Smoother ride Auto sales cruising back Also in this Issue: • Carlson-Tillisch at 100 years • KingPin’s Bowling in St. Peter • Pins, needles and bears
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FEBRUARY 2012 • Volume 4, Issue 6
■
18
Special Focus
■
Understanding your liability exposure and protecting your assets through insurance coverage is vital for any small or large business — whether it’s for vehicle fleet insurance or general liability.
■
30
Greater Mankato Growth Greater Mankato finds obvious opportunity in the news the region is adding jobs at an impressive pace. A challenge, however, is ensuring that potential workers are well-trained for the skills employers need.
22
Revved up Mankato auto dealers had a strong 2011 and look for good sales this year. They say pent up demand, low interest rates and a very competitive auto manufacturing sector are drawing customers in.
■
48
Profile: Carlson-Tillisch For 100 years, Carlson-Tillisch Eye Clinic has been helping people see better. The practice, built by multiple generations of the Tillisch and Carlson families, is now led by Dr. John Lach and Dr. Matt Downs.
MN Valley Business • FEBRUARY 2012 • 3
Features
F E A T U R E S
D E P A R T M E N T S ■
From the Editor................................. 6
■
Business informer............................. 8
■
Joe Spear: Mankato’s agglomerations will grow ■
Vehicle, retail, construction trends in the area ■
Departments
■
Construction, real estate trends.....11 Building permits, housing starts, home prices, interest rates.
■
Retail trends....................................12 Auto sales, retail sales and hotel business
■
Agriculture Outlook.........................14 Kent Thiesse: MF GLobal mess hurts farmers
■
■
Agribusiness trends........................15 Area commodity prices
Business updates............................16
Thin Film is ‘Turnaround of the Year,’ Eide Bailly merges, Best Buy defends against critics, and more.
■
The area’s biggest challenge and opportunity
Greater Mankato Growth Member Activities...........................32 Business Before and After Hours, Annual Meeting
Job trends.......................................10 Regional, state unemployment information
Greater Mankato Growth................30
■
Greater Mankato Growth Convention and Visitors Bureau ....35 Mount Kato a big draw for winter enthusiasts
■
Regional Outlook.............................38 Jack M. Geller: Foreign Trade Zones
Up & Coming...................................40 Pins and Needles Alteration shop
■
All in the Family..............................44 Scott and Brittney Anderson, KingPins bowling
■
Business memos/ Company news................................50 Keep up on who’s moving up, what’s new ■
Business Commentary....................20 Eric Harriman: City Center Partnership
Smoother ride Auto sales cruising back Also in this Issue: • Carlson-Tillisch at 100 years • KingPin’s Bowling in St. Peter • Pins, needles and bears
4 • FEBRUARY 2012 • MN Valley Business
On the Cover: GM Joe Radosevich (left) and New Car Sales Manager Ragy Elshaboury of the Kia of Mankato dealership, which opened in the spring of 2010.
Mankato’s agglomerations will grow FEBRUARY 2012 • VOLUME 4, ISSUE 6 PUBLISHER
James P. Santori
EXECUTIVE EDITOR
Joe Spear
ASSOCIATE EDITOR
Tim Krohn
CONTRIBUTING WRITERS
PHOTOGRAPHERS
From the Editor
GRAPHIC DESIGNER
Jack M. Geller Sara Gilbert-Frederick Eric Harriman Tim Krohn Jean Lundquist Kent Thiesse Marie Wood Pat Christman John Cross Jenny Malmanger
PAGE DESIGNER
Tricia Gieseke
ADVERTISING MANAGER
David Habrat
ADVERTISING SALES
Cheryl Olson
ADVERTISING ASSISTANT
Barb Wass
ADVERTISING DESIGNERS
Seth Glaser Sue Hammar Tony Helget Liz Klukas Christina Sankey
CIRCULATION DIRECTOR
Denise Zernechel
MN Valley Business is published monthly at 418 South Second St., Mankato, MN., 56001. To subscribe, call 1-800-657-4662 or 507-625-4451. $19.95 for 12 issues. For editorial inquiries, call Tim Krohn at 344-6383, or e-mail tkrohn@mankatofreepress.com. For advertising, call Cheryl Olson at 344-6390, or e-mail mankatomag@mankatofreepress.com.
Agglomeration is the term they used in business school that describes some of what is happening to the Mankato regional economy. It’s a fancy word for the coming together of similar businesses in one place. The term is typically used in the context of manufacturing. A maker of trucks would locate near a maker of tires, for example, reducing transportation costs and making connections easier. A maker of computer chips would locate near a computer manufacturing company. But it works in the retail context too. We have a new Marriott Courtyard hotel building on the footprint of River Hills Mall. We have more and more bars and restaurants and hair salons locating on the Mankato hilltop where a lot of the weekend shopping traffic ends up. Agglomerations are expected to provide savings and benefits to firms who cluster together. Business activity becomes an upward spiral. The more businesses who come together in one place, the faster all business grows. Concentrating retail traffic in one place may increase competition but it reduces costs for similar businesses. They don’t have to search around for traffic in different locations or by opening multiple stores if it doesn’t make sense. We see agglomeration happening in North Mankato as well. The city’s Northport Industrial Park is now hosting semitractor trailer dealers, truck dealers and repair shops. Just down the road on Highway 14, there is another semi-tractor dealership. All of this fits into another agglomeration that may grow even bigger when the new Wal-Mart distribution center comes to Mankato as there will be hundreds of trucks per day going through Mankato. While it used to be conventional wisdom that manufacturing agglomerations worked best — auto assembly plants were near steel mills — technology and information industries made different agglomerations possible. A base of knowledge and education in Silicon Valley created an agglomeration of computer makers. That can work for Mankato too. The area universities and colleges employ people who may have teaching as their primary job, but acquire knowledge for business and industry as well. While there is some connecting of university knowledge with business practice, it
6 • FEBRUARY 2012 • MN Valley Business
By Joe Spear seems it is not yet fully leveraged. It’s making those connections stronger that could also bolster the region’s growth. This month’s centerpiece story on the auto dealer business in Mankato suggests that particular agglomeration is working quite well. By accounts, all had a very good year in 2011, and some had a record year. It’s positive to see a new auto dealer, Kia of Mankato, coming into a new market and having solid success as well. It suggests there is plenty of room for more players and more business. Mankato Kia manager Ragy Elshaboury said he was blown away by the Mankato market after opening a Kia dealership here in the spring 2010. “I was in (the Kia dealership) St. Cloud before coming here. I was under the impression this was a smaller market and there would be lower sales. It’s the exact opposite,” Elshaboury said. It unusual for a market to expand in major categories of retail. But Mankato’s growth over the last few years has accommodated not only a new major car dealer, but new larger furniture and appliance stores as well. Existing stores are expanding their lines to serve a market that according to the last Census grew 21 percent in the last 10 years. A recent study of regional economies shows Mankato was leading the way of all other regional centers in the state. The 21st Century agglomerations will look different than those of the 20th Century, and if you want to get an idea what they’ll look like, stay close to home. MV Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382.
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Business Informer
Agriculture Harvest up, crop prices fall Farmers and traders saw the price of corn plunge after the U.S. Department of Agriculture’s final report on the 2011 harvest, with increases in U.S. production and a larger-thanexpected figure for surplus stocks. Iowa kept its rank as the top producer with a yield of 172 bushels of corn per acre, ahead of the 2010 harvest yield of 165 bushels per acre. The USDA pegged surplus corn stocks for the 2011-12 season at 846 million bushels, which was well above trade expectations for a decline of 100 million bushels. Final U.S. corn production was pegged at 12.358 billion bushels, up 48 million bushels from the previous USDA forecast, while traders were expecting a drop of nearly 45 million bushels. The USDA also forecast decreases in corn and soybean exports, even as reports have come from South America of a major drought during its summer growing season. The USDA said ethanol production would consume about 40 percent of the 2011 corn crop, an estimate unchanged from earlier reports.
■■■
Consumer spending Sales tax collection up Mankato’s collection of local sales taxes from retailers was up 12 percent in November compared to a year earlier. The city collected $386,400 for the month. The city’s collection of a local food and beverage tax was up just over 6 percent from the previous year, taking in $50,054 in November.
■■■
Energy Oil to rise through 2013 The Federal Energy Administration is making its first estimates on what energy prices will do in 2013. They expects the price of West Texas Intermediate crude oil to average about $100 per barrel this year, $5 per barrel higher than the average price last year. For 2013, prices should continue to rise, reaching $106 per barrel in the fourth quarter of next year. The forecast assumes that U.S. real gross domestic product grows by 1.8 percent in 2012 and 2.5 percent in 2013, while world real GDP (weighted by oil consumption) grows by 2.9 percent and 3.8 percent respectively.
Mild winter saving energy The forecast of average household heating expenditures for all heating fuels has been lowered from earlier forecasts be-
8 • FEBRUARY 2012 • MN Valley Business
cause of mild weather in much of the country. Average household heating oil expenditures are now expected to increase by 4 percent this winter heating season (October 1 to March 31) compared with last winter. In contrast, natural gas and propane expenditures are projected to decline by 7 percent and 1 percent, respectively, and electricity expenditures are 2 percent lower than last winter’s levels.
Gas prices lower than ’11 The regular-grade motor gasoline retail prices to average $3.48 per gallon in 2012, 4 cents per gallon lower than last year, and $3.55 per gallon in 2013. (State taxes vary.) During the April through September peak driving season each year, prices are forecast to average about 5 cents per gallon higher than the annual average.
Plenty of natural gas Natural gas working inventories continue to set new record highs and ended December 2011 at an estimated 3.5 trillion cubic feet, about 12 percent above the same time last year. The average 2012 Henry Hub natural gas spot price forecast for this year is $3.53 per million British thermal units, a decline of almost 50 cents per MMBtu from the 2011 average spot price. Prices will average $4.14 in 2013.
Crude oil supplies to rise Absent a significant oil supply disruption, the recent tightening of world oil markets will moderate this year and resume in 2013. World oil consumption grows by an annual average of 1.3 million barrels per day this year and 1.5 million barrels in 2013.
CO2 emissions staying flat U.S. fossil fuel emissions are projected to remain flat in 2012 and 2013, as increasing emissions from natural gas are offset by declines in other areas.
Renewables to decline After growing 12 percent in 2011, the government expects the total renewable energy supply to decline by 2.3 percent in 2012 as a 13-percent decline in hydropower from the 2011 level offsets growth in other renewable energy supplies. In 2013, renewable energy supply is projected to increase by 2.1 percent. Wood and wood waste is second only to hydropower in terms of the total energy supplied by renewable sources. After declining by 1.6 percent between 2010 and 2011, it is projected to grow in 2012 and 2013 by 1.7 percent and 2.2 percent, respectively. While wind energy has shown robust growth in recent years (24 percent between 2010 and 2011), its growth is projected to slow.
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Initial unemployment claims
Minnesota initial unemployment claims
Business Barometers
Nine-county Mankato region
Major industry
December ’10 ’11
Construction Manufacturing Retail Services Total*
711 348 119 1,549 2,727
Percent change ’10-’11
691 339 78 1,447 2,555
-2.8% -2.6% -9.0% -6.6% -6.3%
2010
2011
130,000
Minnesota non-farm jobs
2,000
110,000
1,000
M
A
M
J
J
A
Local number of unemployed
S
O
N
2010
Nine-county Mankato region
D
2011
0
J
F
2010 2,805.3 2,757.7
M
A
M
J
J
A
2011
S
O
N
D
154,587 208,438
250,000
11,000
2011
Minnesota number of unemployed 2010
6,270 7,944
12,000
225,000
10,000 9,000
200,000
8,000
175,000
7,000 6,000
0% -5.8% -18% -13.7% -7.4%
3,000
120,000
F
10,742 5,968 1,866 8,572 27,148
(in thousands)
127,868 121,146
J
10,747 6,337 2,300 9,937 29,321
Percent change ’10-’11
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.
Nine-county Mankato region
100,000
December ’10 ’11
Construction Manufacturing Retail Services Total*
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.
Local non-farm jobs
Major industry
J
F
M
A
M
J
J
A
S
O
N
November
2010
Unemployment rate
5.3%
4.0%
55,452
57,280
3,158
2,412
2011
Source: Minnesota Department of Employment and Economic Development
10 • FEBRUARY 2012 • MN Valley Business
J
F
M
County/area
(includes all of Blue Earth and Nicollet Counties)
Number of unemployed
150,000
A
Unemployment rates
Mankato/North Mankato Metropolitan statistical area
Number of non-farm jobs
D
Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan Minneapolis/St. Paul Minnesota U.S.
M
J
J
A
S
O
N
D
Counties, state, nation November 2010 November 2011 5.4% 5.5% 7.8% 8.0% 6.3% 5.3% 5.9% 6.6% 6.6% 6.6% 6.6% 9.3%
4.1% 4.6% 5.3% 6.2% 5.1% 4.0% 4.8% 4.9% 5.3% 5.1% 5.2% 8.2% J. Malmanger
Residential building permits Mankato 2010
$10,000
$1,000
$2,000 J
F
M
A
M
J
J
A
S
O
N
D
Source: City of Mankato
$0
J
F
M
A
M
J
J
A
S
O
N
D
Source: City of North Mankato
Existing home sales: Mankato region 2010
2011
250
Information based on Multiple Listing Service and may not reflect all sales
89 105
200
Housing starts: Mankato/North Mankato 2010
Includes single family homes attached and detached, and townhomes and condos
2011
40
1 1
30
150
20
100
10
50 J
F
M
A
M
J
J
A
S
O
N
D
Commercial building permits Mankato 2010
$10,000
0
J
F
M
A
M
J
J
A
S
O
N
D
Source: Cities of Mankato/North Mankato
Source: Realtors Association of Southern Minnesota
(in thousands) $1,380.8 $2,146.0
2011
$8,000
Commercial building permits North Mankato (in thousands) $12,000
2010
2011
$121.3 $136.7
$9,000
$6,000
$6,000
$4,000
$3,000
$2,000 J
F
M
A
M
J
J
A
S
O
N
D
2010
County
2011 4.8%
5.0% 4.5% 4.0%
3.9% J
F
M
Source: Freddie Mac
J
F
Foreclosures:
Interest rates: 30-year fixed-rate mortgage 5.5%
$0
M
A
M
J
J
A
S
O
N
D
Source: City of North Mankato
Source: City of Mankato
3.5%
$5,000
$295.9 $463.4
2011
$2,000
$4,000
$0
2010
$3,000
$6,000
0
(in thousands)
$4,000
$8,000
$0
Residential building permits North Mankato
A
M
J
J
A
S
O
N
D
Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan
Second quarter 2010 2011 40 7 10 45 13 15 21 16 7
48 10 8 32 13 17 14 10 4
Percent change +20% +43% -20% -29% 0% +13% -33% -36% -43%
Source: Minnesota Foreclosure Partners Council J. Malmanger
MN Valley Business • FEBRUARY 2012 • 11
Business Barometers
$12,000
(in thousands) $414.6 $675.2
2011
Vehicle sales
Sales tax collections
Mankato — Number of vehicles sold
2010
857 924
2011
Business Barometers
1,200 1,000
Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.
Mankato 2010 2011
(In thousands)
$500
$346.2 $386.4
$400
800
$300
600 400
$200
200
$100
0
J
F
M
A
M
J
J
A
S
O
N
$0
D
Source: Sales tax figures, City of Mankato
Lodging tax collections 2010
$40,000
2011
F
M
A
M
J
J
A
S
Mankato food and beverage tax
Mankato/North Mankato $37,330 $39,255
2010
$60,000
O
N
D
$50,054 $47,054
2011
$50,000
$30,000
$40,000
$20,000
$30,000 $20,000
$10,000 $0
J
Source: Sales tax figures, City of Mankato
$10,000 J
F
M
A
M
J
J
A
S
O
N
D
Source: City of Mankato
$0
J
F
M
A
M
J
J
A
S
O
N
D
Source: City of Mankato J. Malmanger
Gas prices-Mankato
Gas prices-Mankato 2012
2011
$3.25
$4.00 $3.00
$3.00
$2.00
$2.00
$3.09
$1.00 $0
$3.09
$1.00 J
F
M
A
M
J
J
A
S
O
N
D
Gas prices-Minnesota
$0
J
F
M
A
M
J
J
A
S
O
N
D
S
O
N
D
Gas prices-Minnesota 2012
2011
$3.24
$4.00
2012
2011
$3.24
$4.00
$3.00
$3.00
$2.00
$2.00
$3.09
$1.00 $0
2012
2011
$3.25
$4.00
$3.09
$1.00 J
F
M
A
M
J
J
A
S
O
Source: GasBuddy.com
12 • FEBRUARY 2012 • MN Valley Business
N
D
J. Malmanger
$0
J
F
M
Source: GasBuddy.com
A
M
J
J
A
J. Malmanger
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MF Global mess could hurt all farm operators Agricultural Outlook
F
arming is a business that involves a certain amount of risk and most farm operators have developed strategies to manage those risks. One of the strategies used to manage grain and livestock marketing risk is to “lock-in” a profitable price for the grain or livestock that is being produced, using forward contracts or price “hedging” positions. One risk that farmers have never worried about is that the so-called “segregated funds” that they have in a grain or livestock hedging account would somehow be at risk. This all changed on Oct. 31, 2011, when a company called MF Global Financial filed for bankruptcy. The use of “hedging” has long been promoted by university specialists, farm management advisors, and many ag lenders as a way to reduce marketing risk for farm operations. The hedging tool has been used by both grain and livestock producers in establishing market prices, and has also been used by livestock producers in recent years in lock-in feed costs, during times of rapid increases. Grain elevators and other ag processors also use hedge positions to protect forward price offerings for crops and livestock that are purchased prior to harvest or marketing. A true “hedge” involves selling or buying a commodity that is being produced or will be purchased on the futures market to lock in a price, and then converting that futures market position to a cash position at the time the actual commodity is sold or purchased. The grain and livestock hedging transactions are usually handled through a commodity broker, since these transactions involve the use of the futures market, either on the Chicago Board of Trade or the Chicago Mercantile Exchange. The use of hedging requires the customer to have a “margin account”, which is used to maintain the financial stability of the marketing position until the hedge is lifted. If the grain or livestock prices move against the customer’s established market position, money is subtracted from the margin account, and the customer must put more money into the account. Conversely, if the markets move in a favorable direction to the customer’s market position, money is added into the margin account. The grain and livestock futures transactions that are handled by commodity brokers for customers are usually processed through clearing houses like MF, which also manage the margin accounts. These accounts are placed into so-called “segregated funds,” which means there are very strict regulations on how these funds can be used. MF Global had about 50,000 futures customers, and about two-thirds of those customers had futures positions and margin
■ “Grain elevators
and ag processors will likely recoup their costs by bidding lower prices for the grain.”
By Kent Thiesse accounts that were affected by the bankruptcy. About $1.2 billion of customer funds were tied up when the bankruptcy was filed. As of the end of 2011, about 72 percent of those funds had been returned to the customers by the bankruptcy court; the other 28 percent were very much in limbo. This has resulted in losses of several thousands of dollars for many producers and ag businesses, and even millions of dollars for some grain elevators and ag processors. Several congressional hearings were held late in 2011, and there was considerable speculation regarding potential misuse of those funds, and possible law violations. There are already many laws on the books that affect futures trading. Some farm operators have taken the attitude that the MF Global bankruptcy and loss of funds does not affect them, since they do not hedge grain or livestock, and have never used the futures markets. However, the MF Global situation could have long range impacts that affect every farm operator. In fact, some farm management experts have said that the end results could have more impact on the financial future of farm operations than the passage of the next Farm Bill. While some adjustments may be necessary, there can be a tendency to over-regulate following a situation such as the MF Global bankruptcy. Some experts have suggested that there are already adequate laws on the books to protect the integrity of futures trading and the margin account funds, but that the problem lies with enforcement of those laws. Some have also suggested that future protection and laws should be implemented that involve more requirements for insurance to be purchased by commodity brokers
14 • FEBRUARY 2012 • MN Valley Business
and others that handle futures contracts. It is likely that the added cost of this insurance will be passed on to the customers, which are farm operators, grain elevators, and ag processors. The grain elevators and ag processors will likely recoup their costs by bidding lower prices for the grain and livestock that they buy from all farmers. If laws are passed that are too restrictive regarding futures trading, it could actually reduce the market alternatives that grain and livestock producers have available. Another potential outcome could be more restrictions by lending institutions with regards to loans for hedging accounts and futures trading. Most ag lenders have recognized grain and livestock hedging as a viable and relatively safe financial riskmanagement tool for farm operators, and it likely is still a fairly safe tool to use. However, if either new laws or federal examiners place significant additional restrictions on lending institutions with regards to loans for margin accounts it could reduce the ability of some farm operators to have adequate operating capital for hedge accounts, or result in higher interest rates. Again, any extra costs incurred by grain elevators or ag processors will likely be reflected in lower market prices that are offered to all farmers. The MF Global bankruptcy situation, and follow-up actions, are far from over, and could affect farm operators for years to come. Hopefully, Congress, the regulators, and the agriculture industry will find some workable solutions for the future. MV Kent Thiesse is a farm management analyst and vice president, MinnStar Bank, Lake Crystal. He can be reached at (507) 381-7960) or kent.thiesse@minnstarbank.com
Corn prices — southern Minnesota 2012
2011
$8.00
(dollars per bushel)
$6.27
$13.50
$12.00 $11.00 $10.00
$5.98
$2.00
$11.47
$9.00 J
F
M
A
M
J
J
A
S
O
N
D
Source: USDA
F
M
A
M
J
J
Milk prices
185 pound carcass, negotiated price, weighted average
2012
2011
A
S
O
N
D
$20.27
$22.00
$80.00
Minimum prices, class I milk Dollars per hundredweight
2012
2011
$24.00
$83.50
$90.00
J
Source: USDA
Iowa-Minnesota hog prices $100.00
$8.00
$20.00
$70.00
$18.00
$73.46
$60.00 J
Source: USDA
F
M
$16.00 A
M
J
J
A
S
O
N
D
$14.00
$18.76 J
F
M
A
M
J
J
A
S
O
N
D
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.
J. Malmanger
Business Barometers
$13.00
$4.00
$50.00
(dollars per bushel)
2012
2011
$14.00
$6.00
$0
Soybean prices — southern Minnesota
Updates: Business news, local relevance
■
■ Thin
Film named ‘Turnaround of the Year’ The Upper Midwest Turnaround Management Association named Thin Film Technology in North Mankato as its Turnaround of the Year Award recipient. A group of employees purchased the U.S. assets of the Japanbased electrical component company in 2009, which required a turnaround in 2010 and 2011, saving 16 high-paying technical jobs. Thin Film was founded in 1979 in North Mankato as a provider of passive electronic components. Their products continue to serve a broad range of markets, including the automotive, medical, military, data-communication and aerospace industries. The company was previously owned by Susumu Co. From 2007 to 2009, Thin Film had combined $8.5 million in net losses before taxes. Susumu wanted to consolidate its Minnesota manufacturing operations to Asia — ultimately turning Thin Film into a sales office, eliminating skilled engineering jobs. In 2009, employees Tom Lietha, Mike Howieson and Steve Suri formed a team to purchase the company. They worked with US Bank, North Mankato, DEED, Benco Electric and the seller to obtain financing. Rick Lowenberg joined the board, and contributed significantly to the company’s new strategic direction. The new business model focused on developing and introducing new manufactured products with a wider range of applications, cost reduction, and cash management. In addition, the company stopped spending on basic research, and placed non-performing assets for sale or lease. The company’s manufactured business has increased from 20 to 27 percent of total sales. Under the new owners, EBITDA was a positive $2 million for the first 16 months. ■ Eide Bailly and Wipfli to merge Eide Bailly and Wipfli, two prominent accounting and consulting firms that rank among the largest in the country, announced plans to merge their professional practices in June. Eide Bailly has an office in Mankato. The combined firm will be named EB Wipfli LLP and will rank among the nation’s top 15 accounting firms, with annual revenue of more than $314 million. Combined, the new firm will serve more than 70,000 clients from 41 offices. The merged firm will have 2,327 partners and associates. www.eidebailly.com; www.wipfli.com ■ AMPI makes equity payments The dairy farmer-owners of Associated Milk Producers Inc. will share $10 million in equity payments this year. The cash will be paid to individuals based on the amount of milk they marketed through AMPI. In November, $6.5 million of members’ capital retain investment was distributed. This payment of $3.5 million is a result of previously allocated earnings. The payments to members also included AMPI’s early equity revolvement option. Members who are age 65 and retired
16 • FEBRUARY 2012 • MN Valley Business
from dairying can receive their cooperative equity through an accelerated, five-year distribution. “Distributing equity reaffirms the cooperative’s focus on its mission of maximizing the return on milk marketed and equity invested for its members,” said AMPI President and CEO Ed Welch. ■ ADM expands to Slovakia Leading food processing company, Archer Daniels Midland, set foot in Slovakia to grow its strategy for expansion in central and eastern Europe. It gained control of three grain elevators in Slovakia. These new assets will broaden Archer Daniels’ origination network in Slovakia, beside the River Danube. Situated in Levice, Hontianske Nemce and Secovce, in south and east Slovakia, the facilities will mainly store and supply crops for the company’s European processing facilities. It will also help Archer Daniels to move local crops to export markets. The Slovakia elevators are capable of storing nearly 149,000 metric tons and also house train loading facilities. These assets will also facilitate Archer Daniels to add to its supply of grape and sunflower seeds, as well as corn and wheat from novel sources. Illinois-based Archer Daniels primarily operates oilseed processing facilities in the Czech Republic, Germany, Netherlands, Poland, the U.K. and Ukraine. ■ Best
Buy defends against critics
The chief executive officer of Best Buy Co. took to the web to defend his company’s business model and to talk about recent events that hurt the company’s image. Brian Dunn apologized in his company CEO blog about the company’s recent cancellation of some online orders that had been placed well in advance of Christmas. But Dunn took exception to some critics of Best Buy’s business model, particularly an article in Forbes that argued Best Buy would be out of business in a few years. “This misguided perspective is especially troubling for me,” Dunn wrote, “because it blatantly and recklessly ignores overwhelming evidence to the contrary.” ■ State exports increase Minnesota’s agricultural, mining and manufactured exports grew nearly 4 percent from the same period a year earlier to $5.1 billion in the third quarter of 2011, according to figures released by the Minnesota Department of Employment and Economic Development. The totals were a third-quarter record, beating the previous mark of $5 billion in the third quarter of 2008. The state’s best quarter ever for exports of agricultural, mining and manufactured products was $5.3 billion in the second quarter of last year. Manufacturing accounted for the largest share of the state’s exports in the latest quarter at $4.6 billion, an increase of 5 percent from the third quarter of 2010.
Professional resources to help grow your business AUTOMOTIVE Jerry’s Body Shop, Inc. 1671 Madison Ave, Mkto, MN 56001 507-388-4895 www.asashop.org/member/jerrys
EDUCATION MSU Extended Learning MSU-Mankato Campus ext@mnsu.edu 507-389-2572 800-722-0544 x9 www.mnsu.edu/ext
MEDIA The Free Press Media 418 S 2nd Street Mankato, MN 56001 507-625-4451 www.mankatofreepress.com
OCCUPATIONAL HEALTH Mankato Clinic Urgent Care 1809 Adams Street Mankato, MN 56001 507-385-4075 www.mankatoclinic.com
For information on including your service to this directory, please contact
Cheryl Olson
507-344-6390
■
Special Focus: Insuring your business
Many exposures often overlooked
I
By Marie Wood
ndependent insurance agents Mary McClure of McClure Agency and Nikki Volker of Corporate 4 Insurance, both in downtown Mankato, offer tips to help you understand your business exposures and to protect your assets. “Even with homeowners and auto insurance, there are so many facets. It’s not black and white. You triple that with business insurance,” said McClure. As an independent agent, McClure can shop different companies for the most coverage at the best rates. When you do need to file a claim, McClure recommends contacting your agent right away to start the process. Volker and Steve Meyer at Corporate 4 Insurance Agency also work with a number of companies to offer insurance solutions for any type of business. Volker advises meeting with your insurance agent once a year to review your policy for adequate coverage. Your policy may need to be updated to cover additional employees, remodeling, or new equipment. “Most independent agents audit policies every year and go through the coverage with them,” said Volker. Business owner’s policy A business owner’s policy (BOP) is a common package policy for small businesses. It usually includes property, business interruption/continuation, and liability insurance. Many insurers customize the policies for specific types of businesses. “A package is always a better buy,” said Volker. According to the Trusted Choice Independent Agent Web site, package policies generally offer more complete coverage at a lower price than separate policies. Additional coverage for property, liability or perils or conditions otherwise excluded can be purchased as an endorsement to the policy or as a separate policy. A BOP is a good starting point, but if you have even one employee, you must purchase workers’ compensation. It’s mandatory coverage required by Minnesota state Law. More Liability Commercial general liability covers four types of events for which you could be held responsible: bodily injury; damage to others’ property; personal injury, including slander and libel; and false or misleading advertising. For instance, if you damage something while painting the inside of a client’s home, then your commercial gen-
18 • FEBRUARY 2012 • MN Valley Business
Nikki Volker
Mary McClure
eral liability insurance comes into play. If you are providing professional services such as consulting or accounting, you will also need professional liability insurance to cover faulty service or failure to provide a service. “The best insurance for your money is liability,” said Volker. Commercial auto insurance There are important distinctions between personal and commercial auto insurance according to the Minnesota Department of Commerce Insurance Division. Commercial automobile policies have higher liability limits. They also may include rented and other nonowned vehicles, including employees’ cars driven for company business. McClure has discovered that non-owned vehicles are a commonly overlooked exposure. For instance, many employees use their own vehicles to pick up the mail or make a bank deposit. If your employee gets in an accident while on company business, then commercial auto insurance protects you and your business, explained McClure. Your premiums are based on a number of things: vehicles covered; geographic area of business; vehicle parking; deductible amounts; number of claims filed and more. When your employees have clean driving records, that can help lower premiums. To that end, employers can make a clean driving record an employment prerequisite and establish rules when driving company vehicles, said Volker. “It prevents accidents and helps employees,” said Volker. MV
Life insurance important in succession plans By Marie Wood
W
hat will happen to your business if you die, become disabled or retire? Life insurance can play an important role in the succession planning of a small business. Sander Ludeman, financial advisor at Edward Jones in Mankato, encourSander Ludeman ages business owners to make a succession plan and recommends life insurance as a common strategy to help your family or business partners meet the goals of your succession plan. Here’s how life insurance can keep the “success” in your succession planning, according to Edward Jones.
Sole Owners •
• • • •
To continue operating the business in the event of your death, life insurance proceeds can provide your family with extra cash at a crucial time to help: Pay down debt Hire experienced management to continue running the business Replace profits that might be lost because of your death Or, if your family decides to sell or close the business, life insurance can help replace the future income you may have earned.
Partnerships As part of your business plan, you and your business partners should decided what happens to your business if one of you dies, becomes disabled or retires. Because your business has more than one owner, you may want to consider a buy-sell agreement funded by a life insurance policy as part of the succession plan. To create the agreement, you will need to work with an attorney. This agreement affords protection: • Against unexpected or unwanted transfers of ownership • By giving the surviving owners the right to buy out the deceased owner’s heirs • By ensuring that the deceased owner’s family can sell their business interests for cash MV
Affordable Health Care Act In 2010, the Affordable Health Care Act became law and health care reforms are rolling out through 2014. There are some key features designed to lower the costs of providing health insurance to your employees. According to HealthCare.gov, 4 million small businesses are eligible for tax credits to help provide health insurance to their workers. If you have fewer than 25 employees, you pay an average wage of less than $50,000 per year, and you pay at least half of your employee health insurance premiums, you are eligible. The credits are available 2010 to 2013 and increase in 2014. Learn more at www.HealthCare.gov. MV
For more on business insurance: Visit http://mn.gov/commerce and choose the insurance tab and then the business tab. Visit www.trustedchoice.com. Choose the business tab for articles and download “The Consumer’s Guide To Small Business Insurance.”
Flood insurance • The National Flood Insurance Program, under the Federal Emergency Management Agency, provides flood coverage. Most commercial buildings in a low-tomoderate risk area qualify for the Preferred Risk Policy Premiums, which are the lowest premiums available. If you operate in a high-risk area then the standard-rated policy is your only option. • Talk to your insurance agent about coverage. Learn more at www.floodsmart.gov MN Valley Business • FEBRUARY 2012 • 19
Business Commentary
Past becomes present with growth of the City Center The downtown once lost its claim of being a vibrant place for business, a crossroads of people and the heart of our community. Yet with the dedication of the community and organizations like the City Center Partnership, that past vibrancy has returned. Though it’s often asked how a downtown organization, like the Partnership, comes to influence downtown growth. Beginning in 2008, the City Center Partnership is a privatepublic partnership that is guided by a dedicated and diverse 20 member Board of Governors. The partnership is comprised of 65 invested businesses and citizens, along with the city of Mankato, city of North Mankato and Greater Mankato Growth all of whom are committing annual financial or staff resources in support of the city center. In its first two years, the partnership was a fully volunteer organization with the goals of structuring a foundation that aligned with the City Center Renaissance Plan. Late in 2010, the CCP made its first hire of a part time coordinator. This move freed volunteers from many of the daily tasks which were beginning to take focus away from the strategic plan. The importance of this move resides in the true nature of this group. Being an organization of community leaders, it’s directly through the experience, abilities and involvement of volunteers that initiatives are successfully achieved. So with the hire, focus returned to the strategic plan. The strategic goals of the CCP revolve around its mission to serve as a catalyst for development of the city center that supports private-public investment in city center projects, programs and initiatives that attract a greater number of customers, employees, and residents to the city center. Over the past three years, the partnership has progressively undertaken larger initiatives in support of that mission. Some notable initiatives include the implementation of a city center brand. Now the entirety of the city center can be marketed as one destination. From Madison Avenue to Sibley Park and across the river to Belgrade Avenue, it’s all city center. Yet the uniqueness of areas within the city center are not lost. Though under one brand, areas still retain their specialization whether its entertainment, specialty retail, neighborhood services, business core, or arts and historic. Under one brand the city center can be efficiently marketed as the diverse and dynamic destination expected of an urban core in a growing metropolitan. Another well know undertaking was installed after more than a year of planning. The CityArt Walking Sculpture Tour was designed to bring art to the masses in a manner that could improve streetscape aesthetics while increasing pedestrian traffic. The project was accomplished through the collaboration of the CCP, 30 sponsoring businesses, both cities of Mankato
and North Mankato, Twin Rivers Council for the Arts, and many in-kind contributions. The first year saw more than 10,000 brochures handed out, over 1,000 votes cast for People’s Choice and visitors from 57 Minnesota cities and 15 states. Alive After 5, another initiative which saw growth, shattered the combined attendance of the previous two years. The four night live music event in Jackson Park was attended by more than 1,400 people. The growth has contributed to the partnership’s ability to draw unique connections between title sponsor August Schell’s Brewery, numerous supporting sponsors, the city of Mankato, the Verizon Wireless Center, and other organizations who sought to bring their group to the free music event. The partnership looks to continue that growth for the 2012 Alive After 5 as it becomes a major community event that attracts people to the city center. As the the new year is upon us, the partnership shifts from preparation to implementation of the initiatives for 2012. The focus, in part, is to have a stronger emphasis on business development, retention, and other economic development initiatives. The CCP also looks to play a larger role in attracting a potential civic center expansion. New undertakings will see the organization convene a task force to begin assessing how to better connect businesses and pedestrians in and around the core. The taskforce will investigate ways to use intuitive pedestrian design that will capitalize on existing or future destinations to create a unique, memorable and lasting experience in a clean and safe pedestrian corridor. A final summary prioritizing the goals, suggesting implementation strategies and offering concepts for funding will be a key element in any improvements to the city center’s connectivity. Other focuses for this year include expanding the reach of city center marketing efforts to attract more people from outside the surrounding region, expanding the coordinator position to full-time, engaging our first Investor, Recruitment & Relations taskforce which seeks to maintain the organizations growth and finally the partnership will move into its first office in the renovated City Center Place building. Last year proved to be a largely successful year for the partnership and 2012 looks to be on track for a bright start. On behalf of the City Center Partnership Board of Governors we thank everyone for all the assistance and promise to not only maintain but also expand that city center vibrancy which was once lost. MV
By Eric Harriman
20 • FEBRUARY 2012 • MN Valley Business
Eric Harriman is coordinator of the City Center Partnership: 507-388-1062; eharriman@citycentermankato.com
Cover Story
Most of the Kia models have been redesigned in the past 18 months. Kia managers say one-third of their business comes from referrals.
Mellissa Sherman, models one of the wedding gowns at the Lorraine Shop.
22 • FEBRUARY 2012 • MN Valley Business
Local auto dealers benefit from pent-up demand By Tim Krohn Photos By Pat Christman MN Valley Business • FEBRUARY 2012 • 23
Cover Story
Pedal to the metal
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A
s owner of Snell Motors and director at the National Auto Dealers Association, Todd Snell does a lot of traveling. “I tell people here, you don’t know how good you have it. If you don’t travel a lot, you don’t get to see it,” Snell said. “Regional centers are definitely the sweet spot nationally and Mankato may be the sweetest spot. Our economy continues to grow as a regional center.” Ragy Elshaboury said he was blown away by the Mankato market after opening a Kia dealership here in the spring 2010. “I was in (the Kia dealership) St. Cloud before coming here. I was under the impression this was a smaller market and there would be lower sales. It’s the exact opposite,” Elshaboury said. “There are so many opportunities here. Because the community is smaller, I think people talk more to each other. I’ve worked nine years in the Cities and St. Cloud; I’ve never seen this much referral business. A third of our business is referrals.” Elshaboury said they sold 672 new Kias last year and are already looking at sites to build a larger store in about a year. Kip Lager, of Lager’s of Mankato, said consumers are benefiting from strong and aggressive manufacturers. “There’s a real war among the manufacturers. They’re trying to keep people interested all year with a lot of new products. It drives sales and keeps people interested.” He said pent-up demand has been driving new vehicle sales as people held onto their vehicles longer during the recession. “And the interest rates are so low. The banks are in competition for the loans, so credit is good.” Like other local auto dealers, Snell’s sales were up significantly in 2011. “We were up 22 percent, a record year — in a year I didn’t think was going to be quite that robust. We just see so much traffic in Mankato. When I don’t think it can get any better,
24 • FEBRUARY 2012 • MN Valley Business
Snell Motors has had brisk business in pickups and in crossover vehicles.
it gets better.” Dale Schmitt, who is finishing his third year leading Mankato Motors, agreed. “In ’09 it was good, ’10 was better and ’11 was spectacular,” Schmitt said. “People have to get rid of their cars eventually and financing has eased up again.” Two dealerships, Luther Mankato Honda and Heintz Toyota, had unique challenges last year, driven by the tsunami in Japan that seriously cut into auto and parts production there. “We had production issues, but there was still a lot of good stuff happening,” said Kerry Lindsay, general manager of Mankato Honda. “Honda said production will go up 25 percent from last
year. That’s the biggest jump I’ve ever seen.” “We’ve seen it all, I think,” said Ben Heintz of the natural disasters in Japan that followed a recession and restructuring in the auto industry. “The manufacturers are all in good shape. They’ve been bruised so bad they’re all on their game now, they’re extremely competitive and the consumers will benefit,” Heintz said. Snell said his review of the national scene shows that a more efficient, restructured auto industry and fewer dealerships have led to sales increases of 10-20 percent for most dealers. “The auto industry is healthy. It puts dealers in the best shape they’ve been in since the ’60s or ’70s.”
Year of the crossover
Leasing coming back
Leasing vehicles, once highly popular, crashed after the recession. The main reason: Financial lenders were uncertain whether vehicles would hold their value in the economic upheaval and were generally gun shy financing for lease deals with so much uncertainty. But people have been holding onto their vehicles longer, leaving few lower-mileage used cars on the market and driving up the prices. And fewer new cars were made, tightening supplies further. That assures financers that when lease vehicles come back on the market in a few years at the end of the lease, they will have a high value. “Leasing will be strong for the next three years or so because the resale values are going up,” Heintz said. “The industry went from 17 million vehicles a year to 9 million a year, so there’s that many fewer cars in the market for years to come,” he said. “Lenders are getting more aggressive and they’re more creative in getting volume business,” Snell said. “Up to 80 percent of our business was leasing pre-recession, then it went to about 50 -50 then during the recession and then it just about stopped.” Elshaboury said leasing works for people driving between 12,000 and 15,000 miles per year. “If you are driving more miles, you might as well buy it,” he said. Lindsay said many leases are being offered with nothing
Heintz Toyota and Scion owner Ben Heintz said the dealership and Toyota are going strong even with production disruptions last year because of the tsunami in Japan.
Cover Story
Every dealer said crossover vehicles — vehicles smaller than SUVs, larger than station wagons and all-wheel-drives — are the big story in 2012. Lager said market data show pickup sales still reign supreme in the Mankato market, followed closely by crossovers and then by compact cars. “The crossovers are strong,” he said. “Crossovers and larger SUVs are still a growth market,” said Heintz. “There are more and more offerings coming from all the manufacturers.” Lindsay said customers, particularly in snowy Minnesota, like the all-wheel-drive in a smaller, smoother riding and more fuel-efficient package than an SUV. “Honda has a redesigned CRV. We can’t keep them in stock.” Snell said locally and across the country people are trading
in full-size SUVs for the crossovers. “They get 30-some miles per gallon and have all the comfort and people can haul all their stuff.”
down. “You can do a sign-and-drive on a Civic lease for $200 a month. It’s crazy.” Lager said lease agreements have gotten sweeter as more banks are getting interested and manufacturers are subsidizing some leases as an incentive. “In the end, it’s just a different way to finance a vehicle,” Lager said. “You always need to read the fine print to see if it makes sense.”
Cover Story
New models
Dealers love new models and manufacturers have been providing plenty. Heintz said a new Camry — Toyota’s top-selling car — is generating a lot of buzz. “What’s really taken off is the Toyota Prius. Toyota predicts in the next few years, it will become our No. 1 selling car. “The Prius full hybrid is in its 12th year, so people know it’s proven and that’s it’s safe.” Elshaboury said most of the Kia models have been redesigned in the past 18 months. He said the Korean manufacturer focuses on high-mpg vehicles with more options at a competitive price. “The Serento is the No. 1 seller,” he said. But it’s the second best seller — the Kia Soul — that generates the most passion he said. “It’s quirky, it’s got a lot of personality. For a small car it has room, a 6-5 guy can fit in and it costs under $18,000,” Dale Schmitt of Mankato Motors said 2011 was a ‘spectacular’ year for Mankato dealers as pent-up demand fueled sales.
26 • FEBRUARY 2012 • MN Valley Business
Mankato Honda sales executive Bob Anderson has more vehicles coming in all the time. After production disruptions following last year’s tsunami in Japan, Honda is increasing production 25 percent this year.
Kip Lager of Lager’s of Mankato said manufacturers are aggressively competing with an array of new and updated models.
Cover Story
he said. “It’s not too ugly, but it’s on the ugly side. People love it, it’s weird.” Lager said new Jeep models are doing well at his shop. “Jeep outsold GMC for the first time in five years. The Grand Cherokee, the Compass and the new Wrangler are all big sellers. “We’re seeing steady growth with the Dodge line and the new Durango. And the Ram pickup is gaining momentum,” Lager said. Snell said Buick is rolling out the Verano. “It’s a luxury car that’s small. It starts at $27,000 and gets 32 miles per gallon.” Cadillac is offering a new luxury car, the ATS. “They want to compete with the BMW 3 series brand,” Snell said. “We do pretty well on the Cadillac line.” He suspects the GMC Terrain crossover, starting at $27,000 also will be popular. Lindsay said he’s awaiting the 2013 Honda Accord due out this summer and a fully redesigned 2013 Honda Civic this fall. Schmitt said the new Chevy Equinox crossover and the Nissan Rogue crossover will continue to be strong sellers. In the compact car category, Schmitt said the Chevy Cruze has been a huge hit with buyers. “The Cruze has outsold the Honda Civic and Toyota Corolla.” MV
MN Valley Business • FEBRUARY 2012 • 27
Year-to-date Economic Impact 2011 Total Economic Impact: $40,500,000
Advancing Business for a Stronger Community
Greater Mankato’s Biggest Challenge and Opportunity Over the past year, Greater Mankato has received many accolades pointing to its economic strength and vitality. Most recently, a study by the University of Minnesota recognized Greater Mankato as a Level 1 regional trade center, with a 123 percent increase in taxable retail and service sales since 1990, nearly triple the next-highest rate of 42 percent in St. Cloud. Many of our businesses are growing and adding employees, with the average number of jobs for 2011 up 1.7 percent from 2010. Within all this good news, comes an important challenge and opportunity. Our future vitality is dependent on our employers’ ability to find, develop and keep employees with the necessary skills they need.
Greater Mankato Growth
The challenge While there is still unemployment in the area, some employers are still challenged to find employees with the specific skill sets required. “With the recession dissipating and employers ramping up production of goods and services, the themes we were seeing 4-5 years ago are re-emerging, and faster,” says Greater Mankato Growth President and CEO Jonathan Zierdt. “As the economy continues to strengthen and employers continue to create jobs, matching employer needs with employee skill sets will be critical.” The opportunity Fortunately, our region is ahead of the game in recognizing the importance of talent to our success. In 2008, leaders in the community identified talent as a key factor in our success as a marketplace, which lead to the hiring by Greater Mankato Growth (GMG) of a dedicated talent development position, the first of its kind in the state. For years, the area’s higher education institutions, K-12 school system, workforce center and GMG have identified the need to align academic programs with real world needs. Some significant progress has been made, with many programs developed at higher education institutions and high schools to offer training in specific high demand areas. To truly be successful in getting employers the employees they need and our graduates the opportunities they want, this effort needs to be expanded further. A
comprehensive study of the needs of employers now and long term, matched to the training and education delivered by our high schools and colleges, can provide a roadmap for our region’s future success. Our schools, the workforce center, business community and GMG are committed to dedicating resources to advance this work. “This is something we have talked about doing for a number of years, and it appears that all forces have aligned to make now the time to get it done,” says Zierdt. “It’s about simple supply and demand. We need to determine the demand of our businesses will have for employees and their necessary qualifications and opportunities for our schools and colleges to supply graduates with those skills. Through this effort, I am confident that we will be able to utilize the talent we are producing right here to meet the majority of needs of our employers, while positioning our market as a destination for those with talent.” Marketing our talent as an asset Even as we strive to match our college and high school curriculums to the needs of our area employers, there are some high demand degree fields, such as engineering, that are producing even more graduates than our current employers here need. This surplus of talent in particular high demand areas is a highly marketable asset to both current and potential businesses in the region. According to a 2008 Development Counselors International (DCI) survey of executives with site selection responsibilities, respondents rated labor (availability, quality and cost) as the most important factor in their location decisions. An online ad GMG and the Regional Economic Development Alliance ran in a national publication in September 2011 provided further proof of the desire of businesses to locate in a talent-rich environment. The online ad (shown to the right), which featured all our talent assets, generated 10 times the number of click through visitors to greatermankatobusiness.com for September, 2011 than the previous year. “We as a region are so very fortunate to have five diverse higher education institutions churning out a ready pool of graduates. With a coordinated effort, we can make our talent accessibility even more of a regional asset,” says Zierdt.
Chamber of Commerce and Economic Development
507.385.6640 • greatermankato.com
Sound like a certain marketplace? Go Greater Mankato! “The I.T. revolution is giving individuals more and more tools of innovation, collaboration and creativity — thanks to handheld computers, social networks and “the cloud,” which stores powerful applications that anyone can download. And the globalization side of this revolution is integrating more and more of these empowered people into ecosystems, where they can innovate and manufacture more products and services that make people’s lives more healthy, educated, entertained, productive and comfortable. The best of these ecosystems will be cities and towns that combine a university, an educated populace, a dynamic business community and the fastest broadband connections on earth. These will be the job factories of the future.”
Take part in the Greater Mankato Career Expo
— Thomas L. Friedman 3 time Pulitzer Prize winning reporter and columnist and 5 time bestselling author
Our greatest incentive is our people Higher Productivity
Minnesota Work Ethic
2011 Best Small Metros for
Business & Careers.
Strong Talent Pool Educated Employees
(5 higher ed. institutions)
greatermankatobusiness.com • 507.385.6650
MN Valley Business • JANUARY 2012 • 31
Greater Mankato Growth
Lower Absences
#25 on Forbes
The 2012 Greater Mankato Career Expo on April 4 from 8:00 – 3:00 pm at the Verizon Wireless Center will give more than 1,200 high school 10th graders from throughout the Greater Mankato area an opportunity to interact with area business experts and learn about the variety of career options available here. The success of this event is dependent on members of the business community, who can step outside of the traditional booth method of presentation and instead create an interactive exhibit that will showcase the careers students should know about in an interactive manner. Businesses can do this by bringing in equipment and items used in their industry, setting up visual aids and providing hands-on activities to engage students. This could be your first opportunity to talk to a student, who will become a key valuable employee in the future! If you are interested in taking part in the Expo, please call Monde Schwartz with the Mankato Area Public Schools at 507.207.4280 or Exhibit Chair, Gwenn Wolters at 507.625.6556.
Member Activities Upcoming Member Events
5:00 – 7:00 pm February 7 March 6 April 3
Bolton & Menk Gustavus Adolphus College Mankato Clinic @ Madison East Center
Greater Mankato Growth
2012 Business After Hours Sponsored by
32 • JANUARY 2012 • MN Valley Business
7:30 – 9:00 am February 15 March 21 April 18
Minnesota Valley Granite MRCI WorkSource Pediatric Therapy Services, Inc. and EllieGail’s Bakery & Catering
2012 Business Before Hours Sponsored by
New Referral Program We are excited to introduce a new referral program for GMG members. Encourage a fellow business to join GMG and receive a $100 discount off your 2013 membership, when the business puts your name in the “Referred by” section of their membership application. And remember, if you want to begin introducing someone to the benefits of being a GMG member, we encourage you to bring them as your guest one time to a Business Before or After Hours event. For more information, call Karen Toft at 507.385.6643.
Update your listings The listing information you provide to GMG appears in the “Greater Mankato Online Business Directory” that receives 170,000 visitors each year AND the popular “Quick Reference Guide,” which is printed annually and sent to more than 25,000 households and businesses in Greater Mankato. The 2012 Guide will soon go to press, so you’ll want to be sure to update your listing information by logging in at greatermankato.com/gmgmemberlogin.php and clicking on “Update your information.” In addition to having the names and phone numbers of all GMG members, the Guide also identifies those businesses that are Buy & Build Greater Mankato partners, so if you haven’t had the chance, be sure to sign up for this program as well at BuyandBuildGreaterMankato.com. Advertising is also available in the Guide. For details, call Karen Toft at 507.385.6643.
This year’s Greater Mankato Business Showcase will be held on April 10. If you have not yet registered, now is the time to reserve your booth space and get your business in front of the 500+ individuals form the Greater Mankato business community who attend the event each year. Last year we had a waiting list for booths, so make sure to reserve your space today. For more information, visit greatermankato.com/gmg-businessshowcase.php or contact Liz Sharp at 507.385.6641. The 2012 Greater Mankato Business Showcase is presented by
If you’re an established business person, you no doubt have a valued network of colleagues and close friends. But those in the early stages of their careers may need help developing this network. The Greater Mankato Young Professionals (YP) program was created in 2008 to provide businesses with a positive, cost-effective way to invest in their new to town or emerging professionals. Businesses with employees in the program understand that if young professionals are able to connect to the community and other professionals in similar stages of their careers, they can find their place in Greater Mankato. “What makes Young Professionals unique is that it supports a professional environment where we can interact with our peers,” said Kristi Helget, a 24-year-old Senior Accountant with Abdo, Eick & Meyers, LLP. “Young Professionals provides an atmosphere that is great for networking, socializing, and volunteering with people who have similar careers and life goals. Being a part of the group has helped me to make professional contacts and friends, while learning and participating in fun events”. In addition to the many benefits to the young professionals themselves, their employers are finding the program a great retention and staff development tool. Whether participating in the social or development activities, young professionals in the program are gaining knowledge and creating connections that directly benefit their employers. The YP program includes one professional development and one social event each month and participants may attend as many as they like. All events are included in their annual investment of $300 ($25 per month). In February the social event will be snow tubing at Mount Kato on February 9 and the professional development event will feature a presentation of Community Service Opportunities for the Young Professionals on February 29. For more information on the Greater Mankato Young Professionals program, visit greatermankato.com/yp.
MN Valley Business • JANUARY 2012 • 33
Greater Mankato Growth
Have you reserved your booth?
Program for Professionals 21 - 39
Advice from the Accelerator: New Online Tax Tool By Jill Klinger, GMG New and Emerging Enterprise Director Many business owners simply develop a business plan to receive funding, but savvy business owners use their plan as a guide to ensure their business is on the right track. If your plan doesn’t give you strategic direction and offer guidance, it’s time to revise. Whether it’s increasing your customer base, delivering a higher level of service or just getting your business off the ground, make 2012 your year to prosper by detailing your goals, objectives and your plan to achieve success. Your busi-
ness plan should be your comprehensive navigation tool for your business. With the help of an advisory or executive team, or others you trust to give you constructive criticism and suggestions, your plan can take on new energy and meaning for your company. There are a wealth of resources in the region available to help ensure your plan is the most comprehensive map you can follow. Did you know that there are organizations available that will perform a financial analysis of your business at no
charge? Or that market research tools are at your disposal to firm up your target market projections? Be savvy about your business by using your guide to its fullest – a plan that reflects your strategic goals and actions. Give it a seat at the table when making all of your important business decisions to ensure your business goes down a well thought out and intentional path. For more information, visit greatermankato.com/business-startabusiness. php
The Business Accelerator is a program of Greater Mankato Growth, City of Mankato and Regional Economic Development Alliance. The program serves as a single access point to connect entrepreneurs with the area resources and services they need to succeed.
Greater Mankato Growth
Congratulations 2012 Pathfinder Recipients On January 16, the 2012 Pathfinder Award recipients were honored at the 28th Annual Martin Luther King Jr. Community Celebration. The Pathfinder Award was created in 1986 by the Martin Luther King, Jr. Commemorative Board to recognize individuals or organizations that, in the spirit of Dr. King, are initiators or action takers in the struggle for equal treatment, human rights and non-violence. The award represents the ideal that all people should be treated fairly and equally without the fear of discrimination on any basis. In 2002 the group added the Young Pathfinder Award to recognize the commitment and courage displayed by young people in the community. In 2003 the business community got involved by honoring companies that strive for equal treatment, human rights
2012 Pathfinder Honorees Lloyd Management, Inc. Marketing Manager Julie Hawker,Wilber Neushwander-Frink and Zeynab Omar with Greater Mankato Diversity Council Executive Director Bukata Hayes at a news conference announcing the recipients in early January.
and non-violence in the workplace. Greater Mankato Growth is proud to present this award. The 2012 honorees are: Pathfinder: Wilber NeushwanderFrink for raising awareness and support for people with disabilities. Young Pathfinder: Zeynab Omar for
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serving as a positive influence on her fellow students and others Business Pathfinder: Lloyd Management, Inc. for providing housing training to new refugee residents. For more information on these honorees, visit greatermankato.com/GMGPathfinderAwards.php.
How do we love you Mount Kato? Let us count the ways. By Christine Nessler, Marketing and Leisure Sales Director
The Greater Mankato Convention & Visitors Bureau (CVB) is an affiliate of Greater Mankato Growth (GMG), operated as an LLC under GMG.The CVB is dedicated to the important work of attracting and servicing visitors to Greater Mankato.
MN Valley Business • JANUARY 2012 • 35
Greater Mankato Growth
For five months out of the year, Mount Kato Ski Area is showing its love for Greater Mankato. No roses, no chocolates – just pure economic impact. In honor of February, the month of love, we want to express why we love Mount Kato right back. 1. The Numbers - Just a mile south of Mankato on Highway 66, the scenic Mount Kato is hidden from the hustle and bustle of the regional shopping mecca that is Greater Mankato. Its impact is sometimes overlooked, but it quietly brings in about 90,000 guests each year, a number that has been increasing steadily over the last five years, according to General Manager Jeff Putrah. Mount Kato also estimates outstate guests spend close to $2,000,000 for lodging, eating out and shopping locally each year. 2. Outstate Guests - Mount Kato uses zip codes from credit cards, checks and rental forms to track outstate guests. Putrah says we have an increasing draw from the southwest metro, because Mount Kato has all the amenities of a big-city ski resort, without all the crowds of people. It’s worth a drive for guests, if they aren’t waiting in lines for ski lifts. They are getting more actual ski-time for the money. He also sees a draw from Northern Iowa and South Dakota. 3. Amenities - Outstate skiers, snowboarders and tubers
can’t resist Mount Kato’s 19 trails, eight ski lifts and four terrain parks. Mount Kato also offers the Lift Bar & Grill, a full-service rental shop, tech shop with certified technicians and a certified ski/snowboard school. Guests can get private lessons or group lessons at the ski/snowboard school. Mount Kato also offers season passes and group rates. 4. The Lodge - Mount Kato also has a full calendar of events to bring skiers and non-skiers into the lodge. The lodge can hold up to 2,000 people and is typically packed each weekend. Speaking of lodging, Mount Kato has partnered with local hotels to offer special deals to skiers. That’s just one more incentive to bring skiers to Greater Mankato. 5. Keeping it Local - Putrah also estimates Mount Kato spends several hundreds of thousands of dollars locally each year including paychecks for between 275 and 300 employees during their five month season. Mount Kato, we love you too – with or without the chocolates. For more information about Mount Kato and all the other Greater Mankato attractions, go to visitgreatermankato.com.
Good morning Mankato! We’re happy to be here. We may be new to Mankato, but we’ve been around Minnesota for a long time. So you can expect big things from us. Like building area businesses, and a healthier community together. Stop by for a cup of coffee and say hello.
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Foreign Trade Zones benefit rural Minnesota Regional Outlook
R
ural manufacturers today are continually being confronted by competitive globalism; and those who were once provincial in their sales markets are now looking to export more products overseas. Supply chains often bring part components used in the manufacturing process from overseas distributors with significant import tariffs to be paid. To offer a degree of relief to component importers, some have been utilizing Foreign Trade Zones to import their product. FTZs are jurisdictions which allow a producer under particular circumstances to bring foreign component product into the U.S. treating such input as though it had never entered the U.S. Thus FTZs may reduce, eliminate or defer such tariffs into the future which allows current capital to be utilized on other high return, short run investments. Further, if a producer imports several high duty components and ships the final product to dealers within the U.S. under a FTZ, they may be able to obtain tariff reductions on the overall product, rather than paying all the individual duties of the components. Finally, the same firm may be able to save on the opportunity cost of the funds it usually has tied up in large duty payments when a sizable component inventory shipment comes in, as with a FTZ the firm has to pay the duty on each component only when it leaves the FTZ as a part of the finished product.
Expanding Foreign Trade Zones Firms that are currently manufacturing or distributing products containing high tariff part components may be able to decrease input costs leading to increased profitability by applying for FTZ status with the U.S. Department of Customs. This designation originates from legislation that is over three-quarter of a century old, yet many firms are not familiar with it. In order to promote FTZs as an additional way of saving costs, the three Foreign Trade Zone Authorities in Minnesota (Twin
By Denis Maier, Ph.D., Arthur Nash, M.S. and Jack M. Geller, Ph.D.
Cities, Duluth and International Falls) developed a new approach with the assistance of the EDA Center at the University of Minnesota in Crookston (www.edacenter.org)
New cost and benefit calculator A further expansion of the FTZ concept requires a much more holistic and integrated approach. Companies need to be better supported in their information, decision- making and implementation process. Yet the ideas and details behind FTZs can be intimidating and frustrating for most businesses. Professional assistance throughout the application and approval process and providing the best possible support in the decision making process are key elements in promoting FTZs. There are numerous savings calculators available on FTZ-related websites which provide a fairly good overview of the potential savings, but what is really needed for business decision makers is something that outlines the full costs as well as benefits. Establishing a FTZ requires payments of various fees and application costs, while the approval and implementation process may take more than a year. Accordingly, from the business’s perspective, a FTZ may very well be in competition with other projects for resources and time, and therefore needs to fulfill the same requirements.
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As a result of this assistance from the EDA Center, a new cost and benefit calculator is now available for free on the Minnesota Foreign Trade Commission’s website (www.mnftz.com). The results are much more comprehensive as well as an overview of expected savings and associated costs and an accurate source for the estimated time of the application and approval process. This overview puts businesses in a better position to see the full picture in advance and thus avoid gradually finding out about additional costs and time elements, which may drive the firm to step back from the project. The tool delivers the main components to give companies some confidence and support in their decision and ultimately supports the perseverance to implement it successfully. You can find further information regarding the Foreign Trade Zones in Minnesota at the Commission’s website at www.mnftz.com This project was funded in part through grant number 06-66-05709 from the Economic Development Administration, U.S. Department of Commerce. MV Maier is an Assistant Professor of Management, Nash is an Extension Educator, and Geller is a Professor and Head of the Liberal Arts & Education Department at the University of Minnesota, Crookston.
Up and Coming
Judy Marben (left) and Sarah Breitbarth spend a lot of time at the sewing machine at their Pins and Needles Alterations shop.
A bear of a business Entrepreneurs add Memory Bear line to alteration shop By Jean Lundquist Photos By Pat Christman Judy Marben and Sarah Breitbarth spend the greatest part of most days huddled over a sewing machine, altering and repairing clothes. Together, they own Pins and Needles Alterations on North Riverfront Drive in Mankato. At first glance, that may seem pretty mundane. But a closer look reveals unbridled creativity, imagination and enthusiasm for the job. Says Marben, “We do a lot of hems, but what we do every day is different.” Much, but not all of the work they do is on formal wear, for proms and weddings. “The unfortunate thing about formal wear is that people
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pass up on a lot of things they don’t need to. About 99 percent of the time, we can make it fit,” says Breitbarth. “If it’s too big, we can fix that,” she continues. “If it’s too small, it takes longer and it costs you more. Then, we have to find creative ways and places to steal fabric from the garment for the alteration.” Marben says in such cases, it may be that one bridesmaid is short, and that can provide fabric to increase the size of another dress. This is where some of the creativity and imagination come in, according to Marben.
Up and Coming
Most of the people seeking alterations and repairs are women, they say, but the split between men and women isn’t as large as some might think. Their business consists of about 60 percent women. The age range of people seeking their services is teenagers to seniors. While both women are enthusiastic about their day-to-day activities, as entrepreneurs they are always on the lookout for new ideas and ways to expand their business. Marben and her sister-in-law used vintage chenille bedspreads to make gift bears a few years ago. On a whim, she displayed a couple of the bears in Pins and Needles. “They were cute,” says Breitbarth. “We had a lady come in who saw them, and asked us to make a bear for her daughter, who was going away to college. She brought us an old bathrobe her daughter liked, and we made her a bear. I guess that way, her daughter had a chunk of her mom to hug when she got lonely.” That’s when the Memory Bear portion of the Pins and Needles Alterations business took off. That woman was a writer, and she wrote about the bear. “We got swamped!” recalls Breitbarth. Since then, Marben and Breitbarth have made hundreds of memory bears, on an average of at least one per week. “Most of the bears we make are from fabric people bring in. It’s Grandpa’s shirt, or a bridesmaid’s dress, or wedding dress,” says Marben. Realizing how the memory bears could increase their business, Breitbarth had a marketing plan when she organized a trip to Houston. “I had 500 cards, and I distributed them all. I put them on car windshields, and handed them out pretty
MN Valley Business • FEBRUARY 2012 • 41
Up and Coming
The handcrafted Memory Bears, made from material provided by customers, have become a popular offering. much everywhere people didn’t threaten to hurt me,” she laughs. Their website www.katobears.com has provided an avenue for orders. “We can’t do alterations on the Internet, but we can do bears.” Most bears cost between $60 and $100, Marben says. It depends on the amount of time it takes to craft the bear. “Many of the bears look like they are wearing clothes,” Marben says, “but it’s actually part of the bear.” If needed, clothing can be made for the bear to wear, but it adds a lot to the cost because of the time involved. “That’s not something we push,” says Marben. Breitbarth and Marben have a pattern they use to create the bears. The amount of fabric available determines the size of the bear. They purchase foam stuffing in five-pound boxes, and that’s enough to generally make about two and a half bears, according to Marben. There is always a story about each memory bear they create, and there is always an emotional reaction when people come to pick them up. Often, Breitbarth says, they burst into tears. Breitbarth herself has a story about a memory bear she created. Her daughter’s fiancé lost a dear friend. Breitbarth offered to make a bear for her future son-in-law, and one for the mother of the friend. Her daughter was lukewarm to the idea,
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she recalls. “She said, ‘A bear? Really? Well, OK, I guess. I’ll ask,’ ” she recalls. The friend had several tattoos on his arms, and those tattoos were incorporated onto the arms of the bears. “I’ve seen him actually talk to that bear,” says Breitbarth. “I wouldn’t be surprised to see that bear at the wedding.” While many stories about orders for bears tug at the heartstrings, one in particular stands out for both women. A woman brought in the army camouflage clothing of a brother lost in the war. She wanted bears for several siblings and her mother for Christmas. “I finally finished them on the last day we were open before Christmas,” Breitbarth recalls. I tried calling everyone on the list, and I finally found someone to leave a message with. They called just before I was leaving town, and I came and got the bears to her.” “It was their first Christmas without their soldier,” Marben recalls. Though the pattern used for the bears is the same, every bear is different. “The way the fabric is cut can make the difference between a sad bear and a happy bear,” says Breitbarth. “Making a bear is a lot like having a kid,” she says. “You never know what they are going to look like until you see them.” MV
Keith Balster Branch Manager, Mankato Location
Matt Zebro Vice President, Commercial Lending
1601 Adams Street, Mankato, MN 56001 • PO Box 310, 53 1st Street SW, Wells, MN 56097 800.944.5869 • www.wellsfederal.com
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All in the Family Scott and Brittney Anderson purchased the former Bowlero Lanes bowling alley in St. Peter and renamed it KingPin’s. The new venture has consumed much of their time since their marriage in September.
King (and Queen) of the pins Bowling, for fun and business, fills couple’s life at KingPins By Sara Gilbert Frederick Photos By Pat Christman
44 • FEBRUARY 2012 • MN Valley Business
I
opened the business on August 1 — just weeks before their September nuptials — and still managed to leave town for their honeymoon. “We’ve got good employees,” Scott says. Even with those employees, though, Scott and Brittney have spent much of the first few months of their married life at the bowling alley. But they wouldn’t have it any other way. MN Valley Business: Start at the beginning and tell me how you came to be owning this business. Scott Anderson: I had been bowling here for four or five years and I heard through the grapevine that it might be for sale. My family had owned two bowling centers in the Cities, and I had come to Mankato to bowl in college and worked at the bowling alley there. I actually run the bowling center at the University now too. So I guess it’s bowling 24/7 for me. And poor Brittney got roped along in it. MVB: So you both are working full-time day jobs now too? Brittney Anderson: Yes, we both work other jobs. So right now, we’re open from 5 p.m. to midnight during the week, 10 a.m. to midnight on Saturdays and Sundays noon to 6 p.m. We’re looking at this first year as a test year, to see how that works. SA: Most bowling centers are open all the time, but the peak hours are definitely at night. Someday, we’d like to be able to get back to being open all day; that’s our goal. MVB: It sounds like you must be spending a lot of time here, then. BA: We do have a few employees; we have five right now, and we’ll have more once the kitchen in open. We try to take Sundays off, and there are a few other days when we’ll have our employees close. SA: We do work a lot of Saturdays, and those are long days. I knew that going in, that holidays and weekend would be busy, and I tried to prepare her for that. MN Valley Business • FEBRUARY 2012 • 45
All in the Family
t seems appropriate that Scott and Brittney Anderson, who got married in September, met in a bowling alley. The two met at the Maverick Bullpen — the bowling alley and game room at Minnesota State University. Brittney was working part-time at the Bullpen while pursuing her undergraduate degree in marketing; Scott was at first competing as a member of the university’s men’s bowling team and later coaching that team, which he still does today. “Bowling has always been part of our relationship,” Brittney says. Since last July, it’s been an even bigger part. That’s when the couple purchased the former Bowlero Lanes bowling alley in St. Peter, renamed it KingPin’s and spent less than a month renovating the building. They
All in the Family BA: But it’s fun to be here together. It doesn’t bother me. MVB: When you decided to buy this business, did you discuss who would be doing what? BA: We just knew that we would work together and that we’d figure it out together. Running a business is new for both of us, but Scotty is the bowling pro and he fixes everything. My degree is in marketing, and I do most of our marketing. But otherwise, we do everything together. MVB: How has it been working together so far? BA: We’re definitely a good team. We both have our own strengths, and they work well together. SA: I agree. We work well together. There are a lot of things I don’t like to do that she does, and vice versa. MVB: You bought an existing business; how have you two put your mark on it so far? SA: There’s a new name, a new logo, all new color schemes. BA: And new TVs — and if you come in tomorrow, we’ll have cable too. SA: We really turned it over, so it’s pretty much a new place — new chairs, new tables, all of that.
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MVB: Scott, you’ve been involved with bowling alleys most of your life. How is it different now that you are an owner? SA: Just being in charge, knowing that the buck stops here. I’ve done it all before, but now I’m in charge. MVB: And you are both still finding time to bowl for fun? BA: Sure. I’m in a mixed league on Thursday nights, which is fun. Scotty has to work when I’m bowling, and I work when he bowls. SA: I bowl on Wednesday nights here, and fill in occasionally on Fridays in the Twin Cities. BA: I’m more in it for fun, but Scotty has more skill and is more competitive. MVB: Can you imagine a time when you might get tired of all this bowling? SA: I’m scared that some day it will hit me, but for now, it’s all very different. At the University, I work with classes and open bowling; here, it’s leagues and tournaments. They’re very different. And, I love the coaching. That’s my big passion. MV
Clear vision Profile
Carlson-Tillisch focusing on sight for 100 years By Marie Wood Photos By John Cross
Wendy LaFavor has been with the clinic for 43 years.
F
or 100 years, Carlson-Tillisch Eye Clinic has been helping people in southern Minnesota see better. The practice, built by multiple generations of the Tillisch and Carlson families, continues under the leadership of Dr. John Lach and Dr. Matt Downs, but the mission for better vision remains clear. In 1999, Lach joined Carlson-Tillisch and practiced with Dr. Dale Carlson and Dr. Skip Tillisch. When Tillisch retired in 2004, Lach bought in to the practice and became partners with Dale Carlson. “Patient care was always put at the forefront. That was definitely appealing to me,” said Lach. In 2004, Downs joined the practice and when Carlson retired in 2008, Lach and Downs became co-owners and partners. They chose to keep the Carlson-Tillisch name. “It has a good name and you don’t get that overnight,” said Downs. “Patients do hold you to a higher standard. More is expected of you, but it’s positive.” Carlson-Tillisch is known for comprehensive eye exams, personal customer service, and a full scope of optometry services. Along with oneon-one fittings and a large selection of frames and contact lenses, the clinic can diagnose and manage glaucoma, cataracts, dry eye syndrome, and other conditions. “In addition to the quality products and a large selection of fashion eyewear, we strive to provide personal service and care along with
Optometrist Matt Downs, co-owner of Carlson-Tillisch.
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cutting edge technology. We try to give our patients the best of both worlds,” said Lach. Carlson-Tillisch now has four optometrists with the addition of Dr. Tracye Eiselt and Dr. Bridget Boyle and more than 20 employees. Plus there are two locations — downtown Mankato and New Ulm. While optometrists do not perform surgery, they can prescribe medications, and offer surgery evaluations and post-care for cataract and laser eye surgery. At Carlson-Tillisch, they also educate patients during exams. “We try to provide the highest quality, most thorough eye exam we can,” said Downs. That means investing in the latest technology. Both offices offer an Optomap Retinal Exam, which is an imaging device that shows a precise and detailed view of the eye without dilation. The clinic also has an Optical Coherence Tomography machine, so doctors can get a microscopic look at the back of the eye to identify conditions such as glaucoma and macular degeneration. Carlson-Tillisch also provides emergency eye care visits for objects or chemicals in the eye, infections, retina detachment, scratches and other urgent issues. Optometrists are on call evenings and weekends.
Long history
Around 1910, Stanley Tillisch opened an eyeglass shop in downtown Mankato. Some days, he would hop a train to Waseca or Sleepy
Contacts bring big change
Wendy LaFavor, now a contact lens technician at Carlson-Tillisch, is celebrating 43 years there. Harold Carlson hired LaFavor as a secretary in 1969. She took shorthand, typed records and invoices on an old manual typewriter, and kept the books. “It was a one doctor, one girl office. I was called ‘the girl,’ ” said LaFavor. LaFavor doesn’t take shorthand anymore, the office is long since computerized and staff is transitioning to paperless records. She has also experienced major technological advances. When LaFavor began her career, hard contact lenses were the only
■
Carlson-Tillisch Eye Clinic
Owned by Dr. Matt Downs and Dr. John Lach Member of Greater Mankato Growth Collects eyeglasses for the Lions Club Members of American and Minnesota Optometric Associations option. Today there are soft contact lenses and disposable ones too. “Now there are different kinds of contacts to fit anybody, any problem, any situation,” said LaFavor. In 1957, Bonnie Cornish was a patient of Harold Carlson when she got her first pair of bifocals at age 5. As a teenager in 1965, Bonnie worked for $1 an hour at the grocery store in Nicollet to save up for her first pair of hard contact lenses. “I worked a whole summer for my first pair of contacts,” said Cornish of Mankato. Cornish is now a patient with Carlson-Tillisch. Some years ago, her eyesight was failing so after testing to ensure nothing was medially wrong, Downs and LaFavor worked together to find a prescription and contact that solved the problem. Now Cornish wears disposable contacts and reading glasses and sees better than she has in years. “I would never go anywhere else. They have been so good to me over the years,” said Cornish. Patients like Cornish often thank LaFavor for taking the time to fit them with a contact lens. LaFavor also knows her patients by name and has treated their children too. “People will bring in their children for a contact fitting and they will tell me I helped them pick out their first pair of glasses or fit them for contacts in grade school,” said LaFavor. MV
The staff of Carlson-Tillisch, which is celebrating 100 years in business.
MN Valley Business • FEBRUARY 2012 • 49
Profile
Eye to provide eye exams and glasses. He would set up his equipment in a hotel lobby and return to Mankato the next day. In those days everybody got the same frame and the cost was about $3. Eventually Stanley Tillisch’s son joined the practice. Then grandson, Skip Tillisch, carried on the family optometry clinic. As for the Carlson family, Harold Carlson entered optometry during the Depression. While working for a grocer and butcher on Front Street, he met a local optometrist who showed him how to determine an eyeglass prescription. Harold Carlson put his wages into a postal savings account and saved for optometry school. When the stock market crashed and the banks went bankrupt in 1929, Carlson still had his money, said his son Dale Carlson of North Mankato. Harold Carlson studied at the Needles Institute of Optometry in Illinois. He returned to Mankato and opened his practice in the Brett’s Department Store Annex in the 1930s. Harold Carlson practiced into his 80s and lived to be 96-years-old. In 1970, Harold Carlson and Dorland formed the Optometric Vision Center. Dale Carlson joined the practice at that time. Then in the 1980s, Skip Tillisch and Dale Carlson merged their practices and moved to the current office in the Midtown Mall on Main Street.
Business Memos/Company News
Affordable Towing receives Ace Award
HickoryTech rings closing bell HickoryTech Corp. officials were in the spotlight Jan. 9 as they rang the closing bell for the NASDAQ Stock Market in New York’s Times Square. John Finke, president and chief executive officer (third from the right) was joined by other HickoryTech and NASDAQ officials for the event. Also pictured are from left to right HickoryTech marketing director Jennifer Spaude, CFO Dave Christensen and his wife Jill Evans and next to John Finke is his wife Tammy. Kevin Cosgrove is the NASDAQ official on the right. ■■■
Thom made partner at Abdo Andrew Thom has been promoted to partner, according to Steve McDonald, managing partner of Abdo, Eick & Meyers. Thom has more than 10 years of experience serving the tax, accounting, and consulting needs of privately held businesses and their owners. He specializes in the manufacturing industry and is also a Certified Fraud Examiner providing forensic accounting for all industries. Thom is a member of the Minnesota Society of CPAs, American Institute of Certified Public Accountants and the Association of Certified Fraud Examiners. ■■■
Lee Williams earns designation Lee Williams, with Farmers National Co. of Lake Crystal, has been awarded the Accredited Farm Manager designation from the American Society of Farm Managers and Rural Appraisers. The designation is given to 36 percent of ASFMRA membership. Accredited Farm Managers are specifically educated and experienced in agricultural management and understand efficient production and profitable marketing. ■■■
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Bruce Macrafic of Affordable Towing in Mankato has received the American Towman ACE Award for achievement in service performance. Recipients were nominated by the nation’s major motor clubs and dispatch centers. The guidelines for the award include the highest percentage of calls when the estimated time of arrival is achieved, consistency in response times, written appreciation from customers, and percentage of call serviced (instead of turning them away). ■■■
MSU, UP Bank join forces The College of Business at Minnesota State University and United Prairie Bank in Mankato will work together on a new Integrated Business Experience program in the spring semester. The IBE program gives students real-world experiences in running a business. The experience includes developing the organization, securing financing and delivering a product or service. All profits, combined with volunteer work, will be donated to a local charity. “The IBE is an innovative program designed to mesh traditional learning with real-world thinking,” said Joseph Reising, chair of the finance department. The student-run company will include managerial, operational and financial roles, among others. Students will present a business plan to obtain a loan from United Prairie Bank in Mankato and then will manage the business and pay back the loan. If the business is a success, the net profits will be donated to a local charity. “We are very excited to be working with the college of business and assisting the students in a hands-on experience in developing and running a business,” said Michael Laskey, market president for United Prairie. Visit www.cob.mnsu.edu.
To submit your company or employee news, e-mail to editor@mankatofreepress.com. Put “Business memo” in the subject line. Call or e-mail Associate Editor Tim Krohn at tkrohn@mankatofreepress.com or 344-6383 for questions.
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