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F E A T U R E S December 2016 • Volume 9, Issue 3
8
The area’s major employers have had a fairly strong year, but they continue to find difficulty in finding employees and the manufacturing sector has slumped.
6
Dean Swanson of SCORE says that small businesses can reap the many rewards that come from video marketing without spending a lot of money to do it.
12
Bob Wendt of Mankato has been a Master taxidermist since 1985 and has built a strong reputation in the industry with his work featured in Gander Mountain and Scheels.
14
The Cedar Inn drive-in in Blue Earth was for decades a local landmark, but was forced to close in 2013. Now the drive-in is back serving food and memories.
MN Valley Business • december 2016 • 3
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December 2016 • VOLUME 9, ISSUE 3
By Joe Spear
PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Heidi Sampson Dean Swanson PHOTOGRAPHERS Pat Christman COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Phil Seibel MANAGER ADVERTISING Jordan Greer Sales Josh Zimmerman Marianne Carlson Theresa Haefner Thomas Frank ADVERTISING Barb Wass ASSISTANT ADVERTISING Sue Hammar DESIGNERS Christina Sankey CIRCULATION Justin Niles DIRECTOR For editorial inquiries, call Tim Krohn at 507-344-6383. For advertising, call 344-6336, or e-mail mankatomag@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.........................6 ■ Business and Industry trends..........16 ■ Retail trends.....................................17 ■ Construction, real estate trends.....18 ■ Gas trends........................................19 ■ Stocks...............................................19 ■ Agriculture Outlook..........................20 ■ Agribusiness trends..........................21 ■ Minnesota Business updates............22 ■ Job trends.........................................22 ■ Greater Mankato Growth..................24 ■ Greater Mankato Growth Member Activities ...........................26
From the editor
Mankato’s manufacturing job loss a conundrum
A
mong the many laudable milestones of the Mankato regional economy, the growth of jobs has always been much followed. More jobs mean more money poured back into the economy. Job growth in the MankatoNorth Mankato metropolitan statistical area has been higher than job growth in regional centers around the state for years at a time. With total jobs at 55,964 in 2016, employment is the highest it has been since 2007. From 2010 to 2014, the Mankato-Nor th Mankato metropolitan statistical area had the highest growth in personal income and per capita personal income of any MSA in Minnesota. But a recent report showed that average Mankato area wages are losing ground to inflation. The report on the regional economy in the Star Tribune showed the Mankato area has some of the fastest economic growth and job growth, low unemployment and burgeoning development. But by one measure, average area wages have dropped 10 percent in inflation adjusted dollars. The number can look worse than it is. It stems mostly from a decline in area manufacturing jobs which tend to have pay 25 percent more than the average job in the region. And the Mankato region lost 864 manufacturing jobs from 2008 through 2015, about 8 percent of the total, according to statistics from the Minnesota Department of Employment and Economic Development. The average wage decline is still real and still not a good number, but it may be more driven by business trends than the inferred unwillingness of
4 • december 2016 • MN Valley Business
Mankato employers to pay higher wages. Even changing the years we measure can change the outcome. The Star Tribune took the years from 2008 until 2015, presumably measuring how the economies of Minnesota are doing after the Great Recession. But, if you take a 10-year look at the wages, from 2006 to 2016, average wage growth is almost 5 percent even when you consider inflation. Still not stellar, but better. Part of those manufacturing jobs were lost to industries in Mankato that have business connected to the oil industry. The worldwide decline in oil prices hit Kato Engineering particularly hard. The company laid off 80 employees in 2015, another 50 in January of this year. The company said demand for its alternators from the oil industr y was declining with the decline in oil prices. So worldwide business trends impact local manufacturers. And that’s likely to be the case for years to come. Manufacturing industries are good for local economies because they pay higher wages and they bring in money from outside the region, but they are also subject to world economic forces like changes in the price of a commodity. It’s important to note other Mankato industry wages are beating the rate of inflation from professional and technical service wages (30 percent higher than inflation) to wholesale trade (21 percent higher than inflation.) That wholesale number might be impacted by the new Wal-Mart Distribution Center, which certainly had an impact on the average wage with 500 new jobs. And on the plus side of that, jobs in wholesale trade pay an
average of $52,000 per year, while manufacturing pays $48,000 per year. So an increase in wholesale trade may indeed help bring those average wages back up, especially if Wal-Mart’s distribution center expands. While Mankato’s loss of manufacturing jobs may be related to cyclical commodity industries like oil, it’s concerning nonetheless. While the region lost 8 percent of its manufacturing jobs from 2008 to 2015, the state as a whole only lost 3 percent, St. Cloud lost 1 percent and Duluth lost 5 percent. We have to look at the type manufacturing we have and how diverse the base is among different industries. Then we can gauge what kind of risk the economy faces with a decline in manufacturing.
Local Business People/Company News
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Sauter joins Farrish Johnson
Attorney Amy E. Sauter has joined Farrish Johnson Law Office. She practices in the areas of family law, dissolution law and custody law. A Minnesota State University graduate, Sauter received her law degree, cum laude, from Thomas M. Cooley Law School, and returned to Minnesota where she was in private practice for six years in the St. Cloud area. Farrish Johnson has been serving Mankato and southern Minnesota for more than 120 years. ■■■
Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382. Follow on Twitter @jfspear.
Huiras joins Connect
Joe Huiras has joined Connect Real Estate as a broker associate. Originally from Sleepy Eye, Huiras attended Mankato State University and has lived in
Mankato for the past 14 years. He has been in the real estate business since 1992. ■■■
Rose joins Alpha Media
Alpha Media has named Bob Rose as market manager. The market is home to 105.5 The River, Z99, Real Country 103.5 and 95.7 The Rock Station. Rose has a 35-year career in radio, most recently managing stations in Sioux Falls and St. Cloud. Prior to the transition into sales and management, Rose’s on air experience includes that of a program director, news director, sports director and music director. A native of New Ulm, Rose started his radio career as a weekend announcer at KYSM while still attending Brown Institute. ■■■
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Allen joins True Real Estate
Realtor Sarah Allen has joined True Real Estate in their Mankato location. Allen has a Bachelor’s degree in mass communication and a Master’s in communication studies from Minnesota State University.
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MN Valley Business • december 2016 • 5
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Business Commentary
By Dean Swanson
I
Video marketing on a small business budget
have suggested that small you want to attract new businesses should consider customers, or encourage existing using video in their marketing customers to come back more strategies because more and often? There are plenty of more data in the marketing different types of videos you can world are showing that this make, but without a specific enhances sales and customer business goal as a benchmark, response. But, I got a good you run the risk of wasting time question from a reader who said, and effort. “Get real, Dean, how can a small Tell the right stor y: business afford to do this?” That To get the most out of your is a good question, so let me limited budget, you’ll want to expand a little. choose the right video to start. In fact, I sought the help of How can you know what’s right? Tyler Lessard, CMO of Vidyard. That’s why everything starts on He is the chief marketing officer the page — revisit your goal and at a company that is a pioneer decide if you want to walk your and leading global provider of customers through the way your video marketing and video products work (explainer analytics solutions for marketers, videos), tell them how your small sales teams, and corporate business got started (origin learning. I was excited to hear stories) or introduce them to him relate that he “also has the other customers who love your incredible opportunity to be a product (customer advocacy). “space camp counsellor” at their Each of those approaches will annual video marketing summit. accomplish a different goal. If I picked his brains on this topic. you want to encourage Small business owners may not customers to buy your product, think they have the time, money an explainer video is a great or manpower to invest in video place to start. If you want to marketing, but it really is easier make your customers feel like than many people think. While part of a community, an origin there are certainly multi-millionstory can help them feel like dollar video marketing insiders. campaigns out there, small If you’re still having trouble business owners can and do see figuring out which video best a big impact from much more accomplishes your goal, consider modest investments in video asking your customers what marketing. In fact, most people they’d like to know about your already have everything they business, or what it was that need to create and share video convinced them to seek you out content without spending extra in the first place. Knowing what dollars. customers think about when Just like in Hollywood, your they think about you can help video marketing efforts should you figure out what parts of your start on the page, rather than on business to highlight in your camera. Before you start filming, video content. you should have a clear idea of the end-goal for your video. Do 6 • december 2016 • MN Valley Business
There’s more to filming than point-and-shoot:
Once you’ve settled on your goal and the type of video you’re going to use to reach it, write a script or cue cards. Video marketing works so well because it uses both audial and visual cues to appeal to viewers’ emotions. Don’t just stand in front of a camera and shout your company tagline — take the time to tell a story that both speaks and shows the message you’re trying to get across. Now it’s time to put on your director’s hat. First, find the best camera angles and lighting for the equipment you’re working with. An iPhone and a DSLR video camera are very different, but both can shoot an effective and good-looking piece of video content, as long as you take time to figure out what looks good and what doesn’t. You’ll also want to use this opportunity to get acquainted with video editing software. Depending on what type of computer you have, you may have free software that can cut and splice together pieces of your footage, among other things. If you’ve done your prep work, shooting the video should actually be a fairly simple part of the process.
Finding the real value of video marketing:
Once filming has wrapped, what do you do with your video content? YouTube, right? Well, not necessarily, or at least not just YouTube. See, the real value of video marketing content is multi-faceted. Uploading video to
your website can increase your odds of being on the first page of Google search results by a factor of 50. You’ll want to create a YouTube channel in part because it is the second-largest search engine in the world (behind Google), and also because you want to offer a complete and compelling description for your video — add your whole script, while you’re at it. Google and YouTube robots look for keywords in the video description, meaning a good description can only help your video perform better. Video marketing content isn’t just for websites, either; it can make a positive impact at any point in your sales funnel. Why not add your “origin story” video to an email newsletter for current customers? Doing so can actually double email click-throughs. Or perhaps set your social media accounts to automatically send new followers a link to an “explainer” video. About 40 percent of consumers say watching a video on mobile increases the odds they’ll then make a purchase.
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Setting up sequels:
However you decide to use (and re-use) your video marketing content, remember that everything starts — and ends — with your business goals. Once you’ve created and begun to use your video marketing content, tracking its effectiveness can show you the return on your investment and inform your efforts for next time.
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If you’ve done your prep work, shooting the video should actually be a fairly simple part of the process. Dean L. Swanson, Southeast Minnesota SCORE, is a volunteer SCORE mentor and regional vice president.
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MN Valley Business • december 2016 • 7
After the candy is packaged it’s put in boxes and prepared for shipping at the MRCI candy plant in Kasota.
Big employers see steady growth Diverse base of major employers insulate economy By Tim Krohn | Photos by Pat Christman
T
he well-being of the top employers in the area is a litmus test of the health of the region. With some 17,500 workers, the top 25 employers in the Mankato-North Mankato Metropolitan Statistical area account for nearly one-third of all the jobs in Blue Earth and Nicollet counties. John Considine, of Greater Mankato Growth, said the major employers in the region have, overall, seen steady or slightly growing job numbers in the postrecession years — save for those who are in the manufacturing sector. “Businesses in the manufacturing industry, those job numbers have declined. They’ve shed 1,000 jobs since 2008 in the Mankato-North Mankato MSA. They
have shrunk, maybe not in their total sales but in their workforce,” Considine said. But even among manufacturers, the overall decline is not universal. Minnesota Elevator Inc., of rural St. Clair, manufactures and installs elevators across the Midwest and several other states. President Rick Lowenberg said they have been steadily growing. “We’ve grown organically by 5 percent a year and acquisitions have added 5 percent a year. We’ll continue to do that. We usually buy one company a year.” At MRCI, the fifth largest employer in the region, it’s not a question of growing in order to hire more employees but to find employment for their more than 1,000 adult clients with disabilities.
Cover Story
8 • december 2016 • MN Valley Business
John Considine of Mankato Growth CEO Brian Benshoof said the 50-year-old organization has benefited from the healthy economy in the region. “With diversity of business and the strong economy, it’s easier to find jobs for people out in the community. We have people in lots of different jobs, big and small. We have a good partnership with Imperial Plastics — they have multiple shifts of people they hire from us,” Benshoof said. “And then there’s smaller employers like restaurants that we work with.”
Hogs to higher ed
Major employers bring a largescale benefit to a region through payroll, benefits, taxes and business activity. The potential drawback is they can deliver a big bruise to a local economy if they have large-scale layoffs. Considine, the director of regional business intelligence at GMG, said that’s much less of a worry in the Mankato region than in a city where several major employers are all in the same line of work. “Our top three employers are all in different industry sectors. Taylor Companies have a variety of businesses that are in manufacturing, Mayo is in medical and there’s Minnesota State University,” he said. “It’s always good to have that diversity among the top employers. A lot of communities
don’t have that. What insulated us during the recession was our diversity in the marketplace.” Considine, who tracks a variety of data in the region, said the past year’s job numbers didn’t follow the typical course of action, which is fairly flat job numbers early in the year, followed by some variations in May and June and an increase later in the fall. “This past spring the job numbers looked really good but it was flat in May and June, which was still good, but it didn’t come back up as typical in the fall.” Still, Considine isn’t sure that’s a sign of anemic business growth, but rather the fact that employers are finding it increasingly difficult to fill jobs. “Everyone is hiring, so it seems to be more a matter of not being able to find workers.” Trying to attract and retain the workforce has been a focus of GMG and a consortium of businesses and higher education institutions. Creating more affordable housing for people wanting to move to the area to
work is a major challenge and not one that’s easily solved. Others point to another culprit for the inability to attract workers: low wages. The Star Tribune published an article noting the Mankato region boasts the fastest-growing economic output of any metropolitan area. But inflationadjusted pay in the MankatoNorth Mankato metropolitan area has fallen by almost 10 percent since 2008, even as pay has risen in St. Cloud, Rochester and Duluth, according to survey data compiled by the Minnesota Department of Employment and Economic Development. Considine said that low-wage label may be changing. “When I talk to DEED and to businesses, they are seeing wages starting to creep up. People are raising wages and doing creative things with shifts and hours to help attract people. It seems to be a change in the workforce right now.” He said the good news is that millennials graduating from area
MN Valley Business • december 2016 • 9
colleges have plenty of good options locally. “There are some big names in the area, par ticularly in agriculture. People want to work for Facebook or Google, but if you want to work for a major company and make good money and grow with them, there’s a lot available here,” he said. “Two of the top pork producers in the country are in southern Minnesota. MRCI is growing. Mayo and Mankato Clinic are growing; they’re actively recruiting and hiring and bringing
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Going up
MEI was founded by John Romnes in 1971 and has grown to a major independent elevator manufacturer and installer, serving projects such as Target Field, major airports and a variety of other private and public buildings. While passenger elevators are a mainstay, they’ve built mammoth specialty elevators, including one a few years ago for the Brooklyn Nets’ Barclays Center. The
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When NBA players arrive at the new Barclays Center, home of the Brooklyn Nets, they take this elevator, specialty elevator made by MEI, a few floors up to the main level of the complex. But the players don’t have to get off their bus to do it. elevator carries a busload of NBA players — including the bus — a few floors up to the main level of the complex. Lowenberg said the past year saw them acquire Michigan Elevator in Detroit and a small products manufacturer in Iowa. “We’re two businesses — our manufacturing, which we sell all over North America, and our installation. We service 7,000 elevators in Minnesota, Iowa, Wisconsin, Kansas, Missouri, Michigan and Colorado.” He said a few major companies, like Otis, dominate about 80 percent of the market globally, but independents like MEI do well with building owners who don’t want to be tied to the proprietary equipment of the major players. Lowenberg said that the company has had fairly good success in finding employees. “We’re fortunate to have Minnesota State. On the product management-engineering sales side, we have a steady stream of applicants. With welders and machinists, it continues to be tough, but SCC does a great job and we find a lot of their recent grads.” He said MEI continues to automate and streamline to stay competitive. “We continue to upgrade our
hired jobs. That’s going to be the exclusive way to do things,” he said. “We’ve been ahead of that game and we’ve moved lots of our folks into the community so we feel pretty confident, but you have to work within the marketplace and the economy. Currently it’s a good economy locally, so there’re jobs out there.” MRCI has a budget of $70 million a year with funding coming from the Medicaid waiver program and other federal programs. They also get state funding for clients working in the
community. “It’s a big operation. We’re in Fairmont, New Ulm, Mankato, Kasota, Shakopee, Chaska and Roesemount.” MV
paint line, lasers and things to make the product better and quicker.”
MRCI growing
MRCI has been a leader in the push to move disabled people to work sites in the community. “Our biggest push at MRCI, at all our locations, is just trying to find community jobs for the people we serve. Our industry has changed very much from serving in-house to supporting people in the community,” Benshoof said. While many clients have long worked in area businesses, MRCI also has had clients working at MRCI facilities. But with a federal and state push to put more people into the community and because of changes in the economy, less focus is on in-house jobs. “It’s hand work that we used to do — packaging, light assembly. A lot of that has been automated or shipped to Mexico or China.” In response, MRCI a few years ago started its own candypackaging business, first in St. Peter and now in the former Imperial Plastics plant at Kasota. “We have dozens of clients working their — warehouse staff, candy machine operators. Menards is our biggest customer. Close to 8 million bags a year go to Menards and their 300 stores.” Benshoof said that the push from federal agencies to get more clients into the community has created a big challenge. “It’s a difficult thing to do for those with more severe disabilities. There’s been a move to tie federal funding to employer-
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MN Valley Business • december 2016 • 11
Bob Wendt became a master taxidermist in the 1980s.
Art in nature Bob Wendt masters taxidermy By Heidi Sampson Photos by Pat Christman
B
ob Wendt, owner of Wendt’s Taxidermy, began his adventure into the world of capturing and recreating the intricacies of nature as a 12-year-old. While at Lincoln Jr. High, Wendt’s science teacher had a pair of each species of duck and some squirrels in the classroom. Bob and some of his friends asked if he would consider instructing them in the art of taxidermy. His advice? Go out and catch a red squirrel. By the following Monday, all of the boys had their squirrels and were set for their first lesson. His science teacher was also his industrial drafting teacher, which is kind of like design but includes woodworking as well, all of which were skills that Wendt • december 2016 • MN Valley Business
would carry forward into his life’s passion, Wendt’s Taxidermy. “I kept playing with taxidermy until ’85. At that time, I was doing squirrels, ducks, birds and deer heads. Around ’85, I went to school in Wisconsin to become a master taxidermist. When I realized that many of the taxidermists in this area, were 2-3 years out in projects, I began to pursue taxidermy as a full-time business.” Prior to 1985, Wendt hadn’t attempted to try his hand at fish. However, once he started doing fish, he knew what he liked best. Since that time, he’s honed his craft. Technically, the process of recreating fish for still life is not an easy one. Since the skin dries out some, once pulled from its natural habitat, it
Cover Spotlight
12
also tends to lose its vibrant color. This means that the entire body of the fish must be recreated with paint, which is no small task given Wendt needs to be able to see the depth, layer of colors, as well as the intricate detail that makes each fish unique. “Once the taxidermy process is complete, the fish should look like they are just coming out of the water. So, if you take care of a skin mount - keep it out of direct sunlight, away from a direct heat source, and keep it clean - it’ll last you.”
Small game to unique fish
While many taxidermy customers are trending away from traditional skin mounts in place of reproduction models, Wendt still prefers the skin mount due to the natural pigment of the fish, as he is able to draw out the many layers of unique color already existing in the fish. “People will find that all taxidermist have their own areas of special focus,” he said. “I specialize in doing birds, fish, foxes and custom mount pieces – so, a multiple animal scene – sometimes within a glass case enclosure. However, my all- time favorite is fish.” About 90 percent of the work he receives is actually shipped to him. A few years back, he made some solid connections with other taxidermists across the United States. As a result, many of them refer their fish work to Wendt. Most of his customers come from across the nation including Colorado, New Mexico, Pennsylvania, Ohio, Illinois, Oregon and Washington. “This labor is intensive and very intricate,” Wendt said. “When I am doing a fish, I kind of look at it like a wildlife print. So, the fish is your wild life print, the driftwood is your frame, and the weeds is your matting, all of which gives creation to still life. If one puts the fish into a scene, it looks alive.” What advice does Wendt have for those seeking a great taxidermist for a special project? Make sure to look at the photos the taxidermist posts. Also, don’t focus solely on cost, but on the quality of the taxidermist’s finished art. In the ’70’s, one could get a completed
A walleye and northern pike mount. duck for $28. The cost has changed Well, I’m not into size as much as I a lot since then, but so has the am in preserving the memory. If quality of it’s a child’s taxidermist first fish, it’s artwork. not about size. “People will find that all Cur rently It’s about Wendt is taxidermist have their own p r e s e r v i n g working on that memory areas of special focus,” he the West for years to Virginia state come. That is said. “I specialize in doing record for a what I seek to birds, fish, foxes and muskie, which do, preserve is a whopping the memory custom mount pieces – so, 54 inches of the hunt or a multiple animal scene – long. catch, because sometimes within a glass “I love what that is the I do,” Wendt trophy worth case enclosure. However, said. “When I keeping.” my all- time favorite is fish.” MV was a child, I loved being outdoors. I still do. Sometimes, people will say, ‘why mount something like that?’ MN Valley Business • december 2016 • 13
Marc Meier has brought the carhops, burgers and ice cream back to Blue Earth.
Carhops, burgers, ice cream Preserving America’s past at Cedar Inn By Heidi Sampson | Photos by Pat Christman
T
he drive-in concept was first popularized by a Texas chain of eateries, which first opened on a highway connecting Dallas and Fort Worth in 1921. At that time, customers would pull into the parking lot and be immediately greeted by carhops and combination waiter-busboys that served burgers and fries on trays clipped to the car’s window. As the drive-in evolved, patrons’ began to indulge their desire not to leave their cars, which quickly prompted an arms race among the carhops to take orders and shuttle food as quickly as possible - hence the roller-skating carhops featured at many drive-ins of the ‘50’s. As the years went by, the drive-in became the drive
thru. While for many parts of America, the love affair with the 50’s style drive-in disappeared, it wasn’t the case for Blue Earth. The Cedar Inn Drive-In, owned by Marc Meier and located on Highway 169, has been known by the same name since the 1950’s. The previous owner had owned and operated the Cedar Inn for 41 seasons starting with the spring of 1972 through the fall of 2012. After the fall of 2012, the owner placed the building for sale, opting for retirement while hoping the passion of the past wouldn’t disappear from Blue Earth’s landscape forever. Over the next four years, he kept the building but the Cedar Inn remained closed. “When the previous owner closed the Cedar Inn,”
Profile
14 • december 2016 • MN Valley Business
Meier said, “I took notice but I had another job that I was happy with. Eventually, I found myself looking for work and interviewing with the possibility of changing careers entirely. But, for every interview I went on, I said, ‘no, I think I need to stay in restaurants.’ ” Through Marc’s interview process for dif ferent positions, he started to look at what he’d been doing since he was 15 years old - for the past 30 years of his life - a little bit differently. One day his wife urged him to see if the Cedar Inn was still for sale. Taking her advice, he called and the more he talked to the previous owner, the more he fell in love with the idea of revitalizing a piece of Since the 1950s, the Cedar Inn has served the town of Blue Earth. Blue Earth’s history. “I did this because the community wanted it. While the Cedar Inn was closed, I always heard people saying, ‘I wish the Cedar Inn was open.’ Heck, I was one of the ones saying someone should open that place up. I just didn’t know it was going to me.”
Renovating to Carhops
The Cedar Inn Drive-In reopened in the middle of August. Prior to that it underwent seven months of renovating. Everything from rebuilding the canopies, to The Cedar Inn reopened in August after sitting empty for four years. painting, to new flooring, all new equipment, and new cement went into the laborThe Cedar Inn will continue to have carhops, trays intensive renovation. During that time, Marc and his with food for windows, and picnic tables with umbrellas family did some of the work with a good portion of the for those seeking to eat outside of their car. work hired out. “The advantage of outside seating or in your car Customers familiar with the previous Cedar Inn will seating, is that we see a lot of single guys and gals find some of the same names have been carried over come and meet here, or end up sitting together. For to the new menu. However, while some of the names the first two weeks we had a line of cars to the street may have been kept, they still received an upgrade in and we didn’t have enough picnic tables. But it was portion sizes, homemade burgers, and buns. They neat to watch people come here and find someone to also kept the many ice cream offerings and the sit with, to make new friends or revive old friendships. original root beer the Cedar Inn was known for. It’s about community and the community support has Seeking to keep their own business local, food been fantastic,” he said. ingredients from local Minnesota sources have also “From the city of Blue Earth, to the Faribault been a focus. County Development Corporation, my own family, to “I’ve always liked the pace of restaurants,” Meier our neighbors both at my own home and surrounding said. “I also love the customers and working with the the business, the business community – everyone has staff. We are wearing shorts and serving ice cream. been so supportive. For the last 15 years, I’ve been It’s sunny out and our friends are here. What more living here but working out of town, so it’s great to see could we ask for?” old friends, family and the loyalty of this community as The Cedar Inn will continue to be open seasonally they continue to preserve their history.” MV with a general operation dates of April 1 to October 31.
MN Valley Business • december 2016 • 15
■
Business and Industry Trends
Economy State collections lower
Minnesota’s net general fund receipts totaled $4.457 billion during the months of July through September 2016, or $97 million (2.1 percent) less than projected in a February forecast, according to the Minnesota Management and Budget office. Receipts from all major tax types were below the forecast for the quarter. In September, total net revenues were $24 million (1.2 percent) less than forecast, adding to negative variances for the months of July and August. Net general fund revenues for the fiscal year that ended June 30 in Minnesota are now $220 million more than forecast in February, producing a variance that is $10 million less than the $230 million originally reported in the July 2016 Revenue and Economic Update.
U.S. GDP should improve
The U.S. economy faces a high degree of uncertainty but economists believe the last three disappointing quarters will be followed by a small pickup in real GDP growth for the remainder of this year. The Bureau of Economic Analysis estimates that
real GDP grew at an annual rate of 1.4 percent in the second quarter of 2016, up from 0.8 percent growth in the first quarter. Inventory investment was an important drag in the second quarter, subtracting 1.2 percentage points from real GDP growth, but that impact is expected to subside through the end of the year. The recovery in commodity prices is stimulating an increase in capital spending in mining and petroleum industries and is expected to contribute to growth going forward. Real consumer spending remains the mainstay of the economy, while improved trends in housing and capital spending will also support growth.
Energy
Winter heat costs up
Average U.S. household expenditures for natural gas, heating oil, electricity, and propane will increase this winter (October 1 through March 31) compared with last winter, according to projects by the federal Energy Information Administration. Based on projections from the National Oceanic and Atmospheric Administration, forecast temperatures this winter, measured using heating degree days, are 3 percent warmer than the previous 10-year average but colder than last winter, which was
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16 • december 2016 • MN Valley Business
15 percent warmer than the 10-year average nationally. Forecast average household expenditures for heating oil, propane, and natural gas are 38 percent, 26 percent, and 22 percent higher than last winter, respectively, because of higher expected heating demand and higher fuel prices. However, expenditures for heating oil and propane this winter are forecast to be 32 percent and 18 percent lower, respectively, than in average of the five winters prior to last winter. Natural gas expenditures this winter are forecast to be similar to expenditures in the five winters prior to last year.
U.S. oil production falls
U.S. crude oil production averaged 9.4 million barrels per day in 2015, and it is forecast to average 8.7 million barrels per day in 2016 and 8.6 million barrels per day in 2017. Brent crude oil prices are forecast to average $43/ barrel in 2016 and $51 in 2017. West Texas Intermediate crude oil prices are forecast to average about $1 per barrel less than Brent in 2016 and in 2017.
Gas prices lower
Isolated refinery outages and a disruption to the Colonial Pipeline system contributed to an uptick in gas prices at the pump this fall. But with a return to normal refinery and pipeline operations, the switch to less-expensive winter gasoline blends, and the typical seasonal decline in gasoline consumption, gasoline prices are expected to fall to an average of $1.97 per gallon by January. Retail gasoline prices are forecast to average $2.12 in 2016 and $2.26 in 2017.
Natural gas output down
Natural gas production is expected to average 77.5 Bcf/d in 2016, a decrease of 1.6 percent from the 2015 level, which would be the first annual decline since 2005. Henry Hub spot prices are forecast to average $3.04/million British thermal units in the fourth quarter of 2016 and $3.07 in 2017.
Electricity outlook
Retail/Consumer Spending Vehicle Sales Mankato — Number of vehicles sold 1000 800 600 400 200 0
J
F
M
A
M
J
J
A
S
O
N
D
Source: Sales tax figures, City of Mankato
Sales tax collections Mankato (In thousands)
- 2015 - 2016 $539
600
Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.
$450
500 400 300 200 100 0
J
F
M
A
M
J
J
A
S
O
N
D
Source: Sales tax figures, City of Mankato
Lodging tax collections Mankato/North Mankato - 2015 - 2016
$54,771 $49,477
70000 52500 35000 17500
EIA expects the share of U.S. total utility-scale electricity generation from natural gas will average 35 percent this year, and the share from coal will average 30 percent. Last year, both fuels supplied about 33 percent of total U.S. electricity generation. In 2017, natural gas and coal are forecast to generate about 34 percent and 31 percent of electricity, respectively, as natural gas prices are forecast to increase.
175000
Renewables grow
140000
Nonhydropower renewables are forecast to generate 8 percent of electricity generation in 2016 and 9 percent in 2017. Generation shares of nuclear and hydropower are forecast to be relatively unchanged from 2016 to 2017.
- 2015 - 2016 1,110
870
1200
0
J
F
M
A
M
J
J
A
S
O
N
D
Source: City of Mankato
Mankato food and beverage tax - 2015 - 2016
$66,525 $65,500
105000 70000 35000 0
J
F
M
Source: City of Mankato
A
M
J
J
A
S
O
N
D
C. Sankey
MN Valley Business • december 2016 • 17
Construction/Real Estate Residential building permits Mankato
Residential building permits North Mankato
- 2015 - 2016 (in thousands)
- 2015 - 2016 (in thousands)
18000
4000
$16,215 $3,410
13500 9000
2000
4500
1000
0
J
F
M
A
M
J
J
A
S
O
$452 $542
3000
N
0
D
Source: City of Mankato
J
F
M
A
M
J
J
A
S
O
N
D
Source: City of North Mankato
Information based on Multiple Listing Service and may not reflect all sales
Existing home sales: Mankato region - 2015 - 2016
Median home sale price: Mankato region - 2015 - 2016 (in thousands)
$154,770 $164,000
250
300
175 193
240
200 150
180
100
120
50
60 0
J
F
M
A
M
J
J
A
S
O
N
D
Source: Realtors Association of Southern Minnesota
0
J
F
M
A
S
3.9%
4.0 3.5 M
J
J
D
A
S
O
N
11
20 10
3.5% A
N
15
30
M
O
Includes single family homes attached and detached, and town homes and condos
40
4.5
D
Source: Freddie Mac
0
J
F
M
A
M
J
J
A
S
O
N
D
Source: Cities of Mankato/North Mankato
Commercial building permits Mankato
Commercial building permits North Mankato
- 2015 - 2016 (in thousands)
- 2015 - 2016 (in thousands) $202 4000 $1,211
12000 10000
3000
$5,027
8000
$1,125
6000
2000
4000
1000
2000 0
J
- 2015 - 2016
5.0
F
J
Housing starts: Mankato/North Mankato
— 2015 — 2016 5.5
J
M
Source: Realtor Association of Southern Minnesota
Interest Rates: 30-year fixed-rate mortgage
3.0
A
J
F
M
A
M
J
J
A
S
O
N
Source: City of Mankato
18 • december 2016 • MN Valley Business
D
0
J
F
M
A
Source: City of North Mankato
M
J
J
A
S
O
N
D
C. Sankey
Gas Prices Gas prices-Mankato
— 2015 — 2016
5 4 $2.12
3 2
$1.97
1 0
J
F
M
A
M
J
J
A
S
O
Gas prices-Minnesota
N
D
— 2015 — 2016
5 4 $2.16
3 2
$2.08
1 0
J
F
M
A
M
J
J
A
S
O
N
D C. Sankey
Source: GasBuddy.com
Oct. 17
Nov. 1
Percent change
Archer Daniels Ameriprise
$41.85
Best Buy Crown Cork & Seal Consolidated Comm. Fastenal General Growth General Mills Hutchinson Technology Itron Johnson Outdoors 3M Target
$39.47 $55.38 $24.12 $38.27 $25.97 $61.77 $4.00 $54.63 $36.06 $170.21 $67.24 $42.72 $38.80 $1.50 $40.34
$46.75 $87.70 $38.67
+11.7% -9.0% -2.0%
$53.49 $23.25 $38.40 $24.60 $61.63 $4.00 $53.35 $35.64 $164.25 $67.78 $44.46 $38.96 $1.93 $40.86
-3.4% -3.6% +0.3% -5.3% -0.2% 0.0% -2.3% -1.2% -3.5% -0.8% -4.5%
Stocks of local interest
U.S. Bancorp Wells Financial Winland Xcel
$96.40
-0.4% +28.6% -1.3%
passion IT’S WHAT SEPARATES US FROM THE PACK Stakes are high in commercial real estate. We make it our business to know your business.
/COMMERCIAL TO THE CORE/ CBCFISHERGROUP.COM
C. Sankey
MN Valley Business • december 2016 • 19
■
Agricultural Outlook
By Kent Thiesse
Many ag issues need attention from new administration
T
he highly contentious 2016 Election is now history, and we will now move forward with a new administration and several new members of Congress, along with changes in committee leadership. There are many key issues that potentially could affect the agriculture industry, which still need to be addressed and resolved by Congress and the White House in the next few years. We will now await to see who will be appointed to serve as Secretary of Agriculture, or to head the Environmental Protection Agency. These appointments and others can have a big impact on how various agriculture and environmental policies are implemented and administered. The leadership of key congressional committees, such as the House and Senate agriculture committees, will also influence which major issues are addressed in the next two years. Following is some perspective on some of the key ag policy issues that could be under consideration during the next session of Congress, or by executive action: • Trade Agreements - There was not a lot of recognition of agriculture related issues in the recent presidential election. However, one topic that did get considerable discussion was past and future trade agreements. As recently as 2014, exports of agricultural products accounted for approximately one-third of the total value of U.S. ag production, including 39 percent of total ag cash receipts in Minnesota and 37 percent in Iowa. There are several pending trade agreements that need to be resolved, with the biggest of these is the Trans-Pacific Partnership trade agreement with many Asian Countries, including Japan. The antitrade sentiment that was exhibited during this past election cycle has some agriculture leaders a bit worried, due to the potential financial impact on all segments of the agriculture industry. • Health Care Costs - Rising health care costs are a major concern for farm families and across rural Minnesota. Some families have seen health insurance premiums rise 50-100 percent in the past couple of years, with individual farm families and sole small business owners now paying $30,000 to $40,000 per year or more for health care coverage. Mandated health insurance premium costs are a major issue in many rural areas, both from a health care and financial standpoint.
20 • december 2016 • MN Valley Business
• The Next Farm Bill --- The current Farm Bill expires after the 2018 crop year, so early development of the next Farm Bill is likely to start occurring in Congress and with agricultural leaders during the next year. There are many groups and organizations pushing for major policy changes in the next Farm Bill. As usual, the budget allocation toward the next Farm Bill will be a big part of that discussion, with some members of Congress already calling for budget cuts when the next Farm Bill is written. One of the key ag policy discussions will include whether or not the county revenue-based Ag Risk Coverage (ARC-CO) farm program option should be continued in the next Farm Bill. The ARC-CO program has been difficult for producers to understand, and there have been wide variations in payment levels from county-to-county for the same crop. Other key Farm Bill considerations will include expanding the Conservation Reserve Program (CRP) acreage, and restructuring the dairy Margin Protection Program (MPP). Food and nutrition programs and spending account for almost three-fourths of the Farm Bill budget, with some members of Congress proposing to separate this from the Farm Bill. • Crop Insurance - Another segment of the Farm Bill that is likely to come under considerable scrutiny is the Federal Crop Insurance program, with non-agriculture organizations pushing for changes to crop insurance even before the writing of the next Farm Bill. Most of the push is to lower the Federal budget for crop insurance expenditures by reducing the premium subsidy, which will increase the farm operators cost of crop insurance. There is also some push to put a cap on insurance payments to individual farmers, which could affect the whole dynamics of the crop insurance industry. Crop insurance continues to be one of the main risk management tools for crop producers of all sizes, and provides added security to ag lenders that are financing farm operations. • WOTUS and Other Environmental Issues Many members of Congress and farm operators have become increasingly concerned with the enhanced environmental regulations being administratively imposed by Environmental Protection agency (EPA). Many of the proposed regulations could potentially have a direct impact on the future of production agriculture in some areas of the U.S. The current item that is garnering
considerable attention is the proposal by EPA to expand the definitions and regulatory controls under the “Waters of the U.S.” (WOTUS), which some agriculture analysts feel could greatly restrict future crop and livestock production in portions of the U.S. Expect the new Congress to be quite active on EPA regulation oversight and trying to address some of these concerns. • Climate Change - The current administration has been involved in discussions and negotiation, both within the U.S. and with foreign countries, regarding climate change. Many of the proposed ideas involve implementing measures to reduce the man-induced impacts of a changing climate, several of which ultimately could have a major impact on the agriculture industry. There has been some disagreement among experts as to whether the economic implications for agriculture would be more positive or negative. Congress has been reluctant to take much action relative to climate change, due to uncertainty regarding the scientific evidence, as well as the uncertainty regarding economic implications. However, the next administration may decide to move forward on some initiatives, with or without congressional approval. • Renewable Energy - The next administration and Congress will need to decide what direction the U.S. takes regarding the mandated use of renewable fuels through the Renewable Fuels Standards (RFS) and other incentives for renewable fuels, such as tax credits, etc. Whil there is generally considerable support for development of alternative energy sources, Congress and many organizations have become quite divided on the RFS and other mandated energy programs. Ethanol production, which is covered by the RFS, has a major economic impact for farm operators and on the overall rural economy. • Immigration Reform - The immigration issue continues to be a major issue in many portions of the U.S., and has a lot of political ramifications. Many industries, including the agriculture industry, could be significantly impacted by any potential immigration reform legislation. Both production agriculture and the ag processing industry are heavily reliant on an immigrant workforce, so major restrictions in getting needed workers in some areas of the U.S. could greatly affect the rural economy in some locations, including in southern and western Minnesota. If Congress does not act on immigration reform, expect the Administration to issue some executive orders relative to the issue. • Farm Financial Stress - Low profitability on both crop and livestock production in the past couple of years has increased financial stress for farm families in many areas of the U.S., including southern Minnesota. Many ag experts expect this trend to continue into 2017 and 2018. Some ag leaders are questioning if current farm risk management tools or Federal “safety net” programs are adequate to protect farm operators from financial collapse during these downturn periods. Expect this to be a discussion by the administration and Congress in the next couple of years. Kent Thiesse is farm management analyst and vice president, MinnStar Bank, Lake Crystal. 507- 381-7960; kent.thiesse@minnstarbank.com
Agriculture/ Agribusiness Corn prices — southern Minnesota
(dollars per bushel)
— 2015 — 2016
8
$3.36
6 4 2
$3.04
0
J
F
M
A
M
J
J
A
S
O
N
D
Source: USDA
Soybean prices — southern Minnesota
(dollars per bushel)
— 2015 — 2016
20 16
$9.19
12 8
$8.18
4 0
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
— 2015 — 2016
100 85
$52.15
70 55 40 25
$45.10 J
F
M
A
M
J
J
A
S
O
N
D
Source: USDA
Milk prices
Minimum prices, class 1 milk Dollars per hundredweight
— 2015 — 2016 25 22
$18.36
19 16
$18.28
13 10
J
F
M
A
M
J
J
A
S
O
N
D
Source: USDA. Based on federal milk orders. Corn and soybean prices are for rail delivery points in Southern Minnesota. Milk prices are for Upper Midwest points.
C. Sankey
MN Valley Business • december 2016 • 21
Minnesota Business Updates
■
■ Best Buy pushes VR
■ ADM profits jump
Are virtual reality headsets the next big thing for consumer electronics or are they the next big thing for tech company marketers? The devices get a lot of ink and pixels, but they are not exactly taking the market by storm. Best Buy is promoting a variety of VR devices, from those that require a smartphone and cost as little as $10 to standalone systems with price tags of up to $800. Estimates from market research firm Strategy Analytics cited at Fortune expect sales of VR devices to total around $556 million in the holiday shopping period, with about 11.4 million American adults coughing up the cash for one of the devices. The average spend is less than $50, indicating that the lower priced models that require a smartphone are expected to dominate sales. Market penetration by the end of this year is forecast at 6 percent. That may sound low, but Strategy Analytics points out that the iPhone held about the same penetration rate two years after its introduction. The least expensive VR device is Insignia’s Virtual Reality, a cardboard device, available at Best Buy for $9.99. At a price closer to the average is the Hyper HYPERVR Z4 headset for $49.99.
Profit at Archer Daniels Midland Co. jumped 35 percent as record U.S. crop yields sent exports surging throughout the third quarter. Net income at the agricultural company breezed past Wall Street expectations and its shares rose almost 8 percent to hit a new high for the year. The Chicago-based company sells and transports crops, makes animal feed, produces ethanol for fuel and makes sweeteners and other ingredients for food. In addition to an increase in corn and soybean exports, the company said it had strong results in North America for its corn sweeteners and starches. “With improving market conditions and a large U.S. harvest,” ADM Chairman and CEO Juan Luciano said in a statement, “we feel good about the remainder of the year and a stronger 2017.”
■ Johnson wins case Johnson Outdoors said that the full International Trade Commission has affirmed the initial determination by the administrative law judge that Garmin International Inc. violated the Tariff Act of 1930 by importing and selling SideVü sonars, which infringe a Johnson Outdoors’ side scan sonar patent used in certain Humminbird fishfinders. “We are recognized as an innovation leader...a
Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major September Industry ‘15 ‘16 Construction Manufacturing Retail Services Total*
82 332 28 123 565
Local non-farm jobs Percent change ‘14-’15
201 129 31 108 469
+14.5% -61.0% +10.7% -12.2% -17.0%
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.
Minnesota initial unemployment claims Major Industry Construction Manufacturing Retail Services Total*
September ‘15 ‘16 2,201 2,959 824 3,818 9,759
3,143 1,928 803 3,798 9,334
- 2015 - 2016
Nine-county Mankato region
126,120 124,603
133000 122000 111000 100000
J
F
M
A
M
J
J
A
S
Minnesota Local non-farm jobs
Percent change ‘14-’15 +42.8% -34.8% +2.5% -0.5% -4.4%
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.
22 • december 2016 • MN Valley Business
(in thousands)
O
N
D
- 2015 - 2016 2,913 2,901
3000 2000 1000 0
J
F
M
A
M
J
J
A
S
O
N
D
Company that respects the intellectual property of others and protects its own. Obviously, we’re very pleased by this final determination by the ITC,” said CEO Helen Johnson-Leipold. A cease and desist order prohibits Garmin from selling or distributing any infringing product or component.
■ Spicing up Target Target Corporation and Victoria Beckham have teamed up to launch an apparel line. The Spice Girl has become a fashion icon over the last two decades along with husband David Beckham. Now, she is releasing a line of about 200 items with one of the nation’s largest retailers. Beckham said her decision to be partners with Target comes from the fact that the company is one of the most inclusive companies in the world capable of reaching a wide audience. Soft pastels and bright colors are among the designs that will be included with the line, which has items ranging from $6 to $70. Part of the reason why Target may be looking to add a new line to its collection may be related to the stiff competition offered by other retailers in the clothing industry, including Wal-Mart and Amazon.
■ State tech climbs Minnesota has crept back into the top 10 of a national ranking of states by tech and science business prowess
after a 12-year absence, according to the Star Tribune. The Milken Institute ranked Minnesota seventh in its State Technology and Science Index 2016, released Tuesday, thanks to the state’s strong tech workforce and strong investment in human capital. Minnesota last found itself in the top 10 in 2004. The study has been conducted every two years since 2002. The index measures 107 indicators. Minnesota’s strongest were the average SAT scores of high school students, the percentage of graduate students in science and engineering programs and the number of computer and information scientists per 100,000 civilian workers.
■ GGP revenues weaker General Growth Properties, which owns River Hills Mall in Mankato, reported weaker-than-expected revenues for third-quarter 2016. Its total revenues of $554.5 million not only fell short of the consensus estimate of $572.9 million, but also declined from the year-ago figure of around $585.3 million. Nevertheless, the company’s adjusted funds from operations per share of 35 cents came in line with the consensus estimate but narrowly missed the prior-year quarter figure of 36 cents. Same store net operating income increased 3.8 percent from the prior-year period, while same store leased percentage was 96.7 percent at the end of the quarter. Initial rental rates for signed leases increased 12 percent. General Growth’s development and redevelopment activities totaled around $1 billion.
Employment/Unemployment Local number of unemployed
- 2015 - 2016
Nine-county Mankato region
(includes all of Blue Earth and Nicollet Counties)
8000
4,368 4,656
6000
August Unemployment rate Number of non-farm jobs Number of unemployed
4000 2000 0
Mankato/North Mankato Metropolitan statistical area
J
F
M
A
M
J
J
A
S
O
N
2015
2016
2.7% 56,581 1,561
3.2% 55,639 1,812
D
Unemployment rates Counties, state, nation Minnesota number of unemployed
- 2015 - 2016
200000
104,250 113,521
150000 100000 50000 0
J
F
M
A
M
J
J
A
S
O
N
D
County/area Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan Minneapolis/St. Paul Minnesota U.S.
August 2015 2.8% 3.3% 3.6% 3.6% 3.7% 2.5% 3.4% 3.6% 3.9% 3.2% 3.3% 5.2%
August 2016 3.3% 3.9% 4.0% 3.7% 3.9% 2.9% 3.7% 4.0% 5.1% 3.6% 3.8% 5.0%
Source: Minnesota Department of Employment and Economic Development C. Sankey
MN Valley Business • december 2016 • 23
GMG’S ECONOMIC BAROMETER RESULTS By: John Considine III, Director of Regional Business Intelligence
T
he third quarter, July to October, was a little soft economically for Greater Mankato businesses especially in terms of profit which was down for 43 percent of those reporting, according to a survey conducted by Greater Mankato Growth. Businesses are forecasting a slightly better profit picture in the fourth quarter. For the three-month period compared to the same time last year, 65 percent said revenue was up or the same and employment level was up or the same for 71.4 percent. Capital expenditures were up or the same for 80.9 percent and new customer acquisition level was up or the same for 83.3 percent.
Greater Mankato Growth
The fourth quarter has typically been strong for the Greater Mankato marketplace. GMG’s Regional Business Intelligence Director. “The projections provided by area businesses align with what we have seen in terms of job growth on an annual basis.” Fourth quarter revenue compared to the same time period in 2015 is forecast to be up or stable for 68.4 percent of respondents and profit up or the same for 60.5 percent. In addition, 77.6 percent report that employment levels should be up or the same while 82.9 percent forecast capital expenditures will be up or the same. New customer acquisition should be up or the same for 82.9 percent. The high rate of capital investment should translate into increased revenue and profit going forward. Manufacturing had the highest rate of forecasted capital investment. That doesn’t always mean jobs, but it should result in new efficiencies that will grow our economy in other ways. Besides the financial landscape, the top business concern - with nearly 79 percent saying it was most important or very important - was the national political scene
24 • december 2016 • MN Valley Business
which was ranked more concerning than the workforce shortage which came in with 74 percent, the same level of concern for labor costs. The state political scene was also a big concern for 72 percent of area businesses while state permitting and regulation was of top concern to 54 percent; operational costs (without labor) was a concern to 50 percent. THE BREAKDOWN BY SECTOR: • Workforce availability (74.7%) à Transportation and Warehousing, Manufacturing and the Service had the highest rate of concern • Labor costs (74.7%) à Construction, Education and Accommodation/Food Service had the highest rate of concern • State political climate (72%) à Agriculture, Construction, Real Estate and Education had the highest rate of concern • National political climate (78.7%) à Construction, Finance, Education and Service had the highest rate of concern
On the question of the distance from which they attract present employees, 87.9 percent said they are drawing employees from ten miles or more (with 29.3 percent putting from over 40 miles). In terms of future talent attraction, 78.7 percent said they would pull from ten miles or more while 12 percent saying they didn’t know how far they would be pulling. The GMG Economic Barometer was sent electronically to nearly 2,000 area business leaders from October 14-31 with 87 reporting. The survey included GMG members and non-members.
NEW CON
Greater Mankato Business Awards & Hall of Fame was held Tuesday, November 15 at Verizon Wireless Center. This is a time when Greater Mankato Growth, Visit Mankato and City Center Partnership honor outstanding businesses, professionals and organizations within the Greater Mankato community.
GREATER MANKATO GROWTH AWARDS HALL OF FAME DISTINGUISHED BUSINESS AWARD ENTREPRENEURIAL BUSINESS AWARD BRIAN FAZIO BUSINESS EDUCATION PARTNERSHIP AWARD HAP HALLIGAN LEADERSHIP AWARD YOUNG PROFESSIONAL OF THE YEAR
Dotson Iron Castings Jenn Melby-Kelly, The Coffee Hag Heather Fisher, Salvage Sisters Minnesota State University, Mankato Department of Dental Hygiene & Open Door Health Center Scott Wojcik Brad Boettcher
VISIT MANKATO AWARDS BRING IT HOME AWARD HOSPITALITY AWARD
The Dam Store Mankato Symphony Orchestra
CITY CENTER PARTNERSHIP AWARDS NEW CONSTRUCTION OVER $5,000,000 NEW CONSTRUCTION OVER $5,000,000, MUNICIPAL RENOVATION $1,000,000 - $3,000,000 RENOVATION $500,000 - $1,000,000
Ridley Tower, Tailwind Group Verizon Wireless Center Expansion/Performing Arts Center Bethlehem Lutheran Church Mankato Area Foundation Shared Spaces A Center of Non Profit Collaboration WYSIWYG Juice Co.
PRESERVATION STEWARDSHIP
Carnegie Art Center
DOWNTOWN DETAIL CITYART “PEOPLE’S CHOICE” AWARD
Tractor Bull Sculpture Stand For The Flag - Lee Leuning & Sherri Treeby
Thank you to our sponsors: Presenting Sponsor:
Video Sponsor:
Dinner Sponsor:
To view photos of this event visit: greatermankato.com/hall-fame
MN Valley Business • december 2016 • 25
Greater Mankato Growth
RENOVATION $500,000
Growth in Greater Mankato NEW OWNERS
NEW BUSINESS
NEW LOCATION
American Bar 503 Belgrade Avenue North Mankato
K9 TLC 111 Butterworth Street Mankato
RIBBON CUTTING
Spinners Bar 301 Belgrade Avenue North Mankato MAJOR INVESTMENT
M2 Lofts 1050 Marsh Street Mankato GRAND OPENING
Greater Mankato Growth
Wis-Pak of Mankato 1707 Tower Boulevard North Mankato
U.S. Highway 169 Mankato to St. Peter
Riddle’s Jewelry 1850 Adams Street 0141 Mankato RIBBON CUTTING
Star Ginger & Erbert and Gerbert’s Minnesota State University, Mankato Centennial Student Union
Cavalier Calls on the Newest Greater Mankato Growth Members
Cavaliers
Healthy by Nature 101 West Robinson Street Lake Crystal healthybynaturellc.com
RIBBON CUTTING
JM Promotions 360 Pierce Avenue, Suite 210 North Mankato jmpromo.net
26 • december 2016 • MN Valley Business
Quality Asphalt Services, LLC 51685 Eagle Lane Lake Crystal asphaltserviceslakecrystal.com
SAVE THE DATE greater mankato AT THE CAPITOL WEDNESDAY, FEBRUARY 1, 2017 Join more than 150 business and community leaders from the region as they celebrate and share why Greater Mankato is an economy@work! To register and for more information visit greatermankato.com/capitol.
Watch for the 2017 schedule midDecember!
7:30 - 9:00 am
5:00 - 7:00 pm December 6
Eide Bailly
October Business After Hours hosted by Toppers & Trailers Plus
School Sisters of Notre Dame Central Pacific Province
2016 Business Before Hours Sponsored by: October Business Before Hours hosted by Emergent Networks
Business After and Business Before Hours gives representatives from GMG member businesses at the Engaged Level or higher an opportunity to get together with one another to exchange ideas and learn about each other’s businesses. For more information on these and other member events, visit greatermankato.com/events.
MN Valley Business • december 2016 • 27
Greater Mankato Growth
2016 Business After Hours Sponsored by:
December 21
2016 Reflections,2017 Anticipations By: Katie Adelman, Marketing and Communications Coordinator
T
he weather may be getting frightful, but the year for Greater Mankato was quite delightful.
Sports: July and August saw the 51st annual Minnesota Vikings Training Camp, which generates about $5 million in economic impact. Considering Training Camp was shorter this year, the approximately 62,000 visitors to Greater Mankato is an exceptional number! The North American Fastpitch Association brought its men’s fastpitch world series to North Mankato in August. With it came an estimated $1.7 million in economic impact and 2,800 people from as far as Pennsylvania and California. In October, Mankato hosted the seventh annual Mankato Marathon, which created almost $1.6 million in economic impact and attracted more than 4,500 runners and many more spectators. A new addition to the Mankato Marathon—My Bold Walk—allowed people who may not be able to participate in races because of physical inactivity, chronic disease or disability to get involved in a supported event.
Greater Mankato Growth
Conventions: The City Center Campus booked the largest convention to date: 1,000 people and an estimated economic impact of $258,000 in 2018. Success continued into September with the grand opening of the Verizon Wireless Center Expansion. Grand opening attendees included 2,000 people. The expansion features more than 30,000 square feet of versatile event space, with state-of-the-art technology to attract more conventions, tradeshows and performing arts to the area. Also in September, Visit Mankato and the City Center Partnership launched the Show Your Badge Program, which offers special promotions from City Center businesses to people attending conventions in Mankato. To learn more about or to get involved in the Show Your Badge Program, visit meetinmankato.com. Leisure: In April, a new sculpture found its permanent home on the 500 block of Front Street. Tractor Bull is a bronze and aluminum sculpture and is the first piece to be commissioned by five businesses through the CityArt program. The Children’s Museum of Southern Minnesota expanded its
Vikings Training Camp
Verizon Wireless Center
28 • december 2016 • MN Valley Business
exhibits in April to include a 12,000-square foot seasonal space called the Farmyard. Children of all ages (that means parents, too!) can get a hands-in-dirt experience by learning about planting gardens and growing produce. Children’s Museum visitors can get up close to farm animals like pigs, sheep, goats and even alpacas. Drive down Riverfront Drive and it will be hard to miss the new Mni Mural created in August. Stretching 500 feet from the old train Depot to Reconciliation Park, the mural depicts a river scene with native Minnesota River fish; look close and the nation’s mammal, the bison, can also be spotted. Kiwanis Holiday Lights is in its fifth season of amazing visitors with the festive lights that brighten Sibley Park. With the renovation of The Giving Barn, more musical performances will be featured on weekends. This year in addition to 200,000 more lights and displays, there will be a lighted train, a carousel and one featuring fire. This brings the total to 1.5 million lights! With an achievement-packed year like 2016, what can be expected in 2017? For one, more than 500 senior-age athletes will be coming to compete in everything from track & field and basketball to swimming and pickleball in the Minnesota Senior Games in May. The estimated economic impact of the 2017 Minnesota Senior Games is $500,000. The Amateur Softball Association’s 14B Northern Nationals will be coming in August 2017. This girls fast pitch softball tournament is anticipated to have 32 teams with 400 female athletes from across the country and is estimated to have an economic impact of $900,000. In 2017, 49 meeting and conventions with an estimated 16,000 attendees are confirmed in the City Center Campus. From all of us at Visit Mankato, thank you for the outstanding support from Greater Mankato stakeholders, sponsors and residents in 2016. Visit Mankato staff is anticipating 2017 to be an even better year!
Mni Mural
Kiwanis Holiday Lights
H
undreds of hockey fans came out to Civic Center Plaza on October 8 for an evening of live music, games, refreshments and family-friendly fun. Presented by Snell Motors and sponsored by Rosengren, Kohlmeyer and Hagen Law Office, Chtd and Hot 96.7, Hockey Night is an annual celebration of Maverick hockey.
The crowd enjoyed music by DW3, a mechanical bull, bouncy house, face painting and more. The evening was capped off by a 4-0 Mavericks win over Michigan Tech. !OLE’! To find out how you can support Hockey Night in 2017, contact info@citycentermankato.com or 507.388.1062.
Thank you to our sponsors:
Greater Mankato Growth
Crowd enjoying the nice weather and entertainment in the City Center Plaza on Hockey Night.
MN Valley Business • december 2016 • 29
» C OME JUDGE
for Yourself.
GOLFERS FROM AROUND THE WORLD COME TO CHALLENGE THE JUDGE and the two other golf courses in Prattville at RTJ Capitol Hill. Bring your clubs and come take on Judge hole number 1, voted the favorite hole on the Trail. Complete your day in luxury at the Marriott and enjoy dining, firepits and guest rooms overlooking the Senator golf course. With the Marriott’s 20,000 square feet of meeting space, 96 guest rooms and luxurious Presidential Cottage combined with three world-class golf courses, business and pleasure can definitely interact in Prattville.
THE ROBERT TRENT JONES GOLF TRAIL AT CAPITOL HILL is home of the Yokohama Tire LPGA Classic on the Senator Course September 18 to 24, 2014. The Marriott Prattville is part of the Resort Collection on Alabama’s Robert Trent Jones Golf Trail. Visit www.rtjgolf.com or call 800.949.4444 to learn more.