July 2011
TRANSPORTATION Fostering Economic Development pg .26
ARCHITECTS/ENGINEERS Beating the challenge pg .20
PRIDE OF THE PRAIRIE Small businesses creating jobs pg. 24
pg 32
MONEYpg 41 LEADERSHIPpg 40 TECHNOLOGYpg 43 SALES/MARKETING pg 18 ECONOMIC DEVELOPMENT
pg 42
www.prairiebizmag.com
CONTENTS
Volume 12 No. 7
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From the Editor’s Desk
8
Professional Spotlight
9
Matthew Mohr
10
Prairie News
14
Prairie People
15
Midco Connections expanding
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Company Spotlight: Talented, passionate employees push Indigo Signworks to another level Double digit sales volumes, major acquisitions, and doubling of manufacturing capabilities have helped Indigo Signworks grow. However, company leaders will tell you it is the 85 employees who have taken the Fargo, ND-based company to another level.
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20
Sales/Marketing Tell Me What You Do Cover Story: Architects and engineers beating the challenge The last few years have been challenging times for architects and engineers across the region. It has caused companies to take a look at the way they do business heading into the future.
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Cover Story: Pride of the Prairie: Small businesses creating jobs
26
Cover Story: Rail can foster economic development
28
There are business leaders quick to point out that most of the job growth historically and currently comes from small business.
Railroads were critical to the development of the region. Not only did they provide a way for settlers to reach the area, but the rails also provided a way to transport crops to distant markets. For a period, the rails were abandoned. But now, rail use could be on its way back.
Community Spotlight: Marshall, MN Building the tools for success - Marshall, MN is ready to be reckoned with in the southwest corner of Minnesota.
31
Q & A: Milton Morris
40
Leadership/Management Leading the growth of a community
41
Money - Funds are available to qualified borrowers
42
Economic Development - Small towns make a big difference
42
Viewpoint
43
Technology – ‘To the Cloud’
46
By the Numbers
4 Prairie Business
July 2011
32
Water project expected to assist western North Dakota A $150 million project is expected to supply northwest North Dakota with water to assist in regional growth.
36
Adding additional oil pipeline capacity
38
Greenhouse could lead to more economic development
Since 2006, oil pipelines have been at capacity and companies have been working to expand the pipeline system in western North Dakota since that period.
Business leaders in Jamestown, ND are hoping that a greenhouse facility could lead to more economic development, as well as show that the community is becoming an ‘energy center.’
Next Month In August, Prairie Business magazine will showcase what higher education collaborations do to meet the needs of tomorrow’s workforce. In addition, how will real estate impact commercial building and how does the bidding process impact construction projects?
On the air Join Prairie Business magazine Editor Alan Van Ormer and host Merrill Piepkorn on Tuesday, July 12 at 3 p.m. on any Prairie Public radio station to hear more about the July cover stories. To listen to Prairie Public, visit www.prairiepublic.org/radio/hear-itnow.
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5
From the editor’s desk
For daily business news visit prairiebizmag.com
An SBA Award Winning Publication
Zoned editions focusing on stories in certain areas
Mike Jacobs, Publisher Alan Van Ormer, Editor Scott Deutsch, Sales Manager Tina Chisholm, Production Manager Beth Bohlman, Circulation Manager Kris Wolff, Layout Design, Ad Design
NATIONAL ACCOUNT SALES/GENERAL MANAGER:
Scott Deutsch
In July, our last zoned issue will start in western North Dakota. A zoned issue is one that tells specific stories about a certain region – South Dakota, western North Dakota, and the Red River Valley. or readers of this magazine, the zoned sections are great news. For instance, those receiving the western North Dakota section in this issue will read about the challenges that architects in western North Dakota are facing, as well as understand what is happening in the Great Plains Energy Park in Minot. Readers throughout the region will continue to read about issues pertaining to the three-state region. In the July issue, we are doing a segment entitled ‘Pride of the Prairie.’ Business leaders are quick to point out that most of the job growth historically and currently come from small business. This story talks to unique companies that have been in business for a short time and provides some information for other businesses about struggles and challenges that they may have faced as they continue to grow. Now each of the companies featured are primed to grow into the future. Not all of the articles written will be in the print issue. You can read the rest of the stories on our web site at www.prairiebizmag.com. Continued business success is challenging and our regional architects and engineers know firsthand what that is all about. While many architects across the region have weathered the Great Recession, they still have had to adjust the way they do business to continue to prosper. ‘Architects and engineers beating the challenge’ points out some of these adjustments. Finally, transportation issues have always been important to this region. In this issue, rail comes to the forefront. Historically, there is no question that the railroads were critical to the development of the region. Not only did they provide a way for settlers to reach the area, but the rails also provided a way to transport crops to distant markets. Now, some people in business are realizing the importance and potential of rail once again and are developing projects along the rail systems in our region.
F
701.232.8893 Grand Forks/Fargo/Moorhead/northwestern MN
SALES:
Brad Boyd
800.641.0683 Bismarck-Mandan/ west central ND/north central SD
John Fetsch
701.232.8893 Fargo/Moorhead/eastern ND/western MN
Jeff Hanson
605.212.6852 Sioux Falls/southern SD/southern MN
EDITOR: Alan Van Ormer Editorial Advisors:
701.232.8893 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.
Address corrections:
Scan this with your smartphone's QR Reader to visit our website. 6 Prairie Business
July 2011
Prairie Business magazine PO Box 6008 Grand Forks, ND 58206-6008 bbohlman@gfherald.com
Online: www.prairiebizmag.com
Port of Tacoma:
A Key Part of Your Supply Chain ! Efficient Efficient in intermodal termodal rrail ail facilities and ser service vice b byy BNSF and UP railroads railroads ! More More than 20 transload/DC transload/DC warehouse warehouse facilities within minutes minutes of Port Port terminals terminals ! Named as one of the Green Green 50 Supply Chain Partners Partners by by Inbound Inbound Logistics Logistics magazine For For more more information, information, please please contact: contact:
Vince V ince S Sullivan ullivan Manager, M anager, B Business usiness Development Development
269-469-9105 269-469-9105 vsullivan@portoftacoma.com v sullivan@portoftacoma.com
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Professional Spotlight
Moser went down an unexpected path
PAM MOSER Community Banking President, Retail District Manager, Wells Fargo
Pam Moser will be the first to say that initially, her career path was unexpected. “Now, with the benefit of hindsight and 37 years of experience, I know it was the right one from the start,” she says. or the past four years, Moser has been the Community Banking President, Retail District Manager for North Dakota, South Dakota, and western Minnesota for Wells Fargo. She is responsible for 80 community banking stores throughout the three states. In all, Moser has 37 years in financial services; the past 15 years with Wells Fargo. She received her Bachelor’s degree in Business Education from the University of Sioux Falls, Sioux Falls, SD and is a graduate of the National Personnel School in Boulder, CO. She was one of the first females in South Dakota’s banking industry to enter management in the early 1970s. “Because I was a former secretary, it was very difficult to change the perception of (mostly men) my new role. I was often asked to type letters and perform other secretarial duties in addition to performing functions as a lending officer,” she explains. “I had to draw on my self confidence to politely
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decline those requests (while offering others’ assistance to support them). Over time, my peers saw the value and expertise I brought into my new role and things changed.” The one thing that helped her was community involvement. “When you help others, you get back far more than you give,” she states. “For example, I was involved with the United Way for more than 30 years. That experience helped me better understand the needs of the community and see the bigger picture. It made me a better executive and helped me put the most important things in life in perspective.” Moser is also passionate about the need to have a healthy balance between work and life and she encourages young women to seek that early on and make it a priority. “As a mother and a grandmother, I maintain that balance through exercise and time with my family,” she states. PB Alan Van Ormer - avanormer@prairiebizmag.com
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8 Prairie Business
July 2011
Business Advice
Equipment replacement decisions One of the hardest challenges a business manager faces is trying to decide when to replace an existing piece of equipment used in the enterprise.
ew equipment additions can be evaluated on a cost-benefit and net present value basis rather easily, but replacing what you already have is not so straight forward. A postage machine is a great example. When the decision to add a postage machine with a meter is first made, labor savings, potential postage saving, and pure convenience can all be factored into the decision. Once you have a postage machine, replacing what you have with a new one is not so straight forward. A newer model might be a little nicer and have a few features, but will it save cost or improve productivity to be cost justified? Health care providers generally pursue the newest technologies based on the belief
N
MATTHEW D. MOHR
hepperolson.com hepper olson.com
CEO, Dacotah Paper Company mmohr@dacotahpaper.com.
new technology will provide better care to their patients. If older technology is functional, will new make any difference? If the old equipment has any chance of error, the risks of malpractice, harm to patients, and similar effects can and should contribute to the choice to replace the old. On the other hand, if the old equipment provides proper care and patients are served in the best possible manner; the decision to replace is clouded. Just buying new to have the newest does not translate to the best patient care. Which ever direction a business owner takes, use the old or purchase new, must be justified by profit/productivity improvements over time. PB
C ommercial Commercial His torical Historical Indus trial Industrial E ducational Educational R esidential Residential
701.74 6 . 68 20 701.746.6820 7 0 1 . 8 41 .1 0 0 0 701.841.1000
Grand G rand Forks, Forks, ND B uxton ND Buxton
prairiebizmag.com
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Prairie News
Press releases and photos about business news and events in North Dakota, South Dakota and western Minnesota can be e-mailed to avanormer@prairiebizmag.com for consideration
HOMELAND SECURITY REGIONAL FACILITY TO BE CONSTRUCTED IN SIOUX FALLS The Sioux Falls (SD) Development Foundation has sold 3.46 acres of land in Sioux Empire Development Park III for a new Department of Homeland Security Immigration and Customs Enforcement/Detention and Removal Operations facility. The 30,000 square foot building will include offices, detention areas, garage and storage facilities for regional federal operations. Homeland Security is currently based in downtown Sioux Falls, but the new construction in Park III will give the government enhanced and greatly enlarged space for combined federal duties.
2011 IDEA WINNERS ANNOUNCED Four companies were winners at the IDEA Competition held at the University of Minnesota, Crookston, MN campus. Two of the winners – Craft Night Out and Grand Steer – are located in Thief River Falls, MN. The other two – EquipAll GrappleHoe and LaValley Industries, LLC – are located in Bemidji, MN. Each will receive $10,000 in cash to advance their business idea, plus additional specialized assistance. For more information about the award winners visit the Prairie Business magazine web site at www.prairiebizmag.com.
PERCENT CHANGE IN GROSS DOMESTIC PRODUCT, 2009 TO 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14
North Dakota 7.1 New York 5.1 Indiana 4.6 Massachusetts 4.2 West Virginia 4 Dist of Columbia3.5 Tennessee 3.5 North Carolina 3.4 Oregon 3.4 Vermont 3.2 Minnesota 3.2 Kentucky 3.2 Connecticut 3.1 Iowa 3.1
Source: Bureau of Economic Analysis
BISMARCK-MANDAN RANKED BY FOREIGN DIRECT INVESTMENT MAGAZINE The Foreign Direct Investment (FDI) magazine ranked Bismarck-Mandan, ND as one of the top 10 ‘Micro Cities of the Future,’ and also one of the top eight ‘Micro Cities with an FDI Strategy.’ FDI magazine annually ranks cities in the size category of major cities, large cities, small cities, and micro cities which are cities under 100,000 in population. The ranking for Bismarck-Mandan was the result of the BMDA submitting a very detailed report at the request of the staff of the Foreign Direct Investment magazine based in the United Kingdom.
A&B TOPS IN THE COUNTRY FOR TECHNICAL SUPPORT, CUSTOMER SERVICE A&B Business, Inc., Sioux Falls, SD, has received the ProMasters Elite Award, the highest achievement awarded by Toshiba America Business Solutions, Inc. The award is given to honor the independent dealer with the most outstanding technical support and customer service in the United States. To be eligible for the award, dealers must have surpassed 32 rigorous performance standards, an ongoing qualification process, and a solid commitment to exceptional customer service and support.
GLOBAL HAWK FULL SCALE MODEL GIFTED TO NORTHLAND COMMUNITY & TECHNICAL COLLEGE FOUNDATION Northrop Grumman Corporation presented a RQ-4 Block 10 Global Hawk unmanned aircraft system (UAS) full scale model to the Northland Community & Technical College (Northland) Foundation. The presentation was part of the Red River Valley Research Corridor Unmanned Aviation Systems Action Summit. The model was gifted to Northland Community and Technical College Foundation in support of Northland and the University of North
10 Prairie Business
July 2011
Dakota’s (UND) unmanned systems educational programs. UND provides extensive UAS pilot training and Northland provides UAS aircraft maintenance training. The full-scale model will be displayed at Northland’s aviation campus in Thief River Falls, MN. The RQ-4 Block 10 Global Hawk has a wingspan of 116.2 feet, the length is 44.4 feet, and the height is 14.6 feet. It can fly up to 65,000 feet and has a maximum endurance of 32 hours.
CHAMBERCHOICE AWARD WINNERS ANNOUNCED
EERC PROCESS FIRST TO PRODUCE JET FUEL FROM COAL AND BIOMASS
ChamberChoice Award winners for the Fargo Moorhead West Fargo Chamber of Commerce have been announced. The Small Business of the Year is Maxwell’s – Mosaic, Catering and Café, while Kadrmas, Lee & Jackson, Inc grabbed the Business of the Year honors. Fargo-Moorhead Symphony Orchestra was honored as the Small Not-for-Profit of the Year, while Fraser, Ltd. is the Not-for-Profit of the Year. Joe Sandin, of Onsharp, is the Entrepreneur of the Year. The ChamberChoice Award finalists were selected by a panel of independent judges from the regional business community, who evaluated accomplishments in the areas of business growth, innovation, creativity, community involvement, and unique achievements relating to a specific business or industry. For more information about the award winners visit the Prairie Business magazine web site at www.prairiebizmag.com.
The Energy & Environmental Research Center (EERC) at the University of North Dakota, Grand Forks, ND, has developed a unique refining technologies that can produce jet fuel from a combination of both coal and biomass feedstocks. The EERC technology centers on a unique direct liquefaction process utilizing a coal–biomass feedstock and tailoring the product liquids for U.S. military jet fuel applications. The new fuel is part of the EERC’s long-term effort to broaden the resource base for fuel production beyond petroleum. Enhanced operability, energy security, and reducing aviation’s impact on the environment are drivers toward the use of renewable and nonpetroleum sources for producing jet fuels. Utilization of biomass with coal simultaneously reduces the environmental footprint of the fuel, limits land use in competition with food production, and draws on the vast coal reserves in the United States.
Did You Know that Dun & Bradstreet released a report indicating North Dakota has had the nation’s
July 30, 1863 ON Industrialist Henry Ford, whose assembly-line method of automobile production revolutionized the industry, was born at Wayne County, MI, on the family farm. In 1913 Ford introduced the assembly line and mass production. This innovation reduced the time it took to build each car from 12 ½ hours to only 1 ½ hours.
lowest small business failure rate in each of the past three years. In 2010, North Dakota’s small business failure rate was 67 percent lower than the national average. Dun & Bradstreet experts attributed North Dakota’s low small business failure rate to the state economy’s strong reliance on the energy and agriculture industries. The company also noted that the housing and financial markets, which were hard-hit during the recession, have less of a presence here in North Dakota.
Source: Bismarck-Mandan Development Association
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Prairie News
Press releases and photos about business news and events in North Dakota, South Dakota and western Minnesota can be e-mailed to avanormer@prairiebizmag.com for consideration
BRANDT HOLDINGS RECEIVES PRESIDENTIAL ‘E’ AWARD FOR EXPORTS
AMERICAN BANK CENTER UNVEILS NEW BUILDING
Brandt Holdings, Fargo, ND, was awarded the Presidential “E” Award for Exports by U.S. Department of Commerce Secretary Gary Locke at the Department’s headquarters in Washington, D.C. The “E” Awards are the highest recognition any U.S. entity may receive for making a significant contribution to the expansion of U.S. exports. Brandt Holdings owns and operates 23 John Deere dealerships in a 5-state area, including North Dakota, South Dakota, Minnesota, Nebraska and California. Brandt Holdings exports pre-owned agricultural equipment. U.S. companies are nominated for the “E” Awards through the U.S. Commercial Service office network in 108 U.S. cities and more than 75 countries. Criteria for the award is based on four years of successive export growth, usually accompanied by a rising percentage of export sales within total sales.
American Bank Center, Bismarck, ND, has started construction on a 21,000 square foot financial center in downtown Bismarck. Loran Galpin of Galpin & Associates is developing the site, former location of the Dakota Theater. Galpin expects to incorporate many energy efficient features, including geothermal heating, geothermal cooling and high efficiency glass windows. American Bank Center recently renovated their main office on the opposite corner of the construction and incorporated several energy efficiency measures that resulted in 60 percent savings in natural gas usage. The development is taking advantage of Renaissance Zone incentives. The Renaissance Zone program provides tax exemptions and credits to both residents and businesses for revitalization and redevelopment activities within the Zone. Bismarck’s Renaissance Zone encompasses a 39block area in downtown Bismarck.
July 1, 1968 ON Medicare, the U.S. health insurance program for senior citizens, went into effect. The legislation authorizing the program had been signed by President Lyndon Johnson on July 30, 1965. Former President Harry Truman received the first Medicare card.
ULTEIG MOVES UP ON NATIONAL TOP 500 DESIGN FIRMS LIST Ulteig, in Fargo, ND, was ranked 207 on the 2011 Top 500 U.S. Design Firms listed by Engineering News-Record (ENR) magazine. Ulteig has been consistently included on the annual list. The company was ranked at 223 on the 2010 list and 291 in 2009. ENR, a McGraw-Hill publication, is considered to be among the industry’s preeminent U.S. trade publications. The top 500 U.S. engineering, architectural and environmental design firms list is released annually each April and ranks the 500 largest U.S.-based designs firms, both publicly and privately held.
CLARITY SERVICES, INTERCEPTEFT ANNOUNCE PARTNERSHIP Clarity Services, Inc., a real-time credit services bureau, has selected InterceptEFT, Fargo, ND, to provide account history data for Clarity’s Clear BankTM and Clear Bank ProfileTM reporting services offered to the financial services industry. With this partnership, InterceptEFT will deliver critical decision-making information about a specific bank account such as NSFs, closed accounts, frozen accounts and related data. The data offers Clear BankTM users a more detailed review of consumers’ banking behavior, history and reliability. Clear BankTM and the Clear Bank ProfileTM module also report known bank accounts, status information, behavior codes and related information to help banks and lenders more accurately evaluate applicants.
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July 2011
Prairie People
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.
SCHOLL NAMED DIRECTOR OF AGRICULTURAL EXPERIMENT STATION Dr. Daniel Scholl has been named associate dean and director of the Agricultural Experiment Station in the South Dakota State University College of Agriculture and Biological Sciences in Brookings, SD. The appointment, effective Aug. 22, will allow Scholl to oversee the research of the Agricultural Experiment Station and DR. DANIEL SCHOLL facilitate communication between SDSU researchers, stakeholders, and clients. Scholl completed three degrees from the School of Veterinary Medicine at the University of California, Davis, including a Bachelor of Science in veterinary science in 1985, a Doctorate in veterinary medicine, in 1987, and Master of preventive veterinary medicine in epidemiology in the department of epidemiology and preventive medicine. He received his Ph.D. in epidemiology from the Department of Herd Health and Reproduction State University of Utrecht, the Netherlands.
DR. DAVID BLEHM
WITTENBERG JOINS REGIONAL MEDICAL CLINIC
WAYNE L. WITTENBERG
Wayne L. Wittenberg, M.D., joins Regional Medical Clinic, Rapid City, SD, as a neurosurgeon on the clinic staff. A board certified neurosurgeon, Dr. Wittenberg earned his medical degree at the University of Miami in Coral Gables, FL. He completed his residency in neurosurgery at the University of Colorado School of Medicine in Denver, CO., and conducted a fellowship in spine surgery at the Medical College of Wisconsin in Milwaukee, WI. Regional Medical Clinic is the largest network of primary and specialty clinics in western South Dakota, with multiple locations. Services include Family Medicine, Internal Medicine, Obstetrics/Gynecology, Pediatrics, Adult & Pediatric Endocrinology, General Surgery, Hospital Medicine, Infectious Diseases, Nephrology, Neurosurgery, Orthopedic Surgery, Otolaryngology (ENT), Podiatry, Pulmonology, Rheumatology, Radiology, Sleep Medicine, Travel Medicine, and Urology.
BLEHM JOINS BCBSND AS MEDICAL DIRECTOR
OLSEN PROMOTED AT FLINT GROUP
Dr. David Blehm has joined Blue Cross Blue Shield of North Dakota, Fargo, ND, as a medical director in the company’s Medical Management Division. He has 27 years of experience as a pediatrician, spending the last 12 years at Sanford Health System, Fargo. As medical director, he will provide expertise in childhood and adolescent health care practices. Blehm was born in Mason City, IA, and spent his childhood in Denver, CO, and Bismarck, ND. He earned his bachelor of science and medical degrees from the University of North Dakota, Grand Forks, ND. BCBSND is an independent licensee of the Blue Cross and Blue Shield Association.
Maureen Olsen has been named Director of Motion and Sound for the Flint Group in Fargo, ND. Olsen brings more than 25 years of industry experience to this new position, where she will expand and drive innovation in audio, video and digital techniques for clients served by all the offices of the Flint Group of agencies. Olsen’s previous position was Associate Creative Director and Director/Writer/Producer with Flint Communications of the Flint Group. The diverse clients she has served include Alerus Financial, Blue Cross Blue Shield of North Dakota, Blue Cross Blue Shield of Wyoming, West Acres Shopping Center, Education Minnesota, Nodak Mutual Insurance Company, Hector International Airport and North Dakota State University.
MAUREEN OLSEN
ASSURITY NAMES WORKSITE REGIONAL SALES MANAGER FOR NORTH DAKOTA
MATT JILEK
Assurity at Work®, the Worksite Sales Division of Assurity Life Insurance Company, headquartered in Lincoln, NE, has expanded its Midwestern sales team with the addition of five regional sales managers, according to Chad Bodner, Vice President, Worksite Sales. They will serve distributors and employer-clients throughout their regions in developing opportunities to provide voluntary benefits at the worksite. Matt Jilek will serve worksite producers and employers in North Dakota. Jilek has a strong record of sales and marketing leadership spanning more than 20 years. He consistently was a top producer and increased annual revenue in highly competitive business and institutional markets in the health care industry, including pharmaceuticals and eye care products. Jilek began his career with one of the nation’s largest suppliers to the food service industry, where he was national accounts manager. He is a graduate of the University of Nebraska-Lincoln.
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Midco Connections expanding Midco Connections will expand its operations to a second site in Fargo, ND in September. ased on current projections, Midco Connections is expected to bring as many as 300 new jobs to the Fargo area over the next three years including management, training and service related positions. It is anticipated that nearly 100 new jobs will be created in the Fargo office beginning in the third quarter of 2011. “Midco Connections is a strong company that plans to create a number of good paying jobs for our residents, adding to our economic strength and vitality,� said Kevin McKinnon, Greater Fargo Moorhead Economic Development Corporation President. Midco Connections specializes in serving clients in the catalog and ecommerce industries with about 95 percent of current business funneling through this channel. In addition, Midco also provides call center services for the pharmaceutical, legal and financial markets in a Payment Card Industry (PCI) compliant environment. Midco Connections, a wholly owned subsidiary of Midcontinent Media, Inc. and a sister company to Midcontinent Communications, has a rich history of client retention and quality service to a national base of business customers. From its inception as a business unit of MidcoCommunications, the company has grown dramatically, attributable to its ability to deliver creative service solutions and meet client needs. Midco Connections currently employs a staff of 400 in its Sioux Falls location. PB
B
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Company Spotlight
Indigo Signworks
Talented, passionate employees push Indigo Signworks to another level Double digit sales volumes, major acquisitions, and doubling of manufacturing capabilities have helped Indigo Signworks grow. However, company leaders will tell you it is the 85 employees who have taken the Fargo, ND-based company to another level.
- David Giovannini, General Manager, MFG-South Dakota
16 Prairie Business
e have a wonderful base of talented, passionate employees,” states Bernie Dardis, CEO of Indigo “ Signworks. “We had a one-time infusion of talent, and then came growth patterns where we purchased other companies. By incorporating these families of
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July 2011
companies, we saw growth.” In 2005, the company opened an office in Bismarck, ND, and also purchased Dickson Signs. The next year, the Alexandria, MN facility opened, followed by the purchase of PRI Graphics Group in Fargo and the opening of an
office in Grand Forks in 2007. In 2009, Indigo Signworks brought Cook Sign Company on board. “Each added different types of expertise and client base, which all led to why we are doubling our growth each year,” Dardis explains. Indigo Signworks is a sign company that provides architectural assistance, design and installation consulting, maintenance and repair, and design and layout services. The headquarters is in Fargo, ND, with other offices in Bismarck and Grand Forks, as well as Alexandria. They also have a working relationship partnership with St. Cloud, MN. The majority of the 85 employees are located in Fargo. “Our clients have different levels of expectations in their own organizations,” Dardis explains. “Some have project managers, architects on staff. Others don’t have any of that. We have a diverse client base in which we either guide them along that process or we are expected to meet the specifications set by the company.” Tom Nelson, Vice President of Indigo Signworks, says the employees see a sense of ownership and have a talent pool of different abilities. “There is something unique and special about what we leave behind,” he states. “We have a chance to leave our legacy behind every time we do a project. There is that chance to bring that element of artistic flare and creativity to the product.”
OVERCOMING CHALLENGES TO GROW It has not always been easy for Indigo Signworks. When Dardis first came on board in 2004 he felt they had the right partnership in place, unbelievable passion, and a desire to succeed, as well as a business partner which was exactly what the marriage needed. What was missing was experience. “We also needed a statement to the community that we were ready to go to the next level,” Dardis states. In addition, Nelson says as the market was changing and products and services were expanding, Indigo Signworks was reinventing itself again to meet its customers’ needs. “We keep pushing ourselves and that is okay,” he says. The most challenging part is meeting the expectations of those families associated with Indigo Signworks. “We want to keep them as employees and we are able to provide them at the standard of living that meets their needs and their expectations,” Dardis explains. Nelson adds the company takes that responsibility seriously. “We’re not going to let any other influence, if at all possible, get in the way that these families are being supported,” he says. Meeting those challenges has boosted Indigo Signworks into the upper three percent of the United States in the type of equipment that the company has. Both feel that the Indigo brand is a ‘signature service’ and is constantly evolving. Technology is another significant change that has helped the company grow. “Being on the cutting edge of design software allows us to do our job better and provide a better finished product,” Nelson explains.
KEEPING UP ON ECONOMIC TRENDS Dardis says that everyone has experienced such an interesting 18-24 months. “It was unique,” he states. “I have been doing this for 30 years and not since interest rates were 17 percent did I see such a downturn.” However, Dardis adds that North Dakota bucked the national economic trends because of its vibrant economy, in particular commodity and farm pricing, as well as living in the Red River Valley. Combined with what is happening in western North Dakota, Indigo Signworks is seeing increased growth. Another reason for the growth is pent-up demand. Nelson states that everyone in the community relies on what the public spends its money on. “People were spending money,” he explains. “We were pretty insulated to a lot of those trends. Now we have the pent-up demand. Being conservative, we’re going to be okay here and it is time to get back to work.”
INDIGO SIGNWORKS SEE FUTURE OPPORTUNITIES A lot of this opportunity evolves around the business environment being vibrant in the geographical locations Indigo Signworks is located in. “We have more people coming to us for our expertise and our capabilities. I don’t see any limitations,” Dardis says. “We take pride in the fact that we have not only grown as a digital communication company, we have really grown as a corporate and a community partner.” Nelson recalls that when the company started, it was “Indi who?” “Now they put their trust in our business signage,” he says. “If we can do something to return that favor, that would be great.” Nelson adds that there is an addiction to the sign industry and the employees get attached to it. “There is such a great pride in it,” he says. “They share their work with their families because they are proud of it. There is an addiction to the industry and it spreads beyond the doors and the people who work in the field and in this building on a daily basis.” Now many in the region look at the Indigo Signworks’ product as a testament to the talent and the ability that is in this region, Nelson explains. “It shows we can compete on a national level,” he says. “The main focus is regional, but we also have the unique ability to create anything in the country.” PB Alan Van Ormer - avanormer@prairiebizmag.com
ON July 31, 1790
The first U.S. Patent Office opened its doors and the first U. S. patent was issued to Samuel Hopkins of Vermont for a new method of making pearlash and potash. The patent was signed by George Washington and Thomas Jefferson.
GROWTH OF INDIGO SIGNWORKS: FEBRUARY 2005 – OPENED AN OFFICE IN BISMARCK, ND MARCH 2005 – ACQUIRED DICKSON SIGNS JULY 2006 – OPENED AN OFFICE IN ALEXANDRIA, MN JANUARY 2007 – ACQUIRED PRI GRAPHICS GROUP JANUARY 2007 – OPENED AN OFFICE IN GRAND FORKS, ND FEBRUARY 2009 – ACQUIRED COOK SIGN COMPANY prairiebizmag.com
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Sales/Marketing
Tell me what you do How to talk about your B-to-B company in the public arena rom time to time, I run a trivia night at a local pub. It’s great because you have all these people with a wide range of careers, skills and education all vying to be the best at general, random knowledge. Since then, I’ve had the chance to meet and mingle with a few of the regular players. The other night, I spoke to a young guy who has been playing for a while. We got talking and it turns out, he’s a chemist. You don’t meet a chemist every day, so I asked him, “What do you do?” I can tell he gets this question a lot because he had an answer prepared. He said, “I put molecules together and see how they react to light.” At this point, he could probably sense that I wasn’t too marveled at his description, so he went on. “Imagine trying to meet a girl. We could put her at one end of the bar and wait for you to go over, talk to her and see if you two hit it off. Or, we can do what I do and put you two in a phone booth and see what happens. The result might be the same, but we’ll know if things work out a lot faster.” Blamo! Remember that old expression, “it’s not rocket science” as a way to poke at people who didn’t get something. Well, this was quantum mechanics! AND I understood it. In one simple analogy, I was able to identify what he did and why it’s important. Best of all, his job sounded like the sweet gig I thought being a chemist would be. The story he told me was some of the best advertising I’d heard in months. There was no gimmick. There was no hype. There was no spin. There was no generic, empty language. You can sell anything and tell any marketing story - no matter how complex your industry is- by answering the question “what do I do?” After that, pretend you’re talking to a five-year-old and keep asking the what’s, why’s and how’s until you come up with a simple visual that’s ready for a dinner conversation. That’s integrity in advertising. You don’t need spin, buzzwords or heavy amounts of Photoshop to tell a good story and make people interested in your company. Sometimes all you need is a concise, clear visual to help people see the world from your point of view. This is especially true when a business-to-business company wants to have a public presence. Go back to the chemist. When he’s talking shop in a B-to-B publication, he’d probably talk in angstroms (units of length), but in the public arena, he’d be wise to use nanometers as the measurement or try to explain how small something is
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JASON JACOBSON Writer Absolute Marketing Group, Moorhead, MN jason@absolutemg.com
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July 2011
with a visual concept like he did with the phone booth analogy. Maybe the bigger moral is this: Don’t be shy about what you do. Everything is interesting. Another one of the regulars at the trivia night makes windows. Another is in human resources. Another is a professional pool player. Another works in billing. My cohost works with the mentally disabled. I work in advertising. Every story is cool. Each business has a reason for being. Forget the fluff. Forget walking on eggshells. Forget the political agendas. Tell your story in a way that anyone can understand and your business will have a public audience that thinks what you do is exciting, engaging and worth paying attention to. PB
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ARCHITECTS/ENGINEERS
Architects and engineers beating the challenge
The last few years have been challenging times for architects and engineers across the region. It has caused companies to take a look at the way they do business heading into the future. ompetition is fierce!” exclaims Kevin Donnay, Vice President for Widseth Smith Nolting, a company with a footprint in three states in the region headquartered in Crookston, MN. “We have seen Twin Cities firms branching out to greater Minnesota and the Dakotas much more than ever before. In some cases clients are expecting low fees to match the tough economy, but they think services should remain consistent. So our challenge is to help clients scale their expectations to what they can afford and make sure they receive real value in the end rather than simply a lowball price today and disappointment down the road.” Bob Ames, President of Foss Architecture and Interiors in Fargo, ND, sees major changes in the way technology is used not only in the workplace, but also the technology that go into the buildings. “Buildings have become much more advanced,” he explains. “We are preserving the life of the building.” Chad Mason, Corporate Communications Manager for HR Green with offices throughout the country including Sioux Falls, SD, Sioux City, IA, and St. Paul, MN, believes that architecture has taken on “the chin” harder than engineering. “The Design industry struggled nationwide in 2009-2011, seeing a 12 percent decline in revenue,” he states, however, adding that HR Green has seen a 13 percent increase in revenue during that period. “It is partly due to our diversity.” HR Green’s architectural services had specialized in building renovation. The firm was never an industry-leading architecture firm. They do have architectural services, but that has been downsized due to the diminished demand and the tightness in lending that has impacted the market. Now, HR Green has reorganized its company over the past
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Julie Rokke, Architect and Principal, YHR Partners.
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July 2011
Holy Redeemer, Marshall MN
year into five businesses in response to industry trends. The two major businesses are transportation and water, services in which the company has specialized for most of its 98 years of existence. HR Green has added governmental services, in particular, program management and public-private partnerships. A fourth trend is energy, which is predicted to be a strong portion of the economy. The fifth is senior living, which Mason says is unique among engineering companies. “This is one way we are able to grow revenue in a down economy. We are more involved in the life of the project,” Mason explains. “We design, build, own, and operate senior living facilities.”
FOSS ARCHITECTURE MAKES A LIVING ON INSTITUTIONAL PROJECTS Foss Architecture and Interiors, Fargo, ND, originally started in 1898 in Elbow Lake, MN, and has made its living on doing institutional projects like health care, education, and civic government. However, the last few years because of the recession, Ames admits that there are fewer projects and agrees that more architects are competing for fewer projects. “(For us) a lot of our business we have is maintaining relationships we have with clients, making sure we are meeting their expectations, as well as staying abreast of technology and design trends,” he explains. “We need to provide them with an increasing level of expertise.” Many of the new projects that Ames is seeing deals with college’s and universities’ upgrading facilities. “Building technology has changed in the last few years,” he says. “Colleges and universities designed in the 60s and 70s have to be updated.”
Bob Ames, President, Foss Achitecture and Interiors
Bobbi Hepper Olson, Owner, Hepper Olson Architects
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ARCHITECTS/ENGINEERS In addition, Ames states that wellness centers have been a new trend on campuses, as well as the medical field’s continuing change of how medical services are delivered.
REDOUBLING EFFORTS TO STAY IN TOUCH WITH CLIENTS AND PROSPECTS Like Foss Architecture and Interiors, Widseth Smith Nolting makes it a point to continue connecting with clients and prospects. “We have challenged our project managers— and in fact, all our staff—to pay close attention to their relationships with clients, and keep their ear to the ground constantly. We are pursuing a wider variety of projects now and focusing on the client-types that have funding for capital improvements,” Donnay explains. “The fact that we have seven locations and multiple disciplines has allowed us to compensate for slower sectors with healthier ones. We held the line on our marketing budget throughout the recession and that has paid off: we’ve taken a hit like everyone else, but it could have been a lot worse.” The firm has also expanded its services, acquiring a water resources consulting company in 2010. “This is a niche market that also provides work for our other divisions,” Donnay states. “We also added a landscape architecture unit and that has opened some new doors for us. We have expanded geographically, taking our project expertise to other states.”
TECHNOLOGY CHANGES ASSISTING YHR PARTNERS Julie Rokke, Architect and Principal for YHR Partners in Moorhead, MN, says the biggest changes in how business is done is the result of technology that is available. “There are many new tools that assist us in illustrating our solutions. This in turn has sped up the process and the expectations,” she explains. “Another change is the variety of materials available for projects. Products come from all over the world and offer a huge variety of options for our clients.” YHR Partners, established in 1983, is an architectural firm that has six owners. The firm provides planning and architectural services in the upper Midwest. YHR Partners were the architects for the Good Samaritan Center project in Fargo-Moorhead, as well as the Aurora Elementary School in West Fargo. They are also working with Holy Redeemer in Marshall, MN to restore the interior of the historic church. Trends the company is seeing are tighter schedules, energy efficient design, and more technology in buildings. Some of YHR Partner’s clients have found financing difficult affecting work flow in the office. “We had several clients wanting to go forward but they could not find financing,” Rokke explains. “It appears that some of those difficulties are going away.” Even though things have changed, YHR Partners is still finding work in the areas they are experienced in including institutional work, schools, health care and religious facilities.
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HEPPER OLSON INTERESTED IN HISTORIC PRESERVATION Bobbi Hepper Olson, the sole-owner of a woman-owned architectural firm headquartered in Buxton, ND, would like today’s design trend to shift toward the preservation and reuse of historic buildings. Hepper Olson would rather see buildings brought back to use instead of being torn down and rebuilt. Many buildings just need a “little TLC” and some deferred maintenance addressed. “Tearing a building down is not always the best solution,” Hepper Olson says. “Even new buildings require maintenance and upkeep.” Hepper Olson Architects, Ltd has designed solutions for a wide variety of building types. Along with their passion for historic preservation and adaptive reuse, the firm’s scope also consists of the new construction of affordable housing, educational facilities, retail, industrial, and commercial facilities. Hepper Olson feels the architectural and engineering design professions continue to change with advances in technology. “Computers and 3D imaging have expanded the parameters for designing new facilities and renovating the old,” she explains. “The ‘Green’ movement has engaged a more environmentally responsible method of design, incorporating recycled content and material reuse in new and historic buildings.”
INTO THE FUTURE Teaming with specialty firms is a growing trend throughout our business, Donnay says. “Getting a piece of the pie is better than nothing. Sometimes it’s a pretty big pie,” he explains. “We are currently teamed with some very large players—firms with a national or international presence—on projects that we might have had a hard time bringing in on our own. Assembling the best possible team is critical to landing projects, and we are quite content to fill whatever role it takes to get the work.” Widseth Smith Nolting has also shared more work among offices, which Donnay says helps keep our labor utilization rates from tanking when things slow down in a certain area. “Our water resources division has been at capacity for some time,” he adds. “Our bridge work has remained steady throughout the recession. We are seeing signs that manufacturing, industry, and large retail are on the uptick.” Ames believes the economy is generally turning around. “A lot of clients who have been holding off, are thinking about getting caught up with projects that had been put on hold,” he explains. “Green design continues to be a trend. Clients are being more focused and more aware of Green designs and energy efficiency.” Then there is the building information modeling (BIM.) Traditionally, we generated all drawings in a two dimensional format,” he says. ‘Now, we are modeling three dimensional; the idea being eliminating some of the conflict that might occur during construction. The reason we are changing is because we can be more accurate in the product we are producing.” PB Alan Van Ormer - avanormer@prairiebizmag.com
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PRIDE OF THE PRAIRIE
Small businesses creating jobs There are business leaders quick to point out that most of the job growth historically and currently comes from small business.
im Weelborg, Director of Enterprise Institute in Brookings, SD, states that small businesses are a catalyst for job growth and are able to respond to their customers and adapt to change quickly. Along that theme of small businesses creating jobs, in this issue of Prairie Business magazine, we talked to several unique businesses in the region.
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PEDIGREE TECHNOLOGIES SOLVING THE UNIQUE QUESTION OF WHAT TECHNOLOGY CAN DO Pedigree Technologies, in Fargo, ND, is finding answers to technology questions. “We provide system software that enables our customers to connect to their fixed or mobile assets and equipment in “real-time,” states Alex Warner, CEO and Founder, Pedigree Technologies. “Organizations that stay connected to their people, plants, and equipment – even the service vendors they use, can create tremendous operational efficiencies, which is a great message in a down economy. The technical category often used to explain what we do is called “Machine-to-Machine” communications.” When the company commercially launched in 2006, the first real struggle was to understand the technology’s real-business value. “If you cannot correctly gauge what the technology can or cannot do you are going to have some unhappy customers early,” Warner says. “We’ve become very good at bringing new technology to our customers and giving them the peace of mind and support that works for them.” Pedigree Technologies sees potential growth in industries with heavy operations such as oil and gas, production agriculture, construction, rental equipment, and buildings and facilities management. The company likes to say that they are building software for “Operations People.” For example, they believe you can remotely diagnose what’s wrong with a piece of HVAC equipment before you dispatch someone and communicate with a field service rep. “We provide solutions for industries that are looking to streamline their operations,” Warner states.
FRESH PRODUCE: MODERN AGE, MODERN THINKING MARKETING FIRM During the down economy, marketing dollars were held onto tightly so it was important for Fresh Produce, in Sioux Falls, SD, to prospect new business actively and at the same time make sure every concept delivered to existing clients maximized impact and justified the investment, says Mike Hart, President of Fresh Produce. Mike Hart, President, Fresh Produce
24 Prairie Business
July 2011
“It was challenging, but it strengthened Fresh Produce and set us up for the success we are experiencing now,” he states. Fresh Produce is a full-service advertising agency that is focused on ideas. The agency has the ability to purchase media, create, and produce print, radio, television, outdoor, guerilla, interactive and direct marketing campaigns. “We’re confident in our ability to put all of our ‘full-service’ disciplines to work generating ideas for any marketing campaign,” Hart states. Hart admits that the marketing world is constantly evolving, and feels there is growth potential. The firm values the creative process and developing lasting relationships with clients. “Technology can make long distance relationships a lot easier, but I don’t ever want it to replace the authenticity of a handshake,” he says. “That kind of relationship, one of true collaboration, is what we’re committed to.”
THE WILD TRIVIA TOUR IS UNLIKE OTHER BAR-STYLE TRIVIA CONTESTS The Wild Trivia Tour, in Bismarck, ND, is a product of Wild Inspire a brand of team trivia in which a unique scoring system rewards teams for their depth of knowledge instead of just one point for a correct answer. “Our scoring system (and custom developed software for the host) keeps all teams in the hunt for the top spot even right down to the last question of the night,” states Scott A. Wild, President of Wild Inspire, Inc. The Wild Trivia Tour can be found at bar leagues, corporate parties, conferences, family and high school reunions, as well as any other occasion where large groups gather and want to be entertained. The main struggle for Wild as a sole entrepreneur is writing all the questions. On the other hand, Wild sees growth potential. “We host approximately 75 trivia events per year and will be branching our services into an online membership site that will allow others to start and run their own trivia hosting business with our software and blue prints,” he says. “We also offer question subscriptions to help reduce some of the time and stress on other hosts.” For more ‘Pride of the Prairie’ visit the Prairie Business magazine web site at www.prairiebizmag.com. PB Alan Van Ormer - avanormer@prairiebizmag.com
Alex Warner, CEO/Founder, Pedigree Technologies
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TRANSPORTATION
Rail can foster economic development Railroads were critical to the development of the region. Not only did they provide a way for settlers to reach the area, but the rails also provided a way to transport crops to distant markets. For a period, the rails were abandoned. But now, rail use could be on its way back. huck Jepsen, President of Harrold, SD Terminal, says that businesses are realizing the importance and potential of rail once again. He is currently negotiating with three businesses that would build along the rail line because of the building loop track structure he is devising in central South Dakota. “It does foster economic development,” he states. Jepsen had been operating a bird food packaging facility in Harrold, but sold out because customers were demanding more corn be handled. The new facility opened in the fall and in the first five weeks, 4,000 trucks went through. “There is that type of demand to move grain,” he says. “Now, the railroads are working with us to build facilities to move grain to the West Coast.”
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26 Prairie Business
July 2011
Not only is it transporting the grain, but Jepsen says it is adding 15-20 cents additionally to each bushel that goes into the farmer’s pockets. “This led to the conclusion that there are opportunities out there,” he states. He then decided to develop two shuttle projects along the rail line. The first is a 1.5 million bushel facility near Harrold that will load up to 70,000 bushels an hour. The second project is near Miller. It has just received approval to move ahead. A 2.5 million bushel facility with the capability to place bunkers and at least two pits that can dump 25,000 to 30,000 bushels an hour is now being designed. And there is possibly a third project being conceived near Kimball. This would include a $20 million grant package that will connect Mitchell and Chamberlain by rebuilding that rail
line for a shuttling service. It would include four million bushel facilities, four dump pits, allowing 100,000 bushels an hour. It will also include an up to 25,000 ton fertilizer plant. At least two companies are vying to build in Kimball. Jepsen says these opportunities will continues as long as China, India, and countries along the Pacific Rim stay hungry for what the United States can provide in corn and beans. “This trend is going to go away from traditional products like wheat and sunflowers,” he says. “Someone has to handle grain. It wills others to come in and build additional shuttle facilities.” Rail has always been an important component for American Crystal Sugar Company, located in Moorhead, MN. The company ships 70 percent of its products by rail. Rail is important in getting products to the customer, as well as coal from Montana. Frank Latta, Packaging Warehouse Manager for American Crystal Sugar Company, states that the company feels that the rail service is one of those relationships we view as critical to being successful in the Red River Valley. “As long as rail is the least cost of transportation, it will remain a critical component for us,” he explains. Many agree that rail is much cheaper than trucks in transporting goods. “Just the efficiency of moving it by rail is so much cheaper if you are close to the rail,” states Ron Martin, Vice President, International Logistics, Midwest Motors Express, Inc. in Fargo, ND, who works with exports and imports to bring products in from around the world by ocean or by air.
“Now the railroad has become more centralized and efficient,” he says. Martin states the trend is that railroad is being as efficient as they can and move as fast as they can. “In the future there are just going to be larger hubs,” he says. “Rail still has an impact on the way we do business. Rail is hugely important because it is so efficient.” Latta says that from the railroad side, that streamlining and wanting larger quantities would be their desire, because that makes them more efficient. “For us, we need more flexibility,” he states. “We have customers constantly changing their demands.” Service is always a critical component, Latta adds. “Trying to get a train into the Red River Valley when there is a blizzard or out when the area floods is difficult,” he explains. “It takes a great deal of communication working with rail to get service because we need the right kind of food grade rail cars to get our products shipped on time and to our customers when they need them. Sometimes that can be a tough job for this region.” Jepsen believes a main challenge is continuing to find capital. “For $20 million to $30 million projects it is difficult to find a large enough bank that is willing to understand the grain business,” he states. “The other challenge is getting the towns to realize the opportunities this represents and being able to source employees in a rural area.” PB Alan Van Ormer - avanormer@prairiebizmag.com
Prairie Engineering, P.C. recognizes the importance of energy conservation and environmental friendly construction practices and continues to be a leader in designing energy efficient mechanical and electrical systems. Innovative energy design is incorporated in all types of design including business, institutional, industrial, and educational facilities. Prairie Engineering, P.C. utilizes modeling software to design efficient lighting systems, geothermal well systems and ventilation heat recovery systems. Prairie Engineering, P.C. maintains an active membership with the US Green Building Council regularly attends energy conservation programs. • Geothermal Well Field Systems • Water to Water Heat Pump Systems • Heat Pump Hybrid Systems • Variable Flow Pumping Systems • Domestic Water Heat Pump Preheat • High Efficient Heating Systems • Heat Recovery Ventilation Systems • Energy Efficient Lighting Systems Randy J. Axvig, P.E., LEED AP, Mechanical Engineer Jeremy J. Butman, P.E. Electrical Engineer 619 Riverwood Drive, Suite 205 Bismarck, ND 58504-4304 Phone: (701) 258-3493 prengbis@btinet.net
Lon E. Drevecky, P.E. Mechanical Engineer Jason L. Hunze, P.E. Electrical Engineer 720 Western Avenue, Suite 204 Minot, ND 58701-3700 Phone: (701) 852-6363 peminot@prengr.net
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Community Spotlight
Marshall, MN
Building the tools for success Marshall, MN is ready to be reckoned with in the southwest corner of Minnesota.
Snapshot Population:
13,680 Labor Force Size:
7,555 Bachelors Degree or Higher:
36.72% Household Median Income:
$48,151 Job Growth Rate: -
1.93% Source: Department of Employment and Economic Development (DEED)
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outhwest Minnesota State University has invested in more than $100 million in facilities over the last 10 years. Highway 23 is an interregional corridor that was originally constructed as a bypass that has since drawn commercial and retail activity on both sides of the thoroughfare. Menards has opened its newest and largest supercenter floor plan that business leaders believe will even add more economic development in the region. Avera Marshall has announced plans for the construction of a 22,500 square foot medical clinic. “I have seen a lot of changes in the community,” states Bill Mulso, Associate Vice President for Advancement at SMSU, who has been at the university for 18 years. “It is pretty exciting to see the investments in different priorities.” Marshall School Superintendent Klint Willert says he is seeing a business community partnering, being creative and innovative and the school district is using that to build awareness among students about career opportunities that exist.
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July 2011
“(Now) they know they have opportunity to come back to Marshall and have a quality job and wage,” he says. “We’re embracing the talents of our community and aligning our efforts. It doesn’t happen everywhere. We have been able to do that because of partnerships and collaboration.” Cal Brink, Executive Director of the Marshall Area Chamber of Commerce, who has recently taken the lead of the region’s economic development group, says Marshall has the ability to attract companies because of its unique work force and small town atmosphere. We can provide a taste of both,” he explains. Marshall is also doing things to involve not only the people in the community, but those living in outlying communities within Lyon County. In May, the first Lyon County Business Summit was held at Marshall High School and more than 250 people gathered in the Schwan’s Performing Arts Center to learn more about ‘My Marshall,’ a Lyon County Business Retention and Expansion Survey, as well as increased
activities of local businesses. “This is about telling the public what we are going to do to ensure that our best days are ahead,” Brink states. “My Marshall is all about economic development and betterment of the community.” Ben Martig, City Administrator for the City of Marshall, who provided a presentation on the business retention and expansion survey, adds that the community needs to work together. “We need to work towards solutions and come to agreement on priorities.” In order to continue growing a vibrant business community, Brink has added to his job by leading the local economic development group into the future. “We think this will be the right mix,” Brink says, adding that the city, Chamber and county are all trying to accomplish the same thing and this will allow the three entities to grow as responsibly as it can.
TRENDS THAT BOOST MARSHALL According to the 2010 Census data, Marshall’s population is now 13,680. Marshall grew by 945 people from 2000 to 2010, a 7.4 percent increase from the 2000 Census. Marshall’ population increase is comparable to the Minnesota statewide average in growth and substantially more than seen in the southwest Minnesota region that overall is seeing population decline. Consistently low unemployment rates have kept Marshall growing. There is also a strong concentration of manufacturing, retail trade, finance and insurance, as well as public administration employment. Marshall is the largest city and largest employment center in southwest Minnesota. The community is also a labor importer drawing workers
from surrounding cities and counties. The low unemployment rate has helped The Schwan Food Company, which has been a fixture in Marshall for many years. The community is where its roots are located and where its largest employee base exists. “A primary factor that sets Marshall apart from many rural communities is its commitment to the concept of growth,” states Greg Flack, President of The Schwan Food Company. “I think it starts with a will and plan to move forward into the future. That vision is then backed up with the investment necessary to support future growth. “ The Schwan Food Company is launching new product lines and contemporizing the business model of the Schwan’s Home Service in 2011. In addition, the company is pursuing acquisitions and joint ventures to accelerate growth, which will expand the business and create more jobs and opportunities in locations where the company operates. Since 2010, Schwans has hired 170 new corporate-level employees in Marshall. Marshall is also in the heart of agriculture country. This not only helps the local economy, but also allows SMSU to develop programs associated with agriculture that help retain young talent. The university has ag programs relating to ag and food sciences, natural sciences, and environmental sciences. SMSU has also developed a unique four-year Culinology® program that blends the culinary arts with the science of food. In addition, SMSU joins the Marshall School District as pillars to
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Community Spotlight
Marshall, MN
develop an educational presence that retains that young talent. In addition, the two educational entities developed a safe pedestrian passage under Highway 23 that connects the university and high school. “It shows the foresight to see how the two institutions work together and how everything needs to be connected together,” Mulso says. “It could be a hub right there that connects everything going multiple connections.” Highway 23 is a hub for development. Menards moved in next to Wal-Mart on the east side of Highway 23 and more is expected. Restaurants are being planned, as well as department stores, more clothing stores, and an amateur sports complex that will include a hockey facility, restaurant, hotel development, and other retail shops. Harry Weilage, Director, Marshall Community Services, states Marshall is perfectly positioned in the area for volleyball, hockey, and amateur sports tournaments. “Sports tourism is economic development and parents continue to invest in their kids’ activities,” he explains. “I don’t care how bad the economy is. We continue to have successful tournaments in this community.” Brink adds that everyone wants more places to shop and more places to eat. “I think we’re starting to see a trend that the community is starting to understand the more they support local shopping and eating, it greatly enhances the odds of helping bring new businesses to town due to our spending more dollars in Marshall,” he explains. In addition, Brink states that Menards opening started a snowball effect. “Many businesses in town have seen an increase since the day Menards opened including some competitors,” he says.
Greg Flack, President, The Schwan Food Company
Ben Martig, City Administrator
Harry Weilage, Director, Marshll Community Services
A COMMITMENT TO A HEALTHIER COMMUNITY Developing the Highway 23 pedestrian underpass was one way that the community shows its commitment to a healthier community. Marshall has also developed safe trails in the community and expanded the bike trail. “We talk about we are the biggest small town,” Martig says. “We have a lot of strong assets in the community that helps us to grow.” In addition, Marshall is developing a downtown Memorial Park that includes a beam from the World Trade Center from 9/11 that was brought to the community in 2002. The steel beam will be the centerpiece of the park, which includes a pedestrian bridge over the Redwood River and memorial pavers, and will be formally dedicated on the 10-year anniversary this September. In March, Avera Marshall decided it would build a 22,500 square foot medical office building. The new facility will be adjacent to the hospitals existing clinic and will provide 40 additional exam rooms, testing, and lab space. Completion date is expected by December 2012.
REGIONAL CENTER IN SOUTHWEST MINNESOTA While Marshall’s economy suffered during the recent
recession (losing -4.1 percent of covered employment from 2005 to 2010), it also saw an increase of 13.9 percent of construction jobs during that same period. The state lost nearly a third of its construction employment (30.9 percent.) Marshall also saw an increase of 12.2 percent (compared to a -5.9 percent statewide decrease) in wholesale trade employment. Also, health care and social assistance gained 6.9 percent between 2005 and 2010. The statistics are important, because Marshall prides itself on being the regional center in southwest Minnesota strategically located between Minneapolis-St. Paul and Sioux Falls. It allows the community to maintain its rural character, but also be in close proximity to larger areas, Martig says. It also means that the community has to develop a labor pool that includes those between 19 and 30 for any possible business expansion or relocation. “When you have businesses coming in it is about labor s hare, labor trainable; it’s about jobs,” Weilage states. “To have that type of age group with that kind of education attainment is a critical factor when negotiating.” In addition, Weilage says young families moving to Marshall want everything. “An educated labor force will not sacrifice their children’s education for jobs,” he explains. The City of Marshall is opening up new development and infrastructure in the community’s industrial parks. “I am amazed in local companies and the interest in expansions,” Martig says. “Getting infrastructure in will give us an advantage.” Investments are being made at the local airport, as well as growth opportunities in manufacturing and building the assets of the ag companies for development opportunities.
SEEING A CHANGING LANDSCAPE Cal Brink, Executive Director Marshall Area Chamber of Commerce
Bill Mulso Associate Vice President for Advancement, Southwest Minnesota State University
The one change Weilage has seen is a commitment to quality. “The community finally understands curb appeal is critical to recruitment. Marshall is a working community, now we have understood it is not just good enough to have a job. There is a job, there is a connection, and there is an education. Expectations have increased in this town.” Willert has been in Marshall for seven years and believes the community has a much stronger, collaborative focus than before. “”We have moved to stronger sense of regionalism,” he says. “As Marshall goes so goes the region. As the region goes so goes Marshall. That has been a real significant change that has occurred over the last several years.” PB Alan Van Ormer - avanormer@prairiebizmag.com
Top 10 Largest Employers
US Bancorp
The Schwan Food Company
Turkey Valley Farms
Avera Marshall Regional Medical Center
Source: Reference USA and www.MnProspector.com
30 Prairie Business
July 2011
Southwest Minnesota State University Hy-Vee Walmart Supercenter
ADM Marshall Public Schools Customer Elation
Q & A Milton Morris
Business continues to change Milton Morris, President and Owner of Morris, Inc., in Fort Pierre, SD, continues to focus on diversification in building his business in central South Dakota. ilton Morris, President and Owner of Morris, Inc., in Fort Pierre, SD, continues to focus on diversification in building his business in central South Dakota. “The departments feed off each other,” Morris says. “The downside is that you have to be an expert in different fields.” Morris Inc. started as Morris Irrigation in 1970. Morris expanded his service by installing pivot irrigation systems. Then in the 1980s, Morris started installing sewer, water, and utility services, later adding a concrete redi-mix plant. In the 1990s, the company expanded into surface mining of aggregate materials and asphalt production. Recently, Morris, Inc. started production of personally engraved landscaping boulders, granite counter tops, rock fire tables, and memorials, along with adding a full-service manufacturing facility where crews fabricate equipment for the coal and aggregate mining industries. In 2010, Morris, Inc. celebrated its 40th anniversary. The business environment has changed over the 40 years that Morris has been running his company. For example, 20 years ago he did not know what Human Resources was. Now he has fulltime personnel in human resources. In addition, he has one full time person that handles IT. “You have to be on the leading edge to keep up with the changing world in technology,” he states. One trend that Morris is seeing in the construction business that operates is the importance of training and working with his employees. Morris is also finding that the work in South Dakota continues to be steady. “We never have a slow time and we are able to
M
MILTON MORRIS keep quality people,” he says. In the past, a lot of people came off the farm, raised in the environment, went to work, and were not afraid to work. Now, it has changed where high school and college students are not standing in line to get the jobs. Morris feels that the company’s success comes from the premise of if somebody else can do the job, why can’t his business do it. “I wasn’t growing earlier because we didn’t have quality people,” Morris explains. “I’m not also afraid to take chances. I understand what it takes to do the job and get them up to the next level.” Morris, Inc. is one of the largest employers in the Fort Pierre area. “We do all the little things well,” he says. “We like a challenge. If someone says we can’t do it, we find a way to do it.” PB Alan Van Ormer - avanormer@prairiebizmag.com
July 16, 1997 ON The Dow-Jones Index of 30 major industrial stocks topped the 8,000 mark for the first time.
117 23rd Street N • Fargo, ND 58102 www.abbusiness.com 701-235-5217 • 800-477-2425
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Water project expected to assist western North Dakota A $150 million project is expected to supply northwest North Dakota with water to assist in regional growth. ene Veeder, Executive Director for the McKenzie County Job Development Authority, says the project will help the region find an economic way to get quality water from the Missouri River for rural and city residents. Charles Vein, President for AE2S in Grand Forks, ND, adds it will be a domestic water supply system that will meet the peak demands of the domestic users. “The unique feature of this is that we are also going to be selling extra capacity water to the oil industry,” he states. “Most of these systems already do this individually. Now it will be a centralized system.” Earlier this year, the North Dakota State Legislature passed a law that would fund $110 million of the total project. A water treatment plant, that is headquartered in Williston, ND, currently has a 10 million gallons a day water capacity and will have additional filter systems added that will increase that to 14 million gallons a day in the next two
G
(comtinued on page 34)
AE2S honored for work on T Western Area Water Supply project
AE2S (Advanced Engineering and Environmental Services, Inc.) has been honored for its work on the Western Area Water Supply (WAWS) project. he Williston Area Development Foundation presented a regional achievement award to AE2S and the water boards that helped turn WAWS into legislation.
WAWS is a project that will deliver high-quality drinking water from the Missouri River to people who live in Williams and McKenzie counties in North Dakota, as well as the communities of Williston, Ray, Watford City, Stanley, Wildrose, Alexander, and Tioga, ND. Inadequate water supplies have led to water quality issues that are plaguing the region. On May 3, 2011, following intensive work and discussion by AE2S and the water boards, Gov. Jack Dalrymple signed a bill allocating $110 million in state financing for the newly-created Western Area Water Supply Authority. In addition to providing drinking water to rural areas in northwestern North Dakota, the water system will bring excess capacity water from the system closer to the area’s booming oil fields, which will in turn help pay for the system and have (comtinued on page 34)
32 Prairie Business Energy
July 2011
(Water project - continued from page 32)
years. Future projections are that the project could produce 28 million gallons of water a day. AE2S is currently designing the project that is expected to start later this year and completed in 2012. It will include pipelines that will transport water to the communities of Williston, Watford City, Stanley, Tioga, Wildrose, Ray, Crosby, and Alexander. The Western Area Water Supply (WAWS) Authority, consisting of the City of Williston, McKenzie County Rural Water District, Williams Rural Water District, R&T Rural Water Association, and the legislative-appointed BDW Rural Water System, will own and operate the supply and transmission system. The WAWS will make direct sales to different entities, who in turn will sell water to individual homeowners and businesses. The project is being funded from the State Water Commission, State General Fund, and the Bank of North Dakota. Water sales to the oil industry are expected to pay for 80 percent of the project.
Project Sponsors: City of Williston Williams Rural Water District BDW Rural Water System McKenzie County Water District R&T Rural Water Association
(AE2S honored - continued from page 32)
additional benefits such as lessening wear and tear on roads. Water is crucial to the technologies that help extract oil from the Bakken formation. The award presented to AE2S recognizes the firm for its “foresight, vision, determination, drive and enthusiasm in improving the quality of life and diversifying the economic base of the region.” Sharing the honor were the boards involved in the legislation of WAWS: R&T Water Supply Association, McKenzie County Water Resource District, Williams Rural Water District, and Burke Divide Williams Rural Water. “During slower economic times, the respective boards acted quite independently,” says Tom Rolfstad, Williston Economic Director. “These boards all rose to the occasion to find a comprehensive solution to a very unique set of problems. It has been a real case of teamwork and AE2S is also recognized for bringing these groups together, developing the vision, and making the project saleable to the Legislature and the respective partners.” Denton Zubke, McKenzie County Water Resource District Chairman, agrees. “There are too many people to thank, but AE2S deserves a large amount of the credit, as without them, we would not be where we are today,” Zubke states. “Investment in infrastructure such as water will pay dividends for decades into the future. We have been very pleased with the progress to date.” AE2S specializes in water, wastewater, stormwater, municipal, geomatics, structural engineering, electrical engineering, instrumentation and controls, and financial services. AE2S has offices located in Williston, Watford City, Dickinson, Bismarck, Fargo, and Grand Forks, ND; Great Falls and Kalispell, MT; and Moorhead, Maple Grove, and Eagan, MN. For more information, visit www.ae2s.com. Alan Van Ormer - avanormer@prairiebizmag.com 34 Prairie Business Energy
July 2011
Veeder explains that the project is needed because of the shortage of groundwater, low quality water in the region, and the oil industry’s use of water. “We are all competing for the same groundwater,” he states. “The Missouri River just makes sense.” Veeder uses the example of his home community of Watford City. “We have doubled in size,” he states. “The growth patterns show that these people want to live in outlying areas and they are restricted on where they live because of the availability of water.” Over the next 20-30 years, Veeder expects that an adequate water supply will attract other industry. “We see this as part of our economic development portfolio,” he explains. “The importance of getting this rolled out in the next two to three years can’t be underestimated. It is unbelievable the type of growth out here and you have to respond to it. It is one of the amazing projects I have worked on.” Alan Van Ormer -avanormer@prairiebizmag.com
Northern Plains Commerce Centre
North Dakota’s Premier Transload Facility The Northern Plains Commerce Centre is a Rail to Truck transfer facility offering long haul cost efficiencies of the rail in combination with the short haul flexibility of trucking. • Forest Products • Construction Materials • Wind Farm Components
• Pipe • Culvert • Equipment and Machinery
Daily rail service with access to the BNSF Railway and Canadian Pacific. Services include • Rail to Truck Transfer • Secure Storage • Order Management • Inventory Control • Origin and Destination Trucking Construction ready building sites from 10-180 acres. Operated by Mallory Alexander International Logistics 1901 Northern Plains Drive Bismarck, ND
701.255.6700 www.npccbismarck.com
Benefits to the plan Meets the regional energy and domestic water needs Delivers water into the oil fields: Reduces trucking road miles Reduces road operations and management costs Reduces accidents Saves lives Financially responsible project ... that will use revenues from bulk sales to pay for a majority of the project without increasing the rates of existing residents Flexible phased plan... can be implemented quickly Serves... the best long term needs of the state and region
Enbridge:
Enbridge Enbrid ge iiss co committed mmitted to to
A Partner in Creating a Brighter Future for North Dakota Communities
to our pipe pipeline line ho host st ccommunities ommunities and the the sstate tate of NNorth orth DDakota akoota through in creased jjob ob increased opportunities, retai opportunities, retaill pu rchases, prope rty purchases, property tax payments, paymentts, and and tax community iinvestment nvestment community partnerships. partnerships. Enbridge, we ar re At Enbridge, are delivering pipe line delivering pipeline solutions for for o the Williston Willistoon solutions Basin today, today, while while Basin working to build a strong strong working ffuture uture u for our host throughouut communities throughout Dakota. North Dakota.
Estimated project... is three years from the start date to being fully operational Source: North Dakota Oil Country Water Plan
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t is very important to add additional pipeline capacity,” states Enbridge spokesperson Kesley Myhre. “It is important for producers and our customers to get the oil to market.” Justin Kringstad, Director of the North Dakota Pipeline Authority, adds that in order for the oil industry to keep growing there are two questions that must be answered:
I
“
Adding additional oil pipeline capacity Since 2006, oil pipelines have been at capacity and companies have been working to expand the pipeline system in western North Dakota since that period.
36 Prairie Business Energy
July 2011
1. 2.
HOW DO WE GET THE OIL OUT OF WESTERN NORTH DAKOTA? HOW DO WE MOVE OIL WITHIN THE WILLISTON BASIN ECONOMICALLY AND SAFELY?
The North Dakota Pipeline Authority works with the companies to help them understand the oil play, as well as offer support through the state and federal government. The North Dakota Pipeline Authority is a state agency that started in 2007. At that time, the Authority was seeing transportation constraints and the way those constraints were suppressing oil price in the Bakken, Kringstad explains. “It has a negative effect on the mineral owner, well operator, and the state,” he says. Currently, there are three major options for pipelines in the Bakken. One is the Enbridge System that transports approximately 210,000 barrels of oil per day. The Tesoro pipeline transports 58,000 barrels of oil per day, and the Butte Pipeline from eastern Montana to Wyoming transports 118,000 barrels of oil per day. Kringstad says he does not have any hard data, but estimates that 60,000-70,000 barrels per day extra needs to be transported by rail. There are at least four different pipeline projects being proposed or underway to help meet those and future oil needs. The TransCanada Bakken MarketLink is expected to start mid to late 2013. It will allow oil producers to ship up to 100,000 barrels of oil per day from the Williston Basin to major market hubs in Oklahoma and Texas. A second is the True Company ‘Baker 300.’ This will help increase oil pipeline capacity into Wyoming. Currently, it handles 118,000. By the end of 2011, that oil flow will increase to 150,000, and in 2012, will increase to 200,000 barrels of oil per day. The third is the Plains Bakken, which will ship up to 75,000 barrels of oil per day 100 miles from Trenton, ND to an existing pipeline along the Canadian and Montana border. Then there is the Enbridge Bakken Expansion Program. Currently, the company is shipping 210,000 barrels of oil per day. By the end of 2013, the company expects to add another 120,000 barrels of oil per day. “The demand for space on our pipeline system has exceeded our available capacity,” Myhre says. ‘There is an increasing amount of oil production in the state. Pipelines are the safest and most efficient way of transporting that oil. The more pipeline capacity we can add, the less trucks we will have on the roads, which makes it safer it for all of us living and driving in the oil patch.” Enbridge has two projects under construction. The first is the
Beaver Lodge Loop project. This will loop an existing pipeline or place another pipeline adjacent to the existing pipeline system. It will run from Enbridge’s Beaver Lodge Station through Stanley to the Berthold Station. It will also include an upgrade of the existing stations. The Bakken Expansion Project will replace 11 miles of a newly reactivated pipeline, which runs from Berthold to the Canadian border. Enbridge is putting in a pump station at Lignite, ND and another pump station at Kenaston, ND. Total cost of the projects on the United States side of the project is $370 million. There will be some expansion work on the Canadian side of the border at a $190 million investment. When asked if more oil pipelines are needed, Myhre states that Enbridge builds pipelines to meet the demand of projects. “We are continuing to explore opportunities and the needs of our shippers,” she says. “We will continue to explore opportunities and build projects that meet the shippers’ needs.” Kringstad says challenges remain. “It takes three to five years for a major pipeline system to get up and running,” he says. “Everyone is working hard to better understand what North Dakota’s petroleum industry will look like in the coming years to ensure transportation keeps pace with production growth.” Then there is the gathering side and the number of wells being drilled. “Will we have enough pipeline crews?” Kringstad asks. “What about the winter weather challenges?” Kringstad adds that some uncertainty has been removed since 2008. “We understand the play a lot better now. Alan Van Ormer - avanormer@prairiebizmag.com
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Greenhouse could lead to more economic development Business leaders in Jamestown, ND are hoping that a greenhouse facility could lead to more economic development, as well as show that the community is becoming an ‘energy center.’ hatever works in North Dakota will work everywhere,” states Lance Brower, North Dakota State University Extension Agent in Jamestown. “If we are able to pull off something like this in North Dakota, the world can learn from it.” The original concept was to have a 100 acre facility that uses steam from the Great River Energy plant near
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38 Prairie Business Energy
July 2011
Spiritwood, ND. Now, the idea is to start with 10-acre facilities and build upward. “This could be a huge business,” states Jim Boyd, Past President of the Board of Directors of Jamestown/Stutsman Development Corporation. “The vision is still there.” A $150,000 feasibility study is being considered to determine location, finances, marketing, and the business side of the greenhouse facility that would produce different vegetables and fruits. The original location of the greenhouse was near the Great River Energy Spiritwood Station, which would allow the facility to use some of the plant’s steam for heat. “Now we have a lot of questions and not a lot of answers,” explains Connie Ova, Chief Executive Officer of the Jamestown/Stutsman Development Corporation. “We have to make a decision on what, where, and how we are going to do this project. We are planning for a first of its kind in the world.” One portion of the development corporation’s strategic plan involves alternative energy projects. Along with the greenhouse, it includes electric generation at the Spiritwood Plant, as well as the construction of a corn bioenergy plant. The plant started out as a 20 million gallon cellulosic project. Studies showed that corn might be the most cost effective feedstock for a plant that large because wheat straw is not the prevalent in that area of North Dakota. Farms have gravitated toward row crops, mainly corn and beans, Ova states. Now the JSDC, along with its partners – Great River Energy, North Dakota Department of Commerce, Inbicon, Blue Flint Ethanol/Headwaters Inc., Fagen Engineering, PowerStock, and North Dakota Farmers Union – are looking at a two-phase project that includes a 50 million gallon bi-energy plant fueled by corn and an 8 million gallon cellulosic biofuels plant. “The greenhouse concept came about from all of this,” Ova says. Brower adds the greenhouse or what he prefers to call
the project ‘controlled environmental agriculture,’ would give Jamestown another brand. “We are known as the Buffalo City,” he states. “Controlled environmental agriculture is an extreme safe source of food. The potential is phenomenal. “It would also be great if they come here for a Center of Excellence for Controlled Agriculture,” he continues. “That is what I am envisioning.” Boyd adds that it started out as a plan to locate the greenhouse next to the bioenergy plant. “We were thinking that steam would heat the greenhouse,” he explains. “It has not been that attractive right now, but we are not ruling it out.” The greenhouse project will not only provide fresh produce, but it will also save on energy and transportation costs. “There is a lot of fuel costs transporting the produce from areas such as Mexico and California,” Boyd says. Brower adds that the group envisions using much less energy that is constructed on the same kind of scale in the world. “To be energy conscience and be able to feed people at a lower cost is what we are interested in,” he states. “It would allow us to save energy if we produce it locally. North Dakota is poised to do great things with energy just because of our cost.” Then there is the water issue. It is estimated that one head of lettuce grown in a field takes 150 gallons of water, Ova says. “It a greenhouse one lettuce takes one gallon,” she explains. “This is significant. It is time for all of us to realize that water is a huge issue.” For Brower, this is a huge concept. “Economically, tourism, energy, safe foods – Centers in the world for Controlled Environmental Agriculture is the direction we want to go with this,” he states. “It is also going to be synergetic. Not only will it create jobs for Stutsman County, it will also be advantageous for other growers who are either doing or wanting to do the same type of concept. “We are not here to compete against them,” Brower explains. “We are here to help them. The project is not geared to take away markets from anybody.” Alan Van Ormer - avanormer@prairiebizmag.com
Proposed Jamestown/Stutsman Development Corporation Controlled Environmental Agriculture Facility These are conservative estimates of economic effect from the yearly operations of the controlled environmental agriculture business:
Direct impact: - - - - - - - - - - - - - - - - - - - - - - - - - - - -$11,549,158 Indirect impact: - - - - - - - - - - - - - - - - - - - - - - - - - - - -$1,135,906 Induced impact: - - - - - - - - - - - - - - - - - - - - - - - - - - -$2,329,384 Total impact: - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$15,104,448 Direct jobs: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -62 Indirect jobs: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -58.9 Induced jobs: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -24.2 Total jobs: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -145 Source: North Dakota State University Extension Service
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Leadership
Leading the growth of a Community There’s no shortage of advice on how to lead. Amazon.com lists over 66,000 results under books about “leadership.”
f you digest even a small fraction of the overwhelming amount of research and advice on leading, you quickly become aware that much of it is contradictory and conflicting. Even a cursory reflection on history’s great leaders reveals widely differing approaches, with equally successful results. Contrast the defiant determination of Winston Churchill with the passive resistance of Mahatma Gandhi, for example. Both were able to lead their nation through extremely difficult, dangerous conflicts – but with completely different styles and strategies. Part of my job is to lead communities, at least with regard to growing their local economies. Significant progress in economic development only comes through significant changes in the community’s approach to economic development. The old adage holds true here, “If you always do what you’ve always done, you’ll always get what you’ve always got.” So I’ve spent a great deal of time pondering how to get a community to adopt new, aggressive marketing programs; to invest in expensive, but needed infrastructure; to set aside individual agendas and focus on a common goal. In short, a substantial portion of my time is devoted to figuring out how to lead. Every time I think I have it down, some completely unexpected obstacle presents itself, showing me just how much I have yet to learn. Regardless, here are a few observations on the topic of leadership that I believe are universally true.
I
DON’T BE AFRAID TO STEP UP TO THE PLATE
SLATER BARR President Sioux Falls Development Foundation Sioux Falls, SD slaterb@siouxfalls.com
40 Prairie Business
We’ve already talked about the myriad different styles of leaders. But did you also know that the differing styles, and therefore differing leaders, are best suited to different situations or even for different phases of the same issue. I’ve used Winston Churchill as an example because most people will have him at the top or near the top of their list of great leaders. Yet, prior to WWII, Churchill struggled for relevance among his peers, often taking unpopular political stances that relegated him to the sidelines of political power. This perceived weakness, an inability to compromise during times of peace, was transformed into his greatest strength as he vehemently warned of Hitler’s rise to power, culminating with England’s entrance into the War following the German invasion of Poland. In other words, no one has all of the answers and no one is the ultimate leader, with all the tools, skills, and personality to deal with every issue. Dive in, and if you aren’t the best leader for a given situation, have the maturity to acknowledge that and enlist others that are more appropriate at that specific time. July 2011
COMMUNICATE COMPULSIVELY A wise mentor once told me, “If they’re not in on it or up on it, they will be down on it.” Successful community leaders share as much information as they possibly can. The more people understand the issues, the more likely they are to support intelligent, progressive solutions. “Just trust me” doesn’t really work. Give them the information they need in order to support your position.
BE PREPARED The old Boy Scout motto still holds true. You earn the right to lead by doing your homework, studying the various options and their consequences. Then, when you are asked the hard questions, you have credible answers reflecting the thorough nature of your analysis. In turn, this adds to your ability to influence and strengthens your stature as a leader. No matter how brilliant the orator, people quickly separate empty rhetoric from facts. So, just as your Mom always said, “Do your homework!” PB
Money
Funds are available to qualified borrowers We’ve all seen and heard about the near collapse of the banking and finance industry. ard to believe it has been three years since the collapse of Lehman Brothers, the consolidation of Bank of America and Merrill Lynch and the government takeover of AIG. Since then we have been living in a business environment of credit tightening and the perception that banks don’t borrow money anymore. It leads to the question, “Is this really what is happening or is our regional environment different than rest of the country?” In comparing business regionally to the rest of the country, a little background is necessary. Outside of this region, banks and financiers are historically more aggressive in their lending practices. Home equity loans up to 125 percent of appraised values were commonplace in the “hot” markets of Florida, Phoenix and Las Vegas. Closer to home, 110 percent loans were available in the Twin Cities marketplace. These loans were made on appraised values that were not necessarily real, but inflated
H KENT BUSEK Owner Busek Olsen and Associates, Inc., Fargo, ND kent@taxstop.biz
in themselves. As a result, when home values collapsed, original loans quickly became upside down without taking into consideration the 125 percent loans. This type of aggressive lending was commonplace in raw land, speculative commercial property, and multifamily residential complexes as well. One hundred percent financing, cash out financing on properties (putting nothing down and getting money back at closing,) and other creative financing were commonplace 3-5 years ago. Where this region fared better, and in some regards prospered, is the fact they did not aggressively lend on these models. Although asset values did increase, the pace of this increase in the Prairie Business trade area was not as fast as the rest of the country. Local financial Institutions were more apt to require real cash equity, versus equity based on an appraisal higher than purchase price. Additional safeguards included extra collateral as security, shorter loan terms, and quarterly reviews of loans, among others. The result of these lending practices allowed for less financial distress for the borrower and the banks. The national talk is that banks aren’t lending. Bankers in the region will tell you they are looking for borrowers. Funds are available to a qualified borrower. The borrowing may appear more cumbersome since due diligence by the banks has increased (bank regulators are requiring it) and more information may need to be provided by the borrower, but the result is similar to 3-5 years ago. If you have good credit quality and a well capitalized project, money is available. PB
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Economic Development
Small
towns make a
big difference
Communities across the region are discovering just how important it is to market themselves key difference between communities that are growing and those that are staying stagnant or even shrinking is whether they’ve discovered how to market themselves to the right people and to tell those people what sets their community apart from other communities who are targeting the same demographic. Each community, no matter how small, has a unique selling point. They just need to discover what that selling point is and build a brand around it. Success in marketing your community requires research and a firm grasp of the basics. First, determine what makes your community stand out. How does it differ from other communities? What do you have that other communities do not? What do you do better than other communities? Second, define the target audience. Who will be most attracted to living or starting a business in your community? Who do you want to live in your community? How old are they? What do they like to do? What are their values and interests? Third, through differentiation and having a solid grasp on the target audience, determine how to position yourself
A
BETH CHRISTIANSONMELBY General Manager Hometown Aditude beth@HometownAditude. com
in the mind of the target audience. What should people think about when they hear the name of your town? A quiet bedroom community? A bustling city? Proximity to a larger community? From there, set realistic goals which are measurable. If your goals are too lofty, public perception and enthusiasm quickly fades. Remember that one of your target audiences is the people in your own community. Keep them excited and engaged. Finally, determine what strategies to incorporate for reaching your realistic goals. What type of medium will you use? What is the message you want to send? Branding your community takes time, money, and persistence. It is important to have a group of people in your community dedicated to the success of your brand. You probably won’t be able to put in place all the marketing strategies you wish to implement right away, but if you are consistent and use a building block approach, you will be successful! Oftentimes, economic development, especially in smaller communities, requires years to achieve results, but it is important to start. PB
ViewPoint
Rail still part of development What goes around really does come around - sometimes. odern day South Dakota is a direct product of rail road development in the 1880s. When the railroads arrived, towns sprouted across the prairie every 15 to 20 miles. These towns were based around refueling stations required to keep the trains running. One of the more dynamic businesses that developed in a railroad town was the country elevator. Early settlers fed their grain to livestock. However, as technology and farming practices improve, excess grain was produced and marketed at the local elevator. Elevators would aggregate grain then move it to markets in urban areas. Railroad was the most efficient method of grain transportation. Elevators would hand load “box cars” with 800 to 1,000 bushels of grain for transport. It would take several employees many days to load a car. Thus country elevators became one of the larger employers in railroad towns and the hub of many communities. Leap forward to today and one can witness the resurgence of the railroad and railroad towns. This
M
CHUCK JEPSEN chuckjepsen@hotmail.com
42 Prairie Business
July 2011
resurgence is led by the railroads program of shuttle trains. A shuttle train is dedicated to hauling grain from the Midwest to Pacific Northwest shiploading facilities. Upon delivering its load, the train remains intact and deadheads back to the Midwest for another loading of export Country elevators participating in a shuttle program can load 450,000 bushels in less than 15 hours. Just a few years ago this would take a month or more. This speed helps an elevator handle huge amounts of grain annually. Producers receive the greatest benefit. They now have direct access to export markets. Speed of the “shuttle elevator” allows the producers at harvest more in a day as they can quickly unload grain and get back to the combine. Shuttle elevators offer more storage space to producers allowing greater flexibility in marketing grain. This access, speed, and space puts as much as $.20 per bushel directly on a producer’s bottom line. Much of this increased money goes directly back into our local economy creating prosperity for all. From the land rush of the 19th century to the “grain rush” of the 21st, what goes around does come around. PB
Technology
“To the Cloud!”
Put Your Business First March 2011
BUSINESS LAW
Company Spotlight: TEAM Industries
Intellectual Property pg 38
pg 18
Community Spotlight:
ECONOMIC DEVELOPMENT
Young West Fargo community growing quickly
The Value of Higher-Wage Jobs in the Local Economy pg 24
pg 42
TECHNOLOGY Finding a Company that Best Fits your Needs pg 26
MONEY
What is the Velocity of Money pg 59
LEADERSHIP
Creating and Sustaining Change pg 16
Hebron Brick Company – Bricks across America pg. 16
SALES/MARKETING
5 Rules for Branding in the Digital Age pg 22
pg 48
What’s Next (in Technology?) pg 34
PRSRT STD U.S. Postage Paid Fargo, ND Permit #684
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Higher Ed and businesses working together pg 28 CHANGE SERVICE REQUESTED
hat is the cloud? The term has evolved to describe free or subscription-based services delivered in real time over the Internet. Cloud computing can refer to software as a service (SaaS), such as Microsoft Dynamics CRM Online for customer relationship management; to file storage, synchronization, backup, email, and to infrastructure as a service, including Amazon’s Elastic Compute Cloud. Cloud-based services can help small businesses reduce costs. Look at the example of Microsoft Exchange Online. A company of 20 employees would pay thousands of dollars for hardware and software alone to host their own Microsoft Exchange Server. Add to that the cost of maintenance, power, backup solutions, and the inherent risk of managing this internally. Compare that to $5 per user per month for Microsoft Exchange Online. Fewer headaches, no server, large amounts of storage, unlimited 24x7 support, guaranteed uptime, and not worrying about upgrades - for $1,200 a year. Most people cite security as the top reason for not using cloud services. It is not difficult to find instances of security breaches or downtime in cloud computing. On the other hand, risk of any kind cannot entirely be eliminated from any computing environment. The question to ask is - Who can manage it better and more cost effectively?
HIGHER EDUCATION MARKETING
PRAIRIE BUSINESS MAGAZINE PO BOX 6008 GRAND FORKS, ND 58206-6008
It’s all over print and the television. For many, the term is nebulous. For others, it raises fears about security and reliability. However, it’s hard to ignore the savings and/or increased value that many businesses are seeing from moving to the cloud.
‘Low stress’ in Aberdeen pg. 28
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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.*
Scott Deutsch
Brad Boyd
Sales Manager Grand Forks/Fargo/Moorhead northwestern MN 701.232.8893 p 701.280.9092 f sdeutsch@prairiebizmag.com
Account Manager Bismarck-Mandan west central ND/north central SD 800.641.0683 p 701.751.3773 f bboyd@prairiebizmag.com
HERE ARE A FEW TIPS TO CONSIDER.
ERIC GJERDEVIG President Summit Group Software West Fargo, ND egjerdevig@summitgroup software.com
Start small, but think big. An organization may only move a single solution to the cloud. Can the service considered be expanded to meet future needs as the organization grows? Make sure data can be exported. An organization’s data needs to be exported in the formats used by other programs; allowing for a move on premise or to another service later if necessary. Read the agreement closely. A service agreement or other contract will likely need to be accepted. Read it carefully to ensure understanding of what is being paid for, what the provider’s privacy policy is, and any fees for early termination. Finally, don’t be afraid. It makes sense to cautiously approach any big change in how business is done, and this certainly applies to moving to the cloud. But, ignoring the cloud could mean a missed opportunity to prepare the organization for the future. PB
Jeff Hanson
John Fetsch
Account Manager Sioux Falls southern SD/southern MN 605.212.6852 p jhanson@prairiebizmag.com
Account Manager Fargo/Moorhead eastern ND/western MN 701.232.8893 p 701.280.9092 f jfetsch@prairiebizmag.com
(*According to standard industry pass-along rates for business to business publications)
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44 Prairie Business
July 2011
architects engineers
Prairie Business to Business
Prairie Business to Business
The Financial Link
ZZZ $( 61H[XV FRP
www.innovators.net
25
CELEBRATING
YEARS
RATES: $125 (2.312 x 1.2) includes color $250 (2.312 x 2.55) includes color CONTACT: Phone 701-478-1139 or email: sdeutsch@prairiebizmag.com prairiebizmag.com
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By the Numbers EMPLOYMENT
(NOT SEASONALLY ADJUSTED) UNEMPLOYMENT RATE Apr 2010 North Dakota 3.2% Fargo MSA .7 Bismarck MSA 2.9 Grand Forks MSA 4.3 Minot MiSA 2.9 Dickinson MiSA 1.7 Williston MiSA 0.9 Jamestown MiSA 3.2 Wahpeton MiSA 3.5 South Dakota 4.7 Sioux Falls MSA 4.7 Rapid City MSA 5.0 Aberdeen MiSA 3.7 Brookings MiSA 3.9 Watertown MiSA 4.8 Spearfish MiSA 4.9 Mitchell MiSA 4.0 Pierre MiSA 3.7 Yankton MiSA 3.7 Huron MiSA 3.6 Vermillion MiSA 3.8 Minnesota 6.6 Minneapolis-St. Paul MSA 6.3 Brainerd MiSA 9.3 Winona MiSA 5.7 Fergus Falls MiSA 6.8 Red Wing MiSA 6.3 Willmar MiSA 6.1 Bemidji MiSA 8.8 Alexandria MiSA 6.5 Hutchinson MiSA 8.2 Marshall MiSA 5.4 Worthington MiSA 5.0 Fairmont MiSA 6.3
Apr 2011 4.1% 4.2 3.9 4.7 3.8 2.8 1.9 4.7 4.4 4.8 4.9 5.2 3.7 3.7 5.0 4.3 4.3 3.4 4.9 3.9 3.8 7.4 6.7 9.3 5.7 7.3 6.8 6.1 8.4 6.3 9.8 5.2 4.6 6.8
EMPLOYMENT Apr 2010 Apr2011 359281 354408 113865 115644 59509 59647 51872 52387 31895 32345 16342 14754 20797 16230 10894 11512 13450 11694 426160 423095 123905 123040 62610 62728 22935 22665 18620 18485 17850 17840 12795 12890 12615 12465 12070 11995 11330 11290 9570 9415 7670 7560 2751924 2768659 1726621 1736027 43009 42348 27325 26746 28707 27389 24219 24027 22839 22113 20148 19412 18787 18978 18348 17053 14429 13940 11140 11698 10845 10686
MSA — Metropolitan Statistical Area MiSA — Micropolitan Statistical Area Sources: U.S. Bureau of Labor Statistics, Minnesota Department of Employment and Economic Development, Job Service North Dakota, South Dakota Department of Labor NOTES:Employment data is based on formulas. Each February formulas are “benchmarked” to correct any economic or cultural changes that may make current formulas inaccurate. At that time figures for previous months may change. North Dakota oil data is also preliminary data and changes may be made at later dates.
NORTH DAKOTA OIL ACTIVITY
MAR 2011 FEB 2011 JAN 2011 DEC 2010 NOV 2010 MAR 2010
Sweet Crude Price/BBL
Production Oil-BBL/day
$95.51 $78.19 $78.59 $79.10 $73.68 $71.20
359,589 348,400 342,100 344,100 356,500 277,400
Drilling Permits 149 155 142 134 245 120
MAR 2011 FEB 2011 JAN 2011 DEC 2010 NOV 2010 MAR 2010
Producing Wells 5,439* 5,324 5,315 5,331 5,331 4,736
Current Rig Count:
Producing wells-all time high Source: NDOMB
05/26/10
04/26/11
BOARDINGS
Minneapolis-St. Paul Fargo Sioux Falls Rapid City Bismarck Duluth Grand Forks Minot Pierre
U.S. to Canadian Dollar
$1.0651 or $0.9389
$0.9507 or $1.0519
$0.9809 or $1.0195
U.S. to Euro
$0.8180 or $1.2224
$0.6838 or $1.4625
$0.7098 or $1.4088
U.S. to Chinese Yuan
$6.49 or $0.1540
$6.53 or $0.1532
$6.49 or $0.1540
U.S. to Japanese Yen
$90.26 or $0.0111
$81.96 or $0.0122
$81.47 or $0.0128
U.S. to Mexican Peso
$12.99 or $0.0770
$11.57 or $0.0864
$11.69 or $0.0855
Source: Bank of Canada
Data provided by Kingsbury Applied Economics
July 2011
- 0.02 - 3.99 12.10 - 14.70 - 0.89 - 4.80 - 7.68 100.00 8.22
CANADIAN BORDER CROSSINGS
Intl Falls-Rainer Grand Portage Baudette Warroad Roseau
APR 2011
% CHANGE /MAR 2010
35394 23671 12829 10069 3012
11.02% 26.25 -10.29 13.35 3.26
6064 8782 3821 4409 4173 2972
- 32.63 1.29 - 6.21 4.70 40.27 2.31
TRUCKS APR 2011
% CHANGE /MAR 2010
1815 1271 687 1208 715
- 17.24% 10.14 - 6.78 33.63 3.17
NORTH DAKOTA
Pembina1 Portal Neche Dunseith Walhalla Noonan
Source: US Customs and Border Protection
46 Prairie Business
% CHANGE/2010-2011
1230067 26148 29464 17815 14417 12387 8282 10871 1066
Source: US Customs and Border Protection
MINNESOTA 05/26/11
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APRIL AIRLINE BOARDINGS
AUTOMOBILES
CANADIAN EXCHANGE RATE
Rig Count 171 167 163 163 158 102
16336 7615 557 1852 1083 184
- 6.04 2.81 - 60.40 - 32.16 -27.94 -69.89
The LEED® Green Building Rating System TM is the national benchmark for design, construction and operation of highperformance “green” buildings. It promotes a whole-building approach to sustainability. Visit the U.S. Green Building Council’s Web site at www.usgbc.org to learn more about LEED rankings and standards. Rendering courtesy of JLG Architects Ltd., Grand Forks.
The College of Education and Human Development is proud to have worked on the project with these North Dakota businesses: JLG Architects AE2S Engineering
A new day is dawning for the College of Education and Human Development at The University of North Dakota. The 2011 fall semester will find the College occupying a fully renovated and expanded Education Building that is setting standards for merging energy efficiency with environmental protection.
LEED Silver means GREEN for UND and North Dakota This LEED® Silver-certified project was designed for optimized energy efficiency — up to 24 percent less energy use than other buildings of comparable size and type. That means better stewardship of state resources, lower water use, environmental protection, and improved climate controls for comfort and economy.
Heyer Engineering Obermiller Nelson Engineering Peterson Construction Grand Forks Heating Air Conditioning Bergstrom Electric
Learn more about this project at: edbuilding.UND.edu
UND.edu
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION INSTITUTION