MN Valley Business by Free Press Media

The Definitive Business Journal for the Greater Minnesota River Valley November 2020

Harold Wolle farms with his son Matt near Madelia. Photo by Pat Christman

Bountiful harvest Great summer, rising prices buoy spirits Also in this issue • CUSTOM CRAFT CABINETS OF MANKATO • MOUSSE SPARKLING WINE CO. OF JORDAN • KATO YARN COMPANY

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F E A T U R E S November 2020 • Volume 13, Issue 2

After two years of poor harvest conditions and low crop prices, the area ag economy got a boost this fall with a great crop and rebounding prices.

Shelly Huls was always fascinated with knitting and turned her passion into a home-based business - Kato Yarn Company - where she hand dyes yarn.

Josie Boyle creates a variety of sparkling wines and seasonal drinks at her Mousse Sparkling Wine Company in Jordan.

Brent Olson, owner of Custom Craft Cabinets, works closely with his customers to give them the specially designed cabinets they want.

MN Valley Business • NOVEMBER 2020 • 3

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NOVEMBER 2020 • VOLUME 13, ISSUE 2

By Joe Spear

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

■ Local Business memos/ Company news....................................5 ■ Business Commentary........................7 ■ Business and Industry trends .........22 ■ Retail trends ....................................23 ■ Agriculture Outlook .........................24 ■ Agribusiness trends.........................25 ■ Construction, real estate trends ....26 ■ Gas trends .......................................27 ■ Stocks ..............................................27 ■ Minnesota Business updates...........28 ■ Job trends ........................................28 ■ Schmidt Foundation ........................30 ■ Greater Mankato Growth .................32 ■ Greater Mankato Growth Member Activities ...........................33

From the editor

Mankato retail, restaurants took COVID hit this year

But some recovery peeking through

f we were to use a good Minnesota-ism to describe retail and food business in Mankato we could say: “Bad, but not too bad.” At least that’s what the local sales tax and food and beverage tax collections would tell us in this pandemic-related business environment. Surprisingly, business has not been all down since the shutdown in March. Most businesses shut down around March 17, and April and May were big down months for the Mankato sales tax collections. Retail trade was off about 9.4 percent in April and about 15 percent in May compared to the same months a year ago. Business started to come back in June when some stores were re-opened partially. Business was only off about 5 percent in June. But in July, business took another hit with retail down 13.6 percent. But there’s good news in August. Retail sales, as measured by the local sales tax collections for Mankato, were actually up 12 percent compared to last August. That was led by a 20 percent increase in vehicle sales. A similar pattern played out for the Mankato food and beverage industry, as measured by the local food and beverage tax. The food and beverage sales were walloped by the hard April shutdown, with sales plummeting 60 percent, while statewide sales were down 56 percent. May wasn’t much better with sales down by 54 percent. With some re-opening in June, sales came back a bit to only be down 38 percent compared to a year ago. Business starting coming a back a little more in July with some re-opening and declines were only off about 27 percent. August got better with sales only

4 • NOVEMBER 2020 • MN Valley Business

off 15 percent. By August, statewide sales were down 26 percent. Still, some 100,000 restaurants nationwide have shut down since March, according to the National Restaurant Association. Some 3 million workers in the industry remain unemployment and the industry losses total $165 billion. But the hotel and lodging business continued to suffer even as retail and restaurants recovered relatively. The Mankato local lodging tax shows business plummeted in April by 81 percent. That’s not surprising given the stay-at-home orders and the shutting down of restaurants and bars. Business was off 70 percent in May and 66 percent in June, compared to a year earlier. July and August figures were not yet reported as this issue of went to press. Of course, employment numbers declined as businesses shut down. Employment fell 18 percent in March and April, but has since recovered where the latest report shows June employment was only 5 percent below last year. So there’s light at the end of the tunnel. Many businesses have adapted and mask wearing seems to have helped tamp down the spread of COVID-19, and as a result people have been going out once again. The target date for a vaccine appears to be the end of the year, but it may not be widely available until spring. Travel and lodging will likely have a longer down period as COVID worries still have many people hesitant to fly. The coming winter will pose its own challenges as we really haven’t had to stay inside a lot

during the pandemic that started with a warm March and a warmer spring. There’s likely to be more outbreaks. But the testing and tracing regiments seem to be in place, so that should help take some of the uncertainty out of the equation. At the same time, other businesses are seeing a boom. Home constr uction and remodelers are swamped with many having waiting lists until next spring. Outdoor dining seems to have picked up as well. In fact, the recent economic forecast for the state of Minnesota shows tax collections were not down as much as forecast. And while the state is still expecting a $2.4 billion overall deficit, revenue collections for the July to September period were $593 million above the May projection. IHS Markit, the state’s economic forecasting consultant, expects real GDP growth next year of 3.7 percent. That would be a swing from this year’s estimated 3.5 percent decline in economic growth, coming in part from a 34 percent decline in economic growth for the second quarter this year when COVID hit. The bad news of this forecast, however, is that it is based on the assumption that Congress will again issue additional unemployment benefits of $300 per week and provide taxpayers with another $1,200 each stimulus check. We can only hope. Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382. Follow on Twitter @jfspear.

Local Business People/Company News ■

UP’s Dehning honored

United Prairie Bank’s Chris Dehning has been awarded the Smarty for being the “Hero of the Year” for Small Business, an award given annually by SmartDollar to companies across the country who offer SmartDollar as a benefit. Dehning was honored for his work in helping employees at United Prairie manage their money. The program helps employees set goals, learn to budget, eliminate debt and build an emergency fund. ■■■

Pork Ambassadors named

The Nicollet County Pork Producers announced two youth to serve as this year’s P o r k Ambassadors. Aidan Bastian is the son of Joe and Natalie Aidan Bastian Bastian of Fairfax. Makayla Moline is the daughter of Rob and Gail Moline, of St. Peter. Both are involved in the Nicollet County 4-H Program and are actively Makayla Moline involved in the swine project. Pork ambassadors serve as the goodwill representatives for the pork industry doing appearances throughout the year promoting nutritious pork and the industry. ■■■

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Consolidated offers new plans

Consolidated Communications launched new flexible broadband Internet plans that offer simplified pricing without data limits to small and medium-sized businesses.

FiberConnect plans deliver symmetrical upload and download speeds up to 1 Gig in Consolidated’s fiber-based service area, and BizConnect plans deliver download speeds up to 100 Mbps in other areas. Flexible contract options enable businesses to lock in at one, two or three years. A no-contract option is also available. ■■■

Pioneer donates water

Pioneer Bank donated 5,000 water bottles to students at area schools for the start of the 20202021 school year. Due to COVID-19, water fountains in public spaces, such as schools, are not in use, however students are able to carry water bottles with them throughout the school day. The bottles we3re donated to many Mankato Area Public Schools, along with other area public and private schools. ■■■

Flanagan joins True

Carrie Flanagan has joined True Real Estate in a business development role. Flanagan is a Mankato native and served on Greater Mankato Growth boards, been Mankato MoonDogs host family program coordinator and served on a variety of Greater Mankato Area United Way committees. ■■■

Primrose honored

Primrose Retirement Communities earned a 2020 Employee Approved award from Lincoln, Nebraska–based healthcare-intelligence firm NRC Health. The award recognizes seniorcare organizations across the countr y for engaging and inspiring their employees.

MN Valley Business • NOVEMBER 2020 • 5

Kato Insurance honored

Midwest Family Mutual Insurance Company of Des Moines has named Kato Insurance to their President’s Club. The award recognizes outstanding continued service to customers and community and superior performance. This is the 10th consecutive year that Kato Insurance has received the award. The agency is owned by Scott Michaletz, Jon Michaletz, and Matt Michaletz. ■■■

Anderson joins Pioneer

C h e t Anderson has joined Pioneer Bank as a vice president/ business banker. Anderson has 13 years of experience in f i n a n c i a l ser vices to Chet Anderson b u s i n e s s customers, including structuring commercial real estate, fixed assets, SBA financing and cash management. He is involved in numerous community organizations.

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Business Commentary

By Harvey Mackay

Ambition puts a ladder against the sky

.S. President Calvin Coolidge was very skillful at turning away any questions he didn’t like. However, in 1928, after Coolidge issued his famous “I do not choose to run” statement, a persistent reporter looking for more details followed Coolidge to the door of his library. “Exactly why don’t you want to be president again?” the reporter asked. Coolidge looked the reporter squarely in the eyes and replied, “Because there is no chance for advancement.” Does that mean that Coolidge had no ambition? Hardly. He was just a man of few words, and he wasn’t about to waste any on an overly ambitious reporter. Ambition was once condemned as unnatural or even immoral in much of the world. However, in the modern world and particularly in America, we have come to idealize self-made figures. People like steel magnate Andrew Carnegie and oil tycoon John D. Rockefeller who, without education or status, transformed the scale of business corporations. Or Frederick Douglass, the ex-slave who became a learned and articulate advocate for his people. And Elizabeth Arden, the cosmetics icon who built an empire on beauty. America was settled by generations of immigrants who came here with a burning ambition to make something of themselves and their families. These men and women had the broadest range of opportunity in the world, so it’s logical that ambition should flourish in America. This ambition is essentially what the Declaration of Independence described as “the pursuit of happiness.” Let’s face it, ambition requires hard work. Most people want to improve themselves, but not too many want to work at it. I’m a proud member of the Horatio Alger Association of Distinguished Americans, named for the renowned author whose tales of overcoming adversity through unyielding perseverance and basic moral principles captivated the public in the late 19th century. His writings were characterized by a “rags-to-riches” narrative. If you are looking for a job, part of the process is to show your prospective new employers that you are ambitious. You can’t just say you have ambition; you have to demonstrate it. You’ve accepted challenges. You’ve made things happen. You have a lot to be

proud of. And you can make a contribution to the company. But having ambition alone is not enough. You have to know what you want, if not specifically, at least generally. You need to know what you value. The best place to start is to identify times when you were happy, proud and fulfilled, according to advice from the Mission website. Look for common denominators to determine what your true values are. Focus on your strengths, not weaknesses. Everyone has weaknesses, and those can’t always be overcome. But they are only a problem if you let them become an excuse for not pushing forward. When you look to your strengths, you can form goals that allow you to maximize your best points. Ambitious people usually know how to ask for help to keep growing. Maybe someone can offset your weaknesses and help you develop your strengths. And return the favor. Helping people breeds loyalty and support. Follow your dreams. Once you have decided what your ultimate goal is – for now – make a plan and get started. It may not happen overnight, but it won’t happen at all unless you take the first step. As Henr y Ford said, “The whole secret of a successful life is to find out what is one’s destiny to do, and then do it.” And then set even higher goals. A man picked up a hitchhiker, a young fellow who looked like he’d been traveling for a while. The two started a conversation, and the driver asked his passenger about his plans for the future. The hitchhiker explained he was hiking around the country, camping and taking in the sights. Then when he returned home he planned to make a fortune in the tech industry. He had an idea that was going to make him a millionaire. “Do people really do that?” asked the driver. “Make money in the tech world? Sure,” came the reply. “No,” the driver said. “I mean, do they take the time out from life instead of getting to work on making their dreams a reality?” There is no time like the present to put your ambition to work.

Mackay’s Moral:

Everyone should take some time daily to look at the road map of their ambition.

Harvey Mackay is a Minnesota businessman, author and syndicated columnist. He has authored seven New York Times bestselling books

MN Valley Business • NOVEMBER 2020 • 7

Harold Wolle backs equipment near a soybean field.

Great finish Fall harvest brings good news for ag By Tim Krohn | Photos by Pat Christman

his was the fall that area farmers had long waited for. A near perfect growing season and a dry September and October allowed for a quick harvest and strong yields. Harold Wolle, who farms with his son Matt near Madelia, said the two previous years were a trifecta of bad news — cold wet springs, wet falls and low crop prices. “In 2018 I told my son, don’t worry 2019 will be better. But it was worse,” Wolle said. “But now we’re getting a good crop.” Kent Thiesse, farm management analyst and vice president at MinnStar Bank in Lake Crystal, said the 8 • NOVEMBER 2020 • MN Valley Business

merging of great yields and higher prices is a welcome relief. “For many farmers 2019 was the worst they’ve ever had in their farming history. And to turn around and have one of the more favorable years shows how extreme things can be.” Andy Oak, who farms near Le Center, said the good fall will bring some relief to those farmers who are on shakier ground financially. “We got kicked around pretty good by Mother Nature the last couple of years. This will help heal some financial ills from the past couple of years,” Oak said.

Cover Story

Harold Wolle, who farms with his son Matt near Madelia, said this year’s good harvest was a relief after two bad years. While most farmers still have fairly strong financials, some are struggling, both financially and emotionally. Deacon Tim Dolan, of the New Um Diocese and a former Extension educator, has for years counseled farm families in distress. He said that in the first months of the pandemic his services were sought out. “I was probably talking to three to five families a day. Now it’s down to a few a week,” Dolan said. He said the number of mediations between farm families and their lenders also has crept up as a couple of years of low commodity prices and now the pandemic caused more families to fall behind on payments. Soybean prices were pushed up in early fall as China began buying more beans as agreed to in the Phase 1 trade agreement it made with the United States.

Rising exports mean there may well be record U.S. exports to China over the next year. But that record volume doesn’t mean the goals of the Phase 1 agreement will be met. That’s because the trade deal goals are based on the exported value of soybeans sold and while recently higher soybean prices are still lower compared to most prior years. And Wolle said continuing trade war posturing is still harming the sale of soybean and corn byproducts. “The tariffs are still in place so there isn’t any ethanol or dry distiller grains going to China. We’d like to see those tariffs lifted so it’s economical for China to purchase,” said Wolle, who serves on the board of the National Corn Growers Association. The pandemic hammered livestock farmers hard as

“It has been an interesting year, to say the least. Certainly within agriculture and within the pork industry it has been something one would never have imagined.” restaurants and food services shut down, dramatically cutting demand. Glenn Stolt, CEO of Christensen Farms near Sleepy Eye, said things have rebounded some but the effects of the pandemic, short and long term, continue to play out. “It has been an interesting year, to say the least. Certainly within agriculture and within the pork industr y it has been something one would never have imagined.” Christensen is one of the

MN Valley Business • NOVEMBER 2020 • 9

some confusion among consumers because the fuel is labeled both E15, which refers to the percent of the mix, and as unleaded 88, which refers to the octane of the ethanol-gas blend. “So corn growers tr y to continue to educate the public on the different blends of ethanol and what will work good in their vehicle.”

Hog industr y upended

Christensen Farms, headquartered near Sleepy Eye, is one of the largest family owned hog operations in the country. largest family-owned pork producers in the country and has ownership stakes in processing plants.

Ethanol lagging

Ethanol sales in general have been lackluster for a couple of reasons. The pandemic reduced the amount of ethanol-blended gasoline sold as people drove less and the Trump administration has increased a program that gives waivers to small gas refineries, allowing them to not blend as much ethanol into gasoline. Recently, fewer waivers have been given to refineries by the Environmental Protection Agency, but Wolle said the previous waivers that are still in place mean less ethanol is being blended. Still, he thinks one of the biggest obstacles to ethanol —

reluctance by some to use it in higher blended levels in gasoline — is being relieved as consumers are more comfortable with using it in their vehicles. In the early years ethanol was blended at 10% into gasoline but now is often blended at a 15% ratio — often referred to as E15 or unleaded 88 octane gas. “Our 15% continues to be a popular product. As we get more consumers who use E15, we will have more growth. It’s good for consumers, it’s good for ethanol, it’s good for corn growers, and it’s a cleaner-burning fuel for the environment,” Wolle said. He said ethanol also had to overcome misinformation about ethanol damaging engines. The EPA has approved ethanol for all vehicles that are 2001 or newer. And, Wolle said, there was

10 • NOVEMBER 2020 • MN Valley Business

While a global pandemic was on no one’s radar, Stolt said a growing concern about African swine fever in some ways helped Christensen Farms and other producers to move quickly to react when the pandemic hit. ASF is not dangerous to humans but it is fatal to pigs. A huge outbreak of the swine fever in China, the world’s biggest pork producer, and elsewhere in Asia led to massive changes in global pork trade flows. It recently broke out in hog herds in Germany. “As an industry we’ve been working very hard the past few years to prepare for an ASF event. That is still viewed as a significant threat to our industry. But I think the work that had been done by the industry and our team at Christensen Farms has paid a benefit.” He said some of the preparations for big impacts in their operations and the market because of a potential ASF outbreak were used to move rapidly when the COVID-19 pandemic hit. “We got on it quickly, but we weren’t able to mitigate things completely.” When demand for pork ground to a near halt within food service and processing plants had to close, Christensen and other producers had to euthanize portions of their herds because they had nowhere to sell them. They also shifted quickly to focus on the cuts of meats and types of pork products that were seeing higher demand in grocery stores, while scaling back on the types of products sold to the food service industry where demand had flagged. “Sitting here today I really applaud our team here and what we did and how we did it. We got

A farmer harvests corn in a field near Nicollet. Farmers reported great yields after a good growing season. Prices were also on the rise this fall. as much product into the food system as possible even though a lot of the (processing) plants we would deliver to were shut down or partially shut down,” Stolt said. He said that, overall, the processing facilities in the country are back to 95% or more of their pre-pandemic capacity. But he said parts of the processing supply chain remain challenged by difficulty finding enough workers. “We were dealing with a labor shortage before COVID and certainly more so now.” The USDA reported that the U.S. inventory of all hogs and pigs on Sept. 1 was 79.1 million head. That was up 1% from a year earlier but down 1% from June 1 of this year. The number of breeding hogs, however, was down 2% from a year earlier. Stolt said he and others in the industry are still waiting to see what hog inventory will be longer term. “The question is it a permanent reduction or a temporary reduction? I think we are in the early innings as an

industry in seeing the effects of this pandemic.” He said that even before the pandemic the industr y was seeing pressure from plant-based proteins and a push by some to eat less meat. “We still think the nutritional elements of our product, as to how it fits into diets of Americans

“Sitting here today I really applaud our team here and what we did and how we did it. We got as much product into the food system as possible even though a lot of the (processing) plants we would deliver to were shut down or partially shut down,” Stolt said.

of all ages, is critically important,” Stolt said. Hog prices remain volatile. They came down early in the pandemic and then rose some but remained below-normal levels until recently due to ASF hitting markets in Germany. “We’re feeling better at where we’re at today,” Stolt said. MV

Glenn Stolt, CEO of Christensen Farms.

MN Valley Business • NOVEMBER 2020 • 11

Shelly Huls, of Kato Yarn Company, with some of her hand-dyed yarn.

12 • NOVEMBER 2020 • MN Valley Business

Artistic home business Huls creates hand-dyed yarns

By Katie Roiger Photos by Pat Christman

ripping it out.” hat is it about making handmade clothes? Huls’ passion for all things knitted began when Is it knowing that thought and care went she was a young girl visiting her grandmother. On into its creation rather than simply one trip, she found a collection picking it from a store’s shelf? of knitting needles and begged Or is it the pleasure of knowing to be taught, but her grandma, that the item is one-of-a-kind, who only crocheted, couldn’t something that can’t be instruct her. Although it was duplicated? For Shelly Huls, creator of the KATO YARNCOMPANY several more years until she Facebook: would teach herself to knit, Huls Kato Knitting Company, it’s both Kato Yarn Company vividly remembers her original – and more. Etsy: fascination. “I’m either knitting or sewing KatoYarnCompany Once she began to knit, Huls or spinning,” Huls said about her couldn’t seem to stop. Having creative hobbies. “I love making three children for whom to make sweaters and things. I love having that finished project, and if I socks certainly fed her interest. make a mistake on something, I don’t mind

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MN Valley Business • NOVEMBER 2020 • 13

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After she had been knitting for 20 years, Huls began to notice a new trend in the needlecraft world. With the rise of Etsy and a resurgence of interest in handmade crafts, hand-dyed yarn was becoming the rage. “I saw a lot of hand-dyed yarn on social media,” Huls said. She enjoyed the colors and was curious about the technique. Several YouTube tutorials later, she decided to give it a try. It turned out there were several different ways to achieve that unique, hand-dyed look. In her quest for a beautiful product, Huls tried many methods. Some techniques were as easy as covering her countertop with plastic wrap to protect it, setting the yarn on top and squirting it with dye, and setting the color in the microwave. “I love the results. It’s a variegated color that you get – it’s not just one solid, boring color.” Huls tried several different kinds of dye, even Easter egg dye, before settling on commercial acid dye. Currently, her favorite way to dye yarn is the stove method. When preparing a batch, she heats pans of water on the stove until they begin boiling. She then places undyed yarn inside, and adds her dye. When the water turns clear, the yarn has absorbed all of the color and she knows that it’s done. “It’s easiest for me with the type of dye that I use,” Huls said. “I’m not saying that I’m limiting myself to one type of dying, but I’m experimenting with the pan dying right now.” A simple batch of stove-dyed yarn can take as little as 15 minutes to create. The longest Huls has spent on a single project has averaged around an hour or two, depending on how many layers of colors she uses. After it is finished, she hangs the yarn outside on her clothesline. If the weather is poor, she keeps it inside and sets it under a fan. Huls has especially enjoyed manipulating her dyes to try to

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Shelly Huls dyes yarn on her stovetop inside her Mankato home. predict how the yarns will look when knitted. She has developed a knack for planning ahead when it comes to determining color patterns in her own knitted creations. “If you’re knitting a sock with a smaller circumference, you’re going to have more likelihood of striping, whereas if you’re knitting a hat or sweater with a bigger circumference, the colors can pool,” Huls said. “When you’re using hand-dyed yarn, you kind of have to look at how it’s dyed in relation to how you want it to look on your project.” Although Huls began her dyeing project purely for the fun of it, she also realized her engrossing hobby had the potential to become something more. “I just knew that I really enjoyed the dyeing and creating process, and knew that I would have to look for some outlets to recoup some of my loss,” Huls said with a laugh. She set up a shop on Etsy,

named Kato Yarn Company, and began selling online. She also began visiting local vendor shows with her wares and was happy with the positive response from customers. When selling products, Huls mainly works with wool yarns. Lately, Huls said she has noticed that the wholesalers who supply her yarn have been experiencing shortages. “Undyed yarn is getting really hard to find,” Huls said, adding that she is still able to create enough to sell. Although this year has posed challenges to star tup businesses, Huls said that she would enjoy expanding her company in the future. She has considered the possibility of a boutique storefront but does not have any set plans for a physical presence yet. “I’m just having so much fun dyeing the yarn and working with the yarn,” Huls said. “Right now, I’m having a blast!” MV

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Josie Boyle creates a variety of sparkling wines at her Mousse Sparkling Wine Co. in Jordan.

Bubbly success Mousse Sparkling Wine Co. opens in Jordan

By Katie Roiger | Photos by Pat Christman

innesota native Josie Boyle doesn’t wait Boyle’s love for wine has been a lifetime in the until New Year’s Eve to break out the making. As a French major in college, Boyle spent a bubbly: Any day she gets to make sparkling semester abroad in Paris learning the language and wine at her newly founded immersing herself in the Mousse Sparkling Wine Co. is culture. Wine, she discovered, a great day to celebrate with a is an important part of the fizzy drink. French culinary experience, “I love taking juice from the from wine types, to food MOUSSE SPARKLING grapes on the vine and getting a pairings, to the simple joie de WINE really delicious wine out of it!” vivre that comes from sharing 115 1st St. E., Jordan Boyle said. “I just really love an excellent bottle with friends. moussewinery.com seeing the before and after, and Back home in the United Tasting room hours: how much that grape juice States, Boyle never expected 2-8 p.m. Mondays and Thursdays changes, and how much I can that her interest in wine would 12-9 p.m. Fridays spin into a full-fledged career. affect it with my techniques.” 16 • NOVEMBER 2020 • MN Valley Business

Profile

Instead, she spent several enjoyable years as a librarian until she signed up for a wine appreciation class at a local community college. That one class spiraled into several more courses on winemaking and grape growing, and Boyle found herself becoming steadily more engrossed in the world of wine. She decided to quit her library job and start working for wineries. “My first real job was in New Zealand,” Boyle said. “I went for six months and got a really great experience there.” Her time at Vidal Estate, established in 1905 by a Spanish emigrant, provided her with the training she needed to know that wine was truly her passion. After leaving New Zealand, Boyle traveled to Suttons Bay, Michigan, to work for MAWBY Vineyards and Winery where she discovered a new love. “That winery was actually a sparkling winery: They didn’t make any still wines. That’s really where my love of sparkling wines began, working with those wines and seeing what styles of sparkling wines can be made.” Homesick for her home state, Boyle returned to Minnesota to work as the assistant winemaker

at Chankaska Winery near St. Peter, but she couldn’t forget her interest in sparkling wine. “My independent spirit kind of called me again,” Boyle said. “My husband and I decided it was time to go off and start our own winery.” They found a beautiful old building in Jordan, remodeled it to include a prep kitchen, winemaking space, and tasting

bar, and started Mousse Sparkling Wine Co. “Mousse is actually the French term for the layer of bubbles on a glass of champagne, kind of like the head on a beer,” Boyle said. “It emphasizes that we are all about bubbles!” The winery’s logo, a wineglass between two moose antlers, also pays a playful homage to Boyle’s Minnesota roots.

MN Valley Business • NOVEMBER 2020 • 17

Mousse Winery’s Jen Wagner (left) and Josie Boyle bottle some of the winery’s sparkling wines.

Agriculture is the heartbeat of America – driven by those who cultivate the land and care for animals. Your hard work and dedication builds strength, integrity and character and is an inspiration for the next generation. Through your unrelenting passion and commitment, you feed a growing world – thank you!

18 • NOVEMBER 2020 • MN Valley Business

With their building ready to go, Boyle and her team immediately set to work creating fruity, fun sparkling wines using grapes from their self-run vineyard in Shakopee as well as ones purchased from local vendors.

alluring...

Different techniques

“The emphasis on sparkling wines really sets us apart. The plan is to expose our customers to the different types of wines that can be made with bubbles.” While Boyle does produce a still house white and red variety, the main focus will be on carbonated offerings. Mousse uses two different techniques to create its signature wines. The first technique involves injecting a still wine with ready-made carbon dioxide, a process similar to making soda pop. The second technique requires combining the still wine with sugar and yeast in a pressure tank. The yeast reacts with the sugar to create the desired carbon dioxide. “There are definitely different style characteristics,” Boyle said. “Carbonated wine tends to be a little bit fruitier, maybe a little bit lighter in flavor and more easy drinking. If you do it in a tank and let the wine age, it tends to be a little more full-bodied.” Regardless of creation style, both types are delicious when enjoyed on their own or paired with small bites. Mousse has meat and cheese trays available for guests to order while they enjoy their wine. Additionally, Boyle is partnering with nearby restaurant Suzette’s to offer crepe cakes. “They make them really fancy with about 15 layers of crepes and filling. They’re really good.” The Mouse Sparkling Wine Co. encourages locals to keep an eye out for upcoming special events and holiday parties, as well as new products. “I’m excited for the seasonal stuff. I have some ideas for maybe a cinnamon cider or a honey ginger in the winter. We have some fun stuff in the works.” MV

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MN Valley Business • NOVEMBER 2020 • 19

Brent Olson in the showroom of his Custom Craft Cabinets in downtown Mankato.

Custom Craft Cabinets Olson works closely with customers By Dan Greenwood Photos by Pat Christman

that, but it’s amazing how that technology f Brent Olson could give advice to himself when he first opened his really changes things.” Mankato business, Custom Craft A CNC machine is a complex piece of Cabinets, in 2012, he equipment that can make would have bought his cuts of wood and other computer numerical materials from a control machine right computer design, right away. down to its finest details. CUSTOM CRAFT “That’s the main The role of computers CABINETS workhorse of my shop,” has allowed Olson to 100 Minnesota St., Mankato he said. “It gets rid of a expedite the building Customcraftcabinetmn.com lot of different steps. I process, from the initial 507-995-9186 did it manually before drafts of a project right

Feature

20 • NOVEMBER 2020 • MN Valley Business

down to the assembly, before installing custom-made cabinets on site. “With the CNC machine, everything is within a millimeter, so the accuracy on that is really tight,” Olson said. “The CNC machine will cut all the box parts automatically.” But at the end of the day, it’s decades of experience and a willingness to troubleshoot with a flexibility to adjust to unforeseen circumstances that helps Olson stand out from the competition. His construction experience dates back to 1996, when Olson was working toward his college degree in communications. But when he graduated, he became more immersed in the construction trade, building and remodeling expensive homes through a contractor in Spirit Lake, Iowa. It was before the Great Recession hit in 2008 – when he relocated from Iowa to Missouri to manage a trimming business – that he began to focus on cabinetry specifically. When the recession arrived, fewer people were looking to renovate and remodel their homes and businesses as the economy contracted. Olson and his wife decided to relocate to Mankato so she could finish her college degree here. When word got out in the Spirit Lake region that Olson was less than a couple of hours away, he began traveling back and forth between the two communities building homes once again. But Mankato was feeling more and more like home and the commute was long, leading him to start his own business. Another cabinetr y business owner was retiring in Scandia and Olson bought all of his equipment. When a site next to Hy-Vee in downtown Mankato opened up, he knew it would be the perfect location. “I decided I didn’t want to do that traveling anymore,” Olson said. “I started out in my garage in Mankato. I just happened to walk by here quite often, and a year and a half later I bought this building in 2012.”

Brent Olson uses computerized woodworking equipment in his Custom Craft Cabinets shop.

Custom work

Olson does residential cabinetr y, primarily kitchens and bathrooms, but also builtins, garage cabinets, as well as commercial projects. “Being a custom shop, I can do anything here,” Olson said. He built and installed guest locker room benches and hanging shelves at what is now the Mayo Clinic Health System Event Center, as well as lockers for coaches and players of the Minnesota State University hockey team. “I don’t do much advertising at all,” Olson said. “Generally, most everything I’ve done is word of mouth, even still today.” That’s how Greg and Janine Tramp, of North Mankato, came to hire Olson to redo the cabinets in their kitchen last year. “Some friends of ours had their kitchen done before us,” Janine Tramp said. “We got a referral from them. When you hear from somebody through word of mouth that they were happy with his work, that makes a huge difference.” When he gets a new customer, Olson first asks them what kind of budget they are working with before sitting down with them to see what style they are looking for and then taking measurements at their home or business. “Cherry is very popular right now,” he said. “A lot of people in the mid 2000s were using a lot of

lighter oak colors, but we’re not seeing that anymore. I’m seeing a lot less distressed and glazed products. I see a lot of shakerstyle doors and that’s a nice style that won’t become dated as quickly as the other products.” When working on a new project, there can be unforeseen circumstances that may affect the price, but Tramp said Olson worked with them through every step, giving the couple options to ensure the project remained within their budget. When they discovered electrical wiring in a wall that they wanted to open up, Olson was transparent about the cost. “Throughout the whole process he was easy to communicate and work with,” Tramp said. “There were a couple times where he just led us in a different direction because we ran into heat ducts and soffits that would have been expensive (to remove). So we redesigned — instead of cabinets that went to the ceiling, he framed our soffits and made them look like the cabinets.” It’s that kind of hands-on experience and flexibility that plays a large role in the success of a business that began in a garage. “I just try to be as cooperative as I can with people and make things happen for what they want,” Olson said. MV

MN Valley Business • NOVEMBER 2020 • 21

Business and Industry Trends ■

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Energy Natural gas price down

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22 • NOVEMBER 2020 • MN Valley Business

In September, the Henry Hub natural gas spot price averaged $1.92 per million British thermal units, down from an average of $2.30 in August. Lower natural gas spot prices reflected declining demand for natural gas from the U.S. electric power sector as a result of cooler-than-normal temperatures during the second half of September and relatively low demand for U.S. liquefied natural gas exports amid hurricane-related activity in the Gulf of Mexico. Higher demand in winter should cause prices to rise to an average of $3.38 in January.

Coal production falls

EIA expects total U.S. coal production in 2020 to be 525 million short tons, compared with 705 MMst in 2019, a 26% decrease. COVID-19 and efforts to mitigate it along with reduced demand from the U.S. electric power sector amid low natural gas prices have contributed to mine idling and mine closures

CO2 still falling

U.S. energy-related carbon dioxide (CO2) emissions, after decreasing by 2.6% in 2019 from the previous year’s level, will decrease by 10% in 2020 as a result of reduced consumption of all fossil fuels. EIA expects emissions from coal will be down 19% from 2019 and emissions from petroleum will be down 13% from 2019.

More renewable power

Electricity generation from renewable energy sources rises from 17% in 2019 to 20% in 2020 and to 22% in 2021. The increase in the share from renewables is the result of planned additions to wind and solar generating capacity. EIA expects 3% declines in nuclear generation in both 2020 and 2021, reflecting recent and planned retirements of nuclear generating capacity.

Retail/Consumer Spending Vehicle Sales Mankato — Number of vehicles sold - 2019 - 2020 1500

Oil prices down

Brent crude oil spot prices averaged $41 per barrel in September, down $4 per barrel in August. The decrease in oil prices coincided with slowing increases in global oil demand. Month-over-month consumption rose by 1 million b/d on average during August and September compared with an increase of 4.1 million b/d from May through July.

Winter energy bills to be similar to ’19

On average, across the United States, households can expect heating expenditures this winter (October through March) to be higher than last winter, according to the U.S. Energy Information Administration. Compared with last winter’s heating bills, EIA expects households that primarily use natural gas or electricity will have slightly higher energy expenditures this winter, and households that use propane will spend 14% more. EIA expects households that use heating oil to spend 10% less than last winter. EIA bases its forecast of winter heating expenditures on its fuel price and consumption forecasts and the NOAA weather forecasts.

1,065 1,262

1200 900 600 300 0

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

Sales tax collections Mankato (In thousands)

- 2019 - 2020

600

$475,675

500

$532,827

400 300 200 100 0

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato $66,100

70000

- 2019 - 2020

$22,479

52500 35000 17500 0

EIA expects the average U.S. household to consume more fuel for space heating this winter than last winter. Based on NOAA’s forecast, this winter will be colder in the United States. In addition, EIA expects that ongoing efforts to reduce the spread of the coronavirus and more people working and attending school at home will contribute to higher levels of home heating use this winter than in previous winters.

Source: City of Mankato

Mankato food and beverage tax - 2019 - 2020 175000 140000

$68,804 $55,679

105000 70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business • NOVEMBER 2020 • 23

■

Agricultural Outlook

By Kent Thiesse

Ag industr y has big impacts on state economy

he results of the “2020 Economic Contribution Study of Minnesota Agriculture and Forestry” were released recently by Minnesota AgriGrowth. The study showed that even though the agriculture industry has faced some challenging times in recent years, the agriculture, agri-food, forestry, and related industries still play a significant role in Minnesota’s overall economy, supporting one in every ten jobs in the State. AgriGrowth collaborated with 25 other ag industry and forestry organizations to authorize the study that was conducted in 2020 by Decision Innovations Solutions (DIS), which has conducted similar studies in other States. Following are some key findings of the Minnesota Economic Contribution Study regarding the significance of agriculture, agri-food, forestry, and related industries to Minnesota’s overall economy. (The following data was based on 2019 figures in Minnesota.) n $37.1 billion in total value added to Minnesota’s economy; 9.9 percent of the State’s total. n $11.1 billion from ag processing and related industries. n $9.9 billion from livestock production. n $8.7 billion from crop production. n $7.3 billion from forestry and related industries. n 388,134 jobs in Minnesota related to these industries; 10.2 percent of the State’s total. n 126,218 jobs in the livestock industry. n 109,312 jobs related to ag processing and related industries. n 84,648 jobs related to crop production. n 67,956 jobs related to forestry and related industries. n $105.6 billion in total output (sales) in Minnesota; 15.2 percent of the State’s total. n $33 billion related livestock production. n $29.3 billion from ag processing and related industries. n $26.5 billion related to crop production. n $16.8 billion from forestry and related industries. n $21.4 billion in household income added in Minnesota. n Generated $7.5 billion in federal taxes (60%) and state & local taxes (40%).

24 • NOVEMBER 2020 • MN Valley Business

Minnesota ranks first in the United States sugar beet and red kidney bean production and in the number of turkeys raised. The State ranks second in market hog inventory and the value of hogs and pigs, as well as in sweetcorn, green pea, and wild rice production. Minnesota is also second in the U.S. in on-farm grain storage capacity. The State ranks third in the production of soybeans, spring wheat, sunflowers, and oats, as well as for the vegetable acres harvested. Minnesota also ranks high in corn, barley, canola, and potato production, as well as for dairy, cattle, and honey production. The State is also high ranking in ethanol production capacity, cheese processing, total cash receipts from farming, and net farm income. It is interesting to review the current demographics of farm operations in Minnesota, which is based on the 2017 USDA Census of Agriculture. There are 68,822 farms in Minnesota, with nearly 20,000 farms under 50 acres, nearly 17,000 farms at 260 to 999 acres, 4,182 farms at 1,000 to 1,999 acres, and 2,254 farms at 2,000 acres or larger. The last two groups account for a majority of the farm sales in the State. Based on the Census data, approximately 99 percent of the farms in Minnesota are owned by families and individuals, which includes family-based partnership and corporations. Less than one percent are owned by other corporations. Seven counties in Minnesota had total output from agriculture, ag industry, and forestry that exceeded $1 billion. Most of these counties are larger population counties and regional centers that have a significant amount of ag and forestry processing and manufacturing. The top counties in ag and forestry value-added output were: 1. 2. 3. 4. 5. 6. 7.

Hennepin - $4.3 billion Ramsey - $1.9 billion Dakota - $1.8 billion Stearns - $1.2 billion Blue Earth - $1.1 billion Rice - $1.1 billion Washington - $1 billion

Forty-four of Minnesota’s 87 counties receive 31% or more of the total economic activity in the county from agriculture, forestry and related industries. The

top 10 counties exceeded 65%, including several counties in South Central and Southwest Minnesota. The top 10 counties on a percentage basis included:

Agriculture/ Agribusiness

1. Watonwan County - 80% 2. Renville County - 76% 3. Jackson County - 75% 4. Murray County - 71% 5. Cottonwood County - 69% 6. Traverse County - 69% 7. Winona County - 69% 8. Koochiching County - 68% 9. Sibley County - 68% 10. Nobles County - 65%

Corn prices — southern Minnesota

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

— 2019 — 2020 8 20 100 16 6 85 12 4 70

(dollars per bushel)

$9.86

8 55 2 $8.59 4 40 0 0 J F M A M J J A S O N D 25 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Iowa-Minnesota hog prices 20 100 25 16 85 22 12 70 19 8 55 16 4 40 13 0 J F M A M J 25 10 J F M A M J J F M A M J Source: USDA

Milk prices

$63.70

$46.47 J A S O N D J A S O N D J A S O N D

$16.68

$13.14 J

22 19 16

Minimum prices, class 1 milk Dollars per hundredweight

— 2019 — 2020 25

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

185 pound carcass, negotiated price, weighted average

— 2019 — 2020

Soybean prices — southern Minnesota

$3.56

Source: USDA

12 8

$3.68

Thirty-seven counties in Minnesota have 31% or more of the jobs in the county generated by agriculture, forestry, and related industries, including 10 counties that were 47 percent or higher. Murray County topped the list at 63% of the jobs, followed by Watonwan County at 60%, and both Cottonwood and Renville County at 57%. Once again some of the larger population counties with significant ag 8 processing and industry generated the highest number of jobs. This included Hennepin County with 34,5086 jobs, Dakota County with 16,203 jobs, Stearns County with 16,043 jobs, and Ramsey County with 15,4274 jobs. Blue Earth County ranked ninth with 8,948 jobs related to the ag industry. This2 latest economic study once again verifies the significant importance that Minnesota’s agriculture and forestry industries, along with associated ag 0 J and F manufacturing M A M J industries, J A S play O inNtheD processing overall economy of the State. Interestingly, metro counties such as Hennepin, Ramsey, and Dakota, as well as regional centers such as Blue Earth and Stearns counties, had billions of dollars and 8 thousands of jobs generated by agriculture and 100 associated industries. In addition, many counties in 6 Southern Minnesota had a fairly high percentage of 85 their total economic activity and jobs in the county 4 related 70 to the ag industry. The complete Ag Industry Economic Study can be accessed from the 2 55 AgriGrowth website at: www.agrigrowth.org/news Minnesota’s agriculture industry has shown 40 0 tremendous J resilience F M A inMthe JpastJ fewA years S O N D responding to issues with low profitability in 25 M AandMreduced J J agAexports, S O N D productionJ ag,F tariffs struggles in the renewable fuel industry, and of course COVID-19 related issues. There will likely be more challenges ahead; however, the Minnesota agriculture, agri-food, forestry, and related industries 100 have responded to past challenges and appear to be 85 well-positioned to continue to grow and prosper for years to come.

(dollars per bushel)

— 2019 — 2020

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

C. Sankey

MN Valley Business • NOVEMBER 2020 • 25

13 10

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

- 2019 - 2020 (in millions)

8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0

- 2019 - 2020 (in millions)

$2,576,264

$7,047,865

20000000 15000000 10000000 5000000

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

- 2019 - 2020 (in thousands) 237

300

251

Median home sale price: Mankato region - 2019 - 2020 (in thousands)

250

$203,500 $207,000

200

240

150

180

100

120

0 J

Source: Realtors Association of Southern Minnesota

Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

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

Housing starts: Mankato/North Mankato

— 2019 — 2020

- 2019 - 2020

5.5

4.9

3.8%

4.3

10 24

3.7

2.9%

3.1 2.5

Source: City of Mankato

Existing home sales: Mankato region

$14,934,971 $1,791,903

8 J

Source: Freddie Mac

Source: Cities of Mankato/North Mankato

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26 • NOVEMBER 2020 • MN Valley Business

Gas Prices 5

Gas prices-Mankato

— 2019 — 2020

54 43

$2.42

32 21 10 0

Gas prices-Minnesota

$1.84

$48.21

+7.7%

Ameriprise

$157.46

$163.28

+3.7%

Best Buy

$111.11

$114.32

+2.9%

Brookfield Property

$11.60

$13.22

+13.8%

Crown Cork & Seal

$76.80

$79.61

+3.7% -25.6%

Fastenal

$49.00

$45.90

-6.3%

General Mills

$63.82

$61.28

-4.0%

Itron

$59.98

$64.98

+8.3%

Johnson Outdoors

$83.98

$87.79

+4.5%

$162.48

$165.48

+1.8%

Target

$151.43

$161.30

+6.5%

U.S. Bancorp

$36.44

$38.61

+5.9%

Winland

$1.01

$1.0

-1.0%

Xcel

$69.39

$72.48

+4.5%

$1.86

$44.76

$5.80

Archer Daniels

$7.80

2.57

Percent change

Consolidated Comm.

Oct. 7

Sept. 1

— 2019 — 2020

Stocks of local interest

0Source: GasBuddy.com J F M A

C. Sankey

MN Valley Business • NOVEMBER 2020 • 27

Minnesota Business Updates

■

■ Xcel hits record wind energy

per share. The outdoor recreation products seller paid the dividend in late October. Meanwhile, on July 31, Johnson Outdoors reported lower-than-expected third quarter results due to a shift in sales pattern amid the pandemic. The company’s revenue came in at $138.4 million, which also fell short of the consensus estimate of $157.6 million.

Xcel Energy set a record for wind energy last month thanks to 229 turbines spinning at the utility’s newest wind farm, a $743 million recently completed eastern Colorado project. The 500-megawatt Cheyenne Ridge Wind Project, built on 100,000 acres in Kit Carson and Cheyenne counties over the past year, joined other wind farms in supplying nearly 70% of the electricity Xcel Energy produced in Colorado for an hour in early September, setting a new company record for wind generation, the company said this week. Construction on the wind farm finished ahead of schedule and came in under budget, Xcel Energy said. It will help the utility generate more than 50% of its electricity from renewable energy sources by 2026.

■ Fastenal focus: e-commerce F a s t e n a l Company is focusing on b o o s t i n g customers’ engagement through virtual platforms to overcome coronavirus-related woes. Also, it has been banking on strong industrial vending business, Onsite locations and cost-saving efforts. This apart, the company is well positioned in terms of liquidity to overcome any unforeseen situation in the near term. However, negative customer/product mix, slower endmarket activity throughout the business and supply chain constraints owing to the coronavirus outbreak have been concerns for analysts. E-commerce sales grew 27% for the first quarter and 13.5% for second-quarter 2020.

■ Johnson ups dividend 23% Johnson Outdoors board approved a 23.5% increase in its quarterly cash dividend. Johnson Outdoors’ Class A shareholders will now receive a cash dividend of $0.21 per share from $0.17

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major August Industry 2019 2020 Construction Manufacturing Retail Services Total*

62 96 39 102 299

Local non-farm jobs Percent change ‘19-’20

163 401 163 619 1,346

Construction

126000 126000 Manufacturing

Retail 113000 Services 113000 Total*

1,768 1,400 767 2,890 6,825

4,510 6,167 3,963 18,077 32,717

126000

2100 1400

113000

700 100000

Minnesota Local non-farm jobs 12000 3500 3500 10000

+155.1% +340.5% +416.7% +525.5% +379.4%

8000 2800 2800 6000 2100 2100 4000 1400 1400 2000

28 • NOVEMBER 2020 • MN Valley Business

700 D

300000

3,036 2,898

240000 180000 120000 60000

700 0 0

- 2019 - 2020

(in thousands)

Percent change ‘19-’20

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

3500

125,899

2800

+162.9% +317.7% +317.9% +506.9% +350.2%

Minnesota initial unemployment claims August 2019 2020

129,698

139000

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

Major Industry 139000 139000

- 2019 - 2020

Nine-county Mankato region

F M

M A A M

M J

J J

J A

A S

S O

O N

N D

■ GM brings back cereal toys

■ 3M continues crackdown

While toys have not been in cereal boxes as often these days, General Mills is bringing them back in a big way. They’re now putting a toy in Lucky Charms, Cinnamon Toast Crunch, Cookie Crisp, Trix, Honey Nut Cheerios, and Cocoa Puffs.

3M continues to crack down on counterfeit N95 respirators, working with law enforcement agencies on more than 1,200 seizures and raids worldwide. Those actions include the combined seizures of more than 800,000 fake N95 masks in the United Arab Emirates, Vietnam and South Africa, 3M told the Star Tribune. Maplewood-based 3M is the leading manufacturer of 139000 N95 respirators in the United States and one of the largest globally. The masks are considered the gold standard in protection against pathogens and other 126000 particulate matter. 3M said it has investigated more than 7,700 fraud reports 113000 globally, up from 4,000 cases in mid-July.

■ Ameriprise marks 15th

Minnesota-based Ameriprise Financial has marked its 15-year anniversary as a spinoff from American Express. The company’s roots trace back more than 125 years, when it was founded in Minneapolis as Investors Syndicate in 1894. 100000 J That legacy continued as the firm operated under the brands Investors Diversified Services and later American Express Financial Advisors. Since its spinoff has built a team of 20,000 financial advisors and employees in 19 countries and administers 139000 3500 close 139000to $1 trillion in assets. 3500 12000 126000 113000

2800

126000

2100 113000

1400 700

100000 100000 J F

J M

M J

J A

J S

A O

S N

O D

4,013

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

J A A

J S S

A S O N O N D O N D

93,837

223,097

240000 180000 120000 60000 0

2100 1400

AMAZED A

700 0

2800 10000

300000 240000

2100 8000

180000

6000 1400 4000 700 2000 0 0 J F M A J F JM FA M M AJ

120000 60000

M MJ

J JA

J JS

A AO

S N S

O D O

N N

D D

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

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

60000 J

0 F

Call 507.344.6364

advertising@mankatofreepress.com

J M

F M A A M J

M J

J A

2019

2020

2.8% 59,222 1,692

6.1% 57,886 3,744

J S

A O

S N

O D

Unemployment rates Counties, state, nation County/area

- 2019 - 2020

2800

Mankato/North Mankato Metropolitan statistical area

240000

300000

D 0

300000

7,700

Minnesota number of unemployed

- 2019 - 2020

Nine-county Mankato region

Employment/Unemployment

F M A A M J

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

3500

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

August 2019

August 2020

2.9% 2.9% 3.3% 3.0% 3.5% 2.6% 2.9% 3.4% 3.8% 2.9% 3.2% 3.8%

6.3% 4.6% 5.9% 6.1% 5.2% 5.7% 5.3% 6.5% 4.6% 7.9% 7.1% 8.5%

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

MN Valley Business • NOVEMBER 2020 • 29

Sponsored by the Carl & Verna Schmidt Foundation

Do cash management accounts keep my money safe? By Chanelle Bessette | NerdWallet

ash management accounts are accounts offered by nonbank financial service providers that allow people to save and spend their cash. CMAs are usually found at brokerages, not chartered banks, which can raise a few questions. For example, the fact that these providers can’t directly cover your funds with federal insurance might make you wary. Or you may have concerns about account security in general. But here’s why you shouldn’t worry about the safety of your money if you put it in a cash management account.

How does FDIC insurance work with CMAs?

Insurance from the Federal Deposit Insurance Corp. is provided by partner banks. When a customer puts money into a cash management account, the CMA provider sweeps the funds to a partner bank behind the scenes so that the money is insured. CMAs usually can’t provide FDIC insurance themselves because they aren’t offered by chartered banks. FDIC insurance protects your deposits so that in the event a bank goes under, the funds in your account are safe. FDIC insurance is typically up to $250,000 per partner bank. CMA providers are usually not responsible for making sure a customer’s total assets at a bank stay within FDIC insurance limits — for example, if you have funds in a separate checking or savings account at a partner bank that, combined with your CMA, exceed $250,000. If there’s a risk that all your funds combined at a particular bank will go over the insured limit of $250,000, you may be able to opt out of using certain partner banks and have the CMA funds swept to a different one. CMA providers often maximize insurance by using multiple partner banks. Some CMAs are able to insure a customer’s cash up to $1 million or more by spreading out their funds across multiple banks. If you have that much money in cash, however, you may want to look into investing instead. Customers still have access to their money when they need it, although outbound transfers may take time. Cash that’s swept into accounts at partner banks is still directly accessible. Some CMAs offer debit cards for withdrawing cash and making purchases, but some only allow customers to make online transfers to a linked bank account to get their cash.

30 • NOVEMBER 2020 • MN Valley Business

Is my money safe in a partner bank account?

Your money should be quite safe during the short period before it’s moved from the CMA provider into an account at an FDIC-insured partner bank. When a customer funds an account and the money is transferred to a partner bank — which usually only takes about a day — the funds should be covered in the interim by the Securities Investor Protection Corp. SIPC insurance is the brokerage equivalent of FDIC insurance. If you’re thinking of opening a cash management account, check with the provider to verify the protection offered before your funds move to a partner account.

Are accounts technologically safe?

CMA providers use secure technology — such as encryption, authenticated logins and fraud detection — to protect their customers’ assets. Like most online-based financial service providers and banks, however, CMA providers deal with technical difficulties from time to time. In March 2020, for example, Robinhood experienced a major app outage that affected customers on the stock trading side of its business. And even major banks aren’t impervious to things like data breaches. But when it comes to financial products, security weaknesses also come from customers themselves. Phishing scams, the use of sketchy Wi-Fi networks or simple inattention to who may be looking over one’s shoulder during login can create vulnerabilities that allow bad actors to gain access to accounts. Always protect your account information and follow other best practices for online safety, such as using secure Wi-Fi networks and using complex passwords and two-step authentication for secure logins. MV

Sponsored by the Carl & Verna Schmidt Foundation

Credit Card Preapproval vs. Pre-Qualification By Kimberly Palmer | NerdWallet

hen you’re considering applying for a credit card, it’s helpful to know beforehand whether you have a good chance of getting approved, especially if you aren’t sure your credit score is high enough. That’s because applying for a credit card typically means a “hard pull” on your credit, which can cause your score to take a temporary dip. Consumers can get a better sense of their odds by getting “pre-qualified” or being “preapproved” by the credit card issuer. The terms are similar, and some issuers even use them interchangeably. But there’s an important distinction. In general: n Pre-qualification means that the issuer has taken a look at your financial details and given you its best guess as to whether you’d be approved if you applied. It’s not a guarantee, but it’s a good sign. n Preapproval, on the other hand, is more official. If you’ve truly been preapproved for a credit card, you’re almost certain to get it if you apply. To make things even more confusing, both can also be referred to as “prescreened” offers. When you go through a pre-qualification or preapproval process with a card issuer and get a thumbs-up for a particular offer, read the disclosure you’re provided. It should make it clear where you stand — whether you’ve just jumped the first hurdle or are nearly at the finish line.

Preapproval has a different meaning with credit cards

With installment loans, such as mortgages and car loans, the difference between pre-qualification and preapproval is more clearly defined, and it’s not uncommon for consumers to go through both as they get closer to a decision. As you start looking for a house, for example, pre-qualification gives you an idea of how much you’ll be able to borrow. Getting preapproved allows you to make a firm offer to the seller when you find what you want. With credit cards, on the other hand, you don’t typically need that kind of advance approval. So prequalification is much more common than true preapproval. In fact, receiving an unsolicited guarantee of approval from a credit card issuer can be a red flag. That’s because some issuers promise preapproval in the hopes of selling you on a card you don’t necessarily need or want. Preapproved credit card offers may come from an institution where you’re already a customer, in an effort to get you to open another card. Or they may

come from issuers that specialize in “instantapproval” cards, which tend to carry extremely high fees. Review any preapproved credit card offer you receive skeptically before applying to make sure it’s the right choice for you. If you’d prefer not to get prescreened offers in the mail, you can opt out by going to optoutprescreen. com, which is run by the consumer credit reporting bureaus. You can sign up to opt out of prescreened offers for five years or permanently.

Major issuers generally offer pre-qualification

Many major credit card issuers and some smaller ones offer pre-qualification on their websites. The issuer asks for personal information, including your name and address and some or all of your Social Security number. It uses that information to run a “soft” check of your credit, which is one that doesn’t affect your credit scores. In some cases, you’ll be able to see not only the card you pre-qualify for, but also the exact terms of the offer — such as the credit limit and interest rate — before you apply. These kinds of pre-qualifications are more specific and detailed and may even amount to a preapproval, but you still have to formally apply for the card. If you decide to apply for the card based on that information, the issuer will go ahead and run the hard credit check. It will likely ding your score, but you’ll have more assurance of approval. You can also make your own best guess about whether you’ll be approved for a card by considering your credit score. Some credit cards are available only to those with excellent credit, or good to excellent credit. MV

MN Valley Business • NOVEMBER 2020 • 31

OUTLET EXPANSION

NEW LOCATION

Earl Johnson Furniture 126 East Cherry Street, Mankato

JP Fitness 1400 Madison Avenue, Suite 50, Mankato

NEW BUSINESS

NEW LEADERSHIP

NEW BUSINESS

Kato Athletic Company 1522 North Riverfront Drive, Mankato

Lager's Chrystler World 307 Raintree Road, Mankato

The Blackbird Mobile Boutique

NEW LOCATION

EXPANSION & RENOVATION

RENOVATION

YMCA Front Street Studio 615 South Front Street, Mankato

South Central College Welding Lab 1920 Lee Boulevard, North Mankato

South Central College 1920 Lee Boulevard, North Mankato

Good Counsel Learning Center gclearningcenter.org

Workspace on 3 workspaceon3.com

WELCOME TO GREATER MANKATO GROWTH! 32 • NOVEMBER 2020 • MN Valley Business

IMPORTANT UPDATE: Due to COVID-19, we will not be holding Business After Hours through the rest of 2020. The originally scheduled dates will move to 2021. Thank you for your patience and understanding as we navigate this challenging time.

WHY JOIN NOVEMBER 10 EXPOSURE

Build your Brand; 11:30 am - 1 pm

GREATER MANKATO GROWTH? NETWORKING TW WORKING ORKING BUSINESS It’s not just st WHO WHO you ou AWARDS

grow your business. Stand out and get noticed!at: virtual event

and

know, it’s who knows k YOU. Networking IS Powerful.

HALL of FAME

greatermankato.com/awards LEARNING The Greater Mankato Business Gain access cces to Member AwardsExclusive & HallContent of Fame is Greater to help grow your business. Mankato's premier business awards event. This event is a time where Greater Mankato Growth, Visit TALENT Mankato,RETENTION City Center Partnership and Keep your employees GreenSeam honor the outstanding engaged and retained with businesses, access to professionals our member only and events andwithin programs. organizations the Greater Mankato community.

2020 SPONSOR:

BE IN THE KNOW

Receive our member only emails making you the first to know the latest news.

MEMBER 2020 Award Recipients EXCLUSIVE REFERRALS Greater Mankato Growth Awards BENEFITS We only refer member

businesses. Word of mouth Hall of Fame Inductee: SPX/Quality 1Hr Foto and direct referrals come Distinguished Business: Kato Crossfit from being a valued Brian Fazio Business Education Partnership Award: member of GMG. Greater Mankato Area United Way, & Capstone Publishing Young Professional of the Year: Laura Jans YOUR CREDIBILITY

SHAPE COMMUNITY

Raise your reputation by Visit Mankato Awards belonging. Research shows that businesses who belongAward: Silo Art Bring It Home continue to build the best to a chamber of commerce environment for your Hospitality Award: Mankato Area Mountain Bikers business and its employees. are more successful.

Presented by: Your investment helps us

City Center Partnership Awards

Meal Sponsor

Event Sponsors

Media Sponsor

New Construction over $5,000,000: Eide Bailly Tower Renovations between $500,000 - $1,000,000: Ridgley Building/Cultivate Mankato Renovations under $500,000: LocAle Brewing Company Downtown Detail: Vetter Stone Plaza Creative Placemaking: Mankato Playhouse Preservation Stewardship: 129 N. 6th Street greatermankato.com/join April 2018 CityArt “People’s Choice” and “Jury’s Choice” Awards: To be revealed at event

GreenSeam Award Seamed in Success: Brad Schloesser

MN Valley Business • NOVEMBER 2020 • 33 greatermankato.com/join

Regional Collaboration in Action

y working regionally, the cities of Eagle Lake, Lake Crystal, Mankato, North Mankato, and Saint Peter, along

with Blue Earth and Nicollet Counties, leverage each other’s collective strengths as the Regional Economic Development Allicance (REDA). With one of the strongest pipelines of talent in the country, the region has had over half a billion dollars of investment in the last three years. Check out our recently published 2019-2020 Annual Report, a summary of the period's strategic work and stats, at

greatermankatobusiness.com

T h a n k yo u R E DA p a r t n e r s !

Shop Small in Mankato & North Mankato

ark your calendars for Shop Small in Mankato & North Mankato, presented by Community Bank, happening November 20-29. You will find something for everyone

on your holiday shopping list during this weeklong, community-wide promotion! As part of the event, a passport will be produced listing all participating businesses. Each

stamp from participating businesses is an entry into a drawing to win prize packages of gift cards and merchandise from locally owned businesses (valued at $100+). Plan a day trip to Greater Mankato for your holiday shopping. Start with coffee at a local shop, visit some of our many unique boutiques in the morning, stop for lunch at one of our charming cafes, continue your retail therapy in the afternoon, and end the day with dinner and drinks at a local pub. That itinerary will yield at least 5 passport stamps, which means you will have 5 opportunities to win one of the great Shop Small prize packages! Find more details and a map of participating businesses at:

visitgreatermankato.com/shop-small PRESENTED BY

34 • NOVEMBER 2020 • MN Valley Business

Thank You

SPONSORS!

WHY JOIN EXPOSURE

Build your Brand; grow your business. Stand out and get noticed!

GREATER MANKATO GROWTH? NETWORKING TW WORKING ORKING It’s not just st WHO WHO you ou know, it’s who knows k YOU. Networking IS Powerful.

BE IN THE KNOW

LEARNING

Gain access cces to Member Exclusive Content to help grow your business.

TALENT RETENTION

MEMBER EXCLUSIVE BENEFITS

Keep your employees engaged and retained with access to our member only events and programs.

Receive our member only emails making you the first to know the latest news.

REFERRALS We only refer member businesses. Word of mouth and direct referrals come from being a valued member of GMG.

SHAPE YOUR CREDIBILITY Raise your reputation by COMMUNITY belonging. Research shows

Your investment helps us continue to build the best environment for your business and its employees.

that businesses who belong to a chamber of commerce are more successful.

Mankato Hosts USA BMX

n March 2019, the Mankato Sports Commission and Mankato BMX Club submitted a bid to host the 2020 USA BMX Golden Cup Race and were excited to be awarded this opportunity. On September 25-27, 452 riders from 13 states competed in this 3-day event and brought an estimated 1,130 room nights with an estimated economic impact of $700,883. BMX attracts greatermankato.com/join riders of all ages and all levels with this year’s event including riders ages 1 April 2018 year - 72 years. BMX provides an atmosphere of good sportsmanship in a fun family environment where you can see three generations of family members competing. Learn more about the Mankato Sports Commission at

mktosports.com. MN Valley Business • NOVEMBER 2020 • 35 greatermankato.com/join

READY FOR YOUR ARRIVAL Gathering with loved ones means more than ever. Laugh, hug, play and relax. The eight hotels and resorts along Alabamaâ&#x20AC;&#x2122;s Robert Trent Jones Golf Trail offer legendary locations to safely reconnect. From the shores of the Tennessee River to Mobile Bay, come experience world-class hospitality in picturesque settings. Plunge into resort pools. Relax in luxury spas. Play RTJ golf. Enjoy farm-to-table cuisine. We are open and will be here waiting for you. Visit rtjresorts.com.

The College of Business Center for Innovation & Entrepreneurship is facilitating regional events and coordinating this year’s Global Entrepreneurship Week line-up. This year’s focus is on inclusion, celebration and support of innovators and entrepreneurs that help create a strong and vital local economy. Events are hosted by the Center for Innovation & Entrepreneurship, Small Business Development Center, 1Million Cups Mankato, Social Media Breakfast Mankato, Greater Mankato Diversity Council, Region 9 Development Commission, Better Business Bureau of Minnesota and North Dakota, and the Regional Center for Entrepreneurial Facilitation.

NOVEMBER

FRIDAY, NOV 13

Social Media Breakfast Sponsor SMB Mankato 8:00 AM  9:00 AM

THURSDAY, NOV 19

South Central Minnesota Small Business Awards Sponsor SBDC

MONDAY, NOV 16

TUESDAY, NOV 17

Startup Smart

Entrepreneurs of Color

Sponsor SBDC

6:30 PM  7:30 PM

Sponsor: GMDC/BEAM

THURSDAY, NOV 19

FRIDAY, NOV 20

Women Entrepreneurs Event

Sponsor CIE/Women’s Center

BizPitch

Sponsor RCEF

Sponsor 1MC Mankato 8:30 AM  9:30 AM

THURSDAY, NOV 19

Big Ideas - How to Enter & Win Venture Competitions

Starting your Business With Other People’s Money Sponsor RNDC

4:30 PM  5:30 PM

FRIDAY, NOV 20

6:30 PM  8:00 PM

1Million Cups

3:00 PM  4:00 PM

4:00 PM  5:30 PM

Sponsor CIE

WEDNESDAY, NOV 18

6:00 PM  7:30 PM

11:30 AM  1:00 PM

Follow the COB

Better Customer Service Starts with Trust Sponsor BBB of MN and ND 4:30 PM  5:15 PM

RSVP for the events: link.mnsu.edu/gew2020 For more information about our local GEW: cob.mnsu.edu/gew For more information on the national GEW: genglobal.org/gew For a full list of College of Business Events: cob.mnsu.edu/events

More events may be happening, check our website and CIE Facebook page for more current information An Affirmative Action/Equal Opportunity University. This document is available in alternative format to individuals with disabilities by calling the College of Business at 507-389-5420 (V), 800-627-3529 or 711 (MRS/TTY). BUSC594AD_10-2020

MN Valley Business • NOVEMBER 2020 • 37

BACK TO A LIFE RICH IN POSSIBILITIES.

On Saturday, David returned home from vacation with headaches and vision problems. Monday, he saw a Mayo Clinic Health System eye doctor, who referred him to neurosurgery for a same-day MRI. Wednesday morning, David’s neurosurgeons removed a large, benign brain tumor. Friday afternoon, he went home. Fast, accurate diagnosis and personalized treatment from the brain care experts at Mayo Clinic Health System helped David return to his best life.

Call 507-246-1883 for an appointment. mayoclinichealthsystem.org/braintumor

MN Valley Business • NOVEMBER 2020 • 38