Minnesota Valley Business by Free Press Media

The Definitive Business Journal for the Greater Minnesota River Valley

Melissa Bradley, general manager of Snell Motors. Photo by Pat Christman

Speeding up Auto sales keep growing

July 2021

Also in this issue • TRAVERSE DES SIOUX GARDEN CENTER • AMBER PIETAN TRAVEL AGENCY • SAWATZKY POOLS OF NORTH MANKATO

The Free Press MEDIA

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F E A T U R E S July 2021 • Volume 13, Issue 10

After a tumultuous year local auto dealers are seeing a steady growth in business but are restrained by ongoing shortages of inventory and parts.

Sawatzky Pools, a North Mankatobased pool and spa contractor founded in 1971, is going strong with owner Richard Sawatzky and his son Taber.

A travel agent since 1999, Amber Pietan has carved out a niche helping people create custom travel itineraries at her Amber Pietan Travel Agency.

Traverse des Sioux Garden Center founder Fred Struck and his sons have built a successful garden center and landscaping business in St. Peter.

MN Valley Business • JULY 2021 • 3

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JULY 2021 • VOLUME 13, ISSUE 10

By Joe Spear

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

■ Local Business memos/ Company news....................................5 ■ MRCI....................................................6 ■ Business Commentary........................7 ■ Business and Industry trends .........18 ■ Retail trends ....................................19 ■ Agriculture Outlook .........................20 ■ Agribusiness trends.........................21 ■ Construction, real estate trends ....22 ■ Gas trends .......................................23 ■ Stocks ..............................................23 ■ Minnesota Business updates...........24 ■ Job trends ........................................24 ■ Schmidt Foundation ........................26 ■ Greater Mankato Growth .................28 ■ Greater Mankato Growth Member Activities ...........................30

From the editor

Loss of Vikings camp: tale of two cities

our years after the Vikings moved training camp out of Mankato, the city remains without a signature summer event of the same magnitude. Of course, any city would find it difficult to replace an NFL training camp with the hyper media attention and dozens of famous athletes wandering around local cafes, bars and bistros. The training camp brought an estimated $5 million to the Mankato economy including big boosts to restaurants and other businesses near the training camp at MSU. In a 2018 Free Press article, owners of Jake’s Stadium Pizza said the business brought in an extra $10,000 a week during Vikings Training Camp. Bradley’s bar business would double or triple during camp. Tav on the Ave had some Vikings contracts for late night snacks and beer at the Vikings Village. AmericInn hotel near campus was booked for weeks, sometimes with people making reservations a year in advance. Minnesota State University collected $95,000 in the last year of camp from parking fees, and MSU’s contract with the Vikings for rental of facilities and other services came to about $140,000 for a 22-day training camp in 2017. But civic leaders have been hard pressed to come up with any kind of summer event that would bring in the same kind of business. The coming of Hockey Day Minnesota in January will be an event that will likely draw visitors from all over the state, but it won’t be for more than a few days. Minnesota State University men’s hockey team will play newcomer to Division I St. Thomas at 4:30 p.m. on Jan. 22. Ironically enough, a rink will be set up in Blakeslee Stadium, where the Vikings played scrimmages. There’s no question that Vikings

4 • JULY 2021 • MN Valley Business

Training Camp put Mankato on the map, and people from around the state and country came to know the name even if they never visited. It’s likely some fans over the 52 years of training camp in Mankato came back to visit some of the other things attractive about Mankato like outdoor trails and other amenities. But looking at the actual dollar figures for the camp losses offers some surprises. While Mankato food and beverage tax (an indicator of food and beverage sales) were down about 7.5 percent for July and August the first year the Vikings were gone in 2018, food and beverage taxes recovered about 4.5 percent of that somewhat in 2019 compared to the last year the Vikings were here. Not surprisingly, food and beverage sales as measured by the tax were down about 22 percent in 2020, the pandemic year where bars and restaurants were shut down for various periods. Surprisingly, the overall lodging business did not suffer in Mankato for years after the Vikings left. In fact, lodging tax receipts (base on revenues) showed a flat level in 2018 and an 11 percent gain in 2019. Of course, we all know how lodging has been decimated by the pandemic. Lodging business in July in August, in 2020, was off nearly 36 percent from the last year of Vikings Training Camp. The biggest benefit of Vikings Training Camp may be the exposure MSU got during the camp. Fans and potential MSU students and their parents got an up close look at a university that was growing in stature and physical amenities over the last decade or so. MSU surpassed St. Cloud State in total enrollment a few years ago and became the second largest university in the state behind the University of Minnesota. And there lies an economic amenity that doesn’t have the

fanfare of a NFL training camp but brings in much more than $5 million a year to the community. In fact, a study done in 2017 showed MSU economic impact, directly or indirectly, to Mankato was $781 million, the largest contributor of any state university to any home city. MSU’s economic impact was $95 million more than the impact of St. Cloud State to its home community. MSU’s investment was directly or indirectly related to 6,200 local jobs, the study estimated. The best strategy for replacing Vikings Training Camp might involve investing in the assets we already have. The near 50-year old Blakeslee Stadium needs to be replaced, but private fundraising is necessary as state bonding money is almost never used for such purposes anymore. Could a brand new football stadium draw other events in the summer? Some small cities in the south draw significant crowds from other parts of the country with high school, nine-man, no-equipment type touch football tournaments showcasing the best high school

football teams in the country. And we can’t forget other smaller contributors to the Mankato summer economy that may be growing. Some $3 million plus of investments in Franklin Rogers Park, now called also ISG Field, may continue to boost daily attendance at MoonDog games with special club seating areas and group

offerings. The bottom line: Vikings are gone and we’ll miss the name recognition, but Mankato is no ghost town without the Purple. 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 ■

Citrowske joins True

Andrea Citrowske has joined True Real Estate as a real estate agent. She is a native of Prior Lake and recently moved to the Le Sueur area after attending Minnesota State University.

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Pantheon opens Mankato office

Pantheon Computers, an outsourced IT provider, has added a fully-staffed Mankato office location. Founded in 1997, Pantheon has been providing services out of their Waseca headquarters and has eight employees residing in Mankato and St. Peter. The new office is in Atwood Plaza. Jon Stagman is CEO of Pantheon.

Josh Zimmerman Digital Advertising Director

507.344.6322

89.11'*1$-:1$-;$+"<*'')*',,7#"1 MN Valley Business • JULY 2021 • 5

MEET HOLLY! INNOVATIVE APPROACH TO EMPLOYMENT EXPLORATION FOR INDIVIDUALS WITH DISABILITIES

MRCI’s ssion for work in Holly found her pa oration program. Employment Expl

hen Holly lost her job due to COVID, she struggled a bit. Fortunately, MRCI was there to help her find her way through a new program, called Exploration. “It has given Holly hope in being able to find a job again and it has given her confidence in employment skills. For us as parents, we see how excited Holly is to have this opportunity. It has been like a support group for Holly,” says Holly’s mom, Marti. MRCI’s Employment Exploration Services is a 10-week program that includes a wide variety of activities which help participants explore different work options and opportunities in their community. The program combines classroom learning (in small groups of 1:4) and job exploration activities to provide engaging work experiences and promote motivation, consideration of opportunities, and informed decision-making. This program helps participants transition to employment by gaining a better understanding of competitive employment, helping them decide if they want to work in the community and what kind of work they may want to perform. “The EES program has been very beneficial for Holly. When she was offered the opportunity for Employment Exploration with MRCI, she was very excited. It has given Holly hope in being able to find a job again and it has given her confidence in employment skills. Holly feels she has learned valuable skills that will help her obtain a job and be successful. For us as parents, we see how excited Holly is to have this opportunity. It has been like a support group for Holly.” Our discovery process sets us apart which is reflected in the long-term success of those we place in permanent employment positions. The magic of the employment exploration program is that the staff and the individuals work in partnership to discover the natural talents and interests of each participant to align to the world of work in our local community. Holly discovered see wants to return to the world of work. She graduated from the Employment Exploration program and is ready to work! To get involved as a tour site, volunteer participant, staff, please visit mymrci.org for more information.

About MRCI

MRCI provides genuine opportunities for people with disabilities and disadvantages at home, at work and in the community. Please help us with that mission by volunteering of your time and talents! Please call 507-386-5600 to make a difference today!

6 • JULY 2021 • MN Valley Business

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Business Commentary

By Dean Swanson

Protect your business from hackers

yber-attacks are constantly in the news. Business owners must be continually vigilant and take steps to protect their businesses. These attacks can cause proprietary information to be leaked and businesses to close. In this column I will focus on some reminders on how to approach cybersecurity for your business and protect your information. Every year, businesses become more sophisticated in their efforts to stop hackers from stealing proprietary information. The problem is that hackers become more sophisticated every year, too. Unfortunately, there is no silver bullet for eliminating the threat of a cyber-attack on your business, but there are a number of ways to protect your data and reduce the likelihood of becoming a victim.

Not if, but when

Unfortunately, just about every small business will eventually experience an attempted cyber-attack. According to Verizon’s 2020 Data Breach Investigations Report, small businesses make up 28% – nearly one third – of all data breaches. The report points out that cloud-based tools can actually make small businesses even more vulnerable to having their data and personal information compromised. This risk was heightened even further in early 2020 by the sudden increase in employees working from home due to the COVID-19 pandemic – a trend that will no doubt continue. Just by looking at the sharp uptick in remote work and the resulting reliance on web-based tools, it’s easy to see that cybersecurity risks to small businesses will continue to grow. The true cost to a small business facing a hacker is more than the valuable data that’s stolen. The cost of resolving a cyber-attack is often too high for most small businesses to weather. According to a 2018 Inc.com column on small business cyber-attacks, 60% of small and mid-sized businesses that are hacked go out of business within six months.

Basic steps to take

Your business should be doing everything it can to prevent a damaging cyber-attack. The “U.S. Small Business Administration’s Cybersecurity Guide” is a great resource as you build your security plan. Here is a breakdown of some of the best practices it recommends every small business do to keep their data safe.

Install & Update Antivirus Software

Installing antivirus software on your network of computers is, at a minimum, a cybersecurity step that your company needs to take. There are several software providers with solutions that offer regular security updates, so your devices are always secure. A few of the most widely used cybersecurity software solutions include: • Norton • McAfee • Kaspersky There are many more antivirus protection options out there as well. Check out the PCMag article covering the “Best Antivirus Protectio” for even more solutions.

Use internet safeguards

Firewalls and encryptions will safeguard your company’s internet connection, including any Wi-Fi networks. The SBA recommends setting up your router, so it doesn’t broadcast the network name or the Service Set Identifier (SSID). Also, use a strong router password to further protect your internet.

Back up everything

This may go without saying, but your company should regularly back up all information on computers and any other devices. Duplication can save your business time and money and reduce liability should your data become compromised. If you can set up your devices to back up automatically or perform scheduled backups, then you’ll better protect your sensitive information and save yourself valuable time as well.

Secure payment processing

No matter what type of business you own, your money runs through a digital system when it is handled by your bank. If you are a retail shop, restaurant or other transactional business that accepts credit card payments, you are utilizing a third-party vendor to process payments and creating an even bigger digital footprint. Talk with your bank and card processors to make sure they have secure, trustworthy antivirus protection measures in place, so you don’t put your business and your customers at risk.

Train your employees

According to the SBA, employees and your email server are two of the biggest causes of data breaches for small businesses. It recommends training employees on the basics of cybersecurity including how to detect a breach and how to minimize the likelihood of getting hit with one in the first place. You can hire a cybersecurity expert to teach your employees what to do to better prevent a virus. There are also resources in the “SBA’s Cybersecurity Guide” to get you started, including events and training if your business needs even more support. This list of best practices merely scratches the surface of what the SBA recommends small businesses do to prevent an attack. Read the full guide for even more information. The Federal Communications Commission also provides valuable information for security with tips for small businesses. Protecting your business from cybersecurity threats can feel overwhelming to a business owner, especially one setting up safeguards for the first time. As you set out to protect your business, consult professionals with experience in security planning, like a SCORE mentor.

Dean L. Swanson is a volunteer certified SCORE mentor and former SCORE chapter chair, district director, and regional vice president for the north west region. For information on the local Mankato area SCORE chapter: scmnscore.org MN Valley Business • JULY 2021 • 7

Melissa Bradley, GM of Snell Motors, said they’re optimistic that automakers are catching up with the backlog in orders.

In demand Vehicle sales growing but inventory still low By Tim Krohn | Photos by Pat Christman

fter a tumultuous 2020, local auto dealers have growing optimism, but the domino effect of the pandemic continues to be felt with shortages of inventory and parts, plus slower delivery of vehicles because of a driver shortage. “March was much, much better than last March,” said Melissa Bradley, an owner and general manager of Snell Motors in Mankato. Indeed, city tax collections show 1,008 vehicles were sold in Mankato in March 2021, compared to 638 last March when the pandemic first hit. The sale of

cars, trucks and SUVs fell 8% in Mankato in 2020, but sales grew steadily late last year and into this year. Ted Evans, general manager of Mankato Ford, said business keeps building but other issues persist. “Each month has looked better. The only obvious issue now is the lack of new inventory. It just keeps dwindling down and down.” Scott Lambert, president of the Minnesota Automobile Dealers Association, said sales remained down statewide into early this spring.

Cover Story

8 • JULY 2021 • MN Valley Business

Snell Motors says pickups remain the top seller in the ag-rich southern Minnesota region. “It’s been down all over. We’ve been chasing last year’s numbers,” Lambert said. “GM was recovering from a strike and then the pandemic hit.” But a shortage of vehicles and parts hit all automakers, he said. “All the lines building vehicles blinked on and off.” Still, good signs are in sight for the industry nationwide. U.S. auto sales roared in May compared with a year earlier, when the coronavirus pandemic was in full swing, giving every indication Americans are shaking off the global health crisis, according to Automotive News. Despite inventory problems, several automakers hit monthly sales records in May. For the seven automakers reporting results for May, sales rose 37% from May 2020. In addition, five of those automakers even beat numbers from May 2019 — a sign that demand is back. Last year’s sales slowdown and the current backlog in inventory has also hit the used vehicle market as fewer people have been trading in vehicles for new ones.

Sales of SUVs keep growing as demand for sedans dries up.

Microchip shortage

A worldwide shortage of microchips has slowed the production of everything from kitchen ranges to pickups and SUVs. Bradley said that while demand is growing for vehicles, their sales are still down about 7% this year compared to last year. “Part of that is we just don’t have the inventory. Every model is in short supply. They all take that chip.” While chip makers continue to ramp up production, Evans

anticipates the next issue he’ll face. “Once we get more microchips, the next thing will be trouble transporting vehicles because there’s a shortage of (semi truck) drivers.” While Evans is frustrated he doesn’t have the inventory he could sell, he knows everyone selling things with a microchip in them are facing the same problem. “We’re remodeling our kitchen and we ordered new appliances three weeks ago, and the stove we will maybe see in October. It’s

MN Valley Business • JULY 2021 • 9

the same for everyone,” Evans said. “When everything in the world shuts down, it doesn’t just fire back up quickly. We just have to be patient,” he said. Bradley said Snell is starting to see a little more inventory come in and she is optimistic the situation is improving. “With our discussions with General Motors, it looks like things should get back-to-normal levels before long.” While they still have some inventory on hand, they have up to 100 vehicles customers have ordered that are either waiting to be delivered or haven’t been built yet. “We can tell people pretty close to when they will come in.” Evans said incentives are being offered to retain customers. “We’re doing incentives for ordering out vehicles the way you want it. Ford puts in $500 and we put in $500 to incentivize it.”

Pickups, SUVs reign

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A trend in consumer interest in recent years continues with pickups and SUVs the most popular while demand for sedans has dried up. “The GMC Sierra pickups are our biggest sellers and always have been with the ag community we have here,” Bradley said. She said Buick and GMC no longer make any sedans, while Cadillac has a limited number. “It’s trucks and SUVs.” Pickups are also big at Ford, and Evans said customers have taken a liking to the Bronco Sport SUV. “It’s really taken off. We just sold our last one in stock. The Escape has been great, too” Bradley said there is also growing interest in electric vehicles and she’s waiting for the GM Hummer EV to begin being delivered. “We’ve been able to take reservations for those but haven’t seen the actual model. They say it’s going to be revolutionary; they’re calling it a super-truck with a 350-mile range before it needs recharging.”

Ser vice stayed strong

While vehicle sales suffered, the pandemic had much less effect on service work. Evans said there are still backlogs in getting

Ted Evans, general manager of Mankato Ford. parts they need. “Parts are backed up, too. It’s all kinds of parts. We have quite a long list.” Bradley said their ser vice center and body shop have stayed busy and Snell’s car wash has done gang-buster business. “With this nice weather we’ve been doing 400 to 500 (washes) a day. The complete detailing, which can take four to five hours, we’re booked out about three weeks on those.” Both dealers said one of their big challenges is finding the help they need, something facing all businesses. “Right now with the car wash, it’s just finding help,” Bradley said. “It’s tough finding people,” Evans said. “It’s tough just finding people who want to work. Once they start, some just don’t want to work or just leave.” He said he sees the worker shortage all over. “I’m seeing restaurants and bars closed a day a week or something because they don’t have help. It’s the same everywhere.” MV

Mankato vehicle sales 2019

2020

2021

January

1,033

1,039

906

February

896

925

934

March

833

638

1,008

April

1,156

801

1,425

May

1,077

913

June

1,168

1,112

July

842

1,032

August

1,492

1,249

September

1,065

1,057

912

1,033

November

1,001

989

December

1,219

860

Total

12,694

11,648

October

4,273

Source: city of Mankato

MN Valley Business • JULY 2021 • 11

Taber Sawatzky is the manager and son of owner Richard Sawatzky.

Ahhhhhh

Sawatzky, summer relief relief for for 50 50 years By Katie Roiger Photos by Pat Christman

t’s not much of an exaggeration to say preferences in mind. They added a covered that Nicki and Justin Sandmann planned back porch and an outdoor bathroom long their dream house around their dream before the backyard was anything but pool. grass seed. In October “It’s something my of 2019, the same month husband and I talked they closed on their about forever,” Nicki house, they put a deposit said. “We have saved on an inground SAWATZKY POOLS for decades waiting to swimming pool. 433 Belgrade Ave, put a pool in.” “It was one of the North Mankato All of the Sandmanns greatest things we’ve sawatzkypools.com love to swim, including ever done – we’d do it their two children Facebook: Sawatzky Pools Inc. again in a heartbeat,” Brynn and Asher. Some Nicki said. Once the 507-388-3624 of Nicki’s happiest pool was finished in the childhood memories early summer of 2020, are centered on Mother’s Day trips to a the Sandmanns spent whole days outside family cabin and sun-soaked weekends enjoying their new aquatic space. The pool spent paddling in the nearby lake. became the de facto hangout for the kids’ When the Sandmanns found the perfect friends, and the Sandmanns were pleasantly lot and began construction on their new surprised to find how much their family home, they kept their outdoor living time had increased.

Spotlight

12 • JULY 2021 • MN Valley Business

“We have crazy games that we come up with,” said Nicki. “We have family races and relays; we try to hide something in the pool and the others have to go find it. We come up with anything possible to keep us all entertained.” To build their inground pool, Nicki and Justin chose Sawatzky Pools, Inc., a North Mankatobased pool and spa contractor founded in 1971. Taber Sawatzky, the manager and son of owner Richard Sawatzky, said that the employees’ years of experience have taught them how to best help their customers choose the pool that’s right for them, down to the very last detail. “We like to give people all the information they need to do some research on their own, and we can answer their questions and be that resource,” he said. The first resource that Sawatzky Pools offers is a yard survey. Crew members will visit customers’ yards to take measurements and help their clients envision the perfect position for their above ground or inground pool. “We lay out what size pool will fit in their yard, with the different orientations,” Taber said. “We talk a lot about the things that are important to them so that they get the pool they want.” Nicki said that Sawatzky Pools’ initial yard survey was very helpful. “They really helped us work on putting things in correctly and moving (the pool) so that it would be in line with our windows and covered deck,” she said. “Richard really has a great eye.”

All the details

Once a customer has determined the size and shape of their pool, customization options are almost endless. Sawatzky Pools handles all of the construction details from pouring the concrete to installing fun features like custom lighting. The Sandmanns chose LED lights that can be programmed to change color. For Independence Day in 2020, they set their lights to glow red, white, and blue. That’s not all that Sawatzky Pools can do. During

Nicki Sandmann and her husband Justin long planned and saved to be able to put in a pool. Below Nicki Sandman said the whole family loves to swim and use the pool regularly. consultations, their designers determine what kind of use their customers want to get from their pool. Do they have young kids or grandkids? Maybe they want a proportionally larger shallow end like the Sandmanns. Are they star swimmers? They might like a diving board in the deep end. Do they want the added shade of a poolside sun deck? What type of aesthetics do they prefer? Do they enjoy luxurious-feeling add-ins that enhance their swimming and sunbathing experience? “We’ve done some pools with waterfalls and lit laminar streams,” said Taber. “I really enjoy the variety of what we do. (The pools) are all unique in their own way.” A less quirky but still important consideration is the water filtration system. Taber said that Sawatzky Pools’ goal is sparkling clean water in each of their customers’ pools. They offer a range of options including standard chlorine tablets and hotel pool-style salt systems that generate liquid chlorine. “It’s a lower-maintenance system because the equipment is constantly adding the sanitizer, whereas with the chlorine (tablets) system you have to add

the sanitizer,” Taber said. In the past few years, the UV Ozone sanitizing system has become increasingly popular with Sawatzky customers. It combines UV light with ozone gas in an advanced oxidation process, which then kills bacteria in the water. “We still have to supplement with chlorine, but it takes the load off of the chlorine significantly,” said Taber. From breaking ground to sanitization and maintenance visits, Sawatzky Pools’ aim is a finished product that families like the Sandmanns can enjoy for years. “Ever y day, we swim all afternoon, we have supper, and then we’re right back out there till 8:30 or 9 at night,” said Nicki. “We just have good family memories that we’re building already.” MV

MN Valley Business • JULY 2021 • 13

Neil Kaus and Amber Pietan of Amber Pietan Travel.

Around the world Pietan offers personalized travel

By Dan Greenwood | Photos by Pat Christman

mber Pietan has fond memories of travelling “When I was a girl my dad said, ‘you’re going to around the country with her parents and own your own business using your name in the sister when she was a kid, visiting national title,’” Pietan said. “When I decided to go out on my parks and other sights, stopping own, that was the first thing that at wayside rests and picking up came to mind: Amber Pietan brochures. When they were Travel Agency.” teenagers, her sister would handle the hotel check-ins, and Pietan A top seller AMBER PIETAN designated herself as the family’s Numerous five-star online TRAVEL AGENCY travel agent. reviews describe her as someone amberstravel.com “I just really got the travel bug, who goes out of her way to make Facebook: Amber Pietan wanting to see how different customers’ vacations extra Travel Agency people live, eat and cook,” Pietan special, and that she’s responsive, 507-382-0669 said. informed, efficient and easy to As they grew older, the two work with. sisters transformed those roles into careers – Pietan also consistently wins awards as one of the Pietan’s sister began working in the hotel industry top selling travel agents in the country, routinely and Pietan became a travel agent – first for AAA in making it into the top 50 out of the 6,600 independent 1999, and eight years ago she opened her own travel travel agents in the United States annually through agency in North Mankato. Outside Agents, a host agency that supports

Profile

14 • JULY 2021 • MN Valley Business

independent travel agents across the country. “When I left AAA, I investigated about host agencies, which are basically host travel agents that want to be independent and not be in a brick-and-mortar place,” she said. “I went with Outside Agents and never looked back.” Host agencies like Outside Agents provide support and help with insurance and licensure, as well as providing resources and support for travel agencies to grow. Around the time Pietan opened up her own business, Outside Agents began offering incentives to its top-selling travel agents. “They would send us and a guest for three or four nights to some destination, like Punta Cana and Puer ta Cana (Dominican Republic) or the Riviera Maya (Mexico),” Pietan said. “It’s usually the top 30 or 50 agents and their spouses. It’s so much fun to get together so we can talk shop. We have a welcome dinner together, we all eat together, we go dancing and do other things together.” Pietan routinely takes about two trips a year as an opportunity for research. Out of the roughly 44 trips she’s taken, the vast majority have been business trips, touring hotels and other accommodations. It’s not unusual for her to tour multiple hotels a day, talking with staff and forming business relationships in the process. “Most of the time I go to have a tour to learn,” she said. “You wake up, do two hotels in the morning, two in the afternoon, and then one at night. It’s crazy.” It’s that kind of hand-on research and personal touch that helps Pietan stand out from travel websites like Expedia or Orbitz. If something goes wrong on a vacation or there’s an unexpected surprise, customers can call Pietan directly, instead of having to remain on hold when calling the customer ser vice number on travel websites. That personal connection proved to be a lifesaver for Lori Christiansen of North Mankato, who has travelled throughout the Caribbean on trips arranged

by Pietan. Before heading out for a cruise on her most recent trip, Christiansen travelled to Florida a couple days ahead of time. “We got there a couple days earlier just to spend some time in Florida, and one of the hotels had some problems with a water main break,” Christiansen said. “Because we had Amber to help us out, I called her, and she arranged for us to get another hotel in Fort Lauderdale, and for the transportation to get us to that hotel. It had an even bigger room. We just paid what we would have normally paid. Had we not done this through Amber, we would have been on our own.” Most of the popular destinations for local travelers are Caribbean islands like Jamaica and the Dominican Republic, as well as Mexico, Hawaii and Alaska. “The thing that makes them big is there are non-stop flights from Minneapolis, so it’s easy to get there,” Pietan said. Her personal favorites are Greece (Pietan is a big history buff), Jamaica for its top-notch VIP service and the Mountain West, one of the places she travelled to with her family when she was younger. “My clients have my cell number; you can text me, a lot of them Facebook message me,” she said. “Not only are you supporting a local business, but you’re also keeping the money local. You have someone there for you as a life raft.” “We have a lot more contacts and capability to get information that you can’t get,” Pietan said. “I’m on hold some days for three, four or six hours a day. I would imagine that’s similar to calling Expedia. Let’s say you accidentally spell your name wrong; you have to take time out of your day to call and fix your name. But we do that for you.” One popular trend that’s increasing in the Caribbean and Mexico are over-the-water bungalows. Developed initially in faraway South Pacific islands like Bora Bora and Tahiti, they’ve become a hot seller for those looking for a less expensive

airfare than the high prices of flying to the South Pacific. “Because of the airfare, they’re affordable,” she said. “Going to Tahiti, your airfare is quite a lot. Flying down to Cancun and taking a van down to a resort is a fraction of that. It’s taking the South Pacific and having it way closer to us.”

Custom trips

She’s also able to accommodate unique requests, whether it’s taking a boat down the Amazon River or hiring a sailboat captain to lead a group of friends on island-hopping adventures in the Caribbean. Taking a cruise around the Caribbean was not something Christiansen thought she would like, but she took a chance and booked a cruise a few years ago with Pietan as her agent. On her first trip, she visited Jamaica, Cozumel, St. Martin and St. Thomas. She enjoyed it so much that they booked a second cruise two years ago. Now she’s planning her third cruise through Pietan’s travel agency, with plans to go to the southern Caribbean. Christiansen enjoyed having a private balcony to view the sea on the cruise ship and was surprised by the variety of activities both on and off the ship. The ease of travelling to multiple destinations in a moving hotel was another perk she enjoyed. “One of the biggest reasons why so many people like cruising is you unpack once and then you get to see four or five different islands,” Pietan said. In July, Pietan is celebrating 22 years as a travel agent and she can’t imagine doing anything else. She said the most rewarding aspect of her work is making customers happy and that they have a positive experience on vacation. “I love that I get to do something that they look forward to and are giddy about,” she said. “You have to be a very detail-oriented, organized person. A lot of it is very natural to me; it just feels like this is what I was always meant to do.” MV

MN Valley Business • JULY 2021 • 15

Keith Struck gives plants a good soaking during a hot stretch of weather.

Green thumbs Gardening runs in the Struck family By Katie Roiger Photos by Pat Christman

ome families share hereditary traits into a full-scale business when he found the like blue eyes, brown hair, or a tendency perfect rental building in Saint Peter. Several to freckle. The Struck family’s trait years of success helped him to buy the appears to be green building outright and turn thumbs. it into the bustling garden “My desire all along center and commercial was to run a plant landscape service that it nurser y,” said the TRAVERSE DES SIOUX is today. Traverse des Sioux Struck is the first to GARDEN CENTER Garden Center founder credit his sons Keith and 1702 Highway 169, St. Peter Fred Struck. A business Carl Struck as being 507-931-6683 owner for over 40 years, crucial to the business’s tdsgardencenter.com Fred has fond childhood achievements. Just like memories of planting their father, both boys gladiolus and calla lilies as well as helping grew up lending a hand with planting, his mother in the garden. Learning how to pruning and potting from an early age. care for different perennials and annuals “One of my first jobs was filling pots at our became a fascination for him that he turned home greenhouses,” said Keith. “I would roll

Feature

16 • JULY 2021 • MN Valley Business

out of bed in the morning and start planting, and when I came home from school I’d start the process all over again. I took an interest in it from a young age and while I was going to college, I decided that this is what I was going to do full-time.” While Carl took over the landscaping portion of the business, Keith lends his services on-site as the garden center’s store manager. He said he loves to see the variety of customers who pour through their doors and assist them with their many questions. “Ever y day is a different adventure,” Keith said. Having worked for his father for so long, Keith said he has seen several trends come and go. Many of their current customers are interested in quick results from their gardening. In response, the Traverse des Sioux Garden Center decided to stock larger potted specimens so that their customers can get quick gratification. Keith also said that customers are turning to tropical plants to add some interest to their lawns and homes. “People are starting to incorporate houseplants into their gardens,” he said. “A couple of very popular ones are palms, larger philodendrons, hibiscus, and Bird of Paradise (a type of South African flower). Most customers are planning to have them just for the season to add a little excitement. Some will bring them inside for the winter, but most people treat them as annuals.”

Visions to reality

Fred and Keith said that they enjoy pointing their customers toward specific plants, but they also like assisting the patrons who know they want to spruce up their properties but aren’t sure where to start. The Struck team provides an initial consultation, often visiting their clients’ commercial or residential properties. They share their expertise based on the customer’s vision, budget, and available space. “It’s just like designing a house,” said Fred. “People like to

Cally Roberts waters plant in the Traverse des Sioux Garden Center’s greenhouse. do outdoor projects to make their patios and decks more livable. Even here with our limited summer, people still like to have an outdoor living space.” Designing an open-air living room may seem like a daunting task, but the Strucks are practiced in walking their customers through each step. In general, they said they recommend beginning with larger plants that take time to grow, and filling in the smaller, less expensive items as needed. “One thing about landscaping is that you don’t have to do it all at once,” Fred said. “You can spread it out over several years if you don’t want to spend all the money up front.” On a smaller scale, Keith said that he has enjoyed seeing local enthusiasm for houseplants steadily increase. Possibly encouraged by social media interest, houseplants have become a popular pastime for young and old alike. “Houseplants work great as a hobby,” he said. “Southern Minnesota has a great houseplant following.” Keeping the greenhouse thriving isn’t all fun consultations and new trends. A large percentage of the staff’s activity is dedicated to caring for their stock so that it is as healthy as possible

for their buyers. Pruning and potting are still on Keith’s daily agenda, as is repeated watering. Giving each thirsty plant a drink can take up to four hours. On hot summer days, the plants are often watered twice. Manual work and wrangling water hoses is worth it to the Strucks, who count it all as being part of their dream careers. They credit their 40 years of success to a love for what they do, as well as a genuine interest in their customers’ visions. The Traverse des Sioux Garden Center’s dedicated customer base seems to suggest that this is a winning business strategy. “Some of our customers are third generation - we’re selling things to the grandchildren of some of the original customers,” Fred said. “It’s definitely a family business.” MV

MN Valley Business • JULY 2021 • 17

Business and Industry Trends ■

Energy

Electricity use to rise

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The Energy Information Administration forecasts that electricity consumption in the United States will increase by 2.2% in 2021 after falling 3.9% in 2020. We forecast electricity sales to the industrial sector will grow by 3.3% in 2021. Electricity sales to the residential sector will grow by 2.9% in 2021, which is primarily a result of colder temperatures in the first quarter of 2021 compared with the same period in 2020. Electricity sales to the commercial sector will increase by 1.4% in 2021. Much of the increased electricity consumption across the sectors reflects improving economic conditions in 2021.

More coal, renewables

As a result of the higher expected natural gas prices, the forecast share of generation from coal rises from 20% in 2020 to 24% this year and to 23% next year. New additions of solar and wind generating capacity contribute to the expectation that the renewables share of U.S. generation will rise from 20% in 2020 to 21% in 2021 and to 22% in 2022. The nuclear share of U.S. generation declines from 21% in 2020

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18 • JULY 2021 • MN Valley Business

to 20% in 2021 and to 19% in 2022 as a result of retiring capacity at some nuclear power plants.

Retail/Consumer Spending

Coal production up

U.S. coal production should total 582 million short tons in 2021, 43 MMst (8%) more than in 2020. The increase in coal production is primarily driven by rising use of coal for electricity generation in response to rising natural gas prices.

CO2 to rise this year

We estimate that U.S. energy-related carbon dioxide (CO2) emissions decreased by 11% in 2020 as a result of less energy consumption related to reduced economic activity and responses to COVID-19. In 2021, we forecast energyrelated CO2 emissions will increase about 6% from the 2020 level as economic activity increases and leads to rising energy use. We also expect energy-related CO2 emissions to rise in 2022, but by a slower rate of 2%.

Natural gas use soared

In 2020, both natural gas consumption in the U.S. electrical power sector and natural gas exports reached record highs, despite a 2% annual decline in domestic dry natural gas production. Dry natural gas production doesn’t include natural gas plant liquids, such as ethane and propane.

Vehicle Sales Mankato — Number of vehicles sold 801 1,423

1500

- 2020 - 2021

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)

- 2020 - 2021

600

$386,391

500

$388,522

400 300 200 100 0

Source: Sales tax figures, City of Mankato

In 2020, NGPL production grew to a record-high 2.7 trillion cubic feet, up 7% from 2019. Natural gas consumption in the U.S. electric power sector grew to a record-high 11.6 Tcf in 2020, up 3% compared with 2019. The U.S. electric power sector has consumed more natural gas than any other sector in five of the past six years. Electric power was the only sector that increased its natural gas consumption in 2020. Natural gas has become an increasingly important source of energy for U.S. electricity over the past several years. Natural gas has remained the primary source of electricity generation in the United States since it surpassed coal in 2016. More than 100 coal plants have been replaced with oor converted to natural gas since 2011. U.S. natural gas exports increased to a record-high 5.3 Tcf in 2020, up 13% compared with 2019. U.S. exports of natural gas have grown substantially over the past decade, and in 2017, exports surpassed imports of natural gas for the first time since 1957. About 55% of U.S. natural gas exports in 2020 were sent by pipeline to Mexico and Canada. Most of the rest was shipped overseas as liquefied natural gas. Mexico receives more U.S. natural gas exports than any other country, and U.S. natural gas exports to Mexico reached a record high of 2.0 Tcf in 2020. U.S. LNG exports also increased to a record high in 2020, and almost half went to Asia.

Lodging tax collections Mankato/North Mankato

- 2020 - 2021

70000

$23,772 $31,429

52500 35000 17500 0

Source: City of Mankato

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

$63,561 $52,582

70000 35000 0

Source: City of Mankato

C. Sankey

MN Valley Business • JULY 2021 • 19

■

Agricultural Outlook

By Kent Thiesse

Farmer optimism at high levels this summer R ecent surveys have shown that optimism among farmers for both the current ag economy and the future outlook for farm profitability are quite favorable. This optimism is not surprising, given the much higher levels of net farm income in 2020, the current strength in most of the commodity markets, and the prospects for a profitable year in 2021 in most ag sectors. The 2020 net farm income levels in that region were enhanced by robust crop profits that resulted from above average crop yields, improved grain market prices, and significant levels of government program payments. Livestock profit margins were also improved compared to recent years; however, at much more modest levels than crop profits. Purdue University does a monthly survey called the “Purdue/CME Ag Economy Ag Barometer” to gauge farmer optimism regarding the current state of the ag industry and future expectations regarding the farm economy. In recent years, there have been some wide swings in the monthly Ag Barometer data, primarily due to the trade war with China in 2018 and 2019, the Covid pandemic in 2020, and now the rapid rise in commodity prices in late 2020 and 2021. A recent Ag Barometer reading in late April had an average reading of 178, which is just 5 points below the all-time high reading in October of 2020. A year ago in April, during the early stages of the Covid pandemic, the average reading was at only 96 points, which was near the lowest ever recorded. The recent Ag Barometer listed a score of 195 for current conditions in the overall ag economy, as compared to 169 for future expectations for the economy. Some farmers expressed concern over rising input costs and potential future tax policies being considered by Congress and the Biden Administration. By nature, farmers tend to be more optimistic about the future than most other occupations. Most farmers invest several hundred dollars per acre into crop input costs for seed, fertilizer, chemicals and fuel each year, as well as added overhead expenses for land costs, farm machinery, labor, etc. Much of this investment is made before they ever plant a crop in a given year. So outside of some crop insurance coverage, the farmer is carrying most of the weather risk, marketing risk, and financial risk for that crop. In 2021, a typical farmer on cash rented land probably has about $600 to $650 per acre in land

20 • JULY 2021 • MN Valley Business

costs and direct expenses for seed, fertilizer, chemicals, fuel, repairs, interest, etc. invested in the corn crop and about $400 to $450 per acre invested in the soybean crop. In addition, a typical farmer likely has another $75 to $100 per acre in machinery and facility depreciation costs, labor expense, insurance and other overhead expenses. Most farmers also target a minimum of $50 per acre return to labor and management on cash rented acres, which would bring the total crop investment to $750-$800 per acre for corn and $550 to $500 per acre for soybeans. So, a farmer with 1,000 acres of corn and soybeans that is under cash rental contracts that is planted half to corn and half to soybeans will likely have a total investment into the 2021 crop of $650,000 to $700,000. Based on the previous example for expenses, using typical corn and soybean yield targets, the 2021 breakeven price to cover direct and overhead expenses in 2021 would be about $3.75 to $4.00 per bushel for corn and $8.75 to $9.00 per bushel for soybeans. If you include a $50.00 labor and management return, the breakeven prices in 2021 rise to near $4.35 per bushel for corn and $9.75 per bushel for soybeans. If 2021 crop yields are higher than typical yields, the breakeven price to cover crop inputs will be reduced; however, if yields are lower than expectations, the breakeven costs will increase. For example, a 10 percent decline in the 2021 corn and soybean yield, which is typically not covered by crop insurance, would increase the breakeven prices to around $4.75 per bushel for corn and $10.75 per bushel for soybeans. The 2021 new crop price for harvest delivery at local elevators and processing plants has been near $5.00 per bushel for corn in recent months at most locations across Southern Minnesota. The new crop corn prices were below $4.00 per bushel at the start of 2021 and have risen to over $5.50 per bushel at times this Spring. New crop soybean prices for Fall delivery in 2021 have been near $13.00 per bushel in recent months at local elevators in Southern Minnesota, with slightly higher new crop bids at soybean processing plants in the region. The 2021 new crop soybean prices started the year below $11.00 per bushel, rising to above $13.00 per bushel by early May. Local new crop corn and soybean bids for the Fall of 2021 in other regions may be higher or

lower than the Southern Minnesota grain bids, depending on the “basis” level in a given area. The “basis” level is the difference between the local bid prices and the December corn futures price and November soybean futures price on the Chicago Board of Trade (CBOT). Basis levels for both the corn and soybean local cash prices and new crop bids have been highly variable in recent months across the Midwest, depending on local grain demand and 2021 U.S. crop production estimates. Local cash bids in Southern Minnesota for corn store on the farm have ranged from $6.50 to over $7.00 per bushel since mid-April, with local soybean price bids over $15.00 per bushel. As prices rose above breakeven levels last Fall, most farmers began selling their 2020 crop. A large majority of the corn was sold from $3.50 to $5.00 per bushel and most soybeans from $8.50 to $10.50 per bushel, well below current levels. A very small percentage of the 2020 crop has been sold at the current high price levels since April of this year, as a majority of farmers had already sold their grain. 8 farmers have been struggling with Many making grain marketing decisions for the 2021 crop. 6On one hand, the current new crop price bids are above breakeven levels for both corn and 4 soybeans; however, farmers do not want to miss a potential run-up in prices, such as occurred with the 2020 crop. A lot of farmers are taking a mixed 2 approach to marketing the 2021 crop, locking in a portion 0 of the crop as a risk management tool, but M A Mopportunities J J A open S O onNtheD keeping Jthe Fmarketing remaining bushels. Looking ahead to the 2022 crop year, one of the big concerns is the likelihood of higher crop input expenses and land costs for next year. The price 8 of most forms of nitrogen fertilizer have risen by 50 to125 70 6 percent since the beginning of 2021. The cost105 of most forms of phosphorus and potassium have risen by 25 to 35 percent since the beginning 4 of the85year. The cost of fertilizer inputs for corn production in 2022 are likely to be 50 percent or more652higher than 2021 fertilizer costs. Crop input costs are also expected to be higher 45 0 chemicals, fuel and repairs in 2022, as for seed, J F M A M J J A S O N D compared to expense levels in 2021. Land rental 25 M also A likely M J to Jincrease A S O N D rates for J2022F are substantially in many areas, as most land rental rates in a given year are based on farm profit levels from the preceding year. Most 2021 land rental 125rates were set in the Fall of 2020, prior to the current rise in commodity prices. 105 Approximately two-thirds of the crop land in many areas of the Corn Belt is under some type of cash 85 rental agreement. Land values have also increased substantially in recent months in many areas, 65 which tends to raise property taxes on owned land. 45 It is quite likely that breakeven costs on cash 25 J for F the M 2022 A Mcrop J year J will A Sbe near O N D rented land $5.00 per bushel for corn and near $11.00 per bushel for soybeans. Based on the latest USDA price projections, the national average prices for

Agriculture/ Agribusiness Corn prices — southern Minnesota

(dollars per bushel)

— 2020 — 2021

$6.84

2 0

$2.87

Source: USDA

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

(dollars per bushel)

$15.39

8 65 2 $7.99 4 45 0 0 J F M A M J J A S O N D 25 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Iowa-Minnesota hog prices

185 pound carcass, negotiated price, weighted average

— 2020 — 2021

20 125 25 16 105 $114.80 22 12 85 19 8 $51.71 65 16 4 45 13 0 J F M A M J J A S O N D 25 10 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Milk prices

Minimum prices, class 1 milk Dollars per hundredweight

— 2020 — 2021 25 22

$16.21

19 16 13 10

$13.87 J

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

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

C. Sankey

MN Valley Business • JULY 2021 • 21

25 22 19 16 13 10

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

- 2020 - 2021 (in millions)

8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0

- 2020 - 2021 (in millions)

$2,444 $4,245,533

25000000

10000000 5000000 J

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

Existing home sales: Mankato region - 2020 - 2021 (in thousands) 153 300 177 240

Median home sale price: Mankato region - 2020 - 2021 (in thousands) $206,000 300 $219,750 240 180

180

120

0 J

Source: Realtors Association of Southern Minnesota

Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

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

Housing starts: Mankato/North Mankato

— 2020 — 2021

- 2020 - 2021

5.5

4.9

4.3

3.3%

3.7

3.1 2.5

$12,354,364

15000000

Source: City of Mankato

$2,915,536

20000000

3.0% J J

8 A

Source: Freddie Mac

Read us online!

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22 • JULY 2021 • MN Valley Business

Source: Cities of Mankato/North Mankato

the 2021-22 marketing year are estimated at $5.70 per bushel for corn and $13.85 per bushel for soybeans. The 2021-22 marketing year runs from September 1, 2021 through August 31, 2022. The 2021-22 USDA price projections based on continued strong export markets and fairly tight supplies for both crops. If the export markets to China soften in the next twelve months, or if the U.S. corn and soybean production in 2021 exceeds projections, it will likely put considerable downward pressure on the USDA price estimates. However, if drought conditions intensify in the U.S. this summer, we may see even stronger corn and soybean prices.

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

Gas Prices Gas prices-Mankato

— 2020 — 2021

5 4

$2.70

3 2 1.99

1 0

Gas prices-Minnesota

— 2020 — 2021

5 4 2.67

3 2 1 0

$2.01

Source: GasBuddy.com

Stocks of local interest

May 10

June 8

Percent change

Archer Daniels

$67.63

$68.66

+1.5%

Ameriprise

$264.10

$264.86

+0.3%

Best Buy

$125.79

$117.10

-7.0%

Brookfield Property

$21.70

$18.73

-13.7%

Crown Cork & Seal

$112.61

$99.59

-11.6%

Consolidated Comm.

$8.34

$8.08

-3.1%

Fastenal

$53.75

52.78

-1.8%

General Mills

$63.83

$63.72

-0.2%

Itron

$85.10

$95.63

+12.4%

Johnson Outdoors

$133.46

$122.65

-8.0%

$207.33

$203.73

-1.7%

Target

$214.03

$230.89

+7.9%

U.S. Bancorp

$61.17

$60.54

-1.0%

$6.0

$4.60

-23.3%

$72.59

$70.12

-3.4%

Winland A

C. Sankey

Xcel

C. Sankey

MN Valley Business • JULY 2021 • 23

■

M i nnes ota B u s i nes s Upd a tes

■ Gener

a l M i lls do wnsi

z i ng

Sales of safety products played a key role in the May 2021 results, as this category posted a 136.3% onemonth gain in May 2020 compared to a 44.1% drop in May 2021.

General Mills is downsizing its workforce to prepare for post-pandemic changes in the ways people buy and eat food. The Golden Valley-based food maker just finished its 2021 fiscal year, which was on pace to be one of its best for sales after people, forced to stay home by the coronavirus, ate more of its ready-made products. But that burst in sales could reverse as the pandemic ends, the Star Tribune reports. General Mills executives are moving to lower costs, including cutting jobs, on the expectation that the company will return to the slow growth that was normal before the pandemic. General Mills said the restructuring was expected to cost $170 million to $220 million, chiefly for severance payouts. d title of chief strategy and growth officer. Longtime chief supply chain officer John Church – who led the unit through one of its most challenging years — is being given a new title of chief transition officer and enterprise services officer.

■ F a stena

l sa

■ ADM

b ui ldi ng N . D . pla nt

Archer Daniels Midland plans to build a crushing facility in Spiritwood, North Dakota, in a bid to meet the growing demand for renewable products. This will be the first soybean crushing plant and refinery in North Dakota. The $350 million facility will come with stateof-the-art automation technology and the capacity to process 150,000 bushels of soybeans per day. The construction of this facility is likely to be concluded by the 2023 harvest season. The company also announced a $25 million expansion of refining and storage capacity of its existing facility in Quincy, Illinois. ADM has seen solid performances in the crushing business, driven by strong margins in soybean and softseed crushing on the back of healthy demand for vegetable oil and tight soybean stocks.

les f a ll

■ S tr ug

Sales for Fastenal, a provider of industrial and construction supplies and supply vending services, fell 3.2% from $493.2 million in May 2020 to $477.2 million in May, 2021.

g le to f i nd w or k er s

The economy is recovering but plenty of pandemicera problems remain: Working parents are struggling to find adequate child care, and people in jobs that require

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

659 2,225 1,513 5,119 9,516

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

139 269 130 503 1,041

Construction

126000 126000 Manufacturing

Retail 113000 Services 113000 Total*

April 16,610 34,348 40,777 138,738 230,473

2021

126000

1400 700

100000

Minnesota Local non-farm jobs

-73.5% -87.4% -90.4% -89.9% -88.4%

8000 2800 2800 6000 2100 2100 4000 1400 1400 2000

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

700 D

300000

2,790 2,890

240000 180000 120000 60000

700 0 0

- 2020 - 2021

(in thousands)

12000 3500 3500 10000

24 • JULY 2021 • MN Valley Business

2100

113000

Percent change ‘20-’21

4,398 4,336 3,923 14,026 26,683

3500

123,110

2800

-78.9% -87.9% -91.4% -90.2% -89.0%

Minnesota initial unemployment claims 2020

122,883

139000

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

Major Industry 139000 139000

- 2020 - 2021

Nine-county Mankato region

F M

M A A M

M J

J J

J A

A S

S O

O N

N D

first large-scale solar investment in Wisconsin, though the utility has three 1-megawatt community solar gardens where customers can lease panels. Xcel projects it will need to add at least 3,000 megawatts of solar capacity across its Minnesota and Wisconsin territories over the next decade in order to cut carbon emissions by 80%. Xcel was the nation’s first large investor-owned utility to commit to generating carbon-neutral electricity by 2050. Xcel said the Western Mustang project will cost its roughly 260,000 customers in Wisconsin and northern Michigan about $7 million less than alternative 139000 generators over the project’s 35-year lifespan. The Public Service Commission voted unanimously to approve 126000 the purchase.

face-to-face interactions must weigh the health risks of returning to work. Best Buy CEO Corie Barry said during a media call that they are seeing a dip in job applications — although it does still receive more applications than it has open positions.

■ Walmart, Target closed Thanksgiving Walmart announced its stores will be closed on Thanksgiving Day, joining big-box rival Target in shutting its brick-and-mortar locations on the national holiday. With the move, two of the country’s largest discounters are showing how the pandemic has permanently influenced the industry — even as Covid-19 cases drop and the health crisis wanes in the U.S. It will mark the second straight year in which Target’s and Walmart’s stores are closed on Thanksgiving. For many years, consumers kicked off their holiday shopping in earnest the day after Thanksgiving, which is also known as Black Friday. But until last year, some retailers had been shifting the kickoff of Black Friday events earlier.

■113000 3M wins latest round

3500 2800 2100 1400

After losing round one, 3M has won the latest round 700 in a massive legal battle over allegations it sold shoddy 100000 to the U.S. military. 0 earplugs J F M A M J J A S O N D J A federal jury in Pensacola, Florida, rejected claims in the second of three trials that 3M knowingly sold earplugs with design defects, thus causing hearing damage to a military veteran. The 139000 3500 first trial in April went the plaintiffs’ way, with a 12000awarding $7.1 million — mostly in punitive 300000 139000 3500 jury 2800 — to three U.S. Army veterans. damages ■ Excel solar project OK’d 240000 2800 10000 126000 At least 230,000 claims from military veterans are Wisconsin regulators have approved Xcel Energy’s 2100 8000 126000 pending against 3M in federal court in Florida, one of 180000 $104.5 million purchase of a solar farm under 2100 the1400 largest mass torts ever. 6000 development 113000in northwest Wisconsin. 120000 1400 4000 113000 The 74-megawatt Western Mustang facility is Xcel’s 700 700

100000 100000 J F

J M

M J

J A

J S

A O

S N

O D

10,000 4,930

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

262,500 124,500

240000 180000 120000 60000 0

J JA

J JS

A AO

S N S

O D O

N N

D D

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

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

60000 J

0 F

J M

F M A A M J

M J

J A

2020

2021

7.6% 56,510 4,654

3.4% 58,106 2,046

J S

A O

S N

O D

Unemployment rates Counties, state, nation County/area

- 2020 - 2021

M MJ

Mankato/North Mankato Metropolitan statistical area

240000

300000

D 0

300000

Minnesota number of unemployed

- 2020 - 2021

Nine-county Mankato region

60000

Employment/U nemployment

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

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

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

April 2020

April 2021

8.0% 4.5% 8.3% 9.8% 6.5% 6.9% 7.3% 8.1% 5.5% 3.1% 4.5% 4.5%

3.5% 3.6% 4.7% 5.0% 3.5% 3.2% 4.2% 4.9% 3.5% 4.3% 4.5% 6.2%

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

MN Valley Business • JULY 2021 • 25

Sponsored by the Carl & Verna Schmidt Foundation

Coinbase vs. Robinhood: Which is better? By Chris Davis | NerdWallet

proper comparison of Coinbase and Robinhood depends on what service you’re looking for. Robinhood follows the playbook of a traditional stockbroker. Through the app, you can buy stocks and exchange-traded funds on the stock market, but it also has a limited menu of cryptocurrencies. Coinbase, on the other hand, only offers cryptocurrencies (no stocks or ETFs here), and a lot more of them. Plus, Coinbase has capabilities that could be considered essential when buying crypto — capabilities Robinhood currently doesn’t have.

Fees

One advantage Robinhood has over Coinbase is the cost to purchase cryptocurrencies. On Robinhood, it’s free. You can buy and sell crypto as frequently as you want with no fees whatsoever (and pattern day trading rules that exist for stocks don’t currently exist for crypto). You’ll still have to pay the spread (the difference between the bid and ask price). It’s worth noting that in 2020, a Securities and Exchange Commission order found that Robinhood provided “inferior trade prices,” costing customers $34.1 million. The SEC investigation was about Robinhood’s marketing and execution in general and not crypto trades specifically. Robinhood agreed to pay $65 million to settle the charges. On Coinbase, it’s not so simple. Coinbase has a widely varying fee structure, depending on the amount you’re buying in U.S. dollars and how you’re paying for it. For example, if you’re buying $100 in Bitcoin with a debit card, you’ll pay a fee of 3.99%, or $3.99. If you pay with a linked bank account, that fee would be a flat $2.99. Fees winner: Robinhood.

Cr ypto capabilities

This is another category that Coinbase should win by default: Robinhood is a stockbroker that dabbles in converting USD into cryptocurrency, while Coinbase is a cryptocurrency brokerage and exchange that also offers a hosted wallet, as well as a personal wallet if you want it. What does that mean? With Coinbase, you have the option to buy crypto with cash, then store those coins on Coinbase’s hosted wallet. Or you can send those coins to your own Coinbase Wallet, which is completely separate from Coinbase the app. There’s also the free Coinbase Pro exchange, where you can easily deposit coins from your Coinbase hosted or personal wallet, then trade them for a much lower fee. In short, Coinbase is a really good onramp for new

26 • JULY 2021 • MN Valley Business

crypto users, offering users many of the capabilities cryptocurrencies were created for in the first place. With Robinhood, you can’t send coins out of the app, nor receive them from an outside wallet. Really, your only option is to convert your USD into crypto, then convert it back to USD if you want to benefit from any rise in price. Cr ypto capabilities winner: Coinbase.

Technical reliability

The truth is that both companies have struggled with outages when trading volume spikes. And this, typically, is when users are most eager to have full control of their funds, whether it’s a crypto surge or crash. So until either platform can prove it can handle an unexpected influx of activity, users should be aware that this is a real possibility. However, according to Downdetector, Robinhood has had 49 reported outages in 2021, while Coinbase has had 28, giving Coinbase a slight edge by this metric. Technical reliability winner: Coinbase.

Ease of use

Both apps are incredibly intuitive, fast, clean and easy to use, and that makes sense: Both companies earn a large portion of their revenue through transaction volume. The more people are buying and selling, the more money they make. So it’s in their best interest to create a product that entices buying and selling, even in small amounts and reduces every bit of friction that exists on the way to pressing the “buy” button. The end result is a product that’s excellent for beginners in the sense that the buy and sell process is stripped down to the basics; though some argue that it actually shouldn’t be this easy for beginners to trade in risky, speculative assets like cryptocurrency. Coinbase Pro can feel more like an intermediate-toadvanced trading platform, but if you’re not ready to wade into that, the basic Coinbase platform remains extremely easy to use, as long as you’re OK paying those fees. With Robinhood, you’ll never really come across anything that resembles an advanced trading platform. Ease of use winner: It’s a draw.

So which is better, Robinhood or Coinbase?

When it comes to cryptocurrencies, Coinbase is the clear winner here. MV

Sponsored by the Carl & Verna Schmidt Foundation

10 of the best small business opportunities By Meredith Wood | NerdWallet

hese small business opportunities are ideal for aspiring entrepreneurs who want to work from home, or who simply want to start a business in a promising, fast-growing industry.

started. But if cooking is your passion, then a food truck might be the way to go.

6. Freelance writer

People with backgrounds in human resources, workforce development, and career services are especially well-suited for this business. If you want to specialize as a career coach for a specific field, you’ll need industry experience. Above all, you need to be an excellent listener and understand how to help people achieve their goals and dreams.

Besides a computer and a bookmarked online dictionary, freelance writers need an impeccable handle on the English language and fairly thick skin to get started in this industry. It helps to have experience with a couple of niches, like finance or health writing, and areas of expertise, like copywriting or SaaS content writing. This job can be performed anywhere you have internet access, making this one of the best small business opportunities from home.

2. Cost-cutting consultant

7. Golf coach

1. Career coach

Businesses are always looking for ways to save money. As a cost-cutting consultant, your job is to help trim the fat from a business budget and offer efficient solutions to complex problems. You need a good head for numbers, an eye for details, and general understanding of the overall operational issues a business might have.

Getting paid to hang out at your favorite golf course all day, giving pointers to players interested in improving their games... What could beat that? Besides a thorough enjoyment of the game, you’ll need to cultivate relationships with golf courses in your community and let them know about your service, be a top-notch player, and have the communication skills to teach beginners.

3. Errand ser vice

8. Interior decorator

People are busy, so they’re often willing to pay for convenience. Errand services take care of the little things that people don’t have time to do, like dropping off dry cleaning, grabbing groceries or office supplies, or even stopping by the bank. You’ll definitely need a car—and make sure to visit your agent, as you’ll want commercial auto insurance for your business vehicle.

4. Event/wedding planner

According to the Bureau of Labor Statistics, the event planning industry should experience faster-than-average growth—11% over the next 10 years. Event planners put together all kinds of events, from weddings to business conventions, birthday parties, and office holiday parties. Hospitality experience is a good start for aspiring event planners.

5. Food truck

According to Mobile Cuisine, the food truck industry has experienced a 12.4% growth trend over the past few years, skyrocketing to a $1.2 billion dollar industry as of 2015—and things have only gotten better since then. This business is a bit trickier than the others we’ve looked at so far. You’ll need a unique idea for food items to offer, a truck to service customers, proper insurance, business licenses, operating permits (depending on the city you’re operating in), health code compliance documents, and an inventory of food items just to get

If you have an eye for design and a skill for making a room look magazine-cover ready, interior decoration might be a great business for you. Besides creativity, you’ll need to have a knack for project management, a knowledge of design and architecture history, and CAD (computer-aided design) or drawing skills. You also need to be up-to-date on building regulations. You can market your business to building contractors or new home buyers looking for an expert opinion.

9. Professional organizer

The average American spends a total of two-and-a-half days each year looking for lost items like remote controls, books, socks, keys—and even cars. Sometimes people’s homes or offices are cluttered because they’re so busy, and other times they might just be messy. Either way, there’s no end of business for the professional organizer.

10. IT contractor

Small businesses often don’t have the resources for an in-house IT department, but still need help troubleshooting, repairing, and upgrading their equipment. Tech-savvy individuals who go into business for themselves need to keep their computer hardware and software skills current and should be on-call whenever a client has a technological emergency. MV

MN Valley Business • JULY 2021 • 27

BOOST YOUR CAREER TO A NEW LEVEL GREATER MANKATO PROFESSIONAL DEVELOPMENT

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28 • JULY 2021 • MN Valley Business

Meet the

Board of Governors Gary Koch Chair Christensen Farms

As elected volunteers, GreenSeam Board of Governors is committed to redefining agribusiness in the region. These professionals lend their expertise and passion for ag to lead GreenSeam on its mission to elevate the region as the world-class food and agribusiness epicenter.

Chad Suprenant Vice Chair ISG

David Krause Past Chair Pioneer Bank

Marques Doppler Secretary/Treasurer Profi nium

JO Bailey At-Large

Brenda Flannery At-Large

SignPro/JGBailey Media & Communications

Minnesota State University, Mankato

Brian Buhr University of Minnesota

Ryan Dutton SDN Communications

Ryan Erickson AGCO Corporation

Brian Fowler Quality 1 Hr. Foto/ Sports Pix

Terri Jensen National Land Realty

Wayne Kahler Kahler Automation

Matt Lessard MBU Technologies

Jim Marzolf Pipestone Systems

Check out the Greater Mankato Growth Blog!

Mark Greenwood Compeer Financial

Wesley Beck Beck Farm

Jim Heilman CliftonLarsonAllen

Tim Penny

Andrea Vaubel

Ex-Officio Non-Voting

Ex-Officio Non-Voting MN Department of Agriculture

Southern MN Initative Foundation

Seize a Business Focus Opportunity

greatermankatoblog.com

BUSINESS FOCUS

Sign up and record a 60-90 second video format featuring a Greater Mankato Growth member. Available to all members on a first come, first served basis, for a nominal fee.

greatermankato.com/business≠ focus

MN Valley Business • JULY 2021 • 29

Join today! NEW LOCATION

Comfort Inn & Suites 2000 Commerce Drive, North Mankato, MN 56003

SAVE THE DATE!

Skydive Northstar 35493 110th Street, Waseca, MN 56093

Greater Mankato Growth is committed to advancing business for a stronger community as the regional chamber of commerce and economic development organization.

Wednesday, August 11 I ISG Field, Mankato | 4:00 pm

CELEBRATION OF AG Join us to celebrate the success of Ag, network with leaders in the GreenSeam, and enjoy a Mankato MoonDogs game!

GREENSEAM.ORG

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Minnesota Valley Business

Articles inside

■ Local Business memos/ Company news

■ Schmidt Foundation

■ MRCI

■ Agriculture Outlook

■ Agribusiness trends