PB March 2012 by Prairie Business Magazine

March 2012

www.prairiebizmag.com

CONTENTS

Volume 13 No. 3

From the Editor’s Desk

Leadership: Leading effectively in uncertain times

Professional Spotlight

Matthew Mohr

Prairie News

Prairie People

Economic Development - Rural America economic development challenging, but not impossible

Money - Community banks are ready for business!

Technology - How broadband, technology can help fill tough jobs in our region

Cover Story: Filling tough jobs A primary draw for Sarah Bartels to the Sanford Aberdeen (S.D.) Medical Center was the chance to be part of the Sanford team and to experience an once-in-alifetime opportunity to be the Director of the Women’s Center.

Cover Story: Developing different brand of education building Technology and workforce needs seem to be deciding factors on what type of structures higher education facilities in the region will be constructing in the future.

28 34

Cover Story: Fixing roadways in the region All aspects of the transportation industry have a huge

Innovation impacting ag community community in at least three ways.

Western North Dakota: Transportation needs in western North Dakota

South Dakota: Raven acquisition fits growth plan

Red River Valley: Innovative technology ideas being developed

Viewpoint

Sales/Marketing: Sales and marketing for the season

SDSU research team developing solar energy efficiencies A research team is developing technology that will convert solar energy more efficiently at a low cost

impact on economic development in the region.

Innovation is impacting the agriculture business

By the Numbers

4 Prairie Business

March 2012

Canadian company opens in Bismarck, brings new technology into Bakken A Canadian company has opened an operation in Bismarck, N. D., and is bringing its own technology into the Bakken Oil Play.

Next Month In April, read our series of cover stories discussing a variety of themes in architecture and engineering. Learn more about energy efficient design with LEED practices regional firms are utilizing, as well as discussing Midwest Models – examples of homes and businesses designed for maximum efficiency.

On the air Join Prairie Business magazine Editor Alan Van Ormer and host Merrill Piepkorn On the Air – Thursday, March 15 at 3 p.m. on any Prairie Public radio station to hear more about the March cover stories. To listen to Prairie Public, visit www.prairiepublic.org/radio/hear-it-now.

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From the editor’s desk

For daily business news visit prairiebizmag.com

An SBA Award Winning Publication

Tweaking our needs in the region

Mike Jacobs, Publisher Alan Van Ormer, Editor Zach Ahrens, General Manager Tina Fetsch, Production Manager Beth Bohlman, Circulation Manager Jen Braaten, Marketing Manager Joe Greenwood, Multi-Media Consultant Kris Wolff, Layout Design, Ad Design

GENERAL MANAGER:

This month’s issue discusses several items that I’m sure are on the minds of companies that do business in our region.

or example, transportation needs are prevalent across North Dakota, South Dakota and western Minnesota. I think Francis Ziegler, director of the North Dakota Department of Transportation, sums it up best when he says “transportation is vitally important to supporting our country’s economic competitiveness and our state’s economic growth.” Then there is also a discussion about facilities in the higher education system in the three states. The way the university systems design and plan upcoming projects have changed. Technology and workforce needs seem to be deciding factors on what type of higher education structures will be constructed in the future. Our final cover story focuses on workforce needs, and in particular, 10 tough jobs (or in-demand jobs) that are hard to fill from research conducted by Praxis Strategy Group. Praxis used data compiled by Economic Modeling Specialists, Inc. (EMSI), a model that includes a combination of over 90 state and federal sources and includes estimates of independent contractors and others. Praxis looked at a number of metrics, including the number of openings in the region due to growth, retirements, and turnover; the number of openings compared to the total jobs in an occupation; and the regional concentration of a job here compared to the rest of the nation. The occupations are separated into five groups: construction, extraction, transportation and material moving; business, finance and office; heath care; science, mathematics, engineering and computer; and manufacturing occupations. There were some interesting statistics that came out of the research. For example, it is not surprising that the construction, resource extraction and transportation category was dominated by the oil boom. Roustabouts lead the way with 917 new jobs and 979 total openings in the past year. Other oil-related jobs such as service unit operators (781 openings), derrick operators (511), rotary drill operators (479), extraction helpers (335) and wellhead pumpers (295) all have openings above 40 percent of its 2010 employment level. The overall leader in total job openings across the region is heavy truck drivers, with 1,973 openings from 2010-2011. There is also growth being seen in science, math, engineering and computer occupations. Some of the most in-demand jobs include industrial engineers (91 openings), mechanical engineers (87), geological engineers (52), petroleum engineers (50) and geoscientists (45). The region’s manufacturing economy was hit hardest by the recent recession, but is now recovering. In demand production occupations include welders (677 openings), assemblers (604), supervisors (194), machinists (156), computer-controlled machine tool operators (107), and engine assemblers (88).

Zach Ahrens zahrens@prairiebizmag.com

701.780.1162

SALES:

Brad Boyd bboyd@prairiebizmag.com

800.641.0683 western ND/western SD

John Fetsch jfetsch@prairiebizmag.com

701.212.1026 eastern ND/MN/eastern SD

EDITOR: Alan Van Ormer avanormer@prairiebizmag.com Editorial Advisors:

Dwaine Chapel, Executive Director, South Dakota State University Innovation Campus, Brookings.; Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson, Communications Coordinator, Greater Fargo Moorhead EDC; Tonya Jo (T. J.) Hansen, Assistant Professor of Economics, Minnesota State University Moorhead; Dusty Johnson, Chief of Staff for South Dakota Gov. Dennis Daugaard’s office; Brekka Kramer, General Manager of Odney; Matthew Mohr, President/CEO, Dacotah Paper Company; Nancy Straw, President, West Central Initiative Prairie Business magazine is published monthly by the Grand Forks Herald and Forum Communications Company with offices at 375 2nd Avenue North, Grand Forks, ND 58203. Qualifying subscriptions are available free of charge. Back issue quantities are limited and subject to availability ($2/copy prepaid). The opinions of writers featured in Prairie Business are their own. Unsolicited manuscripts, photographs, artwork are encouraged but will not be returned without a self-addressed, stamped envelope.

Subscription requests: Free subscriptions are available online to qualified requestors at www.prairiebizmag.com.

Address corrections: Prairie Business magazine PO Box 6008 Grand Forks, ND 58206-6008 Beth Bohlman: bbohlman@prairiebizmag.com

Online: www.prairiebizmag.com 6 Prairie Business

March 2012

701.371.9578

Leadership

Leading

effectively

in uncertain times ealthcare is an exciting industry. We are setting sail onto the sea of healthcare reform. The challenging fog and waves amid the waters of the Affordable Care Act will be rough and full of unknowns. No matter what challenges are posed by the Affordable Care Act, change must occur. As leaders, we have to guide organizational change to meet the outlined requirements and provide outstanding lowcost, high-quality healthcare to the patients and communities we serve. Therein lies the port – a harbor with characteristics of high efficiency, low cost and great outcomes. The mission is guiding a ship to this port while maintaining relevance and outstanding service on the journey. As a leader of the Medcenter One ship, I know there will be a sea riddled with waves of lower reimbursement and more access demands for healthcare. In western and central North Dakota we face an economy that is accelerating at a pace we have never experienced. It is hard to know if this is the beginning of a prolonged economic boom or if the inevitable economic crash is closer than anticipated. Whatever the environment, strong leadership is vital to effectively sail a ship through turbulent waters. The most critical leadership quality necessary to navigate the seas successfully is a commitment to service and mission. Servant leadership must be focused on the communities and patients who trust us with their most important possession – their health and the health of the people they care about. A leadership commitment to service helps define clarity of mission and a path for success with an identifiable port on the journey. The impending regulatory and reimbursement issues may instill fear and anxiety for those sailing with you. To address those emotions and instill confidence, leaders again must turn to the identifiable sea port. Commitment to servant leadership along with a stringent focus on that port while using an effective navigation plan will be critical to success. Effectively defining and communicating the charted course with your shipmates and helping them to keep the focus will ensure a successful journey. A captain sailing a boat without a known port is not leading. Leaders must serve, guide, influence and motivate while understanding the strategic environment of the sea. Leading effectively in the uncertain times of healthcare reform is no easy task but one we are committed to in the best interest of our patients and the communities we serve. PB A native of Wishek, N. D., Dr. Craig Lambrecht is president/CEO of Medcenter One, an integrated health system based in Bismarck, N. D., and with locations in Dickinson, Jamestown, Mandan, Minot and Underwood. He also works in the Medcenter One Emergency and Trauma Center and serves in the North Dakota National Guard.

If you’re putting it all on the line, count us in. Your local Bremer business banker has your back, and the experience to help you through the ups and downs of growing a business. You can count on Bremer Bank for the strength and long-term stability to see you through. Talk to a Bremer banker near you.

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Professional Spotlight

Cancer foundation’s first

leader

anford has netted one of the nation’s premier non-profit leaders to become the inaugural president of the Edith Sanford Breast Cancer Foundation. “I would like to think my career path has prepared me to do what I am doing today,” states Kimberly Earle, a development, marketing and operations executive. On Jan. 9, Earle was hired to lead the organization dedicated to raising funds to advance breast cancer research and treatment. Formerly the Chief Operating Officer for Susan G. Komen for the Cure based in Dallas, Texas, Earle sought to return to her passion, the fight against breast cancer. She most recently served as the Chief Executive Officer for Mothers Against Drunk Driving (MADD) based in Irving, Texas. She received her bachelor’s degree in Spanish from the University of Alabama, her master’s degree in Journalism from the University of Texas in Austin, and her Juris Doctor from the University of California, Berkeley. Earle feels that what has helped in her career was the fact that

KIMBERLY EARLE inaugural president, Edith Sanford Breast Cancer Foundation

she has been able to try a variety of activities. “Everyone has obstacles and challenges in their career,” she states. “Challenges balance our lives and help us climb the ladder career wise.” She doesn’t hesitate to list her mother as an inspiration because of the challenging circumstances she grew up in. Earle’s mother went on to a career in government, despite the fact that her own mother had died of breast cancer while she was in high school. “My mother taught me to be self-sufficient and to really work hard to get where I’m at,” Earle says. “I feel like I have a lot to live up to with her.” As for younger women moving through their careers, Earle offers two pieces of advice. “First, whatever the job is you are doing, do it excellently. Second, follow your passion.” Earle notes that nonprofit is something she has a passion for. “It has afforded me to combine that passion with a career,” she states. “For women in particular, seeking out a mentor or someone to look up to can help guide you through the career process.” PB Alan Van Ormer - avanormer@prairiebizmag.com

Business Advice

Keeping employees ur region is facing a very challenging employment situation due to the high need for quality workers and the strong pay rates being offered to try to attract workers to the oil fields. Both of these contributing factors are probably a short term phenomenon which may go away with any reduction in well drilling. Deciding how to compete for employees in this environment is tricky. A business needs reliable, productive and qualified employees to function. Employees who are strictly working for the money rarely meet these three criteria. Regardless of what subjective surveys may show, employers must offer competitive wages. With the big wages being offered in the oil fields, trying to match

O MATTHEW D. MOHR CEO, Dacotah Paper Company mmohr@dacotahpaper.com

8 Prairie Business

March 2012

these levels for some will lead to business failure. After all, wages paid must be supported by revenues and trading margin. One business I have experience with had a “wage problem” for a number of years. The business experienced too much turn-over and I was continually told it was because wages were too low! Upon close examination, the wages were competitive with similar jobs and the work environment far superior. Once this was recognized and explained, the “wage problem” became much smaller. Every organization has its own philosophies and structures which attracts certain people. Over time the organization develops what is considered its own culture. Organization culture is a critical component for a business and the employees which are attracted and retained. Honesty, cleanliness, legal responsibility, friendliness, productivity expectations, hours of operations, location, wages, and benefits are all part of an organization’s culture. It is a great idea to assess your culture and provide prospective employees a good picture of your culture during the interview process. It can make or break a decision both in the initial hire and long-term continued employment.

Featured Speaker:

Attend the North Dakota Trade Office

Global Business Connections Conference “Where the global business community comes to you” Wednesday, April 11, 2012, 8AM-6PM • Ramada Plaza Suites, Fargo, ND Online registration available at www.ndto.com Global Business Connections Conference is the premier international business event in the region. Meet exporters and international business professionals, network with experts, and build relationships all while touring exhibits and attending keynote speeches and educational sessions designed to help you expand your international vision. Globalization is now – don’t be left behind.

Ben Stein Award winning and best-selling Actor, Author, Economist and Lawyer Presenting: Wednesday, April 11, 2012, 3-4PM

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Prairie News

Press releases and photos about business news and events in North Dakota, South Dakota and western Minnesota can be e-mailed to avanormer@prairiebizmag.com for consideration

EDCO ADDS JOBS IN SIOUX FALLS EDCO Group Inc., a national leader in health information management and records retrieval, is adding 30 new jobs at its Sioux Falls Technology Center. The Missouri-based company provides solutions and expertise in electronic document management, medical records scanning, records storage and records retrieval. In Sioux Falls, EDCO converts medical records into an electronic format, which allows their clients to track, retrieve and maintain records. In January, EDCO started hiring 30 new employees over the course of 2012. The company expects to hire for a variety of positions including specialists, managers and supervisors. EDCO Group Inc. is comprised of two divisions and more than 10 offices nationwide and in Canada. Chez Tschetter, EDCO’s Chief Information Officer (left), discusses the company’s Sioux Falls expansion with Dean Dzizic from the Sioux Falls Development Foundation.

CHEESE PLANT BEING BUILT IN BROOKINGS Chicago-based Bel Brands USA is planning to construct a third cheese plant in the United States in Brookings, S. D. The $100 million cheese plant could eventually employ as many as 400 workers. The plant is also expected to boost the dairy industry, requiring milk from an estimated 13,000 cows each day, the Brookings Register reported. The company has existing facilities in Wisconsin and Kentucky. Bel Brands USA is a subsidiary of Paris-based Fromageries Bel, which has plants in 22 countries.

NEW MANUFACTURING TRAINING BEING ADDED AT MITCHELL TECHNICAL INSTITUTE The South Dakota Board of Education has approved a new Welding and Manufacturing Technology program for Mitchell Technical Institute (MTI) in Mitchell, S. D. The new welding and manufacturing program is one of the components of Gov. Dennis Daugaard’s South Dakota WINS (Workforce Initiatives). The new program, brought to the board by state Director of Career and Technical Education Mark Wilson, proposes to begin training new welders and advanced manufacturing employees in the fall of 2012. The first class will have a capacity of 24 students, who can earn Associate of Applied Science degrees in welding or manufacturing technology within 18 months.

NOVEL DENTAL IMPLANT WINS NDSU’S INNOVATION CHALLENGE ‘12 Bison Micro-Venture, a team of 15 North Dakota State University students, won first place and $5,000 for their novel dental implant in the Innovation Challenge ‘12 competition on Jan. 26 in Fargo, N. D. The team is developing a porous ceramic dental implant for people who cannot use traditional titanium implants. Because the implant is made from a type of inexpensive ceramic that has bonelike properties, it has the potential to reduce rejection rates, help patients heal faster, be more cost-effective and change using titanium as the standard material in dental implants and other biomedical devices. The Innovation Challenge ’12 was a new component of the third annual Innovation Week held by NDSU and the NDSU Research and Technology Park.

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March 2012

TCF CALL CENTER OPENS IN SIOUX FALLS TCF Financial opened its largest call center in a newlypurchased and renovated 40,000 square foot building in Sioux Falls, S. D. on March 1. It is estimated that 200 employees will be employed in the facility; the majority hired from within the Sioux Falls area. The facility is scheduled to be fully occupied in July and will include the call center for basic operations associated with deposits and consumer loans, as well as an operations support group that will also work with deposits and consumers loans. In 2009, TCF National Bank opened a headquarters building in Sioux Falls. TCF Financial Corporation is located in Wayzata, Minn. There are more than 430 branches and 7,000 employees located in Minnesota, South Dakota, Illinois, Michigan, Colorado, Wisconsin, Indiana, and Arizona. There is also a bilingual call center in Chicago and a smaller call center operating in Michigan.

DSU is right for YOU! ACADEMIC EXCELLENCE: Engage in a dynamic academic community committed to innovation in teaching, learning and scholarship. With over 60 degree programs in areas like education, nursing, accounting, business and performing arts, education at DSU is a platform for success in your future. DSU is on the cutting edge of historical research and student service â&#x20AC;&#x201C; providing personalized attention for students and families.

ATHLETIC EXCELLENCE: Join the athletic hall of fame at DSU. Indoor and outdoor state of the art training facilities provide an opportunity for year-round conditioning. Our coaches are committed to holistic development of our athletes and the results are amazing. We offer athletic programs in the areas of: Football, Cross Country, Golf, Rodeo, Basketball, Baseball, Softball, Wrestling, Track and Field and Volleyball.

CULTURAL EXCELLENCE: In a global economy, successful professionals will be prepared for multicultural and social interactions.At DSU, we are proud to welcome students from over 23 states and 13 countries. Expand your horizons and deepen your knowledge of international commerce, literature, and culture at a rural campus on the edge of the beautiful North Dakota Badlands.

SOCIAL EXCELLENCE: DSU students are active in the community and around the world. Our vibrant campus life consists of over 59 organizations and clubs that are active in campus and volunteer projects. Whatever you are passionate about, you will find a place to serve to make your world a better place.

Our students make a difference in the world around them and so will you.

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Prairie News

Press releases and photos about business news and events in North Dakota, South Dakota and western Minnesota can be e-mailed to avanormer@prairiebizmag.com for consideration

SANFORD USD MEDICAL CENTER RECOGNIZED FOR HEART CARE Sanford USD Medical Center has received the American College of Cardiology Foundation’s NCDR ACTION Registry–GWTG Silver Performance Achievement Award for 2011 – one of only 94 hospitals nationwide to do so. The award recognizes Sanford USD Center’s commitment and success in implementing a higher standard of care for heart attack patients, and signifies that Sanford has reached an aggressive goal of treating these patients to standard levels of care as outlined by the American College of Cardiology/American Heart Association clinical guidelines and recommendations.

ALTRU HEALTH SYSTEM NAMED A BEST REGIONAL HOSPITAL Brian Johnson, CEO and Brandi Jackson, vice president - Human Resources

CHOICE FINANCIAL VOTED BEST PLACE TO WORK Choice Financial in Grand Forks was recently voted the Best Place to Work by the Greater Grand Forks Young Professionals and awarded their Grow Grand Award. Choice Financial was selected based on criteria including how the organization supports Greater Grand Forks Young Professionals in their professional development, how the company gives back to the community and employee benefits.

UNITED AIRLINES ADDING RAPID CITY-HOUSTON ROUTE Rapid City Regional Airport in Rapid City, S. D., announced that United Airlines will offer nonstop flights to Houston beginning June 7, bringing to eight the number of nonstop destinations served by Rapid City Regional Airport. The daily seasonal flight to Houston, operated as United Express by ExpressJet, will continue through Aug. 27, said Airport Executive Director Cameron Humphres. Houston’s George Bush Intercontinental Airport, the nation’s seventh busiest airport, offers nonstop service to hundreds of cities, including more Mexico destinations than any U.S. airport. The Houston airport is United’s largest hub.

RLK ANNOUNCES NEW OFFICE IN MINOT RLK Incorporated (RLK), an engineering firm specializing in civil, survey, traffic and site planning for the land development industry is opening an office in Minot, N. D. The office allows RLK to service a broader range of clients and their needs including site planning, traffic/road capacity, pipeline placement, commercial and retail expansions, residential and hospitality, in addition to current work with the oil and gas industry.

FARGO INTERACTIVE AGENCY LAUNCHES NEW WEBSITE With simplicity and education in mind, Onsharp has launched its new website, Onsharp.com. The redesigned site highlights the services and tools that Onsharp can bring to businesses. With the new website, Onsharp.com provides online strategy solutions as well as offers educational tools to explain how different online marketing plans and tactics can benefit specific needs. With the new site visitors will be able to learn the difference between SEO, SEM, Social Media and much more. 12 Prairie Business

March 2012

Altru Health System is among the nation’s Best Regional Hospitals 20122-2012, according to U. S. News & World Report, publisher of Best Hospitals. U. S. News annually publishes the Best Hospitals rankings. In January 2012, its editors recognized 237 hospitals outside major metropolitan areas, including Altru, as Best Regional Hospitals. U. S. News annually evaluates nearly 5,000 hospitals in 16 different medical specialties. Hard numbers stand behind its analysis in most specialties – death rates, patient safety, procedure volume, and other objective data. Physicians’ responses to a national survey, in which specialists are asked to name hospitals they consider best in their specialty for the toughest cases, are factored in.

SIX PAULSEN MARKETING CLIENTS WIN AWARDS AT REGION III NAMA COMPETITION Paulsen Marketing received 19 total recognitions at the Region III Best of NAMA Awards in Minneapolis, Minn. The awardwinning work represented six Paulsen Marketing clients. Paulsen team members received seven First Place Awards and 12 Merit Awards. Paulsen clients represented with First Place Awards include Kubota Tractor Corporation, South Dakota Corn Utilization Council, South Dakota Soybean Research and Promotion Council and Wheat Growers. Merit awards included work for AgStar Financial Services, Kubota Tractor Corporation, South Dakota Corn Utilization Council, Wheat Growers and the Soil Science Society of America. There were 235 entries in NAMA’s Region III competition that includes North Dakota, South Dakota, Minnesota and Iowa. The National Agri-Marketing Association’s Best of NAMA awards are the agribusiness industry’s leading awards program.

WHITE HOUSE RECOGNIZING ND MANUFACTURING COMPANY A North Dakota manufacturing company is being recognized for its success in rural America. Dickinson-based SolarBee, Inc. was selected with other manufacturers from around the country to take part in an event at the White House. SBI manufactures machines to improve water quality through solar energy. Co-founder and president Joel Bleth participated in the event at the White House. In a news release, Bleth says SolarBee could not have been created without a loan guarantee from the U.S. Department of Agriculture's Rural Development.

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Prairie People

JON BECKER

Please e-mail photos and press release announcements of hirings, promotions, awards and distinctions received by business leaders in North Dakota, South Dakota and western Minnesota to avanormer@prairiebizmag.com for consideration.

RABO AGRIFINANCE ADDS TO NORTH CENTRAL TEAM

GHERING JOINS MEDCENTER ONE MENTAL HEALTH

Rabo AgriFinance has appointed Jon Becker as relationship manager for northwest Minnesota and North Dakota. He is being based in the new Fargo, N. D. office that opened in February. Rabo AgriFinance provides capital and financial solutions to the nation’s agricultural producers and agribusinesses. Becker will work with agriculture producers and processors in the region to help them grow and succeed by providing agriculture real estate loans, operating lines of credit, equipment loans, and crop insurance.

Dr. Karli Ghering, clinical psychologist, recently joined Medcenter One Mental Health. As a clinical psychologist, Dr. Ghering provides counseling and therapy for patients with mental illnesses including addictive, psychiatric and emotional conditions. Dr. Ghering completed a psychology internship at Prairie View Inc. in Newton, Kan., and she earned her doctorate in clinical psychology from Idaho State University, Pocatello. She is a native of Sterling, N.D.

STANDEN LEADS LBG NORTH DAKOTA OFFICE Joseph Standen has been named manager of the new North Dakota office of Leggette, Brashears & Graham, Inc. (LBG), a professional groundwater and environmental engineering services firm. LBG’s new office in Burlington will offer full environmental capabilities to the oil and gas, and pipeline industry, providing state-of-the-art expertise in the areas of environmental permitting, JOSEPH spill remediation, contaminated site STANDEN investigations, spill plan preparation, due diligence investigations and other environmental consulting activities related to oil and gas production. LBG has been engaged in significant project work related to pipeline releases for existing clients with major operations in the North Dakota region. LBG has also spearheaded a 10-year clean-up program in Mandan, N. D. that involves remediation of three million gallons of diesel fuel from sites throughout the city’s downtown business district. An LBG Senior Associate, Standen has been with LBG for more than 22 years and has been the Pennsylvania office manager for the past seven years. During that time, he has provided services to a wide range of clients, including residential and commercial developers, regional gasoline retailers, industrial facilities, municipalities, terminal operators and the pipeline industry. He has extensive experience in contaminated site investigations, soil and groundwater remediation, water supply development, and due diligence investigations. Leggette, Brashears & Graham, Inc. was the first consulting firm in the United States to specialize in groundwater geology. Over the last 60 years the firm has completed projects in 48 states and 19 foreign countries. The firm has expertise in almost every aspect of water supply, contamination and mine dewatering hydrogeology. Headquartered in Shelton, Conn., LBG has 20 regional offices throughout the U.S.

14 Prairie Business

March 2012

DR. KARLI GHERING

SDSU INNOVATION CAMPUS HIRES NEW DIRECTOR Dwaine Chapel has signed a 12month contract to become CEO and executive director of the South Dakota State University Growth Partnership, Ltd. and the SDSU Innovation Campus, effective March 1. Chapel served as executive director of the Madison-based Lake Area Improvement Corporation since 2006, where he worked closely with state DWAINE legislators, the Governor’s Office of CHAPEL Economic Development and members of South Dakota’s congressional delegation on economic development and growth in the area. He is an SDSU graduate, who also earned a master’s degree in industrial management from the university, and lives in Brookings. Opened in 2008, the Innovation Campus became South Dakota’s first research park. It is the product of the SDSU Growth Partnership and provides an environment that fosters collaboration and partnerships between the university, business, industry and government. The facilities include workspace and support services for students, faculty, scientists, entrepreneurs, capital providers, managers and leaders to conduct research and commercialize economic activity. The Innovation Campus includes a multi-tenant 28,000-squarefoot facility that serves as an incubator for new companies and entrepreneurs. The campus also includes a state-of-the-art Seed Technology Lab, a separate 28,000-square-foot facility that opened in August 2010 to bring under one roof the research efforts of the South Dakota Crop Improvement Association, the SDSU Seed Testing Lab, the Seed Certification Service, the Crop Quality Lab and molecular biology/genomics and biocontainment laboratories.

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Economic Development

Rural America economic development challenging, but not impossible Strategies are certainly different in rural Minnesota than in the metropolitan areas with their various attractions that serve as a catalyst for growth.

conomic development in rural America is challenging, but not impossible. Flourishing in rural settings require increased exposure, use of resources and community cooperation. The Marshall area is located in the southwest corner of Minnesota. Our success in economic development is a result of thinking bigger by spreading our vision of the future beyond Marshall. We formed a partnership to send a message about what the area has to offer. We no longer solely focus on the City of Marshall, but look to advance the entire area within Lyon County. We have formalized partnerships and receive financial backing from the City of Marshall, Lyon County, and the Marshall Area Chamber of Commerce. These partnerships allow us to be more efficient with our resources as we work and think about strategies together. Within this partnership, every community in Lyon County has a seat at the table. We meet each month and share success stories. Furthermore, we work together to find ways to promote the area. The partnership is called Discover Southwest Minnesota Partnership. A key component of the success is a newly launched website at discoversouthwestmn.com. The website highlights each community by listing properties for sale, business

Cal Brink finished a 28 year career with the Schwan Food Company where he held positions from starting as a route truck salesman, to president and virtually every position in between. Throughout that career he had the opportunity to live in many communities in the Midwest as well as travel all across the nation. Those travels always left him wondering how and why some communities seem to be so much more developed and growing. That fascination led him to working in the industry that provides guidance and work that determines how and if communities will grow. For the last three years Brink has worked in southwest Minnesota around the Marshall area and is now doing work for the Chamber, City and County as they prepare for a future that provides growth for all the communities within Lyon County. He can be reached at calb@marshall-mn.org.

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March 2012

WILLISTON STATE COLLEGE & THE WILLISTON STATE COLLEGE FOUNDATION Celebrating 50 years of excellence. directories, statistics and more. The website gives companies with potential of moving into the area the ability to look at all communities and statistics they need to make their decision all in one convenient spot. All of our partners understand when any of our communities grow, we all grow. People and companies end up spending money within the entire county so why not work together and enhance what we have to offer. The bottom line is success requires working with neighboring communities and moving beyond competing with each other. Looking out for the good of everyone to find ways to bring companies to rural areas is in everyone’s best interest. Recent research indicates the working age population is starting to migrate to rural America. The reasons for this include more safety, slower paced life style and cheaper cost of living. This is great news for all of us rural economic developers! Now the big question is, which rural area will they move to? I anticipate the rural communities that take a big picture approach to their areas will be the most successful. Unfortunately in today’s world just staying the same as we have always been will more than likely mean going backwards. Growth is vital to the existence of rural America and our job really becomes finding ways to provide that stimulus for growth. PB

The city of Williston and WSC are in a period of unprecedented change. Our campus has expanded, but our mission remains the same. Experience the growth during our 50th anniversary celebration this summer on the WSC campus. FRIDAY, JUNE 29, 2012 Athletic Banquet SATURDAY, JUNE 30, 2012 Open House, Class Mixers, Faculty Coffee, BBQ, Dance SUNDAY, JULY 1, 2012 President’s Brunch and Awards WSC alumni are invited to attend the 50th anniversary celebration. Some events are open to the public. For information and prices contact the WSC Foundation at 701.572.9275. Like us on Facebook and watch for updates: www.facebook.com/willistonstatecollegefoundation

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Money

Community banks are ready for business! Since the recession began in 2007, the media has done an incredible job of focusing our attention on the devastation to our national economy through the pain and misery inflicted on many sectors of our country that lost jobs, businesses, and homes.

uring the past 23 years, there have been hundreds of media reports that allege or specifically charge—— “small business may lack adequate access to credit”, as reasons why business growth is so slow. Prior to the downturn, economic times were very good, and the entire business community was bursting with opportunities, and community banks were quite successful and profitable. As is normal, when times are good, businesses and their owners sometimes tend to get complacent, banks sometimes have a tendency to deviate from or wink at existing lending policies; and as a result, tend to fund more marginal loans and lower quality borrowers than they should. In conjunction with the downturn, bank regulators brought new lending guidance, new regulations and extremely thorough exams. Their purpose in doing so was to make sure the banking industry remained a strong foundation for our communities, our businesses and our local economies. Our community bankers did just that——they addressed their adherence to existing loan policies that might have previously been ignored, where possible they addressed the adequacy of true collateral and its market value, added credit enhancements in a number of ways, and in many cases, they addressed their problem loans by increasing their reserves or recognizing losses. In many cases, bank owners have added capital to strengthen the capability and loan capacity of our community banks. But, most of all, because of the problems that came to light nationally due to the economic downturn, I believe our banking community has slightly modified or simply enforced the policies that generally were in place before. The State of North Dakota has a tremendous asset called the Bank of North Dakota (BND) whose primary function is to assist the banking community in serving the business finance needs in the state. They have created and administer a number of programs that facilitate community banks accessing business funding that is offered

18 Prairie Business

March 2012

specifically for the credit capital needs of the business community. These programs of the BND enable a community bank to serve the needs of a larger business that cannot readily be handled by many community banks on their own. When the business community decides that they are ready to return to the business borrowing arena, they are well-advised to go the extra mile to make it easier for themselves and their bank lender. Take time in advance of your request for financing to think through your project, gather and organize your information and help both yourself and your lender by developing a business plan / comprehensive finance application. This process will help focus your thoughts, organize your information, display your historic statements and lay out your expansion plans, as well as set forth your projections and assumptions. This will show what you expect the business expansion to generate for revenues and expenses, your planned capital expenditures and the credit capital needed to support the project. Approaching your finance needs in such a manner will make you a better businessperson and a better loan candidate because you will be better prepared for what actually happens after the expansion. This thought process and your business plan are key elements in making you a successful credit candidate for your bank of choice. In closing, there is huge liquidity in the banking community. Banks are hungry for quality credit applications and they are ready to fund borrowers with strong credit and good loan applications for quality projects. There has been and continues to be plenty of money to lend to credit-worthy businesses, small and large, if and when those owners become comfortable enough about their business prospects to take the plunge. This is the classic “chicken or egg” proposition inherent in any economic recovery. PB Wayne Bradley is a CPA at Bradley Business Advisors, LLC, in Fargo, N. D. He can be reached at Wbradley@bbadvisors.net.

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Technology

How broadband, technology can help fill tough jobs in our region

or decades price and complexity kept all but the professionals from benefitting. Today, nearly every cell phone user has a camera, video camera, and more computing power on a hand-held device than what was on a desktop a decade ago. Similarly businesses today can harness more accessible broadband and technology applications (apps) to employ some of those tough-to-fill positions in our region, namely the sales, general and operations managers, and engineering positions identified by Prairie Business Magazine. The old video conferencing cost of entrance was prohibitive for many companies to implement for teleworkers. Today a hosted phone system makes entrance and connections easy and affordable. Some of the unique benefits include:

ONLINE CHAT: Employees can live anywhere on your network – in the same building or 500 miles away and use live chat to talk to co-workers or communicate with prospects and customers through your web site.

At first new technology can be downright untouchable. Think back to cameras and computers.

VIDEO CONFERENCING: Employee, customer and vendor collaboration has never been easier. Simply host a video conference (each party just needs a web cam) and you can interact (and read body language) just as you would in a face-to-face meeting, saving time and money.

PHONE SYSTEM: Features like call forwarding, call routing, and call recording can happen for any employee anywhere. Plus, that distant employee is no more

North Dakota’s coal industry creates jobs and No ke keeps the cost of living low. That’s the power of coal. Affordable power supply keeps the cost of living low.

Coal provides 27,000 jobs in the state.

Each year, coal provides $3 billion in total business activity.

The coal industry pays $90 million in state taxes each year.

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20 Prairie Business

March 2012

than an extension away. These apps have come a long way from the days when only the biggest companies could use the technology. Today, affordable monthly fees and a simple click on a link can put you in the same virtual room as that hard-to-hire employee. The key to making these apps work is the high-speed connection. North Dakota, South Dakota and Minnesota are among the most wired states in the nation, thanks to the independent telephone and cable companies. Weâ&#x20AC;&#x2122;re also the states with the lowest unemployment rates, making us prime for embracing technology as a workforce recruitment tool. PB

Mark Shlanta leads SDN Communications as its chief executive officer, a position he has held since 2000. He worked as SDNâ&#x20AC;&#x2122;s network planning and operations director for two years before becoming CEO. Prior to joining SDN, Shlanta held various positions with Contel, GTE, Ameritech Cellular and Consolidated Communications. Shlanta is a South Dakota native. He holds degrees in mechanical engineering and engineering management from the University of Missouri - Rolla. He is a past chairman of Forward Sioux Falls, chairman of the Education Telecommunications Board for South Dakota Public Broadcasting, and has served as president of the Sioux Falls Development Foundation. He can be reached at mark.shlanta@sdncommunications.com. prairiebizmag.com

COVER STORY: WORKFORCE

‘

A primary draw for Sarah Bartels to the Sanford Aberdeen (SD) Medical center was the chance to be part of the Sanford team and to experience an once-in-a-lifetime opportunity to be the director of the Women’s Center.

have always admired Sanford’s genuine caring for their employees and their dedication to a flawless patient experience,” she says. “I feel that I will stay in Aberdeen due to the continued opportunity for growth and leadership within the Sanford system. Aberdeen is a larger South Dakota community, but yet still has that small town feel. It is a wonderful place to raise children and the community continues to grow.” Filling the RN position in the region is considered one of the tougher tasks, according to recent research conducted by Praxis Strategy Group, located in Grand Forks and Fargo, N. D. To determine some of the toughest jobs to fill in the region in the past year Praxis used data compiled by Economic Modeling Specialists, Inc. (EMSI), a model that includes a combination of over 90 state and federal sources and includes estimates of independent contractors and others. Praxis looked at a number of metrics, including the number of openings in the region due to growth, retirements, and turnover; the number of openings compared to the total jobs in an occupation; and the regional concentration of a job here compared to the rest of the nation. The occupations are separated into five groups: construction, extraction, transportation and material moving; business, finance and office; heath care; science, mathematics, engineering and computer; and manufacturing occupations. The overall leader in total job openings across the region is heavy truck drivers, with 1,973 openings from 2010-2011. Over the past decade the five metropolitan areas - Bismarck, Grand Forks, Fargo, Sioux Falls and Rapid City - added 8,000 jobs in professional, technical, and scientific services, nearly 18,000 in health care, and 8,000 in finance, with each sector paying roughly $50,000 per year.

SANFORD FINDING AND KEEPING RNS

Sarah Bartels, director of Women's Center, Sanford Aberdeen Medical Center, checks Angela Post of Aberdeen. (Photo courtesy of Dawn Sahli Photography)

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March 2012

Bartels is one of those health care professionals that have been added to the workforce mix. And now she has the opportunity to help find some of those RNs to fill needs at the Sanford Aberdeen Medical Center. “We have been very happy with our applicants we have interviewed for our positions,” she says. “There are a wide variety of nurses interested in our positions ranging from experienced nurses to quality recent nursing grads as well.” She adds that Sanford, as well as other health care systems, are not without challenges. “Nursing in general, always has a need,” she says. Diane Berkland, chief nursing executive for the Medical Center in Sioux Falls, sees that firs hand. “It kind of depends on the local needs and demands,” she states. “Across the region there have been pockets where it is more difficult to

recruit. A lot of it is the desire of where nurses are looking to locate.” Berkland is considered Sanford’s voice for nursing across the organization. There are more than 6,500 RNs across North Dakota, South Dakota and Minnesota. In the Sioux Falls Medical Center there are more than 1,200 RNs. The Sioux Falls Medical Center shows a 1 percent vacancy rate or less. Across the region, the vacancy rate is 3.6 percent. Berkland notes that is it is not really hard to fill RN positions in Sioux Falls. “We have over 20 years of professionalizing nursing practice here at the Medical Center,” she says, adding Sanford has been designated as a MAGNET nursing organization by the American Nurses Credentialing Center. “MAGNET organizations are attractor organizations. We are bringing in the best and the brightest talent. We have worked hard to be that type of organization.” Another successful recruiting technique has been the annual Sanford Day, where young men and women from the region walk into the facility and find out more about Sanford. “We work hard on it,” Berkland says. “Students love to come to Sanford Day.” Sanford focuses on at least four items to keep RNs in the system. One is providing meaningful recognition. Second, the nursing staff is continuously invited to the table to provide input. Third, there are adequate numbers of qualified staff to help the newer staff. Finally, Sanford continues its investment in information technology. “As the new folks come in they are interested in Rob Rebel, president of Knife River Central and Eastern North Dakota Division, oversees a technology and simplifying their work,” Berkland states. division that employs 75 truck drivers. (Photo courtesy of Knife River) “We have made a huge investment at the point of service (bed side.)” Berkland concludes that nursing is really the Rebel’s divisions employ about 75 truck drivers between central and backbone of health care. “It is essential to the culture and establishing eastern North Dakota. Currently, in central North Dakota, Rebel is the culture of the organization,” she states. looking for 10 redi-mix truck drivers and 10 aggregate truck drivers. “It is not unusual for some turnover,” he states. “But because of the FINDING TRUCK DRIVERS IN THE REGION lure of higher hours and pay, we are seeing a higher turnover.” Rob Rebel, president of Knife River Central and Eastern North Knife River has been very active and has engaged the Human Dakota Division, doesn’t hesitate in saying that finding truck drivers is Resources Department on the corporate level in finding truck drivers. a difficult task. “Most everything you read about the oil boom in This includes job fairs, as well as actively recruiting in the region. “Most western North Dakota involves trucks and truck traffic,” he states. recently we sent out notifications to all employees to find out if they are “There are thousands of trucks operating there. We’ve lost drivers to interested in becoming a certified truck driver,” Rebel says. “If they go that area and there is only so much capacity of qualified truck drivers out and get the appropriate permits, we will give them time with our within the state. There used to be a pool to draw from. Because of the drivers, train them and provide the vehicle for formal CDL training to demand the pool is pretty close to empty.” get the license.” Rebel adds that truck drivers are an “absolutely necessary part” of Rebel adds the company is trying to do everything it can to entice what Knife River does. employees to stay. This includes such things as competitive benefits and Rebel is in charge of aggregate, ready mix, concrete construction and providing a personal family environment. trucking divisions for both eastern and central North Dakota. He “They are working for a good, safe company that cares about them,” started in the industry in 1988 working 11 years for Fisher Sand and Rebel states. Gravel Company in Dickinson, N. D. In 2000, he worked for Pioneer As for what needs to be done to find truck drivers, Rebel notes “if Construction and then in 2003 joined Knife River when Pioneer was there is a magic bullet out there, I don’t know if we’ve found it yet.” acquired. The one advantage Rebel believes Knife River has is in being a well Knife River has operations in North Dakota, South Dakota, established company. “We’re a national company where there are always Minnesota, California, Alaska, Hawaii, Washington, Oregon, Idaho, opportunities to move within the company in the 13 states we work in.” Montana, Wyoming, Texas and Iowa. PB Alan Van Ormer - avanormer@prairiebizmag.com prairiebizmag.com

COVER STORY: WORKFORCE VIEWPOINT

Addressing While not immune to the recession, over the past two years the region covered by Prairie Business magazine has seen both higher job growth and lower unemployment than the rest of the nation. rowth coupled with low unemployment means more strain on the region’s workforce, making it tougher for employers to find the workers they need. To determine some of the toughest jobs to fill in the region in the past year we used data compiled by Economic Modeling Specialists, Inc. (EMSI), a model that includes a combination of more than 90 state and federal sources and includes estimates of independent contractors and others. We looked at a number of metrics, including the number of openings in the region due to growth, retirements, and turnover; the number of openings compared to the total jobs in an occupation; and the regional concentration of a job here compared to the rest of the nation. The occupations are separated into five groups: construction, extraction, transportation and material moving; business, finance and office; heath care; science, mathematics, engineering and computer; and manufacturing occupations. The construction, resource extraction and transportation category is not surprisingly dominated by the ongoing energy boom in western North Dakota. Roustabouts lead the way with 917 new jobs and 979 total openings in the past year. The overall leader in total job openings across the region is heavy truck drivers, with 1,973 openings from 2010-2011. The need is most acute in oil country, but the entire region has a 70 percent higher concentration of heavy truck drivers than the national average. The national media has credited the oil boom for the economic growth. The economic benefits of the energy boom have spread across the region, but there is more to the story. While the entire region trailed the nation in job growth until 2007, the region’s five largest metropolitan areas – Bismarck, Grand Forks, Fargo, Sioux Falls and Rapid City – were well ahead of the nation through the entire decade. Now containing 39 percent of the regional jobs, these five metropolitan areas beat the nation in job growth over the decade by 10 points, 15.8 to 5.8 percent. The Prairie Business region has also become a growth center for science, math, engineering and computer occupations, adding nearly 18 percent to its technical workforce in the past decade, compared to just 3.6 percent growth in the rest of the nation. The growth rate in the five metropolitan areas was more than 27 percent. Some of the most indemand jobs include industrial engineers (91 openings), mechanical engineers (87), geological engineers (52), petroleum engineers (50) and geoscientists (45). A new program for petroleum engineers at the University of North Dakota School of Engineering and Mines may help address the shortages in these fields. The region’s manufacturing economy was hit hardest by the recent recession, but was booming in the six years prior and is now recovering. In demand production occupations include welders (677 openings),

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March 2012

shortages As vice president for Research at Praxis Strategy Group, Mark Schill focuses on economic development strategy, economic analysis and demographic trends, and technology issues. With 11 years at Praxis Strategy Group, Schill has experience in strategic planning, economic analysis, business planning, demographic research, marketing strategy, web site development, Internet community management, and event planning.

assemblers (604), supervisors (194), machinists (156), computercontrolled machine tool operators (107), and engine assemblers (88). Across the region, 52 of the 152 counties hold an above average number of production jobs. Hot spots in the region include Jerauld, Yankton and Brookings counties in South Dakota; Roseau, Nobles and Kandiyohi in Minnesota; and Sargent and Richland in North Dakota. PB Read more on Mark Schill's Viewpoint at www.prairiebizmag.com.

COVER STORY: HIGER EDUCATION

Developing different brand of education building Technology and workforce needs seem to be deciding factors on what type of structures higher education facilities in the region will be constructing in the future.

aura Glatt, vice chancellor for administrative affairs for the North Dakota University System, notes the higher education system is preparing students to meet workforce needs. “The tools we use today are more high tech and structured around a team-oriented work environment,” she states. “The structures of buildings facilitate that kind of learning environment.” Dr. Jack Warner, executive director and CEO of the South Dakota Board of Regents, says one of the prime considerations in upgrading academic facilities is that modern classrooms need to be smart classrooms. “When we are renovating a science building or classroom building, we are generally replacing old projection equipment, internet sources and upgrading the modern classroom so that it has technology equipment that helps students learn more efficiently. We like to stay up to date on the technical side. It is an ongoing challenge because of rapid rate of change of technology.” The South Dakota Board of Regents provides leadership and sets policies for the programs and services delivered through its six universities and two special schools. The Board asks each campus to document their needs and then develop a 10-year facilities plan that outlines those needs. Twenty percent of the student tuition is placed in the Higher Education Facilities Fund to pay for projects that could include physical infrastructure, renovation, expansion of academic teaching space or research space. Each is also ranked in priority. Top priorities include infrastructure upgrades, older space renovations and new instructional and research space. The funding for the projects comes from several sources including the HEFF Fund, which has allocated $105 million for the current fiscal year for projects. The total allocation is $218 million, meaning that the remaining funds must be raised by the institution for a particular project. “In order for a project to go forward, the institution needs to be

26 Prairie Business

March 2012

Dr. Jack Warner, executive director and CEO of the South Dakota Board of Regents.

able to bond to begin the project,” Warner says. The bonding market and interest rates are another change in the way South Dakota must do business for facilities. “We have been able to accelerate the last two 10-year plans because of the interest rates being charged and the availability of the contractors,” Warner states. In addition to academic or research facilities, campuses are also building residence halls, student unions, wellness centers, and other structures that students want to see on the campuses. The main change for South Dakota is that 10-12 years ago, the higher education system did not have much sponsored research in the system. It has grown from an estimated $33 million to more than $130 million in that period. “With that growth in research, it requires more square footage for lab space and research facilities,” Warner says. “That is another feature of the building projects. It is very hard for a lab to be used for both research and instruction because those are competing priorities.” In North Dakota, the university system engages in a comprehensive campus master planning process every two years, as part of the biennial budget process. It is an institutional-driven process. The campuses identify building needs to support strategic plans goals and objectives and from there emerges building projects. Board policy determines the criteria and evaluation process for reviewing each of those projects. Based on the outcome of the

evaluation, plus onsite visit to discuss the projects, the Chancellor recommends a single list of system wide projects to the Board. The Board determines the final list of prioritized projects submitted for executive and legislative consideration. Projects are funded from multiple sources, including state, grant and contract, private, and auxiliary enterprise revenues, the latter to upgrade residence halls, foodservice, etc. Due to North Dakota’s strong economy, the State of North Dakota, through state fund appropriations, has provided $133 million for campus facility projects during the past four biennia (20052007 to 2011-2013). Glatt says our facility needs change based on the changing student demographics and expectations. “We must have tools in place in instructional and other campus facilities that allow us to prepare students for today’s work environment.” PB Alan Van Ormer avanormer@prairiebizmag.com

prairiebizmag.com

COVER STORY: TRANSPORTATION

Fixing roadways in the region All aspects of the transportation industry have a huge impact on economic development in the region. rancis Ziegler, director of the North Dakota Department of Transportation, says transportation is vitally important to supporting our country’s economic competitiveness and our state’s economic growth. “It is also crucial to moving freight, connecting manufacturers to retailers, farmers to markets, shippers to railroads, airports, seaports; and motorists to jobs, schools, and stores,” he says. Wayne Hurley, planning director for West Central Initiative in Fergus Falls, Minn., notes that transportation is critical to any industry. “It might force businesses to relocate out of an area if you don’t have good transportation.” Funding happens to be one of the major issues to the region’s transportation system. “There is always more need than there is money,” Hurley says. “We end up in situations where we have to make hard choices when

Darin Bergquist, secretary for South Dakota Department of Transportation

28 Prairie Business

March 2012

prioritizing which projects get done.” As the planning director for West Central Initiative, Hurley works closely with the Minnesota Department of Transportation on planning for counties and cities in a 9-county area in west central Minnesota. Hurley is seeing a movement toward complete streets, which means considering other implications to accommodate all users of the facility. For example, Alexandria, Minn., is doing a study of Broadway Avenue (Highways 27 and 29) that could include a bicycle facility, improved pedestrian facility and accommodate cars. In Breckenridge, Minn., a new hospital was built along Highway 75. The DOT is looking at a pedestrian and bicycle connection to the rest of the community. “Safety has always been a high priority for transportation projects,” Hurley explains, adding that there has been significant safety features with the design of a roundabout at an intersection. “Some of the studies show 90 percent reduction in fatal and serious injury crashes.” The State Transportation Improvement Program (STIP) lists all projects that receive federal dollars. For Fiscal Year 2012, District 4 (the 9-county region around Fergus Falls) total project funding is more than $78 million. This doesn’t include any of the local funding those counties or cities spend on their projects. Just recently, the South Dakota Transportation Commission approved adding $980,000 for FY-2012 and another $610,000 in FY2013 in enhancement projects to the five-year STIP. The projects being funded include: a shared-use path along Interstate 90 in Oacoma; a shared-use path in the Henze Addition to the Flynn Nature Trail near Milbank; a railroad depot restoration along U.S. Highway 83 in Ft. Pierre; a streetscape along Main Street in Hill City; a living snow fence – statewide; and relocating a historic bridge located near Geddes to a bike path near Lake Mitchell. “Our needs in South Dakota have not changed in recent years and we continue to focus on preserving our existing highway system,” says Darin Bergquist, secretary for the South Dakota Department of Transportation. Legislative studies are showing that long-term the state will not be able to fund deteriorating bridge and pavement conditions at the current federal funding levels. Currently, the state directs $200 million each year to the state highway fund from gas tax and motor vehicle excise tax. “Our approach to the use of state funds has always focused first and foremost on ensuring adequate state funds are available to

match all federal funds,” Bergquist says. “The remainder is then used for operational, maintenance, equipment and building needs.” Bergquist notes the state relies on its nationally-recognized pavements management system that evaluates existing pavement and provides recommendations of which roads need immediate treatment and what type of treatment. “We follow it closely. The recommendations have been beneficial to determine the most costeffective strategy for preserving existing pavements.” Bergquist says South Dakota has been focused on preservationtype projects that improve the condition of pavement without having to do large reconstruction and adding additional miles to the system. Main projects in 2012 include the completion of a south connector around Watertown (a two-phase project that is estimated to cost $13.5 million), as well as a segment of Highway 100 near Sioux Falls (a portion of an overall project estimated to cost $200 million), and reconstruction of Highway 44 in Rapid City (estimated to cost $9.4 million). In North Dakota, the Governor and legislature passed a comprehensive transportation package of $1.67 billion for the 20112013 biennium, which includes maintenance and enhancement of state, county, city and township roads. The transportation package is considered the largest two-year budget for road construction and transportation services in NDDOT history. It includes $600 million in regular federal aid statewide construction program, $228.6 million for the extraordinary state highway maintenance program, $142 million for the county and township road reconstruction program, and $200 million to address emergency roadway needs at Devils Lake. NDDOT does a needs study and has a pavement management system – special equipment that drives the system, evaluates road ride and condition. The information is logged into the system and outputs a report that helps the NDDOT prioritize. The department also determines needs through a Statewide Transportation Improvement Program (STIP). This is a four-year program of projects planned for transportation needs throughout the state. The STIP includes all federally-funded highway and transit projects to be constructed in North Dakota. The development of the STIP involves working with many agencies to determine transportation needs. This includes coordination with cities and counties, in addition to gathering statewide input from various groups, officials and NDDOT District Engineers. One main issue facing North Dakota’s transportation system includes uncertainty of future federal funding. Another issue materialized after record flooding across the state caused extensive damage to state, county and urban roadways covering 41 counties and three cities. “Some areas of the state are still assessing damage to their infrastructure,” Ziegler states. “The Department is working on a large number of Emergency Relief projects.” Flooding damaged roads in regions across the state include: Devils Lake, Red River, Prairie Pothole Region, Minot and Bismarck. The weather-related conditions also caused landslides on highways in western North Dakota. In addition, oil country roads want bypasses or truck reliever routes, wider roads, passing lanes and load restriction free roads. PB Alan Van Ormer - avanormer@prairiebizmag.com

Francis Ziegler, director for North Dakota Department of Transportation

Wayne Hurley, planning director for West Central Initiative

prairiebizmag.com

SDSU research team developing solar energy efficiencies A research team is developing technology that would convert solar energy more efficiently at a low cost.

he South Dakota Board of Regents has provided South Dakota State University in Brookings, S. D., a $200,000 grant for photovoltaic research to develop devices that could make this happen, as well as reduce greenhouse gas and other environmental pollutant emissions. The funding will allow researchers at the College of Engineering to collaborate with an industry partner to develop an innovative plasma technology. Plasma technology is widely used in manufacturing solar cells, semiconductor integrated circuits, flat panel displays and flexible electronics. Qi Hua Fan, principal investigator and associate professor of electrical engineering and computer science, says the new plasma technology enables cost effective manufacturing of solar cells. “If this technology is successful it will significantly promote solar panel efficiency and reduce production costs,” Fan states. “If this happens a generation of new companies will be producing solar panels.” Fan is being joined by co-principal investigators David Galipeau, professor of electrical engineering and computer science, and Zhong Hu, associate professor of mechanical engineering, to develop high-density, plasma-based, thin-film deposition technology, according to a news release from SDSU’s University Relations office. Hu will be working with the plasma simulation portion of the project, Fan will be developing the plasma source and materials process and Galipeau will use his expertise in semiconductor devices to help with that end. The project is slated to last at least 18 months and could lead to the establishment of an advanced materials process and characterization facility that can fabricate solar cells. The news release also states that “The research is part of continual efforts at SDSU and other research institutions to help the nation become energy independent of fossil fuels. SDSU has engaged in numerous projects that use photovoltaic materials and devices. In order for such devices to reduce sustainable energy, they must use materials that are abundantly available and environmentally benign.” Fan says that currently, the cost of using solar energy is four-to-five times the cost of using conventional electricity. If the technology is successful, it would allow solar energy to be competitive with current electricity and other types of energy, Fan notes. South Dakota is considered one of the premier states focusing on solar technology because it is one of the top states with the most days of sunlight, Fan states. The grant allows the research team to develop the technology. Once the technology is developed, SDSU researchers expect other grants to enable further testing of the new technology. If the tests are successful, the technology would be transferred to a company, who would in turn, be able to produce solar panels. Fan started working with solar energy more than five years. He came to SDSU a year ago and started working on the solar research project that will try to develop third generation photovoltaic devices and develop new technologies that can address deficiencies occurring with the current technologies. “Current dominant plasma technology has disadvantages such as the plasma density is too low, which makes the process very slow,” he says. “We need to do theoretical simulation which will give us a very high density plasma source.” Fan adds that this program creates much higher density plasma, which enables the

30 Prairie Business Energy

March 2012

Solar panel (Photo courtesy of SDSU)

fabrication of high-efficiency solar cells. Hu believes this can help reduce the dependence on fossil fuel. “Efficiency is one of the most important things associated with energy. The second thing is cost,” he says. “New technologies involved with plasma can provide cost saving in material fabrication. We can use a computer simulation to clearly predict process details. We are trying to promote the process and our research capability.” Solar panels are used to generate electricity. This type of clean energy can’t compete with fossil fuels because of the cost. The research team is working with an industry partner to establish the high density plasmas system. The industry partner is providing matching funds for developing the plasma equipment. Alan Van Ormer - avanormer@prairiebizmag.com

prairiebizmag.com

Canadian company opens in Bismarck, brings new technology into Bakken A Canadian company has opened an operation in Bismarck, N. D., and is bringing its own technology into the Bakken Oil Play.

Canadian company has opened an operation in Bismarck, N. D., and is bringing its own technology into the Bakken Oil Play. Datalog, headquartered in Calgary, Alberta, Canada, is making Bismarck its first United States location for its Logging While Tripping (LWT) Division. LWT uses formation evaluation methods using down hole instrumentation to determine geologic properties and hydrocarbon content. “We made the decision to come to Bismarck rather than the traditional western North Dakota locations as we felt we would have a better chance of hiring and retaining good engineers and technologists in a major centre with full amenities,” explains Rob Duthie, vice president of Operations. “The cost of training an engineer is expensive so retention is key to our success. Our business requires our units to drive to well sites to perform our services as needed so the extra hour and a half to Bismarck from the Bakken play was acceptable for our logistics.” Over the next two years, Datalog will be placing an estimated $3 million worth of LWT equipment into western North Dakota. A building is slated to be completed in early 2012. In addition, Mark Wagner, who lives in Bismarck, has been hired as the general manager of the LWT Division in Bismarck. Datalog has been in business in the Canadian and International oilfield since

32 Prairie Business Energy

March 2012

Employees of the Logging While Tripping (LWT) Division conduct operations. (Photo courtesy of Datalog) 1986 including previously in Colorado and Texas with Mud Logging services. Mud Logging is analysis of drill cuttings and drilling mud to infer geology and gas content. The company divested most of the Mud Logging divisions in 2006 and has since been focused on the current divisions which include oil sands Wireline Logging and Logging While Tripping (LWT.) Datalog plans on expanding to other resource plays in the United States. The LWT system allows oil companies to economically perform detailed formation evaluation (open hole logs) in horizontal wells where it is currently cost prohibitive to perform this analysis. Open hole logs measure electrical, nuclear and acoustic properties of the formations to determine geologic parameters as well as hydrocarbon content. Duthie states that in most horizontal wells only the very simplest open hole log is generally run as part of the directional drilling process, this simple log is the natural Gamma Ray which gives limited information. Traditionally the well completion program and hydraulic fracturing interval decisions for the well are then made from this simple log combined with drill cutting analysis. The LWT system allows the oil company to run a comprehensive suite of open hole logs including natural Gamma Ray, Spectral Gamma Ray, Neutron Porosity, Density, and Dual Induction Resistivity. This suite of formation evaluation logs is the same as is generally run on vertical wells using gravity descent deployment or in industry terms Wireline Open Hole Logging. As gravity descent is impossible in horizontal wells, generally they are not as rigorously evaluated (logged). “Our patented deployment system, which includes an electrically invisible composite drill collar and memory based logging instruments which are pumped down the well, makes horizontal logging easy,” Duthie explains. “Our instruments or “logging tools” are deployed when the drill reaches its final depth, measurements are acquired in memory mode from safe within the collar as the pipe is removed (tripped) from the well. This allows the same comprehensive logs to be acquired in the horizontal part of the well as normally only acquired in vertical wells. Duthie notes there is a large economic advantage to the system versus other systems for open hole logging in horizontal wells, as it uses almost no rig time. “Other systems require the entire drill pipe string to be removed (tripped) from the well and the instrumentation pushed down on the end of the pipe which takes several days of rig time,” he says. “The cost of having a rig on location for a single day is between 75-100K so saving a couple of days is significant. This large rig time cost, as well as the risk of losing equipment with other methods has traditionally limited horizontal logging from being performed.” Duthie adds that the reason for logging the horizontal in addition to the vertical section of the well is to ensure the well trajectory has stayed in the correct formation as planned and no geologic surprises are encountered that would affect the completion and hydraulic fracturing program. “The fracking plan can then be based on solid understanding of the subsurface conditions rather than vague inferences from limited geological evaluation methods,” he says. “This allows optimization of fracking horsepower instead of wasting energy on the wrong formations. This is more critical than ever with the focus on fracking by the general public and the need to ensure the frack energy is going where it was planned.” Alan Van Ormer - avanormer@prairiebizmag.com

Ag Innovation

Innovation impacting ag community Innovation is impacting the agriculture business community in at least three ways. Satshot technology. (Photo courtesy of Agri ImaGIS Technologies)

irst, by the end of this crop production year, experts believe that every equipment dealership in North Dakota will have a precision ag technician or have recruited for one. A second impact involves innovation and firms who are capitalizing on the emergence of different technologies and integrating them into their own product line. Finally, the impact involves the volume of dollars. According to Dr. Paul Gunderson, president of the Dakota Precision Agriculture Center, the latest data he could gather points out that since 2000, producers and trucking companies in the United States together have invested $15 billion in precision technology. “(The impact that precision ag has on the business of agriculture) is huge out here,” Dr. Gunderson explains. Lanny Faleide, president of Agri ImaGIS Technologies, says that the 10 percent that use precision ag variable rate techniques are more profitable and more efficient. “However, it is tough to put numbers to it,” he states. Roger Reierson, CEO and chairman of Flint Group, a network of six full-service marketing communication firms including AdFarm, says that ag innovation has created whole new sectors. “Areas around biotech, seed coatings, and nutraceuticals, didn’t even exist a few years ago and have been driven by ag innovation,” explains Reierson, whose commitment to rural development in the upper Great Plains and Red River Valley region of North Dakota and Minnesota have spawned numerous committees, organizations and initiatives including the Red River Valley Research Corridor. “Other, more indirect, initiatives like food traceability and food safety have taken quantum leaps due to recent jumps in innovations. Billions of dollars are directed to support innovations in agriculture. These efforts assist in driving large portions of the world economy.” For a producer, when thinking about ag innovation, the producer is typically thinking about integral steps up from the technology they are currently using, Dr. Gunderson explains. “Most producers that work with ag innovation don’t think of

34 Prairie Business

March 2012

innovation as a huge jump,” he states, using an example of as moving from a manual task of steering a tractor to automated steering. “For the producer, it can make a huge difference. It reduces the fatigue level in the cab, amount of back pain, and muscle tension across the shoulder.” The Center was established under North Dakota’s Center of Excellence initiative to foster high quality research, respond to private-sector need for product-related research and development, and contribute to a quality environment for technological job development with North Dakota. The Center is located at Lake Region State College in Devils Lake, N. D., and functions out of the president’s office. Faleide started Agri ImaGIS Technologies almost 18 years ago. The company’s main focus has been remote sensing, in particular, accessing imagery from satellites and aerial sensors to take images of a farm field to evaluate the growth potential of crops and what is going in that field throughout the year. He started innovating when he was toying with satellite images on his farm in North Dakota. He started Agri ImaGIS in 1994 and attended the first precision ag conference in Champagne, Ill., in 1996. “Precision ag was officially defined in 1996, but people were dabbling with it for 10 years prior,” Faleide explains. At the time GPS was in play, but the problem was the accuracy. “It was at 30 feet accuracy and we wanted it to be down to the inch,” Faleide says. While Faleide was working with ag innovation since the 1980s, Dr. Gunderson developed the Dakota Precision Ag Center in Devils Lake, N. D., just a few years ago. The main focus of the Center is providing educational tools for producers in North Dakota and teaching growers how to use the technology. One main innovation has been new technology that is replacing slurry manure for swine and dairy operations. “We’ve designed a new tool that places the slurry all across the seed bed in the ground,” he says. “We are working with an Italian

firm that appears to have the technology to sense the nutrient value in the slurry manure as it is being injected.” Dr. Gunderson believes one major innovation has been genomics, which has helped alter the basic genomic structure of crops. “It is tailored to fit the soil characteristics. It is tailored to climate. It can tailor the crop for a specific outcome,” he states. Faleide adds that precision ag has shown the producers that the land can be treated better. “It has allowed producers to treat it wiser and to do the right thing,” he states. “The environmental impact is huge. The world will not allow us to do whatever we want.“ Reierson notes that we need to feed a growing world and there is not enough arable land to feed our exponential growth. “Innovation will play a large part in increasing the production rates of our finite farmland. We have seen hybrid corn technology take corn yields from under 100 bushels/acre to well over 200. This cannot occur without innovation,” he says. “Food safety and storage initiatives can help reduce wastage and loss as another mechanism to feed the world. Innovation in seed technology continues to increase yields and plays a major role in developing more nutritional and a safer food supply. Innovation has played a large role in increasing our food supply, but it will take continuous new technology and more efficient farming practices to keep up with global demand.” PB For more information about ag innovation, visit www.precisionag.com. Alan Van Ormer - avanormer@prairiebizmag.com

Slurry tool. (Photo courtesy of Lake Region State College)

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Transportation needs in western North Dakota he oil boom has dramatically impacted transportation needs in western North Dakota. “Truck volumes have increased significantly,” states Francis Ziegler, director of the North Dakota Department of Transportation (NDDOT). “We also have to deal with weight traffic. Thirty to forty percent of the traffic volume is trucks, so we’ve had to design our roads to handle the heavier loads. These heavy trucks can wear out the roadways quickly.” With the increase in traffic on western North Dakota roads, the state invested $290 million in 2011 and will invest an additional $305 million this year on state highways as NDDOT aggressively addresses infrastructure improvements to enhance safety and traffic movement. The state of North Dakota budgeted an unprecedented amount of state funding for transportation projects including $142 million (biennium total) to address the greatest local roadway needs on county and township road reconstruction in the 17 oil impact counties. The money is for paved and gravel roadways. To date, $25 million has been spent. The remainder is expected to be spent this year. The budget also includes $228.6 million (biennium total) designated for state highway projects in western North Dakota. An estimated $84.5 million in projects are under contract at this time.

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Visit prair to find out.. iebizmag.com . Some of on in westtehe projects being wo rked rn North D akota What the on to enhanNDDOT is wor kin ce traffic m ovement g What is relieve trafgoing on in Willisto n to fic congestio n

It’s all about Western North Dakota The remainder of this amount will be bid on during the 2012 construction season. It is a portion of a comprehensive transportation package designed by the Governor and legislature of $1.67 billion for the 2011-2013 biennium, which includes maintenance and enhancement of state, county, city and township roads. Ziegler notes that the crucial challenge in western North Dakota is trying to get ahead and trying to stay ahead of the growth. When attending meetings, Ziegler adds that the number one challenge that people bring up is transportation, while housing and emergency services, fall close behind. “We are looking at new ways to address roadway infrastructure improvements and people’s concerns,” he states. “We’re also working to make the roads as safe as possible.” Ziegler says the state is doing all it can at this time. “In some ways we’re trying to play catch up because roads are already damaged,” he says. “The new roads are being designed to address the increased traffic counts and loads.” WNDPB Alan Van Ormer avanormer@prairiebizmag.com

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Raven acquisition fits growth plan

aven has been collaborating with Vista Research over the past 18 months to produce some surveillance products. Vista’s smart sensing radar systems (SSRS) are employed in a host of advanced detection and tracking applications, including wide-area surveillance for the border patrol and military. Raven Industries, Inc. communications manager Kristin Tilus, says Vista Research will continue to do business at the Arlington, Va. location. “They’ll continue to support existing contracts from their locations, which are in Arlington (Virginia), and Monterey and Chatsworth (California),” Tilus says. “The

Raven Industries, Inc., in Sioux Falls, S. D., recently acquired Vista Research, Inc., a leading provider of surveillance systems that enhance the effectiveness of radars using sophisticated algorithms.

acquisition fits Raven’s growth plan. Our company is in constant search for new markets. Vista has been producing highly engineered products with unique market position.” The acquisition will immediately allow Raven Aerostar to enhance its tethered aerostat security solutions. Longer-term, Raven is positioned to meet growing global demand for low-cost detection and tracking systems used by government and law enforcement agencies. Under terms of the acquisition agreement, Raven will acquire Vista Research for an initial cash purchase of approximately $12

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It’s all about South Dakota million, with up to $38.5 million in additional benchmark and earn-out payments over the next seven years. The transaction closed in January, subject to customary closing conditions. Vista Research’s CEO and co-founder, Joe Maresca, notes that his company shared a common vision with Raven Industries for peace and stability through innovation and high-quality products. Vista Research has pioneered innovative detection and tracking processing systems for more than 25 years, developing smart radar surveillance processors to help identify threats to critical assets. In addition to acquiring a highly-engineered niche product with a unique market position, Raven’s president and chief executive officer, Daniel A. Rykhus, expects to integrate Vista’s technology with Raven’s Marine navigation products for enhanced port security. “Raven has a proven approach for commercializing acquired technologies and leveraging our strengths in manufacturing, market development, sales and customer service,” Rykhus says. Raven Industries, Inc. has designed and manufactured high-quality, high-value technical produces since 1956. Raven is publicly traded on NASDAQ (RAVN) and has earned an international reputation for innovation, product quality, high performance and unmatched service. “With strengths in engineering, manufacturing and technological innovation, Raven serves the precision agriculture, high performance specialty films, aerospace and electronic manufacturing services markets,” Tilus says. In 2013, Raven expects to add 200 employees to fill technical and engineering positions. City of Sioux Falls economic development manager Erica Beck says Raven’s expansion and growth fills a critical need for the city to maintain a diverse employment center.

“Raven Industries is a long-standing member of the Sioux Falls business community,” Beck says. “They provide high-quality products and employment opportunities. Sioux Falls is set apart from the rest of the region in the level of skill set our workforce gains in employment through their company.” Beck notes that Raven’s growth and expansion plans for the next few years is exciting both for the Sioux Falls area and the state of South Dakota. “The best growth is often that happening from within, resulting from an existing company’s solid performance and ability to expand,” Beck says. “We’re fortunate to have successful businesses such as Raven Industries in Sioux Falls. Their growth will result in a positive impact to economic conditions within Sioux Falls for decades to follow.” Rykhus notes that acquiring Vista Research is a “unique opportunity” that will allow Raven to further collaborate with Vista Research to bring new innovations for detecting and tracking small objects over land, over water and in the air. Solutions can be used to replace or enhance traditional, high-cost radar systems now in use. “Their breakthrough technology can be another catalyst driving future growth at Raven,” Rykhus says. “We expect this acquisition will be additive to our earnings in the course of the coming year. More importantly, we believe acquiring Vista Research meets our goal of allocating capital to generate attractive returns on investment with increasing cash flows.” Additional information about Raven Industries, Inc. is available at www.ravenind.com. SDPB Loretta Sorensen, Owner, Prairie Hearth Publishing, LLC. sorensenlms@gmail.com.

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RRV Technology

The new ‘dedicated mobile website,’ Fargomoorhead.org, was launched in December providing access to community information with any smar t phone, plus the location aware guide e allows visitors to use th to ‘nearest me’ feature list and sort options, making exploring the community quicker.

Innovative technology ideas being developed in the Red River Valley

t is just one of the many new apps and other technological ideas being developed in the Red River Valley corridor. “We are fortunate to live in a community where technology has really been the focus of our schools and our local government. Organizations like the NDSU Research & Technology Park are instrumental in encouraging young entrepreneurs to be bold and take risks on new business ideas, supporting them through financial means and through mentoring,” says Joe Sandin, president of Onsharp, Inc. Onsharp is helping develop SaveGiveGo, an online community, where businesses post promotions that also include pledge amounts and only pay when the promotion is redeemed by a customer. The customer receives the promotion, such as a discount on a product or service, as well as the pledge amount to give to a nonprofit of their choice within the SaveGiveGo system. “SaveGiveGo is an exciting new way to not only save money, but also make a difference in your community,” Sandin explains. “Consumers save money, businesses promote their offers risk-free, and nonprofits and fundraising organizations receive more money for worthy causes.” Sandin notes that SaveGiveGo is the answer to the increasingly popular question how can businesses and advertisers share the risk of advertising? “The pledge aspect of the website solves a critical issue for school groups and nonprofits which is simple, cost-effective fundraising,” he says. “In fact, SaveGiveGo is very cost-effective because it is completely free for causes to be listed and accepts pledges once they’ve been approved.” SaveGiveGo is currently available for pre-launch sign up at www.savegivego.com. Launch is expected in late Quarter 1 2012 with a mobile application launching by the end of Quarter 2. In West Fargo, N. D., Fat Cat, LLP has announced the availability of its first mobile gaming app, Fat Cats, on the IOS and Android platforms. Fat Cats is a mobile app incubator, which designs applications that parody current events for the entertainment gaming market. According to a press release, Fat Cats parodies the tension between 40 Prairie Business

March 2012

Wall Street executives and those occupying Wall Street. The game features a whimsical battle, in which heroic animated characters launch themselves at the Wall Street fat cats in an effort to bring down the financial empire. In Fargo, N. D., three local innovators are developing a product called Simple In/Out. It’s a web-based in/out board for managing employees. According to Brandon Medenwald, Simply Made Apps, in an email, we have a great website (simpleinout.com) and apps for iPhones and Android handsets. “What sets our software apart from any other in/out board ever made is GeoFencing. With GeoFencing, you can designate real-world areas with circles on a map,” he states in the email. “Once these are established, reach for the companion app on your phone and you can check in or out when you enter or leave location automatically without doing anything but carrying your phone. This makes keeping track of employees virtually painless. After a little setup, everyone in a given location will be monitored whether they are in or out of the office.” Marco, Inc., a leading Managed Services Provider, is designing an MSP to offer the Intel® AppUpSM Small Business service running on the Intel Hybrid Cloud throughout Minnesota, North Dakota, South Dakota, Iowa, and Wisconsin. The service offering, called the Marco Hybrid Cloud, is an innovative subscription-based model for providing locally hosted, remotely managed server hardware and software. One of the immediate benefits is that businesses can access hardware and software on a monthly pay-asyou-go basis, thus eliminating costly start-up and licensing fees. “Intel is excited to be launching this service in this marketplace,” says Bridget Karlin, General Manager, Intel Hybrid Cloud, in a recent press release. “Marco’s business model and client relationships will help businesses throughout the Upper Midwest area adopt this technology rapidly with a very affordable monthly subscription model.” In addition, Appareo Systems has undertaken a significant software development project with CHC Helicopter, providing the world’s largest helicopter services company with an innovative and robust electronic flight bag (EFB) application. The CHC EFB software will run on the Apple iPad, continuing CHC’s commitment to leveraging advanced technology to achieve a completely paperless cockpit environment. CHC is deploying more than 500 iPads globally to be used for various flight-related activities including crew training and flight operations. Implemented across its fleet, the EFB will serve as a vehicle for standardizing CHC’s flying operations at bases around the world, according to a press release. This increased efficiency will pay dividends in the form of shortened accounts receivable cycles, more complete information for crew scheduling and maintenance activities, and the elimination of in-flight paperwork duties. The CHC EFB will also provide flight crews with powerful tools for routing, fuel planning and weight and balance calculations. RRVPB

ViewPoint

Let’s be strategic about our future North Dakotans have a long history of controlling their own destiny. It is in this spirit that the initiative called North Dakota 2.0 was created.

ue to our unprecedented economic situation, now is the time to be focused and strategic about shaping the future of our state. An essential piece of the ND 2.0 initiative is to engage a diverse cross-section of people and give them an opportunity to provide feedback. The ND 2.0 initiative began last October with a successful event in Bismarck where individuals from across the state joined together to share ideas. The results showed that people are hungry for leadership to take hold of our future. While the state’s economic success has provided us with incredible opportunity, it is important that we a have vision to address immediate needs and plan for what lies ahead. To capture this vision, ND 2.0 is currently underway,

ND 2.0 is an initiative focused on bringing together North Dakotans to network, learn about potential opportunities and contribute to the continued success of the state. By collaborating, we can capitalize on the state’s abundance of opportunities while addressing the immediate needs to ensure that North Dakota’s better days are still ahead. ND 2.0 partners include USDA Rural Development, Advanced Engineering, Basin Electric, AARP, BlueCross BlueShield of North Dakota and North Dakota Farmers Union.

JASPER SCHNEIDER Jasper Schneider has served as North Dakota’s State Director for USDA Rural Development since 2009. He is aggressively working to build upon North Dakota’s successes through Rural Development’s many programs and resources. The effort is helping to create new opportunities, develop job-creating businesses and build vital infrastructure. He can be reached at jasper.schneider@nd.usda.gov.

holding interactive meetings in 12 communities across the state. The feedback from these discussions will shed light on issues that communities have in common and where priorities may be different. At USDA Rural Development, we have partnered with a diverse group of stakeholders to host ND 2.0. Our mission at USDA is a commitment to the future of rural communities. We follow through with this commitment by providing funding and financing for community infrastructure projects such as housing, water systems, utilities and emergency services. A key component of our ability to lend in rural communities is the long term viability of an area. Items such as local support, demographics and tax structure are critical to a successful public investment. In addition to providing access to capital, we also provide technical assistance for the development of business, communities and cooperatives. With this mission in mind, engaging people and communities is pivotal to what we do. The success of any initiative is only as good as the followthrough. I believe that action is more important than words and that’s why we are actively involved in a grassroots approach. To preserve the quality discussions that are occurring at these community meetings, the data and feedback will be compiled and made publicly available as a resource. The future of North Dakota is bright. Never before in the history of our great state have we had such an abundance of wealth and opportunities. The worse thing that could happen is to reflect back on this time of prosperity and wish we had made different investments. Through ND 2.0 and other efforts, together we can help build an even better North Dakota that capitalizes on our strengths and provides opportunity for all. Now, more than ever, we need to play catch up in areas of need, but also take a proactive approach in defining our future instead of allowing the future to define us. PB

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Sales/Marketing

Sales and marketing for the season Marketing for fall and winter is very different than marketing for spring and summer for hotels in our area. t would be difficult to try and sell grilling on the patio in winter. Our marketing and sales in winter is geared more to sports teams, corporate meetings and conventions, holiday parties, leisure packages for families needing a break, wedding shows and tradeshows. Hotels will implement special packages for families wanting to take a break during the cold months to enjoy a weekend of hot tubs, saunas, pools and shopping. Families like to take advantage of school breaks and holidays. During hunting season Girl’s Night Out packages and shopping packages are utilized a lot. Marketing to couples for romantic packages during the cold months is another great sales tool. Maybe just to make up for that hunting season! Winter is an exciting time for having a wedding show, but you have to remember to have a lot of big screen TVs for watching football at the same time. We also find that numerous charities find this to be an ideal time to hold fundraisers and special events. These days marketing is less about finding customers than being found by customers. The Internet and social media have placed a wealth of information at the fingertips of travelers. The three greatest emerging forces are: search, social media and mobile. These new media are rapidly becoming popular points for travel shoppers. We are very fortunate to live in a community that offers so many things to do during all seasons. We can all be a premier destination through marketing and image building to increase business and promote our area. No matter how we market and sell we need to always make sure guests are our number one priority.

Carol A. Johnson is general manager of the Ramada Plaza & Suites and director of operations for National Hospitality Services, which manages hotels in several states. National Hospital Services assists hotels with their sales and marketing. She can be reached at carolannjohnson@ramadafargo.com.

42 Prairie Business

March 2012

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John Fetsch: 701.238.9574 or jfetsch@prairiebizmag.com Brad Boyd: 1.800.641.0683 or bboyd@prairiebizmag.com prairiebizmag.com

By the Numbers EMPLOYMENT

(NOT SEASONALLY ADJUSTED) UNEMPLOYMENT RATE Dec. 2011 3.2 % 3.7 3.2 4.4 3.2 1.9 1.0 3.5 3.7 4.4 4.5 3.5 3.5 4.0 4.7 3.6 3.3 4.0 3.2 3.5 5.7 5.5 8.9 5.0 6.1 5.6 5.2 7.7 5.3 7.3 4.6 4.2 5.1

North Dakota Fargo MSA Bismarck MSA Grand Forks MSA Minot MiSA Dickinson MiSA Williston MiSA Jamestown MiSA Wahpeton MiSA South Dakota Sioux Falls MSA Aberdeen MiSA Brookings MiSA Watertown MiSA Spearfish MiSA Mitchell MiSA Pierre MiSA Yankton MiSA Huron MiSA Vermillion MiSA Minnesota Minneapolis/St Paul Brainerd Winona MiSA Fergus Falls MiSA Red Wing MiSA Willmar MiSA Bemidji MiSA Alexandria MiSA Hutchinson MiSA Marshall MiSA Worthington MiSA Fairmont MiSA

EMPLOYMENT

Dec. 2010 3.8% 4.1 4.0 4.3 3.8 2.4 1.5 4.1 4.6 4.9 5.2 3.9 4.0 4.6 4.5 4.0 3.4 4.8 3.8 3.7 6.8 6.6 10.3 6.0 7.4 6.7 6.1 8.0 6.8 8.2 5.3 4.9 6.3

Dec. 2011 Dec. 2010 362,005 351,073 114,431 113,300 59,077 58,502 52,464 52,223 31,678 31,706 17,773 15,974 24,306 18,624 10,270 10,734 13,287 11,481 427,690 419,030 63,615 62,035 22,840 22,405 18,965 18,410 18,580 17,845 12,750 12,810 12,985 12,455 12,020 11,880 11,385 11,015 9,720 9,345 7,225 7,505 2,781,634 2,739,687 1,732,939 1,705,057 42,644 41,495 28,034 26,719 28,965 28,283 25,063 24,155 23,179 22,542 19,890 21,066 19,022 18,850 18,314 18,348 14,145 14,297 11,015 11,190 11,239 10,836

MSA — Metropolitan Statistical Area MiSA — Micropolitan Statistical Area Sources: U.S. Bureau of Labor Statistics, Minnesota Department of Employment and Economic Development, Job Service North Dakota, South Dakota Department of Labor NOTES: Employment data is based on formulas. Each February formulas are “benchmarked” to correct any economic or cultural changes that may make current formulas inaccurate. At that time figures for previous months may change. North Dakota oil data is also preliminary data and changes may be made at later dates.

CANADIAN BORDER CROSSINGS AUTOMOBILES DEC 2011

% CHANGE /DEC 2010

23006 22843 13097 9510 3344

4.06% 10.61 - 7.64 - 5.65 4.60

1496 1109 464 714 555

- 4.65% -14.49 -25.28 -22.31 17.83

23006 7140 5246 4654 4645 3075

- 2.67 8.18 13.50 21.55 21.22 9.90

16155 7405 515 1980 762 978

3.80 19.53 -48.76 28.74 -30.60 452.54

MINNESOTA

Intl Falls-Rainer Grand Portage Baudette Warroad Roseau

TRUCKS

Source: US Customs and Border Protection

44 Prairie Business

March 2012

Sweet Crude Price/BBL

Production Oil-BBL/day

$90.36 $81.89 $81.38 $75.74

509,700 487,700 463,900 356,505

NOV 2011 OCT 2011 SEPT 2011 NOV 2010

Drilling Permits 169 201 176 245

NOV 2011 OCT 2011 SEPT 2010 NOV 2010

Producing Wells 6,332 6,210 6,071 5,331

Rig Count 199 197 197 158

Source: NDOMB

DECEMBER AIRLINE BOARDINGS BOARDINGS

Minneapolis-St. Paul Fargo Sioux Falls Rapid City Bismarck Duluth Grand Forks Minot Pierre Aberdeen

% CHANGE/2010-2011

2,378,497 31,505 430,756 19264 19,351 10,818 11,948 15,661 915 2,253

-0.3% 4.1 21.0 - 3.4 13.3 - 7.5 14.3 53.9 - 28.0 13.22

Source: US Customs and Border Protection

DEC % CHANGE 2011 /DEC 2010

NORTH DAKOTA

Pembina Portal Neche Dunseith Walhalla Noonan

NORTH DAKOTA OIL ACTIVITY

CANADIAN EXCHANGE RATE 1/27/12 U.S. to Canadian Dollar

12/28/11

1/27/11

- $1.00 or $0.9987

$1.02 or $0.9771

$0.99 or $1.0059

U.S. to Euro

$ 0.76 or $1.3192

$0.77 or $1.2925

$0.73 or $1.3686

U.S. to Chinese Yuan

$6.33 or $0.1579

$6.32 or $0.1582

$6.58 or $0.1519

U.S. to Japanese Yen

$76.67 or $0.0130

$78.00 or $0.0128

$83.05 or $0.0120

U.S. to Mexican Peso

$12.93 or $0.0773

$14.00 or $0.0715

$12.04 or $0.0830

Source: Bank of Canada

Data provided by Kingsbury Applied Economics

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