Cedar Valley Business Monthly - April 2013 by Waterloo-Cedar Falls Courier

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from the editor

April Fools? F

or a month that starts out with All Fools’ Day, April sure comes with its share of frowns. No doubt, tax season brings more than its share of long faces. This year is probably fraught with a bit more than the usual dose of angst since the rules are changing, rates are Jim Offner rising and mandated medical covis the Courier erage for employbusiness editor. Contact ees is entering the equation. him at Appropriately, jim.offner@ wcfcourier. this issue of the com. Cedar Valley Business Monthly takes a look at taxes and solicits insights from leaders of several accounting firms and tax consultants who

are in the trenches with business clients year after year, wading through an increasingly complex web of tax requirements. The burden one company carries may differ from the challenges another faces. The Cedar Valley is a veritable mosaic of commercial enterprises that offer a full range of products and services. There is a common bond, though, and it’s taxes. Everyone pays. How much often depends on the advice a company gets from a tax expert. Companies, like individual taxpayers, profit by effectively using deductions. That’s where concepts like hiring independent contractors, hiring family members, keeping meticulous records of business expenses and charitable giving can prove invaluable, according to tax experts. Another key is being proactive. Companies that wait to react

Tax time no joke for businesses

to the latest changes in tax law coming out of Washington, D.C., find themselves in a defensive posture. Tax strategies might be compared to chess: Anticipating the next move — or two moves after that — is paramount to winning the game. Nobody can predict what Congress will do with tax law. Talk of “tax reform” reeks of an all-toofamiliar platitudinous timbre. Businesses have learned from nasty experience not to listen to what politicians say, but to watch carefully what they do and how they vote. Tax experts talk of the benefits of real tax reform but sound a cautionary note about special interests who want to “protect their turf.” Lobbyists are headquartered in Washington for good reason. They monitor all activity on Capitol Hill and have their own paying interests to protect.

This year’s tax season marks a strange turn for businesses since the gears now are turning for full implementation of the Affordable Care Act, which requires every man, woman and child in the U.S. have health insurance in 2014. That means businesses face some tough choices. All companies employing 50 full-time workers will be required to provide health plans for all. Whether they choose to comply with the mandate or decline to cover workers and leave them to find coverage on their own — and accept a per-employee fine — will have a direct implication on their bottom lines. For all the talk of simplifying taxes, the opposite seems to be occurring. For the business community that means April 2013, and all subsequent Aprils in the foreseeable future, likely will become increasingly humorless.

contents

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Volume 7 No. 5

Cedar Valley Business Monthly is a free monthly publication direct-mailed to more than 5,300 area businesses. Contact us at (319) 291-1448 or P.O. Box 540, Waterloo, IA 50704.

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From the Cover Tax time is a season of worry for small-business owners in the Cedar Valley.

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CEDAR VALLEY BUSINESS EXPO Strictly Business the perfect place for businesses to show off their products, network. page 6 cvbusinessmonthly.com

Cedar Valley Business monthly

APRIL 2013

cover story

Tax time

Changes bring angst for local businesses

JIM OFFNER jim.offner@wcfcourier.com

pril means one thing for businesses as well as their customers: It’s tax time. It’s normally a frightening enough prospect, but this year brings changes that provide an extra jolt of apprehension for small businesses, according to tax preparers. Think ahead, they advise business owners. “One of the things we try to do is be proactive and work with clients and try to anticipate and plan for things, try to plan to avoid certain things from happening,” said Chad Abbas, a partner at Bergan Paulsen. The accounting firm based in Waterloo works with hundreds of small-business clients. Many businesses run into problems at tax time by not anticipating changes in the rules, Abbas said. This is a good year to plan ahead since changes are afoot in the tax system. Some changes already have taken place. Others may be coming soon. One example is tax credits on depreciation, Abbas said.

BRANDON POLLOCK Courier Staff Photographer

Kevin Hemmen, right, with Waterloo Warehousing, drops off tax documents with Chad Abbas at Bergan Paulsen in Waterloo.

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“Basically, for equipment purchases, for example, that need to be depreciated over their useful life, the purchases up to $500,000 you can elect to expense in the first year as opposed to depreciate over its useful life,” he said. Companies can take a 50 percent depreciation credit up front on new assets purchased during 2013. That credit was extended from 2011 and 2012.

Health care reform

The Affordable Care Act, which Congress passed and President Barack Obama signed into law in 2010, starts to hit businesses in 2013. Small businesses in particular have to be mindful of the changes it will bring. “There’s a lot of new stuff out there,” said Roger Neumann, a partner with McGladrey, a tax consultant firm in Waterloo. Some employers are entitled to a tax credit for providing insurance coverage to employees. And all employers with 50 or more fulltime workers must offer health insurance plans or pay a fine for each employee not covered. “I think that’s going to be a very costly part of a small business’s budget, and required coverage dictates that you at least look at your employee count and see what you can do to be fiscally responsible,” Neumann said. Abbas said it will take time for businesses to come to terms with new requirements. “There’s still guidance coming out in regards to that whole bill,” Abbas said. “They’re trying to determine what the guidance is, and we’re still trying to learn it.”

Tax reform

Tax reform also is a major topic of discussion. “The new tax rules are still being created,” Neumann said. “There’s a lot of discussion about changing the tax rules fairly completely, and we’ll probably sit fairly tight with where everybody is now until we see what they bring us in April.” Companies may want to consider filing as an S corporation that does not pay federal income tax. The corporation’s income or losses are divided among its shareholders and reported on their own individual returns. Most small businesses with anywhere between 10 and 60 shareholders are S corporations, Neucvbusinessmonthly.com

mann said. Another classification is C corporation, under which most major publicly held companies fall. Such firms have their own tax schedules and rates and pay their own income tax.

Frustrations can mount

Uncertainty about the tax system can frustrate small businesses, said Dave Rogers, a partner with Carney, Alexander, Marold & Co. LLP, a Waterloo accounting firm that handles small-business tax returns. “I think probably the biggest frustration was the uncertainty that existed last year,” he said. “That impacted a lot of planning for people. We weren’t able to give them definitive responses.” Some of those issues have been resolved, but only to a degree. “The majority of those resolutions are a short-term type of fix,” Rogers said. Probably the most dramatic change for 2014 will be the depreciation credits. “Bonus depreciation and accelerated depreciation will revert to much lower figures,” he said. “That has been kind of an annual issue in every tax bill revision that gets changed or extended. That is going to be a very drastic change as people plan between 2013 and 2014. For accelerated depreciation, it goes from $500,000 to $25,000.”

Implications

And while there is a lot of talk about tax reform, what it means is difficult to determine. “There are a lot of quote-unquote special interest groups and lobbyists looking to make sure their interests are protected,” Rogers said. “The home interest deduction was something that was actually talked about in the fall of last year. There’s probably a week where the conversation was pretty intense related to that, and it kind of disappeared. I would anticipate there were a couple of lobbies out there that were very active in protecting that.” Abbas said meaningful tax reform is going to be tough to achieve. “Believe it or not, even as tax preparers we’d like things to be simpler, as well,” Abbas said. “Whenever you hear about tax simplification, it’s kind of ironic that instead of things becoming simpler, they become more complex.”

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Cedar Valley Business monthly

APRIL 2013

strictly business

Businesses network at expo JIM OFFNER jim.offner@wcfcourier.com

eventy-one exhibitors are signed up to participate in one of the Cedar Valley’s largest business networking events, Strictly Business, from 4 to 7 p.m. April 2 at Park Place Events Centre in Cedar Falls. Bob Justis, vice president of community development with the Greater Cedar Valley Alliance & Chamber, will present a seminar on customer service from 3 to 3:45 p.m. The event is changing venues after two years at the Isle Casino Hotel Waterloo. Park Place had hosted the expo the previous three years. “I think it’s just to keep it fresh and move it around, a couple of years at each place,” said Grant Gubbrud, co-chairman of the event. Both sites were suitable for Strictly Business, Gubbrud said. “It’s been a great event for both venues,” he said. “We had about the same number of booths. I think it’s good to keep it fresh.” Last year’s event drew a “best-ever” crowd of 500 attendees, said Bette Wubbena, director of membership retention with the Alliance & Chamber. It will be the 22nd year for Strictly Business.

Photos by TIFFANY RUSHING Cedar Valley Business Monthly

Ashley Dulin, left, a Cedar Falls native, and her mother, Deb Dulin, center, of Cedar Falls, speak with Mary Alfrey of Cedar Valley Hospice at last year’s Strictly Business Expo at the Isle Casino Hotel Waterloo.

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The event originally was held over two days and two nights in the Five Sullivan Brothers Convention Center in downtown Waterloo. In the early days it was more of a public event, but the focus has sharpened to concentrate more on its value to the business community, organizers say. “It used to be like a two- or three-day event, and we quickly realized it was just too long,” said Natalie Kracht, director of occupational health at Allen Hospital, a longtime member of the task force that plans the event. “We get a good attendance. It’s a great networking event not only for attendees but for us to network with other vendors that are there.” The theme for this year’s event is “Make an Impression.” Vendors will have an opportunity to network before the event opens. “I think it’s fabulous just to meet the business owners face to face and see the different products that are available in the Cedar Valley,” Gubbrud said. Strictly Business allows vendors to showcase a variety of products and services that are available locally, Gubbrud said. “I think just looking at the variety of businesses that have a booth and all the options available locally is the primary value,” he said. The format is successful enough, he said, that there is a waiting list of vendors who want to participate. “The chamber continues to push it hard as an opportunity for all businesses, so filling the booths is not a problem,” he said.

Mason Fromm, right, of Signs & Designs talks with Bryan Burton of Aces at the Strictly Business Expo at the Isle Casino Hotel Waterloo in April 2012.

This is my Wartburg story.

What’s yours?

I’ve always been pretty crazy about sports of all kinds. By high school, my enthusiasm for sports outpaced my talent for playing them. Wartburg gave me the opportunity to work in student media. There were long hours and late nights, but we also shared a lot of laughs and good times in the studios and production rooms. Sports and communication together helped me build a career. Every day, I get to use my passion and abilities to tell someone’s story. Being able to provide recognition to someone who wouldn’t ordinarily get it makes my job rewarding. — Jesse Gavin ’06 1650 The Fan News/Sports Director, Sturgis Falls Broadcasting Cedar Falls, Iowa

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Cedar Valley Business monthly

March 2013

tech watch

Lots of places help you find apps P reviously we have talked about the emergence of tablets — iPads and Android alike — as the device people are putting in their backpacks and briefcases. With an abundance of apps for calendars, lists, notes, email, social media and Cherie cloud storage Dargan plus cameras for is associate pictures, video, professor of web conferenccommunications ing and scanning at Hawkeye documents, there Community is no shortage of College in tools. But with an Waterloo. estimated 600,000 Contact her at apps, how can 296-4000, ext. 1701, or you find informacherie.dargan@ tion about new hawkeyecollege. apps to avoid edu. downloading apps that won’t be worth your time?

There are several ways to find useful apps, including using a search engine and some websites. How do you decide which apps to download? Most likely you are asking your friends for suggestions and reading up on apps in online reviews. Now there is a search engine just for apps: quixey.com. Quixey works across platforms. It has been around since 2009 and was designed to make it easy to find apps by describing what it is you want to do (plan projects, for example). It is easy to use. Search results are highly visual, with options for a variety of platforms, including iPad, Android, Blackberry, Windows and Web. You can also target just iPad or Android apps, or display only free apps. Results include quick reviews by people who have used the app. Apps with such snippets display the familiar row of five stars indicating their rating. You can click on preview when selecting an app in the search results. This opens up a more detailed page that gives

“With an estimated 600,000 apps, how can you avoid downloading apps that won’t be worth your time?”

you additional information, screenshots and the opportunity to share your new discovery on Facebook or Twitter. Where else can you look for information about apps and how to use your tablet? There are a number of blogs and websites devoted to the iPad, such as ipadinsight. com, theipadguide.com and Appadvice.com. Appadvice has seven main sections. Looking for apps to manage finances? Need holiday-themed apps, apps for cooking, hobbies or apps aimed at zombie lovers? Applists has you covered. Appguides profiles the best apps in a variety of categories: business card scanners, for example. You get an overview of the category of apps (what

do they do? Why would you need them?) and a list of recommended apps as essential, notable and decent. Appcharts has lists of the top paid and free apps for iPhone and iPad. The top 20 paid iPad apps include Pages, Notability, iMovie, and Keynote — the apps for creating documents and presentations, taking notes and editing video. The rest are games. The top 20 free iPad apps include Netflix, podcasts, Skype, Weather Channel, Gmail, Calculator and YouTube. The rest are games. Appisodes are a series of short articles and videos featuring new apps. Finally, clicking on the circular icon takes you to the home page with articles, news and tips for users. There are more recognizable technology websites that also offer their own lists of recommended apps, as well as tips for using mobile technology. You can also sign up for weekly email from these websites. My favorites include PCMag.com, pcworld.com, and techrepublic.com.

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Cedar Valley Business monthly

APRIL 2013

nonprofits

April is volunteer month

Biz Book

Many reasons to like Ike

consider myself somewhat steeped in politics as well as American military history. I must confess, however, my knowledge of Ike Eisenhower, the 34th president of the United States, was slim. Michael Korda paints a complete picture of a boy from the middle, much like me. Ike was born in Texas and raised in Kansas, and he became a most unlikely leader. Ike’s impact on life in America is still felt today. Surprisingly, his lessons on leadership are subtle, yet truly significant. Ike’s path was seldom his path of choice and somewhat determined by others. His choice to attend the U.S. Naval Academy was undermined when his best friend got the nomination. West Point Military Academy was offered to him as an alternative. While at West Point, Ike was an average student. He had always been a gifted athlete and was hopeful to become part of West Point’s famed football team. A sports-ending injury once again sent him in another direction, one he wasn’t thrilled about. Ike was relegated to coaching the JV team. Can you imagine the leadership skills you develop as a coach, compared to those skills you develop as a running back? Quietly, Ike did what he was told and led people along the way.

stablished in 1974, National Volunteer Week has grown each year, drawing the support and of U.S. presidents, governors, mayors and other respected officials. It presents an opportunity for individuals, families, nonprofit organizations and govAnne Nass ernment entities is to celebrate the communications ordinary people coordinator at who accomplish the Volunteer extraordinary Center of things through Cedar Valley service. in Waterloo. Contact her at National Volun272-2087. The teer Week embodwebsite is www. ies the energy and vccv.org. power volunteers evoke as they lead by example — not only encouraging the people they help, but motivating others to serve as well. The Volunteer Center of Cedar Valley will host the Mayors’ Vol-

unteer and Top Teen Awards April 23. The Mayors’ Volunteer Awards honor the exemplary contributions of individuals ages 19 and older who dedicate their time and talent in Black Hawk County. The Mayors’ Top Teen Awards honor youths ages 13-18 attending a school in Black Hawk County. The Community Foundation of Northeast Iowa also selects one junior from each of the accredited high schools in Black Hawk County to receive the $1,000 Mother Moon service scholarship. The program is sponsored by the cities of Cedar Falls, Evansdale and Waterloo; the Greater Cedar Valley Chamber of Commerce Ambassadors; the Community Foundation of Northeast Iowa; the R.J. McElroy Trust; and the Volunteer Center of Cedar Valley. The VCCV will also lead a Global Youth Service Day on April 26 in a collaborative effort between the VCCV and Iowa State University Extension. To secure volunteer opportunities call 272-2087 or go to www. vccv.org.

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Fischels The United States hadn’t entered World War I as he graduated from Commercial West Point, yet he was anxious to show his stuff when we finally Group joined the war. Once again disappointment reigned for Ike when he was overlooked for a battle assignment. As a young lieutenant he was relegated to duties of his commanding officer. Ike became the power behind the throne, so to speak, yet this exercise and duty would eventually carry him to the top of his profession. His duties stateside varied from coaching Army football teams to setting up military camps for training newly commissioned officers, training tank warfare with a guy named Patton and handling the logistical nightmare of receiving all supply materials for new encampments.

because it’s about living

Jumping to ahead to WWII, Ike, although having never been in combat, had accumulated the experiences necessary to be named the Supreme Commander of the Allies. His skill helped to develop a constituency of leadership that made him one the greatest military leaders of one of the finest armies of all time, using all the skills developed from previous assignments that seemed mundane. When Ike was ushered into the White House, he brought along ideas germinating from his early years in the army. Lt. Eisenhower, in 1919, was part of a War Department convoy that traveled from the White House to San Francisco on the Lincoln Highway. It took the convoy 61 days to cross America. As a visionary, Ike could see the automobile was going to be the primary means of transportation. Ike’s impact on America’s interstate highway system clearly had an effect on not only the domestic automobile industry but the freedom of all Americans to travel and adventure across our lower 48 states. I truly enjoyed this book. Whether in life or in business, when things don’t necessarily go as planned, or you meet disappointment, act like Ike. Move forward; learn as much as you can. Your experiences and lessons will surely lead you, making your journey worthwhile.

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Ike: An American Hero Author: Michael Korda Pages: 800 10

APRIL 2013

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Glass ceiling Barriers still stifling women in executive suites Bloomberg News Rosalie Wolf, an investment adviser, asked the male-only partners of a Los Angeles money management firm, all in their early 40s or younger, why they didn’t have any female colleagues. “They said maybe they’d look for a woman intern,” said Wolf, managing partner of Botanica Capital Partners, which advises clients including institutional investors and foundations. Twenty-seven years after Wolf and other women first complained in 1986 about bumping against an invisible barrier — dubbed the glass ceiling — when they aimed for top jobs, just 21 are chief executive officers of companies in the Standard & Poor’s 500 Index. Now, a rash of books, from Facebook Chief Operating Officer Sheryl Sandberg to former State Department official Anne-Marie Slaughter, are appearing on the shelves, seeking to empower women. Wolf, the one-time treasurer at International Paper Co., quit in 1986, figuring she’d almost hit the ceiling, and subsequently worked at Bankers Trust in private equity and then at the Rockefeller Foundation as chief investment officer. “Women are fed up,” said Julie Daum, who heads executive recruiter Spencer Stuart’s search practice for corporate directors in North America. “They’ve worked hard and played by the rules for years, and that hasn’t gotten them anywhere near parity in leadership positions.” Work and parenting have both become more demanding in recent decades, increasing pressure on women who still do the bulk of child care, female executives say. Increasing numbers of women and men in managerial and professional jobs, including 32 percent of single mothers in this group, work 50 hours a week or more, according to the Center for American Progress. Everyone’s putting in more time at the office and then in the evenings and weekends, they’re expected to answer emails, which cvbusinessmonthly.com

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Facebook Chief Operating Officer Sheryl Sandberg at the World Economic Forum in Davos, Switzerland. Sandberg has written a book that seeks to help women in the business world pushing against the glass ceiling. interrupts family time, said Stephanie Coontz, who teaches family history at Evergreen State College in Olympia, Wash., and has written about men and women’s changing roles. At the same time, working mothers now put in more parenting hours than stay-at-home mothers did as late as 1965, “doing all sorts of enrichment activities,” she said. Men who grew up in recent decades playing sports with girls or were outperformed by them in school still don’t necessarily want to share power with women, said Adam Quinton, a former managing director at Bank of America Corp. and now an early-stage investor in startups. “Never underestimate the power of ingrained traditions and networks,” said Quinton, adding he has observed women failing to get the promotions or recognition

they deserve because they’re perceived as outsiders. “If men are on the inside and it’s men they’ve always seen being successful, that’s who they think they need alongside them.” Lucie Salhany, the former chairman of Fox Broadcasting Co. and a former director at Compaq Computer Corp. and subsequently Hewlett-Packard Co., has often been the sole woman in the room at business meetings. She said she thinks the main reason so few women have ascended to the Csuite and boardrooms is because a lot of men prefer other men they know or admire — no matter how many times they hear that diversity leads to better decision- making or that women could help them reach female customers. Early in her tenure as a director, Salhany was urged by another director to stop talking about

the need for more women on the board and in executive ranks, she said. Later at Hewlett-Packard, when she was a member of the board’s nominating committee, an outside recruiter gave the committee a binder divided into three sections — one listing CEOs who were potential director candidates, one of chief financial officers and one of women. Salhany said she questioned the segregation of women, including those who were CEOs. “While we cannot verify the accuracy of Ms. Salhany’s story, HP has a very strong history of diversity at both our senior executive and board levels,” said Howard Clabo, a Hewlett-Packard spokesman. The company’s current CEO, finance chief and three of its directors are women.

See CEILING, page 11

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APRIL 2013

CEILING From page 11 Women who have reached senior corporate ranks haven’t helped other women nearly enough, according to Pat Cook, who runs Cook & Co., a Bronxville, N.Y.-based executive search firm, and in 1981 became the first female senior vice president at Chemical Bank. When women get promoted and have a chance to assemble a new staff, “they’ll name a Marissa woman to be in charge of huMeyer man resources but rarely proYahoo Inc. mote women to key sales or CEO operating positions, because they’re nervous about not being seen as on the men’s team — or don’t want to take risks,” Cook said. At Yahoo Inc., CEO Marissa Mayer, who joined the company in July, has a female head of human resources and a female chief marketing officer. Other top executives she has recruited are male, including the chief operating officer, chief financial officer, executive vice president of platforms and senior vice president of emerging products. The company doesn’t comment on internal matters, said Sarah Gorman, a spokeswoman for Sunnyvale, Calif.-based Yahoo. No wonder top women see a market advising female colleagues how to succeed. Women comprise just 15 percent of senior executives at companies in the S&P 500 index and only 16 percent of corporate directors. They fill 51.4 percent of managerial and professional positions, yet still earn 23 percent less than men on average, according to U.S. Census data. Even Sandberg, who came to Facebook from Google, where she was a vice president, didn’t become a Facebook director until the world’s largest social-media company was criticized for not having any women on its board. Her book, “Lean In,” which was released March 11, tells women to get over their ambivalence about being ambitious, think big and take risks. Along with her book, Sandberg is starting “Lean In Circles” at sponsor

companies such as American Express Co. and Google, in which she hopes women will share their experiences and learn how to succeed. Slaughter, a professor at Princeton University who served as the first female director of policy planning at the U.S. State Department, is writing a book in which she advocates more flexible workplaces so women and men don’t have to choose between being leaders and parents. Barnard College President Debora Spar, in a book that will be published in September, urges women to quit trying to be perfect and understand they can show up at power breakfasts with baby spit on their lapels. These manifestos are hitting a nerve. “Sure women need to lean in and be resilient, but they’re going to tip over if the men in power don’t reach in and support them,” said Subha Barry, a consultant and the former head of diversity at Freddie Mac and, before that, at Merrill Lynch. “Women who manage to get to the top sometimes worry they’ll be branded if they pull other women along with them.” Some female executives aren’t supportive of policies that help the working parents on their staffs. Yahoo’s Mayer took off just two weeks from work when she had her first child in October. Last month, she told employees with work-at-home arrangements that they have to start coming to the office as of June 1. “We don’t discuss internal matters,” said Gorman. “This isn’t a broad industry view on working from home — this is what is right for Yahoo, right now.”

Women seeking to advance their careers while devoting time to families say they’re still searching for role models. Shyama Venkateswar, who is 46 and has two school-aged children, worries she’s setting a poor example for younger, unmarried women. A Ph.D. in political science who until a few weeks ago was head of research at the National Council for Research on Women, she’s been juggling 60 hours of work a week with childcare and volunteering at her kids’ schools. “Younger women I worked with would see me typing proposals and reports while talking to the school principal, a half-eaten salad on my desk. And then I’d send them e-mails at 1 a.m. because that’s the only time I have to think. I feel like I’m on skis all the time, leaning forward, and if I lean in any more, I’m going to fall down.” When she went to lunch recently with three girlfriends, also working moms, they were all too tired to eat, said Venkateswar, who lost her job in a restructuring and is looking for a new position. Until women gain a bigger share of leadership spots, they’ll have a hard time competing in business, Salhany said. “You’re different and you stand out because there are so few of you,” she said, adding that now, with companies consolidating, women are less likely to get promoted. Salhany has found a way around the problem for herself. She’s now consulting for a female entrepreneur — Paula Deen, the television cooking show host and author.

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Rethink Robotics designed the Baxter robot to work alongside real people. Its cartoon face changes expressions to warn people what it is doing.

Will robots create jobs or end them? The Washington Post At MIT, a management robot is learning to run a factory and give orders to artificial co-workers, and a BakeBot robot is reading recipes, whipping together butter, sugar and flour and putting the cookie mix in the oven. At the University of California at Berkeley, a robot can do laundry and then neatly fold T-shirts and towels. A wave of new robots, affordable and capable of accomplishing advanced human tasks, is being aimed at jobs that are high in the workforce hierarchy. The consequences of this leap in technology loom large for the American worker — and perhaps their managers, too. Back in the 1980s, when automated spraypainting and welding machines took hold in factories, some on the assembly line quickly discovered they had become obsolete. Today’s robots can do far more than their primitive, single-task ancestors. And there is a broad debate among economists, labor experts and companies over whether the trend will add good-paying jobs to the economy by helping firms run more efficiently or simply leave human workers out in the cold. “We’ve reached a tipping point in robotics,” said Daniela Rus, director of MIT’s Computer Science and Artificial Intelligence Laboratory. The possibility is to run a factory, she added, “all while you are sleepcvbusinessmonthly.com

ing.” U.S. firms have already begun deploying some of these newer robots. General Electric has developed spiderlike robots to climb and maintain tall wind turbines. Kiva Systems, a company bought by Amazon.com, has orange ottoman-shaped robots that sweep across warehouse floors, pull products off shelves and deliver them for packaging. Some hospitals have begun employing robots that can move room to room to dispense medicines to patients or deliver the advice of a doctor who is not on site. Many companies see automation as the key to cutting costs and staying competitive. Sales of industrial robots rose 38 percent between 2010 and 2012 and are poised to bring in record revenue this year, says industry analyst Dan Kara. “There will certainly be winners and losers,” said Ryan Calo, a professor of law at the University of Washington who focuses on robotics and public policy. “We’re talking about robots now because they are so versatile and affordable, and that will have profound affects on manufacturing, the entire supply chain and jobs.” Already on the market is Baxter, a robot developed by a former director of MIT’s lab.

See ROBOTS, page 27 Cedar Valley Business monthly

APRIL 2013

personal finance

Estate planning when it’s just the two of you

lanning for the future can take a different shape when children aren’t involved. Estate planning is important regardless of your parental status. A wellcrafted estate plan assigns decision makers, designates heirs and specifies who gets what after you and your Larry K. Fox partner pass away. is a private It allows couples to wealth create contingenadviser with cies for individual Ameriprise survivorship and Financial Inc. can minimize taxes. in Waterloo. Contact him at It also can help en234-7000. sure your mutual wishes are respected as health or cognitive abilities decline. ■ Assign decision makers. Couples without children can each execute a power of attorney naming their spouse to act on their behalf. Each can also designate an alternate attorney-in-fact in the event

both become unable to make decisions. This person may also be assigned executor of your estate. You might consider asking a trusted family member or friend (generally someone younger) or a professional in the estate planning business to take on these responsibilities. ■ A living will — also called an advance health care directive — is another important document both of you should have on file. It specifies your wishes in the event of an incapacitating illness and enables your assigned designee to make decisions about your health care. ■ Decide how your assets will be distributed. An attorney can help you draw up a will that specifies how and to whom your assets will be distributed when one or both of you pass away. Without a will in place, your estate will be handled according to the statutes of the state in which you reside. Often, when there are no children or designated heirs identified in a last will and testament, the surviving spouse is the primary heir, then other living relatives. If this is what

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you intend, you can make that clear in your will; if not, determine how you want to split your assets. Your estate plan can include strategies for giving financial gifts before or after your death. Under current federal tax law for 2013, an individual may gift up to $14,000 per person to as many people as he or she likes without gift tax consequences. You can also pay college tuition for anyone without being subject to gift taxes or using any of your annual or lifetime gift tax exclusions, as long as you pay the institution directly. ■ Create avenues for charitable giving. You may choose to give to causes you’re passionate about. There are ways to be generous in a tax-efficient way while you and your partner are both still living. You can donate to a donor-advised fund and receive tax benefits up front while suggesting how the funds should be invested and later distributed to your chosen nonprofit organization. With a charitable lead trust, the charity receives payments for a period of time after

which you or your heirs receive any remaining assets. A charitable remainder trust operates in the reverse, giving you or your heirs a stream of payments for a period of time (not exceeding 20 years) or for life, leaving any remaining amount to the selected charity. ■ Plan for the unexpected. Your estate plan should include adequate insurance coverage for unexpected events. Be sure to name the appropriate beneficiaries, including one another, on your respective policies. You may wish to purchase long-term-care insurance policies that help cover assisted living services or nursing home care. Consult the experts to create a comprehensive estate plan. A financial adviser can help you and your spouse or partner make plans for handling your estate. In conjunction with legal and tax advisers, you can take steps to ensure you both have sufficient means to live well after the other passes and that your mutual wishes are respected regarding the legacy you leave.

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finance education

Financial stress costs employers T he National Health Statistics group recently reported that health care costs in 2010 neared $2.6 trillion, more than 10 times the amount spent in 1980. Health care expenditures are expected to continue to grow faster than income for the foreseeable future. The increase in health care costs has transConnie lated to higher inMoyer surance premiums is Iowa branch for employees and manager for employers, a stagParamount Mortgage Co. gering increase of 119 percent from in Waterloo. Contact her at 1999 to 2008, ac486-2022 or cording to the Kaicmoyer@ ser Family Founparamount dation. During this mortgage. same time frame, com. employee pay rose just 29 percent. The rising cost of health care has caused employers to search for ways

to manage costs. The annual Top Five Total Rewards Survey conducted by Deloitte Consulting LLP cited health care cost as the top concern for 75 percent of employer respondents. To control costs, 70 percent of employers said they are reviewing corporate wellness programs to encourage healthy lifestyles, up from 59 percent in 2011. Some form of wellness initiative can be found at virtually any workplace in the Cedar Valley. A sample of benefits offered by local employers includes: ■ On-site Weight Watcher meetings. ■ Free and discounted memberships to weight loss programs such as Jenny Craig and NutriSystem. ■ On-site fitness centers. ■ Smoking cessation. ■ Reductions in insurance premiums based on health care measurements such as cholesterol, blood pressure, body mass index, etc. While these programs are beneficial, they don’t address a core reason why employees have underlying

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health issues: financial stress. The American Psychological Association recognizes financial stress as the leading cause of unhealthy behaviors like smoking and weight gain as well as alcohol and drug abuse. The Debt-Stress Connection by WebMD concluded that financial stress can cause illness as well as unhealthy behaviors, which result in more health care visits and claims. Financial stress was reported as the leading cause of illnesses such as migraines, back pain, depression, insomnia, ulcers, weight gain and heart attack. Many participants in corporate wellness initiatives either don’t have positive results or don’t have longlasting results because their financial stress hasn’t been addressed. Even the best-educated students don’t make smart decisions about managing their finances. They simply haven’t been taught how to manage their money, which leads to financial stress. Local employers do provide financial education to their employees, primarily in regards to the impor-

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tance of contributing to their 401(k) accounts as well as investment options within 401(k) accounts. Unfortunately, the financial education offered by employers doesn’t address many of the challenges facing our diverse workforce. Concerns as: ■ Establishing a budget and emergency savings fund. ■ How to build credit or improve their credit. ■ Managing debt. ■ Purchasing or selling a home. To an employee struggling to develop credit and manage a budget, planning for retirement isn’t the priority it should be. A well-designed financial literacy program needs to start with the basics and then proceed to more complex topics. As such, the best financial education program we can offer our employees touches on all the financial topics that our employees need to know about. This allows the employee to make the decision as to what would benefit them and help reduce their financial stress, which leads to reductions in the cost of health care.

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social savvy

Make a good first impression Y

ou never get a second chance to make a first impression. A first impression could make or break a deal, so a proper introduction is important. ■ Be prepared. Always do your homework and learn something about the compaMike Tynan ny and the person is vice you are meeting president, with. Preparation commercial also means being lender at able to adapt your Community National Bank approach to meet in Waterloo. their needs. You Contact him should develop a at 291-2000. variety of greetings and openers

and know when and how to use each. ■ Dress appropriately. Don’t dress for the job you have now, dress for the job you want to have. People seldom criticize you for over-dressing, but it is impossible to upgrade your appearance when you are under-dressed. ■ Be aware of body language. You could wear an expensive suit, but if you stand slumped with your head down you won’t give off a confident aura. ■ Make eye contact and smile. This will create an upbeat and positive environment. Maintaining eye contact a good portion of the time will demonstrate you are interested in the conversation. ■ Avoid starting the conversation with “Hello, how are you?” Greet them with something that

“Maintaining eye contact a good portion of the time will demonstrate you are interested in the conversation.” stimulates and encourages conversation. If you need something to get the dialogue started, scan the room for pictures of family, sports memorabilia and the like and strike up a conversation about that. This sort of an introduction places you in a social context, focusing less on the sale, and helps to start the process in a relaxed and comfortable tone. ■ Be a good listener. People like to talk, particularly about themselves. If you let them talk it’s pos-

sible you will get the answers you need. They also like to hear their own name, so use their name whenever possible. ■ Make the most of their time. You should pay attention to their body language for clues that they may be in a hurry. Focus on helping them quickly and efficiently. ■ Lastly, earn their trust. Don’t mislead. If you can’t answer the question, advise them you will find out the answer and get back to them. If you’re lucky enough to get the attention of a decision maker, you should make the most of it. Once you have their attention, what is said next is when the clock starts ticking. You want to ensure people remember you, as you may not get a second chance.

Best Buy is latest company to end telework Minneapolis Star Tribune Best Buy Co. has ended its program that allowed corporate employees to control their schedules and how often they showed up at the company’s Richfield, Minn., headquarters. Known as Results Only Work Environment, or ROWE, the company evaluated employees solely on performance. Employees worked when they wanted and wherever they wanted, just as long as they got the job done. Now most employees will work a traditional 40-hour week, though managers have discretion to accommodate some workers. ROWE, which the company launched in

2005, did not apply to Best Buy’s store employees, who make up the lion’s share of the retailer’s 168,000person global workforce. “It makes sense to consider not just what the results are but how the work gets done,” said Best Buy spokesman Matt Furman. “Bottom line, it’s ‘all hands on deck’ at Best Buy, and that means having employees in the office as much as possible to collaborate and connect on ways to improve our business.” Last year, 63 percent of companies allowed employees to work some hours from home, compared with 34 percent in 2005, according

to a study by the National Study of Employers, which was produced by the Society for Human Resource Management and the Families and Work Institute. In 2010, 54 percent of women 16 years and older participated in the labor force, with 71 percent of those women raising children, the study said. Erin Kelly, an associate professor at the University of Minnesota who has authored studies on ROWE, said companies are unfairly scapegoating flexible work programs for their subpar performances. “I’m concerned that these flexibility initiatives and telework initia-

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tives are getting blamed for what may be other problems those organizations are facing in the broader market,” Kelly said. In her research, Kelly said ROWE “reduced work-family conflicts. In the period we were studying employees in the ROWE departments, they were less likely to leave the company and less likely to be thinking about leaving the company.” But industry experts say Best Buy and Yahoo, each led by a new CEO who inherited companies hobbled by dysfunctional cultures, are trying to send a broader message to employees, male or female, that they mean business.

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Performance reviews actually dull your brain Jena McGregor Special To The Washington Post Among the hundreds of reasons to hate performance reviews, here’s another: They dull certain parts of our brains. Temporarily, at least. Research shows that when a person’s status is threatened — something that often happens when we’re told in a performance review how we need to improve — activity diminishes in certain regions of the brain. When that occurs, says David Rock, the author of “Your Brain at Work,” “people’s fields of view actually constrict, they can take in a narrower stream of data and there’s a restriction in creativity.” Not exactly a state of mind anyone wants to have. But we don’t need neuroscience to tell us why the annual performance review song-anddance is so universally reviled. We have our own reasons: the endless paperwork, the evaluation criteria so utterly unrelated to our jobs and the simplistic and quota-driven ratings used to label the performance of otherwise complex, educated people. What makes this annual rite of corporate kabuki so baffling is that those of us getting and giving reviews aren’t the only ones who hate

them. Corporate leaders aren’t big fans, either. In surveys of managers and human resource professionals, leadership advisory firm CEB found performance reviews get pretty bad reviews themselves. They’re wildly inaccurate, for one: CEB’s research finds that two-thirds of employees who receive the highest scores in a typical performance management system are not actually the organization’s highest performers. Go figure. The reviews are ineffective, too: Managers told CEB that conventional reviews generate only a 3 to 5 percent improvement in performance. Our collective distaste of the process worsened as the economy has stagnated, workplace dynamics have changed and a new generation of workers has emerged with different expectations. Making matters worse, raises are so paltry that the difference between getting a “4” or a “5” on your review might mean little more than taking the kids out for pizza every couple of weeks. Meanwhile, in workplaces that have moved from command-andcontrol hierarchies to ones that val-

ue teamwork and matrix-style management, performance edicts from on high are a terrible fit. “They’re designed as though they’re Russia in the ’60s,” management adviser Marcus Buckingham says. That’s especially the case for workers of a younger generation, who have come to expect immediate feedback in nearly every other aspect of their lives. So why then, pray tell, do we still do performance reviews? One answer: We always have. An “imperial rater” was apparently used as far back as the Wei Dynasty in third-century China to make performance evaluations of people at the imperial court. The Navy used performance ratings during the Civil War, says Kevin Murphy, a consultant. “These are large-scale, complex systems for making people unhappy,” he says. “They’re not a new problem.” By the time the 1980s rolled around and General Electric’s Jack Welch fueled the rank-and-yank craze, in which companies rank-ordered employees and culled the bottom 10 percent, it was hard to imagine a

world without them. Another reason is the notion that company lawyers require them. The paper trail many companies rely on to support personnel decisions frequently happens not as part of the regular review process but after a company has decided to manage someone out. “I have had countless situations that go like this: I get a phone call from a client saying an employee’s work is intolerable, and they need to take immediate action. But then I get the evaluation file and it says ‘meets expectations,’” says Garry Mathiason, chairman of the global employment law firm Littler Mendelson. CEB found a small but growing 3 percent of companies in 2012 had dropped traditional annual performance reviews. Studies have shown over and over again that “people simply think they perform better than other people,” says Mary Jenkins, an HR consultant who co-wrote the book “Abolishing Performance Appraisals.” “Unless you rate someone in the highest category, the conversation shifts away from feedback and development to justification.”

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Author: Think big and get rich DonnA Gehrke-White Sun Sentinel To become a millionaire you have to do more than save money. So says Steve Siebold of Boynton Beach, Fla., a self-made millionaire who interviewed 1,200 other millionaires and wrote a book about his findings, “How Rich People Think.” People who salt away millions tend to be both frugal and pragmatic — they’re always looking for ways to make money, Siebold said in an interview. “They take their skills and find a problem they can solve,” he said. While saving is important — there’s even a national movement called America Saves Week, which ended recently — Siebold said it is also important to adopt the mindset of millionaires and develop a passion in building wealth. “I’m all for saving money,” he said. But the average worker won’t reach a million dollars in net worth just by saving, Siebold said. Better, he said, to save and develop an entrepreneurial passion. Millionaires tends to be lifetime learners who are always looking for

ways to improve products or services and make money, he added. “The rich expect to earn more money every year and aren’t surprised as millions of dollars flood their bank accounts,” he said. “The rich have trained themselves to expect big things to happen, and as a result they are bold, aggressive and fearless in their pursuit of wealth.” Siebold, a former tennis player, said he first became a millionaire at age 31 by creating a service for large companies. He teaches sales people mental toughness to pursue business leads even when their sales pitch is rejected. He said he got the idea when he was teaching athletes to mentally prepare for competition — and then figured he’d make more money helping Fortune 500 companies train sales people. “That turned out to be right,” Siebold said. A Chicago-area chiropractor, Dr. Alok Trivedi, said he has been able to build wealth using Siebold’s advice in looking at problems he

“The rich have trained themselves to expect big things to happen, and as a result they are bold, aggressive and fearless in their pursuit of wealth.” can help solve. Trivedi said he has helped both patients and other chiropractors. “In looking for business opportunities, we look at what problems we can solve with our skill set,” Trivedi said. Over the years, Siebold has appeared on national television news shows, from CNN to Fox. Nancy Register, a director of America Saves Week, agrees with Siebold that its importance for people of any income level to acquire knowledge and skills so they can make more money. But it’s also important that people learn to regularly save and invest some of their earnings so they can build wealth, said Register, who is

with the nonprofit Consumer Federation of America. “It’s making your money work for you,” she said, adding, “You want to take advantage of the time value” and build net worth with years of dividends, compound interest and gains in stocks, bonds, real estate and other investments. Right now, about a third of Americans spend more than they earn and don’t even have savings to cover an emergency, the Consumer Federation has found. About half of Americans acknowledge they aren’t squirreling enough away for their retirement, the federation added. As a young man, Siebold said, he was broke. That’s why he studied how millionaires made money. He said he has had to take risks and suffer losses — he lost money during the housing bust, for example, when he bought real estate. But long-term, Siebold said thinking like a millionaire has paid off. “They’re real focused on making money,” he said.

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2120 Kimball Avenue | Waterloo 11th & Commerical | Waterloo 4th & Washington | Cedar Falls www.varsitycleaners.com 319.233.3571

Cedar Valley Business monthly

APRIL 2013

nonprofits

Good boards help to build strong ‘orgs’ W

e’ve seen it happen a thousand times. Jane Doe has worked hard to build up a professional presence in the community and has a reputation for being trustworthy and having integrity. Before too long, a nonprofit organization comes knocking, asking Jane to serve on the board of directors. Ali Parrish Jane is pleased to is development be asked to serve director at the the community, exCommunity cited about the opFoundation portunity to grow of Northeast professional Iowa. Contact her network and expeher at (319) 287-9106 or rience and eagerly aparrish@ accepts the posicfneia.org. tion. The only problem is that Jane doesn’t really know much about nonprofit organizations and what it means to serve on a board of directors. Nonprofit organizations are at the heart of our community. Faithful supporters and advocates often find themselves serving on the board of directors of their favorite charity but often don’t receive the proper training and education necessary to feel comfortable in their role. The Community Foundation of Northeast Iowa sent a series of surveys to local nonprofit organizations after the financial downturn of ’08 and ’09. Each time, results showed the first budget items on the chopping block during difficult financial times for nonprofit organizations were staff and board training. This was disconcerting news considering having well-trained staff and boards would arguably be especially necessary during particularly challenging fiscal times. New board members should take advantage of opportunities to receive the training they need to be 20

APRIL 2013

able to offer high-quality service to the nonprofit organization while on the board. This includes clearly understanding the mission of the organization as well as the purpose and responsibilities of board members. Some local board training sessions are offered at no charge, and various webinar opportunities can be found without too much difficulty. Another key to having a strong board is having a well-rounded board of directors. One of the responsibilities of nonprofit board members is to nominate new members to fill open positions. It’s important to think strategically when building or making changes to a board of directors. Before deciding whom to ask to serve on your board of directors, you need to think about the purpose of your board and what each member will need to accomplish to effectively serve the organization. Board members with various backgrounds are important to having a successful board. Consider building a matrix of several categories you want to consider when choosing new board members, like age, race, gender, occupation, circle of influence, giving ability and nonprofit experience. Then make sure you have many of the areas covered and fill in gaps as necessary. Some nonprofit organizations find it useful to have an application process to aid in board recruitment. Be sure to set clear expectations for your board members, including number of meetings, volunteer hoursa and giving requirements. Creating a job description is a simple way to accomplish this goal. Include a purpose statement, major roles and responsibilities, qualifications, the division of staff and board responsibilities and the benefits to the board member. Strong nonprofit organizations are essential when building a vibrant community, and strong boards equal strong “orgs.”

Cedar Valley Business monthly

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management

Effective leaders understand the power of ‘we’ Shortly after I began consulting, I was having a conversation with a client when they interrupted midsentence: “You know what I like about you?” they asked. “What’s that?” “You always talk about ‘we,’ like you’re a part of our team, not some Rick Brimeyer outsider simply is president coming in to tell us of Brimeyer what to do.” LLC, an As leaders, how independent we lead is just as management important to those consulting following as the defirm in Ames. Contact sired destination. him at www. Utilizing inclusive brimeyerllc. pronouns (we, us, com or by our) rather than excalling (515) clusive (you, I, your, 450-8855. mine) is a small but powerful mechanism for leaders. It sends a clear message that “we’re in this together.”

Obviously, when recognizing someone for a job well done, it’s more appropriate to use “you.” Likewise, when discussing a shortcoming on your part, it’s best to own it with “I” or “my.” Language is a telltale indicator for me when interviewing candidates. I keep a mental scorecard of the candidate’s use of “I” versus “we” when discussing prior accomplishments. Too many “I did” statements and the deeds themselves take a backseat to my conclusion that they are not a team player. Of course, words are just icing on the cake. The real proof is in how a leader leads. Perhaps there is no better indication of this than how decisions are made. Research conducted by the Center for Management and Organizational Effectiveness found that a leader’s decision-making style dramatically impacts whether employees sign up to follow: ■ When an authoritative style was used, the direction was simply ordered up. Data showed followers

were split almost 50-50 between those resisting the decision and those who complied. Only a sliver of employees were truly committed to making the decision successful. ■ When a persuasive style was used, leaders took the time to explain the decision. This resulted in equal thirds of followers classifying themselves as resistant, compliant and committed. ■ Finally, when a collaborative style was used, leaders gathered input from followers and involved them in the decision. This resulted in almost 80 percent of followers being committed to its success, with the remainder evenly split between compliant and resistant. Obviously, the situation often dictates which style is appropriate. A crisis may not allow the time necessary for a collaborative debate. Four factors should be considered when determining the level of participation for a given decision. ■ Quality: Who possesses adequate knowledge of the situation in order to make a good decision?

��

Assistant Vice President, Trust & Investment Services

If you don’t know enough by yourself, others must be involved. ■ Urgency: How time sensitive is the situation? As the need for urgency increases the opportunity for participation decreases. ■ Acceptance: How important is acceptance to successfully implementing the decision? How likely is acceptance to be increased through participation? ■ Development: Is there an opportunity to develop employees through delegation or their involvement with the decision? It serves a leader well to move as high on the participatory scale as the situation allows. The research shows that, even in a crisis, simply explaining your reasoning will convert employees from resistance to compliance and commitment. Developing employees to confidently make decisions is essential to relieving leaders of daily duties so they can focus on more strategic activities. It’s also vital to building a strong, committed team where “we” is the appropriate pronoun.

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Vice President, Trust & Investment Services

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Cedar Valley Business monthly

APRIL 2013

Alliance & Chamber

NEWSLETTER www.cedarvalleyalliance.com

Welcome NEW Investors/Members

B&K Lawncare

Helping Cedar Valley Businesses and Economy Grow Through these Areas of Action

2915 Clearview Dr. Cedar Falls, IA 50613 319-415-6934 Contact: Tyler Kunkle Category: Lawn Care/Landscape/ Snow Removal

Workforce & Talent Business Growth Advocacy Cedar Valley Regional Collaboration Cedar Valley Business Intelligence & Economic Performance Data

Den Herder Veterinary Hospital

Business Education Series

Wednesdays in May 7:30-9:30 a.m. on May 8, 15, 22, 29 Sunnyside Country Club ✥ May 8th – Road Map to 2014 Healthcare Reform: for large employers 51 plus employees. A panel of professionals from the fields of healthcare, insurance, accounting and human resources. ✥ May 15th – Road Map to 2014 Healthcare Reform for small employers 1-50 employees A panel of professionals from the fields of healthcare, insurance, accounting and human resources. ✥ May 22nd – Road Map to Communications: Social Media for Business Learn about the tools to use, how to communicate with young employees, and how to eliminate liability issues. ✥ May 29th – Road Map to Retirement: Successful Succession Planning Helpful insights into decision making and identifying a successor, about the process, and success stories from those who have made the transition. Cost is $25 per session (includes continental breakfast) Email bwubbena@cedarvalleyalliance.com Registration deadline is May 1. Premier Sponsor

Gold Sponsors

974 Home Plaza Waterloo, IA 50701 319-232-5292 Website: www.denherdervet.com Contact: Tom Taylor, DVM Category: Veterinarians

Learn how your business can benefit. Contact the Greater Cedar Valley Alliance & Chamber at 319-232-1156.

HyPro, Inc.

711 Enterprise Dr. Cedar Falls, IA 50613 319-277-7200 Contact: Mark Schildt Category: Manufacturers

Interactive Flow Studies

6704 Pheasant Ln. Waterloo, IA 50701 phone: 612-810-2727 Website: www.interactiveflows.com Contact: Murat Okcay Category: Education

Jiva Salon Spa

223 Main St. Cedar Falls, IA 50613 319-268-0772 Fax: 319-268-3736 Website: www.jivasalonspa.com Contact: Sadie Foertsch Category: Spas – Beauty & Day *The Alliance & Chamber has approximately 900 Investor/Members representing over 50,000 employees

...working to increase

economic vitality and

wealth

in the

Cedar Valley economic region.

Cedar Valley Fact Sheet

Now available at www.cedarvalleyalliance.com/publications.php Data and stats on Cedar Valley education, healthcare, amenities, wages and more. Great information for relocation and recruitment.

Multicultural Reception Thursday April 4, 2013, 4:30-7:30 p.m.

Allen College Student Center 1990 Heath Street, Waterloo This reception offers a unique opportunity to connect with community leaders and organizations that have a Diversity focus. By encouraging and creating an environment of connectivity and Inclusion we hope to trenghten the workforce and workplaces in the Cedar Valley.

Be part of something GREATER! Join the Greater Cedar Valley Alliance & Chamber! Learn how you can benefit! Contact Bette Wubbena at (319) 232-1156 or bwubbena@cedarvalleyalliance.com.

MAY 02 Business After Hours

Hilton Garden Inn & Conference Center, 7213 Nordic Dr., Cedar Falls 4:30 – 6:00 p.m.

APR 04 Multicultural Reception

MAY 10 Friday Forum

Allen College Student Center, 1990 Heath St., Waterloo 4:30 – 6:30 p.m.

Five Sullivan Brothers Convention Center, Downtown Waterloo 7:30 – 9:00 a.m.

APR 12 Friday Forum with Senator Bill Dix

Five Sullivan Brothers Convention Center, 205 W 4th St., Waterloo, IA 7:30 – 9:00 a.m.

APR 25 Power Networking

Allen College, Baskins Classroom 1990 Heath St., Waterloo 4:00 – 5:30 p.m. Cost $10. Reservation deadline is April 18. RSVP to bwubbena@cedarvalleyalliance.com The networking event is limited to 50 Alliance & Chamber representatives (limit 2 per business). An opportunity to build your prospect list with a minimum of 25 new business contacts in just 90 minutes.

Investor/Member Benefits • Unique Marketing Opportunities • Exclusive Networking Events • Access to Key Policy makers

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TUESDAY, APRIL 2, 2013

SPECIAL SEMINAR AT 3:15 PM:

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FOR MORE INFORMATION:

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RSVP on the events calendar at www.cedarvalleyalliance.com. For more information please contact: info@cedarvalleyalliance.com or call (319) 232-1156

Business After Hours: Thursday May 2, 2013 @ 4:30 – 6:00 p.m.

Hilton Garden Inn & Conference Center, 7213 Nordic Dr., Cedar Falls, IA, 50613 This informal event offers networking in a fun and relaxed atmosphere. Premier Sponsor

4-7 PM

PARK PLACE EVENT CENTER | CEDAR FALLS

Bob Justis, Vice President, Community Development Greater Cedar Valley Alliance & Chamber

Competitive ticket prices! Convenient parking! Great connections!

STRICTLY BUSINESS

Upcoming EVENTS

Gold Sponsor

For the experienced and beginners • Ask questions in a relaxed social setting • Share ideas and best practices Sample a variety of ethnic foods catered by Logan Avenue Hy-Vee To attend, please RSVP by calling 319-232-1156 or by email to rsvp@cedarvalleyalliance.com

ROBOTS From page 13 Baxter launched in September and is being used by plastics and metal manufacturing firms. With red plastic arms and a cartoon face, it can do the job of two or more workers, simultaneously unpacking pipe fittings from a conveyer belt while it weighs and places mirrors into boxes. When a human blocks its path, Baxter stops, its eyes widen, and then it courteously gets out of the way. The price tag: $22,000. The adoption of this technology is taking place even as many Americans, particularly those who are seeking blue-collar work, are struggling to find jobs that pay a middle-class wage. Many of them have seen little improvement in their lives even four years after the Great Recession ended. Andy McAfee, a fellow at MIT’s Sloan School of Management, notes companies are getting more productive without hiring more workers. Since the end of 2001, the nation’s gross domestic product has risen about 20 percent. Meanwhile, the number of hours worked has gone up by only 2.8

percent and the total number of U.S. jobs has increased just 1.9 percent. “Those latter two numbers are pretty close to zero. Is it so hard to believe that a realistic future combination of fast automation and relatively slow GDP growth could cause them to turn negative?” asked a recent blog post by McAfee, who co-wrote “Race Against the Machine,” a book about how Internet technology is altering labor markets. But the International Federation of Robotics said in a study last month that paid employment has increased in countries that are the biggest users of industrial robots. For all the jobs lost in manufacturing, others have to be created in distribution and services, the report says. Marlin Steel, a company in Baltimore, said it has increased its staff from 18 to 34 people in the past seven years because it began using robots to produce wire baskets it sells to carmakers and pharmaceutical firms. The new positions are administrators and sales and marketing staffers, as well as engineers at its Baltimore factory. “It’s a virtuous cycle. We are shipping great quality products

fast due to robots, and that in turn means more jobs,” said Drew Greenblatt, president of Marlin Steel. But the math on job losses and gains due to new technology is a fuzzy science and highly subjective, other companies say. Lear, a car parts maker near Detroit with nearly $15 billion in annual revenue, says it uses robots developed by Danish firm Universal Robotics to help screw together seats and put together electronic dashboards. The tasks require precision in a fast-moving environment. Humans could do the job better, but Lear officials say they have to use robots for the company to survive. “We use them to stay competitive and to keep core employment for everyone,” said Mel Stephens, a spokesman for Lear. “Does this lead to more jobs or job losses? I think you would be able to find numbers that support either thesis.” Baxter’s creator, Rethink Robotics, says there will always be a need for humans in manufacturing. The company designed Baxter to work alongside people. It’s cartoon face changes expressions to warn people what it is doing.

When it is interrupted, a confused look comes across its face. It appears sad when it is shut down. By using cameras no more sophisticated than those in smartphones and with technology used in video game consoles such as the Xbox Kinect, it can sense when people are nearby or in its way. And it can be reprogrammed easily by guiding its arms to new tasks and pushing a few buttons. Rethink counts Amazon.com founder Jeff Bezos as an investor, but both firms declined to comment on whether the online retailing giant will begin to use the robot. These days, Rethink chief executive Scott Eckert spends his time defending his industry against critics who decry robots as jobkillers. He said the firm is targeting 300,000 small businesses that can afford his product. Without his robots, Eckert said, many of these companies might simply look overseas for manufacturing. But now it has become cheaper to buy a factory robot, he said. “We want to bring U.S. manufacturing back and at least slow or stop the trend of people leaving the field,” he said.

TAX DIRECTORY

2013

Roth Tax & Accounting

Let these area professionals do the job right!

SEAN GRANT, CPA JUDY SCHINDEL, CPA 319.233.4000 FAX 319.291.8059 John T Roth, CPA jroth@cfu.net

cvbusinessmonthly.com

815 West First Street P.O. Box 218 Cedar Falls, IA 50613 319-277-0820 office

SEAN@GNSCPAS.COM JUDY@GNSCPAS.COM 3641 KIMBALL AVE. WATERLOO, IOWA 50702 JUDY@GNSCPAS.COM

GRANT & SCHINDEL CPAS

Michael Brannon, CPA Matt Klostermann, CPA 107 East 18th St Cedar Falls, IA 50613 319-553-0015 cedarfalls@goslingcpa.com

Cedar Valley Business monthly

APRIL 2013

David P. Wilson CCIM

Multi-Family Investment

202 Cedar Avenue, Waverly, IA • •• •• •• •• •• • •• • •

$3,799,950 99,000 58 apartment units ranging from 1-4 bedrooms $6.00/sf 73.37 AC NNN zoned Commercial & Ag 12,431 sf of total finished area 16 garage units Slit-level construction On-site leasing office & laundromat Sale includes leaseintopast 2,720 sf Extensive updates 3 years oral surgeon Multiple commercial buildings. In CURA & Lamar Enterprise Districts Lease with for two billboard signs along Hwy 218 Low vacancy 8.42% cap rate

Jack E. Jennings CCIM

Dustin W. Whitehead CCIM

Light Industrial

17075 Market Avenue, Holland, IA • $585,000 • One story pre-engineered metal/steel frame light industrial building • 20,400 SF built in 2002 and updated in 2007 • 1,520 SF of internal office area (7%) • 18,880 SF of unheated warehouse area (93%) • Storage mezzanine over the office area • 24’sidewalls, 2 docks and 1- 14’x14’overhead door • Located on the SW corner of Hwy 14 & Hwy 20 in the Grundy County Industrial Park