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PASSIONATE EXPERTS 5 0 7. 3 8 7. 3 1 3 1
C 2 1 AT WO O D. C O M
CONTENTS
November | December 2021
28
10 COVER INTERVIEW
COMPANY PROFILE
COMPANY PROFILE
Kahler Automation
Blue Earth Monument
Wells Concrete
FEATURES
DEPARTMENTS
HOT STARTZ!
30 Years of Success and Growth 24
Creating Lasting Tributes
Special Report
What’s the Buzz on EOS?
35
Connecting Back
38
GreenSeam Collaboration
Riding The Market Roller Coaster
7
Business Snapshot
9
Business Snapshot
iSpace Environments Staloch Group Northwestern Mutual
57
Ask A Professional
58
Industry Insight
Wells Expands Its Footprint 43
MANKATO
Sadaka’s Deli
ST. PETER
Minnesota Wing Kings
ST. PETER
Ouren Instruments
What Do Malware, Viruses and Trojans Do To A Computer? Constructing A New Way To Give
Connecting Southern Minnesota Business People Since 1994
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STAFF & CONTRIBUTORS
CIRCULATION
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Publisher: Concept & Design Incorporated Editor: Jane Laskey
12,100 for November/December 2021 Published bimonthly
Art/Photography: Jonathan Smith
CORRESPONDENCE
Call: (507) 232-3463 E-mail: sales@connectbiz.com Information: connectbiz.com/advertising
Contributing Writers: Lisa Cownie, Nancy Zallek, Chad Aukes
Mailing Address: Connect Business Magazine P.O. Box 176 Nicollet, MN 56074 Send editorial correspondence to: editor@connectbiz.com Web: connectbiz.com Phone: (507) 232-3463
Production & Circulation: Becky Wagner Copy Editor: Julianne Kroon Printing: Corporate Graphics, N. Mankato Mailing: Impact Mailing 6
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ABOUT CONNECT 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, brand design, illustration and photography. Learn more at conceptanddesign.com. Copyright 2021. Printed in U.S.A.
Business Snapshot
Sponsored Content
Reinventing The Office iSpace Opens State-of-the-Art Showroom in Mankato
Let’s face it, these days “work” spaces are so much more than just a place to get work done. That’s important, yes, but those spaces are also used to engage others, to learn, even to relax. Where these spaces may be found has also changed. Work may be in a traditional office space, a co-working lounge or even in one’s home. iSpace Environments has also reimagined itself, bringing its integrated solutions of architectural products, furniture, technology and professional services to a state-ofthe-art showroom in downtown Mankato. “We excel at shaping environments that inspire, enable and empower individuals through imaginative, intelligent and intuitive solutions,” says Dan White, who serves as director of sales for furniture and architectural products. He is just one member of a customer-focused team of talented enthusiasts with one mission: create the best space, the best environment, according to each individual client’s needs. “It starts with getting to know our clients, understanding the goals they want to achieve, and providing solutions that will get them there,” says White. “People can buy office furniture anywhere. But we focus our energy on the whole experience. We want to show people how we can improve their whole environment; it goes beyond furniture.” iSpace Environments follows a three-phase approach to the customer relationship. The first phase is discovery. The team takes the time to discover the unique details about your company. Then they research and design the best solutions. Third, they effectively deliver the project while aiming to exceed your expectations. Moreover, iSpace will repeat the process with you to support your company’s evolution into the future. It’s an approach iSpace brought to the Mankato market in 2016. White was tapped to lead the charge in the company’s first out-state location – a location the company is investing time and resources in, most notably beefing up staff and creating a beautiful showroom in the downtown Graif Building.
Mary Kaus, Account Executive; Dan White, Director of Sales-Furniture; Becca Roberson, Sales Coordinator.
“This showroom is a great example of all we have to offer,” says White. “It’s in the heart of the City Center because being involved in the community, supporting our local partners, it’s all a part of the big picture for iSpace and one reason we’ve been so successful in this market.” The new showroom will open in November. Make an appointment to schedule a tour or meet with the iSpace team.
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CONNECT Business Magazine
7
INTRODUCTION
A Strong Close to 2021
Jane Laskey EDITOR
We close out 2021 with a bang! Despite supply chain issues and labor shortages, Minnesota businesses are quickly regaining lost ground after the pandemic shock of 2020. Our cover story highlights Kahler Automation in Fairmont. If you’ve driven by a large grain elevator or ethanol plant, chances are you’ve seen its products in action. A leader in the automation industry, it delivers automation solutions for processing bulk goods. Now in its 30th year, Kahler Automation welcomes a new CEO, John Christ, to its leadership team. Wells Concrete’s architectural and structural precast concrete products appear in many buildings in our region. After 70 years in business, its original Wells plant is still in action, and the company has expanded throughout the U.S. If there were an award for longevity, it would go to Blue Earth Monument, founded in 1877. Although its memorial etchings are no longer made with a hammer and a chisel, its focus remains the same: telling the final stories of Blue Earth’s residents. Our three features look at current trends in a variety of business sectors. First, our Groundbreaker interview with Greg Goebel at Investors Commodity Services Inc. examines the commodity futures market and its impacts on area farmers and investors. Next, the Business Trends section focuses on the rise in new business formations and the impact the growing demand for electric vehicles will have on our area. Finally, this month’s Special Report details the popular Entrepreneurial Operating System, a business management system. Finally, our HotStartz! section highlights three new businesses: Sadaka’s Deli in Mankato, and Ouren Instruments and Minnesota Wing King, both in St. Peter. Here’s wishing you all a successful close to 2021! Jane Laskey
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November | December 2021
Business Snapshot
Sponsored Content
Staloch and his team (pictured left to right): Kate Waagner, Brandon Flowers, Tiann Madson, Justin Fenlon, Colby Staloch, Maria Pinero, Jacob Runck, Mariah Proehl
Team Advantage
For more than 100 years, Northwestern Mutual has left its footprint on the financial world and its clients’ lives in southern Minnesota. With advisors across several offices in the region, they are part of that culture that has grown and adapted to the changes of the growing industry, built on a foundation of teamwork and collaboration. “We have an office in multiple spots for a one-team approach in southern Minnesota. People today value a team approach. Traditionally, clients were used to one advisor, one assistant, one corner office,” says Colby Staloch, the managing director at the Mankato office. “So for us to be able to work together, whether it is through joint work with our advisors, or internally with the team, we are much better when we work together. As a team, we collaborate to bring our clients the best financial foundation. It’s not just about one client.”
Working together through generations. Not only do they have veteran advisors who have been there for more than 30 years, they also have a wide range of advisors who have 10 to 15 years of experience. There are also new advisors coming in who can hit the marketplace to be at the center of their clients’ lives and help them in generational planning – a benefit that spreads throughout the area. Northwestern Mutual Southern Minnesota has offices in Mankato, Marshall, Faribault, Albert Lea and New Ulm, with the main hub for training centered in Mankato at a prominent Cherry Street office. When Staloch started in 2006 after first interning with the company, there were 12 people in the Mankato office. In 2021, 60 people make up the Mankato office and surrounding locations. They also have a booming internship program that draws for students from around the area, such as Bethany, Gustavus and Minnesota State University-Mankato – a testament to the company’s growing footprint from generation to generation.
“In the early ‘90s, we were an insurance company only, today we provide a balance of both insurance and investments. Every person, family, and business we meet with today receives a full financial plan. We believe that in order to be at the center of our clients lives it starts with understanding their key goals and objectives. When we couple that with the team approach we give our clients the best chance to be successful in the areas that are most important to them. Its not about one product, one cookie cutter solution – its about meeting the client where they are, where they want to be in the future and growing with them through our planning process and team approach.” Northwestern Mutual, a company that is rooted in the belief of a growth-minded culture and has adapted to the changes of a growing industry, to be at the center of its clients’ lives. Staloch Group Northwestern Mutual 111 West Cherry Street, Suite 200 Mankato, MN 56001 Phone: (507) 625-9400 Website: colbystaloch.com CONNECT Business Magazine
9
Kahler Automation, like the Kahler family, is firmly rooted in the fertile soil of Martin County. It sits nestled between the city of Fairmont and the abundant fields of corn, grain, and soybeans that surround the community. The first Kahler business in Fairmont was Kahler Electric, which was founded in 1949 by Roy Kahler. Roy Kahler's sons, Doug Kahler and Wayne Kahler, soon joined him in the business. Eventually, Wayne Kahler tired of wiring homes and started an automation division. There was a growing need for automation in the southern Minnesota agricultural community, a need Wayne Kahler was happy to satisfy. He hit a home run with his Fluid Dispensing System, which measures and dispenses farm chemicals into bulk containers. Automation requests increased, and by 1991, Wayne Kahler was ready to branch off and open his own independent John Christ, CEO. business: Kahler Automation. In 2021 Kahler Automation celebrates 30 years in business. It's come a long way over the last three decades. The company that started with only five employees now requires a team of 80 people to meet its customers' needs. Where once there were only one or two products, there is now a whole suite of state-of-the-art automation solutions. Its facilities have expanded several times to accommodate this growth, and the business now fills a 36,000-sq-ft space. Little wonder then, that Kahler's customer base has grown far beyond the farm fields of Minnesota, spreading to every corner of North America. Continues
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November | December 2021
CONNECT Business Magazine
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Kahler Automation Celebrates 30 Years, Welcomes New CEO
This year the company also welcomed a new CEO, John Christ. Christ is an engineering veteran with 32 years of experience, 15 of them in the automation field. He brings fresh ideas and energy to the company’s leadership team. But the Kahler family continues to maintain a strong presence, as well. Wayne Kahler guides the company as chairman of its board of directors. His children also play critical roles on the company’s leadership team: Chantill Kahler Royer is the chief financial officer, and Logan Kahler is the software engineering manager. Christ takes on a company that is at the top of its game. While agricultural customers remain its primary focus, Kahler Automation has broadened its customer base to serve new industries. Requests for innovative new solutions have driven an expansion in its product offerings. “Kahler Automation is made up of hard-working professionals committed to satisfying our customers. It is a very
easy group of individuals to manage, and I am proud to be part of such a successful organization,” Christ said. Today Kahler Automation’s product line includes three categories of automation products: bulk material handling, truck traffic control and industrial automation. Each product automates complicated processes, resulting in easier operation, higher accuracy, increased productivity and reduced overhead. You can find Kahler Automation’s bulk handling control systems throughout the GreenSeam region. These systems manage both wet and dry materials, such as fertilizers, chemicals and grain. Typical applications include grain elevators, ethanol plants and farm cooperatives. Its second product category is traffic control systems, which monitor and automate vehicle traffic at facilities. Kahler’s clients can choose from a wide variety of options to create the perfect system for their business, including sensors, access
controls, communications centers, camera systems, traffic lights and message boards. In addition, traffic control systems can be integrated with Kahler’s bulk handling systems. You can find them at bulk material handling facilities and road/rail transportation businesses. “It’s very seamless and efficient in terms of helping our customers get the most throughput at their facility. But, at the same time, it accurately manages everything down to the smallest amount of weight there that’s coming through the facility,” Mark Mohr said. Mohr is the vice president of sales and marketing at Kahler Automation. Kahler’s third product category, industrial automation projects, includes various customized services and applications, such as container filling systems, bulk material transfer and loading systems, and portable control systems. The company works with clients to design whatever system they need. Many of these options are massive systems capable of managing busy ports
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November | December 2021
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Kahler Automation | Fairmont
that transfer materials from trucks to trains and barges. Other applications include irrigation and wastewater treatment management; prison and hospital door access controls; loading and inventory tracking of liquid propane and NH3, or ammonia; and mining operation controls. Kahler creates unique software solutions to streamline its clients’ processes and ensure all systems are running as smoothly and efficiently as possible. Software offerings include Terminal Management TMX and Plant Supervisor PSX. In addition, client training is available to bring new operators up to speed. Finally, Kahler Automation prides itself on offering world-class customer support. That means 24/7 call support and keeping pilots on staff to whisk service technicians off to customer sites in one of the company’s three planes at a moment’s notice. I spoke with Christ and Mohr to learn more about Kahler’s plans for 2021 and beyond.
Mark Mohr, vice president of sales and marketing at Kahler Automation.
Tell me a little bit about your background and how you came to work at Kahler Automation. John Christ: I’m from the Chicagoland area. I’ve been a licensed professional engi-
neer since 2002. My career has been as an engineer in paper and steel mills. From there, I moved to Rockwell Automation, where I ran the automation group. I joined Kahler Automation in March 2021 as their CEO.
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CONNECT Business Magazine
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Kahler Automation Celebrates 30 Years, Welcomes New CEO
Mark Mohr: I’m originally from Illinois, but I’ve been in Minnesota for 18 years now, so Minnesota is my second home. My background is in agriculture and precision applications. My career has been in the agricultural chemical and fertilizer business, working with people in the field, making the applications and building the equipment to do that kind of work. I came to Kahler Automation about three years ago, working initially in territory sales and then in sales leadership. I’m currently the vice president of sales and marketing. Kahler’s roots are in agriculture. Is that still your focus, or have you expanded into other industries? Christ: Our roots are definitely in agriculture, so a lot of the automation we do is for that industry. There’s a lot of similar technology in some sister industries that our automation can also benefit from, so we have expanded into other areas outside the agricultural world. Who are your customers, and where are they located? Mohr: Our customers are companies that are managing or handling bulk materials, either wholesale or blending them into higher-value products. Typical customers are agricultural fertilizer and chemical retailers and suppliers who sell to farmers or apply those products to their fields. Grain elevators are a significant part of what we’re doing. So are port operators, where they’re bringing bulk materials on or off of ships or barges and getting them into
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November | December 2021
American Plant Food operation outside of Houston, Texas, includes a huge storage facility, ship-to-building conveying system, bulk weighing tower to load trucks, and a railcar loading building.
the supply chain. They’re located all across North America. We’ve done some work outside of North America, as well, but the great majority of our business is bulk material handling in North America. Christ: Global is not our primary focus, although we have done some projects globally. Why do your customers need you? What are the pain points that your products and services solve for them? Christ: We help our customers seamlessly automate their processes while updating their ERP systems with real-time information. When
Kahler Automation | Fairmont
after year, turn after turn in that building. So the payback (on their investment) from improved accuracy is very short. It’s a quick payback to automate and have the level of control that we can provide.
United Farmers Cooperative in Farragut, Iowa, features two bays to provide dispensing for fertilizer and chemicals, including 24/7 unstaffed dispensing.
you’re doing it manually, there are inaccuracies. You don’t have precise inventory control. And that has financial repercussions. Our products add precision to order fulfillment and ensure the financial side of their business is accurate. When your process needs control, we’re the outfit that does it. Mohr: Inventory accuracy is key. We have customers who will tell us that in the past, prior to automation, they would have to adjust their inventories by half a percent. They knew they’d receive the product, but they lost track of it in the loadout and blending process. When you think of a facility that has millions of dollars of product in it, a half percentage point is a big number, especially year
Help me understand the scope of your business. Christ: We have one manufacturing location here in Fairmont. It’s a UL-listed shop, and our equipment goes through rigorous quality inspection prior to shipment. Our projects are primarily in North America, but we have done some international projects. When the customer is ready, we send experienced technicians on site to commission their system. After the sale, we offer 24/7 technical support. We have multiple airplanes and a fleet of company vehicles that allow us to support our customers quickly. We deliver around 200 projects annually, and they range in size from a couple of thousand dollars to millions of dollars. So it’s a full gamut. Mohr: One of the facilities we’re focused on is loading a unit train per day. That’s a lot. That’s 100 (train) cars loaded, or we may be talking about hundreds of trucks that they’re capable of loading and very high volume. How many employees do you have? What are your needs for the future? Christ: We have 80 employees located throughout the country. We’re always looking for qualified people to join the team, for talent that can help us see things in a different way or service our
CONNECT Business Magazine
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Celebrates 30 Years, Welcomes New CEO
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customers better. When we talk to people, we want to make sure that they meet our core values. (This is) the type of people we want to bring on board. We hire seasoned professionals and new folks that are coming right out of school, too. When we hire sales staff, we want them to have some experience in this type of business. They’ll have contacts, and they’ll know the jargon. But at the same time, we hire people right out of technical schools, too, and train them. They bring some new ideas with them. We love to listen to some of the new talent that comes in. Do you partner with local community colleges or mechatronics programs? Christ: We do. That’s one of the things that we’re very proud of. We’ve donated equipment and things like that to tech schools and trade schools so that people can work on the equipment that we’re deploying into the field. It refreshes the pipeline for us, and it pays dividends. We have a lot of folks on our floor that came out of that environment. They were educated at schools that we’ve been donating to and participating with. Mohr: In addition to that, some of our employees are very much involved with these schools, as well as with the high school level. They work with robotics teams and help the next generation understand the interesting career opportunities that are right here in their backyard. What sets you apart from your competitors? Christ: Our unparalleled 30 years in the industry is a big reason customers choose to automate with Kahler Automation. With 30 years of experience, you can imagine everything we’ve learned and incorporated into the automation solutions we provide for our customers. That is a differentiator in this industry. We offer world-class automation solutions using the best products the industry has to offer. Our Plant Supervisor (software) and Terminal Management software are leaders in the industry and manage customer facilities. We are also a leader in our post-sales technical support and on-site services. Problems happen at their facilities, not necessarily with our products, but they need support from time to time. This gives our customers the confidence that we are
Kahler Automation | Fairmont
with them in all phases of their automation life cycle. When our customers have new employees come on board, we train them to be experts on our system before they hit the floor and trucks start rolling through their facility. If you see our website and all the tech support stuff we do for customers, it’s impressive what we’ve done. All these things are big things for our customers. Mohr: Three areas set us apart. First, your business depends on uptime. Our service and support are critical to that. Second, there’s our ability to integrate our unique solutions with the customer’s business, including the accounting side, for accurate business operations. The third part of that is our ability to combine technologies and automation solutions into a robust solution that does just what our customers need. We can do that with custom solutions for unique applications, but we’ve also done more than 5,000 automation projects over the past 30 years. So we have a deep understanding of our standard products that we can draw from. Combining those three things – custom and standard solutions, customer support, the ability to integrate with your business – really gives us a unique solution, which is an advantage with our customers. Tell me about your company culture. What’s it like to work at Kahler? Christ: We have a dedicated group of employees, and we live by our core values. We are customer-focused. When we say we’re going to deliver, we deliver. It’s a mantra for all of us. We’re all focused on that. Our passion for service and focus on delivering a quality product or solution is what differentiates us from others. I have the advantage of working with just a fantastic leadership team and so many dedicated employees. We all know our jobs. We all know the vision. We’re all focused on it, and every day we’re working toward it. So there’s a lot of innovation and freedom to do the right thing for the customer here. Mohr: Our values sum it up. We’re dedicated to service, we’re curious about what the customer needs, and we all try to live the values. So when a problem, question or opportunity comes up, and we don’t know initially what the right answer is, our values guide us to it.
We’re local enough to care about every client and big enough to bring innovation along for the ride.
Bolton-Menk.com CONNECT Business Magazine
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Kahler Automation Celebrates 30 Years, Welcomes New CEO
What are the keys to your growth and success? Christ: It really comes down to our employees. Getting high-level professionals makes us grow, and it allows us to dabble in other sister industries and deliver excellent projects. That’s why the key to our growth and success has been and always will be our employees. We are all focused on creating high-quality solutions that make our customers more successful. Whether it is increased uptime, higher efficiencies, or providing precise (quantities) to their customers, our customers rely on Kahler Automation to achieve their business objectives. This is a relationship business. When we deliver excellent projects, we get referrals, and those referrals keep coming back to us. That’s the key to our growth. Have you encountered any challenges other than the minor inconvenience of a global pandemic? Christ: That is the big challenge for us,
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November | December 2021
and it’s really not the pandemic itself. We’ve figured out how to work remotely, and we’ve mastered that. We have a new phone system, for instance, to better service our customers and measure how quickly we return phone calls. We’re all about measuring. The biggest challenge is the current economic climate, particularly the supply chain. The volatility of commodities and shortages of components have impacted our customers and us. You’ve heard about the chip shortage for automobiles? We hear about it all the time, but it affects a lot of electronics, too. It’s starting to surface. We planned for it. We keep a lot of inventory in stock. But we’re starting to see deliveries get extended out, and that’s a challenge for us. It’s a challenge for our customers, too. Mohr: One thing that helps is that they’ve already been hearing about it in the news by the time we’re having a conversation with a customer about it. Our customers understand that all industries and all businesses
are experiencing this right now. It’s good that we’ve held on as long as we have with our supply chain supporting us. But we’re starting to feel it. Are shortages and delays affecting your pricing? Christ: Not yet, but it could if it doesn’t turn around. Our inventory is going to start going down on certain items. But we’ve been pretty creative about addressing the problem in different ways. What achievements are you most proud of? Christ: We are very proud of many of the innovative solutions we’ve brought to the industry. We’ve been early adopters of technology. The mass flow meters for product dispensing are a prime example. Kahler introduced it years and years ago as a way to measure liquid products. At that time, it hadn’t been done before. So that’s something that we brought to the
Kahler Automation | Fairmont
industry and were able to incorporate into our design. Now everybody’s using it, and it’s an industry standard. We’re very proud of being a leader in this industry. We are also extremely proud of how we interact with the local community and its charities. We both sponsor and participate in many community events, and our employees freely volunteer their time to support local charities. We also support local colleges and trade schools through equipment donations and internships for their STEM students. 2021 marks Kahler’s 30th anniversary. How has the company changed over the past three decades? Christ: Some things haven’t changed. Wayne is still involved in the business. I can call him (with) questions, and he coaches me on certain things. We also remain a fast-paced and nimble organization. Internally we’ve embraced a lot of the new technology that’s out there to make
A control tablet inside a loader increases operator comfort and a facility’s productivity.
our jobs a lot easier. We have added many business systems to improve our operation. For instance, our ERP system helps us with order management, and tracking
inventory and projects. It also allows us to be more efficient and to shorten our lead times. Our CRM system keeps us connected with our customers. We’ve also
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CONNECT Business Magazine
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Kahler Automation Celebrates 30 Years, Welcomes New CEO
addressed important things like time and attendance systems with badges. We have used these tools to make ourselves more efficient and improve our ability to satisfy our customers. Those are the changes through the years that have come to Kahler. Mohr: The advantage of 30 years is that we’ve got that long vision, the long legacy – especially with Wayne available to help us understand not only where things are going, but how things got here. Understanding the development of the industry over the past three decades is valuable knowledge and experience to have. Our products have grown. In the very beginning, we were looking for a better way to measure and dispense products and working with weight-based systems. Now we’re creating systems for entire port facilities. The complexity of the systems has grown, they’re able to do a lot more with it, but it still feels simple to the operator.
Meet John Christ Fairmont is a long way from your Chicago roots. How are you settling in? Great. My wife, Pamela, and I have enjoyed our move to Fairmont. The people are so friendly. Everyone has been very welcoming, and we are making many new relationships. I’ve become part of the Chamber of Commerce. It’s a small community, so everybody kind of looks after each other. Many of the people that work for Kahler live on the same street that I live on. So I’m really happy with our decision. I grew up with planes, trains, buses, highways — all the things that Chicago is about. Living in Fairmont is a much different experience. My wife and I have lived in a small community before. We were up in the Upper Peninsula of Michigan for about eight years. So we’re familiar with rural living, and we love it, by the way. We get to enjoy all that southern Minnesota has to offer. There are so many things that we get to explore. It’s fun. No more long commutes? I have three stops between home and here. What are you passionate about? What inspires you? I’m passionate about integrity and being authentic in my interactions with others. Having the self-discipline to make the right choices builds self-respect and earns the respect of others. Just do the right thing, even when people aren’t looking. I think that says a lot about people, and I have a lot of respect for people that live their life like that. I’m inspired by others that are accountable for their actions. They show the courage to do what is right,
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Kahler Automation | Fairmont
Your staff and facility have grown over the years, with expansions in 2006 and again in 2012. Do you have more expansions in the works? Christ: We’re sitting in an expansion right now. This wall was added after we purchased this building. Currently, we’re good with the size of this location. We feel we have plenty of room for growth for the near future, and we have a lot of flexibility in the things that we can do. In addition, remote work freed up office space in a way I didn’t anticipate. It’s changed the way we work a little bit. So we have plenty of capacity here for the foreseeable future. What does it take to keep evolving and growing in a high-tech industry? Mohr: It’s our people. People drive innovation.
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even when it is difficult, and accept responsibility for the consequences of their actions without blaming others. I’ve instilled this idea in my children. I was also a Boy Scout leader for 15 years, and I got to influence all those young minds, as well. I’m very proud of that. What keeps you up at night? Aside from the rare nightmare, I work so hard that I rarely have a difficult time sleeping. Maintaining a healthy lifestyle and great time management allows me to recharge my batteries each evening. That, coupled with an outstanding leadership team, enables me to rest assured that we are executing our vision.
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How do you balance work and life? I have found that it is important to schedule things in my personal life to make sure I’m taking full advantage of my time away from work. If it doesn’t appear on the schedule, the time just kind of drifts by. My wife and I even used to schedule date nights. You schedule them, so you don’t miss those opportunities in life. Tell me a little bit about yourself outside of work. Do you have any hobbies? I enjoy spending time with my wife and family. My children are all grown up and have gone to different places. We visit them, and we also love to travel when we can. We also enjoy hiking and camping, and other outdoor activities. For hobbies, I run a lot, usually three to four times a week. I enjoy reading — science fiction is my preferred genre. I also love yard games, such as cornhole and horseshoes.
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Kahler Automation Celebrates 30 Years, Welcomes New CEO
Christ: Keeping on top of the trends, learning about the latest technology and incorporating these new products into our solutions is important for remaining a leader in our business segment. The evolution in smart devices and the Internet of Things has allowed us to offer some very innovative solutions. Additionally, hiring new employees that share our passion for the industries we serve is a critical ingredient for our success. It takes hiring people who’ve been exposed to the latest technology and keeping abreast of the industry— for instance, bringing me on board. I’ve been exposed to a lot of technology within a very large company. Bringing fresh ideas to how we tackle solutions is a way to expand. We also focus on learning. We’re constantly sending people off to training, and we also take advantage of trade shows and automation shows. There are many avenues open to us to keep us abreast of the latest technologies. How does your Fairmont location impact what you do and how you do it? Christ: Our Fairmont roots, with so much agricultural activity all around us, have driven the types of things we automate and the relationships we’ve created. Our customer base has grown across the nation, but southern Minnesota is where we got our start. It’s fun to drive around our local communities and see the many facilities that are operating our control systems. Almost every town in the area has
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Mark Mohr gives a guided tour of Kahler’s new tech center.
a project that we have done. When it comes to bulk liquid handling, you really can’t find a local facility that doesn’t have our products. It’s a proud thing for all our employees to know that our efforts went into and automated these businesses. We’ve satisfied yet another customer, and they keep coming back. Look at all the folks working
Kahler Automation | Fairmont
here that are related to somebody in the agricultural world. Mark came from that world. I have dairy farmers on my wife’s side of the family. We all have ties to this industry. So it’s really unique from that standpoint. You’ve been in the CEO role for less than a year. What are your goals for yourself and the company? Christ: My main goal is to make the company even better. It’s hard to improve on something that is already really good. So my goal is to make Kahler Automation just a little bit better, make the processes a little bit better and get the teams that are already functioning very well together just a bit more integrated. I’ve been at this for 32 years now, so my focus is to take the knowledge I learned in previous roles and maybe tweak some processes to improve them. We’re accomplishing that by enhancing how we engage with our customers, streamlining internal processes, and empowering our employees to make decisions that benefit our customers and the organization. That’s my goal.
It’s helpful to ask why five times and challenge some of the things that we do. Maybe there is a better way. I bring that to bear. Running an automation company as a technical person has been helpful. While I tout my engineering skills, I’ve also been on the business side for a long time. I was the business unit manager for Rockwell Automation, and I worked for Rockwell for 15 years. I’ve sold multimillion-dollar projects. I have automated huge steel mills, and I see the business side of things. So I’m able to think that way and drive productivity for us. Bringing that to the company is fun for me. I’m really excited about this role here at Kahler. It’s a new industry for me in that I have not sold projects into the agricultural world. But at the end of the day, it’s the same automation; it’s just configured differently. That’s where I can help this company be more successful than it already is. People who just grew up on the business side may not consider the delivery side and vice versa. Having experience in both allows me to see the whole picture and make much better decisions.
You have master’s degrees in both business and engineering. How do you leverage that as CEO? Christ: As an engineer, I’m a very systematic person. I’m very organized, very detailed and very factual in making decisions. In my time in the engineering world, I’ve seen so many different processes. I’ve seen so many ways to solve an automation problem and maybe look at things differently. I bring that into this organization.
How would you describe your leadership style? Christ: I don’t have one. Different circumstances require different leadership styles. Sometimes it’s collaborative. Sometimes it’s more delegating. It really depends. No one style defines me. There are certain behaviors that I demonstrate that have made me successful. For instance, I am a fact finder who likes to thoroughly understand a problem before driving to a resolution.
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Kahler Automation Celebrates 30 Years, Welcomes New CEO
Your title is CEO/Integrator. The first part is selfexplanatory. Can you explain your role as an Integrator? Christ: It’s a long story. About a year ago, Kahler Automation adopted the Entrepreneurial Operating System. EOS is a complete set of simple concepts and practical tools that are used to get everyone in our organization on the same page with our vision. It instills focus and discipline throughout the company, so everyone executes on that vision — every day. My role as the Integrator is to be the person who is the tiebreaker for the leadership team. We get all the people on the leadership team together and we talk about issues, then we solve them and make them go away. So we’re not talking about them again next week. We’re not revisiting those things. We move on. When we reach an impasse, the Integrator can be the tiebreaker. In other cases, you could have a 5 to 1 vote to go a certain way, but the Integrator may choose to go a different way. So it’s not necessarily a consensus way of running a business. The Integrator is also the glue for the organization. He holds everything together and beats the drum or provides the cadence. He creates organizational clarity, communication and clarity. My job is to gather the data and lead this organization. I’m responsible for the profit and loss results, holding the leadership team accountable and being a steady force in the organization. The other half of the Integrator equation is the Visionary. That would be Logan Kahler. He’s a visionary, and he dreams up new
ideas and opportunities. We collaborate, so we’re always on the same page about where we want to go and what we want to do. In EOS, there are six key components for running every business. The big one is vision, defining that vision and getting everything we’re doing driving toward that vision. So the people that we hire and the things we measure all support that vision. A lot of data comes into this. We measure how quickly we call back customers, inventory turns —you name it. Things that don’t get measured don’t get improved. So you let people know what’s important. Everybody knows it, and everybody’s driving toward that vision every day. All the decisions we make are driving toward that vision. So that’s what EOS is to me. One of my jobs is to keep that going, so it infiltrates the organization. I lead that effort and make sure that it’s just in our DNA going forward. Right now, we’re a year into it, we’re infants in it, but it’s taken hold. It’s a great system.
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Kahler Automation
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CONNECTING BACK 5 YEARS AGO
NOV/DEC 2016 Five years ago, CEO of The Orthopaedic and Fracture Clinic, Andy Meyers, was the Connect Business Magazine cover story. Other profiles that issue were Madelia Community Hospital and Eunoia Family Resource Center.
10 YEARS AGO
NOV/DEC 2011 The November/December 2011 issue featured Le Sueurbased businessman Marty Davis. Other profiles that issue were Fostering Professional Development (St. Peter) and ABC Services (Le Center).
15 YEARS AGO
NOV/DEC 2006 15 years ago, Bob Wallace, of the Fairmont Chamber and the Southern Minnesota Initiative Foundation, graced our cover. The two company profiles were Jetter Clean (Mankato and Fairmont), and Stadium Pizza (Mankato and St. James).
20 YEARS AGO
NOV/DEC 2001 Cover story: Sharron MossHigham, of Kraft, in New Ulm. Profiled companies in this issue were Palmer Bus Service (St. Clair) and musician Henry Busse Junior.
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innesota has long been a leader for innovation, boasting a vibrant startup economy, and wealth of talent and resources in the entrepreneurial space. Over the past two years, the Launch Minnesota initiative has amplified the work of our innovators and demonstrated exactly why the state is fertile ground for entrepreneurs to grow their startups. The Launch Minnesota network was established by Minnesota’s Department of Employment and Economic Development. As a statewide collaboration, the network is comprised of six regions, seven hubs, and over 60 public and private partners. Each region was tasked with delivering on three specific goals: putting capital in the hands of startups, building a collaborative statewide network, and growing entrepreneurial talent. The overall purpose of Launch Minnesota is to connect innovators with startup economy stakeholders – creating synergy between public, private and entrepreneurial entities throughout the state. Minnesota State University, Mankato was identified as Launch
Minnesota’s southwest regional hub, and consists of over 25 regional partners providing services in one-on-one consulting, technical assistance, mentoring, workshops and events, access to talent, capital assistance, and co-working space. Partners come from a wide variety of industries, including technology, agriculture, economic development, and higher education. Once an entrepreneur is tapped into the Southwest Launch Minnesota network, they gain access to a community of startup supporters. So far, the Southwest team has held 45 events with more than 550 attendees, interacted with 59 unique businesses, and logged over 2,154 hours of one-on-one business mentoring. “Together we are better,” says Dr. Teri Wallace, interim associate vice president for research and dean of extended campus at Minnesota State Mankato. “Nowhere is this more true than in the work of our LaunchMN Southwest partners where good ideas, resources, connections and relationships influence what we can provide entrepreneurs and innovators in our area.” The Launch Minnesota Southwest team has hosted a variety of entrepreneurial-focused events and trainings over the past two years, driving conversation around exciting new ventures alongside the challenges facing entrepreneurs throughout the region. This past spring, Minnesota State Mankato’s College of Business hosted the Big Ideas Challenge with a newly designed High-Tech Division. The competition drew innovative businesses from across the southwest, encouraging and celebrating new business ideas. In addition, Southwest Minnesota State University hosted the 2021 MNwest Entrepreneur Summit, driving conversation between educators, business, and community leaders around exploring opportunities for entrepreneurship throughout the region. This November, the Southwest team will convene for a presentation addressing labor shortages throughout the state, training community leaders and entrepreneurs on best practices for recruitment and retention of employees. The state Launch Minnesota network hosts monthly Friday Forums in which many of the aforementioned topics have been discussed. Entrepreneurs are invited to the table to have conversations with public and private leaders on challenges facing Minnesota’s startup economy. A complete list of upcoming forums can be found on the Launch Minnesota website. If you are an entrepreneur seeking resources or a potential partner looking to get involved, please contact Tammy Bohlke, director of workforce development at the Strategic Partnership Center (424 North Riverfront Drive, Mankato) at tammy.bohlke@mnsu.edu; or (507)38902572. Visit the Launch Minnesota Southwest website at https://launchmnsw.org.
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SPECIAL REPORT
What’s the Buzz on EOS? This story was impossible to ignore. As Connect Business Magazine’s editor, I’ve talked to a lot of business owners over the last six months. When asked about the key to their success, one answer came up again and again: Entrepreneurial Operating System®, or EOS. One business used it to transform its hiring practices. Another credited EOS with helping it set the right goals. Several companies praised EOS for transforming their corporate cultures from reactive to proactive. So what exactly is EOS, and why is it popping up in business conversations across southern Minnesota and beyond? According to the EOS Worldwide website, EOS is designed for entrepreneurial companies with 10 to 250 employees. It’s a “people operating system that harnesses human energy through a simple set of tools and principles.” Its goal is to eliminate frustration and create profitable, sustainable and more enjoyable businesses. To get the scoop on EOS, I visited with Joe Paulsen. Paulsen is a certified EOS Implementer, speaker and franchise owner based in Mankato. He’s coached over 40 businesses across the country in the EOS system. A System for Entrepreneurs Gino Wickman created the Entrepreneurial Operating System in 2005. Since its inception, it’s been implemented by over 10,000 companies across the globe. Paulsen first encountered EOS in 2015 as the site general manager for TBEI, a $40 million manufacturing company. He liked it so much he opened his own EOS business in 2016. Today he is one of 400 EOS Implementers in the United States. Many of Paulsen’s clients come to him when they’ve hit a wall and are looking for a way to get their businesses back on track. “When entrepreneurs get started, they’ve just got this great idea. They start finding customers and building their business, but they aren’t thinking about the structure. That’s an afterthought,” Paulsen said. “So when these businesses grow beyond a 28
November | December 2021
Joe Paulsen is a certified EOS Implementer, speaker and franchise owner.
certain point … it just gets beyond their reach and they can’t control everything.” At this point, according to Paulsen, the business has two choices: “They can try to control everything, but then they’re going to limit the organization, and they’re going to run themselves ragged. The other choice is to start to let go of things. Then other people are doing things in a way they wouldn’t have done them.” EOS creates a third option, implementing simple tools and a practical system to put business leaders back in the driver’s seat and get everyone in the business driving in the same direction. “We put that structure in so that it remains their business. All employees see the same vision so clearly … they know where they’re going, and everybody buys into it,” Paulsen said. “It’s just getting all of those human balls of energy operating and focused on the same things. And when they are all focused, amazing things can happen.” Eliminating Frustration There are five types of frustration that bring a business to Paulsen’s door. “The first frustration is lack of control, where the business is running them versus them running it. The second is profit; they’re not making a profit, or they’re not getting the return on investment they should. The third is people. They can’t find them, or they have people issues in the organization. The fourth is hitting the ceiling — everything’s going good, and
then all of a sudden, that ceiling hits — whether it’s a pandemic or landing a big, new customer. How do you work through that? Finally, the fifth one is that nothing’s working. They’ve gone to the seminars, they’ve read the books, they keep trying stuff and nothing sticks,” Paulsen said. EOS addresses those frustrations with a system that measures and improves performance in six key areas: vision, people, data, issues, process and traction. “The answers lie within the room with that leadership team,” Paulsen said. “I just point them to the tools.” Many of these tools are tried-and-true methods, yet it’s difficult for a business to execute them effectively without a system in place. That’s where EOS comes in. “All of these theories and research, they have been out there forever: Jim Collins’ ‘Good to Great,’ Stephen Covey’s ‘Seven Habits of Highly Effective People.’ So the research is there, and it’s pretty much undisputed. But how do you apply it to an entrepreneurial business?” Paulsen said. “That’s the magic of EOS.” A Simple Path to Success The first step in EOS is a complimentary 90-minute meeting to determine if it’s a good fit. Then, once a business commits, the real work begins. First, Paulsen pulls the leadership team off site for a day to put a framework in place. Next, they dedicate two days to vision building, completing a Vision Traction Organizer.
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“In a period of 60 days, they’ve got 80 percent of what EOS is all about,” Paulsen said. “It’s clunky. It’s not running very well. But from that point on, they start to implement it throughout their organization. It turns from me being the teacher to them starting to teach their own people.” Working in 90-day cycles, the business strives to improve its performance in six key areas. “Our mission is to strengthen these six components. We actually measure them,” Paulsen said. “Ideally, a company would be at 100 percent strong in all areas. That would truly be a utopia. But if you can get to 80 percent, you’re going to move mountains.” Once a business reaches Paulsen’s 80 percent goal, its system is solidly in place and it no longer needs him. Each time a company accomplishes this, it moves Paulsen one step closer to achieving his own 10-year goal: to help 100 companies through the EOS process. Five years in, he’s already worked with over 40 companies. While his own success is gratifying, Paulsen takes greater satisfaction from his clients’ progress. When the pandemic hit, Paulsen surveyed his clients to see how they were faring. He asked them to report their revenues and profits for 2019 and 2020, removing any Paycheck Protection Program income whenever possible. Over 20 businesses responded. “Comparing their 2020 revenue and profit against their 2019 revenue and profit, revenue was down by 0.05 percent, so pretty stable. However, the part that was so fulfilling for me was that profits went up by 32 percent for that collective group,” Paulsen said. “It showed that they kept their focus. When times were tough, they tightened their belts and did the right things.”
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By Lisa Cownie Photos by Jonathan Smith
We may not realize it, but we hear, see, and feel dozens of stories every day: through our conversations with others, through posts on social media platforms — they can even be told in the way people dress or through facial expressions. In life, everyone has a story to tell. All the stories we compile over our lifetimes live on after death, traditionally through the use of memorials or monuments. The carefully crafted slabs of granite serve as a place to visit, grieve and remember those who have passed on. Monuments are an everlasting symbol of a person's life and accomplishments and bring meaning and understanding to future generations of those who have come before. "Every family is different," said Mark Maher, owner of Blue Earth Monument. "So, in turn, every stone is different. There is one thing in common, though; everybody is telling a story. When you walk through cemeteries, you see different images and sayings on the stones. Well, each of them is telling a story, and it's important for us to help families tell their story and make sure it is specific to them." Continues
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Creating Lasting Tributes
The Maher family takes its business personally. “People come here during some difficult times,” Lori Maher said. “So we try to make it a comforting experience, and I hope for most of our customers it was a better experience than they thought it was going to be. We take great care in helping them share the stories of their loved ones.” The Mahers’ own story goes back more than 50 years and begins with Lori Maher’s father, Harlan “Harley” Schmitgen. Schmitgen was southern Minnesota’s premier storyteller for more than five
decades at Blue Earth Monument. “Lori’s dad worked here right out of high school and eventually became the owner. He had been here for 53 years, so Lori and myself grew up around the business,” Mark Maher said. “He retired in 2011 and moved to Branson and is a woodcarver.” Schmitgen’s daughter Lori Maher and her husband, Mark Maher, purchased the company in 2008 when Schmitgen’s business partner, Steve Christensen, retired. Founded in 1877, it is one of the oldest companies in southern Minnesota and northern Iowa. Blue Earth Monument offers custom shapes, custom artwork, shape carved designs and more. Considered a full-service monument company, clients can work directly with their artists, and all the work is done in the Blue Earth shop. Blue Earth Monument will place your memorial in the cemetery for an everlasting tribute. “We are one of the few companies that are still independent and do all of the work in our shop,” Mark Maher said. “We do all the sandblasting, design and etching from our shop here in Blue Earth.” It’s remarkable, really, how Blue Earth Monument has managed to stay rooted. “It’s a business model that has worked well, and it has been that way since the beginning of time, so we don’t see any reason to change it,” Mark Maher said. “If it ain’t broke, don’t fix it. So other than introducing a few new technologies from time to time, we will stay as we are, doing work in-house, locally and family-owned.”
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Blue Earth Monument | Blue Earth
Those technology changes, though, are helping Mark Maher and Lori Maher begin a whole new chapter in the company’s story. “When Lori’s dad was here with his partner, a lot of the monuments were made by hand. They would hand cut everything. They didn’t have a website or internet presence — no email even. So all those basic advantages we have now. We have a wonderful website. We’ve heard over and over again that people just really appreciate it because they can see the things that we have done. There’s a lot of technology involved in making the products now, too: CNC Machinery and computer programs are two big ones. But we still do some of the stuff by hand. In fact, I still have a hammer and chisel to shape the granite and monuments. We’ve also really advanced technology in how we set the stones in the cemeteries with new types of lifts and that sort of thing. We have advanced efficiencies here now, and that makes things a little easier.” It’s a business where technology and artistry must collide in order for it to work. “We all consider ourselves artists,” Mark Maher said. “I studied and enjoyed art in school, and we have employees that are very talented. I have a tendency to do the CNC diamond etching, and Lori has a good eye for design. She can conceptualize and visualize what people are wanting, and bring their thoughts and visions to fruition.” With six to eight employees depending on the season, Blue Earth Monument’s geographic area keeps growing. It has a growing number
of clients in the Twin Cities area and serves people all the way to the South Dakota border and down to Fort Dodge, Iowa. The Mahers say word of mouth and Blue Earth Monument’s impeccable reputation attract a wide variety of clientele. “Because we actually do all of our own work here, we have a large inventory of monuments to choose from, lots of different stones. We can keep our prices affordable compared to some of the other larger outfits because we are a small company and don’t have the overhead,” Mark Maher said. “We have a really good artist that
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Creating Lasting Tributes
History of Blue Earth Monument Blue Earth Monument is one of the oldest companies in Minnesota, a part of the southern Minnesota landscape for 144 years. The company opened in Albert Lea in 1877, about 12 years after the Civil War ended and just shy of 20 years after Minnesota became the 32nd state. 1877 was a dark year for Minnesota, with swarms of voracious grasshoppers blocking the sun and destroying crops over two-thirds of the state. Perhaps it wasn’t the most auspicious time to start a business, but the company endured, passing from one family to another with each new generation. Almost 150 years later, the company continues to be a positive force in the communities it serves, even in the darkest of times. In an interesting coincidence, the story that started with Maurice Bessinger in Albert Lea has now come full circle. The Maher family added an Albert Lea location in 2015, and now operates both Blue Earth Monument and Albert Lea Monument. 1877
Albert Lea Marble and Granite is founded by Maurice Bessinger in Albert Lea.
1896 Maurice Bessinger’s son, William Bessinger, expands the business into Blue Earth and Winnebago, while his other son, Frank Bessinger, takes over the Albert Lea location. Although Blue Earth Monument’s first location is downtown, it will eventually move to the east side of Highway 169 near Don’s Fleet Supply before it finally settles into its current location. 1947
George Crohn purchases the company. A few years later, Gilbert Olson becomes his partner.
1965
Blue Earth Monument moves to its current location at 406 Grove St. in Blue Earth.
1973
Harlan “Harley” Schmitgen and Steve Christianson become owners of Blue Earth Monument.
2008 Steve Christianson retires and sells his portion of the business to Harley Schmitgen’s daughter, Lori Maher, and her husband, Mark Maher. 2011
Harley Schmitgen retires after 52 years at Blue Earth Monument. Lori Maher and Mark Maher become the sole owners.
2015 Albert Lea Monument opens at 723 Marshall St., Albert Lea. Lori Maher and Mark Maher’s son, Blane Maher, runs the business.
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Blue Earth Monument | Blue Earth
works here with us and does some etching, and we have a CNC machine that can do etchings, as well. So we can offer some things that add something to the memorial, that say something about the person and their life.” The Mahers say referrals come from cemeteries, caretakers and people whose family members have used BEM. “There are a lot of people that come to us ahead of time. They want to do it so their kids or loved ones don’t have to deal with it when they pass. Plus, then they can put on the stone what they want to put on it, not what someone else wants to put on it. We have so many people that come in here and say, ‘Well, that wasn’t bad at all.’ So I think to help with anxiety, we keep things really low-key. To make it easy for the families, we go at whatever pace they want to go and we just follow their lead. It also helps put people at ease, because these days it’s easier for them to see exactly what the finished product will look like with some of our computer programs. We want to make sure it is a positive experience because if it is for them, then they will tell others, and that’s how we get our business.” “In 2015, we opened a facility in Albert Lea because our son came out of the service and after finishing his college degree was looking for an opportunity,” Mark Maher said. “We had already been doing
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Most Unique Monument As you can imagine, the Mahers get some unique requests when trying to tell the story of someone’s life through a monument. One of their most unique requests came in the form of a, well, cow. “We did one in the shape of a cow, truly a full-size cow!” Lori Maher said. “That was one of the most unique ones, but we were able to do it. Basically just cutting the design in the overall shape and then doing some etching to show the legs and fur and other details.”
Family First Ask the Mahers what they do in their free time, and the answer is immediate: spend time with the grandchildren. They have six right now between their children: Amber, Blane, and Mackenzie. Their favorite spot to hang with family is at their cabin in Chisago City. “It’s close to the Twin Cities where our grandkids live, so we have a good excuse to spend time with them,” Mark Maher jokes. “I mean our children, too, but mostly the grandkids!”
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some business in that area and thought it might be a good market to expand into. So we purchased an old dentist office that we renovated and made into a remote sales office. “With Quickbooks online and inventory online, it is easy to share back and forth between the two locations.” It’s inventory that is perhaps the biggest challenge during these times. “Every industry has supply issues,” Mark Maher said. “We have a good handle on the granite, but getting the shipping containers and arranging the transportation to get stuff here has been problematic. Also, production supplies such as rubber stencil and setting compound are available on a limited basis. Quarries are struggling because there are not enough employees available. They are having a hard time keeping up with demand.” Keeping up with the demands of their own business has been another challenge for the duo. “We were sharing the same office, but then we had to build an addition on because Lori needed her own office,” Mark Maher said. Lori Maher adds, “Seriously, though, balancing work and home life is something we had to work on because we could be here 24/7 if we wanted to. The work is always here and needs to be done. So making sure we take enough time for ourselves and our family has to be a priority.” At the end of the day, the Mahers take pride in helping others through the work they do, helping create an everlasting tribute to a life well lived and worth remembering. They understand their work also acts as a final gift and can serve as a permanent record for future generations. “We love what we do,” Lori Maher said. “Each stone we make has embedded in it a particular perspective, a set of values, and we love serving our community in this way.”
THE ESSENTIALS
Blue Earth Monument
406 S Grove St. Blue Earth, MN 56013 Phone: (507) 526-2250 Web: blueearthmonument.com 36
November | December 2021
HOT STARTZ! MANKATO
Sadaka’s Deli The quote over the entrance to Sadaka’s Deli says it all: “When you’re here, you’re family.” Sadaka’s Deli is owned and operated by brother-and-sister team Milad Sadaka and Souraya Sadaka. They delight in preparing simple, fresh foods, often dedicating their daily specials to special requests from their customers. “The fun part is when people ask: ‘Oh do you have this kind of food?’ We say no, but we’ll put it on our specials list for you next week,” Milad Sadaka said. “Our specials are open so everybody can tell us what they need, and we can make it happen.” “Today, our special was chicken sliders with soup and watermelon for $8.99. We try to keep the prices under control to go with everybody’s budget,” Souraya Sadaka said. “We want everybody to come here and enjoy what we have to give.” Sadaka’s Deli is located in the Madison East Center in Mankato. It’s open for breakfast and lunch Monday through Friday, serving hot and cold sandwiches, soups and salads. Many of its customers work in or around the Madison East Center and are lured to the deli by the wonderful smells emanating from the kitchen. “The soup is homemade. The sauces are homemade. We make everything from scratch,” Milad Sadaka said. “We make just enough for that day.” The Sadakas have been feeding hungry Mankato diners ever since their family immigrated from Lebanon over three decades ago. Souraya Sadaka moved to Mankato in 1984, and Milad Sadaka arrived in 1987. “Oh, it’s a beautiful story. My entire family came here. There are seven of us,” Souraya Sadaka said. “We all worked together at my brother Charley’s Restaurant for a long time.” Charley Sadaka died in 2015, and his namesake restaurant closed when the pandemic hit. But Milad Sadaka and Souraya Sadaka weren’t content to stay on the sidelines. Instead, they decided to capitalize on their experience, opening Sadaka’s Deli in December 2020. They also use the deli as a home base for their catering business.
Cultivating Opportunity
Sadaka’s Deli 1400 Madison Ave., Suite 626 Phone: (507) 779-7191 Facebook: @sadakadeli 130+ acres Shovel-Ready Industrial Park State Highway Access: 23 and 19 Pull Factor: 1.55 Population Base: 13,500+ Regional Population Base: 25,000+ Median Age: 32 Incentives Available
For those who want to see their horizon and help shape it.
ci.marshall.mn.us | 507-337-9013 | lauren.deutz@ci.marshall.mn.us
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HOT STARTZ! ST. PETER
Minnesota Wing King Looking for chicken wings and barbecue that are fit for a king? Check out St. Peter’s new restaurant royalty. The Minnesota Wing King opened on June 1. Owned and operated by Sean McCasey, it’s located in the former Hobbers Hwy 99 Bar and Grill site on the outskirts of St. Peter. As its name implies, one of the restaurant’s specialties is chicken wings, but there are plenty of other options on the menu, including daily barbecue specials. “Going with the barbecue has been the best thing that we’ve done,” McCasey said. “We do brisket, baby back ribs, beef ribs, smoked chicken and smoked pulled pork.” The restaurant has indoor seating for 100 and outdoor patio seating for 80. It’s situated on a scenic 2-acre lot complete with bonfire pits to warm patrons on chilly nights. McCasey has enlarged the indoor bar, tripling its size and stocking it well. “We offer 37 varieties of whiskey, a number of vodkas and 82 different varieties of beer. And our bartenders make a mean margarita,” McCasey said. “We were really able to make this place our own. This location on French Hill Road feels like a destination location. You can come here and really make a night of it.” McCasey is no newcomer to the restaurant business. He started doing concessions at fairs and festivals about a decade ago. Four years ago, he added restaurant operation to his resume, running the kitchen at a Belle Plaine brewery. But having his own restaurant was always the goal. “The route that we took was from fairs and festivals to a brick-
and-mortar location,” McCasey said. “When we saw this building for sale in St. Peter, we jumped on it.” McCasey is happy to report that business is good and customers are keeping his 24-person staff busy. “We’ve seen customers from all over,” McCasey said. “We had a really good following in Belle Plaine that has followed us here. Being the new face in town, we also get a lot of locals from St. Peter and Mankato coming in to check us out.” Minnesota Wing King 43539 French Hill Road Phone: (507) 519-1083 Web: mnwingking.com Facebook: @mnwingking
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Ouren Instruments Ouren Instruments is a one-of-a-kind place filled with unique and vintage string instruments. Its walls are lined with guitars, banjos, mandolins and other string instruments that have been lovingly restored and rebuilt. Some are over a century old. “I’m attracted to old things. There’s a whole history of gigging that these instruments have seen,” Eric Ouren said. “Banjos and heads will come in, and they’ll be signed on the back. You’ll get stuff written on these that are 80 to 100 years old.” Ouren is the owner of Ouren Instruments in St. Peter. The store was initially located in North Mankato, but it quickly outgrew the space. In April 2021, it opened in its new location on Minnesota Street in downtown St. Peter. You could say Ouren has been in the business of transformation his whole career — first as a sculptor coaxing new forms out of different mediums, then as a teacher transforming young minds, and finally as a craftsman restoring and rebuilding string instruments. It was a sculpture that led Ouren to his current obsession with wooden instruments. The life-size wooden figure that started it all sits in a place of honor in the corner of his store. “This figure is the ancestor of all my instruments. I wanted to make him lighter, so I cut off the front part of the chest and hollowed it out. Its curved shape reminded me of a violin,” Ouren said. That’s all it took for Ouren to start down a new artistic path. He began dabbling in instrument making, using found objects to make unique instruments. That was in 2005. He’s been building and restoring old string instruments ever since. He turned it into a business in 2019.
One of the pleasures of Ouren’s business is searching for neglected and forgotten old instruments and bringing them back to life. Lucky finds include a 1927 Supertone guitar commemorating Lindbergh’s famous flight and a 1930s guitar named after cowboy crooner Carson J. Robinson. Ouren Instruments 208 S. Minnesota Ave. Phone: (507) 351-1403 Facebook: @oureninstruments
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LEARNING IN REAL LIFE Eric Weller has had his share of ambulance calls. As an EMT by trade, he worked at Mayo Clinic Ambulance Service for over 27 years. Today he is a highly recognized industry expert in the field of pre-hospital emergency care. With decades of experience working in the field, he uses his skills and expertise to coordinate first responder, EMT and paramedic courses as part of the Emergency Medical Services program at South Central College , and its recognized workforce division, Center for Business and Industry. Weller has a practical teaching approach, using relevant knowledge he’s learned throughout the years. He has a no-frills, down-to-earth teaching style that allows for more hands-on instruction while trying new things and adopting the latest technology. Advances in the industry continue to evolve with computers and rapid diagnostic capabilities, including computerized machines for chest compressions and many other innovative tools. SCC is a two-year community and technical college offering approximately 50 programs leading to associate degrees, diplomas, and certificates. CBI has been at the forefront of workforce education with customized, hands-on, advanced training for professionals and organizations of all sizes and industries. As technology advances and workplace methods and strategies improve, there comes a need for employers and employees to align with these changes through relevant and consistent training. Weller facilitates training for a wide variety of subjects but working with
Eric Weller demonstrates EMS equipment while teaching a class at South Central College.
frontline health care providers and organization leaders is his forte. “Employers and team members need to have the skills to keep themselves and others safe when an emergency happens,” said Weller. “We never know when disruptions will occur but being prepared and planning ahead ensures everyone knows what to do if there is an emergency.”
and skills that connect their training to real-life work. Employers are changing their mindset that training is not only about workforce development but about workforce strategy. By investing in the latest training and education, employees have increased satisfaction, loyalty, and productivity. A more skilled and confident staff can do big things for a business’s bottom line.
No one can ever predict emergencies, which is why it’s important for everyone to get training in foundational first aid and CPR education. Today’s employers are now discovering the advantages of having all their employees go through such new or refresher trainings because it demonstrates a commitment to employee safety. Weller has become an expert in emergency preparedness and disaster preparation with training, exercises and drills, along with strategies and planning. Disaster drills allows hospitals or organizations of all sizes to test response capabilities to emergencies and to identify strengths and weaknesses.
Change is the one constant in our society. As the world changes, the health care industry must evolve to meet new needs and expectations. The need for health care workers continues to grow. “We need people,” Weller said. “We need all levels of healthcare providers including an EMT for a local ambulance, a CNA at a nursing home, or a nurse at a clinic or hospital.” Weller said that students who are compassionate and patient with a desire learn is all that’s needed to succeed in these roles.
Many SCC instructors still work in the field and have actual, cutting-edge experience. CBI provides professionals and career seekers with the knowledge
Learn more about health care training opportunities at
southcentral.edu/workforcehealth
UPCOMING HEALTH CARE TRAININGS HeartSaver CPR AED Earn a 2-year American Heart Association card with HeartSaver CPR AED training. We will show you not only how to administer CPR, but to recognize the signs and symptoms of heart attack and stroke. You'll learn how to perform CPR, clear airway obstructions and use the automatic defibrillator. The course will also cover risk factors for heart disease and stroke.
November 23, 9am-12pm South Central College, North Mankato | Cost: $60
3-Hour OSHA Emergency Care/First Aid Learn the proper immediate first steps of treating workplace injuries and medical emergencies. Covering those first-action topics: this course satisfies OSHA and MSHA standards with certification issued for a two-year period. The course does not include CPR training.
November 23, 12:30-3:30pm South Central College, North Mankato | Cost: $50
Online Certificate in Stress Management Earn a non-credit certificate in stress management to identify causes and health effects of workplace stress and learn a variety methods to reduce and manage stress. Throughout this 6-week online course, you’ll explore the physiological, social and psychological impacts of stress; examine the relationship between stress and health, nutrition, and physical activity; and understand strategies and therapies used to reduce and manage stress. Health professionals will earn 14 contact hours.
6-week access starting November 17 Online | Cost: $84
Customized Workforce Education to Meet Industry Needs 1920 Lee Blvd., North Mankato, MN | 507-389-7203 Learn more and sign up: southcentral.edu/workforcehealth An affirmative action, equal opportunity employer and educator. This material can be made available in alternative formats by contacting the Academic Support Center at 507-389-7222 or ds@southcentral.edu.
southcentral.edu/workforcehealth
Learn More:
By Lisa Cownie
MORE THAN A CONCRETE COMPANY, WELLS REMAINS A STRONG FOUNDATION FOR COMMUNITY Their work is all around us. You’ll see it, although you probably won’t be looking for it, in the Johnson Outdoor building in Mankato, in the beautiful Blue Star facility in upper North, and in the inviting halls of The Creative Company. Wells Concrete is responsible for much of the precast concrete work going into Mankato’s building industry. Wells Concrete was founded in Wells, Minnesota, in 1951. Although the company is now headquartered in Albany, Minnesota, it remains firmly cemented in southern Minnesota, even as its footprint keeps getting bigger and bigger. “Mankato has always been very good to us. When a building is going up, it’s always specified to be precast,” Greg Roth said. Roth is president and COO of the Wells Concrete Midwest division. “Our clients continue to choose us because we have a reputation built on customer relationships and doing the right thing.” That culture of “doing the right thing” has helped the company grow beyond its Wells roots. Over the last seven decades, the precast company has grown its services, its number of employees and its reach, earning a reputation that makes it one of the top five companies in its industry in the nation. Continues
Greg Roth President | Chief Operating Officer
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November | December
Crew members hanging panels, below, and working concrete into forms, bottom.
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DOTSON WELLNESS CENTER
CONSTRUCTION MANAGEMENT GENERAL CONTRACTING DESIGN-BUILD (507) 387-1667
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November | December 2021
Wells Expands Its Footprint
“The thing that has always rung true, no matter the issue or the situation, is let’s do what’s right first, then figure out what happened after. That is true internally, as well as externally,” Roth said. “Because at the end of the day, when we sit down to hash it out with a client, you don’t want them to feel let down. Even if it is an internal conflict, we handle the issue now, then we figure out what happened, how it went sideways and make sure it doesn’t happen again. At Wells, it’s always been a culture of it’s okay to make a mistake, as long as you don’t continue to make that mistake. In the end, we want people to know we care, we didn’t try to downplay the issue, we made it right and moved on. We keep people happy, even if there are financial implications for us.” Along with its headquarters in Albany, the company still has a plant in Wells, as well as facilities in Rosemount, Minnesota; Denver, Colorado; Valders, Wisconsin; and Crystal Lake, Illinois. Wells designs, manufactures, and installs architectural and structural products for architects, building owners, developers, and contractors from Canada to New Mexico and Indiana to Colorado. Its footprint has been growing steadily for the last decade, primarily through acquisitions — notably Hanson Structural Precast, formerly in Maple Grove; Spancrete in Wisconsin and Illinois; and Rocky Mountain Prestress in Colorado. Enveloping these companies allows Wells to work on projects in the commercial, education, food processing, health care and manufacturing markets. It is also involved in municipal projects, including parking ramps, stadiums and arenas. “All of the acquisitions we’ve made have been based off of our values. We pay attention to how they want their employees to be treated. That has been the resounding theme with every acquisition,” Roth said. “Through growth and acquisition, we have put ourselves in the position to dominate the markets we are in and continue to be the building solution provider of choice.” Helping to manage the growth, Wells went through a restructuring earlier this year. It updated its organizational structure to provide strategic strength, while
Wells Concrete | Wells
also allowing for regional independence. Centralized functions of the business, such as finance, human resources, marketing, engineering design and information technology, will be managed by Wells corporate services, while each region of the company and its operations will be led by a divisional president and COO. With the company for almost a decade, Roth was tapped to lead the way in our region. Part of Roth’s charge is to manage the Wells Concrete facility in Wells, an operation the company is making a sizable investment in. “We are in the midst of investing more than $6 million into the Wells facilities,” Roth said. The plant at Wells does both architectural and structural precast solutions. Beams, columns and double Ts are the structural components. Insulated wall panels with an architectural finish are the architectural pieces. “It’s going to be steady investment there from a capital standpoint to get things back to where they should be,” Roth said. “This year it’s the batch plant. Next year will be what we call yard improvements, where we want to transition out of cranes to a Mi-Jack system for the yards. “Right now, the Wells plant is 70/30 structural building components versus architectural. The investment is focused on facility flexibility. Investing in batch plants and yard operations allows our plant and employees to be able to adapt to changing market conditions, a variety of product offerings and evolving client needs, creating stability and growth opportunities for the community and our local labor force.” The investment in the Wells plant shows its importance to the ever-growing company. “Lead times are going further and further out for architectural products. For structural it is really cyclical and is hit or miss. So naturally, we are trying to develop the total precast market so it is more balanced. We can’t really control what the market is going to bear, so that’s really the big reason for the batch plant investment in Wells.” Right now, the Wells plant employs 200 people. Roth says the investment will likely mean a growth in that number because architectural forms require more work than structural.
ISG is proud to partner with Wells Concrete on the new PreK-12 Maple River School District building.
Architecture + Engineering + Environmental + Planning | ISGInc.com
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Wells Expands Its Footprint
A few examples of Wells Concrete projects: Left, Prior Lake High School Field House; Center, HOM Furniture, Bloomington; Right, US Bank Stadium, Minneapolis.
Meet Greg Roth Greg Roth was named president and chief operating officer for Wells Midwest in February 2020. As divisional president, Roth has full responsibility and authority for revenue growth, operations and performance of the Midwest division. Roth has been with the company for 10 years and has had several roles, most recently as vice president of operations responsible for companywide production and yarding operations. He lead the implementation of Concrete Vision, developed many of the metrics used to drive continuous improvement, and has been instrumental in building teamwork between quality and operations to drive performance. Roth holds a Master of Science degree in executive leadership from St. Cloud State University and an undergraduate degree from the University of Minnesota Morris. His path to Wells Concrete was a little unusual. He remembers meeting Wells CEO Dan Juntunen over happy hour. “The first time I met Dan it was actually socially. Before I worked at Wells, I was working for a small investment firm in St. Cloud. The whole goal of the firm was to grow the family wealth, so they looked for businesses that were $5 million and under. They would invest capital or talent into the business to help it grow,” Roth said. “So, I did that for an internship then eventually came on board with a company they bought. It was a small $2 million IT services company, and that is where I met Dan’s wife. Through her, I met Dan socially a couple of times and this was just after he became interim president at Wells. So, it was a happy hour, and we were just drinking. He was talking about things he wanted to do at Wells, and it was about centralizing services.” Roth remembers discussing Juntunen’s ideas and
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offering a few of his own. “I gave him advice on three things: I told him one thing that would work, one thing that wouldn’t work and then what I would do differently,” Roth said. “So, six months go by, and I saw him at another happy hour. He said, ‘Admittedly, when I first met you I thought you were a great kid, but what do you really know? But you were three for three.’ At first, I didn’t know what he was talking about. But then he told me the three things I told him turned out just like I said they would!” It turned out that happy hour conversation made a big impression. Eventually, it led to the start of Roth’s career at Wells. “This was in 2011. He invited me out to the Albany plant, and I did a tour at 5 in the morning before my workday. When I got back to my office at 7 a.m. I had a job offer waiting for me.” Roth’s early work focused on finding synergy between independent Wells’ facilities and leveraging that to create more options for Wells’ customers. “Back when I first started it was just the three plants in Minnesota,” Roth said. “And at the time they were operating as three independent plants. I came in to help leverage the three plants to operate as one, and that was from materials to schedules and standards. It enabled us to offer more, so instead of saying this is what you get when you buy from Wells, we can now say here are the details you can pick from. Because at each plant equipment is different, people are different. We’re trying to leverage the strength of each facility, but still provide flexibility and quality for our customer base.” His efforts paid off. In 2020, Roth was promoted to his current position: COO of Wells’ Midwest division.
Wells Concrete | Wells
“Say we’ve got a 500-foot structural bed, which will take three architectural forms, so we’ll need three times as many people to make it,” Roth said. “So, the plan is to grow in Wells over the next five years.” Roth said over the years Wells has been a great city to do business in. “The community of Wells is very good about whatever we need, always open to helping us out and helping us get to where we want to get to,” Roth said. While Roth sees great opportunity in the future, he knows there are challenges ahead. They’re the same challenges echoed by others you read about in these pages: labor and supply chain. “We are always needing more labor,” Roth said. “Whether it’s general labor, carpenters, drivers — if someone wants to be a part of our culture, we’d love to talk to them about what they want to do. We have a lot of employees that grow in the company. They might come in day one as a general laborer, they transition to finishing work, or even go out in the field. It is a company you can grow in, that’s for sure.” While still a challenge, the supply chain is a little more manageable. “We’ve done a very good job — and this is where I get to brag up our team a little bit — we’ve done a good job of forecasting material needs, so we haven’t had as many issues with run of the mill stuff like steel, aggregate, things like that that we really need to make the panel. It’s when we start into the custom job stuff, liners and other
specialties that make the nice features, that’s where we are kind of at the mercy of the vendor. We’ve had a couple of those where we’ve gotten letters, just like everyone else has, so just be patient. What makes it hard is that we’re kind of in the middle. The customer wants a feature, and they bought it, but we can’t produce their panel without that piece that we can’t get. So, we are definitely feeling the squeeze from both sides,” Roth said. “But that’s nothing out of the norm. Lead times are just a little longer.” In total, Wells now has 1,400 employees. Its growth is built on the company’s original foundation: making the customer happy. “We love a challenge,” Roth said. “But at the end of the day, we all work toward one thing: making sure everyone is happy and safe. It’s always been relationship first, business second at Wells. It’s the thought of, if you take care of people, chances are the economics will work itself out.”
THE ESSENTIALS
Wells Concrete Products 835 Highway 109 NE Wells, MN 56097 Phone: (507) 553-3138 Web: wellsconcrete.com
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ELEVATING OUR REGION
AS THE WORLD-CLASS FOOD AND AGRIBUSINESS EPICENTER How are weather extremes impacting your clients and businesses? At CLA, we work with operations tied to production agriculture. There might be a farmer’s almanac in the back pocket of most clients we connect with year-round. Weather has changed in our region, which has impacted planting, growing, harvest, and planning seasons. The greatest impact we have on businesses is helping them understand their numbers and manage businesses by the numbers. This might include talking about tax credits, tax planning, entity structure, succession, CFO strategy, accounting processes, wealth advisory, or other general conversations as a trusted industry-specific advisor.
Do you see any future trends regarding taxes, regulations, and policy, as they relate to weather? There are definite trends toward promoting climage change initiatives through tax incentives. At CLA, we’ve seen tax credits related and our region invest in wind, solar, ethanol, and biodiesel for example. There is buzz recently in the carbon credit market, which could be helpful for farmers. Row crop agriculture has a large opportunity here because of its size across country. Producers can look to continue to reduce their carbon footprint as they explore cover crops, no till, and more. Changes in application may benefit their operations and teaming with carbon brokers, they might find buyers for this effort.
THE 38 th ANNUAL
THURSDAY, DECEMBER 2, 2021 4 – 8 PM Mayo Clinic Health System Event Center, Mankato
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Joseph Duda, CPA Principal, Agribusiness and Cooperatives
CLA
What do you see the ag industry doing regarding the weather we’ve been facing in our region? We are lucky to have some of the best farmland in the country, along with progressive operations to run it. Land and equipment are by no means cheap, so increasing yields on acres and matching it with a right-sized equipment stack makes sense. To face challenges such as the weather, a producer will use all the tools in the toolbelt. From our perspective, it is always important to plan ahead, know your numbers, or get help by reaching out to your team of advisors, such as CLA. As each year has its challenges, working on continous improvement is the standard in the industry. The businesses with that mindset are the ones we see coming out ahead.
SPEAKERS Heidi Roop, University of Minnesota Extension Specialist Bruce Rastetter, Summit Agricultural Group Nicole Koziolek, Minnesota FFA State Secretary Baleigh Peterson, Minnesota FFA State Sentinel Legislative Panel
greenseam.org/forum21
GROUNDBREAKER
Highlighting our region’s Ag and Food Production Industries
Riding The Market Roller Coaster Farmers Manage Risk with Commodity Futures Trading The Commodity Exchange plays a vital role in the agricultural industry of our region. A global marketplace for the exchange of grains, livestock and other commodities, it allows farmers to manage risk. Like the stock market, the commodities market took a dive in 2020 due to the impact of the COVID-19 pandemic. “It was a black swan event, something that absolutely changes things,” Greg Goebel said. “The biggest effect was in the livestock industry due to packing plants losing labor. Some grain exports were also affected because of how COVID affected loading and unloading of ships.” Goebel is a market analyst at Investors Commodity Services Inc., a full-service brokerage and market advisory company in Mankato. ICS was established in 1982 and is now in its third generation of leadership by the Persson family. Goebel shares his thoughts on the current state of the commodity futures market and its impact on the agricultural sector.
Who are your customers and why do they need you? Our customers are farmers, businesspeople and investors. We help them establish prices and manage risk. If they are selling commodities, they are hoping we can help time the market. You also look for chances of basis improvement. Speculators and investors in the market think that the market is going to go up. So, they establish a position based on that. It’s just like investing in any other market. The difference with the futures market is the degree of leverage. In the stock market, I think you can leverage up to 50 percent, whereas in the futures market you are leveraging 75 to 80 percent of it. In this case, you’re putting in roughly 20 percent of the money, but you are responsible for 100 percent of the gain or loss. The futures market has a substantial amount of risk. People who are in it should either be active hedgers or investors. It’s money that you can lose. But with active hedgers and farmers, it is a great way for them to do their marketing. How do you help your clients manage risk? We try to look at both the cash side and the opportunity side of it with them. We also keep track of our customers and keep an eye on who is offering the best bids on grains. Part of it is simply reminding people when things should be done. At certain times of
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GROUNDBREAKER
Highlighting our region’s Ag and Food Production Industries
year, we will call people up and help them manage the movement of their cash grain and then help lift their futures contract. We are helping them make money and trying to take advantage of market opportunities. What led you to become a market analyst in the commodities market? I started in 1993. Prior to that I used the futures market on my own farm in my hog operation. I’ve been on both sides of it. In my first year, I established a price for my hogs, then the market dropped considerably, so I picked up money that way. The following year I ended up having to pay in the futures market, but I also made a whole lot more money because I didn’t have everything hedged. I know exactly how it works. What is a typical day like for you? It involves both looking at the market and observing any news that might affect the market. The commodities market can be affected by weather changes, it can be affected by political things happening and it can be affected by crop conditions in other countries. Today in the case of the beef trade, they are reporting BSE, the mad cow disease, in South America. Any little thing can change the market. We also look at what the value of the dollar is doing in different currencies.
Other markets can also affect farm commodities. The commodity that’s moving the most right now is natural gas. There’s higher commercial use of natural gas for production. That affects a number of things, as natural gas is what our nitrogen fertilizers are derived from. What is the difference between working with a broker to sell your grain on the futures market or working directly with a grain elevator to sell it? If you work with a grain elevator, that’s called a forward contract. The elevator takes a futures position, and they also figure their basis, which accounts for the transportation and interest costs of carrying a market. If you do the futures market on your own, you can establish that price but leave where and when you will deliver it wide open. You’re locking in the price and nothing else. You do need to be prepared for the market to change. In the futures market, whoever is carrying the position is responsible for any change in the market. So, if the market were to go up, whoever was holding that position must put money in on that position. If the market drops, they in effect gain on that. When does a farmer typically plan their pricing? You can plan your pricing at almost any time. Typically, especially with corn, sometimes good prices are established while you’re planting it. By making the sale on the futures market, you can lock in the
futures and that price. We’re already looking into years from now. They have futures contracts on corn out into the harvest time period two to three years out. It’s the same thing with soybeans. Let’s say I’m a farmer and I’ve locked in the price of my grain at $10 a bushel. By the time I harvest my grain, the price of grain has risen to $20. What happens then? You’re going to always end up with $10 no matter what happens. Now in this case, you’ve got the price you locked in, but somebody else got a good deal. The futures market is a way of establishing a price in the future that works for the individual. Let’s look at another scenario. What happens if there’s a drought and the farmer can’t produce that crop? If you have a futures position, you simply lift the position and take the loss. Whereas if you have a forward contract, you will have to buy grain someplace to fulfill that contract. On a longer term outlook, a futures position gives you much more flexibility than forward contracting with the end user or elevator. I have heard that the market’s been volatile lately. Is that true and what is the cause? Markets were volatile, but they’re kind of settling down. This year most of the volatility has come from uncertainty about the weather and supply concerns. Rain affects yield and whether a crop is planted on time. It hit the corn and soybean markets worst. At this point, when the harvest is within a few weeks, the market is not really concerned about supply, whereas two months ago it was. Right now, things are looking good for December 2022. The futures price of corn is about $5, which is normally considered excellent. Are you seeing any other trends in the commodity futures market? We’re seeing the markets move much faster than they have in the past. The commodity fund market is affecting other markets more than it has in the past. There are large
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Jane Laskey EDITOR
groups of investors that put all their money together in different commodity funds. So, there is a lot of money there that can help drive a market higher to allow farmers to have better pricing opportunities. How much does what is happening in other parts of the world impact the prices that farmers here in the GreenSeam are experiencing? It will affect the underlying price of the futures market because it’s a world trade. When people look at prices in wheat, for instance, they look at what comes out of the Black Sea, what comes out of Australia. We also look at the continent of Africa. They are really expanding their grain production. Prior to the ‘70s, there really was no South American production. Now we’re seeing increasing production of livestock in South America, and China is attempting to produce more livestock using methods similar to the U.S.
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You mentioned that mad cow disease is impacting meat production in some countries. Are there other animal diseases affecting livestock production and the corresponding commodity markets? China is dealing with African swine fever. One of the biggest fears in the U.S. right now is that African swine fever might come into the U.S. In fact, the closest case of African swine fever is in the Dominican Republic and that is causing some concern that it could end up coming into the U.S. THE ESSENTIALS
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BUSINESS TRENDS
TECHNOLOGY
A seismic shift in transportation is underway in our country. It’s driven by bad news on the climate change front and fueled by recent advances in the electric vehicle industry. It’s a potent mix that is sure to bring challenges and opportunities to the Minnesota business community. Some of the impetus for change is coming from state government. In July, Minnesota Gov. Tim Walz signed regulations adopting clean car standards for the state. The new rules will require manufacturers and dealers to supply more zero-emission vehicles, a standard that only electric vehicles currently meet. The standards will only apply to new light- and medium-duty vehicles for sale in Minnesota. It will take effect in 2024, and apply to 2025 models and beyond. The goal is for 20 percent of all passenger vehicles in the state to be electric by 2030. It’s an ambitious goal: According to the Minnesota Auto Dealers Association, EVs account for only 2 percent of new vehicle sales today. Car dealerships and service centers are scrambling to stay ahead of the changes, and auto manufacturers are racing to meet demand for new EVs and electric crossovers. Expect to see many new models in the new future, including EV SUVs and pickup trucks. By 2023 a combined total of 170 new EV/Crossover models will hit the U.S. market. The federal government is encouraging the purchase of these vehicles for residential use with up to $7,500 tax credits. Minnesota is building the infrastructure needed to support the influx of EVs. Our state currently has more than 200 charging stations in its network, which span the state from border to border, north, south, east and west. According to chargehub.com, there are EV charging stations in almost every city in our area. Mankato alone has 19 public charging stations. For an eye-opening glimpse at Minnesota’s EV charging station network, check out plugshare.com or chargehub.com. The number of charging stations is sure to increase quickly. The 52
November | December 2021
Jane Laskey EDITOR
Minnesota Pollution Control Agency is in the process of installing charging stations every 30 to 70 miles along seven major transportation corridors. I’m writing this story in September and the $1.2 trillion infrastructure bill that passed in the Senate is still awaiting approval from the House of Representatives. It is predicted to pass and by the time you read this it may have become law. If approved,
Minnesota will receive $68 million over the next five years to further expand its EV charging station network. It seems clear EVs are here to stay. That’s good news for the planet. Could it also be good news for your business? Many questions still need to be answered as our state pivots to an emissions neutral approach to transportation. Has the EV industry finally reached that magic combination of affordability, availability and feasibility that will spur popular demand? Will EV charging stations start popping up in company parking lots to meet employee and customer demands? Could embracing EV be a differentiating factor for some businesses? (Savvy hotels and restaurants are betting that it will!) Finally, can Minnesota harness the opportunities EVs present without damaging other key industries? In a region that is directly impacted by the ethanol industry, this will be a very pressing question indeed. Like it or not, change is on its way. As always, prudent business leaders will be watching this evolution closely while assessing the challenges and opportunities it creates for their companies.
INSPIRED TO PLAN AHEAD ARE YOU READY TO START PLANNING YOUR RETIREMENT? It’s never too early nor too late to prepare for your retirement. Finding the right time to retire comes down to proper planning. At Eide Bailly, we help clients effectively manage their family’s unique financial situation. With our comprehensive financial planning approach, we can customize solutions and strategies to help you plan for the future. Our financial services combine the knowledge of a Certified Financial Planner with an experienced team of CPAs and business advisors to help you prepare for retirement, manage your taxes and plan your estate. Let us help you find the right time to retire!
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BUSINESS TRENDS
EMPLOYMENT
Despite lingering pandemic effects, Minnesota businesses are surging back to life. The onset of COVID-19 during the spring of 2020 was truly a dark time for our state. How bad? According to the Minnesota Department of Employment and Economic Development, during March and April 2020, 410,736 jobs were lost and 10,492 businesses closed. To put this in perspective, this dramatic decline was worse than the Great Recession of 2008 (127,319 jobs lost) and the previous recession of 2001 (35,615 jobs lost) combined. And it occurred over just a few short months. No wonder our heads were spinning! Although the business sector stumbled in those early pandemic months, it has been making rapid strides toward recovery. The Minnesota secretary of state’s office reports new business filings were up in 2020 at 80,072 compared to 72,716 in 2019. In addition, 2021 is on track to meet or exceed both years, with 64,256 new business filings as of August 2021. That’s almost 19 percent higher
than the same period in 2020 and 24 percent higher than the same period in 2019. In other good news, exports are up. DEED reports Minnesota’s second-quarter exports for 2021 were 29 percent higher than last year. They’re even 5 percent higher than the same period in 2019, before the pandemic reared its ugly head. There is funding available from the state of Minnesota for businesses that still need a little help getting back on their feet. The Minnesota Legislature renewed its commitment to the Launch Minnesota Innovation Grants program, setting aside $1.5 million to spur new technology in 2022 and 2023. The Minnesota Emerging Entrepreneur Loan Program awarded $3.1 million this year to support the growth of businesses owned and operated by minorities, low-income people, women, veterans and people with disabilities. The state also dedicates $5 million to the Angel Tax Credit. It’s designed to stimulate private investment in emerging businesses. Finally, there are billions of dollars in federal infrastructure spending on the way to Minnesota soon. Nothing will erase the difficulties of 2020. Many of the businesses that shut their doors may never be back — and they will be missed. Those that remain open are struggling with supply chain issues and staffing shortages. Still, there is cause for optimism. The entrepreneurial spirit is alive and well in our state.
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1750 Northway Drive • North Mankato, MN 56003 • 800-729-7575 • www.corpgraph.com 54
November | December 2021
Share in the spirit of holiday get-togethers with fine food, drink, and camaraderie. Green Mill Restaurant & Bar
2101 S Broadway Street New Ulm, MN 56073 507-359-5300 • greenmill.com DETAILS: Full bar with seating up to 69. Restaurant seating up to 110, and 3,500 square feet of meeting space. Conference Center attached for meetings and social events. FOOD: Pasta, Pizza, Burgers, Sandwiches, and Salads.
Lamplighter Family Sports Bar & Grill
214 N Minnesota Street New Ulm, MN 56073 507-354-2185 • lamplighternewulm.com DINING: Big burgers, beer and sports, the ultimate tri-fecta! FOOD: Burgers made of lean ground beef, zero transfat cooking oil used, and only the freshest produce chosen. Sauces, soups, chili and dips all made from scratch.
George’s Fine Steaks & Spirits 301 N Minnesota St New Ulm, MN 56073 507-354-7440 georgessteaks.biz
DETAILS: Private parties anytime; private room available. Fine dining, full bar. FOOD: “World Famous” Prime Rib, fresh hand-cut steaks, fresh fish, homemade salad dressing, soups and sauces.
Wow! Zone
2030 Adams Street Mankato, MN, 56001 507-625-2695 • wowzonefec.com DETAILS: 24 bowling lanes, 2 level laser tag, black light mini golf, arcade, sports bar/restaurant. Family fun or happy hour with coworkers. FOOD: Burgers, sandwiches, wings, pizza, salads and pasta.
Veigel’s Kaiserhoff
221 N Minnesota Street New Ulm, MN 56073 507-359-2071 • kaiserhoff.org DETAILS: Large parties, tour groups and sports teams welcome. Full bar. FOOD: “Home of the famous Kaiserhoff Barbeque Ribs.” German menu. Steaks, Seafood, Burgers, Sandwiches and Salads.
The Lakes Sports Bar & Grill 151 Humphrey St W Lake Crystal, MN 56055 507-726-6801
FOOD: Delicious homemade pizza, wings, burgers, sandwiches and salads. Daily specials and homemade soup. DETAILS: Private room with seating up to 200 and private bar area. We can also cater your next special event.
Neisen’s Riverside Sports Bar
34166 MN-99 St Peter, MN 56082 507-931-7966 DETAILS: 24 draft beer choices, as well as many other bottled options. 19 big screen TVs for all your sporting events, huge rooms for special or private events. FOOD: Large menu of appetizers, burgers, sandwiches, wings, pizza, salads and more.
Swiss & Madison
920 Madison Avenue Mankato, MN, 56001 507-380-7556 DETAILS: Fine dining. NEW family-owned restaurant with a modern menu and atmosphere. Come enjoy any meal and occasion with us. FOOD: Appetizers, salads, entrees with steak, walleye, shrimp, scallops, salmon.
The Blue Boat 12 Civic Center Plaza Suite 1710 Mankato, MN 56001 507-720-0462 blueboat.earth DETAILS: A dining experience meant to take your tastebuds on a tour of the world. Local artists and musicians featured. FOOD: Ever-changing menu based on featured zones around the world. CONNECT Business Magazine
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What Do Malware, Viruses, and Trojans Do To A Computer? We have all heard a story where Jane gets an email from a friend asking her to take a survey or open an attached document. Jane excitedly opens the email, clicks the link, and downloads something to her computer. The next thing she knows, hackers have taken over her computer and refuse to allow any access unless a ransom is paid. You might think, “That can’t happen to me!” But trust us, we’ve heard that before. Viruses, trojans, and malware are now very common for users and can create havoc on the computer system. So, what does it all mean? Malware means malicious software. Simply put, it is a term to describe all viruses, worms, spyware, trojans, and anything specifically designed to cause harm to your computer or steal your personal information. Much like in real life, a virus is a program that copies itself and infects a computer,
spreading from one file to another, and then from one computer to another when the files are copied or shared. Many viruses are designed to make your computer completely inoperable. Some, however, simply delete or corrupt files while others just want you to call a fake Microsoft number so they can gain access to your computer. The suspicious email attachment or shady internet download can be what opens the door for a trojan horse. Trojan horses are applications that appear to be safe, but secretly have malicious code attached. In many cases, trojans will create a backdoor that allows your computer to be remotely controlled. When your computer is infected with a trojan, it can be used for many harmful purposes, such as sending out large amounts of spam. The major difference between a virus and a trojan is that trojans don’t replicate themselves, they must be installed by an unsuspecting user.
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The severity of the hack depends on the type of intrusion. The scam may be as harmless as a pop-up saying to call “Microsoft” at a 1-800 number (which is fake). The scam may also be as serious as a ransomware attack that has encrypted all of your files and the only way to get the decryption key is to pay them with bitcoin. The best line of defense against attacks is to educate yourself on the different attack methods, and have an antivirus and anti-malware protection. It is important to keep in mind, that no protection is 100% guaranteed to keep your computer safe. For your security, you should always have a backup of your computer, difficult passwords, and routine tuneups. If something on your computer appears suspicious or is acting unusual, give Tech Unlimited a call and we will help you determine if it is safe to proceed. Tech Unlimited services all brands of desktop and laptop computers, as well as tablets, screens, phones and other electronic devices. Tech Unlimited’s customers include both residential and business clients.
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INDUSTRY INSIGHT
Constructing A New Way To Give Nancy Zallek has had an interesting career path. From running her family retail business to a nonprofit ballet company to a multimilliondollar community foundation, Zallek has done a lot over the years. But Zallek, the president and CEO of Mankato Area Foundation, never anticipated she would one day be researching the market value of construction equipment. “I never know what’s going to happen next when my phone rings,” Zallek said, laughing. “But even this one surprised me.” The call came from Tom Hoehn, owner of Hoehn Drainage and Excavating. Hoehn had been planning to advertise and sell an excavator once used as part of his business, but when Hoehn told his financial advisor, Ryan McKeown, of Wealth Enhancement Group, of his plans, McKeown suggested Hoehn think outside the box. Why not donate the excavator to the Mankato Area Foundation? “Tom’s equipment had recently appreciated in value due to supply and demand,” McKeown said. “And since he had a strong history of charitable giving, I thought he might enjoy and benefit from a creative gift to the Foundation.”
As the holiday season approaches this year, it’s more important than ever to reflect on the good in our lives. At the Mankato Area Foundation, we are grateful for our donors and their endless generosity. Thanks to our donors, we disbursed over 601 grants totaling $2.2 million to regional nonprofits in 2021. Please consider how you can join in making a difference for our communities. There are many ways to give to the Foundation. You can contribute a variety of assets such as: cash, non-cash assets, stocks and securities, mutual funds, IRAs, life insurance, real estate and assets of other trusts or of a private foundation. Together, giving looks good on us. Pictured above: Marian Anderson Memorial Sculpture and Children’s Museum of Southern Minnesota
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November | December 2021
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The plan? Donate the excavator, and the Mankato Area Foundation would tap its local relationships to sell the equipment. The proceeds from the sale would then be contributed to a donor-advised fund at the Foundation in Hoehn’s name. It would be a fresh approach for the Mankato Area Foundation, but not a first. “We have donors gift us non-cash assets all the time,” Zallek said. “We have accepted and sold corn, land, and artwork. So why not construction equipment?” Hoehn was thrilled about this unique concept. “I had no idea I could contribute a piece of equipment to our local community foundation,” Hoehn said. “Without Ryan’s creative approach, I would never have thought the sale of my excavator could be used to support my charitable giving goals.” With the plan in motion, Zallek and her team set to work on the sale of the excavator. “It was a surprisingly seamless process, which involved learning more about excavating equipment than I ever anticipated,” Zallek said. “But in the end it was a mutually beneficial transaction.” “Through this process, Tom was able to easily create a donor-advised fund, which is our most popular tool for charitable giving,” Zallek said. “Once the equipment is sold, he can grant from his fund, and he can continue to contribute to his fund over time as Tom identifies future projects and programs he cares about.”
Nancy Zallek, President and CEO of Mankato Area Foundation
Hoehn is excited about the future of his donor-advised fund, and he plans to use this fund to support a variety of causes. “This has opened new doors for me from a philanthropy standpoint,” Hoehn said. “I am looking forward to working with the Mankato Area Foundation and taking advantage of their regional expertise.” As for Zallek, her days as a construction equipment market researcher are likely just beginning. “Our community is incredibly innovative when it comes to giving back, and I have found that creativity begets creativity,” Zallek said. “I know this will inspire more leaders in the construction industry to think about their charitable goals, and I will be waiting by my phone for that next adventure to start.”
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Follow Bridge Plaza’s Design and Construction in This Video Series with Mankato High School Student Chloe Aanenson Episode 1 – Architecture
Episode 2 – Surveying
Episode 3 – Landscape Design
Episode 4 – Construction Mgmt.
Episode 5 – Civil Engineering
Episode 6 – Vetter Stone
Episode 7 – Interior Design
Episode 8 – Mechanical Engineering
Episode 9 – Finale
Watch the series! Scan the QR Code or go to widseth.com/bridgeplazaseries
ARCHITECTS
ENGINEERS
SCIENTISTS
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Mankato | Bridge Plaza, Suite 220 | (507) 519-3700 | Widseth.com