MN Valley Business by Free Press Media

The Definitive Business Journal for the Greater Minnesota River Valley August 2021

Marius Rygg, president of Rice Companies. Photo by Pat Christman

Build, build Demand and costs high

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F E A T U R E S August 2021 • Volume 13, Issue 11

Construction is brisk in the Mankato region with demand high. But sky high construction costs and a shortage of workers are restraining the market.

Gunnar Boettcher’s own journey to pain relief led him to become a Muscle Activation Technique specialist and use the knowledge in his business.

MN Valley Business magazine is featuring some of the winners of the “Best of 2021” contest that is held annually by Mankato Magazine.

Since Dan Buss and Kevin Gaulrapp brought back a hardware store to Lake Crystal’s Main Street the community has embraced it.

MN Valley Business • AUGUST 2021 • 3

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AUGUST 2021 • VOLUME 13, ISSUE 11

By Joe Spear

PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn COPY EDITOR Kathy Vos CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Dan Greenwood Dean Swanson Robb Murray PHOTOGRAPHER Pat Christman COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Danny Creel Sales Jordan Greer-Friesz Josh Zimmerman Theresa Haefner Tim Keech ADVERTISING Barb Wass ASSISTANT ADVERTISING Christina Sankey DESIGNERS CIRCULATION Justin Niles DIRECTOR For editorial inquiries, call Tim Krohn at 507-344-6383. For advertising, call 344-6364, or e-mail advertising@mankatofreepress.com. MN Valley Business is published by The Free Press Media monthly at 418 South 2nd Street Mankato MN 56001.

■ Local Business memos/ Company news....................................5 ■ MRCI....................................................8 ■ Business Commentary........................9 ■ Business and Industry trends .........22 ■ Retail trends ....................................23 ■ Agriculture Outlook .........................24 ■ Agribusiness trends.........................25 ■ Construction, real estate trends ....26 ■ Gas trends .......................................27 ■ Stocks ..............................................27 ■ Minnesota Business updates...........28 ■ Job trends ........................................28 ■ Schmidt Foundation ........................30 ■ Greater Mankato Growth .................32 ■ Greater Mankato Growth Member Activities ...........................34

From the editor

Building, farming, economy in the blue sky mode

upply shortages. Rising prices. Inflation worries. Mankato’s economy faces all of those, yet, the building business seems to be booming. Add to that unprecedented worker shortages, and the economic future seems complex at the very least. This month’s cover story offers the important details on how all this is playing out with builders, many of whom seem optimistic despite the challenges. The residential and commercial building boom seems to be advancing unabated. Specialty luxury apartments at the Bridge Plaza are full up. Something Mankato hasn’t seen in a long time, new efficiency apartments, take the form of an upscale Kasota stone building in Old Town. It sounds like they are renting quickly. When asked where all these renters are coming from, the builders say “all over.” It’s remarkable that the market for building seems undaunted by lumber prices that tripled, though they’re coming back down somewhat, but not so with steel prices. Our economic professors used to describe this situation in terms of elasticity of demand. The cost of something can go up but the demand for it will continue to rise. So demand is not sensitive to price, therefore, demand is “inelastic.” Inelastic situations can be good. It means sellers, builders or whoever can raise prices and still have good demand, resulting in more profit. It can be bad in that continually rising prices will ultimately price some people out of the market, and cause others to raise prices, or workers to demand higher wages, resulting in a situation where prices for all goods are rising, resulting in inflation. U.S. economists haven’t worried about inflation in years. Recently, there’s been more attention to it, though many economists remain

4 • AUGUST 2021 • MN Valley Business

unflinching, saying most of today’s inflation is driven by rising prices for gasoline and other commodities that are considered temporary factors. The inflation rate for 12 months ended May 2021 was a whopping 5 percent, up from 2020 rate of 1.4 percent. In fact, the inflation rate hovered between 1 and 2 percent from 2012 to 2020 and was only 3 percent in 2011. The last time it was 5 percent was June of 2008. But building will be demanding even more workers. In Minnesota, for example, the Legislature last year passed one of its biggest public infrastructure bills in years with a $1.9 billion bill. The infrastructure bill being contemplated in Congress will be about $1 trillion depending on how you measure it. And the labor force to build those projects will not be expanding. Already, wages are going up to where places like McDonald’s are paying $15 per hour starting. Fortunately, builders and the city of Mankato have embraced the idea that a city with burgeoning market rate apartment buildings must also have a mix of affordable housing. In December two Mankato projects were awarded subsidies from the Minnesota Housing Finance Authority for a total of $22 million in projects that will add 90 units of affordable housing. The projects include Sinclair Flats, a development near downtown Cub Foods that will have 38 affordable units and a project near Rosa Parks elementary that will add 51 units. While social media critics say typical affordable housing rents in the $900 range for one bedroom apartments are not really “affordable,” the Sinclair Flats units will be the cheapest we’ve seen in recent history with prices at $360 to $655 for one-bedroom apartments, $426 to $956 for two bedrooms, and $888 to $1,092 for three bedrooms. Tenants would qualify based on

DeMars Construction DeMars Construction Inspired. Timeless. Passionate. ■ Local Business DeMars Inspired. Timeless.Construction Passionate. Inspired. Timeless. Passionate. People/Company News DeMars Construction their income. And it’s good to see old buildings being put to good use. The biggest win in this category appears to be the use of the empty Gander Mountain and Gordon’s building into the farm and fleet type store Bomgaars, big player in the Upper Inspired.aTimeless. Passionate. Midwest. And it’s also good to see the Voyageur Bank building will be redeveloped downtown. Jobs and wages are also rising locally. Mankato jobs grew by 8 percent in May compared to a year earlier. Average hourly wages grew about 7.5 percent to $28.07 per hour. Much of the growth in jobs stems from a retail and service economy rebounding from the pandemic and the removal of the mask mandate and other restrictions that came about in May and June. And finally, the Mankato farm economy is also booming. Corn and soybean prices are about double what they were last year, some at very profitable levels now. It’s hard to find any dark lining in these silver clouds. Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382. Follow on Twitter @jfspear.

Capstone adds executives

Capstone, a publisher of children’s educational content for schools and home, made two appointments to its senior leadership team. Judy Chartrand joins the organization as Chief People Officer and John Maketa comes aboard as Chief Revenue Officer. Chartrand will oversee the people, culture, and organizational strategies, leading company-wide learning and development, culture and engagement, diversity and inclusion, and organizational design initiatives. Most recently, Chartrand was the director of people development for Hajoca Corp., which has more than 5,000 employees, and spearheaded leadership development programs across the U.S. and Canada. Maketa will oversee Capstone’s revenue generating sales and

marketing teams in executing the publisher’s rapid growth strategy. Most recently he served as the chief revenue officer at Caliper Corporation. ■■■

Nelson elected board president

Ric Nelson, president and CEO of New Ulm-based EON, Inc., was elected board president of ARRM (The Association of Residential Resources of Minnesota). Nelson brings more than 25 years of industry experience and has been president of EON since 2014. ARRM is a nonprofit association of more than 200 provider organizations, businesses and advocates that provide home and community-based ser vices supporting people living with disabilities.

From conception to completion, DeMars Construction employs a personalized approach to make From conception to completion, DeMars Construction employs a personalized approach to make Fromcustom conception DeMars Construction employs a personalized approach to make each projecttoacompletion, rewarding experience for their clients. Explore the possibilities for your home each custom project a rewarding experience for their clients. Explore the possibilities for your home each custom project a rewardingDeMars experience for their clients. the possibilities From conception to completion, Construction employsExplore a personalized approachfor toyour makehome with DeMars Construction. with DeMars Construction. with eachDeMars customConstruction. project a rewarding experience for their clients. Explore the possibilities for your home

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• AUGUST 2021 •

Two join True

Alex Phippen and Andrea Citrowske have joined True Real Estate as real estate agents. Phippen is a native of Winnebago and currently lives in Fairmont. Citrowske is a native of Prior Lake and recently moved to the Le Sueur area after attending Minnesota State University. ■■■

United Prairie Bank promotes two

United Prairie Bank promoted Spenser Bradley and Nate Bastian to market presidents of the Mankato and Waseca markets, respectively. Former Mankato and Waseca Market President, Doug Lago, has resigned in his role with United Prairie to pursue his dream of business ownership. Both Bradley and Bastian have been business and ag lenders with United Prairie for many years. United Prairie is headquartered in Mankato and has 14 locations throughout central and southern Minnesota.

accounting ser vices to many different industries, including commercial, health care, and ag processing. He has experience supervising and managing audits as well as assisting with a variety of accounting services.

North Dakota, and Montana. He also spent three and a half years in the Peace Corps, stationed in Romania. He plans to move back to Romania, spending his time as a volunteer and teaching English at local schools and orphanages.

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Larson joins Massad Real Estate

Matt Larson has joined Massad Real Estate. He is a Rochester native who has lived in Mankato for nine years. Massad Real Estate is located at 100 Warren St. in Mankato. ■■■

Spence retiring from Crystal Valley

Jeff Spence, vice president of grain at Crystal Valley Coop is retiring in August. Spence has served in his role since 2007 and his cooperative experience spans more than 42 years. He began his cooperative career with Harvest States GTA and managed coops in Minnesota,

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Knutson grand opening

Knutson Construction held a grand opening of it’s office in the Eide Bailly Center in downtown Mankato. Knutson worked on the Eide Bailly building, which opened in October. Minneapolis-based Knutson has worked in Mankato for more than 15 years but didn’t have an office here. They also have an office in Rochester. In southern Minnesota, Knutson recently completed the Minnesota State University Children’s House and the Truck Bodies and Equipment International Inc. projects.

Visit a business banker at First National Bank Minnesota to talk about your goals and how we can help. Your community banking partner since 1857.

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Haley named Eide Bailly partner

Brian Haley, who has been working in public accounting since 2007, has been named a partner at Eide Bailly in Mankato. He provides audit and

6 • AUGUST 2021 • MN Valley Business

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MN Valley Business • AUGUST 2021 • 7

A BLUE PRINT FOR SUCCESSFUL EMPLOYMENT PARTNERSHIPS FINDING WORKERS

CREATING PARTNERSHIPS

As an employer, you know how important it is to gain a competitive edge in the labor market. MRCI can help you find and keep good workers.

CREATING A PLAN MRCI matches hardworking, dependable individuals with temporary and permanent employment positions in businesses throughout Minnesota. We can assist you with recruitment, selection, on-the-job training, follow-up support services, job customization and more.

FINDING A FIT MRCI helps place people in many industries, all of whom have varying degrees of educational background, vocational training and previous employment experience.

MRCI does not charge its business partners a fee for workforce development or consultative services and we’re only satisfied if hiring MRCI workers makes your business better and your job easier. Our team members know how to structure partnerships that work, and you’ll have access to our expertise at every stage of the process.

GREAT BENEFITS More than ever companies are seeing the benefits of hiring people with disabilities. From increasing their customer base, to retention of other valuable employees to reduced training costs and tax incentives.Our team members will work with you to find the best employment solution for your organization and MRCI’s talented clients.

Some examples of previous placements include: • Clerical • Hospitality

• Services • Manufacturing

• Sales

MRCI has been providing genuine opportunities for individuals with disabilities at home, at work and in the community since 1953. If you have any new, expanding or reoccurring needs, please contact MRCI to explore a possible solution.

8 • AUGUST 2021 • MN Valley Business

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Business Commentary

By Dean Swanson

Two simple tips to improve your website’s visitor experience

small business CEO asked me last week to give some suggestions on how to improve the performance of their website. This is a good topic as we come back from the pandemic slump and refocus our efforts on attracting an expanded customer base. A positive user experience is directly tied to the impression prospective customers have about your brand, including the level of quality of your product or service. There are two simple steps you can take to make sure you’re giving your web visitors the best user experience possible – page load speed and quality content. Here’s how to make sure your website has both. Creating a new website for your business is a big undertaking. It can take months to design, code, write and launch a professional site. And, that’s not to mention the maintenance of your website once it’s launched and the ongoing SEO, or search engine optimization, that must be in play to make your website discoverable online. After working hard to bring your website to life, the last thing your business can afford to do is frustrate your visitors and drive them away due to a poor user experience. “Good design, usability, and user experience are more important than ever in website development,” shares SCORE mentor and technology professional, Matthew Krieger. “It’s a constant fight for visitors’ attention—any delay, complexity, or friction whatsoever could prompt users to leave your site. I often see companies put too many barriers in front of customers— overly complex signup processes, excessively strict forms, surveys with too many questions, etc. These things hurt the engagement process and can result in a lost sale.” There are two simple steps you can take to provide your website visitors with a positive user experience.

Pay Attention to the Loading Speed of your Pages

Today, consumers expect an instantaneous response when navigating through a website. As a result, Google wants to see fast load times and takes page load speed into account when determining a website’s rank in a search result. As of late 2019, Google considered a page load speed up to two seconds as acceptable, though prefers speeds under a half-second. You can check the page load speed of your website by using Google’s PageSpeed Insights tool. According to a May 2020 article published by Nielsen Norman Group, page load delays of just one second are

enough to interrupt a person’s consciousness and delays of just a few seconds are enough to seriously hurt the user experience of a website. By working with a web developer to improve your website’s page load speed, you’ll create a better user experience and, over time, increase your site’s ranking in organic search results.

Create Quality Content That is Clear and Direct

Once you get your visitors to your website with a fast page load speed, your next challenge is to make sure that they do not bounce right off of your site. The average time spent on a website by a visitor typically ranges from a few seconds to a couple of minutes. That means you have a very limited window of time to capture a visitor’s attention and provide them with information about your company, product and services. Create content that gets right to the point of what you do and why you do it. Visitors will not spend time sifting through lots of content to find what they need. Make it easy for people to find your site, get the information they need and get in touch with you to learn more. Learn more about how to create clear, direct and effective web content by reading this SCORE article, “How to Create Great Web Content.” “A website’s information architecture—the art and science of structuring and presenting digital information to achieve good usability—is important to consider when developing your content. Furthermore, the need for a clear and focused message is greater than ever,” explains Krieger. “Given the overwhelming amount of digital content competing for people’s time, delivering value quickly should be a focus.” A positive user experience is critical to the performance of your website. Employ an experienced web designer and developer with a strong grasp on the latest best practices for web design, page load speed and optimized content. Finding the right digital marketing partner is easier when you have an experienced professional mentor, like a SCORE mentor, by your side. A SCORE mentor will help you select the best digital marketing firm or consultant out there to support your business. With your mentor’s help, you will put your website in a position to be successful as you compete for the

Dean L. Swanson is a volunteer certified SCORE mentor and former SCORE chapter chair, district director, and regional vice president for the north west region. For information on the local Mankato area SCORE chapter: scmnscore.org MN Valley Business • AUGUST 2021 • 9

Marius Rygg, president of Rice Companies’ Mankato office, outside the Cherry Creek and Mankato Ballet Co. building that Rice built.

Building boom Demand strong but costs high By Tim Krohn | Photos by Pat Christman

emand for new housing of all kinds is sizzling. A strong economy gives companies confidence to build or expand their buildings. And as the pandemic fades, the good vibes about the economy’s future grow stronger. Those factors are supporting a good pace of construction locally, but what could be an all-out building boom has been slowed by sky-high costs for building materials of all kinds and by labor shortages. Marius Rygg, president of Rice Companies’ Mankato office, said that while rising prices have an impact, low interest rates have helped fuel demand for commercial construction.

“Demand is good and I’m very optimistic on where construction is going in the next few years. Lumber has come down some. Steel not so much, but it will come down, too.” Joe Siefert, president of St. Cloud-based Miller Architects & Builders, said construction costs are causing sticker shock. “Cost really slowed things down. Lumber is almost three times what it was a little over a year ago. Steel is about that much higher, too — steel siding, structural steel.” Cate DeBates, vice president at Coldwell Banker Commercial Fisher Group, said high material costs as well as difficulty in finding workers are making

Cover Story

10 • AUGUST 2021 • MN Valley Business

The new Studio Five building in Old Tow has a boutique coming in part of the main floor space. Studio apartments are on the upper floors. contractors more conservative. “There are contractors who don’t want to bid out a project beyond seven days because they’re not sure of the material costs, and there’s the labor shortages. We’ve seen projects delayed because of that.” Real estate agents are facing slightly different challenges. Prices of existing homes also have jumped significantly, but there are still plenty of potential buyers willing to pay the higher costs. The problem lies in an ongoing shortage of housing stock to sell. Despite the challenges, developers, leasing agents and Realtors say the Mankato area economy is strong and generating plenty of activity.

Bouncing back

All signs show an economy recovering strongly from the pandemic. Paul Vogel, Mankato’s director of community development, said construction levels are back to the hot levels of pre-2020. “Construction activity and valuation have been strong so far this year.”

Through June of this year, the city has issued permits that represent more than $91 million in valuation. In 2020 the year-todate valuation through June was $58 million. An additional $10 million of projects are being reviewed that will add to the total. The city issued 59 permits through June for homes and townhomes compared to 55 last year, and the number of new apartment units permitted also has increased. New commercial and industrial permits also have been strong in 2021. Through June more than $40 million of projects have been permitted compared to $20 million last year. Those include a new truck stop on Adams Street and expansions at Dotson Iron Castings and Johnson Outdoors. Major projects yet to be permitted that are under review include the Truck Companies Sales and Ser vice Center (formerly Harrison Trucks) on Adams Street that will be over 118,000 square feet. Vogel noted that before the end of the year, review of two major residential subdivisions will also be likely on the east side of

Mankato. The areas under consideration exceed 250 acres and include a mixture of singlefamily and multi-family units. One of the subdivisions is considering an affordability component for single-family homes to meet the growing need of affordable singlefamily homes in the community. Nor th Mankato City Administrator John Harrenstein expects about 25 new homes will be built this year, about the threeyear average for the city. He’d like to see that annual number closer to 50, something he thinks would be attainable if construction costs hadn’t soared. The city also has seen $3.2 million in industrial and commercial permits issued through June, a number that doesn’t include the new Comfort Inn & Suites on Commerce Drive or the new Frandsen Bank on Belgrade Avenue, both of which were recently completed but were permitted last year. Harrenstein said the Northport Industrial Park continues to draw strong interest. “We have about five requests for property at Northport, all at various stages of interest and readiness, but I

MN Valley Business • AUGUST 2021 • 11

Townhomes, like these going up at the Fontaine subdivision near the Mankato Clinic’s Wickersham campus, remain a hot commodity in the local area. suspect we’ll see something out there in next 12 months, either new construction or moving into existing buildings.”

Good demand

Rice Companies, headquartered in Sauk Rapids in central Minnesota, has offices in Mankato, Fargo and Glencoe and focuses on everything from light

12 • AUGUST 2021 • MN Valley Business

commercial to heavy industrial projects. The company will soon break ground on a $6 million facility in Eastwood Industrial Park, across from the Walmart distribution center. The 50,000-square-foot building will house Rice Companies and has other tenants lined up. “We do anything commercial from light commercial to industrial, small or large,” Rygg said. They last year finished a building on Tullamore Street that is home to the Mankato Ballet Co. and Cherry Creek cabinets and are doing a reroof of Hiniker Co. near the airport. “It’s six acres of roof,” Rygg said of the project. They also built the new Kenworth truck dealership along Highway 14 a couple of years ago. Rygg said they have seen strong demand and a strong economy across Minnesota and he’s confident that as the high costs for materials come down, construction demand will swell for years to come.

But he said they face a more formidable issue. “The bigger obstacle facing our industry is the labor shortage — skilled and unskilled — and it’s hitting every industry.” DeBates said Coldwell has seen strong commercial leasing and sales activity this year. The office has had 1.6 million square feet of transactions so far this year, compared to 1 million last year at this time. Demand for higher-end downtown apartments has been good. Bridge Plaza’s units were filled soon after the building opened and the studio apartments in the newly opened Studio Five building in Old Town are going briskly, she said. She said developers are interested in doing more mixeduse projects downtown, be it new construction or renovation. One project in the works is for the old Voyageur Bank building on the corner of South Second and Main streets, directly across Main Street from the new Eide Bailly building. Miller Architects & Builders

Row houses under construction in the Prairie Winds area east of Highway 22 on the edge of Mankato. One of the hottest housing construction areas has a mix of single family, multi-family and senior living complexes. has built several major apartment complexes in Mankato and Siefert sees plenty of future demand. “Most of what we’ve seen is market rate multi-family (apartments) and there is a need

for some nursing home remodels and additions. The senior living people are also getting into the apartments, not just the young people. And you see more single family going in all over.” MV

MN Valley Business • AUGUST 2021 • 13

Gunnar Boettcher’s ordeal with back pain led him to use the Muscle Activation Technique in his personal training business.

STORMfront

Gunstorm Muscle Health business booming By Robb Murray Photos by Robb Murray

unnar Boettcher’s life was at a At his wit’s end after trying traditional crossroads. ways to ease his pain, he sought the help of Months earlier, the Mankato West a Muscle Activation Technique specialist. High School and “I told him ‘You’re Gustavus Adolphus about to change my College grad had life,’” Boettcher recalls sustained a back injury. telling the specialist. And now, the young “You’re either going to GUNSTORM MUSCLE give man who had been me the answers I HEALTH lifting weights since need, or it’s going to 261 Bunting Lane, Mankato fourth grade, and was totally change my career 507-779-7303 once a titan on the path. Because I need to Todnem Field gridiron, know. I need this gunstormmusclehealth.com was a walking picture of corrected. I am at a Facebook: pain. crossroads in my career Gunstorm Muscle Health “There was a point and my health.” where just putting my work clothes on in Muscle Activation Technique did, indeed, the morning was the worst part of my day,” help heal his back. But it also put Boettcher he says. on a path to enhance an already successful

Spotlight

14 • AUGUST 2021 • MN Valley Business

personal training business he’d launched even before graduating from college. Today, after becoming a certified Muscle Activation Technique practitioner himself, Boettcher’s Gunstorm Muscle Health — located in the former Build ‘N Tone location at 261 Bunting Lane in Mankato — is booming. While he lost 70 percent of his business when the pandemic hit, today he’s on a path to a bright future.

West Side Stor y

Boettcher grew up in Mankato’s Lincoln Park neighborhood, and ever since he can remember he’s had a fascination with athletics and, specifically, muscle anatomy. When it was time to start football, his father introduced him to the family weight set in the basement, figuring it wouldn’t be the worst idea in the world to bulk Gunnar up a bit. Dad may not have known it at the time, but that nudge to the weight room set his son on a career path. In high school Boettcher, as weight-room dudes may say, got ripped. He’d taken weight training so seriously that he became one of the strongest boys at West. But he didn’t just get ripped; he also got knowledgeable about the muscles he was training, reading up on anatomy and weighttraining techniques. After high school he attended Gustavus Adolphus College. And before he graduated he’d launched his personal trainer business in St. Peter. He also kept pumping iron. In fact, it was a workout session where he sustained that injury mentioned earlier; a lower back injury that caused him excruciating pain. After getting relief from a Muscle Activation Technique specialist, he wanted to help others do the same. So he enrolled in a training program and became certified to practice the patented techniques with clients. But it wasn’t easy passing the two-day, 16-hour certification test. “It was the hardest test I’ve ever taken in my life,” he says. “But I passed.”

MAT

Muscle Activation Technique,

according to technique creator Greg Roskopf, is “a biomedically based process designed to identify and correct muscular imbalances that contribute to chronic pain and injury and altered performance levels.” It’s a complex concept. But it’s also one that, Boettcher says, can transform the way athletes and non-athletes train. In layman’s terms: The body is full of muscles, more than 650, actually. But for most people, not every muscle works at peak efficiency. When this happens, other muscles pick up the slack. But in some cases, such as with major muscle groups, this kind of “compensation,” as it’s called, can lead to a muscular function imbalance so severe it can lead to injury. Just ask Boettcher. He suspects his back injury occurred because of a compensation issue; some of his muscles weren’t functioning efficiently, and other muscles had to pick up the slack. When the slack becomes too much, and the stress levels too high, muscles break down. MAT practitioners isolate and activate those shy muscles and get them to the party. When all muscles are working together, movement becomes stronger, faster, better and more efficient. Boettcher likens it to people hauling a couch out of a basement. If just two people are moving it, it can be a slow process full of grunts, dropped furniture and wall scrapes. But if six people chip in, suddenly that couch isn’t so heavy, and the task gets done quickly and sans wall scrapes. At this point, Boettcher says about two-thirds of his business is clients coming to him for MAT. He’s also still a personal trainer. And the Gunstorm Muscle Health facility can be used simply as a workout space. But his priority at this point is MAT and her personal training clients. He’s had a few famous ones, too, particularly National Hockey League players, including. James van Riemsdyk of the Philadelphia Flyers, Brock Nelson of the New York Islanders, and Teddy Blueger — of Minnesota State University Mavericks fame — of the Pittsburgh Penguins.

The bulk of his clientele, however, remains local, and it’s growing. “I’ve worked with every single age range, I’ve worked with almost every single body pain, I’ve worked with hip replacements, knee replacements, spinal fusions, stroke victims,” he says. “I’ve worked with almost every single disease state. And I can now even say I’ve worked at every single level all the way up to pro athletes.”

Kristen the Client

Kristen Holland star ted working with Boettcher as a personal training client when Gunstorm Muscle Health was in St. Peter. When Boettcher moved to Mankato, Holland followed him over. Holland says she started working with Boettcher because she wanted to get more active. She progressed well and was impressed with the weighttraining regimen, but was just as impressed with the MAT work Boettcher did with her. She says she’d notice differences in her ability to lift weight, or changes in range of motion. After doing some MAT work, she says Boettcher was able to alleviate many of those issues. “My range of motion would dramatically improve, I had better muscle strength, better endurance,” she says. Holland says that using Gunstorm Muscle Health’s full range of ser vices — MAT, personal training, on-site full workout facility — has changed her life. “I have more energy than I did before. I don’t feel like I have to live on caffeine to try to get the day going. And I don’t have some of the aches and pains,” she says. “Last year or the beginning of this year I said, ‘Oh my gosh, I haven’t had that back pain for quite some time.’ Or I’d be sleeping better and ask, ‘What made the difference? Well, what have I been doing? I’ve been getting MAT. So it’s changed everything. And I feel better. I feel like I’m able to do things that I want to do. I want to age gracefully and healthfully. And I don’t want to be using a walker.” MV

MN Valley Business • AUGUST 2021 • 15

MN Valley Business is running some of the

“Best of 2021” businesses and people

featured in Mankato Magazine. The winners of the annual awards are chosen by Free Press Media readers. The complete list of winners was in the July issue of Mankato Magazine. ENTERTAINMENT EXPERIENCE

FOOD & DRINK

PEOPLE

PERSONAL CARE

PROFESSIONAL SERVICES

BEST SHOPPING

BEST ATMOSPHERE CHANKASKA WINERY:

Scenic view and fine wines

elsey Long has been the manager of the tasting room and spirit bar at Chankaska Winery for just over nine years, a job many would envy. Long doesn’t blame them. “I do love my job,” she said. “I’ve been with Chankaska for almost 10 years, and I really enjoy working

BEST FAMILY FUN WOW! ZONE:

Something for everyone

Treven Licht lines up his shot while celebrating his 8th birthday with his parents Jenny and David and younger brother Cayden at the Wow Zone. The bowling alley reopened with some restrictions due to the COVID-19 pandemic.

16 • AUGUST 2021 • MN Valley Business

he Wow! Zone began operating in 2008 and is now entering its 13th year in business. The Wow! Zone, 2030 Adams St., was voted best family entertainment for 2021. Owner Pam DeMarce said 2020 was a challenging year, when being closed for a few weeks turned into months. But with safety practices, league bowlers were able to finish their season, and now spring bowling leagues have begun. What’s unique about the Wow! Zone, DeMarce said, is that it truly is an entertainment spot for all ages. Children as young as age 1 can bowl

here.” Long credits the beautiful grounds, relaxing patio and, most of all, Chankaska’s award-winning wines as a few of the reasons behind the winery being voted Best of in the food and drink category. “In addition to our fine wines and food like wood-fired pizza, we excel at customer service,” Long said. “We value our customers, and we give them the best service and make their visit the best experience we possibly can.” Chankaska felt the pinch of the pandemic last year, but since reopening, the winery has been doing its best to make sure guests are safe while following the state’s health guidelines. “We tried to make the best of the situation and did what we had to do,” Long said. “When we were able to reopen, we kept people at a nice distance and made sure everyone was safe.” With the world getting back to normal, Long and the rest of the staff at Chankaska are looking forward to welcoming guests and are excited to be opening a deck area where people can sip a glass of wine and enjoy a Minnesota summer evening. “It’s going to be a beautiful summer,” Long said.

BEST INSURANCE AGENT AARON HATANPA: with the help of a parent. When bowling is over for the kids, there are lots of other things for them to do. And for older generations, if they want to sit and watch people play, they can do that — though DeMarce is quick to point out that people in their 80s and 90s are in bowling leagues. The Wow! Zone also provides meeting spaces for groups, party spaces for weddings, after-prom parties, families and more. With 40,000 square feet of space, DeMarce said the uniqueness of offerings make the Wow! Zone a special place. “We’re just so happy to be open, and provide people a place to play and gather.”

‘Doing the right thing’

aron Hatanpa takes seriously his commitment to supplying Mankato-area residents with life, home and car insurance via his State Farm Insurance agency. “Doing the right thing is the only thing,” said Hatanpa, a 20-year State Farm agent with offices at 1613 N. Riverfront Drive, Mankato, and 217 N. Main St., Mapleton. “All that we sell is our integrity, so we are going to do what we promise you we will do.” Though Hatanpa insists he doesn’t consider himself an expert salesperson, statistics tell a different story; State Farm insures at least 30% of Mankatoans. “If we weren’t doing a good job from price, education and service standpoints, people would be taking their business elsewhere,” said Hatanpa, a Mankato resident with his wife, Jess, and their five children. A graduate of the University of Minnesota, Morris, with majors in

business management and economics, Hatanpa initially spent four years handling claims for State Farm. That background knowledge is advantageous. “I see those four years as an asset because I really understand how liability, home and auto claims play out,” said Hatanpa, who has 12 agents on his staff. As a true believer in the State Farm model — it’s a mutual insurance company, meaning policy holders are also company stakeholders — Hatanpa also empathizes with customers. “When there’s a claim, something bad or stressful has just happened to one of your customers,” he said. He aims to help them understand how insurance can soften the blow of life’s zingers. Above all, Hatanpa shares the credit for his professional recognition and success. “It’s my staff. I have very caring, competent and professional staff, all of whom are licensed agents. They know what they’re doing.”

MN Valley Business • AUGUST 2021 • 17

Maya Jones works at Ace Hardware in Lake Crystal.

Hardware hotspot Lake Crystal supports Ace store By Dan Greenwood Photos by Pat Christman

Hardware franchise in St. James, acquiring he long-running and family-owned the number for the company’s corporate James Brothers Hardware Store in office in Chicago, which supplies inventory Lake Crystal closed in the late ‘90s, for independently owned and its successor closed franchises across the around 2010. country That’s when Dan Buss, “I talked to this guy for a long-term employee at a couple weeks and he Fastenal in Mankato, an LC ACE HARDWARE industrial equipment said, ‘we’ll start looking at 106 S. Main St., Lake Crystal supplier, began to the demographics and do 507-726-2829 consider opening up a the forecasts and Facebook: LC Ace Hardware new hardware store in projections,’” said Buss. town to fill that void. But there was a gap in A few years ago, Buss communication. His was driving back from a work assignment in contact at Ace Hardware in Chicago thought Sioux Falls when he stopped by the Ace Buss was calling from Crystal, a Minneapolis

Feature

18 • AUGUST 2021 • MN Valley Business

Dan Buss manages the LC Ace Hardware store on Lake Crystal’s Main Street. suburb. When he found out Buss meant Lake Crystal, his contact said they couldn’t pursue a store there, someone else in town had beaten him to it. That’s when Buss got a call from Kevin Gaulrapp, who had previously owned a grocery store in Lake Cr ystal, where the current hardware store is located. “He goes, ‘can you meet me at the old grocery store? There’s something I want to talk to you about,’ ” Buss recalled. “I came up here and he goes, ‘did you ever talk to a guy from Ace named Pete Beardsley?’ ” I’m like, ‘yeah.’ He goes, ‘so have I. I’m looking for a manager, I’m bringing a hardware store to this town.’” “It just clicked from there,” said Buss. “He’s helped me ever since day one and we’ve had a great working partnership.” The two became business partners, traveling to the Ace headquarters in Chicago to work

out the details and to discuss what their vision and niche was for the store. Buss said Ace provided them with everything they needed to get the store up and running. “They did all the research for us in their cubicles in Chicago and knew how many people were in town and what the demographic was,” Buss said. “Obviously, we’re a rural farm community and they supported us with how they would like to see it laid out. We had our input and tweaked a few things and still always are, but those guys know exactly what they’re doing.”

Strong support

Even before they opened in the summer of 2016, Buss said Lake Cr ystal’s residents peppered them with questions and requests. When were they opening? What would be in stock? Could they stock this or that?

Before they opened that July, Buss and Gaulrapp held an open house with about 100 people showing up. “It went over pretty well, and people were like, ‘Wow. This is exactly what we need,’” Buss said. “I had a whiteboard up front by the door that said, ‘what would you like to see here?’ The white board was chock full of requests. “I was like, ‘Sweet. There’s interest guys!” One of the first people they hired was Juli McDougall, who had plenty of experience working at her family’s long-running hardware store in town. “We used to own James Hardware,” McDougall said. “My great-grandparents, grandparents and my mom and dad and I ran it. It goes all the way back – they opened it in the 1800s.” “I’ve been working here since we opened,” she said. “I know

MN Valley Business • AUGUST 2021 • 19

where everything is, and I know a lot about the hardware stuff,” she said. “I enjoy the people, I know a lot of the older ones, and it’s fun getting out.” Since the store opened, their mission statement – to grow with the community by providing friendly, helpful ser vice with quality solutions – has been a mantra for how Gaulrapp and Buss run the store. In recent years, Buss has taken over the daily operations, while Gaulrapp handles the finances and balancing the books from his

cabin in northern Minnesota. Being a business owner in a small town like Lake Crystal has its advantages too – Buss and his staff know customers personally, what they are looking for and when throughout the year. “I know who comes in once a month to get her hearing aid batteries,” Buss said. “I know who takes the 60-watt light bulbs in town. I’ve had my boys that are 13 deliver softener salt to people. The elderly women come in and ask me how my parents are doing and wanting to make sure

everything is okay at home and then they say, ‘Can you help me find a light bulb for my microwave?’” When the area was hit by a blizzard this past winter – shutting down Highway 60 – Ace Hardware became a lifeline to not just locals in need of generators to power the heat, but for Native American horseback riders on their annual trip from South Dakota to Reconciliation Park in Mankato. “The highway closed down and they were trapped here,” Buss said. “They were looking for tarps, straw and things to keep warm. They set up camp right at the park on Main Street. The next morning, they came in like it was no big deal.” The power outages from that storm affected Lake Crystal Ace Hardware directly, making their tills and computers inoperable, but they remained open, handling transactions on paper until the power came back on. “It’s the part I enjoy – people come in with these problems and we’ll try to troubleshoot and get someone’s heat back on,” Buss

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20 • AUGUST 2021 • MN Valley Business

The Ace Hardware store opened in the location of a former grocery store on Lake Crystal’s Main Street. said. “Everybody knows me in town so if it’s an after-hours call it’s no problem at all or during harvest or the cold snaps when the city guys need something, we’ll be there.”

Buss is also a kids baseball coach, and with a social connection to pretty much everyone who walks in the door, it’s common for residents to stop in just to chat and see how things are going. “Probably once a day somebody

comes in who doesn’t plan on buying anything, they just want to ask me how I’m doing, how my parents are doing, or how the game went last night,” Buss said. “I’ve got some great support in this town.” MV

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MN Valley Business • AUGUST 2021 • 21

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Business and Industry Trends ■

Energy

Non Fossil fuels 21% of energy consumption

Fossil fuels — petroleum, natural gas, and coal — accounted for 79% of total U.S. energy consumption in 2020. About 21% of U.S. energy consumption in 2020 came from nonfossil fuel sources such as renewables and nuclear—the highest share since the early 1900s. During 2020, responses to the COVID-19 pandemic and other economic factors significantly reduced energy use in the United States. The decline in U.S. energy consumption last year was the largest annual decrease on record. Almost all of the decline came from less consumption of fossil fuels, especially petroleum used for transportation and coal used for electricity generation. Among U.S. nonfossil fuel energy sources, renewable energy consumption increased slightly. Increases in consumption of renewables used for electricity generation, including wind and solar energy, were partially offset by declines in biofuel consumption in the transportation sector. Petroleum has been the mostconsumed energy source in the United States since surpassing coal in 1950. U.S. petroleum consumption remains below its 2005 peak, and in 2020. U.S. coal consumption fell to the lowest level in 116 years. U.S. coal consumption has fallen by more than half since its peak in 2005.

Mankato | Mapleton

507.345.3606 22 • AUGUST 2021 • MN Valley Business

Fossil fuel use plummeted

In 2020, consumption of fossil fuels in the United States fell 9% from 2019 and the lowest level since 1991.

Retail/Consumer Spending Vehicle Sales Mankato — Number of vehicles sold 913 1,198

1500

- 2020 - 2021

1200 900 600

Last year marked the largest annual decrease in U.S. fossil fuel consumption in both absolute and percentage terms since at least 1949. Economic responses to the COVID-19 pandemic in 2020 drove much of the decline. The United States also had relatively warmer weather in 2020, which reduced demand for heating fuels.

Electricity sales increase

Retail sales of electricity in the United States will increase by 2.3% in 2021 after falling by 3.9% in 2020. The largest increase in consumption will occur in the residential sector, where we forecast retail sales of electricity will grow by 2.8% this year. This growth is primarily a result of colder temperatures in the first quarter of 2021 compared with the same period in 2020. Much of the forecast increase in electricity consumption in the commercial and industrial sectors reflects improving economics.

Electric generation

The share of electric power generation produced by natural gas in the United States will average 36% in 2021 and 35% in 2022, down from 39% in 2020. The forecast share for natural gas as a generation fuel declines in response to our expectation of a higher delivered natural gas price for electricity generators, which is forecast to average $4.09/MMBtu in 2021 compared with an average of $2.39/MMBtu in 2020. As a result of the higher expected natural gas prices, the forecast share of generation from coal rises from 20% in 2020 to 23% this year but falls to 22% next year. New additions of solar and wind generating capacity support expectations that the renewables share of U.S. generation will rise from 20% in 2020 to 21% in 2021 and to 23% in 2022. The nuclear share of U.S. electricity generation declines from 21% in 2020 to 20% in 2021 and to 19% in 2022 as a result of retiring capacity at some nuclear power plants.

CO2 emissions up

In 2021,forecasted energy-related CO2 emissions will increase about 6% from the 2020 level as economic activity increases and leads to rising energy use. Energy-related CO2 emissions will also rise in 2022, but by a slower rate of 2%.

300 0

Source: Sales tax figures, City of Mankato Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.

Sales tax collections Mankato (In thousands)

- 2020 - 2021 $361,041 $485,064

600 500 400 300 200 100 0

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato

- 2020 - 2021

70000

$16,939 $37,187

52500 35000 17500 0

Source: City of Mankato

Mankato food and beverage tax - 2020 - 2021 175000 140000 105000

$30,747 $62,657

70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business • AUGUST 2021 • 23

■

Agricultural Outlook

By Kent Thiesse

Challenges with marketing grain

any farm operators will tell you that grain marketing decisions are one the hardest parts of farming. This is especially true during times of highly volatile markets such as have been occurring in recent months. Earlier this year, the futures trading limits on the Chicago Board of Trade (CBOT) increased to $.40 per bushel for corn and $1.00 per bushel for soybeans. This can result in wide swings for both current grain market cash prices and “new crop” prices that are being offered for the 2021 corn and soybean crop. Both corn and soybean prices rose significantly in late 2020 and early 2021, which has improved the overall profitability projections for Upper Midwest grain producers for 2021. The rise in both the CBOT prices and the local cash grain prices have been driven by a combination of grain stocks adjustments by USDA, lower than anticipated U.S. corn and soybean production in 2020, lower than expected 2021 crop acreage, and very strong export demand for both commodities. In fact, some analysts have suggested that both corn and soybean supplies for end users in portions of the U.S. could get very tight by late Summer this year before 2021 commodities are available. The growing drought area in the Western Corn Belt and some production reductions in South America have also added to the somewhat “bullish” nature of the commodity markets in recent months. Nearby CBOT corn futures, which affect the cash corn prices, were trading just above $4.00 per bushel in early November of 2020, before rising to above $5.00 per bushel by mid-January of 2021, and then reaching levels above $7.00 per bushel by mid-May. Since that time, nearby corn futures have basically traded in a sideways to downward pattern, with conservable volatility from day-to-day. The nearby CBOT corn futures had declined to just above $5.30 per bushel by mid-July, which is almost a $2.00 per bushel drop in the corn futures market in a twomonth period since mid-May. Local grain elevators, ethanol plants and processing plants generally set their bid prices based on the CBOT futures price for a corresponding month. The difference between the local cash price being offered in a given month and the closest CBOT futures price is known as “basis”. The basis levels for both cash corn and soybeans have been at fairly tight levels for several months. In fact, there has been a strong positive basis for corn in the past few months at many processing plants and local elevators in the

24 • AUGUST 2021 • MN Valley Business

region. The soybean basis has also been at positive levels from time-to-time. This situation does not occur very frequently in Southern Minnesota. For example, basis levels for 2020 corn that is still being sold has been above the corresponding CBOT futures prices during most of May, June, and early July in Southern Minnesota, reaching as high as a positive $.50 to $.80 per bushel. Soybean basis levels at regional processing plants has been positive by $.20 to $.30 per bushel on many days. In the past five years (2016-2020) prior to 2021, similar basis levels in May and June in Southern Minnesota for corn ranged from $.15 to over $.20 per bushel under CBOT prices. Similarly, Soybean basis during the late Spring and early Summer months during those years ranged from $.40 to $.60 per bushel under CBOT futures prices at processing plants and an even wider basis at local grain elevators. The last time there was an extended positive local basis in Southern Minnesota, such as we are seeing in 2021, was in the late Spring and early Summer in both the drought year of 2012 and again in 2013. However, in both years the positive basis levels had disappeared by mid-late Summer, returning to more typical basis levels for the region by the time the crop was harvested. It is important for producers to remember that tight basis levels at local grain elevators and processing plants are mostly driven by local demand for corn and soybeans. Once that demand is met, basis levels tend to widen back to more typical levels. Paying attention to basis levels and understanding the factors that affect basis can play a big part in the success of a farm grain marketing plan. Generally speaking, when there is a positive or extremely tight basis levels for cash corn and soybean, such as has existed in recent months, farmers should look to take advantage of those opportunities to market any remaining unpriced corn or soybeans that are still in storage. The nearby CBOT corn or soybean futures price could stay steady but if the basis at the local grain elevator or processing plant widens by $.50 per bushel, the cash price to the farmer will be $.50 per bushel less than they could have received. This widening of the basis generally occurs as the season progresses closer to harvest, especially in an average to above-average production year in a given area. While to a nonfarmer, $.50 per bushel widening of the basis may not sound that significant, that amount represents $50,000 on a grain bin with 100,000 bushels of

unpriced corn. This may have made up a considerable portion of the profit margin for the 2020 corn crop. A significant number of farmers had already sold all of their 2020 soybeans and most of their corn prior to the rapid rise in both cash corn and soybean prices in the Spring and early Summer of 2021. In early Summer of 2020, “new crop” prices were near $3.00 per bushel for corn and $8.25 per bushel for soybeans. In addition, there was a lot of uncertainty in the grain markets due to the ongoing Covid pandemic, sporadic export markets, and potential political changes at the federal level. So, when cash soybean prices reached $9.00 to $10.00 per bushel after harvest, which was the highest local cash price in recent years, many farmers in Southern Minnesota sold all of their 2020 soybean crop. Similarly, when the cash corn price in 2020 went from below $3.00 per bushel in mid-summer to over $4.50 per bushel by early January of 2021, many farmers sold all or a significant portion of their 2020 corn crop. Farmers that were fortunate enough to still have unpriced 2020 corn stored on the farm this Spring have been able to sell their corn at the increased prices in recent months. However, some 8 are still holding off on corn sales, as they farmers continue to wonder how high corn prices might go before6 there is a significant market correction. For many farmers, the major marketing focus after 4 has been planted is to lock-in prices on the the crop corn and soybeans being grown in 2021. The “new crop” 2CBOT December corn futures rose from near $4.50 per bushel in mid-January to near $6.00 per bushel 0 by early May, before declining to near $5.25 J byF early M July. A MLocal J ethanol J A plants S O and N D per bushel grain elevators in Southern Minnesota were offering forward contract corn prices for the 2021 crop above $5.50 per bushel in mid-May, as well as a couple of additional times during June. The bids for 2021 new 8 crop corn in Southern Minnesota had declined to 125$5.00 per bushel by early July. In recent weeks, below 6 there105 have been several daily swings both up and down of $.20 to $.40 per bushel in nearby corn futures 4 prices, 85which can make day-to-day grain marketing decisions very difficult at the farm level. 2 65 Prices for 2021 CBOT November soybean futures, which are used to determine local cash bids for 45 0 at grain elevators and processing plants, soybeans J F M A M J J A S O N D have 25 also improved substantially in recent months. F M opened A M theJ year J trading A S between O N D NovemberJ futures $11.00 to $12.00 per bushel in much of January and February, before rapidly rising to a peak of over $14.00 per bushel by early May. Since that time, November soybean futures basically have traded 125 between $13.00 to $13.75 per bushel until early July; 105 just as with corn, there has been a lot of however, volatility in the “new crop” soybean prices from day85 to-day. Forward contract bids for 2021 soybeans at processing plants in Southern Minnesota rose above 65 $12.00 per bushel by early March and continued to 45 to near $14.00 per bushel by early May, increase before reaching a price near $13.50 per bushel in 25 early July. J F M A M J J A S O N D In addition to the other grain marketing factors that a farmer must consider, weather and production are also part of grain marketing decisions. A producer

Agriculture/ Agribusiness Corn prices — southern Minnesota

(dollars per bushel)

— 2020 — 2021

$6.43

2 0

$2.98

Source: USDA

Soybean prices — southern Minnesota — 2020 — 2021 8 20 125 16 6 105 12 4 85

(dollars per bushel)

$13.54

8 65 2 $8.11 4 45 0 0 J F M A M J J A S O N D 25 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Iowa-Minnesota hog prices

185 pound carcass, negotiated price, weighted average

— 2020 — 2021

20 125 25 16 105 22 12 $110.16 85 19 8 $30.82 65 16 4 45 13 0 J F M A M J J A S O N D 25 10 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Milk prices

Minimum prices, class 1 milk Dollars per hundredweight

— 2020 — 2021 25 22

$16.66

19 16

$12.30

13 10

20 25 16 22 12 19 8 16 4 13 0 J 10

Source: USDA. Based on federal milk orders. Corn and soybean prices are for rail delivery points in Southern Minnesota. Milk prices are for Upper Midwest points.

C. Sankey

MN Valley Business • AUGUST 2021 • 25

25 22 19 16 13 10

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

- 2020 - 2021 (in millions)

8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0

- 2020 - 2021 (in millions)

$2,444 $4,245,533

25000000

10000000 5000000 J

Source: City of Mankato Information based on Multiple Listing Service and may not reflect all sales

Existing home sales: Mankato region - 2020 - 2021 (in thousands) 263

300

Median home sale price: Mankato region - 2020 - 2021 (in thousands)

300

202

$190,000 $214,000

240

180

120

0 J

Source: Realtors Association of Southern Minnesota

Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

Includes single family homes attached and detached, and town homes and condos

Housing starts: Mankato/North Mankato

— 2020 — 2021

- 2020 - 2021

5.5

4.9

4.3

3.7

3.0%

2.9% A S

3.1 2.5

$7,139,456

15000000

Source: City of Mankato

$10,296,543

20000000

8 O

Source: Freddie Mac

Source: Cities of Mankato/North Mankato

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100 Warren Street, Suite 708, Mankato, MN 56001

507-625 507 625--4606 625

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26 • AUGUST 2021 • MN Valley Business

likes to make sure that they will have the bushels to sell before they forward contract the grain from the crop in the field. This can be difficult in a year such as 2021, when very hot, dry conditions during the month of June were causing drought concerns that could potentially have a big impact on crop yields. This made it difficult for farmers to lock-in prices on a high percentage of the anticipated 2021 production during a period when we had some of our best “new crop” corn and soybean prices in many years. Most farmers try to have a grain marketing plan with target prices and sales in a given crop year, while utilizing crop insurance coverage to protect the bushels that are forward priced. Grain marketing decisions vary widely among farm operators, which can have a big impact on “bottom-line” farm profitability.

CONSTRUCTION MANAGEMENT GENERAL CONTRACTING DESIGN-BUILD

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Kent Thiesse is farm management analyst and senior vice president, MinnStar Bank, Lake Crystal. 507-381-7960); kent.thiesse@ minnstarbank.com

Gas Prices 5

Gas prices-Mankato

— 2020 — 2021

54 43

$2.98

32 21 10 0

1.93

$59.30

-13.6%

Ameriprise

$264.86

$247.27

-6.6%

Best Buy

$117.10

$111.84

-4.5%

Brookfield Property

$18.73

$18.86

+0.7%

Crown Cork & Seal

$99.59

$102.17

+2.6%

Consolidated Comm.

$8.08

$8.72

+8.0%

Fastenal

52.78

$51.67

-2.0%

General Mills

$63.72

$59.67

-6.3%

Itron

$95.63

$96.80

+1.2%

Johnson Outdoors

$122.65

$117.43

-4.3%

$203.73

$195.40

-4.0%

Target

$230.89

$243.83

+5.6%

U.S. Bancorp

$60.54

$55.75

-7.9%

Winland

$4.60

$4.30

-6.5%

Xcel

$70.12

$66.41

-5.3%

32 $1.98

$68.66

$2.99

Archer Daniels

Percent change

July 6

— 2020 — 2021

June 8

Gas prices-Minnesota

Stocks of local interest

0Source: GasBuddy.com J F M A

C. Sankey

MN Valley Business • AUGUST 2021 • 27

■

Minnesota Business Updates

■ Grills, luggage at Best Buy

with the same period a year ago. Fastenal’s decision to roll out digital bins last year is also paying dividends in 2021. Fastenal equipped its industrystandard blue bins with infrared technology, scales and RFID, creating the capability to measure how much product is left in each bin for customers. Fastenal also created a new tool in Fastenal Managed Inventory that was based on digital capabilities. Those digital capabilities turn the bins into devices that provide information and data to Fastenal’s customers.

Best Buy wants to sell you a new outdoor grill for summer cookouts, a backpack for a return to the office, and luggage for future vacations as it extends its product options beyond electronics. The chain announced it will sell grills, outdoor firepits and patio sets from brands such as Weber and Traeger online and at a handful of its approximately 1,000 stores. Best Buy will also offer a collection of Tumi laptop bags and luggage online. Best Buy’s sales have surged over the past year as consumers spending more time at home supercharged demand for electronics. But the chain is expecting a slowdown this year and is searching for new ways to draw customers. “We expect shopping behavior will evolve as customers are able to spend more time on activities like eating out, traveling and other events,” Best Buy chief financial officer Matt Bilunas said.

■ 3M loses earplug trial A federal jury found that 3M Co failed to provide adequate safety warnings for its combat earplugs and that a U.S. Army veteran who said he developed tinnitus after using them sustained $1.7 million in damages, the second such verdict against the company. The ultimate amount that 3M would have to pay to Lloyd Baker will be smaller, as the jury in Pensacola, Florida, found the company only 62% liable. Jurors found that 3M failed to provide adequate warnings for the earplugs, according to the plaintiffs’ lawyers, Bryan Aylstock of Aylstock Witkin Kreis & Overholtz, Shelley Hutson of Clark, Love & Hutson and Christopher Seeger of Seeger Weiss. “Two juries have now determined that 3M knew their earplugs were defective, yet they allowed our servicemembers

■ Fastenal doing well Thanks to its large global supply chains, Fastenal was able to quickly pivot to finding and selling personal protection equipment last year, which gave its bottom line a boost. In May, Fastenal saw its safety sales drop by 44% while fastener sales increased by 22% and “other” improved 12%. The Winona, Minnesota-headquartered company reported first-quarter sales of $1.4 billion, a 3.7% increase compared

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major May Industry 2020 2021 Construction Manufacturing Retail Services Total*

235 886 436 2,434 3,991

Local non-farm jobs Percent change ‘20-’21

143 346 113 468 1,070

Construction

126000 126000 Manufacturing

Retail 113000 Services 113000 Total*

May 6,687 18,384 11,819 58,413 95,303

2021 3,697 3,844 3,079 12,045 22,665

3500

124,389

2800

-39.1% -60.9% -73.4% -80.7% -73.2%

126000

2100 1400

113000

700 100000

Minnesota initial unemployment claims 2020

132,782

139000

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services. *Categories don’t equal total because some categories not listed.

Major Industry 139000 139000

- 2020 - 2021

Nine-county Mankato region

Minnesota Local non-farm jobs 12000 3500 3500 10000

-44.7% -79.1% -73.9% -79.4% -76.2%

8000 2800 2800 6000 2100 2100 4000 1400 1400 2000

Services consist of administration, educational, health care and social 100000 assistance, food andJ otherF miscellaneous services. M A M J J A S O 100000 J don’t F equal M total A because M Jsome Jcategories A not S listed. O N *Categories

28 • AUGUST 2021 • MN Valley Business

700 D

300000

2,774 2,929

240000 180000 120000 60000

700 0 0

- 2020 - 2021

(in thousands)

Percent change ‘20-’21

F M

M A A M

M J

J J

J A

A S

S O

O N

N D

then-President Donald Trump tapped him to lead the U.S. Department of Agriculture, the Washington Post reported. ADM, one of the world’s largest grain traders and food companies, had paid more than $5.5 million for the South Carolina property six years earlier, the Post said. ADM spokesperson Jackie Anderson told the Post the company did not sell the plant at a discount. ADM began negotiations with Perdue’s former company, AGrowStar, in 2015 before Trump was elected, she said. ADM did not respond to requests for additional comment.

to suffer these life-altering injuries,” they said in a statement. Baker’s case was the third over the earplugs to go to trial. The first trial resulted in a verdict of $7.1 million for three plaintiffs in April, while the second ended in a victory for 3M in May. 3M is facing more than 230,000 claims by veterans and service members over the earplugs, known as Combat Arms Earplugs Version 2, in the Florida court, in the largest consolidated federal mass tort in U.S. history.

■ U.S. Bank’s digital business jumps

■139000 Cargill wins suit

In February 2020, U.S. Bancorp executives gathered in Reno, Nev., to discuss the future of banking, including how quickly they expected digital services to evolve. Then the coronavirus pandemic came along, forcing them and other bankers to curtail branch activities and sparking a new burst in digital banking. By February this year, nearly 80% of customer transactions at U.S. Bank were digital and nearly 60% of active customers did most of their banking that way. “If you had told me that we would be at this stage 15 months later, I would have thought that would be impossible,” Tim Welsh, the Minneapolis-based bank’s president of consumer and business banking told the Star Tribune. “I thought139000 it was a five-year journey.”

3500

The U.S. Supreme Court threw out a lawsuit accusing 2800 Cargill Inc and a Nestle subsidiary of knowingly helping 126000 2100 perpetuate slavery at Ivory Coast cocoa farms, but sidestepped a broader ruling on the permissibility of suits accusing 1400 American 113000 companies of human rights violations abroad. The 8-1 ruling authored by Justice Clarence Thomas 700 reversed a lower court decision that had allowed the lawsuit, 100000 on behalf of former child slaves from Mali who 0 brought J F M A M J J A S O N D J worked at the farms, filed against the companies in 2005 to proceed. The court ruled the claim could not be brought under the Alien Tort Statute, which lets non-U.S. citizens seek damages in American courts in certain instances, because the plaintiffs 3500 12000 139000 3500 did not show that any of the relevant conduct took place 300000 2800 the United States. within 240000 2800 10000 126000 “Nearly all the conduct that they say aided and abetted 2100 ■ ADM sale questioned 8000 126000 2100 forced labor - providing training, fertilizer tools, and cash to 180000 Archer Daniels Midland sold a grain storage plant worth overseas 6000 farms - occurred in Ivory Coast,” Thomas wrote. 1400 120000 millions113000 of dollars for $250,000 to Sonny Perdue weeks after 1400 4000 113000

700

100000 100000 J F

J M

M J

J A

J S

A O

S N

O D

10,275 4,275

180000 120000 60000 J F M A M M A M J J M A M J J

J A A

J S S

A S O N O N D O N D

286,000 111,722

240000 180000 120000 60000 0

J JA

J JS

A AO

S N S

O D O

N N

D D

(includes all of Blue Earth and Nicollet Counties) 300000 240000

March 180000 Unemployment rate 120000 Number of non-farm jobs Number of unemployed

60000 J

0 F

J M

F M A A M J

M J

J A

2020

2021

8.2% 55,735 4,956

3.2% 58,233 19,050

J S

A O

S N

O D

Unemployment rates Counties, state, nation County/area

- 2020 - 2021

M MJ

Mankato/North Mankato Metropolitan statistical area

240000

300000

D 0

300000

Minnesota number of unemployed

- 2020 - 2021

Nine-county Mankato region

60000

Employment/Unemployment

F M A A M J

Local number of unemployed 12000 12000 3500 10000 10000 8000 2800 8000 6000 6000 2100 4000 4000 1400 2000 2000 700 0 0 J F 0 J F

700 2000 0 0 J F M A J F JM FA M M AJ

Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan Minneapolis/St. Paul Minnesota U.S.

May 2020

May 2021

8.6% 6.9% 8.6% 8.7% 6.9% 7.3% 6.9% 8.5% 5.9% 10.1% 11.1% 13.0%

3.4% 2.9% 4.0% 3.3% 3.6% 2.9% 3.3% 4.0% 3.1% 3.8% 3.7% 5.5%

Source: Minnesota Department of Employment and Economic Development C. Sankey

MN Valley Business • AUGUST 2021 • 29

Sponsored by the Carl & Verna Schmidt Foundation

How to deal with Bitcoin’s extreme volatility By Kevin Voigt | NerdWallet

ryptocurrencies were all the rage earlier this year, with the prices of several coins surging to record highs and crypto exchange Coinbase making its public offering. Crypto enthusiast and Tesla CEO Elon Musk tweeted rocket and moon emoji, boosting the rallying cry “to the moon!” And investors big and small jumped into the market. But after the spot price of bitcoin, the most popular coin, approached $65,000 in April, the boom turned bust: By early June, its value had dropped by nearly 50%. It’s likely that many of those new crypto investors felt the whiplash. “It is very interesting that every time that bitcoin goes up, it gains all the hype, people get excited,” says Kiana Danial, author of “Cryptocurrency Investing For Dummies.” But Danial adds that the last person who buys when the price is at the top “is the person who’s going to panic when the price inevitably drops.” So, what do you do when your digital assets like bitcoin crash? We asked several cryptocurrency experts to get their thoughts.

Cr yptos are volatile

For those who have been investing in cryptocurrencies for years, dramatic gains and losses are nothing new. For example, bitcoin recorded a previous record high of nearly $20,000 in December 2017, but by December 2018 was trading below $3,500. As bitcoin gains adoption, “the up moves and down moves can be breathtaking. Taking the long-term view puts these moves in perspective,” says Greg King, founder and CEO of Osprey Funds, an investment firm specializing in digital assets. “For example, even though bitcoin was down 50% in April through May of this year, it is up 25% from those lows and still up 100% from Thanksgiving last year.” (Note: These comments were made on June 17. Who knows where the bitcoin price is by the time you read this.) For seasoned bitcoin investors, the lower prices were welcome. “Then, you would actually see the drop of value in bitcoin as an opportunity to purchase,” Danial says.

Know your risk tolerance

When crypto is crashing, someone who’s been intrigued from the sideline might think this is the time to get in and “buy low.” But King recommends asking yourself two questions before deciding to invest in

30 • AUGUST 2021 • MN Valley Business

bitcoin or other cryptos. “Consider whether an 80% to 90% down move in your crypto holdings would cause you to lose sleep at night or sell,” he says. “If the answer to either of those is yes, don’t invest.” “Any asset has ups and downs — cryptocurrency has more ups and downs because of the amount of hype and FOMO involved,” Danial adds, alluding to a fear of missing out, “and the fact that people actually don’t know what it is. They buy it because they heard somebody talk about it … they are taking unmeasured risks. “Ask yourself what amount of money you can actually afford to lose, because any investment has inherent risk,” she says. “If you are selecting your assets wisely and you have concrete reasons why you’re investing in it, you shouldn’t be swayed when the markets drop, and you will stay the course.”

Diversify investments

Crypto experts suggest refraining from “all in” moves when deciding to invest. “Avoid buying large amounts of cryptocurrency all in one shot,” says Jake Yocom-Piatt, co-founder of Decred, a cryptocurrency with a $1.5 billion market share. “If you buy a whole bunch at once and the price drops, psychologically that’s very difficult for people.” Instead, he suggests considering a common strategy from investing in stock markets: dollar-cost averaging. “Buy a small amount every month and then just keep doing it.” Personal finance experts often say that any single asset, be it a specific coin or company’s stock or something else, should only be the sprinkling atop the parfait of an otherwise vanilla portfolio of stocks, bonds and mutual funds that mean to help you achieve your long-term financial goals. “If crypto is the only asset you are investing in, you are probably taking on way too much risk,” Danial says. MV

Sponsored by the Carl & Verna Schmidt Foundation

Financial vital signs to monitor right now By Nerdwallet

mid-year financial review is often a good idea. This year, it’s almost essential. With people going back to offices, travel resuming and Congress making significant changes to various laws affecting your finances, consider taking some time to check in on your money. You might be able to make some smart moves to reflect the new realities.

This year, you’re also allowed to make midyear changes to your contributions to either account, something that normally requires a change in life circumstances such as marriage or having a child. Your employer must opt in to these changes, but if it has and you can increase your contributions, you could save significantly on taxes.

Budgeting

Last year airline, hotel and rental car companies softened the rules for their loyalty programs to reflect pandemic travel restrictions. Many extended the expiration deadlines for points, miles and free hotel night certificates. But the pause on expirations won’t last forever. Check your rewards programs and make plans to use your rewards before they disappear.

See where your money is going now. Using a budgeting app or taking a close look at recent bank and credit card statements can help. Then think about expenses you may face in the near future. If you’re using your car more, for example, you might already be paying more for gas and insurance, but you also could face higher costs for maintenance or repairs. If you have kids, you might plan for backto-school costs, sports equipment and activity fees. Vacations, travel, weddings and other celebrations may need to be budgeted for, as well. It can make sense to trim some costs so you can afford these resurgent expenses. One possibility: Rotate your streaming ser vices and other subscriptions. These may have sustained you during lockdowns, but you could put some on pause now to save money while you continue to enjoy others. Perhaps you have more income: You’re back to work after being unemployed, or you’re a parent who’s getting child tax credit checks.

Debt forbearance

Forbearance of federal student loans is scheduled to end this fall, with monthly payments resuming in October. If those payments would be a hardship, contact your lenders to see if income-driven repayment plans or other measures would help. If you requested forbearance on your mortgage payment or other debt, that has an expiration date, as well. Debt that’s in forbearance isn’t forgiven, so you’ll typically need to plan to make up the payments you missed. Check with your lender about your options.

Flexible savings accounts

Congress more than doubled how much employees can contribute to flexible spending accounts for child care in 2021. Workers can put in a maximum of $10,500, up from $5,000 in 2020. The limit for health care FSAs remains $2,750.

Frequent traveler programs

Health insurance

If you buy your own insurance, you may get a better deal on the Affordable Care Act exchanges now that Congress has expanded the subsidies. If you don’t already have ACA coverage, there’s currently a special enrollment period that ends Aug. 15. If you get unemployment benefits at any point during 2021, you can qualify for a zeropremium comprehensive policy. COBRA coverage to extend an employer health insurance plan is also free from April to September.

Retirement planning

Companies with 401(k)s are now required to let part-time workers contribute if they have worked more than 1,000 hours in one year or 500 hours over three consecutive years. Contact your employer for details. Congress eliminated the age limit for making contributions to IRAs, so you can contribute past age 70 ½ as long as you have earned income such as wages, salary, commissions or self-employment income. Also, the age that typically triggers required minimum distributions from retirement accounts has been moved from 70½ to 72 for people born after June 30, 1949. If you’re feeling generous, though, the age at which you can start making qualified charitable distributions from an IRA remains 70 ½. These withdrawals won’t be added to your income if the distribution is made directly to a qualified charity. MV

MN Valley Business • AUGUST 2021 • 31

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