Prairie Business

Page 1

October 2011

Community Spotlight: Strong core manufacturing pushing Alexandria, MN pg 40

Technology Web strategy critical for business success

Company Spotlight: Fisher Industries’ headquarters drives business pg 18

pg 26

Scan

for instant access to Northern Plains News

Health Care pg. 28

Rural Health Care seeing change

CHANGE SERVICE REQUESTED PRSRT STD U.S. Postage Paid Fargo, ND Permit #684

www.prairiebizmag.com

PRAIRIE BUSINESS MAGAZINE PO BOX 6008 GRAND FORKS, ND 58206-6008

MONEYpg 46 TECHNOLOGYpg 24 SALES/MARKETING pg 22 ECONOMIC DEVELOPMENT pg 20 LEADERSHIP/MANAGEMENT pg 16


on the

Matthys Approach to Hip Replacement

“It’s common sense. You wouldn’t damage everything just to fix a part.” The direct anterior approach to total hip replacement makes the incision from the front side of the hip where there is less tissue and muscle. By cutting through and damaging less tissue, patients heal faster with less pain. Stop limping. Stop wincing. There is a logical explanation for your hip pain and Dr. Matthys has a logical solution — the direct anterior approach to total hip replacement.

The Logical Approach to a Faster Recovery

1-866-887-9300 • www.jointpain.md With Locations in Fargo, Fergus Falls, Mayville, Jamestown & Dickinson



CONTENTS

Volume 12 No. 10

6

From the Editor’s Desk

8

Professional Spotlight

8

Matthew Mohr

10

Prairie News

14

Prairie People

16

Leadership/Management The future of health care is Home

18

Company Spotlight: Fisher Industries: Dickinson headquarters drives business The economy seems to drive a lot of what Fisher Industries does from its headquarters in Dickinson, ND.

20

Economic Development - Foundation eligible for $1 million Talent Dividend prize

22

Sales/Marketing 10 steps to better voicemail

24

Technology - So you have selected an EMR, now what?

26

Cover Story: Web strategy critical for business success

28

Cover Story: Rural health care seeing change

30 40

The last five years has seen web strategy become an increasingly critical success factor for businesses. This includes Social Media, Facebook, Twitter, and blogs.

Many health care organizations are finding that once a potential health care professional steps through their doors there is a pretty good chance they are hooked. Despite that optimism, many will also tell you that it is tough to bring health care professionals to rural America.

Cover Story: Long-time businesses have impact on region Long-time businesses have impact on region - Business longevity means job security and a means for economic development in communities across the region.

32

Wind investment creates jobs, but faces challenges

36

ONE designing geothermal systems

38

NDSU researchers develop revolutionary biobased technology

Community Spotlight: Strong core manufacturing pushing Alexandria, MN The one thing that can be said about Alexandria, MN, is that it has a strong core of manufacturing that spurs economic growth.

46

Money - How to reduce auto insurance costs regardless of your record

48

Viewpoint

54

By the Numbers

4 Prairie Business

October 2011

Those who are investing in wind energy are finding that jobs are being created.

Obermiller Nelson Engineering (ONE) Building Consultants has been designing geothermal HVAC systems in commercial buildings since the early 1990’s.

Several crops produced in North Dakota could play a significant role in biobased resins and coatings recently developed by researchers at North Dakota State University (Fargo, ND).

Next Month In November, Prairie Business magazine will focus on why this region is dedicated to research and the impact it has on the business community. In addition, finding workers is part of the game when developing an economic development program. What are the unique ways workers are being found in this region?

On the air Join Prairie Business magazine Editor Alan Van Ormer and host Merrill Piepkorn on Thursday, October 20 at 3 p.m. on any Prairie Public radio station to hear more about the October cover stories. To listen to Prairie Public, visit www.prairiepublic.org/radio/hear-it-now.


Health and wellbeing for life. Where do you go from here?

To Lake Region Healthcare. Trusted professionals. Unsurpassed outreach. Over 100 years dedicated to our community’s health. “Apple a Day” on AM 1250 radio

Lake Region Hospital Foundation Cancer Care & Research Center Mill Street Residence

Elbow Lake Eye Care Athletic Republic Clinic Services

Acute care

Proud to serve the people and businesses of Fergus Falls and surrounding communities.

To learn more about our services go to www.lrhc.org or call (218) 736-8000.

www.lrhc.org (218) 736-8000

712 Cascade St. S. | Fergus Falls, MN 56537


From the editor’s desk

For daily business news visit prairiebizmag.com

An SBA Award Winning Publication

Your online experience

Mike Jacobs, Publisher Alan Van Ormer, Editor Zach Ahrens, General Manager Tina Chisholm, Production Manager Beth Bohlman, Circulation Manager Kris Wolff, Layout Design, Ad Design

GENERAL MANAGER:

Zach Ahrens

Technology is always changing and quickly! nd many companies in the region are using that rapidly changing technology – in the case of this month’s cover story – to provide a sophisticated web strategy to help grow a business. You will read in the cover story several reasons why a web strategy is important. Like other businesses in the region, Prairie Business Magazine sees the web as an important piece in its overall media strategy. Take these numbers: 74 – that is the percent of visitors that are one time users online for Prairie Business Magazine. 3,791 – that is the number of visits the magazine’s online site had in August. 3,069 – that is the number of unique visits to the magazine’s website that same month. That has to change in order for Prairie Business Magazine to grow its online presence and make our readers continue to visit the website to learn more about the business world. We understand, like many businesses in the region, that online is part of the overall package. It is safe to assume that the 74 percent figure ties into when the online version of the magazine is placed on the website. However, many probably don’t know that Prairie Business Magazine also has a Twitter account (@prairiebiz) and a Facebook account (facebook.com/PrairieBusiness). In addition, I’m not sure our readers know that the website is updated daily with stories from around the region. And in the future, the magazine’s website will feature a business Blog. These are many of the same ideas that those who specialize in web marketing say needs to be accomplished on a website in order to drive traffic to that particular website. And we, like most businesses in the region, are still grasping how the concept benefits our business. As you are reading the online version of Prairie Business Magazine in October, think about coming back throughout the month to see what else is happening in this region in the business world and participate in our social media sites.

A

SALES:

Brad Boyd bboyd@prairiebizmag.com

800.641.0683 western ND/western SD

John Fetsch jfetsch@prairiebizmag.com

701.232.8893 eastern ND/MN/eastern SD

EDITOR: Alan Van Ormer avanormer@prairiebizmag.com

Dwaine Chapel, Executive Director, Lake Area Improvement Corporation; Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson, Communications Coordinator, Greater Fargo Moorhead EDC; Dave Haan, Director of Public Relations and Digital Development at Lawrence & Schiller; 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 808 3rd Ave. S., Ste. 400, Fargo, ND 58103. 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.

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

Online: www.prairiebizmag.com October 2011

701.232.8893

Editorial Advisors:

Address corrections:

6 Prairie Business

701.780.1162 zahrens@gfherald.com


Put Your Business First

Connect your business with decision makers and political leaders of the Northern Plains. Prairie Business is the only regional business magazine that reaches over 60,000 readers every month.*

Brad Boyd Account Manager Bismarck-Mandan western ND/ western SD 800.641.0683 p 701.751.3773 f bboyd@prairiebizmag.com

Let’s think big, and see how much your business can grow. You don’t have to be big to think big. Combine your positive outlook with our financial expertise and you have the right ingredients for success. Let us show you how to take your business to the next level. Let’s take action. Your business. Our bank.

John Fetsch Account Manager Fargo/Moorhead eastern ND Minnesota western SD 701.232.8893 p 701.280.9092 f jfetsch@prairiebizmag.com

Call 1-800-908-BANK or visit Bremer.com. (*According to standard industry pass-along rates for business to business publications)

prairiebizmag.com

Member FDIC. ©2011 Bremer Financial Corporation. All rights reserved.

prairiebizmag.com

7


Professional Spotlight

Brimhall: Always wanted a career, not just a job Carrie Brimhall, Interim Provost at Minnesota State Community & Technical College (M State – Fergus Falls, MN), has always wanted a career and not just a job. “

y parents raised me to give 150 percent to everything I believe in,” Brimhall states. “When my degree at Concordia required an internship I advocated to become a member of the college community. I worked unpaid for nine months to ‘get my foot in the door’ and I have been here ever sense.” Brimhall is in currently the Interim Provost of M State Fergus Falls, which has locations in Detroit Lakes, Moorhead, and Wadena (MN.) She received her bachelor’s degree in communications and advertising at Concordia College, and her master’s degree in Organizational Leadership at Capella University. What Brimhall says is amazing to her about working in education is having an opportunity to see people’s lives change every day. “I wake up knowing the organization for which I work is doing everything we can to make change in our region,” she says. “It certainly puts an extra hop in my step and helps keep me focused on doing my best work.” During tough times, Brimhall says one source of inspiration for

M

CARRIE BRIMHALL Interim Provost Minnesota State Community & Technical College, Fergus Falls, MN

her is her immediate and extended family. “Knowing I have an amazing family waiting for me every night when I get home is a blessing and certainly makes any tough times easier to get through,” she says. ‘The other source of inspiration for me is a positive attitude. I always joke with colleagues that I love living in a “sunny world”. Although I can empathize with the tough times and struggles we all face in our jobs, I choose to focus on the positive future of the organization.” The advice Brimhall would give to younger women as they follow their career path is to strive to find the balance and to believe balance is possible. “Many women looking at management or leadership roles believe you have to choose between having an amazing family and having an amazing career,” she explains. “In addition, it takes a village of supporters to build a successful career. Define your support system early in your career and don’t be afraid to ask for help from each of those people.” PB Alan Van Ormer - avanormer@prairiebizmag.com

Business Advice

Gearing up for growth When a business expects or attempts to grow, the owner must devote immediate expenditures for operations to cover the costs of desired growth. oney must be allocated to plant, property, inventory, accounts receivable, and similar assets. Money is also spent for added employees (rarely can you add people just as needed – people are added in anticipation of need), advertising, supplies, and all the things that enable a business to run. A lot of businesses got caught overspending during the current economic downturn, and as the growth failed to materialize, expenses grew too fast to be contained. Even though our region has done remarkably well, a number of enterprises have suffered as their customers pulled back spending. I recently was invited to participate in a business which has a wonderful reputation, great client base, and is in one of my favorite industries. As we discussed my involvement, it became obvious the business was set up

M

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

8 Prairie Business

October 2011

for a much larger volume. The owner had in place over $1 million in assets, solid, well-paid employees, facilities and everything that was needed for the desired volume to be highly profitable, but key customers had drastically been forced to cut back rather than carry forward with continued expansion. As much as I liked the business and the industry, our current economic conditions dictated a conservative approach, so I did not become actively involved. An enterprise must grow to be able to provide added employment, good benefits, and remain profitable, but when anticipated growth fails to materialize it is costly. Planning and spending in anticipation of growth is a very hard challenge; perhaps one of the biggest risks a business owner must take.

PB


Clorox® Germicidal Wipes can be used almost anywhere to clean and disinfect hard, nonporous hospital surfaces.

The Bleach Wipe Used by the Most U.S. Hospitals1 • Meets CDC and APIC guidelines for surface disinfection of the toughest Healthcare pathogens2. • EPA-registered to kill C.difficile spores in 5 minutes* • Used by 5 of U.S. News and World Reports' Top 10 Most Influential Hospitals

* Based on Federal EPA and State Registrations as of June 2011

Answers you can trust - From people who care

800-323-7583 www.dacotahpaper.com * C. difficile spore claim has been registered by the Federal EPA and may not yet be available in all 50 states. Please check with your sales representative for updates in your state. Use as directed on pre-cleaned, hard non-porous surfaces. 1 Based on responses given by 278 EVS and IP decision makers in acute care facilities when asked to identify wipes used in their facility. 2 CDC Guidelines for Sterilization and Disinfection in Healthcare Facilities, 2008. CDC, “Norovirus in Healthcare Facilities” Fact Sheet, 12/21/2006. “CDC recommends either chlorine bleach or U.S. Environmental Protection Agency (EPA) approved disinfectants for controlling norovirus outbreaks” http://www.cdc.gov/ncidod/dhqp/id_norovirusFS.html; “APIC Guide to the Elimination of Clostridium difficile in Healthcare Settings, 2008”


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

HORIZON HEALTH CARE RECEIVES TECHNOLOGY GRANT

SANFORD GALA EVENT INTRODUCES INITIATIVES

Horizon Health Care (Howard, SD) was awarded a $300,000 Rural Information Technology Grant to fund the Prairie Health Information Technology Network Project. The network includes Horizon’s 17 medical clinic locations, as well as nine other rural clinics across South Dakota. The network will allow health care facilities to share electronic medical resources among members, along with enhancing professional development.

Sanford Health introduced several initiatives during Sanford Gala Week in August. Among the initiatives was the launching of the Edith Sanford Breast Cancer. The Edith Sanford Breast Cancer marks an enterprise-wide turning point in breast cancer care and research. By using the data, physicians and researchers will work to evaluate each woman’s risk, identify best treatments, and ultimately hope to end breast cancer. In addition, plans were unveiled for a $360 million, 371private room Sanford Fargo Medical Center in Fargo, ND. It is expected to be the largest of its kind in North Dakota. The facility will focus on a healthy environment, convenience for patients, patient, and staff safety, enhancement of privacy, reduction of noise, standardization and support for clinical research and education. Completion is expected in 2016. In addition, a children’s clinic is being opened in Israel, and a clinic to serve both children and adults will be opening in Ghana, Africa. The facility in Israel will provide general pediatric services to area children, while the facility in Ghana will take responsibility for the operations of an existing primary care clinic in Cape Coast, Ghana.

SPECTRUM AEROMED RECOGNIZED ON LIST OF FAST-GROWING COMPANIES Over the past three years, Spectrum Aeromed has grown its revenue by 799.3 percent to earn the position of 433 on the 2011 Inc. 500 list, Inc. Magazine’s annual ranking of the fastest-growing private companies in America. The company realized revenue of $7.9 million in 2010, it has 20 full time employees at its headquarters in Fargo, ND and also has client services offices in Vancouver, Washington and Munich, Germany. The company’s life saving air ambulance equipment, engineered and manufactured in Fargo, is in use worldwide as evidenced by the fact that 80 percent of the company’s revenues are generated through exports. As an Inc. 500 honoree, Spectrum Aeromed shares a prestigious pedigree with such notable alumni as Zappos, SAS, Under Armour, Microsoft, Oracle and scores of other entrepreneurial powerhouses. Eligible companies are ranked according to percentage revenue growth from 2007 through 2010. To qualify, companies must have been founded and generating revenue by March 31, 2007. Additionally, they had to be based in the United States, privately held, for profit, and independent—not subsidiaries or divisions of other companies—as of Dec. 31, 2010. (Since then, a number of companies on the list have gone public or been acquired.) The minimum revenue required for 2007 is $100,000; the minimum for 2010 is $2 million. Revenue figures given in the company profiles are for calendar years, as are employee counts. Full-time and part-time employees are included in the employee counts; independent contractors are not. Inc. reserves the right to reject applicants for subjective reasons. 10 Prairie Business

October 2011

MARONEY COMMONS OPENS More than 500 individuals attended the Grand Opening of Maroney Commons (Howard, SD) in August, a $6.5 million facility designed to help educate people and groups changing the mentality of a fading rural landscape to a place of new and innovative opportunities. The 32,000 square foot Maroney Learning Center Complex includes a conference center, smart classrooms, on-site lodging, and wellness center. In addition, the facility will support the green energy training program. The facility features green technology in its design and operations and was constructed to meet LEED Platinum certification.


Did You Know… Gallup’s Job Creation Index ranks North Dakota as the top job market in the country for the first half of 2011 continuing a long streak near the top as North Dakota has ranked in the top 10 from January 2008 to June 2011. Source: Bismarck-Mandan Development Association Highlights

NDSCS LAUNCHES FREE MOBILE APPLICATION The North Dakota State College of Science (Wahpeton, ND) has launched NDSCS Mobile, a suite of smart phone applications that gives students, faculty, staff, and visitors the ability to tour the campus, browse event calendars, get the latest news, and view campus photos.

LEGACY ELECTRONICS BEGINS OPERATIONS IN CANTON, SD Legacy Electronics, an ISO 9001:2000 certified contract manufacturer, designer and tester of highspeed, high-density memory modules, printed circuit boards, and other computer products, has begun production at its 40,000 square foot manufacturing plant in Canton, SD. Jason Engle, Legacy Electronics’ chief executive officer, announced earlier this year that Legacy was expanding to Sioux Falls and moving its sales and administrative offices. In March, the firm chose Canton for its manufacturing operations and in June completed Phase 1 of the move from San Clemente, CA, including installation, calibration, and qualification of the Canton electronics component production line. prairiebizmag.com

11


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

AVERA MCKENNAN IS CHOSEN AS A BEST EMPLOYER FOR WORKERS OVER 50 BY AARP

AG INDUSTRY VETERANS LAUNCH NEW COMPANY Intelligent Agricultural Solutions (Fargo, ND) has been formed to bring new high-technology, low-cost ag electronics to the competitive market place. Barry Batcheller, founder of Appareo Systems, LLC, and Howard Dahl, co-founder of Amity Technology, formed the new company combining Amity’s agriculture industry success with Appareo System’s aerospace industry innovations and technology.

Avera McKennan Hospital & University Health Center has been named a winner of the 2011 AARP Best Employers for Workers Over 50 Award. Each year, AARP selects 50 employers that have demonstrated exemplary practices with regard to recruitment, retention and promotion of older workers. The AARP Best Employers for Workers Over 50 program awards businesses and organizations that have implemented new and innovative policies and best practices in attracting and retaining top talent in today's multigenerational workforce. Programs at Avera McKennan which are attractive to older workers include flexible work environments and scheduling, educational opportunities, life and health benefits, retirement plan, a commitment to work-life balance, and an excellent employee health program. Avera McKennan develops partnerships, for example, with Sioux Falls’ Center for Active Generations, to cultivate contacts with prospective employees. For retirees and others who wish to make a meaningful contribution to their community, Avera McKennan involves more than 1,000 volunteers in many varied opportunities. Names of the AARP Best Employers for Workers Over 50 will be published in AARP The Magazine, which is distributed to more than 24 million households.

SDSU INNOVATION CAMPUS DRAWS MINNEAPOLIS LAW FIRM Minneapolis-based intellectual property law firm, Patterson Thuente IP is the newest partner in the SDSU Innovation Campus (Brookings, SD). The firm, which currently has an office in Minneapolis and employs 26 attorneys, will move into the campus on Jan. 1. Patterson Thuente IP helps creative and inventive clients worldwide protect, and profit from, their ideas.

BETTER BUSINESS BUREAU ANNOUNCES 2011 INTEGRITY AWARD FINALISTS The Better Business Bureau of Minnesota and North Dakota have announced its 2011 finalists for the Better Business Bureau Integrity Awards. The Integrity Awards is given to companies who exemplify ethical behavior and display integrity in all aspects of their operations. Among the finalists is State Bank & Trust in Fargo, ND. The 12th Annual Integrity Awards ceremony will take place on Oct. 24 at the Guthrie Theater in Minneapolis, MN from 6 p.m. to 9 p.m.

LADUCER & ASSOCIATES SELECTED FOR ‘SBA 100’ Laducer & Associates, Inc. (Mandan and Belcourt, ND) was recently designated as a ‘SBA 100’ company. ‘SBA 100’ features 100 hundred businesses across America that has created at least 100 jobs since receiving SBA assistance. Laducer & Associates, Inc. was founded in 1985 as a four-person operation and now employs more than 350 people. Laducer & Associates provides large scale data capture information management service contracts for major corporate and government clients. 12 Prairie Business

October 2011


prairiebizmag.com

13


Prairie People

GLORIA LARSGAARD

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.

EAPC ARCHITECT NAMED ‘YOUNG ARCHITECT OF THE YEAR’

LAKE REGION HEALTHCARE NAMES LAYMON DEVELOPMENT DIRECTOR FOR FOUNDATION

Gloria Larsgaard, an architect in EAPC Architects Engineers in the Minot, ND office, has been named ‘Young Architect of the Year’ by AIA North Dakota for 2011. Larsgaard was recognized for her participation and contributions in roles both as a team member and a team leader. She led the development of a code summary template for all projects with emphasis on medical project, as well as spearheaded the production of approximately $20-$25 million in medical projects on average annually, and recently managed the production efforts for the interior architecture of an $85 million medical complex.

Denise Laymon is the new Development Director for the Lake Region Healthcare Foundation (Fergus Falls, MN). Denise received her Bachelor of Science Degree in Business Management from the University of Mary, Bismarck, ND and is near completion of her Masters Degree in Strategic Leadership, which is also through the University of Mary. Since 1999, she has served as the Executive Director of the Thief River Falls Education Foundation. She also served as the Executive Director of the Association of Fundraising Professionals of North Dakota. She will be responsible for Foundation activities including development of the annual giving program, grant writing, and special events.

DENISE LAYMON

YOUNG PROFESSIONALS HIRE EXECUTIVE DIRECTOR

STACEY HEGGEN

The Greater Grand Forks Young Professionals (Grand Forks, ND) organization has hired Stacey Heggen as its Executive Director. Heggen will work to strategically move forward organization forward with initiatives that attract and retain young talented adults to the region. The UND graduate previously led the Devils Lake Young Professionals Organization as the chapter’s first chairperson and was also instrumental in founding the Devils Lake YP organization. Prior to this role, Heggen served the Benson County area as an NDSU Extension Agent.

WETZEL NAMED EXECUTIVE DIRECTOR OF MEDCENTER ONE MEDEQUIP ONE

JEFF WETZEL

14 Prairie Business

Jeff Wetzel has been named executive director of Medcenter One MedEquip One (Bismarck, ND). Wetzel had been serving as interim director of the facility. Prior to being with MedEquip One, Wetzel was director of Medcenter One Occupational Health Clinic. Medcenter One MedEquip One provides prostheses, orthotics, scooters and wheelchairs, lift chairs, oxygen, sleep apnea equipment, compression stockings and a comprehensive list of other medical products and services. October 2011

DIETER NAMED CHAIR OF USD NURSING DEPARTMENT

CARLA DIETER

Carla Dieter, Ed.D., R.N., F.N.P-B.C., has been named chair of the University of South Dakota’s (Vermillion, SD) Department of Nursing. Most recently, she served as the interim chair and is an associate professor for the USD Department of Nursing. She has been the director of Nursing Education Scholarship at USD since 2010. Dieter has had extensive teaching experience in undergraduate and graduate education as well as being an experienced Family Nurse Practitioner. Prior to USD, she served in various undergraduate and graduate positions at the South Dakota State University College of Nursing. Most recently as associate professor and family nurse practitioner at Student Health Services, Dieter coordinated the graduate Family Nurse Practitioner and Doctor of Nursing Practice program at SDSU. Additionally, she has led faculty in evaluating the scholarship of teaching and learning across the nursing curriculum while at both USD and SDSU. Before her career as a nursing educator, Dieter was a nursing staff member at hospitals in Sioux Falls, SD, Norfolk, NE, Osmond, NE, and Omaha, NE.



Leadership/Management

The future of health care . . . is Home

! g n i n e p p a h s i Change nstitutionalized facilities and traditional care models are no longer what society wants. The future is about how people live, not just about how people age. Nancy and her family had reached the day when they had to find a new place for mom to live. She was no longer able to be alone. Saturday morning a drive to the nearest community with a nursing home was the plan. They would take a tour and check room availability. However, bringing mom along was probably not a good idea as it was going to be hard enough to move her from the farm to a nursing home room when the

I MICHAEL CRANNY Director of Consulting Services Nor-Son, Inc. mike.cranny@nor-son.com

time came, and seeing what she was in store for would only upset her. It was a small community so finding the nursing home that day should be easy. After several trips up and down 4th street unable to find the institution, a call to the facility was made to clarify the location. Yes, the address was correct, but this was not a nursing home, it looked like a neighborhood. It looked like four houses with their own front doors, a porch and a doorbell. You see this is not a “nursing home”, it is a “household of care” that promotes dignity, personal choice and well-being. When you open the front door, you enter into the hearth room and you can see the kitchen and dining room in the open floor plan. The bedrooms surround the living, dining, and kitchen area. There is a small exercise room and a den – just like at your house. There are no long hallways or corridors with a nurse’s station in the center. There is no feeling of dignity lost. Heads are not hung low with looks of sadness and despair. NO, PEOPLE ARE LIVING HERE! Grandma is doing her laundry, Aunt Lucy is baking bars, and Grandpa Joe is weeding the garden. You see, there is an unwritten rule for this home - if at all possible, the family in this house participates in how life is lived here. Just like home, everyone is expected to contribute. Menu planning, social calendars, personal calendars are all coordinated by the staff but led by the residents. Meals are prepared right in the house with everyone pitching in as able. The activity program is life, which does include some fun! It may be 10 or 12 bedrooms but it looks, smells, and feels like a regular home. The future requires reinventing the perception of what a nursing home or assisted living is. It requires the freedom of personal choice and opportunity for privacy and socialization. It must feel like “home” and provide a sense of community with high quality personal care. It makes you think, “ Mom would like it here, she could be involved and have a sense of purpose.” It is not an apartment down a long doubleloaded corridor she could hide out in and avoid social interaction. It’s a house where her large bedroom opens to the hearth room, where she could have privacy if needed, or where she has a much needed friend now that Dad is gone. Nancy’s anxiety about moving her mom to town had changed drastically that Saturday morning. She was no longer dreading the conversation with her mom about the move. She was excited! She knew her mom would love it there. It was a place to call “home.” PB

A place that gives her a reason to live! 16 Prairie Business

October 2011


Turn Your Bright Ideas Into Reality.

NPNet.

TM

The region’s largest, most reliable 100 Gigabit fiber optic network.

There are people who think day-to-day, and those who plan years into the future. The Northern Plains NetworkTM is the choice of the visionaries. Thousands of miles of regional fiber optics, connected to networks nationwide, NPNet has the power, speed and reach to turn your big ideas into reality. Move terabytes of data with ease. And transform the way you do business. Totally expandable, it’s ready for anything the future can throw at you, too. Can your network say the same?

Midcontinent.biz/npnet 1.800.888.1300 Go to midcontinent.biz/npnet and click on Broadband Distribution Network Maps to see exact network paths, down to street level for your city.


Company Spotlight

Fisher Industries

Galena Bridge between Carson City and Reno, NV (photo courtesy of Fisher Industries)

Dickinson headquarters drives business F

The economy seems to drive a lot of what Fisher Industries does from its headquarters in Dickinson, ND.

18 Prairie Business

isher’s diverse portfolio, that includes concrete, asphalt, drilling, blasting, paving services, and equipment manufacturing, as well as various aggregate products, has allowed it to continue to grow. In 2012, Fisher Industries is expected to see a 5 percent increase in sales. “People know of us because of our efforts,” states Curt Kittelson, Sales Manager of the General Steel and Supply Company within Fisher Industries. “We like the tough jobs. If they need something right now, we can react to things overnight.” The 60-year-old family-owned company started from a farm northeast of Dickinson. Today, there are 700 employees and $300 million in sales. Along with the Dickinson headquarters, Fisher Industries has offices in Tempe, AZ, Las Vegas, NV, Reno, NV, Albuquerque, NM, Spearfish, SD, Billings, MT, and Glendive, MT. Fisher Industries crushes an estimated 30 million tons of aggregate each year used for concrete, asphalt, country roads, and decorative projects. In 2007, Fisher Industries secured the largest contract ever awarded by the Nevada Department of

October 2011

Transportation when it was assigned the construction of the I-580 Extension. This project links Reno and Carson City including five bridges and 8 ½ miles of brand new, six lane freeway. The bridge will span Galena Creek extending 1,790 feet and 300 feet tall, making it one of the largest structures of its type in the United States. In November 2004, Fisher industries started work on a $200 million, four year, high-end residential project in Henderson, NV. The job entailed excavating 300 residential lots out of a mountain of rocks. The project site encompasses 640 acres of residential homes that have a view of the Las Vegas Strip. Diversification has been key to the companies’ success allowing Fisher Industries the opportunity to withstand economic downturn. “Then there is Tommy’s vision (owner Tom Fisher,)” Kittelson says. “His vision is to take or make everything the best we can. That means pouring all of our assets into making the company successful.” Fisher believes that the company’s ability to be able to respond to emergency or fast-paced projects,


Fisher Industries in action (photos courtesy of Fisher Industries)

whether crushing, doing asphalt and concrete or manufacturing equipment, provides future opportunities with customers because Fisher Industries is able to provide the service they need and help them be successful. Fisher adds that the company is geographically located so that it can move operations into areas that are experiencing growth, such as moving some crews from Arizona to North Dakota and doing it in quick response. Other key components include the companies’ management team and longevity of the employees. “All can see that vision,” Kittelson states. “We’re doing this to get something done for our customers, as well as ourselves.” The housing downturn has caused some difficulty for the company because there is more competition than before. “Prices have gone down considerably,” Kittelson explains. “Companies are taking work to keep the equipment busy and the people working.” In western North Dakota, welders are becoming difficult to find. “Young people just don’t look at welding,” Kittelson explains. “And the competition to hire welders is high in our area.” One thing that has helped with the challenge is what Kittelson states

THE FISHER FAMILY OF BUSINESSES INCLUDES: FISHER SAND & GRAVEL CO.

is a top-notch benefit package. This package includes good wages, health care expense, and good working conditions. “Now we really have to push our benefits package,” he says. Another challenge is that Fisher Industries is located in an area that is difficult to deliver products. “There are several logistics issues such as trucking,” Kittelson says. In addition, federal money isn’t there for infrastructure projects like before. Again, this leads to heavy competition. Kittelson says there are opportunities in the future. Much of it is dependent on the economy and a federal highway spending bill to upgrade the infrastructure. “We’re a strong company and we are already looking at ways to help ourselves,” Kittelson states. One of the opportunities lies in the international market that includes South Africa, Australia, and Canada. “The South African market is amazing,” Kittelson says. Fisher adds that the company’s manufacturing division has taken Fisher Industries into new industries, like the oilfield, because of its capabilities and desires to take on unique projects. PB Alan Van Ormer - avanormer@prairiebizmag.com

QUICK FACTS: HISTORY: FISHER SAND & GRAVEL CO. WAS FOUNDED IN 1952 IN DICKINSON, ND SALES: $300 MILLION EMPLOYEES: 700 PRODUCT: FISHER INDUSTRIES CRUSHES AN ESTIMATED 30 MILLION TONS OF AGGREGATE EACH YEAR USED FOR CONCRETE, ASPHALT, COUNTRY ROADS, EQUIPMENT MANUFACTURING, AND DECORATIVE PROJECTS.

FISHER READY MIX prairiebizmag.com

19


Economic Development

Foundation eligible for $1 million Talent Dividend prize When Tim Beaton first glanced at the e-mail message, he immediately thought it was a scam. he subject read, “$1 Million for Your City.” Regardless, Beaton, the Executive Director of the Fargo-Moorhead Area Foundation opened the message. The message announced FargoMoorhead’s eligibility for the Talent Dividend Prize, a joint effort of CEOs for Cities, The Kresge Foundation, and Lumina Foundation. It is a $1 million prize, to be awarded to the city that shows the greatest increase, per capita, in the number of post-secondary degrees awarded over a four-year period. The prize is to be used for a national campaign focused on talent development for the winning city. Research by the Talent Dividend Network indicates that 58 percent of a city’s success, as measured by per capita income, can be explained by the percentage of the adult population with a college degree. This research forms the basis for the Talent Dividend Network belief that educational attainment is the biggest predictor of success for cities and metropolitan areas today.

T

CHAR HERSRUD Advancement Officer Fargo-Moorhead Area Foundation cher@areafoundation.org

Though more than 100 cities were eligible for the competition, only 57 cities completed the application. One of the criteria is that a community foundation must be the fiscal sponsor. Beaton, as Executive Director of the FargoMoorhead Area Foundation, completed the application and began meeting with area leaders of education and business. Beaton is convinced that the Fargo-Moorhead area has a strong chance to win the Talent Dividend. “We are competing with some very large cities; however, I believe that our strong focus on education, our excellent institutions, and our growing business community will make us very competitive. “ Meetings with representatives from every area institution awarding two and four-year degrees, The Chamber, and the Greater Fargo-Moorhead Economic Development Corporation have reinforced this belief. “This process, even without winning the $1 million prize, has created an opportunity for the Foundation to convene business and education for the betterment of the entire community, states Beaton. “According to CEOs for Cities research, an increase in the graduation rate of just 1 percent would create a $763 increase per person in the FargoMoorhead area.” PB

Grand Forks Alerus Center November 5-6 Admission $2, kids under 12 free FREE REUSABLE BAG WITH ADMISSION; BRING IN YOUR OWN REUSABLE BAG AND GET IN FOR $1 For more information visit www.prideofdakota.com or become a fan on www.facebook.com/prideofdakota 20 Prairie Business

October 2011



Sales/Marketing

10 steps to better voicemail It’s time to stop thinking of voicemail as merely a necessary evil—use it to your advantage! Treat voicemail as your electronic business card. fter all, a customer’s image of your business is the sum of every encounter they’ve ever had with it, including your voicemails. Here are 10 steps to improve how you use voicemail: Step 1 – Prepare. Before recording your outgoing voicemail, write down a few key points. But don’t totally script yourself—you don’t want to sound like you’re reading. Step 2 – Include the Essentials. In your outgoing voicemail: Include your name and your company’s name. Let callers know they’re connected to your voicemail. We’ve all started speaking because we thought a recording was a “live” person. Encourage callers to leave a voicemail. Assure the caller that you’ll hear their voicemail and respond to it. Include a positive closing statement such as, “I look forward to speaking with you.” Step 3 – Provide an Escape Hatch. The caller may need to speak with someone from your business right now. Give them a chance to dial “0” to opt out of your message and transfer to a receptionist or associate. Step 4 – Don’t Be Patronizing. Voicemail has been around for a long

A

time; we all know how to use it. Don’t waste time by giving callers pedantic instructions (“When you hear the tone…”). Step 5 – Add Energy. Whether you’re leaving a message or recording your outgoing voicemail message, you don’t have to sound bored. You can control your volume, pace, articulation and tone of voice to vary your messages. Try standing when you record your outgoing message. Step 6 – Use Positive Language. Positive language keeps things moving in a forward direction. Words and phrases that carry positive impact include, “I’ll be happy to,” “I’ll be glad to,” “please,” “thank you,” and “appreciate.” Step 7 – Keep it Fresh. If you don’t change your outgoing voicemail message daily, listen to it periodically and revise it, especially if you get multiple calls from the same individuals. Changing your voicemail from time to time demonstrates creativity. Step 8 – Time-Stamp It. Not all phone systems indicate the time and day a call comes in. When you leave a message, state the day and time of your call. It’s also a good idea to let callers know when you’ll be available for a callback. Step 9 – Say it Twice. Whether you’re leaving a message or recording your outgoing message, always repeat telephone numbers. Step 10 – Smile! Smile and be yourself. TOM REGAN Relax and have a little fun with it. You can Expert/Telephone Etiquette hear a smile. View each voicemail as a miniKAT Communications performance. Each and every voicemail regan@bis.midco.net reflects on you and your business! PB

I came to J amestown to serve South Cen tral North Dakota. I look forw ard to mee ting you, Michael D ean, MD

Orthopedic Surgeon Dr.. Mic Dr Michael hael Dean DR. MICHAEL DEAN Trained at Mayo Clinic, Dr. Dean provides general orthopedic care and specializes in: * knee arthroscopy * fracture repair * total joint replacement For an appointment with Dr. Dean call (701) 952-4878. 22 Prairie Business

October 2011

As part of Jamestown Regional Medical Center’s commitment to the community and region, having Dr. Michael Dean on staff gives patients the option of having procedures performed locally.

!)+% &#!( '$" * www.jrmcnd.com


prairiebizmag.com

23


Technology

So you have selected an EMR, now what? So you are going to an Electronic Medical Record (EMR). Now you need to decide what to do with the large volume of patient charts that have built up over the decades.

he following are four options you could consider. First, you can choose to “abstract� your patient charts. Abstracting is a very time consuming process during which your medical staff decides what needs to be included with the EMR and staff type the data into the EMR. The big advantage of this system is that the most pertinent information is inside the EMR. Disadvantages include the tremendous amount of time involved in selecting and typing these records and the concerns about data accuracy. Additionally, these paper files have to be kept under present rules. The second method is to maintain the patient charts in paper format. This seems to be the easiest choice. However, now you must manage two systems and have not taken advantage of saved

T

24 Prairie Business

October 2011


personnel, time, or space. In fact, do not be surprised if your patient chart management expenses increased compared to your pre-EMR days. The third method is to scan your patient charts into your new EMR. This system gets the charts into the main system. However, this is a slow, labor intensive process again driving up your costs. The fourth method is to use a dedicated batch-capture system that can reduce your project time from years into months. This method dramatically reduces the number of steps involved in the process. Ultimately, it enables your staff to eliminate dozens of steps per chart while capturing every page of the entire chart in full color. A batch-capturing system enables you to place all of the tabbed sections in the feeder at once and scan the entire chart in a single step. This system handles the indexing and labeling, and then automatically links the scanned documents to the appropriate patient’s record in the EMR. Whichever methodology you choose, it is prudent to base the decision on initial K.C. INMAN cost, cost to capture archival patient charts, Modern Information Systems, Inc. ease of access to the information, kcinman@ workability with an EMR system, legal moderninformation.com ramifications, and ongoing costs of the system. PB

prairiebizmag.com

25


TECHNOLOGY

COVER STORY

Web strategy critical for business success The last five years has seen web strategy become an increasingly critical success factor for businesses. Laura Caroon Frozen Music Studios Photography

Joe Sandin Onsharp

26 Prairie Business

his includes Social Media, Facebook, Twitter, and blogs. “The use of social media in business is really taking off,” states Joe Sandin, President of Onsharp in Fargo, ND. “Both B2B and B2C companies are finding creative ways to connect with their customers online and gaining valuable insight into their businesses. For us, it’s about helping our clients make the right decision about how social media can help improve their business.” Sandin adds that web strategy, specifically around how to leverage social media, has been the fastest growing service offering at Onsharp. “It has opened the door to so many great ideas for our clients to help them grow and stay healthy in a challenging economy,” he explains. “It’s also an exciting and fun process for our customers.” Corey Vilhauer, User Experience Strategist at

T

October 2011

Blend Interactive in Sioux Falls, SD, states that content strategy – and web strategy in general – provides a blueprint not only for the current site, but for future adjustments and content updates. “It allows a business to develop their own process for updating content, which both empowers employees to support their web and promotes constant updates,” he explains. Luke Petterson, Interactive Director for Absolute Marketing Group, says he is seeing a steady increase of companies developing web strategies. “While not all businesses have a website, most are online and many are looking at upgrading their web presence to make the site more attractive or user friendly,” he explains.

COMPANIES DESIGNING AND USING WEB STRATEGY Absolute Marketing Group, based in Moorhead,


MN, is a full-service marketing communications firm that has the majority of its clients in the FargoMoorhead area, but also has a national presence. The company has a web strategy that includes developing and designing websites for companies, as well as providing support services, media buying, and search engine optimization. Brian Meckler, Marketing Advisor for Absolute Marketing Group, adds that companies are converting their yellow page ad dollars into website investments. “People want to focus more on websites,” he says. Meckler states that it is important to make sure that the website depicts the company. “You don’t want to present a low-end website when you are selling highend goods,” he explains. “Many people view online as a store front. You need to maintain a presence that is appropriate to what your business is. People are slowly coming around to improving their investment.” In Sioux Falls, SD, Blend Interactive specializes in large-scale content management implementations, content strategy, interactive design, and website creation. Blend Interactive feels that the web is content-driven, so sites should be developed with a content-first approach. “This means determining the audiences the site will serve, and the outcomes those audiences expect,” Vilhauer states. “From here, we can create a full content strategy and site plan that navigates the development process.” Vilhauer says there was a time when the majority of time was put into develop and design and the content was just dropped in at the end. “Now, we understand that the most important thing we can do for a user is to provide useful and useable information, entertainment, or instruction,” he says. “By developing a website we are taking our users into account from the very beginning.” Laura Caroon started Frozen Music Studios Photography (wedding and lifestyle photography in Fargo, ND) in 2006 and the bulk of her current marketing happens on the web. Her biggest web presence is found on her blog. “I use the blog to show images from recent photography sessions, inform readers about news and promotions, share fun planning tips with brides, and educate my clients on ways to be more earth friendly,” she states. “I publish new posts at least twice a week to keep the content fresh and to keep it visible to web crawlers.” She also has a website that is updated quarterly and she keeps in touch with clients through Facebook and Twitter. “It takes time to build a strong web presence, but I have found it to be invaluable to my business success,” she explains. The web presence has also helped Caroon grow here business in a short period of time. “In the last year, most of my wedding clients have found me through online searches,” she says. ‘Much of my target market grew up glued to technology, so if I was not highly visible on the web, I would be basically invisible to them. Social media makes it super easy for my

clients to share their images with friends and family with just a click of the mouse. This helps get my name in front of a much larger audience than ever before.” Onsharp is an interactive agency that architects, builds, and supports web-based solutions. They work with their clients through critical details and help educate them to mitigate the risks involved with developing and executing a web strategy. “Our goal is to understand what success means for our clients and create a strategy that delivers on specific business goals,” Sandin explains. “We are not doing our job if our clients can’t look back at their investment with us and say with complete confidence that they received a significant return on investment.” Sandin believes that every company, large or small, needs a web strategy and must think strategically when developing their web presence. “It’s no longer good enough to just have a pretty website,” Sandin explains. “Most companies have a general idea of what they want, but are not sure how to get there. We bring the knowledge, expertise and strategy to the table to ensure our clients are making smart decisions. This industry moves incredibly fast and our clients rely on us to take them down the right path.”

Brian Meckler Absolute Marketing Group

TRENDS AND CHALLENGES FACING STRATEGIC MARKETING

Luke Petterson Absolute Marketing Group

Maybe the largest trend in the corporate world is social media and companies figuring out how social media fits into their business model. “Every company can benefit from social media and it comes down to executing on social media strategies that make sense for your business. Just because one thing worked for one business doesn’t mean it will work for the next. The goal is to find the right mix of strategies to create engagement and excitement for your brand, products, and services,” Sandin states. “What can be even more challenging is when one strategy that used to work well suddenly becomes ineffective,” he says. “Your web strategy, similar to your overall business strategy, has to live and breathe within your organization and may need to be readjusted quickly and often. To be successful, you must embrace a culture of constant change.” Another challenge is devoting resources to keeping the website fresh and current. “If you don’t keep it updated, you don’t give them a reason to come back,” Meckler says. “Businesses need to provide interaction and a fresh site.” Vilhauer believes the major web strategy challenge is finding the right people. “This can be interpreted in two ways,” he states. “We need to find the right subset of users to give us an accurate slice of user opinions and personas. We need to find the right people within the organization to become champions for content creation process. A website is never finished. After launch, it requires constant up keeping and testing.”

It is no secret

that the use of company blogs and social media can lead to greater exposure for your brand. Social media also has the ability to generate customer acquisitions as the graph below shows.

Percentage of Companies Using Specific Social Media Channels and/or Blogs Who Have Aquired a Customer From that Channel

Twitter

41% Linked In

41% Facebook

44% Company Blog

46%

PB Alan Van Ormer - avanormer@prairiebizmag.com 0

10

20

30

40

50

Source: Hubspot

prairiebizmag.com

27


HEALTH CARE

COVER STORY

Essentia, Fargo, ND (photo courtesy of Essentia)

Rural health care seeing change Many health care organizations are finding that once a potential health care professional steps through their doors there is a pretty good chance they are hooked. espite that optimism, many will also tell you that it is tough to bring health care professionals to rural America. “It is a challenge to find professionals that want to relocate into rural areas,” explains Peter Jacobson, Senior Vice President of Clinic and Regional Operations for Essentia, Fargo, ND. Jacobson oversees the operations of 30 clinics within the west region of Essentia. “Some of our greatest opportunities are capturing those who want to live in a rural community. There is an opportunity for people to have a meaningful profession and live in a rural community.” Todd Hudspeth, the new CEO of Jamestown Regional Medical Center, states the difficulty in finding health care professionals sometimes depends on what a health care system is looking for. For JRMC, Hudspeth, who took over the facility on Aug. 15, finds that difficult positions to fill for those in rural communities includes physical therapy, pharmacy, respiratory therapy, radiology, and sometimes nurses. JRMC works with Jamestown College’s nursing program to help fill that need. The business impact on communities in the region is ‘tremendous.’ In most communities, the medical community is in the top two or three employers. “That has a huge impact,” Hudspeth says. According to the membership of the Minnesota Rural Health Association, there is a current need for primary

D

Did you Know… The 2011 Sanford Children’s Gala 12th annual event raised a record $1.1 million to support pediatric programming, services and research. Source: Sanford Health press release

28 Prairie Business

October 2011

care physicians, surgeons, specialty care, and health information technology expertise. MRHA also recognizes workforce shortages in nursing pharmacy and clinical laboratories. MRHA strengthens the rural voice on health care issues through dialogue, education, and advocacy with a focus on enhancing the accessibility, affordability, and quality of health care in rural Minnesota. “I believe some of the same concerns to workforce recruitment are being seen in the larger communities in our region. Not at the level as rural perhaps, but none –the-less some of the specialty’s, in particular, are very hard to recruit for even in the larger communities,” says Judith Neppel, Executive Director of the Minnesota Rural Health Association in Crookston, MN. “Again, well educated individuals are often married to well educated spouses who also need a challenging career so working together as a community to find the right position for both is critical. The spouse must be happy in the community, and in their work, or the retention of the healthcare professional is compromised.” South Dakota Association of Health Care Organizations President and CEO Dave Hewett says that rural medical services have issues that often complicate recruitment and retention of qualified medical professionals, such as aging of current rural health professions, quality of life balance with call time, reimbursement and increase medical care needs of rural patients.


KEEPING PACE WITH PHYSICIANS RETIRING IS A CONCERN “The best strategy tries to get people to come back that have a tie to the area,” Hudspeth explains, adding that the two newest physicians in Jamestown came from within a 60 mile radius. In addition, JRMC has developed a strategy to identify high school students who have some sort of inclination to get into medicine, “We get to know who they are and stay in touch with them,” Hudspeth says. “We can offer financial incentives as well and even provide stipend while in college with a promise to come back.” Jacobson adds that there are many advantages of being part of a health care system. “We are able to bring some of the same technology that is going to be present throughout the region,” he explains. “That is a strength that we bring and is attractive to provider who wants to work in a rural area but has capabilities and backups of a larger system.” Some consider a disparity of income for those who practice in a rural community versus those who practice in urban settings. “Besides the issues of income, the quality of life style issues is a concern,” Neppel says. “So often there is only a few physicians, if there are multiples, sharing emergency call, so that the life of a rural health physician is such that they work long hours with less income than their urban counterparts,” Neppel says. “The lack of collegial support for discussions on acute issues is also difficult. Being responsible to know everything about everything and not having the option of discussing a patient’s condition with a colleague present to offer an opinion in a litigious environment like will live in today, is not a desirable working environment.” Neppel says the health care community is seeing large health care systems buying out smaller rural community hospitals and clinics. “The jury is still out on what that structure will do to rural, but for now it is critical to many

rural communities health care services survival and the resulting rural patient care access,” she says. “Currently, most Critical Access Hospitals (those with 25 or fewer patient beds) are getting by. Many have facilities that are obsolete, falling apart, and they are unable to come up with the capital to do anything about it. The Long Term Care facilities, in most rural communities, are also in financial trouble and haven’t been able to give their employees a salary increase in over three years.” Jacobson says the type of individual that wants to work wants in smaller facility has roots in smaller community. “The more specialized the health care provider comes the more likely they will want to work in larger facility more access to broader array of technology and specialties,” he says. “We must make sure they are using others to the capability that they have been trained,” he states. “This is a key to making the health care work and deliver effective care.” Hewett believes that ensuring that everyone in America is covered by health insurance is a primary concern coupled by the fact that the current health care system is not sustainable. “Health care currently finds itself in a twilight zone,” he says. “On the one hand, health care is being asked to improve patient safety and quality measures and create organizations that are more patientcentric and focused on keeping people well. On the other hand, payment systems that reward volume, not value remain in place.” Hewett does say the good news for South Dakota is that its health care provider community is well positioned to adapt to a reformed health care delivery system. “As a low cost/high quality state for the delivery of health care services and with integrated health care systems already in place, South Dakota’s transition should be relatively easy compared to many other states.” PB Alan Van Ormer - avanormer@prairiebizmag.com

DAVE HEWETT President/CEO South Dakota Association of Health Care Organizations

TODD HUDSPETH CEO Jamestown Regional Medical Center

PETER JACOBSON Senior Vice President of Clinic and Regional Operations Essentia, Fargo, ND Jamestown (ND) Regional Medical Center (photo courtesy of JRMC)

prairiebizmag.com

29


LONGEVITY

COVER STORY Starion Financial

125 YEARS

Craig Larson, JoAndrea Larson, Frank Larson

Ron Harper

Long-time businesses have impact on region Business longevity means job security and a means for economic development in communities across the region.

Basin Electric

50 YEARS

Brian Hayer

S

Warner and Company

100 YEARS

30 Prairie Business

tarion Financial has been around since 1969, but was actually first chartered in 1886 in Oakes, ND; meaning the financial institution has been serving people for 125 years. “We tried to do the best job we could to help people accomplish what they could,” states Frank Larson, who along with his wife, JoAndrea, purchased the bank in Oakes on Jan. 1, 1969. “We have always been concerned about being honest and ethical, as well as providing our customers the best service.” Starion Financial has seen growth. When the Larsons purchased the bank in 1969, there were $4.5 million in assets. Today, that number has grown to more than $865 million in assets. In addition, Starion Financial has branches in Ellendale, BismarckMandan, Fargo, and Madison, WI. Starion will add branches in Bottineau, Dunseith, and Rolla in October. Craig Larson, who is the current President and CEO, states diversification has been the key to the financial institution’s success. “We have evolved to have all types of services that our consumers want,” he explains. “That has been critical – offering what our consumers want and keeping our core values.” Today, Starion Financial has more than 200 employees. There has been a 20 percent growth in employees and a 30 percent growth in assets in the last five years. “A good bank has tremendous opportunities and those opportunities include

October 2011


acquiring other banks,” says Craig Larson, when asked what opportunities lay ahead. Frank Larson sums it up by saying that Starion Financial is a small bank who knows its customers, but at the same time provides the services that the customers need.

HELPING PEOPLE WITH INSURANCE NEEDS Warner and Company, one of the largest independent insurance agencies in North Dakota, has been located in Fargo, ND, for 100 years, and has three branch offices: Kramer Agency in Bismarck, ND, Thompson Insurance in Grand Forks, ND, and Schiller Insurance in Detroit Lakes, MN. The agency has experts providing all lines of personal and commercial insurance, bonds, life and health, and related products to their communities. The agency was founded by Raymond D. Warner and Alonzo Rupert in October 1911. In 1920, Rupert sold his interest to Warner and his two brothers who had joined the firm. In 1930 the name was changed to Warner and Company. Harold Hayer purchased the agency in 1974. The branch offices were acquired during the early 1980s. Brian Hayer and his sister, Denise Magness, joined the agency in the mid 1980s and purchased the agency in 2007, continuing the family business when Harold Hayer retired. “Looking back, it is gratifying to think about all the families and businesses we have helped and provided service during the toughest times of their lives,” says Brian Hayer, President and Chief Executive Officer. “We have been there to help our clients recover and reopen businesses after tornados, move back into their homes after damaging fires, or present checks after the death of a loved one.” Things have changed in the insurance business in 100 years. For example, employees used to type insurance policies and drive Model Ts to work. Today, technology has changed the way Warner and Company does business with clients. “Technology has allowed us to move quickly to respond to our customers, often within minutes,” Hayer states. Hayer adds that insurance is a personal relationship. This means working closely, developing a rapport, and trusting each other. “Our customers have to be able to reveal information that we have to know about to help them in a time of disaster,” he says. Another recent change in the way of doing business is the importance of the Internet. It can be a great source of information, but at the same time consumers can find insurance advice that might not be completely accurate or address all exposures they have, Hayer explains. “This is a complex business. We really need to meet one-one-one to be sure we are addressing their unique needs, completely and accurately,” Hayer states. “Policy coverages are constantly evolving and changing, so our work with clients is never done and neither is our need as agents to study and learn.” Heading into the future, Hayer realizes it is important to hire an innovative, enthusiastic, service minded work force that has new ideas and is savvy about current technology trends. “Pairing those service skills with agents that are sales focused and driven to excellence are the key to providing the client experience that will be successful,” Hayer states. “Our expertise, personal attention to our client’s unique needs, and a service driven culture are what will drive Warner organization’s success into the future.”

BASIN ELECTRIC PREPARED TO BUILD ON 50-YEAR LEGACY Since 2000, Ron Harper has been leading an organization that has been serving people at the end of the electric line for 50 years.

Basin Electric is a consumer-owned wholesale electric generation and transmission cooperative, which has a resource portfolio of more than 4,000 megawatts of electrical generating capacity to supply its members, Basin Electric has 135 member systems that distribute electricity to 2.8 million consumers in nine states spanning the North Dakota to Mexican borders, including: North Dakota, South Dakota, Wyoming, Colorado, Minnesota, Iowa, Nebraska, Montana, and New Mexico. The cooperative has grown from $2.3 billion in assets in 2000 to $5.4 billion at the end of 2010 under Harper’s leadership. One key component of building Basin Electric over the years has been to build alliances not only among member cooperatives, but with other organizations, according to Harper. “Basin Electric was formed in 1961 by a group of visionary leaders who saw the benefits of coming together to build power plants for long-term power supply,” Harper explains. “It was these visionaries that developed long-term generation resources to provide transmission to get the power to their local areas. Today, 135 cooperative members see the value of that continued alliance.” Not unlike its past, however, Basin Electric also faces challenges as it moves forward. Meeting members’ load requirements in a regulatory-constrained environment is one of those challenges. The Environmental Protection Agency is currently proposing a number of rules that have significant implications for coal-based developers. “Discussions are happening that could potentially shut down multiple coal plants by 2020,” Harper says. “We have to ask ourselves how we address those rules and how do we create a viable path for coal? Coal is responsible for 50 percent of this nation’s electric generating capacity. If we don’t have coal, then what? Also, what do these rules mean to not only our energy sources, but this nation’s electric reliability?” Another issue many industries, including Basin Electric, are addressing is an aging work force. “Workforce issues across this country are huge,” Harper says. “Skilled labor is critical and becoming more difficult to replace. These people do a tremendous job, but there just aren’t enough of them because of an aging work force.” Despite a lagging economy, Basin Electric has still experienced load growth. The biggest growth area for Basin Electric is development of the Bakken oil formation in northwest North Dakota. Current projections show that Basin Electric will need at least 1,320 megawatts of resources to meet that development between now and 2025. “We are going to have to look at the best way to serve this load from a transmission and generation standpoint, and we’ll have to consider a variety of energy resources, including peaking stations, gas turbines and others,” Harper says. Despite the complex issues Basin Electric is facing, its vision has remained the same: to supply cost-effective wholesale energy along with products and services that support and unite rural America. “Cooperatives were formed by the people, for the people. As long as we always keep that person at the end of the line in mind, our priorities will be in the right place,” Harper says. We’re here to serve.” PB Alan Van Ormer - avanormer@prairiebizmag.com

Oct. 12, 1999 E T A D IS H T ON

Billion: e population Day of thee 6 United Nations, th According to th date. d 6 billion on this of the world reache

prairiebizmag.com

31


Wind investment

Edgeley-Kulm Wind Farm in North Dakota (photo courtesy of Joy Powers)

creates jobs, but faces challenges Those who are investing in wind energy are finding that jobs are being created. The biggest wind turbines generate enough electricity to supply about

600

U.S. homes. Source: http://environment.nationalg eographic.com

ind energy technology creates more jobs per Megawatt than any other energy technology,” states Jay Haley, Partner for EAPC Architects Engineers, who is in charge of the wind energy program. “That means jobs for Americans in manufacturing, research, construction, engineering, operations and maintenance, insurance and finance, as well as many others. It promotes energy independence and a cleaner environment.” Otter Tail Power Company, headquartered in Fergus Falls, MN, was an early-mover in the wind industry and is one of the leaders in the nation in terms of its percentage of resources from wind. In 2010, Otter Tail’s wind generation was the equivalent of about 13 percent of its retail sales. With a planned wind addition for 2012, that percentage is expected to increase to about 18 percent. “These investments in wind energy are important because the added generation resource provides low-cost clean energy for meeting Otter Tail’s customers’ electricity needs,” states Todd Wahlund, Vice President, Renewable Resources and Risk Management for Otter Tail Power Company. “The vast amount of wind resources in this region helps reduce the overall cost of energy by providing more generation from the resource compared to similarly

W

32 Prairie Business Energy

October 2011

sited wind turbines in less windy regions of the United States. That results in opportunities to add wind resources as part of a least cost mix of resources and to directly benefit Otter Tail’s customers by helping keep rates low.” Otter Tail Power Company owns or has purchase contracts for approximately 183 MW of wind energy. For the purchases, Otter Tail does not make any upfront capital contribution to the project and does not have ownership rights in the project. A project developer funds the development, construction, and operational phases of the project and Otter Tail pays an agreed to amount for the energy the resource produces. For ownership, Otter Tail acquires projects at varying stages of project development, completes project development (where applicable), and funds project construction and operations. Otter Tail owns approximately 75 percent or 138 MW of the 183 MW total. Otter Tail Power Company has invested in and owns three wind farms in North Dakota. These are the 40.5 MW Langdon Wind Energy Center in 2007, the 48 MW Ashtabula Wind Energy Center in 2008, and the Luverne Wind Farm in 2009. Overall, Otter Tail Power Company has invested approximately $300 million in wind generation resources over the past few years and has



TODD WAHLUND Vice President, Renewable Resources and Risk Management, Otter Tail Power Company

34 Prairie Business Energy

grown its wind investments to be about 25 percent of the company’s total investment. For EAPC, investment means different things. “You could invest in a wind development company that plans and builds wind farms, or you could invest in a company that owns and operates a wind farm and sells the electricity,” Haley explains. “There are also a number of publically-traded wind turbine manufacturing companies.” EAPC is not an investor or a developer. The company provides consulting services and engineering services to developers and electric utility companies. EAPC helps customers by providing wind energy assessments that are used to predict the amount of energy that the wind farm will produce so that they can perform their financial analysis, advise them in the selection of the best wind turbine model for their wind farm site, provide detailed engineering designs for the wind farm including the wind turbine layout, the access roads and underground collection system, and the wind turbine foundations. There are challenges and trends related to wind investment.

October 2011

“The wind energy business is complex,” Haley states. “The success of a wind project is dependent on many things; quality of the wind resource, availability of land at a reasonable lease price, availability of transmission lines with adequate capacity, someone to buy the power, and at a price that makes the project financially viable. In most countries, the demand and the price are politically driven. Some countries have provided longterm incentives for wind which provides certainty for investors, while other countries, such as the US, have very short-term incentives that cannot provide the certainty that the industry needs to make long-term investments in new manufacturing plants, infrastructure, and wind farms.” Haley adds that due to the recent financial crisis, it has become more difficult to obtain the financing necessary to build a project. “The requirements of the lending agencies have gotten much more conservative. The wind developer will have to present a more thorough, detailed analysis of the wind resource and the expected energy production,” he says. “This requires more up-front investment on the part of the developer to install more wind monitoring equipment and provide a more rigorous energy assessment. The lending terms have also become less favorable for the developer making it more difficult for smaller developers to compete.” Wahlund agrees that there are challenges in developing and investing in wind generation and some are similar to other generation resources, while others are unique to wind generation resources. One of those challenges is to identify quality sites. Another is to develop them. “Because numerous wind project developers began the process for certain sites and because of potential synergies in constructing larger projects, Otter Tail chose to explore acquiring sites or portions of sites in mid-stage development,” he says. Then there is ensuring transmission availability. “Addressing this issue entails evaluating available capacity as well as securing interconnection rights in a timely manner,” Wahlund states. “As more generation gets added to the transmission system, the availability of transmission becomes limited. This was one of the reasons Otter Tail chose to be an early mover in adding wind resources.” Additional challenges deal with negative perceptions. These include sound, wind reliability, backup power need, and economics of wind resources. In addition, Otter Tail is seeing several trends in wind energy investment.


MAKE YOUR RESERVATION TODAY!

THESE INCLUDE: · increasing investment and ownership by utilities as opposed to power purchase agreements with developers. This could be attributed to the technology becoming more proven with added years of operation. · industry consolidation. This could be a normal business cycle given the large number of both large and small developers in the industry and the significant amount of capital invested in the wind industry over the past several years. · more opportunities to proceed with projects absent a tax investor. Historically, many projects required a tax investor to monetize the significant tax incentives available to wind projects. However, in 2009, a cash grant option became available for wind projects, which provided an alternative that reduced the need for tax investors. Haley adds that in the country’s current situation, one of the best things we can do is to create new products that broaden our manufacturing base, creating new jobs, and new exports. “Generating electricity with wind energy with wind turbines manufactured in the US and using more wind energy instead of fossil fuels will decrease our dependence on foreign oil which will have a significant impact on our trade deficit,” he concludes. Alan Van Ormer - avanormer@prairiebizmag.com

North Dakota Minnesota Michigan Missouri Alberta

Barr’s 500 engineers, scientists, and technical specialists provide engineering and environmental consulting services to clients in industries such as power, mining, refining, and manufacturing, as well as with government agencies, attorneys, and natural-resourcemanagement organizations.

resourceful. naturally.

800.632.2277 www.barr.com 701.255.5460


ONE designing geothermal systems

Veterans Home, Lisbon, ND

Obermiller Nelson Engineering (ONE) Building Consultants has been designing geothermal HVAC systems in commercial buildings since the early 1990’s. NDSU College of Business, Fargo, ND

n recent years, the general public has become aware of Geothermal HVAC systems due to the push for long lasting, economically sustainable heating and cooling building systems. “As more of the general public becomes energy conscience, there will be more and more jobs focused on geothermal systems,” says David Obermiller, Managing Principal and one of the founder’s of ONE. “There has been a large increase for well drilling companies in the area to provide the installation of geothermal well fields in recent years.” A geothermal system in the Upper Midwest typically consists of a series of 5” round wells drilled to about 200 feet deep into the earth. Piping (typically 1” plastic tubing) is inserted the entire depth of the well. These wells are spaced between 10 feet to 15 feet apart in a grid pattern. All the pipes from all the wells are combined together. The large volume of earth that has the wells in it becomes a heat sink that is used to hold the heat from cooling processes in the summer which is then drawn out of the ground and used to heat the buildings in the winter. The water from the well field piping system is combined into larger pipes and routing into the building where it is distributed to “heat pumps”. Heat pumps are machines (about the size and shape of a small furnace) that are capable of drawing energy out of or depositing energy into the geothermal water circulating system. In the winter the heat pumps draw energy out of the water for heating. When producing heat a heat pump cools the water that circulates in and out of it. This cooler water is circulated through the well field cooling the earth around all the wells. This cooling of the well field is then used as the energy for cooling the same building or room in the summer. This cycle of depositing energy and drawing energy out of the well field happens continuously. Depositing energy and the re-use of that energy through a geothermal system is what makes it energy

I

DAVID OBERMILLER Managing Principal/ One of the Founders ONE

36 Prairie Business Energy

October 2011

efficient. The cool energy stored in the ground from the heating process in the winter can be used for cooling in the summer. The heat from the cooling process in the summer is then used for heating in the winter and so on and so forth. “There is often a misconception that the earth itself has some sort of internal heat (from the molten core) that is used for heating geothermal systems,” Obermiller explains. “Not so in our region. A heat pump system that did only heating would cool the ground to the point that no more energy could be drawn out of it in a few years. There has to be a cyclical heating/cooling process for a geothermal system to work.” Obermiller adds that geothermal HVAC systems typically have a higher first cost compared to other buildings due to the cost of drilling all of the wells in the well field. However geothermal systems can have lower energy consumption costs than other systems. To determine if a geothermal system is right for a building the additional up front capital costs must be compared to the energy cost savings. “Commercial and institutional buildings are meant to last from 50 to 100 years. The owners of buildings want responsible long-term economic decisions to be made when they are spending millions of dollars on their building,” he says. “A geothermal system may cost 20 percent more than a conventional HVAC system, but with energy cost savings the additional cost may have a payback of seven years. The payback is what many owners are looking for.” The payback comes from heat pumps having an average of 300 percent efficiency in the heating mode. This means for every 1 kW of energy put into, the customer gets 3 kW of heat out of it. “Geothermal HVAC systems typically make economic sense in areas where natural gas is not available. Since heat pumps operate on electricity they typically have better paybacks when they are compared to heating sources such as fuel oil and


propane,” Obermiller states. “Fuel oil and propane typically cost about three times what natural gas costs for the same unit of heat. While electricity costs about the same as fuel oil and propane per unit of energy, the 3 to 1 efficiency ratio that the geothermal heat pump system provides, typically results in a reasonable payback in energy dollars for the building.” ONE strives to provide energy efficient, economic first cost to their geothermal system designs. An example of this is performing a ground conductivity test prior to sizing the well field. The ground conductivity measures the performance of the ground at the specific building site, and allows the well field to be sized for the exact ground conditions at that location, rather than using general sizing recommendations. This simple test has resulted in hundreds of thousands of dollars of savings for ONE’s clients. ONE has completed some of the largest geothermal jobs in the upper Midwest. ONE recently completed a design to turn the entire campus of the Veteran’s Administration in St Cloud, MN, into a centralized geothermal system. This is the first geothermal system of its kind at any VA Campus in the nation. Another large project is the new Veterans

Home in Lisbon, ND. It is one of the largest geothermal systems in the region with over 180,000 square feet building heated and cooled by a geothermal system. Technological advances in recent years have allowed geothermal heat pumps systems to improve their efficiencies, while also increasing comfort. Obermiller states, “While heat pumps 15 years ago were efficient, there were many comfort issues with them,” he says. “Newer technology has resulted in better dehumidification, variable speed fans control air flow, and quieter units, which has made geothermal systems even more viable in recent years.” The two major barriers for heat pumps are electric utility rate structures and first cost. “If local utilities don’t have a lowered electric rate for heat pumps, natural gas rates (resulting in a gas boiler in lieu of a geothermal system) will be more cost effective for the owner to operate,” Obermiller says. In addition budgets are also limited. As Obermiller explains, “every owner has a budget, and if the increased first cost of the geothermal system doesn’t fit in the budget, it won’t happen.” Alan Van Ormer - avanormer@prairiebizmag.com

DID YOU KNOW... Geothermal energy has been used for thousands of years in some countries for cooking and heating. Source: http://environment.nationalge ographic.com

EAPC Wind Energy conducts Argentine workshop APC Wind Energy in conjunction with its South American office EAPC Sur, conducted a wind energy workshop in Buenos Aires, Argentina in September. “Conducting these workshops in emerging markets allows us to establish ourselves as Consultants and make important personal connections with local companies involved in the South American energy industry”, says Jay Haley, Partner and Director of Wind Energy Services for EAPC. The workshop focused on wind resource and energy assessment techniques and the industry-standard tools used in the process. The workshop was attended by wind industry professionals involved in the South American wind energy market including developers, engineers, scientists, consultants, turbine manufacturers, electric utilities and transmission specialists. EAPC Wind Energy is a full service wind energy consulting firm with expertise in wind resource assessment, energy assessment, wind farm design, and due diligence and has consulted on more than 30,000 MW of wind farm projects. EAPC is also the sole North American sales and support agent for WindPRO, the world’s leading software tool for wind farm design, and is the regional sales agent in North America for JAY HALEY Meteodyn WT the world’s leading wind energy software for Partner/Director computational fluid dynamics, and is also a sales representative Wind Energy Services, EAPC for NRG Systems wind measurement equipment.

E

prairiebizmag.com

37


Dr. Dean Webster, North Dakota State University, Fargo, (center) and graduate students T.J. Nelson (left) and Xiao Pan (right), are among a research group that developed resins from renewable raw crop materials. Their patent-pending process creates biobased resins that eliminate hazardous components such as formaldehyde and bisphenol-A. (photo courtesy of NDSU)

NDSU researchers develop revolutionary biobased technology Several crops produced in North Dakota could play a significant role in biobased resins and coatings recently developed by researchers at North Dakota State University (Fargo, ND). cientists at NDSU have developed biobased resins that may prove to be a “game changer” in coatings and resin technology. The NDSU researchers have developed a family of resins from renewable raw materials, creating resins that eliminate hazardous components such as formaldehyde and bisphenol-A. The resins are based on sucrose and vegetable oils, and can be varied to perform in many applications and industries, according to Dean Webster, professor in the NDSU Department of Coatings and Polymeric Materials. Webster’s research group includes NDSU graduate students Xiao Pan and T. J. Nelson, undergraduate student Adlina Paramarta and Partha

S

38 Prairie Business Energy

October 2011

Sengupta, former postdoctoral researcher at NDSU. The resins developed by the NDSU research group can be made from sugar beets, plus oils from soybeans, flax and sunflowers. When cured, the patent-pending resins show: - Significantly improved properties over current biobased materials and processes - Mechanical properties comparable to petrochemicalbased materials - Dramatically increased renewable material content “These NDSU-developed technologies achieve what few biobased materials have before,” Webster says. “They have vastly improved mechanical properties, reduced


hazardous chemical content and are made from readily available materials and common processes. The technologies have the potential for significantly impacting biobased material markets.” The bio-renewable chemicals market is projected to reach $5 billion by 2015. The new resins developed at NDSU could further reduce reliance on petrochemical-based materials, one of the main components in many coatings formulations. Dr. Webster’s research group found that the epoxidized sucrose ester resins they developed result in materials that are two- to-four times as functional as vegetable oil-based resins. One novel ultraviolet light curable coating developed by Webster’s group cures approximately 10 times faster than existing UV-curable biobased coatings. Another in the family of biobased resins developed at NDSU exhibits properties that make it ideally suited for biocomposite materials, baking enamels and structural adhesives. Another resin demonstrates more hardness and resistance to solvents than petrochemical-based coatings. “Interest in the use of renewable feedstocks in the synthesis of polymers is rapidly increasing, driven by consumer demand for ‘green’ products as well as the tightening of the supply of petrochemicals,” Webster explains. “However, consumers are requiring that the biobased materials have physical properties that match or exceed current high performance materials.” Laboratory research at NDSU has shown that the green technology resins developed at NDSU are far superior to existing biobased materials and comparable to petrochemical-based materials. The newly-developed resins could be used in a variety of settings including construction, architectural, biomedical, marine and electronics industries. The technology may have wide-ranging applications in areas where thermally cured materials are used, such as in protective coatings, structural adhesives, and composites. The resins are synthesized using raw materials, reagents and processes common to industry. “They have the potential to provide a revolutionary impact in some applications replacing widely-used petrochemical-based epoxy compounds,” Webster says. Funding for the biobased coatings research was provided by the USDA Cooperative State Research, Education, and Extension Service under grant number 2007-38202-18597. The United Soybean Board is sponsoring current biobased coatings research at NDSU. The base sucrose ester resins used in this research were provided by P&G Chemicals. Webster’s research is among a broad-based research portfolio in renewable technologies at NDSU, with research funded by USDA, the National Science Foundation, U.S. Department of Energy and entities in North Dakota, including the North Dakota Renewable Energy Council and North Dakota Soybean Council. Webster has been involved in polymer synthesis and structureproperty relationships of coating binder systems for more than 20 years. He is receiving the prestigious Roy W. Tess Award in Coatings from the American Chemical Society on August 29, 2011, during the group’s annual meeting in Denver, Colo. Dr. Webster’s career in the coatings industry includes research and development in the Consumer Division of Sherwin-Williams in Chicago, Ill., and at Eastman Chemical Company. He received his Ph.D. in materials engineering science and his B.S. degree in chemistry at Virginia Polytechnic Institute and State University.

Unlocking oil fields with new technology Finding new oil field technology is important to further unlocking the oil fields in the Bakken. e are performing research that have the potential to develop technology to increase production from oil bearing rocks like the Bakken,” states Steve Benson, Director, Petroleum Engineering at the University of North Dakota in Grand Forks, ND. UND’s Petroleum Engineering program, not only prepares students to find jobs in the petroleum industry, it also emphasizes the development of technical problem solving skills through an understanding of geology, chemistry, physics, and engineering. Michael Mann, Associate Dean for Research, Engineering, and Mines, says oil is developing so rapidly that it is important to catch up with infrastructure needs. “For example, resource extraction itself, we are learning as quickly as we can,” he states. “However, advances are being realized quicker than we can provide new technology. Our program is helping refine the science and optimizing the process of getting oil delivered to market.” Benson says technologies are being developed that improve our ability to search for oil, measure the characteristics of rocks that contain oil, drill and fracture rocks that contain oil, and perform computer simulations to optimize production and field development. The UND Petroleum Engineering program focuses on two directions. The first relies on training students to work in the oil fields. The second is providing a good understanding of geological formations. The program started in August 2010 and to date 21 students are on campus in the program. “We are trying to give petroleum engineering students a strong background in science and technology so they can work in areas ranging from exploration and production to transportation and refining,” Benson explains. “It is not limited.” The research that could lead to new oil field technology begins with understanding properties of rock and also includes how fracking is done to open up the pores to get oil to flow. “We’re still trying to figure out how to get oil out more efficiently,” Benson states. As for research, Benson believes that what is happening will benefit companies in the Bakken and other areas of the country. Alan Van Ormer - avanormer@prairiebizmag.com

W

prairiebizmag.com

39


Community Spotlight

Jason Murray Alexandria Area Economic Commission

Alexandria, MN

Strong core manufacturing pushing Alexandria, MN The one thing that can be said about Alexandria, MN, is that it has a strong core of manufacturing that spurs economic growth.

Tim Hunt Alexandria Clinic

David Kjos Bremer Bank

Dr. Kevin Kopischke Alexandria Technical & Community College

40 Prairie Business

owever, that is just one aspect of community growth that also includes health care, education, retail service, tourism, and biotechnology. “Alexandria is known for its packaging cluster,” states Jason Murray, Executive Director, Alexandria Area Economic Development Commission. Douglas Scientific is one of those unique manufacturers in the community. Fifteen months ago a new 50,000 square foot facility was constructed to develop ultra high throughput laboratory instruments to dispense DNA into a carrier tape. The company has expanded to 55 employees – largely scientists, engineers, and manufacturing professionals – and is preparing a second facility expansion of similar size. “We’re supporting the most sophisticated genomic discovery on the planet,” states Dan Malmstrom, President and Chief Operating Officer of Douglas Scientific. “Our mission at Douglas Scientific is to make our world a better place. Alexandria is a great place to live and build a biotech entity that affects things global, sociological impact.” The company’s success has been driven by a unique laboratory application for plant genomics, and is currently preparing five new laboratory applications in Array Tape

H

October 2011

to expand its global market reach. The Aagard Group is another Alexandria manufacturing company that has developed some interesting products by creating robotic packaging machines for the food industry. Founded in 1997, Aagard is the second innovative business started by CEO Brenton Smith. Aagard’s 75,000 square foot facility houses 110 people focused on “Redefine the Standard” in packaging machinery. “It feels like a lot of growth, but we’re still a small company,” Smith says. Smith adds that Alexandria has lots of innovators with the entrepreneur spirit in their blood. “When you enjoy building a business, it melts into your life,” he explains. “I don’t know if there is more of this in any other area of the country.” Smith believes there can be a lot of power in the Alexandria area manufacturing cluster, which currently manufactures about 6 percent of the packaging machines purchased nationwide. “While we somewhat compete for customers, we significantly compete for talented people,” Smith explains. Aagard and Douglas Machine are both involved in a


prairiebizmag.com

41


Community Spotlight

Alexandria, MN

local packaging, machinery, manufacturing consortium whose goal is to attract, train, and retrain talent. “Right now, the entire industry is doing well,” Smith states. “We’re all looking for talent.” Technical and community college taking on the work force challenge The Alexandria Technical & Community College is working to provide not only the workforce for manufacturers in Alexandria, but also those associated with health care and other companies in the community. The technical and community college, which celebrated its 50th birthday in 2010, prides itself on working with the industries to determine programs. The two-year school is constantly in the top 1 percent of job placement in the nation. “We’re a critical component of the community,” states Dr. Kevin Kopischke, President of the two-year school that has 45 different programs and 4,200 students. When the school started in 1961 there were three programs and 23 students. “We are involved in economic development and we are helping Alexandria become a critical rural regional center.” Kopischke says there is a challenge of skills gap in connecting young people to be more aware of the opportunities for them.

“The banks are very active in our community,” Kjos explains. “We are active working with clients and helping meet their needs. Younger clients are sitting down and working with us to develop business plans.” Kjos adds that recently the numbers of new loans has been low because people are hesitant and the Alexandria region is a very conservative market. “I don’t think we have suffered like in other areas,” he says.

DEVELOPING ALEXANDRIA IN THE FUTURE Dan Malmstrom Douglas Scientific

Coni McKay Alexandria Lakes Area Chamber of Commerce

WORKING TO FILL NEEDS IN HEALTH CARE The health care industry is also in need of the school’s graduates. The community has four health care facilities that work in unison. They include the Douglas County Hospital, Heartland Orthopedic Center, Broadway Medical Center, and Alexandria Clinic. For example, the Alexandria Clinic has grown from 12 physicians to 32 physicians in the past 20 years. In addition, the county hospital has added a new addition that includes a surgical unit and pediatric unit. The hospital is licensed for 120 beds. “The community has very strong programs,” states Carl Vaagenes, Chief Executive Officer, Douglas County Hospital. “When you talk to businesses, when they are recruiting employees, schools and health care is a real asset. They have access to regional health care.” It is estimated that the health care facilities in Alexandria service more than 85,000 people. “We have most of the basic services here,” says Tim Hunt, CEO, Alexandria Clinic. “We have all the facets of a good place to live. Being on I-94 has helped the community. We have easy access to larger communities like Fargo-Moorhead and the Twin Cities.” Hunt adds that it is easy to recruit to Alexandria because of that balance.

FINANCIALLY STABLE David Kjos, President of Bremer Bank in Alexandria, states that the financial industry is healthy in the community and the region. In part, this is true because the agriculture industry is very strong. “Prices are up and crop yields are up,” he states. It also helps that unemployment is hovering around 5.8 percent in July, while much of the state’s average is around 9 percent. 42 Prairie Business

October 2011

Carl Vaagenes Douglas County Hospital

Alexandria Facts: Population in 2010 . . . . . . . 11,070 (Alexandria) Population in 2010 . . . 36,009 (Douglas County) Housing units sold . . . . . . . . . . . . . . 424 (2010) Gross sales. . . . . . . . . . . $619.97 million (2009) Taxable sales. . . . . . . . . . . . . . . $287.35 (2009) Unemployment rate . . . . 5.8 percent (July 2011)

Top 10 Employers: Douglas County Hospital. . . . . . . . . . . . . . . . 646 Alexandria Public Schools . . . . . . . . . . . . . . . 615 Douglas Machine, Inc. (Packaging Equipment Manufacturer) . . . . . 597 Knute Nelson (Nursing Home, Assisted Living) . . . . . . . . . . 367 Douglas County . . . . . . . . . . . . . . . . . . . . . . 358 Tastefully Simple (Direct Selling Establishment) . . . . . . . . . . . 335 3M – Alexandria (Abrasives Division) . . . . . 308 Alexandria Extrusion Company (Aluminum Extruded Parts) . . . . . . . . . . . . . 306 Central Specialties (Road Construction) . . . . 285 Arrowwood Resort & Conference Center . . . . 268

Mayor Dan Ness has been Alexandria’s mayor for the past 11 years. He can list several reasons why Alexandria continues to grow. A few reasons are an active economic development agency and volunteer board, progressive group of professional bankers, and the partnerships with the community and technical college. Another reason is the strong tourism and visitor industry. Coni McKay, Executive Director, Alexandria Lakes Area Chamber of Commerce, says with people doing less traveling in general, that has had an impact on tourism to a degree. “We are nicely positioned between two major destination hubs,” she says. “We didn’t feel the impact of other communities. Having the interstate by us is really important to us.” McKay says what is amazing is that tourism has a huge impact on retail because vacationers tend to shop. “Tourism, by strict definition, is not just people coming on vacation, it also applies to people coming here for other reasons,” she explains. The future looks great for the tourism and industry business, according to McKay. “We have seen increased traffic this year compared to last year. “Even with technology, visitors continue to use our traveler’s center. There is something about walking in to the visitor’s center to find out more about a community.” Ness also believes that the new economic development era in Alexandria is going to have global influences. It also involves expansions in the community. These expansions include: a new police station in May 2010, $32 million hospital expansion, $10 million addition to the Alexandria Technical & Community College, $9 million YMCA project, and a $48.8 million expansion to 3M. In addition, Alexandria has used funds from the JOBZ Minnesota program for construction and job creation. The JOBZ program was developed in 2003 to help stimulate economic development in rural Minnesota by providing local and state tax exemptions to offer assistance to value-added manufacturing and industrial, or high wage service-type businesses. Alexandria has used the program to help with an estimated $65.7 million in construction projects, as well as retaining 780 jobs and creating 164 more jobs. Murray believes there will be continued growth in the manufacturing industry. “It is very stable and currently growing,” he says. Ness adds that the industrial base is a well-kept secret. “People don’t know that some of these companies exist,” he says. “They don’t realize how huge, how modern, and the automation within these facilities.”



Community Spotlight WORK FORCE AND HOUSING STILL A MAJOR CHALLENGE The major challenges that come to the forefront for Alexandria are work force and housing. “The challenge is to connect young people to be more aware of opportunities that are out there for them,” Kopischke says. “We are working to connect high schools and colleges and align programs of study for them to succeed.” In addition, Kopischke states that the community is also working with adults who are re-entering the job market. “The job market is becoming more complex and there are new kinds of skill sets needed,” he explains. Kopischke adds that there are more young people moving back and are becoming involved in critical leadership roles. “That is making a difference,” he says. Kjos adds that the Alexandria community is really a regional center. “People think its 10,000 people, but it is actually more than that,” he explains. But all agree that more needs to be done moving into the future. “Critical investments are needed to take us into the future,” Murray states. “The next two to three years are critical next steps for Alexandria.” PB Alan Van Ormer - avanormer@prairiebizmag.com

&7!/ ,?!6 .75; +--/$" 1 (>99 '75#/ 3*$32>4!" 752 </$=?4/"

5 E>#CDDA .&99 4$9?F"@3 5 E>#CDDA .&99 7!%"@9%% 4$9?F"@3 5 ;DD ?$9?F"@3 ?!%#>B9&% ?C@ 8"/ 756 1:0 -3$ ('))% ;!#>BC#"? .99 -96!@<%) 2/ @49=2* +-0-=.>@&

5 ,CG"@3% 0DC@% ("@?D!<"@3 *-;%2 41%2 :>@9A :C&F9# ,CG"@3%' 5 09&%>@CD =>C@% 5 7!%"@9%% =>C@% 5 +>B9 /8!"#A =>C@% 5 =>?CDDA ,9&G"?9< +>B9 =>C@%

'( 51$63" !5 "3%A3 :5B, ) #<!36C!:8<7?,65; Member FDIC

44 Prairie Business

October 2011



Money

Steamed about the cost of auto insurance?

How to reduce auto insurance costs regardless of your record Everyone is interested in reducing their auto insurance costs. ost assume the best prices on car insurance go to people with the best driving records and no accidents. But what if you— or a family member—has a blemish on your record? Here are some steps all savvy consumers (and their agents) can take to maximize savings on insurance: Take advantage of ‘paid in full’ discounts or automatic withdrawal to eliminate billing fees. Insuring your home and autos with the same company almost always results in savings on both policies of 10 - 20 percent. Increase deductibles on newer cars and vehicles driven by youthful operators. Consider removing comprehensive and collision coverage from vehicles that are eight to 10 years old and on vehicles driven by youthful operators. Have your kids take drivers training like ‘Behind the Wheel.’ This onetime course results in discounts for many years. Be sure that discounts for optional safety features are on your policy. While standard safety features are automatically supplied by your vehicle’s serial number, optional equipment must be specifically added. Some companies offer a multivehicle discount if you have a company car. One thing not to do – sacrifice ‘liability limits’ for a few dollars of

M

DENISE MAGNESS Executive Vice President/COO Warner and Company Insurance, Fargo, ND dmagness@warnerandcompany.com

46 Prairie Business

October 2011

savings. These coverages protect you from lawsuits and cover your injuries from uninsured or underinsured drivers. You can survive the impact of a large deductible or even replacement of a vehicle. It’s hard to imagine the impact of an uncovered loss of hundreds of thousands of dollars on your personal finances. Your agent is the best source for helping you find all the discounts your specific company offers as well as their advice on where not to cut – so be sure to ask for their expertise. Consider calling an independent agent. They will get multiple quotes from the companies they work with, saving you time and money. PB



ViewPoint

North Dakota has bold health care ideas Everybody’s looking to Washington for health care solutions. We’re looking right here in North Dakota. e can’t wait for someone else to fix the health care system. As the debate on implementing health care reform continues, health care costs are rising. And people are increasingly worried about their ability to afford health insurance premiums. Something has to change. Yet no one wants to lose the quality of care they’ve come to expect. It’s time for bold ideas. And in this part of the country, we have a history of bold ideas. We tackle problems head on to find common sense solutions. We roll up our sleeves and get things done. That’s why Blue Cross Blue Shield of North Dakota has already been collaborating with state health care providers on issues related to rising costs and quality of care, and that’s why we’re holding community discussions across North Dakota. We want to know what people have to say about health care.

W PAUL VON EBERS President/CEO Blue Cross Blue Shield for North Dakota asktheceo@bcbsnd.com

In September, we began a series of open forums across the state so we could listen, learn and share ideas and suggestions. These forums will continue through October and into 2012. The online conversation will be ongoing in our blog and on social media outlets. We also surveyed our members and the responses are pouring in by the thousands. Clearly, people want to have a voice in the health care discussion and they have a lot to contribute. The challenges are great, but so is the resolve of North Dakotans. Our goal is to find local solutions and demonstrate to the rest of the country what can be accomplished when we all work together. I invite everyone to join in the conversation, in person or online. Learn more and get involved at http://www.NDHealthCareForums.com. PB

Outlook: Collaboration between agriculture and technology is key to meeting future food demands The economy and economic outlook for the world is getting a lot of discussion. Arguments as to how to turn the ship seem to be exhausted with no real solution agreed upon. e are fortunate to live in an area where one sector of the economy, agriculture, has a tremendous outlook, but only if we pay attention to how some of our political leaders and other industry groups try to influence future decisions. Consider this, the world’s population is projected to increase by 50 percent by 2050, from 6 billion to 9 billion people.1 As countries progress there will also be demand for more food with greater variety. In order to thrive, we need to produce enough food to meet these needs. According to the Food and Agriculture Organization (FAO) and United Nations, food production needs to increase by 100 percent by 2050; 70 percent of that increase will have to come from technological advances. It will take collaboration from all stakeholders in the agriculture and food industry to meet this goal. The role of the American farmers play in this effort is pivotal. There are a number of key discussions taking place that

W

ROGER REIERSON President/Chairman Flint Group and AdFarm in Fargo, ND roger.reierson@flintcom.com

48 Prairie Business

October 2011

will have impact on our ability to meet these challenges. The growing deficit and its impact on the new farm bill is one of them. We must make sure Ag is fairly represented as we consider budget cuts. The other area we are debating is the role of “local” and organic food. Some believe their growth should be at the expense of technology improvements in production Ag. If we are going to meet the challenge of meeting the growing demand for food, we must continue to encourage new technologies that will increase production. Reality is—whether it’s local, natural, organic, or conventionally raised—we need all farmers to be supported in order to meet the demand of feeding the world, as well as catering to opportunities presented by niche markets. When farmers win, we all do. PB 1 2008 Revision of the official United Nations population estimates and Projections; http://www.un.org/esa/population/unpop.htm



Prairie Business to Business

Your business. Our Bank.

1-800-908-BANK • Bremer.com Member FDIC

!"#!#$%&'#($'')#(**+++,

,-.,-,/+++.012+ 3

*4- 6") .+7 ,!5 '3((%

<%?;%AA@;%?, 5:@7A&;%?, A&;%?, 5:@7A& 1%" -#%>:2=;%? 5A@7;$A> 5A@@7;$A>

*"$&#&1-0 ./1!#61&2 '-- 3-,/"04%

+) :-26+$ %'*'6(7:# 888&"5!,/;!31509&/.4

)))*:2=A;?*$#' .;>'1@$4 3 -A"1@ 81!;"> 3 +A%7A@ 3 +A= +A=@#;= A=@#;= 014A> 91@?# 3 6@1%" 9#@4> 3 /;%%A1!#2;> 3 5;#:( 5 9122>

Member FDIC

voice > data > video > television advertising

Reliable voice. Dependable data. Customized video. All with service you can count on. Contact your Midcontinent Business Solutions™ Representative and get connected today.

usbank.com

Call 1.800.888.1300 or Visit midcontinent.biz

www.eapc.net w ww.eapc.net

architects engineers

Member FDIC

Making Your Business Better.

The Financial Link

ZZZ $( 61H[XV FRP


Prairie Business to Business

www.innovators.net

25

CELEBRATING

YEARS

RATES: $125 (2.312 x 1.2) includes color - $250 (2.312 x 2.55) includes color John Fetsch: 701.238.9574 or jfetsch@prairiebizmag.com Brad Boyd: 1.800.641.0683 or bboyd@prairiebizmag.com


Inspire. Peeking out the top of the cold and unfriendly storage shelving where you get your business mail is the colorful logo of a magazine that inspires. Thumbing quickly past the graduate school flyers and latest booklet of promotional trinkets, your hands rest of the glossy pages of a local magazine dedicated to telling your story. People just like you take an investment in magazines by spending more uninterrupted and devoted time than with newspapers, TV or the Internet.* There’s something special about the community and energy you receive from a magazine that understands the thoughts, questions and aspirations surrounding your daily life. Just like vast oceans can be intimidating, the opportunities in business need your confidence and determination.

Let us be part of your journey.

701.232.8893

*GfK MRI Media Day 2010

52 Prairie Business

October 2011

Any Quantity. Quick Turns. Special Offer: 1000 full color postcards (printed both sides) for $99. (Mention Promo Code SP1108 to get this pricing)

Call us today, to take advantage of this great offer.


Higher Genetic Risk for Breast Cancer LIVING WITH A

Sonya Kooima

A T O B E W E L L C O MMU N I T Y H E A L T H EDUCATION EVENT Please join Certified Genetic Counselor Nicole Mattila of Avera Medical Group Sioux Falls for a viewing of the PBS documentary, “In the Family” and participate in a panel discussion on hereditary breast and ovarian cancer syndrome. Sonya Kooima, a previvor who tested positive for the BRCA gene mutation, will share her story.

Living with the BRCA Gene Thursday, October 13 • From 6-9 PM Avera McKennan Education Center 810 E. 23rd Street

Nicole Mattila, MS

To register for this FREE EDUCATIONAL EVENT, go to www.AveraMcKennan.org and click on the events calendar, or call 1-877-AT-AVERA (1-877-282-8372). A meal will be provided for the first 50 respondants.

Visit www.AveraCancer.org for more information.

prairiebizmag.com

53


By the Numbers EMPLOYMENT

(NOT SEASONALLY ADJUSTED) UNEMPLOYMENT RATE July 2011 North Dakota Fargo MSA Bismarck MSA Grand Forks MSA Minot MiSA Dickinson MiSA Williston MiSA Jamestown MiSA Wahpeton MiSA South Dakota Sioux Falls MSA Rapid City MSA Aberdeen MiSA Brookings MiSA Watertown MiSA Spearfish MiSA Mitchell MiSA Pierre MiSA Yankton MiSA Huron MiSA Vermillion MiSA Minnesota Minneapolis-St. Paul MSA Brainerd MiSA Winona MiSA Fergus Falls MiSA Red Wing MiSA Willmar MiSA Bemidji MiSA Alexandria MiSA Hutchinson MiSA Marshall MiSA Worthington MiSA Fairmont MiSA

3.3 % 3.7 3.0 4.7 3.5 1.8 1.1 3.2 3.7 4.5 4.2 4.3 3.4 4.4 3.8 4.2 3.7 3.2 4.3 3.2 4.6 7.4 7.5 8.9 7.0 6.5 7.0 6.5 9.9 5.8 8.1 6.2 5.6 7.1

EMPLOYMENT

July 2010

July 2011

3.7% 3.9 3.4 4.6. 3.0 2.3 1.6 3.8 4.3 4.5 4.6 4.3 3.2 4.3 4.0 4.0 3.6 2.9 4.4 3.3 4.3 7.1 7.1 8.1 7.0 6.3 6.8 5.8 8.1 5.8 8.4 5.5 5.3 7.0

370,573 115,635 61,209 52,316 33,092 17,647 22,958 11,035 13,242 437,985 126,455 66,010 23,055 17,695 18,570 13,240 13,110 12,935 11,625 9,870 6,895 2,793,311 1,731,796 45,798 27,622 30,135 25,071 23,393 20,241 20,155 18,840 14,121 10,961 11,076

July 2010 364,968 116,538 62,334 51.835 33,518 15,984 17,882 11,649 11,640 433,035 123,205 66,195 22,950 17,385 18,525 13,340 13,055 12,620 11,585 9,715 6,875 2,780,658 1,733,840 45,498 27,022 29,317 24,558 23,265 20,177 20,157 18,558 14,208 10,981 11,021

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

CANADIAN BORDER CROSSINGS AUTOMOBILES MINNESOTA

Intl Falls-Rainer Grand Portage Baudette Warroad Roseau

JUNE 2011

% CHANGE /JUNE 2010

TRUCKS JUNE % CHANGE 2011 /JUNE 2010

41095 39069 17860 18756 5425

1.81% 17.98 - 22.76 8.79 - 7.63

1732 1531 589 1020 632

- 16.13% 5.08 - 4.23 36.91 11.86

41095 7024 5912 11984 5763 4527

1.81 - 41.15 11.59 6.39 19.51 7.22

17414 3683 855 2403 998 270

9.54 - 48.75 - 47.19 8.39 - 13.67 - 52.80

NORTH DAKOTA

Pembina Portal Neche Dunseith Walhalla Noonan

Source: US Customs and Border Protection

54 Prairie Business

October 2011

PB

NORTH DAKOTA OIL ACTIVITY Sweet Crude Price/BBL

Production Oil-BBL/day

$91.69 $94.69 $63.14 $60.10

384,678 363,390 315,278 298,060

JUNE 2011 MAY 2011 JUNE 2010 MAY 2010

JUNE 2011 MAY 2011 JUNE 2010 MAY 2010

Drilling Permits 138 154 128 102

August Rig Count

Producing Wells 5,558 5,579 4,979 4,893

192

Rig Count 175 175 125 114

All Time High Rig Count

Source: NDOMB

JULY AIRLINE BOARDINGS BOARDINGS

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

% CHANGE/2010-2011

1,625,407 33,510 41,433 32,150 18,318 14,277 10,433 13,4383 1,413

3.8 - 3.2 23.4 - 11.5 - 5.2 - 6.5 - 5.7 9.8 4.7

Source: US Customs and Border Protection

CANADIAN EXCHANGE RATE 08/24/10 U.S. to Canadian Dollar

07/25/11

08/26/11

$1.06 or $0.9467

$1.00 OR $1.00

$0.99 or $1.01

$0.79 or $1.27

$0.70 or $1.44

$0.69 or $1.45

U.S. to Chinese Yuan

$6.80 or $0.147

$6.45 or $0.155

$6.39 or $0.156

U.S. to Japanese Yen

$84.17 or $0.119

$78.29 or $0.128

$76.62 or $0.131

U.S. to Mexican Peso

$12.92 or $0.077

$11.66 or $0.086

$12.47 or $0.080

U.S. to Euro

Source: Bank of Canada

Data provided by Kingsbury Applied Economics


'&8&123."6$ !, #&320 5% 425)"("6$ &8&*.2"*".# 36( 0&2)"*&0 .5 2-238 +7&2"*3/

,.+"1&3&')-"'*'02 !) 0('$+)01&&1&-%#*'00/



Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.