spring 2013
business to business connection
HO ’ S H E LW E NA DOI NG ? PAGE 37
awards season dewey bruce: business person of the year smitty’s fireplace shop: smalL business of the year murdoch’s ranch & home supply: business of the year
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b2b contents S p r i n g 2 0 1 3 / Vo l . 2 / N o. 1
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the key to a more balanced economy
06–17
2012 awards: business of the year, small business of the year, business person of the year, volunteer of the year, hospitality hero, plus 2013 artist of the year
helena regional airport update
RIBBON CUTTINGS and GROUNDBREAKINGs
influence consumer value and service
ALSO IN THIS ISSUE 04 FROM THE EDITOR 20 your chamber: retain vs. join 27 use your chamber benefits 42 HR RESOURCES 44 B2B CONVERSATION
learn more about boeing helena
BUSINESS BAROMETER and climate report 3
a publication of the
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©2013 All rights reserved. The information contained within this document may not be reproduced in whole or in part without the express written permission of the Helena Area Chamber of Commerce. Every effort was made to ensure accuracy of information in this publication. However, due to the passage of time and the anomalies inherent in the publishing process, we cannot be responsible for errors or incorrect information.
welcome Once again, we are pleased to present our Chamber members with our annual Business Award Winners edition of the Business2Business. With over 800 business members, selecting the winners becomes quite a challenge for our staff and board. Helena is blessed with so many businesses and organizations that do great things for their customers and our community on a daily basis. When choosing our recipients, the Chamber not only looks at what makes each organization successful in business, but what they do to make Helena a better place to work and play. You not only want to do business with these organizations, you also want them to be your neighbor. You will instantly recognize many, if not all, of our award winners for 2012, as they represent businesses that have long-standing roots in Helena. As you read more about each award winner in this issue, we hope you agree that each individual and business is well worthy of the recognition. We are proud to call each a Helena Area Chamber of Commerce member.
Also in this issue, you will get a chance to learn more about artist Kathryn Fehlig, the Chamber’s 2013 Artist of the Year. The Chamber will soon be delivering the 2013 artist print to our members. You’ll get a look at one of the newer and more intriguing businesses in town, Boeing Helena. Find out what’s happening at the Helena Regional Airport with Director Ron Mercer. Boost your marketing prowess with Mr. Business Builder Frank Rowan. And as always, B2B offers up great information like personnel tips, business statistics, and general trivia about the community we call home. The Chamber is always looking for your input on how we are doing. You can always drop me an email at bhouser@helenachamber.com, or give us a call at 442-4120. If you have the time, stop by the office and visit – the coffee is on us!
barry houser: b2b editor & chamber marketing/communications director
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Here’s to the leaders, the visionaries, the inspirers. To those who strengthen our community and work for its success. Congratulations and thank you.
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“
We believe in the Golden Rule. Marc Wolfram, Store Manager
M
urdoch’s has served the Helena community since 1998, first as Big R, and since 2004 as Murdoch’s. It is a company that is customer focused, striving for excellence in all aspects of their company, as their Mission states: “We will be the best. We will earn the admiration, respect and smiles of our customers, team, and supplier partners as the leader in our industry.” For this and many other reasons, the Helena Chamber Board of Directors selected Murdoch’s Ranch and Home Supply as the 2012 Business of the Year. For Marc Wolfram, store manager of the Helena Murdoch’s, customer service is the key to Murdoch’s success: “We believe in the Golden Rule, treat others well and they will reciprocate.” The Golden Rule is so important to the Murdoch’s business model that the company incorporated it into their core values. “G.E.T ... means three things: we honor the Golden rule; we expect Excellence; we Trust one another,” explained Wolfram. This principle is exemplified in Murdoch’s customer service model, their community involvement philosophy, and how employees are treated like family. “Our employees make our business what it is … you treat the employee right, they treat the customer right,” he said.
BUSINESS OF THE YEAR Murdoch’s Ranch & Home Supply Wolfram is most proud of Murdoch’s involvement in and support of 4-H events, both locally and regionally. “These kids are the future economy, our future customers and employees; it makes sense to help young people,” he said. In addition to supporting 4-H, Murdoch’s supports Special Olympics on both the local and national levels. The Lewis and Clark County Humane Society is also a focus of Murdoch’s community involvement efforts. From assistance with pet food and supplies to special promotions like Santa Paws, Murdoch’s supports our four-legged community members. “We are an ag-oriented business and try to support that aspect of our community,” explained Wolfram. “We offer a good mix of ag and residential products and hit a niche not previously served in the Helena area.” Arguably, that is what has made Murdoch’s Ranch and Home Supply such a success.
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Our customers return time and time again ... because we take care of them. shawn smith, co-owner
”
SMALL BUSINESS OF THE YEAR
Smitty’s fireplace shop
When L.E. “Smitty” and Juanita Smith arrived in Helena, they fell in love with the community. A mason, Smitty, who was originally from Tennessee, would move his young family from job to job, until they claimed Helena as their home. Needing more than seasonal work, Smitty opened a fireplace shop in 1970, and eventually expanded to include masonry supplies. What began as a way to earn extra income without having to move his family around, turned into a thriving family owned and operated business that has spanned three generations and gives generously to the community.
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“W
e are very proud of our multi-generational business,” explains Shawn Smith, who along with his sister, Robin, and her husband, Dean Van Hemelryck, represent the third generation of Smitty’s owners. “Our parents, Leland and Sharon, officially retired a few years ago, although they are still owners in the business, and the fourth generation is coming up quickly, already working summers and part-time in the store,” he said. In addition to Shawn, Robin, and Dean, Smitty’s employs two other full-time employees, Johno McMaster and Scott Turner. Shawn’s son and daughter, Bryson and Brittany, and Robin’s daughter Kylee work seasonally in the store and will someday take over the family business. “We’ve been lucky to build on the efforts made by our grandparents and parents. They provided Robin and I with a solid business to take over, and we hope to do the same for our children,” explained Shawn. When asked what has led to the success of Smitty’s Fireplace Shop, Shawn immediately responded, “Our focus on customer service and ability to adapt to changes in the industry.” Customer service is the most important component of Smitty’s business model. “Our customers return time and time again, project after project, because we take care of them … we provide a quality product and exceptional service at a reasonable price,” he said. Shawn and Robin, like their parents and grandparents before them, believe in giving back to their community. From silent auctions and benefits to serving on boards, each has given generously to their community. Shawn said, “I’ve served on the Saints Athletic Association Board, served as chair of the Helena Exchange Club Board; Robin has served as chair of, and long time member of, the local American Business Women’s Board; and we’ve both coached
numerous youth sports teams.” “While Helena has experienced a growth in population and some new businesses, Helena still retains its small, hometown community fee. That’s what I love about Helena,” explained Shawn. “We’re thankful for this great community; it’s because of the community that Smitty’s has carried on for three generations and will keep us going through a fourth generation.” What advice would Shawn give to someone wanting to open a small business? “Be willing to put in the time. Running any business, especially a new business takes time and commitment to your product and your customer,” he said
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If you want to succeed, you need to get involved dewey bruce, cherry creek radio
”
2012 George D. Anderson
BUSINESS PERSON OF THE YEAR DEWEY BRUCE
GENERAL MANAGER, CHERRY CREEK RADIO Dewey Bruce believes in the value of strong community involvement; in his opinion: “What’s good for the community is good for business.” Community is what brought Dewey back to Helena 20 years ago. “I’d lived in Helena for five years and then left, but I returned because I love Helena and it’s a great community. It’s a community that cares!” he said. continued on next page
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fter 33 years in sales, 25 of those in Helena, Dewey has seen firsthand how the strength of a community impacts the business community. “Helena is a community that helps one another; we see that through the various benefits for individuals to our support of local business,” he said. For Dewey, community involvement is more than just a philosophy, it’s an action plan. He has served on several notfor-profit boards, including Helena Food Share; he’s served as the chair of the Montana Broadcasters Association; he currently serves as the Community Relations Committee Chair for St. Peter’s Hospital, in addition to being a member of the St. Peter’s Board of Directors. Dewey served a six-year term on the Helena Chamber Board of Directors, serving as Chair of the Board in 2009. “If you want to succeed, you need to get involved. It’s how you find out information about your community, and it helps business,” explained Dewey. On many fall Saturdays, Dewey can be found in the tailgating area at Carroll College football games cooking hotdogs by the hundreds. In fact, they have become affectionately known as “Dewey Dogs.”
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Dewey is a native of Glasgow, Montana. He graduated from Fresno State University with a degree in Business Administration. After spending time in the radio industry as an Account Executive at KGVO in Missoula and as General Manager of KCAP/KZMT radio here in Helena, Dewey eventually found himself as Vice President of Affiliate Relations with Emerald Entertainment Group in Nashville, Tennessee. But his short time in Helena helped create a bond with the community that enticed him back home. He has been with Cherry Creek Radio ever since. When asked what the key to his success is, Dewey immediately responded, “My wonderful wife who puts up with me, my two wonderful step children and their spouses, and my three fabulous grandchildren!”
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2012 DON FREDRIKSON
VOLUNTEER OF THE YEAR
HOWARD SKJERVEM NORTHWESTERN ENERGY
T
his award is named after Don Fredrikson, who was an amazing volunteer and advocate for the Chamber and also for the Helena Symphony. His efforts were admirable, and he set an example for being a good community member! Each year, the Chamber takes a look at the many volunteers needed and working hard for the Chamber in our many committees, events, projects, and programs. It takes about 6,000 hours per year of volunteer time for the Chamber’s success. Volunteers are our greatest assets! One of the Chamber’s core missions is our business advocacy – always evident in legislative years, but something we work on every week of every year. Our work has seen dramatic increases in our presence at the legislature, city hall, and more. It takes strong leadership, knowledge, business savvy, and good decision-making to lead these efforts. Our volunteer of the year has led the Chamber through three legislative sessions, once as the Board Chairman and twice as our Government Affairs Vice Chairman. He has given hundreds of hours of volunteer time to the Chamber, and we are lucky to still have him on board. Howard Skjervem of NorthWestern Energy is the Helena Area Chamber of Commerce 2012 Don Fredrikson Volunteer of the Year! Howard is the Director of Community Relations for NorthWestern Energy.
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2012 HOSPITALITY HERO
SANDY SHULL BIRDS & BEASLEYS 16
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his award is given to a Helena area businessperson for their tourism/hospitality efforts for our community, and this year’s winner has all the traits we look for and admire. Sandy Shull, owner of Birds & Beasleys, has put in a great deal of time and worked for a lot of downtown efforts, Helena efforts, and even regional efforts. Sandy Shull is a visionary person who took a leap of faith – she moved, expanded and changed Birds and Beasleys to meet the needs and accommodate customers, especially the tourists coming to our city. She partnered with the Last Chance Tour Train to offer a free gift for everyone riding the train if they visited her store. And, most amazingly, every single time the tour train comes by the store on the walking mall, she and her entire staff drop everything and race out the front door to wave and welcome the riders on the train. What a great impression she and her staff give to thousands of visitors to Helena and the downtown from these efforts. Sandy is definitely a Hospitality Hero!
What drew you to the arts, and in particular, the medium of pastels?
2013
ARTIST OF THE YEAR
KATHRYN FEHLIG
Kathryn: I’ve always been interested in drawing and painting, and was an acknowledged talent in my young years. In college, I was an art major in a liberal arts program and worked with oil painting and printmaking in the era of Abstract Expressionism. Always a colorist, in the 70s and 80s I discovered pastels were a medium I really enjoyed – they combined exciting color and fit my work habits (no set-up time or clean-up time required while working on a piece). My desire to be a landscape artist working in pastel wasn’t fulfilled until I semi-retired from my graphic arts jobs in 2003. Tell us a little more about the inspiration for the pastel you created for the Helena Chamber. Kathryn: Spring Meadow Lake was the perfect choice for the pastel. I’ve done many paintings of the area and have an enormous amount of reference material. It also has an important family history for me. My grandfather, George Jacoby, dug his gravel pit there in 1929 and created the lake. I’m so grateful that this important part of my childhood is still available to me. The painting “Critter Trails – Spring Meadow Lake” is a winter scene that gave me some brilliant color choices with the red willows and the blues/purples of the snow and ice. Snow scenes are my favorite subject. Besides creating beautiful works of art, what other passions OR hobbies do you pursue? Kathryn: I love creating and nurturing, and my hobbies are numerous. I’m a gardener, a cook, a seamstress, a stained-glass artist, and a bookworm. When I was younger, I was an avid horseman and still love being outside riding a bicycle. I have owned (or rather been owned by) many miniature dachshunds.
The Helena Chamber is pleased to name Kathryn Fehlig as its 2013 Artist of the Year. This year’s Chamber member print is a reproduction of a stunning pastel Kathryn created, entitled “Critter Trails – Spring Meadow Lake.” B2B took a moment to learn a little bit more about this local artist who is widely known for capturing Helena area landscapes in the medium of pastels.
You were recently named a “Treasured Montana Artist” by Montana Secretary of State Linda McCulloch. Tell us a little more about this honor and what it means to you. Kathryn: Linda McCulloch started this program during her first term. About every three months, an artist is chosen to display in her office and be a “Treasured Montana Artist.” She chose me during a prime time when the 2013 Legislature is in session. This gives my work statewide exposure, and I am very grateful and honored. Montana is the perfect marriage of artist and environment. What luck, living in Montana. I’ll never run out of the things to paint. The pieces I’ve chosen to share are a representation of the diversity and splendor of the place we proudly call home. 17
a skill workfor T
he greater Helena area is often defined as a “government town”. According to the University of Montana’s Bureau of Business and Economic Research (BBER), government and quasi-government comprise 70% of our economy. A more balanced economy, however, is needed to diversify our economy, create more high quality jobs, and render the economy more recession resilient. At MBAC, we have identified five private sector industries that are best suited to create high quality jobs over the long–term: (We call these our Targeted Industries): Health Care: The aging community and the regionalization of health care will drive our health care sector.
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By Joe McClure, Executive Director, Montana Business Assistance Connection
production facilities and R & D capability. Tourism: Two driving factors support this industry: 70% of our economy is driven by consumer spending and we have considerable retail leakage to other cities. Back Office: Back office operations support and expand existing industries.
Manufacturing: An educated labor force plus infrastructure render this an attractive segment to create skilled and high quality jobs. Bio-Fuels: Energy produced from organic or bio mass. With Helena’s proximity to wood and organic material, as well as access to transportation, the greater Helena area is ideal for smaller scale
Based upon an extensive analysis of the community, our labor force, physical and financial assets, and infrastructure, it was determined by independent experts that these five segments present the best longterm opportunities to create high quality jobs in the greater Helena area. However, a key ingredient is a skilled workforce. In healthcare, with the Affordable Care Act coming into full swing in 2014,
led rce hospitals, and other healthcare providers are continuing to project shortages in qualified care givers even if you assume there will be no change in the way care will be organized and financed in the future; which we know is not the case. New scientific developments are occurring, payment policies are moving from fees for individual services to payments for episodes of care, and there will be widespread use of ambulatory, home, and community care in place of traditional inpatient services. Finally, electronic medical record keeping, monitoring, and reporting will continue to evolve. Bio-fuels is a relatively new industry and new skill sets will be needed to fill those jobs, and manufacturing is
becoming more and more IT intensive and requires additional skill sets and on the job training in today’s world. Complicating matters is the fact that our local population is aging, and it is aging at a rate higher than the U.S. as a whole. As our population ages, it reduces our total labor supply. A tight labor supply will likely drive labor costs up as businesses are forced to recruit, retrain, or to draw people out of retirement. Where will this added labor force come from? Retirees? External recruiting? Job training? I would argue that a workforce training system inclusive of higher education, government, and private sector training providers working together to serve the
needs of the community is the answer. Helena College and Carroll College can lead this charge by working together with business, labor, and government to create tailored education and training programs. A coordinated workforce training system will give our residents the skills required to obtain good jobs, earn family-sustaining wages, and advance along a career pathway. Driving the Helena region towards a more stable and diversified economy is up to you. Invest in yourself through retraining, invest in the community through financially supporting higher education, and together we can create a better place to live, work, and play with higher wages and a stronger economy.
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chambers smart businesses don’t join chambers. They retain them. In reality, smart businesses don’t join the local chamber of commerce, they pay the chamber’s membership fee for the chamber to join them. What they really do is look at chamber membership fees as a retainer for consulting services at a fraction of the going rate for consultants like me.
Patrick H. McGaughey
S
mart businesses have business plans and those plans usually include research, data development, business insurances, HR training and of course marketing. The intelligent strategy here is to contract with an organization that can support those strategies efficiently and at an amazingly low cost compared to private consulting firms, like mine. Smart businesses know that data is king, and the local chamber of commerce is the first resource for the demographics and other numbers needed to update our business plans and have
a pulse of the numbers that feed our plans. For example, the chamber compiles key numbers like housing and unemployment updating them for an efficient look at our local community as we prepare to recruit new employees. It’s amazing how major employers like hospitals are often the first to utilize the local chamber for recruiting physicians and highly sought after technical employees by using the data available and the community marketing material provided by the local chamber. When we hear, “The Chamber doesn’t do anything for me,” smart businesses understand that this is actually a good thing. What this really means is that we haven’t had to call the chamber for help. It’s similar to buying insurance. We all buy insurance hoping we never use it. If things are running smooth, we don’t need the local chamber to “do anything”
for us. But, if there is an issue such as an unfriendly local government regulation, education improvement or a need to improve our local transportation infrastructure, the chamber staff serves as your “member agents” to address the issues and they usually can’t wait to help and prove the chamber’s value to you. As for Human Resource training, smart businesses include the local chamber of commerce as a key part of their training strategy. Chambers historically contract with speakers and consultants to address leadership, management, marketing, sales and customer service courses for a fraction of the price a business would have to pay individually. Working cooperatively with the chamber’s training agenda in these areas leaves thousands of dollars available for the technical trainers we must hire within our respective industries.
Credibility and character is another reason why smart businesses have the local chamber join their business plan. For many businesses, 90 percent of their customers are out of town so they don’t see the values listed above because they think it’s just about doing business with each other on the local level. Smart businesses are sure to include their local memberships when marketing the credibility and character of their organization. It speaks volumes to a potential client when they see a corporation not only invests in their own business, but in their home community as well. A smart account representative will always include this in her or his presentation. This is a peek at why smart businesses don’t join the chamber but why they have the chamber join their business plan. As for the bottom line, an average $500 annual (not monthly) retainer is a no brainer.
Patrick H. McGaughey, CPF is an international business consultant, speaker and certified professional facilitator headquartered in Coeur d’Alene, Idaho
for more details, please visit www.activatingpeople.com 20
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CenturyLink is proud to call Montana home. For home 1.800.475.7526 For business 1.877.744.4416 Click centurylink.com
www.deloitte.com Services may not be available everywhere. CenturyLink may change, cancel, or substitute offers and services, or vary them by service area, at its sole discretion without notice. Requires credit approval and deposit may be required. Additional restrictions apply. Terms and Conditions – All products and services listed are governed by tariffs, terms of service, or terms and conditions posted at www.centurylink.com. High-Speed Internet (HSI) – Private, direct connection and speed claims are based on CenturyLink providing High-Speed Internet subscribers with a dedicated, virtual-circuit connection to the CenturyLink central office. The name CenturyLink and the pathways logo are trademarks of CenturyLink, Inc. All other marks are property of their respective owners. ©2013 CenturyLink, Inc. All Rights Reserved.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/ about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2012 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
SMALL BUSINESSES ARE THE BACKBONE OF MONTANA Helena’s not like other places in Montana. Although it’s the capital city, it’s really one small, connected neighborhood dotted with small businesses that keep us moving forward. As Montana’s leading, preferred SBA lender for the last decade, we know every new small business loan is a big step in the right direction. Mountain West Bank, a Preferred SBA lender.
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Maintaining the best possible air service in a very small community, like Helena, that is not a gateway to a major national tourist attraction is a 365-days-a-year job. Despite being the Capital City of Montana, the small population base of this market area – impacted significantly by the fact that there are four other airports each within about 100 miles of Helena – means keeping and/or ending air service is an expensive challenge for the Helena Regional Airport Authority.
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BY RON MERCER, AIRPORT DIRECTOR
WITH THE HELENA REGIONAL
AIRPORT A
n airport requires about 150,000 enplaned passengers annually to “break even.” The cost of providing a terminal building with associated parking and other amenities, including a basic runway/taxiway system and staffing to provide maintenance, fire and security services, would typically require the entire income stream from the airlines landing fees, terminal building rent, rental car commissions, parking lot income and other related terminal services derived from the entire 150,000 arriving and 150,000 departing passengers. With the record boarding level of just over 102,000 enplaned passengers in 2011 (we had about 98,000 enplaned passengers in 2012), the HRAA remains about 33
percent short on income to meet that criteria. There are two options: (1) increase the airline fee structure (it would require more than tripling of their fees as some of the other income such as rental car commission rates are set by national contracts and policies), or (2) find other non-aeronautical income to ensure there is adequate revenue to prevent the airlines from shifting their aircraft to other more profitable routes. Fortunately over the past couple of decades the HRAA has been able to establish adequate non-aeronautical revenues in order to maintain quality air service, while many communities of similar market size that do not have that national tourism connection have lot most or all of their air service.
So today, Helena enjoys direct air service to four major hubs – Seattle, Salt Lake City, Denver and Minneapolis. The HRAA recently hired a national consultant to provide a detailed report on how the airlines currently are doing in Helena and to look at options for refining or expanding the existing air service in the next 24 months and beyond. The HRAA has already begun the effort to increase the number of seats available each morning to Salt Lake City and will be discussing options to add seats, even if it is seasonally, in the Denver and Minneapolis markets. In addition, the HRAA continues to look at reasonable options to expand revenues to insure the airlines find this market a cost-effective place to do business. Finally, the HRAA will continue to work to provide
more user-friendly services to the flying public. Currently there are several services that are far more competitive than in other Montana cities, like our free short-term parking, very low cost longterm parking ($3/day and $15/week), free baggage carts, free newspapers (provided thanks to the Wingate by Wyndham) and “regular-priced” food in the restaurant. All of this is in what we consider a modern, up-to-date terminal that is well maintained and provides arriving passengers with a good Montana feel. So please continue to “Get on Board” with the Helena Regional Airport – your HomeTown access to the World.
25
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The math is simple. Healthy Employees = Lower Insurance Costs Companies that have established worksite wellness programs to help employees get healthier show a
25% decrease in sick leave and health care costs*
It’s all in the numbers. If you’d like to see how a wellness program can make your budget healthier, call 444-2128.
*source: American Journal of Health Promotion
www.stpetes.org 26
benefits use your benefits to your advantage Health insurance in general can be very hard to understand. Montana Chamber Choices offers a variety of plan options that ensure the best coverage at an affordable rate.
W
e know employee health is extremely important and offering basic health insurance is not enough to keep employees healthy; what many don’t know is often times there are many different ancillary or secondary benefits available to you as a member of a health insurance program. More frequently the term “ancillary benefits” is referred to when looking at group health insurance options like Chamber Choices. This term refers to benefits that are used to supplement group health insurance. These can include some of the most sought after employee benefits such as dental, vision, and life insurance. Group health insurance options, such as Montana Chamber Choices, often provide a certain advantage to the businesses in them. This is because the risk is spread through a large population. This in turn helps keep the premium rates stable. One of the hallmarks of Montana Chamber Choices over the last nine years has been rate stability. On top of offering stable rates, Montana Chamber Choices offers many of the ancillary benefits previously mentioned. Research studies have shown dental and vision plans are very helpful tools in preventing high cost medical claims. Early symptoms of high blood pressure, diabetes, glaucoma, and several other diseases can be detected through an eye exam. Health insurance on its own also does not cover income protection in the event
that a death may occur in a family. Life insurance can help protect employees by providing a benefit to cover the cost of a funeral or a debt. Montana Chamber Choices offers numerous ancillary benefits to provide your business with the most affordable healthcare options. All employees who are covered under the Montana Chamber Choices medical benefits are automatically enrolled in the following secondary benefits: VSP (Vision Service Plan) Vision Exam: VSP Vision exam with $10 copayment is available to all members and their dependents covered on the health plan. This also offers discounts on frames and lenses. Go to www.vsp.com to find a participating eye care provider. Simply tell your vision provider that you have VSP coverage. Preventive Dental: If a member sees a Blue Cross Blue Shield par dentist, the network allowable will apply. As always, it is not necessary to see a par dentist and the billed charges of a non par dentist will be paid up to $100 maximum annual benefit. Simply show your provider your BCBS ID card and ask that they submit to BCBS for processing. (Excludes CMM HSA 50% coinsurance $2,500 deductible option)
UNUM $5,000 Life Insurance: This benefit includes an “accidental death” provision that provides a $5,000 benefit whether the accident occurs at home or at work (only the employee, not the spouse or dependent, is covered by the benefit). UNUM Identity Theft: This program can give peace of mind to your employees and is included with the Montana Chamber Choices program. UNUM “Living Will” Service (also referred to as “advanced directive”): Many of us have been in a circumstance where a parent or relative is unconscious and hospitalized and no one wants to speak for that person as to what his or her wishes might be for medical treatment. Encourage your employees and their adult family members to take a few minutes to create their own living will so they do not find themselves in that situation. Employee Assistance Program (EAP): Many employers have an EAP to provide both telephonic and in-person counseling for employees who are facing personal crisis-employees have access to this completely confidential benefit. We all know that getting to the doctor for a yearly wellness visit can be difficult. Just an annual eye exam can be a preventive measure by detecting high blood pressure. So please take advantage of your benefit options.
for more information, please Visit www.chamberchoices.com 27
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the law of
reciprocity Influencing consumer value and service: A winning combination
by frank rowan, mr. business builder Frank Rowan of Helena is a small business advocate and coach and a member of the Helena Chamber of Commerce. For more information, call 406.410.1950 or visit www.mrbusinessbuilder.com
30
If you’re a business owner, you’re also a salesperson. Even if you are not involved in direct sales, you’ve had to sell the bank on lending you your start-up capital. You’ve networked with other business owners by way of community associations like the Chamber of Commerce. You’ve had to sell the best employees on why they should work for your business and become the finest advocate for your products or services. You’ve had to convince your business partner, spouse, and friends why your business idea is a good one.
N
ow you have to repeatedly demonstrate your business values along with selling the value of your product or service to your potential and current customers. The ability to sell effectively and efficiently is one every successful business owner has cultivated and continues to develop. It can be a complicated and time-consuming task, one that you will have to work on continually throughout your career in order to be – and stay – successful. After all, year-over-year growth is vital for the health of any small business. Now you have to repeatedly demonstrate your business values along with selling the value of your product or service to your potential and current customers. The ability to sell effectively and efficiently is one every successful business owner has cultivated and continues to develop. It can be a complicated and time-consuming task, one that you will have to work on continually throughout your career in order to be – and stay – successful. After all, year-over-year growth is vital for the health of any small business. Here are some simple examples of ideas that support new customer expansion, as well as create loyalty among existing customers – think about whether they can be applied to various aspects of your business:
Research shows that car-wash customers receiving a customer frequency “10 slot” punch card are more likely to return and pay for eight additional washes to earn a free wash when they are given two “head start” punches for free. It turns out that giving customers preferential treatment works psychologically in most business situations.
According to a Monmouth University study, waiters and waitresses can increase their tips by giving customers a piece of candy with their checks (19.59 percent average tip with candy vs. 18.95 percent with no candy). They can increase their tips even more by doubling up and giving two pieces of candy – to an average tip of 21.62 percent. But consider this: The same study found that the tip could be increased even more by first giving the single piece of candy, then after beginning to leave turning back around and offering a second piece of candy while acknowledging their business. This artificial drama evidently makes diners feel like they’ve received special treatment – something ostensibly outside of the “normal” candy-giving protocol. This technique was rewarded with an average tip of 22.99 percent. Think about that for a minute. First of all, if you’re a waiter or waitress, head straight for Costco and load up on Andes mints. They only cost 6 cents each, and on a $50 check, the double mint give away is worth an extra $2.02 in tips. This one strategy could add $40 to $50 cash in the pocket of waiters and waitresses per shift. Further, the business owner benefits with satisfied customers who repeat and refer others for a lifetime. A hotel clerk could make a positive impression with guests by handing them their room keys and then offering a complimentary bottle of water with the explanation, “There’s water in your room, but it’s like $4 a bottle. I always keep a stash of extra bottles with me for my preferred guests. Would you like one?”
A lawn service company could unexpectedly knock on prospective customers’ doors and ask them if they’d like a flat of flowers that were “left over” from a job down the street, and if accepted plant them in their beds. This isn’t rocket science. The Law of Reciprocity is extremely powerful. Just find some kind of special favor that you can give to your customers for free and watch their reaction. They’ll become more loyal. They’ll talk you up to their friends, and that will lead to referrals. And they’ll just plain like you more vs. other businesses. Who is the best salesperson in your marketplace: you or your competition? The answer to that question is worth your consideration.
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The Women's Leadership Network is the leading organization in Helena for women in business to network, educate themselves, and help other women realize their full potential. The organization has been empowering women since 1985. The Mission of Women's Leadership Network is to foster association among women, to educate and encourage them to exert their influence and to achieve personal and professional growth. Join our noon luncheon held the third Women’s Leadership Network Tuesday of each month at the Montana Club. Women’s Leadership Network, P.O. Box 1275, Helena, MT 59624 www.wlnhelena.org 33
l l a
t u o b a
g n i e o b lena e h
34
with director Eric Smith
How Long has Boeing Been in Helena?
Eric Smith was named director of Boeing Helena in December 2010, at the time Boeing acquired the business and operations previously conducted by Summit Aeronautics Group. “We closed purchase of the 14-month process in late November/December 2010 and became Boeing Helena,” explained Smith. Since that time Smith has served as site director for Boeing Helena.
How Many Employees are in Helena? Boeing Helena employs about 154 people.
What Does Boeing Do in Helena?
Boeing Helena employees manufacture titanium and other hard-metal structures for commercial airplanes.
What is Your Background?
Prior to coming to Helena, Smith served as the Boeing Commercial Airplanes (BCA)Industrial Engineering leader in Italy where his responsibilities spanned the Alenia Aeronautica facilities in Foggia, Grottaglie, and Pomligano. He led Boeing’s on-site operations support team, assisting Alenia in developing and implementing manufacturing system controls and business operations for its work on the Boeing 787 Dreamliner. Smith also served three years as senior manager of Common Commodities and Supply Chain Strategy in the BCA Supplier Management organization. He led a team responsible for integrating and prioritizing demand for aerospace fasteners across the global supply chain for the 787. Additionally, Smith had responsibility for the integration of domestic and international supply-chain strategies in conjunction with Boeing’s international participation and sales strategies. Previously he was on a special assignment working closely with Mitsubishi Heavy Industry’s manufacturing facilities in Nagoya, Hiroshima, Tobishima and Komaki, Japan. After joining Boeing in 1988 as an industrial engineer, he served in increasingly responsible assignments in strategic studies, and manufacturing operations and support.
A fourth-generation Montanan, Smith completed his Bachelor of Science degree in Finance with a minor in Economics, at Montana State University and recently graduated from Harvard University’s Advanced Management Program.
what about financial support to the community?
Smith states that he is proud of Boeing’s investment in the Helena community. “We have a philanthropic committee that takes requests from local non-profits and determines where and how our contributions will be distributed,” he explained. “It is important to Boeing to support our community through donation of time as well as money.” Boeing Helena’s focus of philanthropic efforts is on local arts and culture and health and human services. Smith serves as the Boeing Helena executive for education and university relations and in an advisory role at MSU for the College of Business. He is a member of the Board of Directors for the Helena Chamber of Commerce and is involved in a number of local charitable causes. In addition, Boeing is very involved with local schools to help get kids excited about, and involved in, the sciences. “Our greatest resource is our young people and promoting involvement in STEM actives, (science, technology, engineering, and math) helps prepare our youth for careers in those fields,” Smith said. This past year, in addition to providing an employee mentor, Boeing Helena gave financial support to the high school robotics program. Boeing Helena also has strong relationships with Helena College and MSU. “We offer scholarship and exchange opportunities to students and recruit future employees from those campuses,” explained Smith.
Does Boeing Have Expansion Plans for Helena? “We have expansion opportunities but no plans at this point,” Smith said. Boeing has added equipment and made upgrades to local facility.
35
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1/14/13 8:19 AM
how we’re doing helena
montana
business barometer and
climate report pages 38 to 41
business barometer second six-months of 2012
employment trends July–December 2012
LEWIS & CLARK COUNTY LABOR FORCE
EMPLOYED
UNEMPLOYED
RATE
37,032
35,264
1,768
4.8 %
aug 36,667
35,012
1,655
4.5%
sept 35,566
34,117
1,449
4.1%
oct 35,825
34,313
1,512
4.2%
nov 35,805
34,297
1,508
4.2%
dec 35,549
33,979
1,570
4.4%
July
MONTANA LABOR FORCE
38
EMPLOYED
UNEMPLOYED
RATE
July 518,462
488,049
30,413
5.9%
aug 517,526
488,236
29,290
5.7%
sept 508,382
482,432
25,950
5.1%
oct 510,222
482,516
27,706
5.4%
nov 406,478
477,788
28,690
5.7%
dec 503,613
474,194
29,419
5.8%
10K
100K
POPULATION
air passenger traffic
Estimate 2012
July–December 2012
ON OFF TOTAL %2012 VS. 2011 Jul 9,023 9,120 18,143 -6.0% on vs. -8.1% off -7.1% aug 9,493 9,234 18,727 -6.2% on vs. -3.9% off sept 8,739 8,156 16,895
-5.1%
-8.2% on vs. -9.8% off -9.0%
oct 8,233 8,235 16,468 -7.0% on vs. -5.5% off -6.2% noV 7.847 7.496 15,343 -4.0% on vs. -7.4% off
1,005,141
-5.7%
dec 7,989 7,845 15,834 -8.7% on vs. -10.1% off -9.4%
64,318
construction permits July–December 2012 City of Helena
Commercial Ju ly . . . . . . 1 8 • aug .. . . . . 2 6 • sep t .. . . . . 2 1 • o ct . . . . . . . 1 9 • nov .. . . . . . 7 • dec. . . . . . . 8 •
$ 6 ,93 3 ,1 07 $7,292 ,49 0 $ 4 ,395 ,6 4 6 $ 1 3 ,3 3 3 ,8 4 8 $793 ,6 5 0 $ 2 ,5 1 7,0 0 8
residential July . . . . . . 1 1 • aug .. . . . . 27 • se p t .. . . . 3 0 • oct . . . . . . 2 2 • nov .. . . . . . 1 9 • dec . . . . . . . 8 •
$ 1 ,41 8 ,35 5 $ 2,20 0,75 8 $ 4 ,0 5 4 ,53 3 $ 3 ,3 1 7,8 2 9 $ 1 ,5 47,241 $ 1 ,49 6 ,393
residential electrical permits
28,592
July–December 2012 (Unincorporated Area)
Lewis & clark county Ju ly..... 30 au g . . .... 33 se pt . . ... 24 o ct...... 30 n ov . . .... 23 dec....... 19
8,227
7,883
jefferson county Ju ly...... 11 au g . . ..... 13 se pt . . .... 8 o ct....... 10 n ov . . ..... 6 dec....... 3
44,702
39
six-year trend report
helena business climate
Your Montana Capital City 2007–December 2012
cost of living index
how do we measure up? Helena’s Policom Ranking for Economic Strength of 577 cities across the nation:
2007 2008 2009 2010 2011 2012
23rd 13th 9th 6th 2nd! 2nd again!
“Economic strength is the long term tendency for an area to consistently grow in both size and quality.”
40
2010 2011 2012
Overall Index
100%
Food
112% 108% 108%
Utilities
94% 92% 92%
Other
104% 100% 103%
100%
106%
*info from www.BestPlaces.net (Overall UP FROM 93.6% in 2009)
business facts
78.0%
Businesses in the Helena area that have 10 or less employee
3500
Approximate number of businesses that are now in the entire Helena Valley
3000+
Jefferson County workers who travel to Helena to work daily
600+
Broadwater County workers who travel to Helena to work daily
Helena has the largest population within a 90 minute drive of any city in Montana: 26,000 people (doesn’t include Missoula, which is 10 minutes further away!) From 2005 study done with Travel Montana, MDT & Mt. Aeronautics Division
July 2009 USA Weekend named Helena #1 of the top five places for young retirees (55-60 years old). Based on: recreation, weather, health resources, crime, and cost of living.
CITY OF HELENA BUILDING PERMITS 2007 2008 2009 2010 2011 2012 216 184 226 244 211 195 $31.2 million
$21.0 million
$21.5 million
$29.2 million
$26.5 million
$27.4 million
helena regional airport stats
AVERAGE HOME PRICES 2012
$210,351 ($195,000 median)
2011
$208,486
2010
$213,705
2009
$211,822
2008
$224,888
2007
$225,000 0
$50,000
$100,000
829
> Of 195 permits = 67 total new residences (within city limits) > Of the 67 = 44 were spec homes (not owned when permitted), half under $200,000 > Homes: 23 private; of those, 3 were $500,000- $600,000 and 9 were $300,000-500,000
$150,000
$200,000
$250,000
*Helena Association of Realtors
UPDATE
> Boardings were down 5.6%; However, recent study show that load factors are up – now at over 80% > High Load factors = retaining existing service > Future plans are for eliminating 50-seat jets and replace with 70, 90, and 100 seat jets.
STATISTICS
homes sold in 2012
(Includes single family, condo and townhomes)
> 2nd TSA Checkpoint was built $125,000 > $900,000 remodel of Fire Station 2 > $2.4 million ramp rehabilitation and de-ice pad for expanded aircraft parking
BUILDING PERMITS 2007 2008 2009 2010 2011 2012 187 175 196 231 215 209 $44.9 million
$59.8 million
$64.8 million
$53.7 million
$42.0 million
$50.4 million
> Approved for $1 million grant for Semi truck, mobile helicopter,car, haz-mat, structural, and tanker fire training trailers. > New snow removal equipment - $1.6 million > Acquired new mobile fire and hazmat trainers - $1 million (Thanks Sen. Baucus!) > Acquired FedEx Boeing 727 for training and for Helena College training
> More rooms occupied (up by 3000 room nights over 2011) > Most revenue generated – up $600,000 over 2011, > Highest average daily rate (up 1 dollar over 2011) in Helena hotels *Smith Travel Research Report
COMING SOON
> New runway and airfield lighting system – $2 million > Additional non-aeronautical business development to diversify revenues sources – maintaining our air services!
CREDITS: City of Helena; L & C County; Helena Airport Authority; Helena Association of Realtors; Smith Travel and Research; ourfactsyourfuture.org; bestplaces.net; www.policom.com; US Census 2000; Helena Area Chamber of Commerce 41
hR RESOURCES Compensatory Time Compensatory time - better know as “comp time” - is a mechanism used by many employers to avoid the costs of overtime pay. Unfortunately, with the exception of certain governmental employees, comp time is not a lawful alternative to overtime pay for non-exempt private and private non-profit employers. Both the federal Fair Labor Standards Act and the Montana Minimum Wage and Overtime laws require private sector employers to pay non-exempt employees a premium of 50% of the “regular rate” earned by that employee during the work week in which the overtime was worked. The employer may not ignore the legal requirement by utilizing compensatory time. The regular rate is calculated by adding all forms of compensation (except for the specifically excluded payments such as expense reimbursements) including hourly pay, salaries, commissions and other compensation and dividing it by the hours worked during the week. Failing to pay overtime when due can make an employer subject to stiff penalties of as much of 110% of the unpaid wages due. References: Montana Overtime Law 39-3-404 & 39-3-405, MCA Fair Labor Standards Act Overtime requirements 29 USC 207 Federal Regulations on the Calculation of Overtime Pay (29 CFR 778)
OSHA 300 Form to be Posted The Occupational Safety and Health Administration (OSHA) requires most employers to complete the OSHA 300 Log and post it in their workplace from February 1 until April 30 of each year so that employees are aware of the injuries and illnesses occurring in their workplace. Employers must keep a log for each establishment or site. If you have more than one establishment, you must keep a separate form for each physical location that is expected to be in operation for one year or longer. Employers are to record those work-related injuries and illnesses that result in: Death, Loss of consciousness, Days away from work,
Restricted work activity or job transfer, or medical treatment beyond first aid.
They are still working but the employer reduced their hours due to a lack of work.
An injury or illness is considered work-related if an event or exposure in the work environment caused or contributed to the condition or significantly aggravated a preexisting condition. Work-relatedness is presumed for injuries and illnesses resulting from events or exposures occurring in the workplace, unless an exception specifically applies.
They were fired for reasons other than misconduct.
References: Overview: Recording Work-Related Injuries and Illnesses; OSHA Form 300 Set
Form W-4 Certain employees may claim to be exempt from income tax withholding. This could be accurate if for the prior tax year, they had a right to a refund of all federal income tax withheld because they had no tax liability, and for the current tax year, they expect a refund of all federal income tax withheld because they expect to have no tax liability. To claim exemption, they must give you a Form W-4. On the form they should not complete lines 5 and 6 and they should write “Exempt” on line 7. If they claim exemption, but later their situation changes so that they will have to pay income tax after all, they must file a new Form W-4 within 10 days after the change. An exemption is good for only one year. Each employee, for example, who filed exempt in 2011, must complete a new Form W-4 by February 15 of each year to continue the exemption. If a new W-4 is not filed by that date, the employer must change their withholding status to single with zero exemptions. Reference: See IRS publication 505 for more information.
Unemployment Insurance Eligibility Individuals who apply for unemployment insurance benefits must, among other qualifications, be unemployed for reasons that make them eligible for benefits. A former employee may receive benefits if: They were laid off due to lack of work.
They left their job for a work-related reason allowed by law. They left their job due to an on-the-job injury. They left their job because they or their child was the victim of domestic violence, stalking or sexual assault. They left to follow their spouse due to a military assignment. They might be disqualified from receiving benefits if: They left their job for personal reasons that were not work-related. Reasons that are not work-related under Montana law can include voluntary reduction of hours, lack of transportation, lack of childcare, family issues, illness, and other personal reasons. They were discharged, suspended, or fired for misconduct. (See below) They are not working because of a strike or union labor dispute. Special laws govern claims filed because of strikes and union labor disputes. If you have questions, please call the Claims Processing Center. “Misconduct” includes but is not limited to the following conduct by an employee: willful or wanton disregard of the rights, title, and interests of a fellow employee or the employer; deliberate violations or disregard of standards of behavior that the employer has the right to expect of an employee; carelessness or negligence that causes or is likely to cause serious bodily harm to the employer or a fellow employee; or carelessness or negligence of a degree or that reoccurs to a degree to show an intentional or substantial disregard of the employer’s interest. The term does not include: inefficiency, unsatisfactory conduct, or failure to perform well as the result of inability or incapacity; inadvertent or ordinary negligence in isolated instances; or good faith errors in judgment or discretion.
Reprinted with permission of Personnel Plus! Consulting Services. No other republication or external use is allowed without express permission of Personnel Plus! Consulting Services. The information is not intended to serve as a substitute for legal or other professional advice.
42
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Conversation MYRNA LOY
THE MONTANA CLUB
Myrna Williams was born on August 2, 1905, in Radersburg, Montana, 40 miles southeast of Helena. At age seven, Myrna moved with her father, mother, and brother to Helena, where they lived on 5th Avenue, a few blocks from the Lewis and Clark County jail. In 1936, a poll of 20 million fans voted her “Queen of the Movies” and Clark Gable “King,” and the two were subsequently teamed in a number of films. By the time Myrna passed away at the age of 88, she had appeared in a phenomenal 129 motion pictures. Today’s Myrna Loy Theater, located near hear her childhood Helena residence, is named in her honor.
THE MONTANA CLUB Designed by architect J.M. Paulsen, the original Montana Club building was esteemed as Montana’s finest showpiece. Organized in 1885 for “gentlemen only,” and only those gentlemen who were millionaires, the Montana Club held its grand opening in April 1885 with 130 members. By 1888 membership had grown to 160 members and the expanding Club moved from its quarters in the Parchen Block to the Gold Block. With membership rising, the Club decided to build its own facility and purchased a lot on the corner of Sixth and Fuller. Fire destroyed the Montana Club early on the morning of April 28, 1903. Club members rallied to replace the destroyed building and immediately hired architect Cass Gilbert to design a new building. The “new” Montana Club opened in the summer of 1905 with a formal dedication held on December 30, 1905.
FIRST SPECIAL SERVICE FORCE Training began at Fort Harrison on July 20, 1942 for the legendary World War Two First Special Service Force. Dubbed the “Devil’s Brigade,” the mountain trained paratroopers specialized in sabotage, demolition, mountain climbing, and river fording. This small, fierce force suffered more than 2,300 casualties, including more than 400 killed and missing. After the war many members of the “Devil’s Brigade” returned to make Montana their home, many settling in Helena. A monument to their service stands today in Helena’s Memorial Park. 44
eddy’s bakery Twenty-year-old James E. (Eddy) O’Connell came to Helena in 1906 and first worked as a waiter at the Broadwater Hotel. A year later he became manager of the prestigious Montana Club. In 1910, O’Connell and Eddy Gallivan bought the Capital Café at 105 North Main and changed its name to the Eddy Café. A steaming cup of coffee was its logo. Three years later, the partners bought the Grand Central Hotel around the corner on North Main Street next to the Merchants Bank and changed its name to the Eddy Hotel. They moved the café to the hotel and opened the Creamery Cafeteria in the old café location. In 1908, Eddy O’Connell and his brother Frank purchased a small bakery in Missoula. Helena’s first Eddy’s Bakery was in the basement of the Eddy Hotel. It moved over to Edwards Street in 1916 where it operated for some 50 years. About 1919, O’Connell began buying small bakeries, and he eventually ran a chain of more than 20 bakeries in Montana and the Northwest, making Eddy’s Bread a household word. Eddy’s Bakery moved to 40 South Park Avenue in the late 1960s.
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