, many of them still work with the company today, too. “Twenty-five years is a long time, and things change,” Beito said, “but it’s not at all uncommon for me to look back at my computer and find somebody in my files who was a customer in 1991.” For the next three years, the business steadily grew, even though Beito never hired any salespeople to go out into the field. Instead, he kept faithfully sending out samples to funeral homes, until finally, in 1994, he created his first catalog. In his own words, it wasn’t very big or fantastically
successful, and he didn’t make another one until 2000. And now, even though he’s gotten to the point where he sends out catalogs 12 times a year to 15,000 addresses, he still makes his samples, too. Around the same time that he started his catalog, his landlord at the bank informed him that he’d need to move his operation because the bank needed its space back. That’s when he was pointed to the Pietrus hatchery. “It was a decision time,” he said. “Were we going to pour a lot of money into this business or sell to somebody else and be done?” But quitting was never a serious consideration, he said—he was enjoying his business far too much. So, he moved out of the bank and into the hatchery. He even brought some of his old furniture with him, tables and desks that the bank wanted gone. He still has one of the bank’s end tables in his office. “We try not to waste things if we can possibly avoid it,” he said, mentioning how he also converted old egg carts from the hatchery into envelope trays.
The space that seemed luxuriously large for three employees in 1993 was cramped a decade later by more products and a dozen employees. “It seems like I’ve spent the last 25 years looking for more space,” Beito said. “I’ve always been looking.” Even the 13,000 square-ft. plant Mark Thomas Co. moved into in 2004 wasn’t enough. The 2004 building was built on the site of Pietrus Foods’ processing plant, which the city of Sleepy Eye tore down in 2000. Beito bought half the site, and Terry Zinniel bought the other half as a shop for his underground utilities business. “It wasn’t more than a couple of years later that I started pestering Terry about selling me his building,” Beito remembered. That deal finally happened in 2013, when Zinniel Utility Contracting moved to a new location in New Ulm. An addition that connects the Mark Thomas Co. building to the Zinniel building is nearing completion, and gives the company a 24,000 square-ft.
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Mark Thomas Co. produces a variety of handcrafted memorial products.
Miranda Bickett is one of two ceramic artists on staff producing one-of-a-kind urns.
headquarters. Much of the growth at Mark Thomas Co. has been due to acquisitions. “We’re always interested acquiring businesses that fit into our niche,” Beito said. In 2003, Mark Thomas bought out Caring Times, a funeral printing company in Red Wing. While the two companies offered many of the same supplies, Caring Times had also sold urns. “[The owner] had some contacts and designs,” Beito said. “We’d never thought about selling urns before, but we decided to give it a try.” To offer the same engraving services that Caring Times had offered, he bought a laser engraver. Later on, he decided to start making ceramic urns to go along with the wooden ones, so he bought a kiln and hired some sculptors. It takes them about a week to create an urn. Beito also started importing urns from a company in India in 2006. Beito estimates that Mark Thomas now sells 15,000 cremation urns a year, every one of them to a funeral home. The company plants a tree with every urn sold (except their smallest sized urn), through a nonprofit organization called American Forests. “We started seven years ago with this memorial tree program, and we’ve planted 60,000 trees so far,” he said. He said the business has been selling more urns in recent years as more people choose to be cremated. “It seems like it’s increasing,” he said. “We’re doing more and more.”
Mark Thomas bought a local cabinet maker, Sleepy Eye Cabinets & More, in 2007. Its owner, Brian Renberg, continues to work at Mark Thomas Co., making wooden urns and flag cases. In 2009 Mark Thomas built a 5,500 square foot shop adjoining the original hatchery building, which was intended to be used as a wood shop and urn inventory space. But as the company continued growing at a startling rate, Beito had to change his plans a bit. Midway through the process of putting up that building, Mark Thomas bought the inventory from Chapel Craft, a funeral supply company in Sioux Falls that had gone out of business. “They had a building full of stuff,” he said. “We were over there for days… We had semi loads of this material, and no place to put all the stuff. We had made our building as big as we possibly could. So right away when we moved in, it was on the verge of getting too small.” And from the way things are going, he’ll probably need another expansion soon. “Our sales have gone up every year,” he said. “The business is doing just fine, and doing even better as more and more people discover us. We’re up to 45 employees. Every year, we sell to something like 4,000 different funeral homes. And we’re getting new customers all the time, from all over the country.” Beito has also received recognition from his community for his business’s success. In 2009, he received the Sleepy Eye Chamber of Commerce’s Manufacturer and Technology
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Award, and, in 2014, Mark Thomas Co. was named the city’s Business of the Year. Beito credits his success to his company’s willingness to try new things. While his printed products are still the biggest portion of what his company does, some of his newer product lines are also taking off. “We keep on trying new things,” he said. “We’re always looking for new products and have been surprised at how well some things have been accepted.” Some of those things have worked better than others. The flag boxes have been a big hit, but Beito’s attempt to sell engraved photo frames wasn’t as successful. On the other hand, some of his ideas, like offering crosses and crucifixes, didn’t seem promising at first but then took off later. When he first offered the crosses, he said, he didn’t sell any—but now he sells upwards of 1,000 pieces to funeral homes every month (“It’s just taken off like crazy”). And some things that he had never really considered ended up surprisingly popular, such as the cremation jewelry he sells. He buys the jewelry from India, ordering thousands of pieces at a time, and they are consistently snatched up by funeral homes. “We’re just stunned at how many of these things go out,” he said. “So things like that I don’t always predict with any great accuracy. Sometimes, we just have to be smart enough to figure out, ‘That’ll work.’” Still, no matter how many product lines Beito explores, he said the focus will always be on funeral supplies. “Our sweet spot is funeral memorial products,” he said. “We try to take the skills that we have and circle around that area. We don’t do weddings, offices, etc. What’s next? We’re not 100 percent sure. But it seems like the more we offer, the better we do at it.” Comment on this story at connectbiz.com
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By Deb Schubbe Photo by Kris Kathmann
Bruce Ankeny’s business may have changed over the years, but his hometown heart and customer care have remained the same.
Like grandfather, like father, like son. For nearly 70 years, the Ankeny family business has served the Blue Earth community in the same building, located at 230 Main Street. Started by Clayton Ankeny in 1946, it was passed on to Wayne Ankeny and eventually Bruce Ankeny, who still runs it today. Like his father and grandfather before him, Ankeny looks at the needs of his community and finds ways to meet them—often in surprising ways. Running Ankeny Furniture, he sells furniture he can believe in while maintaining an atmosphere where his customers believe in him. Three generations of Ankenys have brought many changes to the company, tilting the 1946 focus from a recreational business of bowling and rollerskating to furniture sales in 1969, with remote control airplane and baseball card sales and a Radio Shack throughout the years too. But one thing has always held true: Whatever community need is being served, it’s all about customer service. “My thought is that I need you to be happy with what you buy from me, because I need you to come back,” Ankeny said. “That’s true for all small towns.” Ankeny’s father always advised against putting all of his eggs in one basket, and Ankeny has taken that to heart, meeting a few community needs at once. Anyone walking into the building is greeted by the intoxicating aroma of specialty coffees drifting from the front corner of the building where the coffee shop, The 230 Fix, has sat for 18 years. The building is also home to Eighth Street Framing, run by Ankeny’s daughter-in-law, Ana Ankeny, as well as a store of repurposed furniture, Prairie Chick, run by Ankeny’s cousin, Shelly Griemann. However, there’s no question that furniture has been the mainstay of Ankeny’s business since 1969. continued > MAY/JUNE 2015
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Community Furnishings
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The business started with Ankeny’s grandparents, Clayton and Lena Ankeny, who had the building erected for Ankeny Recreation in 1946. Ankeny Recreation offered a six-lane bowling alley, a rollerskating rink and a café. In 1954, following four years in the Navy, Clayton’s son, Wayne (Bruce’s father), added his unique humor and customer skills to the business. A Greyhound Bus depot also operated out of the Ankeny building then, sometimes running up to 16 buses a day. Change has never been uncommon to the Ankenys, as the family transformed the business to meet customers’ changing needs. The roller rink closed in 1955 due to a lack of skaters, but in the early 1960s it sprang back to life, reclaiming one side of the building until 1969. Meanwhile, when neighboring towns opened their own bowling alleys in the early 1960s, the Ankenys closed six of their bowling lanes and rented the space to the Knights of Columbus for bingo games. While they were at it, they added an arcade and a used furniture store for some time, keeping the rest of their bowling lanes open until the 1980s. But in 1969, the Ankeys started offering what was to be the mainstay of their business: furniture. “Blue Earth didn’t have a large furniture store with bedding at that time, and we needed one,” Ankeny explained. Through the years, Ankeny learned the art of talking to customers and selling furniture at the elbow of his dad, and that partnership continued until Wayne Ankeny passed away almost six years ago.
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To Love A Community The Chamber of Commerce recently presented Ankeny with the 2014 Community Service Award—an award his father, too, had received years ago. In addition, Ankeny is the president of the Blue Earth Royal Chiseler’s Woodcarver’s Club, a Convention and Visitors Bureau member, first president of the Blue Earth Town & Country Players, and a member of the committee that worked to build the new public safety center in town. He also serves on the Parks and Recreation Board and helped with the shelter projects for Steinberg Park and Putnam Park, as well as co-chairing the committee to build the new Hope United Methodist Church, where he is a member of the choir and CCO committee.
Ankeny Furniture | Blue Earth
Community Furnishings
Hobbies, Fun And Retirement Plans Always a music lover, Ankeny has kept many 45s from the roller rink, bringing his current collection to around 600 LPs and a number of 45s. He also played in a band from 2005 to 2011 with some family and friends, including his son Brandon on the lead guitar. On the crafty side, Ankeny has enjoyed woodcarving for years, carving out caricatures ranging from hippies to Santas. Between 1982 and 2011, he carved 65 Santa Clauses a year. The hobby started in the early ’80s when he fell in love with a hillbilly chess set carved by John Sabin and displayed in a Farm and Home show. Today, Ankeny is working on a Civil War chess set and plans to attend a woodcarvers’ show in Davenport, Iowa this summer.
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Ankeny also enjoys spending time with his family. Three of his grandchildren live in Blue Earth, while the other six, children of Bryan and Tiffany and Brent and Chrissy, reside in Eau Claire, Wisconsin. Ankeny doesn’t have any specific retirement plans for the near future, but he said he thinks wood carving and camping will take up part of his days, along with a little music and a lot of family.
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Today, Bruce’s mother, Lois, owns the building, but Bruce runs the business. Bruce Ankeny’s first sales lessons started when his grandfather began operating a popcorn machine and sent Bruce and his siblings off to run up and down parade routes selling the goods. “I was probably only eight, so I learned about sales early on,” Ankeny said with a smile. Throughout high school, Ankeny learned the value of work at the family business, working in both the bowling alley and the roller rink. At the bowling alley, he was a pinsetter, while in the roller rink, he was known as “the skate boy,” the one to choose and play music. “Girls would beg me to play their favorite songs, and I’d play
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Drumming Up Business To draw new customers, Ankeny participates in several special events. He and his cousin Shelly Griemann held a chocolate and cheese tasting last Valentine’s Day with samples from The Chocolate Season of Algona, Iowa. Live music was provided by the group “Beyond Blue,” with Debbie Ankeny and Mike Springer performing. The citywide Chicks Spring Fling is another strategy to attract customers. Ankeny said last year’s theme was “sunrooms,” and each business donated something related to sunrooms for prizes. People had to come into the store to enter for the drawings. Ankeny Furniture donated a chair and an ottoman, as well as showing a movie on the wall. Ankeny also participates in Blue Earth’s Holiday Sampler, an event organized by the Business Improvement Committee, a branch of the Blue Earth Area Chamber of Commerce. (In the past, Ankeny’s father was president of this committee for several years.) For the Holiday Sampler, a Blue Earth event for more than 20 years, businesses stay open later, put out lights and serve treats to patrons, while the Madrigals, a group of local high school students, sing from store to store.
Ankeny Furniture | Blue Earth
them,” he said. When Ankeny wasn’t working, he was swimming, playing football and baseball, and canoeing with the Boy Scouts in the Boundary Waters. He also loved music, spending “every free dollar” on albums featuring 1960s staples such as the Beatles. He graduated from high school in 1974 with the plan to work for his dad until he decided what to do with his life, but his love of music ended up helping him start a business of his own. In 1976, he and his brother Jay, then a full time carpenter, opened The Record Roost, selling LPs and cassette tapes in a building the Ankenys owned down the block. Ankeny spent mornings in the furniture store, had lunch with his dad, then skipped down to The Record Roost for the after-school rush of teenagers arriving to buy their favorite tunes. “If Dad needed me for anything, I just put a sign on my door, ‘Be back in ten minutes,’” he said. “I kept The Record Roost going three or four years.” It also wasn’t long after graduation that Ankeny married a classmate, his wife, Bonnie, who has worked for the city of Blue Earth for the past 17 years. They bought their present home in 1975, where they raised their children: Bryan, Brandon and Brent. As time marched on, the Ankenys dropped bowling in 1982 and bought a Radio Shack franchise, putting Ankeny’s skills to work as manager. “With the franchise, we could sell anything we wanted to,” he
A coffee shop adjoins the furniture store.
explained. “I was fortunate to be in the business when you could make good money selling cell phones. When my sons started collecting baseball cards, I sectioned off a little of the store for a baseball card shop. Our family has always been entrepreneurs, willing to try anything new.” Serving mouth watering lattes was another change, an idea Ankeny’s dad brought back from Seattle, Washington. “Coffee shops were huge on the West Coast, and Dad decided Blue Earth needed one,” Ankeny said. “He hired a company from out there to show us how to set up.”
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Since then, they’ve added hard-dipped and soft serve ice cream to the menu. Today, customers often leave the store not only with their purchases, but also with a cup of tasty brew in their hands and good stories in their minds, compliments of Bruce Ankeny. Living in Blue Earth all his life, Ankeny has maintained friendships for years—and those friendships are an integral part of his business. “My best friend in high school is still my best friend today and comes up every morning for coffee,” he said. When people step into Ankeny Furniture, chances are Ankeny knows their names, or the names of their parents. A woman buying a recliner can also enjoy conversation about grandchildren or local news. Ankeny often adds a few words as a customer leaves, “…and say hello to Jim,” or whomever Bruce knows in that customer’s circle. Buying something from Ankeny feels more like an over-the-fence chat with the neighbor
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“Dad didn’t think I should do it,” he said. “He was worried that if England went under, I wouldn’t have ties with other companies.” But Ankeny’s gut told him to plow ahead with the decision. than a business transaction. His friendly nature and sense of humor, trickled down from his father, are only part of what makes Ankeny successful. He is a loyal man, loyal to his family, loyal to his community, and loyal to his friends and business acquaintances, who just so happen to become his friends, too. With an entrepreneur’s mind, he faces the need for change head-on in his business, but he doesn’t let go of what’s important, such as his relationships with his salesmen. “My Restonic rep used to be my Serta
rep, and our England salesman used to be our Mastercraft salesman,” he explained. “When they moved, I moved.” Over the years, Ankeny has sold furniture or bedding by Schweiger, Mastercraft, Serta, and Lane. He still deals in Lane products, but he now sells Restonic bedding and recliners he purchases from HomeStretch—not a wellknown company but a very good product, Ankeny noted. Mostly, though, he sells furniture by England, a La-Z-Boy company he added to his floor eight years ago. To carry England products, he had to promise 50
Ankeny Furniture | Blue Earth
percent of his store to their furniture—one time that he didn’t follow his father’s advice about putting all his eggs in one basket. “Dad didn’t think I should do it,” he said. “He was worried that if England went under, I wouldn’t have ties with other companies.” But Ankeny’s gut told him to plow ahead with the decision. “I stick with my salesmen, and when they make a change, I trust them,” he said. According to Ankeny, when a salesman leaves a company, it’s generally to offer a better product. Ankeny dropped Serta when his salesman did, both out of loyalty to his seller and because Menards and other big box stores had started carrying the same products. “All people saw was that they sold the same brand for lower prices, and it was hard explaining that it wasn’t the same product or quality we were selling,” he said. The change proved to be a good one. Ankeny says there are 800 mattress manufacturers in the United States, and Restonic
is in the top ten. “Most people have never heard of them because they don’t nationally advertise, but who pays for advertising anyway? Consumers. And for the dollar, Restonic is the better product,” he said. According to Ankeny, England is the best company he’s ever gotten involved with. “We sell furniture in the upper middle price range, so it’s not the most expensive, but it’s not cheap either,” he said. “England has been in business for 50 years, and their claim to fame is their speedy special orders. They carry 400 different fabrics, and, because they own the bolts of fabric rather than buy them, it speeds up the process. Special orders take only 21 days. Back in my dad’s day, they took eight weeks.” Ankeny has samples of each of these colors and fabrics in his store at all times, which means he can offer a particular piece of furniture in practically 400 colors. Listening is much of Ankeny’s success, a skill he attributes to his dad, who could
put anyone at ease. “Ninety percent of sales is communicating with your customer and listening to their needs,” he said. From all this listening, Ankeny was able to hone in on changing customer needs and change his inventory accordingly. While his store used to offer the highest quality of furniture, which ran between $1,200 to $1,500 for a piece, now the majority of his pieces sell for closer to $599-$999. They also come with 10-year warranties on the cushions and lifetime warranties on the frames. “Nowadays people want to switch furniture more than they used to, so spending $1500 on one piece doesn’t make sense,” he said. “Customers want a whole room of furniture for that price—a couch, a loveseat, a chair and end tables—and still get good quality.” And that’s what Ankeny Furniture delivers. The business has always served the Blue Earth and surrounding area, but only in the last eight years has Ankeny seen a
L I T I G AT I O N • B U S I N E S S • F A R M • P E R S O N A L
SAME VISION We’re moving in May!
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NEW VIEW
Since 1983, Blethen, Gage and Krause has made our home in the heart of Mankato’s City Center at 127 South 2nd Street. Thanks to continued success and steady growth, we have outgrown our current space. We are pleased to share that we will be moving to a new location in the Profinum Place tower at 100 Warren St. in May. This new location is only blocks away from our current office and is conveniently situated adjacent to the new City Center Ramp. We are excited to welcome our clients and business associates into our new office space and to continue our tradition of legal excellence and personal commitment.
blethenlaw.com Mankato, Minnesota
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Community Furnishings
Bruce Ankeny and mother Lois.
real influx of customers from Fairmont— mainly because Fairmont once had two furniture stores and today has only one. Now Ankeny Furniture sells throughout a 30-mile radius of Blue Earth, including
the northern tier of Iowa. “The biggest challenge of succeeding with a business in a small community is getting people into the store,” Ankeny said. “Small town businesses don’t have the buying power to meet minimum orders, so we need to find companies that like Mom and Pop stores.” Though his dad and grandfather are gone, Ankeny still runs a semi-family business. His mother and daily lunch partner, Lois, helps at the store Saturdays. At 81 years old, she’s still also the part-time bookkeeper in addition to her full-time position as a tax accountant for a law firm. Brandon Ankeny, a computer technician, delivers furniture after work and Saturdays along with high school student Chandler Kienitz, while fellow student Adrien Witlieff comes in after school every day to serve ice cream and coffee. Adding to the success of the team, Alice Odden works on Mondays, while cousin Shelly Griemann works Tuesdays and Wednesdays and one Saturday a month, giving Ankeny
THE ESSENTIALS
Ankeny Furniture Address: 230 Main Street Blue Earth, MN 56013 Telephone: 507-526-2407 Facebook: Ankeny Furniture
a day off. Finally, with daughter-in-law Ana Ankeny running the frame shop, it’s not unusual to also see a grandson toddle over to Grandpa Bruce anytime with a welcome hug and a giggle. “I feel blessed having both family and friends to work with in a fun and relaxing environment where we can share ideas and visions,” he said. “Having people I can really trust has been important also.” Deb Schubbe writes from Wells.
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5 YEAR AGO
MAY 2010 Brad Buscher, of Bankers American Capital Corp. and Mercury Waste Solutions in Mankato, was the main feature in this issue. Profiled companies included Minnesota Control Company in Waseca and Karan Farms in St. James. Great quote from Buscher on how he chose what companies to invest in: “You try to find a product or service that everyone must have. In other words, can you imagine not having a wireless telephone today? These opportunities still exist. You have to think into the future.” 10 YEARS AGO
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MAY 2005 Our cover story was Dr. R. Wynn Kearney, senior partner at Orthopedic & Fracture Clinic in Mankato. Profiled companies were the Madelia Community Hospital and Sealed Bid Marketing in Fairmont. One good quote from Kearney: “It’s important for the future of our country to control medical costs. I don’t think politicians really understand how important it is… Now costs are spiraling out of control and no one has figured out how to keep premiums at reasonable levels.”
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MAY 2000 Our cover story featured Mark Furth, CEO of Associated Milk Producers Incorporated in New Ulm. A secondary story featured Roger Kienholz, CEO of Crystal Co-Op. Profiled companies were Angling & Hunting Adventures in Fairmont and the Marian Anderson Gallery in Mankato. 20 YEARS AGO
MAY 1995 This issue didn’t feature a cover person— that didn’t begin until 1996—but profiled two area companies: Jarraff Industries in St. Peter and Micro Business Solutions in Mankato.
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HOT STARTZ!
Very New or Re-formed Businesses or Professionals New To Our Reading Area
Your Organized Home Jayne Jensen has always had a knack for organizing. When other kids her age were coming home from school to watch cartoons, she would head to her bedroom with a duster and plan ways to reorganize her space. “I’m just a naturally organized person,” she explained. “It’s second nature to me. Even at home, it’s nothing for me to take an hour to clean out the refrigerator or go through the medicine cabinet.” Yet until recently, the Mankato native didn’t consider turning her talents into a full-time business. Instead, growing up, she planned on joining her family’s mortuary business. When she graduated from Mankato East High School, she attended the University of Minnesota for degrees in liberal arts and mortuary science. Once she finished her studies in 1992, she put her knowledge to use working at funeral homes in Belle Plaine, Shakopee and New Ulm until 1998, when she took a new job at Christensen Farms in their HR department. After working there until 2004, Jensen left to become a stay-at-home mom for her two children. It was during this time that she happened to learn about a professional organizing service, and that got her thinking. “I thought, ‘What? There’s a job for this?’” she recalled. After weeks of research and shadowing another industry professional, Jensen launched her business: Your Organized Home.
She offers a variety of services, from a simple room change to completely overhauling a person’s home. She also helps customers organize homes for auction sales or plan for a move. As she works with her clients, she teaches them ways to stay organized in the future so they won’t need to come to her. “There are all sorts of little tricks to help people stay on top of things,” she said. “The one thing that has always kind of stuck with me is to not lay anything down on a flat surface. Always put something immediately in its home. A pile starts with one thing.” YOUR ORGANIZED HOME Telephone: 507-279-9016 Website: www.yourorganizedhome.com Facebook: Your Organized Home LLC
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MEET OUR NEW SENIOR VICE PRESIDENT Shane Van Engen is Frandsen Bank & Trust’s new senior vice president in Mankato/North Mankato. With 13 years of banking experience and a certified public accountant’s license, Shane’s expertise and Fransden’s community-first approach will help local businesses meet their financial needs and grow.
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Lil’ Bees Learning Center
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Growing up, Brandon Olson always wanted to start his own business—but running a daycare center was never on top of his list. “If you’d asked me 20 years ago if I’d ever operate a daycare, I’d have said no way,” he said. Now, however, Olson is the owner-manager of the Lil Bee’s Learning Center in Mankato—and business is buzzing. Olson grew up in St. Peter before heading to Minnesota State University to pursue degrees in management and financial planning. After graduating, he began working at the State Farm agency in Mankato. Along the way, he met and married his wife Brooke, and the couple has three children: 8-year-old Briah and 3-year-old twins Brogan and Bray. According to Olson the daycare business really goes back to when the twins were first born and he and his wife tried to find a good daycare for them. All the good centers were full and had long waiting lists, he said. While the couple was eventually able to find an at-home daycare, it didn’t offer care for kids entering preschool. So when the twins turned three, the Olsons once again began looking for daycare—only to come up against the same long waiting lists. But then Olson met a property owner who came to State Farm looking to insure a daycare center. Instead, Olson ended up buying the property himself in November to start a new daycare center there.
“It all clicked together,” he said. Olson named the center “Lil Bee’s” after the five people in his family whose names started with B. He works there full-time, along with 15 employees. While not licensed as a preschool, his daycare does offer preschool curriculum, and he says everything they do is education-based. He opened the doors on Feb. 16 and already has 52 kids— and a waiting list for the infant room that stretches until Feb. 2016. In fact, there has been so much interest that he’s already planning to add another preschool room, as well as perhaps buying nearby property for a bigger expansion or starting a similar center in another location. LIL’ BEES LEARNING CENTER Address: 1821 Bassett Drive, Suite 103 Telephone: 507-720-5104 Facebook: Lil’ Bee’s Learning Center
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HOT STARTZ!
Very New or Re-formed Businesses or Professionals New To Our Reading Area
Attorney Matt Hu When Sung Woo “Matt” Hu was growing up in South Korea, he would watch American crime dramas and dream of working in a U.S. law office himself one day. Now, three decades later, he’s made that dream come true. Hu grew up in the Korean city of Masan. When he finished fifth grade, he and his mother moved to Paris, where he spent the next two-and-a-half years studying at an international school and learning both English and French. “It was a really interesting and exciting time of my life,” he said. “It opened my eyes to the outside world and showed me that there were so many things to learn.” Once he returned to South Korea, he resumed his studies and did well enough at school to qualify for the Seoul National University College of Law, the country’s top university. “In Korea, if you’re smart, you either become a doctor or go to law school,” he explained. “But I didn’t really enjoy the study of law until I came to the U.S. and studied at an American law school.” After finishing his studies in Seoul in 2011, Hu applied to study in America. He was accepted into the University of Chicago, where he studied before transferring to the University of Minnesota. While he was still in school, he took a summer internship at Kim & Chang, the largest law firm in Korea. But he knew that he wanted to stay in America to practice. Luckily,
right after graduation, he was offered a job at the New Ulm law firm of Gislason & Hunter, which he started in August 2014. Hu practices several types of law, with tax law being his favorite. He said the plan is to continue working at the law firm for the foreseeable future, as long as he’s able to obtain the necessary work visa. “I came here because of the potential opportunities, and that’s exactly what I’m experiencing now,” he said. GISLASON & HUNTER, LLP Address: 2700 South Broadway Telephone: 507-354-3111 Website: www.gislason.com
To be considered for one of three spots in the July Hot Startz!, email the editor at editor@connectbiz.com. Businesses considered must have started—or changed greatly in form—within one year of our publishing date. Professionals chosen must be new to our reading area.
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PRESS RELEASES
INSULATION To submit a press release for publication:
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Blue Earth Ten municipal electric utilities in Minnesota passed milestones by receiving their first financial benefit as new transmission owners from the Central Minnesota Municipal Power Agency.
Fairmont The City of Fairmont will host the third annual PlayCleanGo Day on June 13, which coincides with National Get Outdoors Day. To participate, email event details to info@playgocleango.org. Citywide Cleanup is scheduled for May 2 from 9 a.m.-12 p.m. at the fairgrounds. From the Chamber: New members include S&J Excavating, Inc., Tami’s on the Ave, Indulge Salon and Spa, and Timeless Designs by Melissa. The Chamber is collaborating with the Fairmont WorkForce Center to host the 2015 Area Job Fair, which will run 3-6 p.m. at the Five Lakes Centre on May 19. Businesses can register to participate by calling Callie Austin at 507-235-5547. Cost is $40. The Chamber also selected its 2014 businesses of the year in February. Kahler Automation was selected “Big Business of the Year,” Sweet Financial Services was selected as “Small Business of the Year,” and Serenades by the Lake was selected as “Rising Star.” The Chamber is hosting an upcoming “Lunch & Learn” event on May 27 dealing with Internet Technology and Security. Applications are now being accepted for the 2015-2016 Leadership Martin County program. The deadline for the program is July 1. Applications are available by contacting Callie at the Fairmont Area Chamber of Commerce at 507-235-5547. Fairmont residents can recycle old fluorescent light bulbs on May 7, at the northeast corner of the old Kmart parking lot from 9 a.m.-1 p.m. Fairmont Public Utilities customers are eligible for total reimbursement for bulb recycling costs.
Great Plains Transportation, Inc. is celebrating its 20th anniversary this year. The independently owned business, which was formed in 1995, is an invoice funding/ factoring company that has clients all over the Midwest. Profinium, Inc. recently promoted Melissa Engelby to director of Mortgage and Personal Banking. Engelby has worked at Profinium since 2006. C&B Operations, LLC is offering technical college scholarships and internship opportunities to area high school graduates who seek a career in ag equipment service. Candidates may apply online or by visiting any of the nine C&B Operation’s dealerships in southwest Minnesota. Applications are now being accepted to participate in the 2015 Interlaken Heritage Days Parade on June 13 at 6 p.m. Deadline for parade entry is May 15. If interested contact Bev Korolewski at 507-848-6381. The Martin County Pork Producers and the Agri-Business and Ambassador Committees of the Fairmont Area Chamber of Commerce will host the 23rd Annual Minnesota State Pork Masters Golf Outing on July 27 at Interlaken Golf Club. For golf or sponsorship information, call Curt at the Chamber office at 507-235-5547 or email curt@fairmontchamber.org. Rural Advantage is offering community members a free 20 by 20 garden plot located at Heritage Acres for the upcoming 2015 growing season. Individuals and families interested in a free plot need to contact Rural Advantage at 507-238-5449 to sign up.
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Gaylord The Gaylord Area Chamber of Commerce welcomes new member Classy Budget, a new business in town.
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Eide Bailly was honored as the Chamber’s March business of the month, and Edward Jones-Gary Walters was honored as April’s business of the month. The Madelia Chamber of Commerce is looking for donations to buy new Christmas decorations. The 2015 Park Days will include an extra event this year: the Rivers Edge Art & More Fair, held on July 11. The event will feature original work by more than 40 artists. Anytime Fitness and Whitestone Cleaners both earned First Dollar Awards. Wireless World recently hired a new manager, Kyle Kortz. American Family Insurance recently hired Jeremiah Miller. The Madelia Community Hospital & Clinic recently hired new provider Idil Mohamed. The Madelia Community Hospital & Clinic is hosting sessions on “Living Well with Chronic Conditions.” These sessions take place every Tuesday from 9-11:30 a.m. at the Lake Crystal Area Recreation Center until May 26. To register for these free workshops, call 507-642-5211. The first annual Hawks Hues 5K Color Run will be on May 17 at the Madelia Town Hall, starting at 1 p.m. The route is 3.2 miles and the fee is $30 for adults and $20 for children 5-10.
Mankato From Bremer Bank: Jolene Wall was recently promoted to vice president of private banking in Mankato. Chris Willaert was recently named Mankato Sports Commission Director of Visit Mankato. From Marco, Inc: Mike Welling was promoted to director of managed IT services. In addition, Clint Dorgan was promoted to production systems sale manager. Marco, Inc. has purchased Solbrekk, Inc., a business IT services company located in Minneapolis. Greater Mankato Growth has named Sam Ziegler as the director of Project ABE (Agricultural Business Epicenter). Ziegler has spent nearly 10 years with the Minnesota Soybean Research & Promotion Council and Minnesota Soybean Growers
Association. Greater Mankato Growth has also announced its 2014 Volunteer of the Year award recipients: Yvonne Cariveau, Cindra Kamphoff and Ann Vetter (awarded posthumously). Jim Santori has been appointed new Director of New Business Development for Greater Mankato Growth. GMG will be hosting a luncheon with Minnesota State economist Laura Kalambokidis on May 7 from 11:30 a.m. to 1 p.m. at the Greater Mankato Business Development Center Sakatah Trail Room at 1961 Premier Drive. Kalambokidis will speak on the state of Minnesota’s economy. Region Nine Development Commission Executive Director Nicole Griensewic Michelson has been appointed the treasurer of the Greater Minnesota Partnership’s Board of Directors. Region Nine is hosting an outreach site for the Senior LinkAge Line, a free statewide service aimed at helping older adults live well. A trained counselor will be at the Mankato City Hall building the first and third Thursday of every month. ISG (I + S Group) was recently awarded a 2015 American Council of Engineering Companies (ACEC) Award of Excellence for its work on the water treatment plant in Fairmont. The BackPack Food Program has moved into a new facility at 2120 Howard Drive West in North Mankato. The Boy Scouts of America recently awarded the Twin Valley Council “Journey to Excellence” gold status, noting the council as being in the top 10 percent of the nation. The Twin Valley Council is one of two councils in the area that achieved gold the last two consecutive years. Bank of America has donated one property to Habitat for Humanity of South Central Minnesota to build the 111th completed home in the area since 1990. Courtyard by Marriott Hotel & Event Center received the 2014 Platinum Circle Award for Courtyard by Marriott Hotels at the most recent Marriott International General Managers Conference. Lime Valley Advertising, Inc. received three Service Industry Advertising Awards for communication excellence for the eleventh time in February. Over those
eleven years, Lime Valley has garnered 49 SIAA awards, more than any other agency in Minnesota. The Mankato YMCA recently hired a new wellness director, Stephanie Howe. Kato Insurance Agency, Inc. was recently named by the Midwest Family Mutual Insurance Company of Minneapolis to its prestigious President’s Club. The award recognizes outstanding continued service to customers and community as well as superior performance. Thrivent Financial has been named a World’s Most Ethical Company for the fourth year in a row by the Ethisphere Institute. U.S. Bancorp was named the most admired super regional bank for the fifth consecutive year by Fortune magazine. Bryan Sowers, a vice president of commercial banking at U.S. Bank, was recently the winner of U.S. Bank’s Annual Pinnacle Award, the company’s highest employee achievement honor. In addition, U.S. Bank has named Matt Holt as a credit analyst for its commercial banking team. The bank also hired Joshua Schweim as a commercial credit analyst and promoted Alec Pfeffer to relationship manager. The Mankato Clinic will offer free car seat safety classes on June 11, July 16, Aug. 13, Sept. 10, Oct. 8, Nov. 12 and Dec. 10 at the Children’s Health Center Campus from 7-9 p.m. To register, call 507-389-8522. Minnesota State University, Mankato has entered into a partnership with South Central College, the Future Maverick agreement, where students who complete their 2-year associate in arts degree at SCC’s North Mankato and Faribault campuses and meet academic requirements will be able to seamlessly transfer to MSUMankato to complete their bachelor’s degree. This agreement also allows some students to be admitted to both institutions simultaneously. The Enventis Community Fund of the Mankato Area Foundation has awarded 23 grants totaling $150,000 to non-profit organizations in the area. Edward Jones Sander Ludeman was recently among only 944 financial advisors out of 14,000 who qualified for the Edward Jones Financial Advisor Leaders Conference.
Weichert Realtors recently announced its 2014 Office Award winners, elevating Stephanie Jacobson to the Executive Club for outstanding sales performances and honoring Sara Fette with the Sales Achievement award for 2014. Century 21 Landmark Realtors received the Century 21 Quality Service Office award for its commitment to providing customer service to its clients. This award is based on customer feedback through a quality service survey. Blethen, Gage & Krause will be relocating their office to Profinium Place tower at 100 Warren St., Suite 400. The move will take place mid-May. Condux Tesmec recently announced the addition of Bryan Thompson as its new field service manager. Lumiere Real Estate Group is a newly formed real estate company specializing in residential sales and services. To learn more, visit lumiererealestategroup.com or call 507-386-7563.
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North Mankato Amber Pietan of Amber Pietan Travel Agency, LLC was ranked 13 out of 3,000 independent agents from Outside Agents worldwide. Students from South Central College earned top scores at the Minnesota State Collegiate DECA Career Development Conference in February and went on to compete at the international conference in April. South Central College also recently had 24 of its students score top marks at the Business Professionals of America State Leadership Conference, doing well enough to qualify for the National Leadership Conference in May. The South Central College Campus Foundations in North Mankato and Faribault each received $10,000 from the Gene Haas Foundation. The funds are earmarked for scholarships for new Computer Integrated Machining students on each campus. From Computer Technology Solutions: Dave Norris has been promoted to chief operating officer and Nicole Siirtola has been promoted to business manager.
Incentives for Job Creation SHOVEL VEL READY DY LOTS S
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PRESS RELEASES
Jordan Sands, LLC has opened its Eagle Ford distribution site and begun stocking product at the Terracor facility in Gardendale/Cotulla. Jordan Sands recently hired James Hallbeck as its director of sales. Label Works was recently honored by Graphic Design USA in its packaging awards competition. The company earned a certificate of excellence for a series of Whiskey Bottom Candle labels printed for Octavo Designs. Frandsen Bank recently hired Shane Van Engen as senior vice president at the North Mankato office.
New Ulm The 2015 Martin Luther College Golf Classic will take place at the New Ulm Country Club on June 8 and raise money for campus improvements and scholarships. Registration is $100 for a nonmember with a cart and $60 for a member. The Brown County Habitat for Humanity is hosting a Texas Hold’Em Poker & Bingo fundraiser from 6-10 p.m. on May 14 at the New Ulm Event Center. To learn more, contact Habitat for Humanity. The first annual Spring Into Summer Women’s Expo will be from 9 a.m.-3 p.m. on May 1. For more information on this free event, email Keith at ketih@knuj.net. The City of New Ulm has announced its 2015 Festival Schedule, with Mai Fest on May 2 and Bacchus Fest on May 16. Autofest will be June 28, Bavarian Blast will be July 17-19, Riverblast will be Sept. 4-5, Hermann Fest will be Sept. 12 and
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Oktoberfest will be Oct. 2-3 and 9-10. The City of New Ulm will also host both Quiltistry and the Summer Party at the Flying Dutchmen Motorcycle Club on June 27, as well as Crazy Days on July 17-18. The Oak Hills Memorial Foundation is hosting its first annual Foundation Frolics on at the National Guard Armory on May 1 at 6 p.m. Tickets cost $35 per person and can be made by calling 507-276-7890 or emailing mbdomeier@newulmtel.net. The MN River Valley National Scenic Byway has launched a new and updated website, www.mnrivervalley.com. The site includes maps, itineraries, a calendar of events, history of the byway, and more.
Owatonna AgStar recently donated $2,500 to support Southern Minnesota Initiative Foundation’s (SMIF) general endowment fund. AgStar has been an annual supporter of SMIF since 2007 and has invested more than $185,000 in SMIF so far.
St. James St. James U.S. Postal Service worker Leslie Todnem was inducted into the UPS prestigious Circle of Honor for achieving 25 years of accident-free driving.
St. Peter From the Chamber: new members include Bushaw Business Services, St.
Peter Yoga Studio, the Small Business Development Center, the Jana Klein Agency (American Family), Goodtimes Manufacturing, Osborne Artwork, Open Door Health Center and Flying Buttress Media, LLC.
Waseca iWealth employee Brad Connors was recently named one of Investment Centers of America’s Top Ten representatives of 2014. The company also recently hired Chris Rettrath as an associate wealth advisor. iWealth will be hosting a Wealth Management 101 Workshop from 1:30-6:30 p.m. on May 7 at the Southern Research & Outreach Center. The National SCORE Association has awarded the South Central Minnesota Chapter a $5,000 grant to extend SCORE services to new clients in this area. The Waseca FFA received a $2,500 donation from America’s Farmers Grow Communities. Alex and Andrea Hoehn were named Waseca’s Outstanding Young Farmers for 2015, while the Farm Family of the Year went to Jason and Kathy Witt and their family. The Waseca Area Chamber of Commerce awarded business progress awards to Anytime Fitness, Whitestone Cleaners, Century 21 Amy Borneke and Radio Shack. New members to the chamber include Hansel & Gretel Preschool, Jim Gibson and Homestead. The Waseca Walmart was selected Store of the Year for the region.
NATIONAL OPINION
The world seems to be becoming more dangerous these days. Not so coincidentally, America’s military power continues to decline rapidly. Before considering how and why, here’s a snapshot of what’s happening around the globe: 1) Russia has annexed Crimea, is dismembering Ukraine, is probing the defenses of Northern Europe, and is again casting a covetous eye on the Baltic and South Caucasus states. President Vladimir Putin is exploiting not only Europe’s dependence on Russia’s energy resources and markets but also its anemic military condition, getting all he can while the getting is good. 2) The Islamic State, homicidally focused on dragging the world back to the seventh century, has carved a caliphate out of the dysfunctional states of Syria and Iraq. It’s fomenting instability across the region through its surrogates and franchises and other like-minded violent Islamists in Yemen, Jordan, Lebanon, Egypt, Libya, Tunisia and Nigeria. 3) Iran is pursuing a nuclear weapons capability, betting on the desperation of the U.S. to secure a “deal” that would make it impossible for us to stop them from succeeding.
In times past, the United States would have risen to such challenges to its security interests and to the existing global order, as it did when the Soviet Union or China sought to export their brands of communism. America’s confident strength steadied friends and allies and pushed back against belligerent opportunism. But those days appear to be receding. The U.S. has elevated other interests to higher priority (as a look at the federal budget readily shows), and the U.S. military’s ability to protect America’s global interests is in free fall. In fact, the U.S. military now finds itself in a state where it would be unable to successfully handle two major conflicts in different parts of the world, a long-held objective of national security policy. America’s Navy, at 285 ships, is approaching pre-World War I levels; its Air Force flies planes more than a quarter-of-a-century old Dakota L. Wood (some more than a half-century); the Army is approaching half the size deemed necessary just a few years ago; and the Marines, with demand for their shrinking force at record highs, have committed indefinitely to near-continuous rotational deployments of their operating forces. This problem did not suddenly emerge. It has slowly, but relentlessly evolved as funding for the base-budget has declined in constant dollars, and the cost for manpower, equipment, and weapons has steadily
risen. Extended production timelines for expensive, high-end platforms, sustained use of the force for the past decade or more, and lack of funding to replace items that are retired or lost in combat, have combined to result in a force that is older, smaller and more worn out. All the details can be found in The Heritage Foundation’s inaugural Index of U.S. Military Strength, an annual publication that assesses the condition of America’s military forces and their ability to meet national security requirements. It also evaluates the condition of key allies and their regions as they affect the ability of U.S. forces to conduct operations abroad, as well as who poses direct, high-level challenges to U.S. national security interests. Some may suggest looking to America’s allies. Though reasonably stable and steadfast, they are less capable due to their own neglect of their military forces. We can’t assume they’ll be able to contribute much. Further, competitors that pose serious challenges to America are investing heavily in military capabilities carefully matched to their own circumstances and objectives, increasing the challenges our forces would face. These trends are ominous, to say the least, especially because it’s far easier to decline still further than to make rapid improvements that take substantial time, money and attention — all of which seem to be in short supply. The 2015 Index of U.S. Military Strength makes it clear that unless we take a greater interest in the state of our security — now — we may be in for some serious trouble. Dakota L. Wood is the Senior Research Fellow at the Heritage Foundation.
4) China is entrenching itself in disputed waters, fortifying atolls, muscling away the fishing and commercial fleets of competitor claimants, and contesting international airspace. Meanwhile, it’s exploiting vulnerabilities in America’s cyber shields to steal intellectual property worth billions of dollars and millions of man-hours, penetrate government and financial sector systems, and conduct deep cyber reconnaissance of America’s national critical infrastructure. MAY/JUNE 2015
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