Inside Columbia's CEO Fall 2012

ThE mEANS TO wiN

sHelTeR’s neW Ceo TalKs TeamWoRK and InnoVaTIon p32

CREATivE & kiNETiC

an oFFICe desIGned To InsPIRe You and YouR emPloYees p38

READy fOR TAkEOff

ColumbIa ReGIonal aIRPoRT PRePaRes FoR GRoWTH p27

Life in A Company Town FALL 2012

www.ColumbiaCEO.com

mayor Robert mcdavid and Como business leaders Talk about diversifying our economy Page 15

CONTENTS

Inside Columbia’s CEO • www.ColumbiaCeo.com • Volume 4, Issue 1

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SPECIAL PROMOTIONAL SECTIONS

THE INSIDE COLUMBIA’S CEO INSPIRATION OFFICE PAGE 38

–––––––––– PAYROLL SERVICES PAGE 47

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Opening Bell: The Buzz On CoMo Biz

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Regional Roundup

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CEO Roundtable: Life In A Company Town

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Building The Future: Jerry Daugherty Takes The Chair At The Builders’ Association

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Oh, The Places We’ll Go: A Look At The Flight Plan For Columbia Regional Airport

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The Means To Win: The New Shelter CEO On Teamwork And Innovation

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Executive Style: In Step With Fall Footwear

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Networking

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Publisher’s Note

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Closing Quotes FALL 2012 I InsIde ColumbIa’s CEO

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iNSiDE COLUmBiA’S CEO STAff Publisher Fred Parry fred@insidecolumbia.net

MEET OUR EDITORIAL ADVISORY BOARD

associate Publisher Melody Parry melody@insidecolumbia.net Managing editor Sandy Selby sandy@insidecolumbia.net Copy editor Kathy Casteel kathy@insidecolumbia.net

RanDY COIl President, Coil Construction

TOM aTKIns President, Tom Atkins Investments

GaRY DReWInG President, Joe Machens Dealerships

bOb GeRDInG President, Gerding, Korte & Chitwood CPAs

editorial assistant Ren Bishop ren@insidecolumbia.net Contributing Writer Anita Neal Harrison Photo editor L.G. Patterson Creative Director Carolyn Preul design@insidecolumbia.net

DIanne lYnCH President, Stephens College

Paul lanD Principal/Owner, Plaza Commercial Realty

bOb PuGH CEO, MBS Textbook Exchange

GeORGe PFenenGeR CEO, Socket

Graphic Designer Aaron Channon aaron@insidecolumbia.net Graphic Designer Casey Loring casey@insidecolumbia.net Director of Marketing & business Development Bill Bales bill@insidecolumbia.net

GReG sTeInHOFF President of Strategic Operations, Veterans United Home Loans

JeRRY TaYlOR President & CEO, MFA Oil Co.

TIM WOlFe President, University of Missouri System

Director of sales Whitney Davis wdavis@insidecolumbia.net Marketing Representative Kyle Gross kyle@insidecolumbia.net Marketing Representative Crystal Midkiff crystal@insidecolumbia.net

Please Recycle This Magazine.

Inside Columbia’s CEO magazine 47 E. Broadway • Columbia, MO 65203 • Office: 573-442-1430 • Web: www.ColumbiaCEO.com Inside Columbia’s CEO is published quarterly by OutFront Communications LLC, 47 E. Broadway, Columbia, Mo. 65203, 573-442-1430. Copyright OutFront Communications, 2012. All rights reserved. Reproduction or use of any editorial or graphic content without the express written permission of the publisher is prohibited.

Postage paid at Columbia, Mo. The annual subscription rate is $19.95 for four issues.

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special Projects Coordinator Tiffany Schlarman tiffany@insidecolumbia.net Digital Media Producer Bobby Remis bobby@insidecolumbia.net Office Manager June Seboldt june@insidecolumbia.net Distribution Manager John Lapsley

OpENiNG BELL

the buzz on como biz

InTellIGenT lIFe

study suggests Your desk Job Could be a brain drain by SANDY SELBY

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Looking to perk up your office and your employees? We have ideas galore in our Inspiration Office. Get a preview on Page 38.

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olumbia has come out near the top of two recent lists of “America’s Smartest Cities,” but our desk-bound denizens could pull the IQ of the entire town down, if a study in the European Journal of Developmental Psychology is to be believed.

It seems that sittin’ around and thinkin’ might not be the most productive combo.

A group of German researchers found increases in cognitive ability among both children and adults when they were walking at their own preferred pace rather than sitting or walking at a slow, fixed pace.

Maybe our brains do work better when our feet are on the move, but most people can’t spend their workdays nurturing their noggins with long, leisurely strolls.

Fortunately, even a short walk could be the key to solving a workday conundrum or busting through report-writer’s block. Keep that in mind the next time your boss tells you to take a hike.

OpENiNG BELL

the buzz on como biz

hOw DO yOU LikE mE NOw?

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We Ain’t Chicken

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hich came first — the chicken or the egg?

It doesn’t matter to the folks behind Beyond Meat, a remarkably realistic meat substitute created from vegetable protein. In August, Beyond Meat’s parent company Savage River Inc. announced it was moving its production facility to Columbia.

The technology that allows the company to create a product that looks and tastes exactly

like chicken was developed at the University of Missouri by researchers Fu-hung Hsieh and Harold Huff. MU licensed the technology with the caveat that Beyond Meat make a capital investment in Missouri. The company plans to honor that commitment with this north Columbia production facility that will employ approximately 60 people within the next five years.

1,000 In 10 It’s only 10 years old, but Veterans United Home Loans has already surpassed the 1,000-employee milestone. In August, Veterans United announced it had 1,006 employees on its payroll, including 719 in Columbia. That tally makes Veterans United Columbia’s fourth-largest private employer.

t wasn’t too many years ago that University of Missouri Athletic Director Mike Alden was nearly swept out of his job by a wave of angry, anti-Quin Snyder sentiment.

But Alden survived the storm set off by the underperforming basketball coach and the mishandling of his termination, and has since enjoyed a string of victories, both on and off the field. Recently, MU Chancellor Brady Deaton announced that a two-year contract extension for Alden that will keep him at the helm of Mizzou Athletics until at least June 2019. Among Alden’s recent accomplishments: ● Leading Mizzou to receive, and accept, an invitation as the 14th member of the Southeastern Conference. ● Developing a $200 million facility improvement plan made possible through a $30 million gift by the Kansas City Sports Trust — the second-largest single gift in MU history. ● Directing a successful program where Mizzou’s student-athletes are leaders in graduation and academic progress rates. The Tigers ranked as the nation’s leader among BCS public institutions in academic progress rates in 2008, and have consistently ranked in the top 25 nationally, alongside such schools as Harvard, Yale and Stanford. Mizzou led the Big 12 conference in APR in six of the last seven years.

Alden’s contract extension does not increase the athletic director’s base salary of $301,917, or his performance incentives that have the potential of boosting his compensation by an additional $476,000.

hOpE AND hyUNDAi

Hyundai Hope On Wheels and Joe Machens Hyundai have awarded the University of Missouri School of Medicine a $250,000 Hope Grant to support pediatric cancer research. The medical school is one of 41 recipients of Hope On Wheels’ 2012 Hyundai Hope Grants. In all, $10.25 million will be awarded in grants during the month of September in honor of National Childhood Cancer Awareness Month.

Share your business news with Inside Columbia’s CEO. Email the editor at sandy@insidecolumbia.net.

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OpENiNG BELL

regional roundup

MidwayUSA Honored For Conservation Efforts > Midway USA’s Brenda and Larry Potterfield

STEvE piCkER RESiGNS fROm JEffERSON CiTy CvB

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n July 12, members of the Missouri Department of Conservation Commission were at MidwayUSA to present owners Larry and Brenda Potterfield with a proclamation honoring the company’s 35 years of serving customers and promoting conservation.

The state accolade recognized the Columbia-based company’s continued support of the shooting sports industry, wildlife conservation, preservation and hunter safety programs.

“This proclamation is a direct result of the support we’ve received from our customers since we started the business back in ’77,” Larry Potterfield notes. “Everyone at MidwayUSA is dedicated to our customers, to giving back to the industry and to our community.”

In 2010, MidwayUSA also received the Conservationist of the Year award, the highest award given by the Conservation Federation of Missouri, for the company’s efforts to promote conservation and the use of natural resources.

teve Picker has resigned as executive director of the Jefferson City Convention & Visitors Bureau to follow a new career path in Florida, effective Sept. 17. Picker has been with the Jefferson City CVB for more than nine years and director for six.

During Picker’s tenure, the bureau instituted several changes and improvements including establishing tours of the Missouri State Penitentiary and creating the Discover Jefferson City Foundation, a nonprofit arm of the CVB, to develop fundraising strategies to promote tourism in the Jefferson City community.

“I am proud of the accomplishments the bureau has achieved over the last six years, none of which could have occurred without the help of so many people, including a great staff, community leaders, an extremely supportive board of directors and countless volunteers,” Picker says. “I feel the bureau has achieved incredible results due to teamwork and support from the entire community.

Jefferson City is my home town; I love the community and plan to return here.”

The Convention & Visitors Bureau board of directors will begin searching for a replacement soon. A transition committee is in place to ensure day-to-day operations continue until a new executive director is on board.

Fulton Colleges Fund Receives Lead Gift From Moser’s

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oser’s Supermarkets of Fulton has pledged a $2,500 lead gift to the Fulton Colleges Fund Drive to support scholarships for Callaway County students in 2013.

“I am very pleased to offer up the lead gift for the 2012 Fulton Colleges Fund Drive. The students, educators and staff contribute greatly to our local community,” says owner Roger Moser. “As a community, our support for the Fulton Colleges Fund is vital and enables the FCF to continue to provide scholarships

to local students attending William Woods and Westminster.”

Moser’s operates seven supermarkets in Fulton, Columbia, Ashland, Jefferson City, Holt’s Summit and Warrenton.

For 50 years, the Fulton Colleges Fund has provided hundreds of scholarships to enable local students to attend the two Fulton colleges. The fund awarded $48,000 in scholarships to Callaway County students attending either Westminster College or William Woods University this fall.

< Matt Gowin (left), 2012 Fulton Colleges Fund Board of Associates president, thanks donor Roger Moser for the fund drive’s lead gift.

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CEO ROUNDTABLE

life in a company town Business Leaders Strategize On Diversifying

The Economy In This Mizzou-Dependent City

by SANDY SELBY photos by L.G. PATTERSON

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hat’s one big idea that could propel Columbia’s economy through the next decade?

That’s the question Inside Columbia’s CEO Publisher Fred Parry posed to Columbia Mayor Robert McDavid during a preliminary meeting before this quarter’s CEO Roundtable. McDavid had a surprising answer.

“The first big idea started in 1839,” he said, referring to the year the University of Missouri was founded.

“We’re a company town. We’ve been a company town. And like a lot of company towns, we want to diversify.

We have to do everything we can to make the university an attractive place for our students to come, our faculty to come, and an attractive place for them to be entrepreneurial. When you start thinking about big ideas, anything we can do in the city to enhance success at the University of Missouri helps us.”

–––––– Although the mayor was unable to attend the CEO Roundtable, the thoughts he shared during that candid conversation were the foundation for the discussion when a group of Columbia’s most respected business leaders gathered for lunch and some lively dialogue.

Parry launched the roundtable by asking the group if they agreed with the mayor’s characterization of the University of Missouri as Columbia’s most important economic driver; and if that’s the case, he added, where do the opportunities and threats lie?

“I would tell you that obviously, the significant growth in attendance at the university has been a real boon to Columbia’s economy,” said Dave Griggs, president of Dave Griggs’ Flooring America and outgoing chairman of Regional Economic Development Inc., or REDI. “Just look at the construction industry today and the student housing boom. Part of the significant reason we have a great downtown is because of the student dollars that are spent in the community. But part of the threat is that FALL 2012 I Inside Columbia’s CEO

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CEO ROUNDTABLE the university is nearing its capacity of being able to handle additional students.

We have some critically old infrastructure — buildings that are embarrassing when you go around and compare them to the schools we compete with.”

An opportunity mentioned by McDavid and echoed by roundtable attendees was Columbia’s ability to attract companies that have a connection with the university. Beyond Meat, the meatsubstitute manufacturer that recently announced plans to open a production

facility in Columbia, was held up as an example of a university intellectual property agreement that could pay big dividends for the city.

“In that particular situation with the licensing agreement with the university, there was a clause that said that company had to make a significant capital investment in Missouri,” Griggs said. “We were just very, very fortunate and worked very, very hard to make that capital investment be the actual manufacturing facility.”

ROUNDTABLE ROLL CALL

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TOm ATkINS President Tom Atkins Investments

JOhN STATES Co-Owner Little Dixie Construction

BOB GERDING President Gerding, Korte & Chitwood CPAs

GREG STEINhOff President of Strategic Operations Veterans United Home Loans

DAVE GRIGGS President Dave Griggs’ Flooring America

JERRY TAYLOR President & CEO MFA Oil

RICk mEANS President and CEO Shelter Insurance Cos.

mATT wILLIAmS Market President Hawthorn Bank

GEORGE PfENENGER CEO Socket

SPONSOR REPRESENTATIVE: GARY mEYERPETER President, Boone County Market The Callaway Bank

kuRT SChAEfER State Senator Missouri District 19

mODERATED BY: fRED PARRY Publisher Inside Columbia’s CEO magazine

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Greg Steinhoff, president of strategic operations for Veterans United, works for a company that was founded by University of Missouri graduates, so he understands the importance of forging long-term relationships between Columbia and future business leaders who are attending the university. He does caution, though, that it’s up to the community, not the university, to nurture those relationships.

“The university is focused on becoming a great university,” Steinhoff said. “They’re thinking about how they’re going to make the athletic department bigger. They’re thinking about their statewide mission. They’re thinking about recruiting out of state. They’re not sitting around thinking about what they can do to make Columbia great. That’s not their job. We have to put it together on the community side and bring it to the university, define their role and make it very clear what we expect from them and then work with them to get it accomplished. That’s why I think when the mayor talks about the university being a company town, if we’re going to get the tangential benefits, we have to bring it to them. They’re not going to bring it to us.”

MFA Oil CEO Jerry Taylor pointed out another encouraging sign he’s seen during his travels around the state. He said he’s seeing less regionalism and more Mizzou pride everywhere he goes.

“I lay a lot of it on Missouri sports,” he said. “We know for a fact that the sports program is the most vivid and out-there advertising program you can have for all aspects of the university. Missouri is a more highly regarded institution in its role than it was five or 10 years ago.”

The group agreed that opportunities abound for Columbia, thanks to the presence of the University of Missouri’s flagship campus, but Tom Atkins, president of Tom Atkins Investments and a University of Missouri curator emeritus, warned the group about the dangers of complacency. He described a close call about 10 years ago when the University of Missouri-Kansas City made a play to move the medical school to that campus.

Mayor Robert McDavid set the tone for the CEO Roundtable during a visit with Publisher Fred Parry a few days earlier.

McDavid believes opportunity abounds when we encourage entrepreneurial college students to stay in Columbia.

“It still strikes fear in my heart,” he said, “because I was there and this thing was a long way along. The University of Missouri-Kansas City had several meetings and they were moving fast. The president of the board of curators didn’t know a damn thing about it and the chancellor of the University of Missouri didn’t know a damn thing about it. The board of curators didn’t know anything about it. But our president stood up for us and said ‘Not on my watch.’ ” Atkins points out that the medical school and University Health Care control a budget that equals that “of the rest of the university system put together.” He believes the lesson the community should take away from that incident was, “Let’s protect what we’ve got as well as going after what we don’t have.”

State Sen. Kurt Schaefer, who in his current role as chairman of the Missouri Senate Appropriations Committee FALL 2012 I Inside Columbia’s CEO

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CEO ROUNDTABLE

Roundtable attendees discussed strategies for making Columbia a more attractive destination for new businesses but they also stressed the importance of providing a supportive environment for existing businesses. is in a position to squash grabs by the other campuses for Columbia campus assets, was complimentary of university leadership.

“Just in my time in the General Assembly, the university has gotten tremendously more savvy politically,” Schaefer said. “When Mayor McDavid says the university is the biggest thing, that’s not a judgment call; those are dollars and numbers.”

Republican Schaefer and State Rep. Chris Kelly, a Democrat, have worked together to guard the university’s budget and were victorious in preventing a threatened $106 million cut for 2013. “We got flat funding for 2013 from 2012. If you look at politics, that’s a victory. Is it a longterm win for the university? It’s not a cut, but we would like to have more money, absolutely.”

Schaefer said he and Kelly are working together on a bonding bill that would provide much-needed funding for higher education and other important public services.

“Why maintain a Triple A bond rating if you’re never going to use it?” Schaefer asked. “Everyone in this room with a 18

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business knows that the money you borrow is just another tool in your toolbox that, at the appropriate time for the appropriate reasons, you use. I think the state of Missouri is in the same position to use that tool right now, given the rates, given construction costs and given the need for capital improvements as a result of 30 years of neglect on some institutions like the University of Missouri. The timing is perfect and I’m one of those people who believe that those types of projects have an ancillary effect on every other business around.”

Safe And Sound Bob Gerding, president of Gerding, Korte & Chitwood CPAs, was disappointed that Columbia did not make Money magazine’s annual list of the best places to live in the United States. “We have to make Columbia more attractive,” he said. “I don’t know what those metrics are that Money magazine uses — crime, unemployment, median price of houses, real estate taxes, those sorts of things — but we need to address those issues.”

“We’ve got to continue to get the crime issue under control,” said Rick Means,

the new president and CEO at Shelter Insurance. “You pick up the paper and you read it, and a lot of people get the perception, right or wrong, that crime is a problem. People are getting to desperate times and they are doing desperate things, and it may get worse before it gets better.”

In his remarks to Parry prior to the roundtable, McDavid said that although any crime is too much crime, statistics don’t bear out the assumption that crime is a growing problem in Columbia.

“Nationally, violent crime is down over 20 years by 40 percent,” he said.

“Columbia is down substantially over the same period of time, so that’s good.

Columbia is a safer place than it was 20 years ago. There are fewer per capita crimes.”

To regain the perception that Columbia is a safe place to live, McDavid said, “We need cops on the street, visible, who understand they are community service representatives. Their role in marketing Columbia is extraordinarily important.

How they interact with students is extraordinarily important. That affects their reputation and our community’s reputation.”

Come In And Stay Awhile According to Socket CEO George Pfenenger, Columbia needs to do a better job of supporting the businesses that are already here. He described the complicated process his company is going through to expand its parking lot to accommodate a growing staff.

“It seems to me there would be an inverse relationship between the amount of contorting you have to do to get someone here, that should also be the measure of what you’re doing for the people who are already here,” Pfenenger said. “From my perspective, the city and the City Council make it very difficult to grow and expand a business here. You hear of conversations that the council has when they’re trying to decide on a new apartment development about whether or not we have a demand for this or not, as if someone sitting in that position has more knowledge than the people who are going to come up and invest their own dollars. It’s just baffling to me.”

John States, co-owner of Little Dixie Construction, shares Pfenenger’s frustration. “When you have people fighting over a parking lot expansion

“The university is graduating 7,000 a year.

Out of those 7,000, there are going to be some great ideas. We need to make sure that we capture those people and we need to make sure we make Columbia a great place to live.” — Mayor Robert McDavid and it takes my company months to get a permit to build his parking lot addition because he wants to hire more people, what is that doing for the next prospect that comes into the city?” States asked.

“They look at that and say ‘Why do we want to fight this battle?’ Then they’re looking at the next city down the road. It becomes a big issue for this town and not having that buy-in from the top down I think is a major problem.”

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CEO ROUNDTABLE Means also sees a deficit of information technology talent in Columbia. “We have had a hard time filling openings,” he said. “We actually purposely recruited outside of Columbia because we couldn’t fill [the jobs] within Columbia. We focused on Chicago, Philadelphia, places on the West Coast, and actually spent the money to bring people into Columbia, thinking this would be a great place to live and they’d fall in love with the place. But in two or three years, they quit and moved back. It seems like something has changed, because people don’t come in and fall in love with this community like they used to.”

The answer, perhaps, would be to develop more homegrown IT talent.

“We’re so fortunate to have all these businesses growing that have all these demands,” Taylor said. “Our high schools should be turning out those people. We have to have a process and a system for doing that because that’s important. I can’t depend on going out and snagging other people’s employees to get that job done. You have to build that pipeline.

Have we ever gone to that school system or the university and asked if this is possible? What type of collaboration is happening?”

Steinhoff said Veterans United is looking to open a center in Dallas because Columbia can’t supply the 50 to 100 IT people the company wants to hire. “We’re going to have 100 employees that are not going to be in Columbia that could be in Columbia,” he said. “These are high-paying jobs — $75,000 to $80,000 — but on top of that, if somebody is looking to come here, they’re going to look at what the situation is and that’s a big issue.”

Hawthorn Bank Market President Matt Williams took a brighter view. “I think in the last five years we’ve done a tremendous job with the power of collaboration,” he said. “We have the mayor and the City Council, the state delegation with Kurt and Chris, the university, chamber, REDI, business and everybody seems to be pulling together to get to a better place. Not that we don’t have some issues and some things we need to work on and those issues are 20

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Top: State Sen. Kurt Schaefer is complimentary about the University of Missouri’s leaders. Above: Jerry Taylor (right) would like to see the business and academic communities work together to train more IT employees. very frustrating. But I think we’re moving in the right direction. I think we need to be proud of that and continue to build on that and use those strengths to get further.”

If You Build It …

Mayor McDavid would like to see Columbia’s manufacturing base expand, and he believes entrepreneurial spinoffs from the University of Missouri, such as Beyond Meat, are a great place to start.

“Play to your strengths,” he said. “The university is graduating 7,000 a year.

Out of those 7,000, there are going to be some great ideas. We need to make sure that we capture those people and we need to make sure we make Columbia a great place to live.”’

Griggs said the infrastructure for manufacturing is available and ready to go in Columbia. “We have several sites and we have great utilities in place. Those dollars have been invested years ago. We have 150acre sites. We have 300-acre sites.”

And we have the workforce. McDavid points out that 48 percent of the people in Columbia don’t have college degrees. “We do have poverty. We have underemployment,” he said. “We can’t escape the fact that’s here and we have to address that sector of the population and we have to do it with jobs they can fill. We’re talking about $30,000 to $35,000-a-year jobs with benefits. The thing is, we’re not going to get Honda to put an automobile factory here and I’m not sure this community would want that,

but what we can do is use the assets of the university with its innovative, entrepreneurial ideas and a production base to put those jobs here.”

“I think we’re moving in the right direction. I think we need to be proud of that and continue to build on that and use those strengths to get further.” ­— Matt Williams Banker Williams thinks a focus on manufacturing now is important.

“Something that community banks learned through this last recession is that you have to diversify,” he said. “That focus on manufacturing is huge, and I think we can do it in a way that doesn’t change the character. We don’t have to have smokestacks everywhere. There’s a way do this that really diversifies our economy and makes us more recession-resistant.”

The Takeaways Enthusiasm ran high around the table for everything from the opportunities that can come with Mizzou’s entrance into the Southeastern Conference to the expansion of service at Columbia Regional Airport.

“If there was one piece of action we could take today,” Taylor said, “it would be to put together a collaboration of businesses and educators to say, ‘Here’s what we need. Here’s what they [students] need to know. That one piece helps solve unemployment problems.

We’ve got education, we have a demand for a product, we have kids who need jobs.

I can’t imagine that somehow the City Council and the leaders and the business people couldn’t bring that together.”

Gary Meyerpeter, Boone County market president of The Callaway Bank, which sponsors the quarterly CEO Roundtable, wrapped up the discussion with a promise.

“If what we’re suggesting is that the proof is in the performance, we need to execute,” Meyerpeter said. “I’ll share this information with my employees in different meetings to get them engaged.

The larger the audience, the more success we’ll have.”

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the conference room

Building The Future Columbia’s Jerry Daugherty Rises To The Top Of The Builders’ Association

by ANITA NEAL HARRISON photo by l.g. patterson

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ext January, Columbian Jerry Daugherty will become chairman of the board for The Builders’ Association, an organization that has been serving the commercial construction industry for 125 years.

“It is an honor and a privilege for me,” says Daugherty, president and owner of Reinhardt Construction Co. “I have become friends with many of the contractors and have great respect for them. I am proud to have my name associated with these people.” Daugherty is currently the association’s vice chairman.

The Builders’ Association represents approximately 900 general contractor, subcontractor and supplier member companies that employ a total of some 20,000 in Missouri and Kansas. The stated mission of the organization is to provide “high quality and valued services that contribute to the betterment of each individual member and the construction industry.” The association has offices in Kansas City, Jefferson City, Columbia and Springfield. There are many other chapters nationally.

The association’s members elect the board of directors and its officers, and Daugherty is only the second chairman to come from central Missouri.

Inside Columbia’s CEO caught up with Daugherty to learn more about his history with The Builders’ Association, what he’ll be doing in his new role and his assessment of the construction industry in mid-Missouri.

Please tell us a little about your history with The Builders’ Association.

The Builders’ Association was founded in 1887. Up until 1972, it dealt only with Kansas City companies but in 1972, the builders out of Kansas City wanted to expand, and they came to central Missouri to see if they could provide services to central Missouri companies.

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the conference room

who came and heard what services they were going to offer. I’ve been a member for 40 years.

How has your involvement with The Builders’ Association helped you in your business?

One of the first things The Builders’ Association offered was a labor relations staff that would negotiate with each of the trade unions for their labor agreements, which came up every three years. Prior to The Builders’ involvement, every contractor had to negotiate individually with all of the trade unions, and at Reinhardt Construction, I’m signatory to five labor crafts, so it was quite a task. When we became a member of the association, it saved us a tremendous amount of time, so that’s been a big benefit over the last 40 years.

“The homebuilding market has really suffered in central Missouri … The thing that has helped my business is higher education and health care.”

Also in the ’70s, when OSHA [Occupational Safety and Health Administration] came into play, the association hired its first full-time safety consultant. In the ’80s, in response to the crisis in workers’ compensation costs, they began assembling a team of in-house safety professionals. They would bring out safety consultants who would visit all of our job sites and who conducted safety training classes.

Now today, there are many more benefits. In Columbia and the association’s other three offices, there is a plan room with all of the projects that are being bid in that area over the next 45 to 60 days.

So if you’re a member of The Builders’ Association, you can go to that plan room, view those plans and bid on the work, 24

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or you can do all of this online using The Builders’ Electronic Plan Room.

In addition, the association is about to come out with ProjectConX, a new digital project management service that members can use throughout the project life cycle.

Another benefit is training. We have a training facility in Jefferson City and in Springfield, and there’s a large training facility in Kansas City. It brings in the various apprentices to train to become carpenters, laborers, brick masons, cement finishers, plasterers, ironworkers, etc.

There is also a government relations staff that monitors all of the legislation that comes out of the Kansas and the Missouri legislatures, and if there are positions The Builders’ Association wants to take, obviously, it does.

The Builders’ Association also provides an insurance program with workers’ compensation insurance for members who qualify.

That’s quite a bit.

It is, and in my business, I’ll use every one of these services.

Let’s switch now to a discussion of the economy. On Aug. 17, the Associated General Contractors of America released an analysis of Labor Department data showing that construction employment decreased in 31 states between July 2011 and July 2012. Missouri lost 9,500 jobs, a 9.2 percent decrease. How do members’ needs change in times like this, and how does The Builders’ Association’s efforts adapt to meet those needs?

Well, The Builders’ Association had to cut back some staff after 2008 when the downturn hit, but they were still able to provide all of the services. None of those services were cut. None.

The same press release noted that “public construction funding continues to shrink, offsetting gains in homebuilding and nonresidential construction.” Does the local situation fit this picture?

The homebuilding market has really suffered in central Missouri; it’s

been way down. Public money is still available. The thing that has helped my business is higher education and health care. Those sectors have helped insulate Columbia a little bit, and if things get turned around, we could get back to where we were in 2008.

How hard is it to find work right now compared to 2008?

We get bulletins every two weeks of the plans available for bidding, and right now, they’ve been averaging 35 to 40 projects that are bidding in central Missouri over the next month. Prior to 2008, it was that or more, but in the last couple of years, you might get a bulletin with fewer than 20 jobs bidding.

When did it start picking up?

It started picking up, I’d say, at the beginning of this year.

Are you hearing forecasts on where public funding is headed?

Right now, the picture doesn’t look bright.

The federal government has been cutting back since most of the stimulus funds for construction were awarded in 2010 and early 2011, and further cuts appear likely next year.

Local government budgets are still being pinched by falling property tax receipts that reflect the drop in home prices. State revenues are climbing but not by enough to fund much new construction work.

Getting back to The Builders’ Association, what opportunities and experiences are you most looking forward to as you step into the role of chairman?

I’ll have more contact with the staff in Kansas City, with the various departments, as well as those in Columbia, Jefferson City and Springfield. I’ll have the chance to be an ambassador and meet potential members and describe the benefits of The Builders’ Association.

I’ll also be representing The Builders’ Association at various functions in all three of its regions, which I’m very proud to do. I’m proud to carry the flag for The Builders’ Association.

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TRANSPORTATION

Oh, The Places We’ll Go A Look At The Flight Plan For Columbia Regional Airport

by KATHY CASTEEL photos by L.G. PATTERSON

C

olumbians are really going places these days: Memphis, Atlanta, Orlando and beyond.

Passenger numbers at Columbia Regional Airport are on the rise as city boosters work to add new destinations and improve facilities in hopes of enhancing the airport’s role in the region’s economic development.

Catch-22 What a difference a year makes! Last fall, Columbia business leaders were bemoaning the limited service at the airport and blaming it for Columbia’s lack of job-creation opportunities.

“Probably 500 good jobs in our community aren’t here because of the airport,” Dave Griggs complained to business colleagues at a CEO Roundtable last November. “People need to get their people to Columbia.”

Griggs, then chairman of Regional Economic Development Inc., noted the need to spend money to attract air service to mid-Missouri. “We’re going to have to spend the money to get the flights in here

and make a significant contribution locally to infrastructure and the terminal,” he added. “If we get the service, we’ll have the passengers.”

Passenger numbers looked good enough to convince Delta Air Lines to upgrade its service to Columbia earlier this year. Less than six months ago, Columbians had just one option for flying out of mid-Missouri. Three times a day (twice on Saturday), Delta ferried passengers from Columbia Regional Airport to Memphis in 50-seat regional jets. From there, further connections could carry passengers to other hubs for connections throughout the world.

In June, Delta replaced one Memphis flight with a midday nonstop flight to Atlanta’s Hartsfield-Jackson International Airport, the nation’s busiest airport with connections to more than 1,000 cities in 160 countries. Delta added a second round-trip flight to Atlanta on Sept. 5, replacing the evening round-trip flight to Memphis. And in November, Delta will suspend its remaining flight to Memphis for a winter hiatus; when the early

morning flight returns to the schedule next spring, it will be another nonstop Atlanta connection, essentially dropping Columbia-to-Memphis service in favor of three daily 50-passenger flights to Atlanta.

A second carrier, Frontier Airlines, will join Delta on the tarmac in November.

Frontier is scheduling Tuesday and Saturday nonstop flights to Orlando on the airline’s 138-passenger Airbus jets. The Florida city offers Columbians another gateway to the South with destination appeal for vacationers and conventioneers alike.

“Frontier is trying a business model used by Allegiant Air,” says Columbia Mayor Robert McDavid. “That is, you have a large, fuel-efficient plane that you leave in a tourist destination like Las Vegas or Orlando, and you fly it to two places in one day. It may go to Columbia in the morning and Decatur, Ill., in the afternoon. It’s a model that maximizes larger, fuel-efficient airplanes. We couldn’t fly a 50-passenger jet economically to Orlando every day. We couldn’t fill a 138-passenger jet to Orlando every day. We average 25 people from our area who go to Orlando per day. The FALL 2012 I Inside Columbia’s CEO

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TRANSPORTATION

numbers will go up — the price makes it a more affordable place in Florida to visit from central Missouri.”

McDavid will be watching to see how Frontier’s model works out in midMissouri with hopes that the Denverbased airline might expand its Columbia offerings to additional destinations. “It does put larger, more efficient airplanes in our stable,” he says.

The mayor expects Columbia Regional Airport’s share of the local air travel market to rise throughout this decade, if additional airlines and destinations can be secured.

“Our goal is 40 percent market share by 2020,” McDavid says. “Right now, 40 percent would be 400 passengers a day. We’re doing about 115 to 120. We’re making progress but we have a ways to go.”

Enplanements at Columbia Regional Airport this year are on track to match or exceed last year’s high of 38,219. In the first eight months of 2012, there were 25,084 passengers departing on Delta flights from Columbia; the airport recorded another 25,111 arrivals. An uptick in the last two months of that period — July and August — reflects traffic on the new Atlanta flight, says Columbia Public Works spokesman Steven Sapp.

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It follows that additional destinations will attract more passengers to the airport, says Greg Steinhoff, chairman of the Columbia Chamber of Commerce’s airport steering committee.

“It’s kind of a Catch-22,” Steinhoff says. “The way to get more airlines is to prove you have more passengers, and the way to get more passengers is to have more flights.”

Those additional flights will have to offer more options for destinations as well, says McDavid.

“We need more major hubs,” he adds, particularly those north and west of Missouri. “It could happen.”

Chicago, Dallas and Denver are on the city’s destination wish list.

Steinhoff hints at the possibility of acquiring new flights this year. “We will have an announcement — it will be very exciting — in the next couple of weeks,” he says.

Time For A Facelift The airport’s current facilities will require some upgrades to accommodate any additional airline passengers. The outdated terminal is congested with just one gate and a baggage claim area housed in a temporary addition that

critics disparage for its resemblance to a double-wide trailer.

“By the time Frontier starts flying in here, we could have four double-wides,” says Steinhoff.

Access to the airport, deterred by construction on U.S. 63 for the past year, will improve when the new interchange at Route H opens Nov. 1, allowing travelers a safer way to turn onto the roadway that leads to the airport entrance. The nearly $10 million project includes an overpass across U.S. 63, roundabouts and new southbound lanes for U.S. 63.

Frontier’s larger planes will be able to land on the airport’s existing 6,501-foot main runway, McDavid says. “We did land Air Force One here a couple of times over the past 30 years. We can do it.”

The runway is already slated for lengthening to 7,000 feet, Sapp says. The Federal Aviation Administration will pick up 90 percent of the yet-to-be-bid project’s cost. Another improvement, the FAA-funded rebuilding of the taxiway, is nearing completion, Sapp adds.

The airport also has a 4,401-foot crosswind runway that is in need of substantial upgrades, McDavid says.

“It’s falling apart.”

Shortly after Frontier announced plans to begin its Columbia-to-Orlando flights, the Columbia City Council voted to appropriate $50,000 for the preliminary design of a new terminal to accommodate the expected increase in passengers throughout the coming year. Improvements could include a larger passenger holding area, relocation of the baggage claims area, adding a controlled access system to the ramp and constructing an overflow parking lot with lighting on the west side of Airport Drive.

Although the city already has a terminal conceptual design report, drawn up by aviation architectural engineering firm RS&H in February 2011, McDavid says more research is required before improvements start.

“Those plans are very preliminary,” he says. “We’ll be going to focus groups to determine how many gates we need, how many seats we need. We need a minimum of three gates and 300 seats.”

Estimates place the cost of a new terminal at $17 million.

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TRANSPORTATION The Funding Puzzle Finding the money to pay for all the bells and whistles of expanded air service will be the next big job for airport boosters.

“We’ll approach the feds to see if there are any pools of money available,” McDavid says. “It’s unrealistic to assume the rate of federal spending will continue at this pace, but if it does, we’ll be there.”

A more likely approach is a bond issue, repaid through revenue generated by an increased hotel tax. The City Council could consider raising the hotel tax from the current 4 percent to 7 percent to fund airport expansion.

City Manager Mike Matthes reported to the council on Sept. 4 that the city has the power, with voter approval, to levy an additional 3 percent hotel tax for construction of a new airport terminal. Columbia also has the power, Matthes says, to impose a license fee on hotels and motels, based on daily room occupancy.

“A 3 percent room tax increase would create enough income to bond $17 million,” McDavid says. “Whether we choose to go that way or not, who knows? It’s an idea of what is achievable from a funding standpoint.”

The price of improved air service in Columbia extends beyond the construction costs for new gates and seats and runways. Airlines are wary of entering new markets without a guarantee against loss, says Steinhoff. To meet airline demands, the Chamber of Commerce formed a task force of more than 100 people about eight months ago.

A steering committee, which Steinhoff chairs, directs four subcommittees: Air Service (Kee Groshong, chair): The primary charge is to raise privatesector commitments to a “revenue guarantee fund” that would be used to attract a major hub connection. More than $3 million in public and private funds has been pledged to date.

Capital Improvements (Joe Moseley, chair): This group’s efforts are geared toward the design of a completely refurbished or new airport and looking for mechanisms to finance the project.

Funding would involve federal, state, public and local private support.

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Marketing (Sabrina McDonnell, chair): The committee is working to secure marketing commitments to help attract an airline as well as to promote use of the airport.

Governance (Dave Griggs, chair): The panel is exploring various forms of governance for the purpose of expanding the reach of the airport and encouraging those in surrounding communities to use it.

Steinhoff says about 25 to 30 public and private entities in Columbia and Jefferson City have committed money to the revenue guarantee fund.

“As the sponsor of the airport, the city will negotiate with the airlines for service to Columbia,” Steinhoff explains. “Once we have a contract with airline ABC for X number of flights and destinations, we’ll then collect the checks and put them in an escrow account, to cover losses by the airline in the first couple of years, if service doesn’t work out.”

Steinhoff says the $3 million fund should be enough to spark interest among airlines to service Columbia.

Negotiations are ongoing, he adds.

“We’re hoping for some major hub announcements in the next few weeks.”

The fund’s guarantee would not be limited to one airline, Steinhoff adds.

“Depending on the airlines’ needs, we could divide the guarantee — say, $1 million for one carrier and $2 million for another, or maybe divide it in half.”

The task force is optimistic that the fund will never actually be spent, he says. “The goal is not to touch the money, because the airlines will be successful here.” He emphasizes the fund is only a type of insurance to cover loss —a carrot — to entice airlines.

“I hope we never use a penny of it.”

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The

Means To Win

New Shelter Insurance CEO Leads A Team Focused On Success In An Increasingly Competitive Market

by KATHY CASTEEL photos by L.G. PATTERSON

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Shelter Insurance Companies

Rick Means is a competitive sort.

Just ask the guys who play golf with him.

“I don’t know if I’ve ever met a more competitive guy,” says Greg Steinhoff. “When you play a round of golf with Rick, he will remember every stroke; not just his, but everyone in his group. He calculates the final score faster than greased lightning. We chide him about it but I honestly believe he would bleed just to win a game of tiddlywinks.”

Tiddlywinks isn’t on the new Shelter Insurance CEO’s list of pastime passions — yet — but he readily admits to following the drive to “be my best,” whether the goal is athletic victories or career success.

“I am competitive,” says Means. “It drives me to be my best and it drives Shelter to be the best at what we do. It’s a good thing.”

The competitive spirit has fueled Means’ rise through the ranks at Shelter Insurance Companies for 35 years.

On Aug. 1, he became the ninth president and CEO of the 66-year-old Columbia-based insurance group.

Founded 1946 in Columbia as MFA Mutual Insurance Co. Renamed Shelter Insurance Cos. in 1981 after a split from MFA Inc. 2,082 employees (1,071 in Columbia) 1,300 Shelter agents 600 independent agents 19 claims offices Operations in 17 states and 50+ countries Headquarters: Columbia, Mo. Companies: > Shelter Mutual Insurance Co. > Shelter General Insurance Co. > Shelter Life Insurance Co. > Shelter Reinsurance Co. > Haulers Insurance Co. Inc. > Shelter Financial Corp.

Means’ passion for competition took root in nearby Callaway County, where the Fulton native played football, basketball and baseball at Fulton High School.

Summers spent working in his father’s auto body shop gave him his first exposure to the insurance world. Means arrived in Columbia in 1973 to attend the University of Missouri; he earned a bachelor’s degree in public administration in 1977 and went to work as a claims adjuster at what was then called MFA Mutual Insurance; the company changed its name to Shelter in 1981.

“Rick grew up in Shelter Insurance, in a time when there was a real sense of there being a Shelter family,” says Joe Moseley, vice president for public affairs.

By 1978, Means had become a physical damage specialist, working with storm teams. Married in the summer of 1982, Means and his bride Molly moved to Little Rock that fall when he was promoted to supervisor. His career itinerary included stops in Baton Rouge, La., and Springfield, Ill., before he returned to Columbia as a physical damage claims manager in 1989.

Back in the home office, Means steadily climbed the corporate ladder, becoming a regional claims director, vice president for claims and vice president for underwriting. He served Shelter as executive vice president for five years until former President and CEO David Moore announced last January his plans to retire in August. With that announcement came Means’ promotion to chief operating officer and president-elect. He joined Shelter’s board of directors in May. The company transition posed challenges for the 57-year-old CEO. Means has assembled a management team — executive vice presidents Dan Clapp, Matt Moore and Teresa Magruder, and 34

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> Shelter Financial Bank > Shelter Financial Services Inc. > Shelter Benefits Management Inc. > Shelter Enterprises LLC > Daniel Boone Agency LLC

Randa Rawlins as general counsel — to help him plot a course for growth in new markets even as the $4.7 billion company recovers from the insurance industry’s worst year ever.

“Growth has been tough in this economy,” Means concedes.

“This management team has 120-plus years of experience. We will build on that and work as a cohesive team. We’re focused on growing the company and remaining economically sound.”

In the insurance world, Shelter is known as a super-regional.

The group’s 11 insurance and financial companies operate in 17 states and more than 50 foreign countries, employing 2,082 in addition to the 1,900 captive and independent agents who market the companies’ products. Shelter Bank’s $103.3 million in deposits make it fifth in Columbia market share. Commercial properties at Shelter Office Plaza and Broadway Shopping Center bring in additional lease revenue.

The current insurance portfolio includes 1,912,000 property and casualty policies on the books, heavily concentrated in

Matt Moore, Teresa Magruder, Rick Means, Dan Clapp and Randa Rawlins

consumer lines (65 percent auto, 25 percent homeowners/ property, 10 percent commercial). Another $21.4 billion face value in life insurance policies are in force. Premiums have brought in $1.4 billion in revenue over the past year.

By the end of next year, Means says, the company expects to have 2 million policies on the books and revenues of $1.5 billion.

Shelter can attain those goals, he says, through prudent financial management, market expansion and an aggressive focus on alternate sales channels.

Shelter’s growth plan may include bringing additional companies into the fold — the group acquired Haulers Insurance Co. of Columbia, Tenn., in 2008 — after a due diligence assessment.

“We must spend our money wisely,” Means says. “We’re a mutual company, owned by our policyholders, and we have to answer to them. We’re very happy with HIC; that was the first time we’d bought another company. We’re looking at acquiring other companies now.”

Expansion into additional states is another option, Means adds, possibly through “alternate channels” such as Internet sales.

> The Cost Of Catastrophe Last year was one for the record books in the insurance industry. According to the Insurance Information Institute, 2011 was the worst catastrophe year on record, incurring an estimated $105 billion in insured losses worldwide. Shelter Insurance tracked a wind, hail or tornado event in every state of its U.S. operating territory in 2011, toting up damage claims of more than $400 million. International disasters — including three earthquakes in Japan and New Zealand — added to Shelter Reinsurance’s woes with an underwriting loss of $66.3 million.

Despite the disastrous losses of 2011, the single largest payout for Shelter Insurance remains the Columbia hailstorm of March 2006. The company paid $100.5 million on 23,000 claims.

The second most-expensive disaster in Shelter history was the Joplin tornado of May 2011.

Policyholders filed 5,800 claims and received $97 million in payout.

Hurricane Katrina rounds out the trio of record losses for Shelter. The August 2005 storm resulted in 11,400 claims and a $95 million payout.

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“Alternate channels will be a big thing for us. We have the infrastructure already in place,” he notes, but he is quick to add that Internet marketing is only one aspect of insurance sales and not the complete package. “By no means are we turning away from the personal service of the agent,” he says.

“People tend to price insurance over the Internet, but they talk to an agent before the sale.”

Shelter’s move into Nevada in 2006 — what Means calls “the Las Vegas experiment” — is a nontraditional business model that utilizes Internet sales and account managers rather than agents. It has had mixed results, he says.

“We keep trying different things with the Vegas model,” he says. “It’s a laboratory for us.”

Within the next 18 months, Shelter could expand into another state, Means says, and options are wide open. “The Midwest is a good insurance region,” he says. “But we’re looking to spread out the risk where there is less storm exposure. You have to be careful when assessing regions for expansion. We look at the ups and downs and weigh the risks.”

Any states not worth the risk?

“Florida,” Means says.

Traditional expansion within Shelter’s current operating region is also on the table, he says, adding agencies in communities that don’t currently have Shelter agents.

to lodge complaints or bring up issues with their coverage or claim service. We sent people to the meeting, but it was a lonely day for those staffers. No one had issues with Shelter that day.”

Shelter’s growth is backed by a commitment to customer service, Means says. “We do an outstanding job on handling our claims,” he boasts. “Our agents don’t sell coverage based on price, but based on customer needs and the service we provide.”

Customer service was never more apparent, or more needed, than in the aftermath of the tornado that struck Joplin last year.

The devastating EF5 tornado on May 22, 2011, tore a mile-wide swath through the southwest Missouri town, leaving a 22-milelong trail of destruction: 161 dead, 7,000 homes and businesses destroyed, and nearly $3 billion in damage.

Shelter response teams were on the scene that evening and for months after the storm. Means, a storm damage specialist, arrived to survey the disaster five days later. The devastation was indescribable, he says. “I have been in this business for 35 years — it was the worst I’d ever seen. Seeing the intensity of the storm damage, I’m amazed more didn’t die.”

He points with pride to Shelter’s response to the springtime tragedy. “That fall, the state hosted an insurance summit at Missouri Southern State College to give tornado victims a chance

Means describes his management style as participatory.

“I get a lot of input from our management team,” he says.

“We visit a lot. But at the end of the day, I have to make the tough decisions. I won’t do it in a vacuum.”

The toughest decisions are those that impact employees or agents, says Executive Vice President Dan Clapp. “Rick has always handled those decisions fairly and with concern for the impacted employees or agents,” Clapp says. “When he was vice president of claims, he made the difficult decision to consolidate several of our branch claims offices into other offices. Rather than making the decision and leaving it to others to implement, Rick personally met with the employees of the offices that would be closed, explaining the decision and the options that would be available.

Many of the impacted employees continued their employment in different roles or locations. I know Rick was greatly concerned about those who could not continue employment with us, and those employees were treated with respect and support.”

His empathy comes from experience, says General Counsel Randa Rawlins. “He has walked in the shoes of many of

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> Camaraderie & Community

S

helter Insurance CEO Rick Means works hard and plays hard. He’s at Wilson’s Fitness Center by 5:30 a.m. for regular workouts, and adds a 20- to 22-mile bike ride a couple of times a week, plus golf on Saturday mornings. He relaxes at his Millersburg farm, where he steals away to fish on weekends.

The competitor in him likes to win.

The golf course stories are legion, his friends say, as they offer insight into his decision-making habits.

“Rick is confident in his decisions and moves forward,” says golfing pal Bob Gerding. “He does not look back, unless he loses a golf game. He shot a 103 at the Kansas City country club last year and he gets reminded of that whenever he needs reminding. He said the trees kept getting in the way.”

Means takes the ribbing with good nature, even the aspersions cast on his high school football glory days when he blocked for future Mizzou star and NFL

standout Tony Galbreath (“That’s why Rick has cleat marks up and down his back,” says Greg Steinhoff.)

All kidding aside, Means’ friends treasure their camaraderie and marvel at his leadership qualities. “He’s a great friend, always interested in others,” Steinhoff says. “We give him a hard time, but when you have a need he’s there to lend a hand.”

That philosophy extends to Shelter’s perception of its corporate citizenship in all the communities where it does business.

“We’re proud to be a part of the community,” Means says. “We’re involved in the community — the United Way, Boy Scouts, Boys & Girls Clubs, Big Brothers Big Sisters and the Food Bank.”

His passion for family, community and sports helped fuel the effort behind the short-lived Tiger Town concept for home football games.

Gerding, Steinhoff and Means took their annual road trip to an away

the employees,” she says, “and they know he understands their role. As Rick assumed responsibility for these various departments over the years, he gained a great deal of respect from employees and agents for his common-sense approach to issues. He welcomes input, but is not afraid to make a decision.”

Means is a “hands-on” leader who understands the company has a talented group of people that will get the job done, says Executive Vice President Matt Moore. “Rick realizes that he has people in place to make decisions and he allows them to make those decisions,” Moore says. “Yet, the fact you know he is watching gives you a desire to get it right the first time. He pays attention to detail probably better than anyone I know and that makes him extremely effective.”

“Rick knows Shelter inside and out,” says Executive Vice President Teresa Magruder. “His standards and expectations are high.”

It all comes down to giving people the freedom to do their jobs, Means says. “I trust our team.”

He’s working to change the workplace culture and shake up the staid, conservative climate of insurance companies. Casual Fridays and free ice cream in the cafeteria are only the beginning, he says.

“My philosophy is, you work from your 20s to your 60s — you spend two-thirds of your adult life working — you ought to be able to laugh and have a good time. You still have a job to do.”

A self-described “exercise nut,” Means is proactive in promoting wellness awareness, says Moore. “As an avid exercise enthusiast, Rick is starting to lay the groundwork for providing

football game in Oklahoma last year that Means combined with a visit to his daughter in Norman. Their experience at the pregame Sooner fan zone gave the trio an idea they wanted to try in Columbia after the University of Missouri announced it was joining the Southeastern Conference.

“Rick was the inspiration for Tiger Town. Bob and I were the perspiration,” quips Steinhoff.

The concept could not get traction in fundraising and the group pulled the plug on Tiger Town for the 2012 season.

“We were disappointed,” Means says. “A lot of time went into the planning and preparation, and we had already hired a coordinator and an event company, but we just couldn’t get the sponsorship levels we needed.

Tiger Town had a budget of $200,000, and we had raised only $60,000. We needed a year, and we didn’t have that much time. I think we’re missing something without Tiger Town this fall.”

better opportunities to exercise on a daily basis,” he says. “We have started to look at adding showers to our facility, which we hope will encourage a break or lunchtime walk or jog. Healthy employees are a win-win, benefiting themselves along with the company.”

Means knows that the future of Shelter Insurance lies in those up-and-coming employees who receive mentoring along their career paths, much as he did. “You don’t get there on your own,” he says. “Watching my father run his business had a great influence on me. I’m grateful for people like Ralph Turner, who first hired me in claims here … Otto Buhler in Baton Rouge, who taught me this business … and Don Light in Springfield, who took a risk putting a 30-something young man like me in charge as a regional claims director.”

Means relishes the prospect of mentoring Shelter’s next generation of leaders. “Part of my job is to mentor young rising professionals. I hope I can mentor the executive vice presidents on my watch as well as I have been mentored. I want to see the company successful and provide opportunities for career success to our employees and agents.”

The will to win may be at the heart of Means’ efforts to grow the success of Shelter Insurance Companies, but his competitive nature takes a back seat to what really drives him: Do the right thing.

“That’s a big responsibility,” he says. “I want to make the right decisions so the company is still here another 66 years and beyond.”

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SPECIAL PROMOTIONAL SECTION

k i n e t i c, c o l o r f u l & connected T H E I N S I D E C O L U M B I A’ S C E O I N S P I R AT I O N O F F I C E R E V I TA L I Z E S T H E W O R K P L A C E

SPECIAL PROMOTIONAL SECTION

Today’s office workers are on the move. Laptops and smartphones in hand, they’re moving from their desks to informal conversation areas or cozy nooks with televisions and coffee makers.

Perhaps they’ll recharge their creativity with a quick game of hoops or a few moments of meditation.

This is a generation that won’t be content to spend eight hours in solitary cubicle confinement, and savvy business owners are rethinking office design.

If your office space is less than engaging, stop by the Inside Columbia’s CEO Inspiration Office to find your design muse. This office, conveniently located in the Woodridge Center on I-70 Drive S.E., is a showcase for the latest and greatest in technology, furnishings, amenities and décor.

When an office is this inspiring, the new mantra among employees will be TGIM: Thank God It’s Monday. the inspiration office is located at 3514 i-70 drive s.e., suite 101, in the woodridge Center (formerly J. ousley Plaza). it is open for tours from 3 to 6 p.m. every tuesday, wednesday and thursday, from sept. 18 to nov. 15, 2012.

by SANDY SELBY photos by L . G. PAT T E R S O N FALL 2012 I InsIde ColumbIa’s CEO

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SPECIAL PROMOTIONAL SECTION

about the

realtors

G

about the

development

G

eorge H. Ousley Jr. didn’t set out to be a commercial real estate developer. In 1984, when he and former business partner Wayne Sells purchased a piece of land that would eventually become known as the J. Ousley Plaza, they were simply looking for a place to build an office for their own business.

It’s hard to imagine a location so highly visible from Interstate 70 and just a mile and a half from the U.S. 63 interchange would be considered anything but desirable, but bankers at the time saw it differently.

“They said, ‘Oh, man, you don’t want to build anything out there.

There’s nothing there,’ ” Ousley recalls. “So we bought the land from the original owner and built the first building. A year or two later, a video store wanted to move out here so we built the next building.”

And a development was born.

“There are 45,000 cars a day that go by here and it’s within throwing distance of the medical district,” Ousley says. “If you need exposure for your business, can you think of anywhere along I-70 where you can have this kind of visibility?”

The J. Ousley Plaza was named for Ousley’s son, who was killed in a car accident while serving in the Navy. With recent remodeling and rebranding efforts, Ousley made the difficult decision to change the name to something that reflects the location of the development, which sits adjacent to the Woodridge subdivision and at the intersection of Woodridge Drive and I-70 Drive S.E. The Woodridge Center features six buildings — about 45,000 square feet — plenty of parking, a recently remodeled façade and the new “designed to suit” option.

“I’ve never rented a place furnished, but now someone can walk in here and say ‘I want to rent this space and I want furniture in it,’ and we’ll do it,” Ousley says. “We can rent furnished, unfurnished, whatever they want. And we’ve been here long enough that my rents are considerably lower than some other areas in town.

“To me, I’ve got the perfect setup. Of course, I’m biased, but I believe that. I really do.”

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eorge H. Ousley Jr. knew he had something special in his property at Woodridge Center, so he turned to the experienced team at Plaza Commercial Realty to represent it.

Plaza Commercial Realty Principal/ Owner Paul Land has been selling real estate in Columbia since the 1980s. Mike Grellner joined Land in 2006. Together they focus exclusively on commercial real estate in Columbia and Boone County.

“We approach each real estate transaction with the same fundamental goal: to have the respective parties of that transaction feel as though it was a fair, equitable deal. A win-win,” says Grellner, Plaza’s vice president. “When people leave a transaction with that feeling, it’s very likely we’ll get to work with them again in the future. Our extensive market knowledge brings a lot of value to those we work with.

We live and breathe this stuff, focusing solely on brokerage work in Columbia and Boone County.”

Overall, the commercial real estate market in Columbia is strong, Grellner says. “Our market data reflect a very positive environment in Columbia, especially relative to the national averages and other large communities in Missouri.

Leasing and sale activities are strong.”

Grellner and Land are delighted to be involved with marketing the Woodridge Center.

“The owner takes pride in the property,” Grellner says. “It’s well cared for, and he sincerely cares about his tenants’ satisfaction.”

For more information about the Woodridge Center, contact Paul Land or Mike Grellner.

Plaza Commercial Realty 573-443-1020 www.woodridgecenter.com www.paulland.com

SPECIAL PROMOTIONAL SECTION

stephen rust design studio 573-864-8929

about the

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designer

or Stephen Rust, good design comes naturally. He’s a third-generation designer and has been immersed in his vocation since childhood. For years, Rust has worked alongside residential and commercial property owners in Columbia to create spaces that are as beautiful as they are functional. It makes sense, then, that Rust would be the go-to designer for the Inspiration Office.

Rust, a self-described baby boomer, says that today’s generation has a different sensibility. While baby boomers tend to surround themselves with keepsakes and view overstuffed chairs and massive desks as status symbols, the “millennial” generation prefers design that is spare and streamlined — a sensibility that borrows from the 1950s and the mid-century modern trend.

“It’s nice to be in a business to see this cycle come back,” Rust says. “It’s

very appealing, very clean. This younger general doesn’t demand a lot of highmaintenance stuff and are more accepting of new more environmentally friendly materials. They’re a little more laid-back.”

They’re also inclined to move around, which is why Rust built a variety of work environments into the Inspiration Office space, including a comfortable lounge area, a coffeehouse-style media bistro, and the traditional (albeit more stylish and flexible) work cubicles. He describes the Inspiration Office space as “kinetic.”

“I wanted to create a place where people can walk around and think,” he says. “Some people are pacers. A more free space allows different personalities to work the way they want to work. We want to appeal to young entrepreneurs who might want to organize their business differently than their parents did.”

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SPECIAL PROMOTIONAL SECTION

about the

audio/video

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or more than 40 years, D&M Sound has been keeping its customers on the leading edge of technology, and the Columbia-based company is on top of the trends again at the Inspiration Office.

D&M Sound owner Anne Moore is particularly excited about the digital signage technology her business is demonstrating at the Inspiration Office. Digital signage allows a business to show video or live TV on a portion of the television screen, and run instantly updateable messages on other sections of the screen. A doctor’s office, for example, could show an informative video and promote upcoming seminars on the same screen. Digital signage technology, which was once financially impractical for most businesses, has become affordable, Moore says. “Now you can buy a complete system without ongoing fees for less than $2,000. You get the TV and all the digital signage software.”

D&M will showcase money-saving energy and lighting controls in the Inspiration Office, along with Internet-based security cameras, which can serve a variety of functions such as enhancing employee safety and allowing business owners to check in on the office from a remote location.

The conference room is outfitted with a top-ofthe-line system that makes teleconferencing a breeze.

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D&M Sound 201 S. Eighth St. 573-449-3933 www.dandmsound.net “[Teleconferencing] is a big, emerging area that is a costsaver because you can do conferencing without travel costs,” Moore says. “It allows you to have face-to-face discussions that are more personal and valuable than a phone call.”

Moore and her staff offer expertise in helping customers make choices for business technology as well as home entertainment. “We truly specialize,” she says. “We help our customers not only purchase the right thing, but get it designed properly, installed properly, and followed up with service.”

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about the

furnishings

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Smart Business Products 1901 Vandiver Drive 573-474-4057 www.smartbusinessproducts.com

ill Schuette has some good news to share: The days of drab, cubicle-filled offices have come to an end. He’s proving his point with the colorful, creativity-boosting furniture his company, Smart Business Products, provided for the Inspiration Office.

The Inspiration Office, designed with millennials in mind, offers both private and communal space, allowing office dwellers to recharge simply by picking up their laptops and moving. They could hang out in the lounge area, which features comfortable, vibrant orange seating. “We like to call it our living room,” Schuette says, “where they can get out of the cubicle and have an informal meeting.” Perhaps they’d prefer to work in the media bistro at the rear of the office, where they can sit down for some coffee and productive conversation.

“Everybody needs to communicate more openly every day and get more done,” Schuette says. “A lot of places that have creative thinkers need that change to be able to free up that thought process. We call it untethering.”

Smart Business Products designer Sheila Hoelscher selected the furnishings for the space, including the supervisor’s glass-walled cubicle, the brightly hued and ergonomic task chairs, the well-appointed executive office and a sleek conference room table with trendy white chairs.

All the furnishings are manufactured by Herman Miller, an innovator in office furniture design. “We’re the exclusive Herman Miller dealer in central Missouri,” Schuette says.

“Having that base of knowledge available to us gives us a leg up to be able to bring those things to market years ahead, before other people copy it.”

Bill and Cathy Schuette founded Smart Business Products in 1999. Today the company meets the office furniture and office supply needs for businesses in three Missouri cities — Columbia, Jefferson City and Springfield. “We’re the only locally owned office products and office furniture dealer in central Missouri,” Schuette says, “and that sets us apart.”

about the

meditation room

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generation ago, bosses didn’t care if their employees needed space and time to relax during the workday, but bosses in this new millennium are discovering that mental breaks can lead to breakthroughs in creativity and productivity.

The Inspiration Office nurtures that notion with a meditation room, beautifully furnished by Slumberland. To create this office-dweller’s refuge, Slumberland’s designer Dana Crane selected two Lotus chaises from Slumberland’s Meredith Collection. These durable loungers offer a comfortable place for meditation or a 10-minute power nap. Crane accessorized the room with additional tasteful items from Slumberland, including an oval end table from the Sebring Collection.

Slumberland opened its first store in Minnesota 45 years ago, and has since expanded to 125 stores in 12 states. The Columbia store opened in 2002. Since that 1967 beginning, Slumberland has operated on a philosophy of providing comfortable, well-built furniture at reasonable prices.

Slumberland 8600 I-70 Drive S.E. 573-814-2500 www.slumberland.com

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SPECIAL PROMOTIONAL SECTION

about the

flooring

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ave Griggs says, “Everyone performs better when they are excited about the look of their surroundings.” Griggs and his team at Dave Griggs’ Flooring America put together an exciting, fun working environment for the Inspiration Office by blending products, colors and textures.

“This is a unique project in that the space is designed to meet many needs,” Griggs says.

“The carpet is a bold pattern, yet in a color that ties all the other floors and furnishings together. Adding this fresh, bold pattern makes a huge difference in the aesthetics of the building without the expense of replacing all the floors. It’s not unlike adding a new trendy area rug in your home for an update in style.”

The Flooring America staff chose easy-care carpeting made of a solution-dyed nylon that is extremely stain resistant.

The tile flooring in the entry, media bistro, break room and restroom is durable, lowmaintenance porcelain. Griggs says this tile will stand up to heavy traffic and will look great for years to come. “Maintaining these floors is as simple as using hot water on a microfiber mop to clean up spills or a quick

vacuum in the traffic areas to get rid of dust and dirt.”

Not every office has a basketball room, but the Inspiration Office does and the flooring is a revolutionary new hardwood product that relies on advanced engineering to create the most dent- and ding-resistant hardwood floor ever made. “Defender by Downs offers ultimate beauty and superior protection, which means a truly easy-care hardwood floor,” Griggs says. “It’s great for any room in your home or office environment.”

Griggs has been in the flooring business in Columbia since 1975; through the years, he’s had one mission: build trust, one floor at a time.

“We are totally committed to doing just that,” Griggs says. “We do all types of residential and commercial flooring across Missouri and have supplied materials for projects throughout the United States. Some examples of our projects range from the IBM service center in Columbia to the Joe Machens BMW and Hyundai showrooms to the basketball court at Jefferson Junior High School. No matter if it’s a large or small project, we want to help you achieve the space you envision on a budget you can manage.”

Dave Griggs’ Flooring America 801 Business Loop 70 E. 573-303-3748 www.davegriggsflooringamerica.com

about the

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Downtown Appliance Home Center 1104 E. Broadway 573-874-3333 www.downtownappliance.com 44

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appliances

hen Downtown Appliance Home Center opened its doors in 1961, microwave ovens were the stuff of science fiction.

Appliances may have changed in the past half-century, but the Downtown Appliance commitment to service and quality has not. Anywhere there’s a kitchen in Columbia, including the Inspiration Office, there’s an opportunity to enhance it with state-of-the-art equipment from Downtown Appliance.

The Inspiration Office is such a fun and engaging space, it’s likely anyone who worked there would want to linger for lunch. And why not? The spacious break

room features plenty of room for seating, plus some terrific appliances.

Beauty is more than skin deep with the stainless steel Frigidaire microwave.

The 22-cubic-foot GE French-door refrigerator, also sporting a gleaming stainless steel exterior, is engineered to keep food fresher longer and features adjustable, spill-proof shelving, and a convenient bottom-drawer freezer with a built-in icemaker.

Downtown Appliance carries the most popular and respected appliance brands, including Viking, Bosch, SubZero and Wolf, and offers quick, convenient delivery and professional installation.

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any small firms see payroll as a big headache.

Landers, Weiss & Co. LLC can make that headache

go away.

“We’ve been providing payroll services for 34 years,” says firm partner Don Landers. “Small firms have trouble keeping up with ever-changing regulations, making tax payments on a timely basis and preparing the multitude of state and federal reporting forms. We alleviate all those problems and worries.”

Services at Landers, Weiss & Co. include all aspects of payroll. The firm processes clients’ payroll information — whether it is hourly, salary, piecework, commissions or reimbursements — and then calculates and tracks each employee’s wages, taxes and miscellaneous deductions. This information is reported on employees’ check stubs, received with traditional checks or provided with direct deposits. Along with ensuring employees get paid, the firm also takes care of remitting taxes to the appropriate governmental agencies, as well as remitting other required payments, such as garnishment withholdings and pension monies. Monthly, quarterly and annual reporting forms are prepared and filed on a timely basis.

“In short, once the employer has turned in the pay information, they can forget about payroll; everything will be taken care of for them,” Landers says.

Landers, Weiss & Co. also offers tax, accounting, auditing and valuation services, as well as management consulting, while its affiliated financial services firm of Landers, Weiss & Forsee LLC provides personalized financial planning, investment, insurance and retirement services.

LANDERS, WEISS & CO., LLC DON L. LANDERS CORALIE B. FORSEE GARRY D. WEISS KIMBERLY B. BOYER 573-449-0018 33 E. Broadway, Suite 190 Columbia MO 65203 www.lwandco.com gweiss@lwandco.com

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MORESOURCE 401 Vandiver Drive, Columbia, MO 65202 • 573-447-3355 Toll-free: 800-495-5678 • www.moresource-inc.com

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oresource saves businesses time, money and energy so businesses can spend their resources on what will make them grow: delivering goods and services to their customers.

“You obviously have a passion for your business, or you wouldn’t have started it in the first place,” says Moresource founder and president Kathryn “Kat” Cunningham. “Unfortunately, running your business doesn’t mean only doing the parts you are passionate about and have a talent for. Your business must satisfy certain essential and often time-consuming administrative tasks like insurance, HR, payroll and bookkeeping. Moresource takes care of all of this, so you can focus on what you do best.”

Services that Moresource offers include payroll, HR, benefits administration, all lines of insurance, bookkeeping and IT solutions.

The Moresource team is comprised of degreed,

licensed professionals, whose credentials and expertise span every need a business has in Moresource’s service areas.

“Each staff member has their own specializations,” Cunningham says, “and all staff is involved in continuing education in their field of expertise.”

Since founding Moresource in 1994, Cunningham has earned several recognitions, not only for her professional achievements — for example, she was named the Columbia Daily Tribune’s Business Woman of the Year 2010 — but also for her community service, which benefits such varied organizations as the Mid Missouri Affiliate of Komen for the Cure, the Greater Missouri Leadership Challenge for Women, and Big Brothers, Big Sisters Organization.

Credibility, Cunningham says, comes from great work.

“The majority of our business comes from referrals,” Cunningham says. “We think that speaks volumes.”

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ACCOUNTING PLUS, INC. 1520 Business Loop 70 W., Columbia, MO 65202 • 573-445-3805 Fax: 573-445-3907 • www.accountingplusinc.com • denise@accountingplusinc.com • tina@accountingplusinc.com

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ccounting Plus caters to the small-business owner with each and every service it provides.

Established in 1992, Accounting Plus provides accounting, payroll, income tax preparation, QuickBooks training and support, new business setup and consulting, and business advisory services. By providing not only traditional accounting services but also business advisory services such as startup consulting, loan support and advice on a variety of business management matters, Accounting Plus builds strong working relationships with its smallbusiness clients.

“We are a one-stop shop for all of the smallbusiness owner’s needs,” says Tina Marso, who is an equal owner with Denise Nelson. “While there are dozens of tax and accounting firms in Columbia, Accounting Plus captures its fair share of the business as the city’s only non-CPA accounting firm offering all accounting services except auditing.” In fact, as many accounting firms drop payroll from their service offering, Accounting Plus recently invested in state-

of-the-art payroll software to enable their employees to process payroll more efficiently and to provide their clients with an even better payroll product. While offering traditional paper paychecks and direct deposit, Accounting Plus can now also provide payroll clients with a unique web-based login where they can submit hours, change employee withholdings, review past payroll reports, and even reprint paystubs or W-2s on demand!

All new clients at Accounting Plus can take advantage of a free one-hour consultation. During this initial consultation, the friendly, professional staff members at Accounting Plus work to find out what the client needs and offer a variety of scalable services to meet those needs.

“While working with old and new clients, we strive to build relationships, realizing it’s not just about the numbers,” Nelson says. “The ultimate goal, however, is to educate and empower the clients to understand their financial reports so they, and our community, can succeed.”

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COLUMBIA EDP CENTER, INC. 1816 Vandiver Drive,

Columbia, MO 65205 • 573-474-8431 Fax: 573-474-9506 or 573-474-9507 • www.columbiaedp.com • info@columbiaedp.com

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he mission of Columbia EDP Center Inc. is to add value to its clients by providing the best products and services in the payroll industry, while practicing the highest standards of ethics and professionalism.

“You turn in the payroll information, and we do the rest!” says Jim Murphy, Columbia EDP Center’s chairman and CEO. Basic services include payroll preparation, making tax deposits, and filing quarterly returns, annual returns and W-2s. Other services include pay-as-you-go work comp insurance, time and attendance solutions, employee self-service, pay cards, applicant/employee background screening, human resource solutions, time-off accrual, garnishment/child support payments, and 401(k) deductions and reporting.

Columbia EDP Center partners with area experts to offer 401(k)s, IRAs, Section 125 Cafeteria Plans, insurance and other benefits.

A point of pride at Columbia EDP Center Inc. is its safeguarding of client information.

“Your payroll and payroll tax information are vital to your organization,” Murphy says. “Security and confidentiality of that information is among the most important aspects of your business.

It’s very important to us, too, and we have taken extensive steps to protect your information and give you peace of mind.”

Those steps include the development of a disaster recovery plan. All of the information

on the company’s servers is backed up on tape and stored off-site daily. The information is also transmitted 24 hours a day, seven days a week to servers at a backup facility. The backup facility has all of the equipment, supplies and communications necessary for continuing operations in the event of a disaster at the company’s primary location.

Another point of pride at Columbia EDP Center is its employees: Two have been with the company for more than 40 years, another two for more than 30, and another six for more than a decade. Specialties include one MBA accountant and two Certified Payroll Professionals.

In its early days, Columbia EDP Center brought data processing to Columbia and was behind the automation of many area banks and Boone County offices. The company got its start as a computer department at a local accounting firm in 1965; its focus shifted from data processing to payroll and payroll taxes in 1985.

Columbia EDP Center is a member of the Missouri, Jefferson City, Fulton, Moberly and Columbia chambers of commerce. It is also an accredited member of the Better Business Bureau with an A+ grade and is a member of the American Payroll Association and the Independent Payroll Providers Association.

Says Murphy: “We would appreciate the opportunity to discuss our payroll/tax services with you in the near future.”

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DIVIDENDS

executive style

Get In Step With Fall Footwear Even in today’s casual corporate climate, it is important to dress the part. Company dress codes may differ, but the overall goal is the same: employees working comfortably and looking professional in the workplace.

Generally, shoes designed for beachwear, hikes on the Katy Trail or a night on the town should not be worn at the office. Put your best foot forward with appropriate office footwear, and save your flip-flops, tennis shoes and sky-high heels for the weekend. by carolyn preul photos by l.g. patterson High heels should be 2 inches or shorter.

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Try a chunky 1-inch heel for all-day comfort.

4

Men’s ankle boots go well with dress slacks and suits.

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Peep toes are OK as long as your toenails are properly polished.

Show your creative side with shoes in a bright color.

2

Avoid a heel that makes noise on hard flooring. Your co-workers don’t want to hear you clip-clopping down the hallway.

Find a cushioned sole for added comfort.

3

Have fun with fabrics.

Leather, suede and wool work with a classic black skirt or pants.

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Look for leather or suede fabrics.

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Stick with neutral tones.

In any office environment your shoes need comfort, sophistication, style and class.

1. Black leather pumps with bow by Nine West, available at American Shoe ($89); 2. Chocolate brown peep-toe pumps by Alex Marie, available at Dillard’s ($69.99); 3. Electric blue suede wedge by Vince Camuto, available at Dillard’s ($98); 4. Ferrari red patent pumps by Michelle D, available at Dillard’s ($69.99); 5. Plush velvet pewter and tan flats by Clarks Indigo, available at Dryer’s ($100); 6. TOMS lilac and gray wool silk ballet flats, available at American Shoe ($79); 7. Black leather mid-cut plain toe boots by Ecco, available at American Shoe ($200); 8. Brown leather loafers by Clarks Unstructured, available at Dryer’s ($150); 9. Suede loafers by Zelli in chocolate brown, available at Binghams ($385); 10. Split-toe lace-up Oxford men’s dress shoes by Allen Edmonds, available at Binghams ($335) FALL 2012 I Inside Columbia’s CEO

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networking

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countdown to kickoff More than 200 fans of Big Brothers Big Sisters of Central Misssouri met in the Tiger Lounge at Faurot Field for the annual Countdown to Kickoff with Missouri Tigers Coach Gary Pinkel. Silent and live auction items, along with the help of generous sponsors, will provide funds to enable the organization to match young men and women with adult mentors. (Photos by Wally Pfeffer, mizzouwally@compuserve.com) 1. Lindsay and Paul Dorr with Frank and Michelle Baumstark 2. Tootie Burns, Brian and Erika Waller, and Richard Burns 3. Donna and John LaRocca 4. Rockie and Mike Alden 5. John and Karla DeSpain 6. Mary Jo Henry and Louise Martin 7. Matt Hale, Kim Presko, and Chris and Jackie Belcher 8. Jan and Wilson Beckett

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ADVERTISING INDEX Accounting Plus.................................................49 Beckett & Taylor Insurance..............................17 Boone County National Bank............................2 Cancer Research Center................................... 31 Central Trust & Investment Company......... 25 City of Columbia Water & Light.....................21 Coil Construction...............................................14 Columbia EDP.............................................. 50-51 Columbia Landcare............................................19 Command Security............................................19 Creative Surroundings...................................... 26 D&M Sound...........................................................3 Gary B. Robinson Jewelers............................... 31 Hawthorn Bank..................................................60 Inside Columbia’s CEO Inspiration Office........11 Inside Columbia’s CEO Subscriptions.............29 Inside Columbia’s Culinary Adventures.........54 Image Technologies.......................................... 59 Job Point’s Celebrity Apprentice...................29 Landers, Weiss & Co........................................47 Landmark Bank.....................................................7 Les Bourgeois Vineyards..................................14 Manor Metal Roofing....................................... 22

Join us...

• Privileges to some of the finest

food, wine and meeting and banquet facilities in the Midwest

MayeCreate........................................................56 Moresource.........................................................48 MU Health Care................................................... 4 Chef Daniel Pliska

Plaza Real Estate................................................45

General Manager John LaRocca

Smart Business Products.................................30

• Reciprocal club membership at

over 200 private clubs worldwide

• Enjoy premiere off-site catering

services

Speaking of Women’s Health.........................54 Steve Twitchell Productions............................ 52 Stifel Nicholaus...................................................21 Suit Yourself........................................................ 25 The Callaway Bank......................................13, 26 The King’s Daughters Holiday Festival..........46 The Trust Co....................................................... 52 UMB Bank............................................................. 9 University Club...................................................56

UNIVERSITY CLUB OF MU • UNIVERSITY CATERING & EVENT SERVICES 107 Donald W. Reynolds Alumni & Visitor Center, Columbia, MO 65211

www.uclub-mu.org • (573) 882-2586 www.catering.missouri.edu • (573) 882-2188 • (573) 882-9048 56

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Waddell & Reed.................................................30 Wilkerson & Reynolds......................................28 Williams Keepers.............................................. 22

PUBLISHER’S NOTE

Competition Will Be Good For Delta

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here’s a mantra often cited to $75 of similar flights to destinations in the business world that out of Kansas City and St. Louis, Delta competition makes a business seemed to have little regard for this stronger. That will no doubt covenant. I recently tried to book a flight be the case in the next few months for a meeting in Atlanta. Even though I when Delta Air Lines finally gets a was booking 90 days in advance, the fares little competition for passengers at the were astronomical when compared to Columbia Regional Airport. By the time direct flights to Atlanta from St. Louis. By this magazine hits the streets, there likely looking at the online seating chart, I knew will have been news about yet another that fewer than one-third of the available expansion of air service at seats on this flight had our local airport. been booked. My flight to For the last few Atlanta from Columbia years, Delta has had the would have cost me $848 Columbia market all for a round trip versus just to itself. Without the $137 flying round trip out presence of a competitor, of St. Louis.

Delta had the latitude to Why were the fares set airfares, giving little out of Columbia so much consideration to anything higher? I asked for an other than what the explanation from a city market would tolerate official and a Chamber of before travelers would Commerce staff member “The fare on choose more economical assigned to the airport the flight from options in Kansas City or task force. They were Columbia was St. Louis. Surprisingly, bamboozled and I could six times more this strategy has worked sense their growing expensive because just fine for Delta. For frustration with Delta Delta has no the most part, its flights and its nonsensical fare in and out of Columbia structure. The answer to competition in the have been near capacity, my rhetorical question was Columbia market.” regardless of the rate. obvious. The fare on the – Fred Parry Our community’s flight from Columbia was relationship with Delta six times more expensive has always been somewhat tenuous. On because Delta has no competition in a moment’s notice, they could cancel the Columbia market. They were simply a regularly scheduled departure or taking advantage of that fact. reduce outbound departures with no Thanks to the diligent work of Columbia consequences or penalties. City officials Mayor Bob McDavid and Columbia City have had no leverage with Delta, aware of Manager Mike Matthes, things are about to the possibility that the airline could one change for the better at Columbia Regional day completely pull the plug on regular Airport. The days of Delta’s monopolistic commercial air service in and out of pricing strategy in this market are nearly Columbia, leaving our city high and dry. over. Frontier Airlines announced in Delta’s independence has most often August that it will begin offering twicemanifested itself in its airfares. While weekly flight service to Orlando. More airport officials and previous airlines had importantly, this may be that first always tried to keep fares within $40 important step toward getting our foot in

the door with Frontier with the hope of getting daily service to the Denver hub.

Industry analysts claim that daily service to a hub in Chicago or Dallas would be well-supported by the population base served by Columbia Regional Airport. If American or United airlines pulls the trigger, as they are expected to do, this in itself will be a game changer, a tipping point for our local airport. When that happens, Delta will have to decide whether to abandon Columbia or offer more reasonable and competitive fares.

Last week, we learned that Delta was planning to terminate all of its employees at Columbia Regional Airport and outsource gate agents and baggage handling to a third party firm. This latest move only adds insult to injury to a relationship that is already suffering from neglect. While this move only affects a handful of employees, these folks are still our neighbors who will be forced out of work in an economy where jobs are scarce. I’m optimistic that perhaps these employees can be absorbed by another airline contemplating a move into this market.

The moral of the story is that competition is good. Mayor McDavid’s successful efforts to rebuild our local airport should be lauded by the entire community. It’s hard to believe that barely a year ago, Columbia faced the possibility of losing all commercial service at its airport. What a difference a year makes.

By the close of 2012, Columbia Regional could have as many as four different carriers serving its airport.

While this is an outstanding accomplishment, McDavid won’t have much time to celebrate. He now faces the gargantuan task of rebuilding and updating the airport to meet the needs of these new carriers and the expanded volume of passengers. Given McDavid’s track record, I’m sure he’s up for the task.

Columbia is blessed in many ways.

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CLOSING QUOTES

What Columbia’s Business People And Community Leaders Are Saying “The airlines seem to be rather indifferent to what your terminal looks like. They don’t care. For us, it’s our front door. So for a visitor from, oh, Gainesville, Florida, that’s what they’re seeing. Right now, they’re seeing a double-wide.”

“If we treat the SEC fans they way we’ve traditionally treated Kansas fans, it will be a significant black eye on our town. We have an opportunity to really put a spotlight on Mizzou, Columbia and the state of Missouri and it’s truly our opportunity to blow it. I hope we don’t blow it.”

— Mayor Robert McDavid explaining why renovations are necessary at Columbia Regional Airport

— Dave Griggs, outgoing chairman of Regional Economic Development Inc., at the CEO Roundtable

“So you have education and we have insurance and health care.

[Legendary University of Missouri economics professor] Walter Johnson used to talk about this as a largely recessionproof economy due to those three things, but they’ve been hit pretty hard.”

— Fred Parry, Inside Columbia’s CEO publisher at the CEO Roundtable

“I had Walter Johnson for Econ 51 and Walter Johnson was brilliant for Econ 51, but he was from an era of filterless Pall Malls.”

— State Sen. Kurt Schaefer at the CEO Roundtable

“I’m a true believer that you may not win every game, but you don’t want to lose a party.”

— Investor Andrew Ouart on his revival of the Tiger Town concept 58

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Inside Columbiaâ&#x20AC;&#x2122;s ceo OutFront Communications, LLC 47 E. Broadway Columbia, MO 65203

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