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Page 1: Prairie Business February 2012

www.prairiebizmag.comwww.prairiebizmag.com

February 2012

Connectingto the globalnetwork

Rural areas get

hooked up

pg.24

What to do abouttraditional mediapg.26

Update on6-month-old federalfinancial initiativepg. 28

Page 2: Prairie Business February 2012

2 Prairie Business February 2012

Page 3: Prairie Business February 2012
Page 4: Prairie Business February 2012

4 Prairie Business February 2012

Volume 12 No. 2CONTENTS

16

242628

36

6 From the Editor’s Desk

8 Professional Spotlight

8 Matthew Mohr

10 Prairie News

14 Prairie People

Company Spotlight -Martinson Insurance Agency

18 Sales and Marketing -Developing, maintaining relationshipsat heart of marketing UNDUnmanned Aircraft Systems

20 Workforce - Region has challengesin finding workforce

22 Red River Valley - ‘Dedicated mobilewebsite’ assists Fargo-Moorhead visitors

Cover Story: Connecting a region tothe global network

Cover Story: Marketing - Traditionalmarketing still has its place

Cover Story: Financial - Bankingindustry not sure about ConsumerFinancial Protection Bureau

30 Economic Development - ‘Remarkable’economic activities occurring

Community Spotlight - Working togetherto build two communities

38 Technology - New mobile devicesdoing more with little

39 Leadership and Management -Open door and open books opensup opportunities

40 South Dakota - Accelerator programassists entrepreneurs

42 Western North Dakota - MRISAR InstituteThe perfect blend of science and art

43 Viewpoint

46 By the Numbers

Energy - Ethanol blender pumpsgrowing in numbersBlender pumps offering consumers a variety of

ethanol-blend fuels are growing in numbers across

the Dakotas and Minnesota.

Empower North Dakota developingcohesive energy programEmpower North Dakota has taken a diverse group of

energy players and developed a cohesive energy program

to develop all of North Dakota’s energy resources.

Next MonthIn March, with the assistance of research from Praxis Strategy Group, Prairie Business willfocus on how companies are finding workforce to fill the tough jobs in our region. OurHigher Education piece will address the public universities' infrastructure needs in NorthDakota, South Dakota and western Minnesota. In addition, Prairie Business will look attransportation needs in certain areas and the impact they have on our economy.

On the airJoin Prairie Business magazine Editor Alan Van Ormer and host Merrill Piepkorn onTuesday, February 14, at 3 p.m. on any Prairie Public radio station to hear more about theFebruary cover stories. To listen to Prairie Public, visitwww.prairiepublic.org/radio/hear-it-now.

32

34

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Page 6: Prairie Business February 2012

6 Prairie Business February 2012

Mike Jacobs, PublisherAlan Van Ormer, EditorZach Ahrens, General ManagerTina Fetsch, Production ManagerBeth Bohlman, Circulation ManagerJen Braaten, Marketing ManagerJoe Greenwood, Multi-Media ConsultantKris Wolff, Layout Design, Ad Design

GGEENNEERRAALL MMAANNAAGGEERR::Zach Ahrens [email protected]

SSAALLEESS::Brad Boyd [email protected] western ND/western SD

John Fetsch [email protected] eastern ND/MN/eastern SD

EEDDIITTOORR::Alan Van Ormer [email protected]

EEddiittoorriiaall AAddvviissoorrss::Dwaine Chapel, Executive Director, Lake Area Improvement Corporation;Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson,Communications Coordinator, Greater Fargo Moorhead EDC; Tonya Jo(T. J.) Hansen, Assistant Professor of Economics, Minnesota StateUniversity Moorhead; Dusty Johnson, Chief of Staff for South DakotaGov. Dennis Daugaard’s office; Brekka Kramer, General Manager ofOdney; Matthew Mohr, President/CEO, Dacotah Paper Company;Nancy Straw, President, West Central Initiative

Prairie Business magazine is published monthly by the Grand ForksHerald and Forum Communications Company with offices at 3752nd Avenue North, Grand Forks, ND 58203. Qualifyingsubscriptions are available free of charge. Back issue quantities arelimited and subject to availability ($2/copy prepaid). The opinionsof writers featured in Prairie Business are their own. Unsolicitedmanuscripts, photographs, artwork are encouraged but will not bereturned without a self-addressed, stamped envelope.

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

Address corrections:Prairie Business magazine PO Box 6008 Grand Forks, ND 58206-6008 Beth Bohlman: [email protected]

Online: www.prairiebizmag.com

An SBA Award Winning Publication

For daily business newsvisit prairiebizmag.com

Most of the rest of the nation is still working its wayout of a recession. Right here, in our own backyard,the economy is taking off and everything is pretty

positive.As you will read in one of the February cover stories that

talks about rural broadband projects, millions of dollars arebeing spent to upgrade the region’s broadband backbonesystem, which allows companies to start businesses fromevery corner of North Dakota, South Dakota and westernMinnesota. Broadband allows users to access information viathe Internet using one of several high-speed transmissiontechnologies.

In December, the Federal Reserve Bank of Minneapolisreleased its economic report for 2012. The Ninth District,which is made up of Minnesota, North Dakota and SouthDakota, is expected to grow moderately in 2012, according tothe Minneapolis Fed’s forecasting models and outlooksurveys. The district is “enjoying strong agriculture, miningand oil industries, healthy manufacturing exports andmoderate consumer spending growth with subdued priceincreases.”

In addition, in our special story dealing with theworkforce, businesses are continuing to hire as is evident bythe numbers of employees that are needed in the three-stateregion. For example, South Dakota has almost 10,000 jobsopenings. Many of those job openings are for skilled orprofessional positions, like welders, engineers andaccountants, but fewer than 200 welders, engineers, andaccountants are receiving unemployment benefits in SouthDakota today.

Also, Praxis Strategy Group, headquartered in GrandForks, N.D., developed an analyst report for Prairie Businessto use as part of its workforce story. Part of the report showsthe jobs that the region is seeing as tough to fill. Theseinclude truck drivers, sales representatives, physicians andsurgeons, dentists, engineering jobs – industrial, civil,mechanical – just to name few, and welders and machinists.

So needless to say, while the economy is still movingforward in the three-state region, business leaders will belooking for ways to find the employees to sustain that growthin 2012.

In general, heading into 2012, it seems theeconomy is remaining the same.

From the editor’s desk

Economy continuing tomove forward in our region

Page 7: Prairie Business February 2012

prairiebizmag.com 7

DALE CARNEGIETRAINING

Even in this digital world your businesssuccess still depends on your ability

to create strong relationships.

For information regarding opportunities in your area:

NORTH DAKOTA call 866-900-DALEor visit our website at www.northdakota.dalecarnegie.com__________________

SOUTH DAKOTA and NEBRASKA call 800-888-1425or visit our website at www.nesd.dalecarnegie.com

DALE CARNEGIETRAINING

Celebrating 100 years of successworldwide and right here in North Dakota,

Western Minnesota, South Dakota and Nebraska.

Page 8: Prairie Business February 2012

8 Prairie Business February 2012

This has been a year full of exciting changes with the moveto our Minot office, but with the excitement there has beena lot of hard work and it is very gratifying that it is noted

and celebrated,” she says.Larsgaard earned her Doctorate in Architecture from the

University Federico II of Naples, Italy in December 1996. She dida Thesis in Architecture at North Dakota State University inFargo, N. D. in 2001. She has been with EAPC since 1998 workingas a project architect and project manager, specializing in highereducation and health care. She also mentors interns through theirarchitectural licensing processes.

EAPC is a multi-discipline architecture and engineering firmwith locations in Grand Forks, Fargo, Bismarck, Minot, Williston,N. D., Bemidji, Minn., Norwich, Vt., and Buenos Aires, Argentina.

In almost 14 years of working at EAPC, Larsgaard has seentechnology have a dramatic impact in architecture. “Computerprograms are available to the architects and the clients to createrealistic 3D virtual models that can allow you to tour a buildingin the design phase, long before any construction has started,” she

says. “The internet has also become another valuable resource.What took hours of research now is available at the click of abutton and allows the architect more time to assemble the dataacquired in a creative way.”

She often says that she has the best job in the world because asan architect she learns new things and meets new people. “Everyproject is a new challenge and it is very different from the onebefore,” she notes. “I came out of school with a passion forarchitecture and have been able to create a career that I findextremely rewarding and gratifying thanks to the people I workwith and the clients I get to meet every day.”

As for advice for younger women heading on a career path,Larsgaard states the architecture profession is predominantlyemployed by men, therefore a woman can feel she is scrutinizedmore from time to time.

“However, people are most concerned with obtaining qualitythan a difference in gender,” she explains. “So my advice wouldbe: “Pick your passion, study hard, pursue competence andquality and don't stop until you achieve your goal.” PB

A passion for architectureGLORIA LARSGAARD

Architect, EAPC Architects Engineers

Picking good partners in business is very important.So many people make promises which they fail tofulfill and by making big promises, they destroy

their reputation and ability to attract new good businesspartners.

One of my most frustrating experiences occurredwhen I presented a business purchase opportunity to agroup of local business men which was to be discussed

in confidence. The seller provided information to abroker to be used only in confidence to qualified buyers.Fortunately, I explained to the broker that a group wouldlook at the opportunity for a partnership deal.Unfortunately, one of the group of people called thepotential seller to inquire about buying the businesshimself, which totally killed the opportunity. Thepotential seller was furious, as was the broker. I faceduncalled for embarrassment and the broker will hardlytalk to me about deals any longer. A simple little breachof trust made by what one would think is a goodpartner, dramatically affected me, my reputation, and allmy business partners.

The lack of sale turned out as a great benefit for thepotential seller, who weathered a few lean years, but isnow enjoying record volume. The potential “badpartner” is also doing great with his current business.

A lot of people will promise you big opportunities tobecome a partner with them, but far too often, once theyget what they want from you, your support of them isforgotten.

Pick your partners carefully in an attempt to choosegood solid partners for long-term successfulrelationships. PB

Professional Spotlight: Gloria Larsgaard:

Business Advice

MATTHEW D. MOHRCEO,

Dacotah Paper [email protected]

Being named the ‘Young Architect of the Year’ in NorthDakota in 2011 was quite a surprise for Gloria Larsgaard, anarchitect for EAPC Architects Engineers in Minot, N. D.

Picking partners

It has been said “You can not do goodbusiness with bad partners”, and forthe most part this is found to be true.

Page 9: Prairie Business February 2012

prairiebizmag.com 9

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Page 10: Prairie Business February 2012

10 Prairie Business February 2012

Press releases and photos about business news and events in North Dakota, South Dakota andwestern Minnesota can be e-mailed to [email protected] for considerationPrairie News

JLG ARCHITECTS, DAVISON LARSONASSOCIATES MERGE

Davison Larson Associates (DLA), the oldest firmin Minot, N. D., has merged with JLG Architects (JLG).JLG is the largest and most awarded architecture firmin the state, with almost 60 employees, six offices, andmore than 70 design awards.

DLA’s present partners, Donald Davison, AIA andDouglas Larson, AIA, will join JLG as firm partners. JLGalso has offices in Grand Forks, Fargo, and Bismarck, N.D., and Alexandria and Minneapolis,.

MASABA EXPANSION EVIDENCE OFMANUFACTURING BOOM INVERMILLION

After only five years in business, Masaba MiningEquipment of Vermillion, S.D., is undergoing its thirdexpansion. The bulk-handling equipmentmanufacturer is adding a 50,000-square-foot buildingadjacent to its current facility. The new building willhouse a sandblasting and painting chamber to put thefinishing touches on equipment the companyproduces. The painting facility is slated for completionin the spring of 2012.

Masaba Mining Equipment is helping to shape alarger trend of manufacturing success in Vermillion.The aggregate payroll in the manufacturing industryrose from $5.2 million in 2008 to more than $6.9million in 2010. Part of the reason for the increase inpayroll is the creation of new jobs in Vermillion.Masaba alone added 50 additional positions in 2011.Projections show Masaba will need to add 70additional jobs in the next one to three years.

SPECTRUM AEROMEDCOMPLETES AIRAMBULANCE EQUIPPEDPILATUS PC-12 INTERIORFOR VALLEY MED FLIGHT

Spectrum Aeromed, in Fargo,N. D., has completed customizing aPilatus PC-12 with a single systemmedical interior for Grand Forks,N. D.-based Valley Med Flight. ThePC-12 will be stationed inWilliston, N. D.

The Air Ambulance equippedPC-12 has all the vital life-savingequipment needed to helptransport critical patients tohospitals for treatment. The PC-12also will be able to serve a largefootprint in the western part ofNorth Dakota.

Valley Med Flight has threeaircraft in their fleet and has beenin operation for more than a year.They have transported more than200 patients.

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KRAUS-ANDERSON COMPLETESESSENTIA HEALTH FACILITY INMINNESOTA

Kraus-Anderson® Construction Company(KA), one of the nation’s premier commercialgeneral contractors and construction managers,has completed a 17-month, multi-phase project ofthe Essentia Health facility in Fosston, Minn.

This is the second project that KA hascompleted on the Essentia Health Fosston campus.The project integrates the existing clinic with thehospital and features a new main building entry,new surgery suite addition and renovation, labrelocation and expansion, and medical recordsrelocation. It also includes a new registration andwaiting area for the combined clinic and hospital.

PLAINS ART MUSEUM MEETSBURGUM FAMILY CHALLENGEMATCH GOAL

Plains Art Museum, in Fargo, N. D., hasreached—and surpassed—a $200,000 challengegrant fundraising goal set by the Burgum family ofFargo. The funds will be used toward constructionof the Katherine Kilbourne Burgum Center forCreativity at Plains Art Museum.

The challenge grant was announced on Dec.15, the same day that a $300,000 donation fromthe Katherine Kilbourne Burgum Trust wasannounced for the Center for Creativity project. Atotal of 78 donors contributed $250,000, exceedingthe goal set by the challenge grant.

The Katherine Kilbourne Burgum Center forCreativity will open in fall 2012. Its programs willreplace the current Creative Arts Studio at ClaraBarton Elementary and will provide services for6,000 Fargo Public School students and 8,000 totalparticipants in its first year of operation.

STATE BANK & TRUST AGREES TOPURCHASE HAWLEY BANK

State Bankshares, the holding company thatowns State Bank & Trust in Fargo, has entered intoan agreement to purchase First National Bank,with locations in Hawley and Dilworth, Minn.Completion of the purchase is subject toregulatory approval.

There are about 20 employees at the Hawleyand Dilworth locations.

First National Bank was chartered in Hawley in1905. Owner Curt Neumann joined the bank in1984; his son, Jon, joined the staff in 1994. Afterthe purchase by State Bank & Trust, the Neumannswill no longer be involved in the bank’s operation.

With assets of more than $2 billion, State Bank& Trust is the largest independently owned bank inMinnesota, North Dakota and South Dakota. StateBank & Trust operates 14 bank locations in Fargo,West Fargo and Wahpeton, N. D., and Moorhead,Audubon, Detroit Lakes, Pelican Rapids, FergusFalls and Alexandria, Minn., as well as trust officesin Fargo and Bismarck.

Page 12: Prairie Business February 2012

12 Prairie Business February 2012

VALLEY CITY STATE UNIVERSITYEARNS NATIONAL RANKING

Valley City State University’s online master ofeducation program earned national rankings inU.S. News & World Report’s first-ever edition ofTop Online Education Programs. Appearing in thecategory “Graduate Programs – Education,”VCSU’s is the only program offered by a NorthDakota college or university to be ranked in thiscategory.

In this first year of publication, U.S. Newssurveyed all 1,053 regionally accredited institutionsit determined offered at least one master’s levelprogram in education in 2010. It only consideredprograms with at least 80 percent of their coursecontent available online and which could supply afull academic year’s worth of data (161institutions). The ranking indicators applied someof the standards used for traditional schools andnew measures specific to online programs. Theindicators in which VCSU’s program received anational ranking include: Student Services &Technology (ranked 51st); Faculty Credentials &Training (ranked 57th); Student Engagement &Accreditation (ranked 53rd.)

More information on the rankings is availableat http://www.usnews.com/education/online-education.

Press releases and photos about business news and events in North Dakota, South Dakota andwestern Minnesota can be e-mailed to [email protected] for considerationPrairie News

U OF M, CROOKSTON AMONG TOPONLINE EDUCATION PROGRAMS

The first-ever edition of Top Online EducationProgram rankings by U.S. News & World Report findsthe University of Minnesota, Crookston rankednationally among the top 40 colleges and universitiesin two separate categories for its online bachelor’sdegree programs. The U of M, Crookston earned the32nd spot out of 173 colleges and universitiesnationally in the Teaching Practices and StudentEngagement category and 40th out of 179 schoolsnationally in the category Student Services andTechnology.

U.S. News & World Report created these rankingsin response to today’s high demand for educationprovided in a flexible manner. Online education hasbecome increasingly popular due to this flexibility.

The U of M, Crookston currently offers 10 degreeprograms entirely online (these degrees are alsooffered more traditionally on-campus as well). Theyinclude Accounting (B.S.), Applied Health (B.A.H.),Applied Studies (B.S.), Business (B.S.),Communication (B.S.), Health Management (B.S.),Information Technology Management (B.S.),Manufacturing Management (B.M.M.), Marketing(B.S.), and Quality Management (B.M.M.). Theseonline programs are administered through the Centerfor Adult Learning.

ODNEY’S NEW CONTENTMANAGEMENT SYSTEM SIMPLIFIESWEBSITE

Odney, headquartered in Bismarck, N. D., aregional leader in providing web and interactiveservices, recently launched its new web contentmanagement system, SmartAdmin. The system’ssimple, powerful tools and functions give usersmore options and flexibility in managing theirsites, ultimately making website managementeasier and more efficient.

SmartAdmin can add, edit or delete text,photos, links and other content to a website, allthrough a simple browser interface. The newtoolbar makes it easy to format text in bold,italic or underline; create bulleted lists; createtables; add links and images; tag content andmore.

NORTH DAKOTA RECEIVING MORETHAN $275 MILLION INEMERGENCY HIGHWAY FUNDING

More than $275 million in federal highwayfunding has been authorized to shore uproadways throughout North Dakota that weredamaged by floodwaters last year. This is part ofmore than $316 million North Dakota willreceive in federal Emergency Relief (ER)funding, a record for the state, and nearly 25percent of all federal emergency relief fundingto be distributed nationwide.

The total dollar figure includes more than$89 million for threatened roadways throughoutthe Devils Lake region, more than $50 millionfor the West James River Basin, more than $39million for the South Mouse River Basin andmore than $9 million in the Sheyenne/JamesRiver Basin. The delegation secured anadditional $88 million total to deliver additionalsupport for each of these regions under theappropriation for 2011.

This funding was awarded by the FederalHighway Administration’s Emergency Reliefprogram through funds appropriated byCongress.

EIDE BAILLY AND WIPFLIANNOUNCE PLANS TO MERGE

Eide Bailly LLP and Wipfli LLP, twoprominent accounting and consulting firms thatrank among the largest in the country, haveannounced plans to merge their professionalpractices. Pending regulatory approval, the twofirms will officially combine on June 1.

EB Wipfli LLP will rank among the nation’stop 15 accounting firms, with annual revenue ofmore than $314 million. Combined, the newfirm will serve more than 70,000 clients from 41offices across the west-central United States andtwo offices in India. EB Wipfli will provide acomprehensive range of audit, tax, accounting,consulting and professional advisory services topublic and private companies.

Page 13: Prairie Business February 2012

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BROOKINGS FIRM RANKED AMONGBEST IN THE WORLD

The editors of Construction Digitalmagazine have selected Brookings,S. D.-based Civil Design Inc. as oneof the world’s top engineering firms.Of the 10 international companiesselected by the magazine, CDI wasranked in the top five. Here is Construction Digital’s

complete Top 10 list, published in arecent issue:

This isn’t the first time CDI hasearned a distinguished honor. In2008, Civil Design Inc. was rankedfirst by Inc. Magazine as one of thetop 50 fastest growing, privatelyheld independent engineering firmsin the nation. CDI also earned thenumber 585 spot on the samemagazine's "Top 5,000" list of thecountry's fastest growing, privatelyheld, independent companies.

J2 EngineeringFlorida, USA

KBRTexas, USA

Worleyparsons, Ltd.North Sydney, Australia

SNC-Lavalin, Inc.Montreal, Quebec

China Communications Construction Group – Beijing, China

Civil Design, Inc.South Dakota, USA

Enterprise ElectricTennessee, USA

Black & VeatchKansas, USA

ARUP Group Ltd.London, England

Qualis CorporationAlabama, USA

Page 14: Prairie Business February 2012

JAMES SCULL, JR.

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 [email protected] for consideration.Prairie People

CHRIS NELSON

TIM PEARSON

CHRIS NELSON ELECTED AS NEWPUC CHAIRMAN

Chris Nelson is the new chairman of theSouth Dakota Public Utilities Commission.

Nelson is beginning his second year on thecommission. He was appointed in January 2011by Gov. Dennis Daugaard to fill a vacancy leftby the resignation of Dusty Johnson. Nelsonmoved into the chairman’s position afterserving as vice chairman since June 2011. He isa member of the National Association ofRegulatory Commissioners and is on thatgroup’s Committee on Telecommunications.Prior to joining the PUC, Nelson was the SouthDakota Secretary of State for eight years.

NORTH DAKOTA GUARANTY ANDTITLE COMPANY SELECTS NEWPRESIDENT

Tim Pearson has been named the presidentof North Dakota Guaranty and Title Companyin Bismarck, N. D. The company’s board ofdirectors appointed Pearson president effectiveJan. 1

Pearson previously served as a senior vice-president of the company and has 32 years ofexperience in the title industry in SouthernCalifornia and North Dakota. He currentlyserves on the Stewart Title Guaranty NationalAdvisory Board and is active in the AmericanLand Title Association.

SOUTH DAKOTA BUSINESSLEADERS JOIN SD RURALENTERPRISE BOARD

Representatives of the construction, bankingand utilities industries have been added to theSouth Dakota Rural Enterprise Board ofDirectors. Representing a wide range of businessendeavors in all corners of the state, the newdirectors each bring to the organization a wealthof experience and dedication to economicdevelopment. Joining the board are:

Scott Parsley, assistant general manager forMember Services at East River Electric PowerCooperative, based in Madison. Parsley hasworked for East River for 25 years and in hiscurrent position since 1990.

David Rozenboom, president of FirstPREMIER Bank in Sioux Falls. The immediatepast chair of the Sioux Falls Area Chamber ofCommerce, Rozenboom was previously anexecutive at US Bank, with four years inAberdeen and 22 in Sioux Falls.

James L. Scull, Jr., president of ScullConstruction Service and Site Work Specialistsof Rapid City. A civil engineering graduate ofthe South Dakota School of Mines andTechnology, Scull has extensive experience inthe construction industry, including work oncommercial construction, utilities constructionand installations, site work and demolition.

SCOTT PARSLEY

BRIAN GRAMER

STACEY ACKERMAN

JIM SPIELMAN

IAN MCPHERSON

WELLS FARGO PRIVATE BANKNAMES REGIONAL FIDUCIARYMANAGER

Stacey Ackerman has been promoted toregional fiduciary manager for North Dakotaand outstate South Dakota for Wells FargoPrivate Bank in Fargo, N. D. In her new role,Ackerman will have responsibility for thetrust business in the state of North Dakotaand the communities of Aberdeen,Watertown and Rapid City in South Dakota.

Ackerman joined Wells Fargo in 1994 asa professional banker trainee. She joined thetrust department in 1998 as an InvestmentRepresentative and was named senior trustteam manager in 2009.

M2M COMPANY PEDIGREETECHNOLOGIES ANNOUNCESSTRATEGIC EXECUTIVELEADERSHIP APPOINTMENTS

Award-winning M2M business solutionsprovider Pedigree Technologies, Fargo, N. D.,has appointed three executives to providecontinued leadership as the company growsin response to market trends and theincreasing adoption of connected devices totrack, monitor, and manage fixed and mobileequipment and assets.

The executive leadership team includesBrian Gramer, chief operations and revenueofficer, and Jim Spielman, chief financialofficer. Vice President of Marketing andProduct Development Ian McPherson hasbeen promoted to chief strategy officer.

Gramer is an entrepreneur whorecognized and delivered the business valueof Software as a Service when the technologywas first introduced to market. In his role aschief operations and revenue officer, Gramerwill oversee business development, salesoperations, solution delivery, and accountmanagement.

Spielman will be responsible for leadingthe company’s financial strategies andexecution, including analyzing variousgrowth opportunities, raising capital, andmanaging investor relations. Prior to joiningPedigree Technologies, Spielman was theCFO of Intelligent InSites, a healthcareenterprise visibility software company. Withmore than 20 years of experience as ananalyst, entrepreneur, and marketing andproduct management executive, McPhersonis responsible for driving OneView solutionstrategy, product development, andmarketing. McPherson was co-founder andvice president of Marketing and SolutionArchitecture at Apprion.

DAVID ROZENBOOM

14 Prairie Business February 2012

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PrairiePrairieusinessnorthern plains business resource

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Page 16: Prairie Business February 2012

16 Prairie Business February 2012

Today, Martinson Insurance Agencyprovides various insurance needs formore than 2,500 clients.

Martinson Insurance Agency is licensed inMinnesota, South Dakota, North Dakota, Iowa,Wisconsin and Arizona. An estimated 95percent of the clients are within a 50-mileradius. The insurance agency provides variousinsurance needs such as auto, home, life, health,business and farm.

Owner and Agent Marvin Martinson saysthe key to the company’s success has been itspersonal service. “We treat clients like we wouldlike to be treated ourselves,” he states.“Retention is very high. Clients become ourfriends.”

Throughout 2012 Prairie Business isfeaturing 50-year-old companies that continueto thrive and grow throughout the three-stateregion.

Martinson actually started in the bankingindustry and had a notion to go back into theindustry at times during his insurance career.But he chose to stay with a career in insuranceand in October 1962 Martinson Insurance

Agency was started.A year later, Martinson added health

insurance products and then in 1964,automobile and homeowners insurance becamepart of the package. The insurance agencystarted in the Martinson’s home four blocksfrom its current site near downtown.

Then in 1974, Martinson Insurance Agencymoved to the Garden Center Bowling buildingand then two years later, Martinson purchased a5,000 square foot building where the insuranceagency has operated ever since.

In 2000, there was a major remodelingproject completed at its current location. Thebuilding was completely redone from both theinside and outside. The Alexandria AreaChamber of Commerce honored MartinsonInsurance Agency with the first BusinessBeautification Award.

The major change in the 50 years in theinsurance business has been technology. “Wesold life insurance with a yellow pad and a ratebook,” Martinson notes. “Today, it is a lot morecomplicated with federal regulations.”

Martinson Insurance Agency has been able

Martinson Insurance Agency

When MarvinMartinson startedMartinson InsuranceAgency with hiswife, Delois, in1962, they soldnothing but lifeinsurance.

Company Spotlight:

Growingwith the Alexandria, Minn., community

Page 17: Prairie Business February 2012

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to roll with the changes over the years; in particular, theautomation and technology of doing business. “It is not cheap. Itis costly to upgrade technology,” Martinson says, adding that hecould spend $30,000-$40,000 on technology upgrades and thenthree-to-four years later, it can become obsolete.

Martinson also says throughout the years his company hasworked through what he has said are ‘hard’ and ‘soft’ markets. Ahard market is when the company’s rates increase, while a softmarket entails lower rates. Currently, Martinson says theinsurance industry is in a soft market.

“However, within the next year I believe it will become a hardmarket,” he says. “We could see a rate increase in any line of ourbusiness. Part of the reason is the economy. Part of the reason isinterest rates. Part of the reason is claims.”

Another challenge is the right growth opportunities. “Everycompany wants to grow,” Martinson says. “However, in theinsurance industry, we reach points where it is difficult to grow.”

Government involvement in health insurance is also achallenge for the insurance industry, Martinson states. “It is achallenge to keep up with the federal regulations,” he adds.

Martinson feels he made the right decision staying in theinsurance business. “Alexandria has been very good to us,” saysMartinson, who now has eight employees working in theinsurance business. “We have been part of seeing Alexandriagrow.”

When he came to Alexandria in 1962, the community had5,000 people. Today, the population is estimated to be more than12,000 people.

“Alexandria was the right place. We moved at the right time,”Martinson says. “We’re optimistic we will be here and servingpeople for years to come. We will roll with the changes.

“It might be old fashioned to provide personal service, but itis still the right way to do business,” he explains. PBAlan Van Ormer - [email protected]

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For further information contact the SDDepartment of Labor at 605.626.2340 ordlr.sd.gov and www.aberdeensd.com

Aberdeenis Growing!!Headquarters: Alexandria, Minn.

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Page 18: Prairie Business February 2012

18 Prairie Business February 2012

Sales/Marketing

But at its essence, marketing the University of North Dakota’sUnmanned Aircraft Systems (UAS) enterprise is about creatingand maintaining relationships and partnerships.

Every successful program has at least one hard-working champion,and UND’s UAS champion of champions is Al Palmer, director ofUnmanned Aircraft Systems Center of Excellence and a retired brigadiergeneral of the North Dakota Air National Guard. His passion, insight,knowledge, administrative skill, high energy and ability to developrelationships – to connect with any and everybody and help themunderstand UND’s vision for the future of UAS — have put Palmer atthe heart of the skyrocketing success of UND’s UAS mission.

Palmer will be embarrassed by that paragraph. He would be the firstto say – to insist – that the success of UND’s UAS mission comes frommany people and organizations. People like his boss, Bruce Smith, deanof UND’s John D. Odegard School of Aerospace Sciences, UND VicePresident for Research and Economic Development Phyllis Johnson,and UND President Robert Kelley, who cites the UAS mission as anexample of the “Exceptional UND.” And Palmer would be absolutelycorrect. A description of the program’s successful marketing is really a

Developing,maintainingrelationships at heartof marketing UNDUnmanned AircraftSystems

There have been specializedadvertisements, videos, media campaignsand presentations to governmentalbodies and private businesses.

Page 19: Prairie Business February 2012

prairiebizmag.com 19

litany of partners, of individuals and organizations that have expendedenormous time, talent and treasure to help position UND’s UASprogram as the best in the world. Only the University of North Dakota,for example, has developed a degree program in Unmanned AircraftSystems and already has graduates from that program.

Think of the growing UAS program as an expanding galaxy of stars.At the galaxy’s center is the campus itself and the many University unitsthat contribute to the success of the program. The literal center is theUnmanned Aircraft Systems Center of Excellence, funded through thestate’s Centers of Excellence program and enhanced with a mix offederal and private enterprise dollars. Joining this John D. OdegardSchool of Aerospace Sciences program as part of the campus hub arethe School of Engineering and Mines, critical to the development ofUAS systems such as developing sense and avoid technologies (how elsedoes a UAS vehicle avoid a flock of Canada geese?) and payloadpackages; UND’s College of Business and Public Administration andCenter for Innovation; UND’s College of Nursing and Department ofPsychology, which are helping to understand the human factorsinvolved in operating UAS vehicles; and more. Other higher educationpartners include North Dakota State University and Northland

Community & Technical College.Orbiting the campus nucleus is a host of

star partners. These include the Grand ForksAir Force Base, which in 2011 provided theunique opportunity for UND and a privatecompany, L-3 Communications, to create theon-Base L-3/UND UAS Training Center.Other stars are North Dakota’s CongressionalDelegation, the Office of the Governor, theGrand Forks Economic DevelopmentCorporation, the North Dakota Departmentof Commerce Economic Development &Finance, The Chamber of Grand Forks andEast Grand Forks, the City of Grand Forks,the Base Realignment Impact Committee,which have been champions for the UASmission. The Red River Valley ResearchCorridor promotes UAS developmentthrough a series of action summits.

The marketing success of UND’s UASprogram is the result of the North Dakota

Spirit: the willingness to collaborate for the common good, theunderstanding that together — the North Dakota University System;federal, state and local government; the private sector — we can buildnew enterprises and programs that will benefit all of North Dakota.PB

Peter B. Johnson is theexecutive associate vicepresident for UniversityRelations/media relationscoordinator at the Universityof North Dakota in GrandForks, N. D. He can bereached [email protected].

Northrop Grumman, one of 15 UAScompanies operating in the Grand Forks

region, donated a full-scale model of a Block10 Global Hawk unmanned aircraft system

to NCTC as part of the 2011 UAS ActionSummit. Grand Forks will host the 2012

Summit May 22-23. Photo courtesy ofGrand Forks Regional Airport Authority.

Page 20: Prairie Business February 2012

For example, the South Dakota Department of Labor andRegulation lists nearly 10,000 job openings in its employmentsystem. Many of those job openings are for skills or professional

positions, like welders, engineers and accountants, but fewer than 200welders, engineers, and accountants are receiving unemploymentbenefits in South Dakota today.

“This is the single largest barrier keeping our employers frominvesting more into South Dakota. We have incredible professionalsand technicians, but we need more of them,” states Dustin ‘Dusty’Johnson, Chief of Staff for Gov. Dennis Daugaard. “South Dakota isbetter positioned than almost any state in the union to come out ofthese soft economic times, but that will not happen unless we addressthe workforce challenges facing our state.”

In South Dakota, over the last year, Gov. Daugaard has talked withcountless employers about what challenges they face. He’s taken thoseface-to-face conversations to heart as he’s developed his workforce plan.

“Established Labor Market Information projection methodologiesare being used to determine future workforce needs. The South DakotaDepartment of Labor & Regulation (DLR) also monitors job openingnumbers and types,” states Pam Roberts, secretary for the South DakotaDepartment of Labor and Regulation. “Additionally, the Governor andGOED staff have recently travelled across the state and visited withemployers both large and small to discuss their immediate workforceneeds. One workforce summit has been held at the regional level for theJames River Valley, which brought together business owners, HR staff,state and local government representatives, and education andeconomic development representatives. We are listening to employers.”

In North Dakota, the state’s economy has been expanding acrossmost sectors and is being led by energy and agriculture, which results ina large increase in job openings posted on the state’s Online JobOpening Report.

Those associated with oil and gas activities include construction andextraction, as well as transportation and metal moving. Then there arethe transitional jobs that include food preparation, personal care andsales related jobs.

“With such a strong economy companies are making specialaccommodations to attract and retain groups that are generally not asattached to the labor market (student aged persons, retirement agepersons, persons who may have chosen to be stay at home caregivers,disabled persons,)” states Michael Ziesch, research analyst for JobService North Dakota. “The contribution of out-of-state job seekers hasbeen important, with interest often times spurred by national mediapieces.”

Each of the states have tools that they use to understand what typesof jobs are available and where the jobs are going to be.

North Dakota’s latest Jobs Report shows that preliminary estimatesindicate North Dakota employment expanded on a year-over-year basisin November. Employers reported an estimated 17,400 more jobs whencompared to November 2010, a 4.5 percent gain. The private-industryleaders include Mining & Logging (+4,900), Construction (+3,800), andProfessional & Business Services (+2,600). Three of the remaining 10industries also reported gains of 1,000 or more jobs. Governmentreported the largest over-the-year decrease in jobs (-1,000).

The Jobs Report is updated monthly using data extracted from theCurrent Employment Statistics (CES) program. The report is asnapshot of the state's current labor market and summarizes payroll ornon-farm employment estimates for North Dakota and its three metroareas (Bismarck, Fargo and Grand Forks).

In Minnesota, employers are looking for quick access to skilledworkers, sometimes for short times, due to uncertain short- and long-term business prospects.

WorkForce Centers provide a tremendous amount of usefulinformation for jobseekers – ranging from job counseling to Job Searchclasses to labor market information to the MinnesotaWorks.Net jobbank, and much more.

In the southwest region, the WorkForce Council also created aregional careers website (www.swmncareers.org) to inform jobseekersof occupations in demand from employers in the region; and allWorkForce Center staff have been trained on how to use the differentlabor market information resources.

“We also work with students and at-risk youth to help them plan fortheir education and careers and understand labor market information,”says Cameron Macht, southwest Minnesota regional analyst for theDepartment of Employment and Economic Development (DEED). “Insouthwest Minnesota, more than 1,800 high school sophomores attendthe annual Southwest Minnesota Career Expo to learn about careers indemand in the region.”

Nate Dorr, northwest Minnesota regional analyst for DEED, saysthat the agriculture industry drives the Red River Valley economy.Fargo-Moorhead is the regional center, with health care and educationservices, but also with IT and other professional services and goodsproducing.

“We believe the skilled labor supply in Minnesota is critical to theRed River Valley and Fargo’s economic vitality,” Dorr says. “Of coursewith lakes in Minnesota, people will commute a longer distance to liveon a lake in Minnesota, while working a high pay job in Fargo (if theycan find one).”

WHAT WILL THE WORKFORCE LOOK LIKE IN THE FUTURE? Johnson states that Gov. Daugaard wants a workforce that is better

prepared for the challenges of a modern economy. “The STEM fieldsand skilled trade positions will play an incredibly important part in thefuture,” he explains. “States that aren’t paving the way today for thatfuture are going to be left behind.”

RReeggiioonn hhaass cchhaalllleennggeess iinn ffiinnddiinngg wwoorrkkffoorrcceeEach state in this region has its own set of challengeswhen it comes to retaining and attracting workforce. Ina nutshell, employers in Minnesota, North Dakota andSouth Dakota all need employees of some kind.

20 Prairie Business February 2012

South Dakota Job Openings

December 27, 2011 ...... 9,694December 27, 2010 ...... 5,813December 27, 2009 ...... 5,747December 27, 2008........ 9,030

6%

5%

4%

3%

2%

1%

0%N D J F M A M J J A S O N

North Dakota Employment Estimates Year-Over-Year Percent ChangeNovember 2010 - November 2011

Page 21: Prairie Business February 2012

prairiebizmag.com 21

Roberts adds, as with nationally, SouthDakota’s workforce will continue to age largelydue to the vast number of baby boomers. Those65 and older made up approximately 15 percentof South Dakota’s population in 2010, and areprojected to constitute about 19 percent by 2020,and over 23 percent by 2030.

“Although state population projections byethnic groups are not available, nationalprojections indicate minorities and immigrantswill constitute a larger share of the population,”she says. “The same trends can be expected inSouth Dakota.”

South Dakota’s school age population(those ages 5-17) was estimated at 139,534 in2010 and is projected to be 144,085 in 2020.That age group is expected to number about143,284 in 2025, and 141,609 by 2030.Proportionately, those of school age will holdfairly steady over the next 20 years, at 17.7percent of the population in 2010, 18 percentin 2020, 17.9 percent in 2025, and 17.7 percentof the population by 2030.

In North Dakota, Ziesch believes workerswill need some level of post-high schooltraining; STEM skills and soft skills-communication, leadership, independent work,and critical thinking skills will be necessary.

“We are experiencing the influence of out-of-state jobs seekers and immigrants. So, it willlikely be more heterogeneous,” he says. “All agecohorts of the workforce have been increasing(4th qtr 2009 vs. same period 2010.)”

The key challenge in workforce is attractingand retaining workers in a competitiveenvironment.

“High demand for oilfield workers isfrequently in discussion these days. Individualsof all skill levels are needed,” Ziesch says.“Workers with basic mechanical abilities, avalid driver’s license and a clean record maystart at the entry level, but can work their wayinto more skilled jobs fairly quickly.”

Johnson says one of the key challenges ismaking sure South Dakota companies can growand continue to invest in the state.

“A trained workforce is the largest barrier tothat growth and investment,” he notes.

Roberts states that working to fulfill SouthDakota employers’ workforce needs is a key

challenge. “We must effectively use our laborsupply to fill high-demand occupations in SouthDakota, determine what skills employers areseeking, provide appropriate training, andconnect with under-employed workers to retooltheir skills to match those in demand,” she says.

In southwest Minnesota, the workforce willlikely grow older and become more diverse. “Thenumber of white people is declining in theregion, while people of other races and originsare increasing,” Macht adds. “Likewise, thenumber of young adults has been declining, whilethe number of older adults has been increasing.”

There are also key changes in northwestMinnesota including an increased demand forspecialized training beyond high school,increasing diversification among the labor force,more women graduating college than men, aginglabor force and work for retirees, and continuedneed for entrepreneurs to maintain and growlocal economies.

Small towns continue to lose people to largerregional economic centers (“brain drain” stilloccurs), and eventually lose services,” Dorr states.“Global pressures force the local labor force tosurvive on quality and innovation, notcommodities or quantity.” PB

HOW DOES COLLABORATIONIMPACT WORKFORCE?

Tuesday,February 288 to 10 a.m.,

Holiday Inn of Fargo

Register atFMWFChamber.com

or 218.233.1100

Featuring Stephen Moore,lead economist for theWall Street Journal, and

a panel of local businessand industry leaders.

Presented by:

To be continued... To read this story in its entirety visitprairiebizmag.com

Page 22: Prairie Business February 2012

22 RRV Prairie Business February 2012

‘Dedicated mobile website’ assists Fargo-Moorheadvisitors

©2011 Summit Group SoftwareMicrosoft and Microsoft Dynamics CRM are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

Meet Steve.He DoesMorewith Less.Higher sales and customer satisfaction withless IT infrastructure and fewer headaches.

That’s Microsoft Dynamics CRM Online. Put the cloud to work for youso you can stop worrying about IT infrastructure and start focusingmore on your customers. That’s big thinking for small business.

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701.478.1387

Let’s get down to business.

Staying sophisticated in technology is

one big reason the Fargo-Moorhead

Convention and Visitors Bureau has

launched a new ‘dedicated mobile

website’ that allows visitors to get

information and offers on what to do,

where to eat or where to stay.

We had to stay sophisticated because browsers are moresophisticated,” states Cole Carley, president and CEO ofthe Fargo-Moorhead CVB.

The new ‘dedicated mobile website,’ Fargomoorhead.org, waslaunched in December providing access to community informationwith any smart phone, plus the location aware guide allows visitorsto use the ‘nearest me’ feature to list and sort options, makingexploring the community quicker.

In addition to the ‘nearest me’ function for finding lodging andrestaurants, the ‘what to do’ segment allows users to sort by type ofactivity or event. Local businesses and organizations are able toupload calendar information to the Fargo-Moorhead CVB website,

and the content will appear on bothplatforms. Deals or discounts can

be submitted [email protected] tobe placed on both thewebsite and the mobile site.“It’s all about meetingincreased consumerexpectations,” Carley statesin a discussion about themobile website launch.“Smart devices are rapidly

Page 23: Prairie Business February 2012

prairiebizmag.com 23

IItt’’ss aallll aabboouutt tthhee RReedd RRiivveerr VVaalllleeyy

moving to the top as the go-to-tool for information, whether to find agreat coffee or a local hotspot. We want to make each visitor’sexperience here enjoyable and making our visitors guide mobile helpsaccomplish that.”

Research shows that by 2013, mobile sites will be outsellingcomputers by almost double. In addition, 24 percent of all mobileusers are using Smartphones. The research also shows that 93 percentof Smartphone users are at home and another 87 percent use thedevices while on the go.

Jennifer Strickler, vice president of User Experience for FlintInteractive, based in Fargo, N. D., led the team that designed the‘dedicated mobile website.’ “Our goal was to design a clean, simpletool to help visitors navigate the wealth of options available in theFargo-Moorhead area,” she says.

Flint Interactive used the CVB’s brand elements and made ittouch-friendly. It also included adding photographs and videos thatshowcase the energy of Fargo-Moorhead. Other things consideredwhen doing the website were quick load time, easy navigation, andsimple, helpful content.

“Companies are starting to realize the importance of a mobile-dedicated version of their websites,” Strickler says. “As an extension ofthe brand, it’s important to give customers a positive user experiencein mobile/tablet platform.” RRVPBAlan Van Ormer - [email protected]

Page 24: Prairie Business February 2012

24 Prairie Business February 2012

Investments in broadband technology create jobsand expand economic opportunities in ruralAmerica,” explains Jasper Schneider, USDA Rural

Development State Director in North Dakota.“Broadband provides the capability for improvededucational services, health care, public safety andspurs economic development.”

Broadband allows users to access information viathe Internet using one of several high-speedtransmission technologies.

Schneider notes that high-speed Internet is 21stcentury infrastructure and literally opens up theworld to rural citizens; while decreasing the digitaldivide between urban and rural America.

“Broadband successfully pairs hope withopportunity; it opens up avenues for rural

entrepreneurs; it provides access to a worldwidemarketplace; it improves the quality of life and allowspeople to communicate with family, friends andbusiness contacts,” he says. “There is no doubt thatbroadband makes living in rural America moreattractive, people can enjoy the benefits of living in arural community while having access to people andinformation from around the world.”

In Fiscal Year 2011, USDA provided funding forthe following North Dakota projects:

*BEK Communications Cooperative —$26,746,000 in loan funds will be used to expand aFiber-To-The-Home (FTTH) broadband system.Upon completion of this RUS-funded project, 100percent of BEK’s subscribers will be served by fiber.

*SRT Communications, Inc.—$24,832,000 in

Economic Development

Connectinga region to the global netwo

rk

Current broadband projects are connecting

the region’s unserved and underserved

areas to the global network.

Rendering of the new

DCN Network Operations

Center and Collocation

facility in Bismarck, N. D.

(Rendering courtesy of

DCN)

Midcontinent

Communications Sioux

Falls Dish. (Photo courtesy of

Midcontinent

Communications)

Page 25: Prairie Business February 2012

prairiebizmag.com 25

loan funds will be used to install 2,143 miles of buried fiber optic cable and related equipmentthroughout the proposed Fiber-To-the-Premise (FTTP) system. The FTTP system will beconstructed in areas outside of towns in 12 of the borrower’s 26 exchanges. The service areas inthe towns will continue to be offered DSL at speeds of at least 55 Mbps with its relatively newcopper plant.

*Polar Communications Mutual Aid Corporation—$32,939,000 in loan funds will be used toexpand the Borrower’s FTTP broadband system throughout the borrower’s 18 exchanges. Theupgraded system will help meet current and future requirements for delivery of voice, video andhigh speed data to subscribers. Upon completion of this RUS-funded project, 100 percent ofPolar’s subscribers will be served with broadband via various technologies.

*Reservation Telephone Cooperative —$2,293,000 be used to expand a (FTTP) broadbandsystem.

Dakota Carrier Network (DCN), headquartered in Bismarck, N. D., is also placing more fiberin the ground. DCN is using stimulus grant funding to place another 169 miles of fiber, whichprovides access to more than 175 anchor institutions that includes education, medical andgovernment agencies. The project is slated to be completed in July 2013.

DCN General Manager Evan Hass believes this project is good for North Dakota because itallows greater bandwidth in the state. “Businesses are increasing their bandwidth requirements,” hestates. “We are keeping up with the increased demand in bandwidth.”

Hass adds that businesses are trying to connect to multiple locations. “A stimulus project isdifferent than other projects because it allows you to put more fiber in the ground in places thatare not economically feasible,” Hass explains.

Along with the stimulus project in 2012, DCN will be increasing its Ethernet backbone acrossNorth Dakota because it is running out of capacity and doesn’t have all the features and functionsof a new backbone. The $3.5 million project will be completed this year and allows DCN to growits Ethernet backbone up to 100 gigabytes, as well as accommodate the heavy growth in westernNorth Dakota. In early 2012 DCN will complete construction of a new Network OperationsCenter and Collocation facility in Bismarck that is designed for survivability, includingwithstanding 200 mph winds.

In South Dakota, SDN Communications, headquartered in Sioux Falls, S.D., is also usingstimulus funds to expand its broadband network.

SDN’s new fiber will provide connectivity to more than 300 anchor institutions – schools,rural hospitals and clinics, government office buildings, and local, county, state and federal officebuildings – across the state. The communications company is approximately three-quarterscomplete and has built 250-350 miles of fiber and touched more than 200 anchor institutes. Theremainder of the $25.7 million project is expected to be completed by the end of the year.

“Our backbone will be primed and ready for the next decade of broadband growth,” says MarkShlanta, who has been the CEO of SDN Communications since 2000. “Companies will have thefastest network experience on our network.”

It will also assist those who have been connectivity challenged. “Because of the new fiber, newdoors will be opened for communities for economic development,” he mentions.

In 2011, Midcontinent acquired the Minnesota and Wisconsin assets of US Cable, addingmore than 100 communities to its footprint. It also extended Midcontinent’s network acrosscentral and southern Minnesota. In 2012, Midcontinent will continue to work on upgrades of newproperties in Minnesota, and work with customers to give them access to Midcontinent’s NPNet.

Each year for the past several years, Midcontinent, also headquartered in Sioux Falls, hasinvested 10’s of millions of dollars to expand and upgrade its network. “In the past year wedigitized our network to provide increased capacity to accommodate Internet speeds up to 100Mbps and allowing access to over 100 High Definition T V channels,” says Tom Simmons, SeniorVice President of Public Policy, adding the upgrades mean that South Dakota business customersin communities served by Midcontinent and others will have access to the same or better qualitycommunications infrastructure as any other in the country if not the world. “What remains ishow those businesses choose to use the connectivity. The assumption that all rural communitiesare isolated by a digital divide is simply not true and our business customers are free to competewith those located in the major metro areas if they choose to do so.”

In a nutshell, Simmons feels it is important to provide broadband to the region for threereasons: our customers need and demand robust reliable broadband services, broadband is a baserequirement for any level of economic development and broadband is an educational requirementto prepare our young people to compete in a world economy. PBAlan Van Ormer - [email protected] more information about local broadband companies visit prairiebizmag.com.

SDN Communicationsworker is pulling outconduit. (Photocourtesy of SDNCommunications)

Page 26: Prairie Business February 2012

26 Prairie Business February 2012

Traditional mediums deliver you a story and brings yousomething you didn’t expect,” states Jon Thorp, creative andpublic relations director for The Promersberger Company in

Fargo, N. D. “Traditional mediums also bring ideas to you. It brings

you something of value.”Traditional marketing is the company’s primary focus and hasbeen for close to 40 years. It started with consumer advertising,but in the last 20 years has moved more toward niche industrieslike construction and landscaping. However, The PromersbergerCompany is doing more with electronic and social mediums.

“That niche is very traditional,” Thorp explains, however,adding that non-traditional mediums are becoming moreimportant to our industry.

Roger Reierson, CEO and chairman of Flint Group, alsoheadquartered in Fargo, a network of agencies that providesfull-service marketing and communications, says as digital andonline marketing have become part of the new mix of mediayou can use to reach customers and prospects, it’s changed theway we need to look at traditional marketing.

“The advent of the Internet has started people thinkingdifferently,” Reierson states. “It is important that traditionalmedia is in the mix and they all have to work together. As welearn more about the digital world, we learn it’s created moreof a conversation in marketing. We realize the existing andprospective customers want interaction to learn more aboutproducts and services. Learning how to use online and digitalmediums in tandem will only strengthen traditionalmarketing.”

Thorp and Reierson consider traditional mediums anassortment of marketing outside of digital and online

mediums and could include newspapers, periodicals, magazines,traditional broadcast mediums and direct mail.

“In my mindset, traditional marketing isn’t dead. It’stransforming,” Thorp notes. “Companies understand that people arelooking online. Traditional marketing is a way to direct them to the

right base.”Thorp provides this example that

traditional marketing is changing. “Directleads are not the goal anymore,” he states.“Traditional marketing works best to move aperson from point A to point B – but withpoint B being a visit to a website, micrositeor other information source.”

Reierson says that since budgets arenot increasing at the rate of different mediaentering the market place, the media mix isbeing spread thinner and there are morechoices for the dollar. Educating yourself onhow to take an integrated approach in youradvertising mix is more important than ever,he notes.

“We have to look at how we can getthe maximum value out of all the advertisingthrough an integrated approach,” he says. “Itis more of a science than it is has ever been.”

Reierson notes that since marketing, ingeneral, has become more complicated, hisagency and others have added specialists tounderstand the impact of the new elementsthat go into a marketing plan. “The amountof new tools and information coming ourway keeps accelerating but we need to stayon top of it,” he states. “It’s not somethingyou can just jump into because it’s there.”

In order for traditional marketing tocontinue to be competitive, changes have tooccur, according to Thorp.

Marketing

With all that is happening in the social media

network, traditional types of marketing still

have a place in the marketing community.

Traditionalmarketingstill has its place

Page 27: Prairie Business February 2012

prairiebizmag.com 27

� Expectations have to change. Traditional marketing shouldcast a wide net to get prospects to the next level ofcommunication.

� Traditional marketing should offer a response device to helpprovide metrics to determine the message’s effectiveness.

� Understanding the value of traditional marketing. It is not aseffective of a direct response mechanism anymore.

� Focus on grabbing attention to look further.� More strategic. There must be a defined reason for everything

you do – traditional or non-traditional.� Hone down the message. Focus on one message that you

want your audience to come away with.“Traditional media is one of the few cost effective ways to reach

certain people,” Thorp explains. “It comes down to expectations.We know it is reaching the right people. Traditional marketing maybe less impactful than in the past, but at least you know who isreceiving it.”

Thorp adds that most marketing companies look at what is bestfor the money that is being spent. “It doesn’t mean the medium isdead, it just needs to change,” he says. “As long as there are stillaudiences for traditional mediums, then there are effectivemarketing devices to reach them. Advertisers just need to be morestrategic.”

Reierson states that traditional marketing is ‘absolutely’ notobsolete. “I don’t think the impact has become obsolete, it haschanged,” he says. “I truly believe the new media mix is playing arole in strengthening the impact of traditional marketing, if it isused correctly.” PBAlan Van Ormer - [email protected]

SINCE 1989COMMUNICATIONSKAT

(#%+/",'- ) #1./%",$,'-!&'$0*",'- ) "%#,','- ) /10!#",&'

888.571.5967katcommunications.com

facebook.com/katcommunications

Jon Thorp, creat

ive and

public relations d

irector

for The Promers

berger

Company in

Fargo, N. D.

Roger Reierson, CEO and chairman ofFlint Group

Page 28: Prairie Business February 2012

28 Prairie Business February 2012

What is known is that even though theagency does not have a senate-confirmed director (as of Jan. 13,

2012), all banks, large and small, will ultimatelybe subject to the Bureau’s rules. Only bankswith more than $10 billion in assets will besubject to its direct compliance examinationauthority.

Because the Bureau’s consumer protectionrules will be applied to banks under $10 billionby existing bank regulators like the FederalReserve, FDIC and OCC, and because theBureau also has the authority to review theresults of compliance exams conducted onsmaller banks, Curt Everson, president of theSouth Dakota Bankers Association, thinks “it ispretty clear that all regulators are taking asecond look at their compliance examinationprocess and asking the question are we toughenough?”.

The Consumer Financial Protection Bureauwas the consumer protection centerpiece of theDodd-Frank Law. The Bureau has theresponsibility and the authority to write all theregulations in relationship to consumerprotection like truth in lending, truth in savingsand home mortgage lending disclosure laws.Everson states, “I understand that the Bureau hasabout 500 people on its payroll, so I assume theyare busy trying to rewrite the consumer financialprotection rulebook.”

Bankers do expect Dodd-Frank and theCFPB to have long-lasting impacts on importantbank revenue streams, specifically interchangefee income. Regulatory burden and overallcompliance costs are also a big concern. But thesheer size and complexity of Dodd-Frank is also

causing problems for all of the regulatorscharged with its implementation. As of the endof 2011, about 200 Dodd-Frank rulemakingdeadlines have passed and nearly three-fourthsof those deadlines have been missed; some bybank regulators, some by the CFPB and some byother federal regulatory agencies, Everson notes.According to Everson, “All of these factors worktogether to create uncertainty for banks of allshapes and sizes.”

Rick Clayburgh, president and CEO of theNorth Dakota Bankers Association, doesn’tbelieve that this is good for community banks.

“Part of the problem is that Dodd-Frankpassed through Congress without sufficientthought on the impact on community banks,” hesays. “It was more of a knee jerk reaction to thefinancial crisis. In the end the folks getting mostof the regulations are insured financialinstitutions who weren’t part of the problem.”

As a trade organization, the North DakotaBankers Association, works with regulators andtheir congressional delegation to point out theunintended consequences created by thelegislation. “We are working to unwindregulatory actions that don’t make sense,” hestates. “We are assisting our members throughoutreach and by providing member peer groupsfor compliance.

“We help provide assistance with regulatoryburdens coming down on them,” Clayburghcontinues. “So in a sense, it is a two-frontprocess – one working to address what we canfix from regulations and legislation and (and theother) providing assistance for what we can withregulatory pressures.”

Mark Finstad, president of Ultima Bank

CS: FinanceFinance

It is safe to say that the banking industry is not sure what is happening

with the federally-established Consumer Financial Protection Burea

u.

Banking industry not sure about

Consumer Financial Protection Bureau

Rick Clayburgh,

president and CEO of the

North Dakota Bankers

Association

Curt Everson,

president of the

South Dakota

Bankers Association

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Minnesota in Fosston, Minn., says fromhis understanding that the role of theCPFB is to make rules, supervise andenforce federal consumer financialprotection laws and restrict unfair,deceptive and abusive acts andpractices with regard to consumerfinancial products and services.

“They have already created a centralphone number for consumercomplaints. In addition, they are topromote financial education forconsumers and research consumerbehavior. They are also to monitorfinancial markets for risks toconsumers and enforce lawsprohibiting consumer discrimination,”he says. “While CPFB is and will bemaking rules for all financialinstitutions, Title 10 of the Dodd-Frank Act allows them to supervise andenforce rules only for financialinstitutions with assets greater than $10billion.”

Ultima Bank is under the $10billion threshold, but Finstad expectsthat rules implemented by CPFB willbe adopted and enforced by otherfinancial regulators.

“We are paying close attention andneed to be ready to deal with the“trickle down” to smaller institutions,”he states. “We are particularlyconcerned with actual and potential“price fixing” of consumer financialproducts. Can you imagine if a groceror hardware store owner were told bythe government how much they couldcharge for a food item or tool? We arealready seeing this in small consumerhome mortgages where the interest rateand fees we are “allowed” to charge areregulated. Some banks have stoppeddoing these mortgages as a result,reducing the financing optionsavailable for smaller mortgages. In oursmall town markets, this is a realconcern. We have a reputation fortaking care of this niche but the newregulations are making it more difficultto serve our customers profitably.”

Finstad feels it is bad when newgovernment regulations limit thefinancing options of consumers. “Webelieve the competitive marketplace iswhere the price of products andservices is best determined,” he says.PBAlan Van Ormer -

[email protected]

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Economic Development

‘Remarkable’economicactivitiesoccurring

Contrary to statements made by someof my “friends,” folks from big citieslocated near the coasts, we live in agreat part of the country.

Tom Simmons is the seniorvice president of PublicPolicy for MidcontinentCommunications,headquartered in SiouxFalls, S.D. He can bereached [email protected].

Sure, they refer to our homeland as “flyover states”, or the“lonely windswept prairie”, or my all-time favorite, “one ofthose uninhabited rectangular states in the north.” But if

they bothered to really look at the Dakotas, all sarcasm wouldlikely be replaced by intense interest if not envy. When therecession “officially” hit the nation in December of 2007, we wereall bombarded by negative national media stories. Since thepowers that be “officially” declared the recession over in July of2009, recovery has been hardly noticeable in most of the country.Our part of the country stubbornly resisted the full economicdownturn and associated pessimism. Our unemploymentnumbers grew no more than half that of the national average,mortgage foreclosures did not make the headlines, and the farmeconomy is rock solid. Business growth and constructioncertainly slowed, but that was more attributable to changes inlending policies driven by regulatory decisions and less aboutlack of confidence or interest on the part of the businesscommunity.

We don’t have to dig deeply to find some pretty remarkableeconomic development activities that have continued during therecession and actually ramped up in the past couple of years,often scoring national recognition. The North Dakota Oil Patchmay be the most notorious. A recent Wall Street Journal articlepredicted that 2012 would be the year when the Bakken reservewill pump more oil than Alaska’s Prudhoe Bay. The ResearchCorridor in Eastern North Dakota has been working to proposeGrand Forks as a major hub for unmanned aircraft. The go2030project in Fargo may be one of the most exciting redevelopmentprograms in the country. Forward Sioux Falls just raised $12million for the execution of a five year plan to bring high-qualityjobs, diversify the local economy and build on researchcapabilities to train end educate the future workforce. Workcontinues in Rapid City and the Black Hills with a combinationof opportunities at Ellsworth Air Force Base, the DeepUnderground laboratory and developments at the School ofMines (South Dakota School of Mines & Technology). All fourcorners of the Dakotas are alive and well with activity. Ourcompany has been party to increasing demand for “big pipe” datadistribution through our NPNet. Some remarkable telemedicineprojects allowing outlying areas access to specialists andconsultants without leaving their home towns are becomingavailable to a growing number of folks in small Dakota towns.We have jobs for folks and need more folks for the jobs if theyhave the skills, the knowledge and willingness to partner with usDakotans to chart a richer future.

So to our friends on the coasts and those who haveoverlooked us in the past, you would do well to look a littlecloser. We may be what you’re looking for and our welcome matis out. PB

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Ethanol blender pumpsgrowing in numbers

Blender pumps offering consumers a variety of ethanol-blend fuelsare growing in numbers across the Dakotas and Minnesota.

We’re very satisfied with the progress ofblender pump sales in North Dakota,” TomLilja, North Dakota Corn Growers Director,

says. “In the past, a few stations may have had a pumpdedicated to E85 in the corner. Now, blender pumpsare right next to standard gasoline pumps andconsumers are using the blended fuels.”

North Dakota just surpassed installation of 200+pumps at more than 50 locations across the state.The majority of pumps are found in the easterntwo-thirds of North Dakota. Blends vary from

E10 to E30 to E85.“There are a few stations that offer an

E20 blend,” Lilja says. “Most of the pumpsdidn’t start going in until the 2010construction season. The North Dakotalegislature initiated the blender pumpprogram during the 2009 session. In 2009,average monthly sales of ethanol blendswere at 23,000 gallons. In 2011, sales ofethanol blends averaged 112,000 gallons permonth and surpassed a million gallons in the

first nine months. Our sales reports don’t currently breakethanol sales out into the different blends so it’s all reportedas E85. It all comes down to access. If it’s available,consumers are choosing it.”

Funding for installation of additional blender pumps inNorth Dakota is available to station owners through spring2013. The state provides a $5,000 grant toward purchase of apump. North Dakota Corn Growers Association offers anadditional $2,500. The typical cost of a blender pump is$20,000.

South Dakota was the first state to allow blender pumpinstallations. Currently, the South Dakota Governor’s Officeof Economic Development (GOED) is accepting applicationsfor financial assistance to help South Dakota retailers installblender pumps. The Ethanol Infrastructure IncentiveProgram was approved by state legislators during the 2011session. It will redirect $3.5 million from the state’s EthanolProducer Payments Program over the next five years. During2012, $950,000 is available. The program was fundedthrough a cooperative effort between the State of SouthDakota and South Dakota Ethanol Producers.

GOED, in conjunction with the South Dakota EthanolProducers, the American Coalition for Ethanol,Growth Energy, South Dakota Petroleum andPropane Marketers Association, and the SouthDakota Association of Cooperatives heldinformative meetings about the blender pumpgrant program throughout January.

Grants of up to $25,000 for installationof a station’s first blender pump are availablethrough the new program. Applicants are alsoeligible to receive up to $10,000 for installation ofeach additional pump. Station owners participatingin the program are required to offer 10 percent, 15percent or 20 percent or more ethanol blends withthe pumps. They’re also required to continue sellingethanol blends for a continuous 24 monthsfollowing installation unless market conditions makecompliance impractical.

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The first grants will be awarded on a first-come first-served basis. The remaining 20percent will be awarded competitively.

“In past blender pump programs, grants were awarded to 29 stations to complete 61installs,” Hunter Roberts, GOED Energy Policy Director, says. “We currently have 83 stationsthat feature blender pumps. Ethanol sales have continued to rise every year since the pumpswere installed. We’re optimistic about the benefits and the growing demand for ethanolblends. Through these installation programs, consumers have the option to choose ethanolblends. We’re happy to give them that opportunity.”

South Dakota is home to 15 ethanol production facilities and nearly 900 people aredirectly employed by the ethanol industry. The state produces about 1 billion gallons ofethanol each year.

In Minnesota, 71 retailers have installed at least one blender pump through Minnesotastate funding initiatives.

Kelly Marczak, Director of Clean Air Choice, a program of the American LungAssociation, says they currently have blender pump funding assistance available through agrant provided by the Minnesota Corn Research and Promotion Council.

“There are some new pumps being installed,” Marczak says. “The latest one will be at aHoliday station in Moorhead, right along the interstate.”

Minnesota has more than 360 E85 retail outlets. In the first eight months of 2011, E85sales increased by 26 percent, with sales of nearly 3 million gallons more than during thesame period of 2010.

“There is clearly a sustained demand for cleaner alternatives to petroleum-based fuels,”Marczak adds. “Using alternative fuels reduces lifecycle emissions and air pollution. They alsohelp reduce dependence on petroleum.”

In 2010, the USDA set a goal of establishing 10,000 blender pumps throughout the UnitedStates by 2017. In September 2011, 33projects in 22 states were approved forblender pump grants in the latest round ofUSDA funding. That month, USDAannounced a total of $27 million in grantsand loan guarantees through the RuralEnergy for America Program (REAP) forvarious energy-related projects. This wasthe first year blender pumps were eligible toapply for REAP funding. Allowing blenderpumps to qualify for REAP funding is oneof several strategies USDA has used tomake the 10,000-pump goal moreattainable.

Blender pumps are specifically designedto dispense ethanol-blended gasoline,ranging from unleaded gasoline to up 85percent ethanol and 15 percent gasoline(E85). They also dispense mid-level ethanolblends such as E15, E20 and E30.

Lilja believes that the economics ofethanol blends will continue to strengthensales of the blended fuel.

“Station owners will always have anadvantage when they offer different blendsof ethanol fuel,” Lilja says. “Consumerswant the opportunity to purchase ethanolblends. They just need access to theproduct. That’s what the blender pumpprograms are providing.”Loretta Sorensen, Owner, Prairie Hearth

Publishing, LLC. [email protected].

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Nowhere else do all of these different parties come togetherto make recommendations to our legislative leaders,” statesAl Anderson, director of the Department of Commerce in

Bismarck, N. D. “We have a good track record of getting ourrecommendations put into law. There are challenges of all thedifferent viewpoints, but we get to the point we can agree toempower North Dakota to develop all energy sources.”

Empower North Dakota has been in place since 2007. Two keygoals are doubling energy production by 2025 and providing for afair and responsible regulatory environment that promotes energydevelopment.

Since the program started five years ago, wind energyproduction has increased to more than 1,400 megawatts, whichplaces the state 10th in the nation. In addition, North Dakotaproduces the eighth most ethanol, is first in blender pumps acrossthe United States, and fourth in oil production. Also, NorthDakota is tops in lignite coal reserves. An estimated 70 percent ofthe energy is shipped out of North Dakota.

“Overall, North Dakota has increased its exports dramatically,”Anderson notes. “Since 2000 we have increased all of our exportsby over 300 percent. We’re trying to supply the needs of the nationas much as we can with all of our natural resources.”

Empower North Dakota developing cohesive energyprogram

Empower NorthDakota hastaken a diversegroup of energyplayers anddeveloped acohesive energyprogram todevelop all ofNorth Dakota’senergyresources.

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AMONG THE ACCOMPLISHMENTS THE GROUP HAS MADE:

*Since 2001, the state has promoted an energy policy that includes a broadrange of energy development – conventional and renewable.

*The Commission structure brings together energy industryrepresentatives enabling them to share information and discuss issues ofconcern. In addition to encouraging inter-industry cooperation, this has

been helpful to the legislature and the administration.

*Wind energy development tax incentives, property tax reduction and salesand use tax exemption, helped grow the industry from minimalproduction to more than 1,400 megawatts.

*As a result of Commission discussions, energy policy is based uponincentives rather than mandates, resulting in recognition by the industrythat state government is responsive to their recommendations.

*Creation of the North Dakota Transmission Authority and PipelineAuthority, both of which are significant for development ofinfrastructure.

Challenges that exist with oil and gas are similar and shared by all theenergy producers. Four key areas that the group has identified are: workforce

(all have that challenge to find skills,);regulation; infrastructure (in particular,housing, roads in western North Dakota,transmission lines and pipelines to exportmore of those products); and research anddevelopment.

Anderson believes the remainder of thenation can learn from what is happening inNorth Dakota because Empower North Dakotainvites everyone to the table. “We’re looking atwhat’s best for the state, but also what’s bestfor the nation as a whole,” he says.

“The biggest challenge in any kind ofinvestment is the uncertainty,” Andersonstates. “The more certainty we can get inhaving an overall comprehensive policy set,the better it is for companies to invest theirdollars. They know what the playing field islike and the ground rules.”

Anderson notes that the state’s role is to create an environment that allows the privatesector to create jobs.Alan Van Ormer - [email protected]

Al Anderson, director, Department of Commerce, Bismarck, ND

On February 24, 1971Algeria nationalized French oil companies.FYI

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36 Prairie Business February 2012

Grand Forks/East Grand Forks

For example, the University of North Dakota and AltruHealth System are joining new emerging sectors - such asthe university's work with Unmanned Aerial System (UAS)

and new missions at the Grand Forks Air Force Base - to providethe two communities a diversifying economy that will continue tohelp that region grow.

“We don’t have one dominate area,” notes Klaus Thiessen,President and CEO of the Grand Forks Region EconomicDevelopment Corporation. “Our approach has been to look atgrowth from within.”

East Grand Forks Mayor Lynn Stauss says collaboration isimportant because East Grand Forks and Grand Forks aredestination places for the region.“It is important that we bothwork together to bring people to the area and make them feel thatthey are wanted in both cities,” Stauss explains. “Together, wevalue their presence because it is important to our economy.”

2011 COULD BE CONSIDERED THE YEAR OF EXPANSIONThiessen believes in sheer number of jobs, Amazon.com was

the most significant expansion. Black Gold and AE2S haveconstructed new headquarters, while Simplot continues to be ananchor in the community with its $100 million expansion project.The Energy and Environmental Research Center (EERC) has 350world class researchers and UND continues to work with thecommunity, as well as the Grand Forks Air Force Base to expandits programs, Thiessen notes.

One such program is the UAS Operations Degree program.The first students graduated from the program in 2011. In 2012,the first students will be taking a portion of their courses at theUND UAS Training Center on 4,600 square feet of leased spaceon the Grand Forks Air Force Base. The Training Center will also

be providing contract training for those associated with theCustoms and Border Protection.

AIR FORCE BASE STEPPING UP ITS MISSIONColonel Timothy E. Bush is the Commander of the 319th Air

Base Wing on the Air Force Base. At the end of the KC-135Tanker mission in late 2010, Grand Forks Air Force Basetransitioned from an air refueling wing to an air base wing. Hisjob as wing commander is to ensure Airmen are trained andprepared for the expeditionary fight, to provide superb facilitiesand services to support tenant units that operate air power fromthe base, and to ensure the base is ready to meet any new missionrequirements deemed necessary by the Air Force.

This includes supporting the 69th Reconnaissance Group'sGlobal Hawk operations, U.S. Customs and Border Patrol'sPredator operations, and the UND Training Center.

“We have to be part of the community,” Col. Bush notes,adding that the base provides approximately $265 million to theregional economy. “Something that is remarkable to me is thatthe only seam is the Red River. Grand Forks and East Grand Forksoperate so cohesively as partner cities. There are opportunitiesalong each side of the river to develop.”

The communities believe that the Grand Forks Air Force Baseis critically important.

“I think it is very important to look to the future,” states JohnSchmisek, Grand Forks County Commissioner and a member ofthe Base Realignment Impact Committee whose mission is toenhance what is happening at the Air Force Base around theentire region. “These are our friends and neighbors and we don’twant to lose them.”

One spin-off from what is happening with the UAS program

Community Spotlight

The Byron L. Dorgan Terminal opened in August at the Grand ForksInternational Airport. This new $22.5 million terminal offers manynew and convenient improvements including easier navigationthroughout the facility, more spacious gate areas, a full service bar,digital signs throughout the airport, and a unique gift shop. Theterminal also is more energy efficient with a new geothermal heatingand cooling system as well as other energy efficient upgrades. Photocourtesy of Grand Forks Regional Airport Authority.D

owntown Grand Forks. Photo courtesy of The Chamber Grand Forks/East Grand Forks.

Ralph Engelstad Arena - Photo courtesy of Greater Grand Forks Convention and Visitors Bureau.

The Northland Community & Technical College UAS Maintenanceprogram is the first civil maintenance-training curriculum forunmanned aircraft.

Working together to build two communitiesThe old andthe new areworkingtogether tohelp GrandForks, N. D.and EastGrandForks,Minn.,continue tobe vibrantin this neweconomy.

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is the opening of the Unmanned Applications Institute, International. Themission is to develop unmanned aerial vehicle (UAV) and unmanned aircraftsystems (UAS) imagery analyst curriculum. Currently, the company hascontracts with several universities in the nation, including NorthlandCommunity & Technical College in Thief River Falls, Minn., and North DakotaState College of Science in Wahpeton, N. D. The company focuses on trainingincumbent workers and workforce development associated with the UAS andUAV.

“Our focus is more closely associated with development of commercial UASindustry,” states Maynard Herting, Jr., Executive Director of UnmannedApplications Institute, International. “What we’re looking at now is airspace,which is a limiting factor for the whole industry.”

EAST GRAND FORKS GROWINGWhile UND has developed a Center of Excellence program, Northland

Community & Technical College has received a $4.6 million grant to developan imagery analysis program and is hoping to work with returning veterans inhigh technical fields. The college also has developed an aviation maintenanceprogram to assist those working with UAS and UAV, as well as developing fiveprograms on the East Grand Forks campus involving architecture, carpentry,HVAC, plumbing and electrical.

“There is so much vibrancy and optimism in this (East Grand Forks)community,” states President Ann Temte. “There is a lot of optimism andcooperation.”

Possibly, the most significant item, as the community prepares for its 125thanniversary in August, has been East Grand Forks downtown development overthe past five years. The River Walk Center, which was a flood recovery program,is being used to redevelop the community’s downtown. It is becoming anentertainment and restaurant location for, not only those living in East GrandForks, but also those from across the river.

“It has given our community an additional sense of identity,” states JimRichter, Executive Director of the Economic Development Housing Authority.“Our redevelopment from the river front to our main traffic areas of Highway 2and 220 has been extraordinary. The skyline has changed.”

Total investment for the 10-block corridor is estimated to be around $25-$30 million. Richter notes that an additional $10-$15 million in privateinvestment is there also.

The 10-block area runs from the Red River to the junction of Highway 2and 220. It includes Sanford Clinic, the Eagles Club, Sunshine TerraceApartment Complex, Development Achievement center. In addition, newinfrastructure to complete the development of the cities second industrial parkwill be done in 2012. The 18 acres was developed into 20 lots, of which, sixhave been sold and three are pending sale.

“Knowing some of the businesses that do business on both sides of the riveris very important,” Richter says. “Being a small community next to largecommunity we believe we contribute to the regional economy. We like to thinkthat this is a nice clean community and we are doing our part.”

A REGIONAL APPROACHAltru Health System also believes it is doing its part in the region. The

integrated health system is located throughout northeastern North Dakota andnorthwestern Minnesota.

“Altru is very community based in our approach,” states Dave Molmen,CEO of Altru Health System, headquartered in Grand Forks. “Our big focus islooking at health care of the whole region and community and trying to seehow we can improve the health status of people we are serving. We’re veryproud to be providing medical service, but we recognize the future of health forour community is tied up in how we can get involved in the community,individuals and others to affect health at the grass roots level.”

Working with the Grand Forks Park District and Grand Forks YMCAFamily Center, Altru is investing $6.5 million in helping create a health andwellness campus on the south end of the city. Altru is enhancing thedevelopment by focusing on four components: children and adolescents,world-class sports medicine program, improved access to primary care andprevention and genetic medicine.

In the future, Altru will be looking at a community health assessmentprocess involving 30-40 agencies.

Altru Health System is doing what Grand Forks Mayor Mike Brown expectscommunity leaders to do: dream. “This is a quality we value in our leaders,” he

states. “We’re celebrating our success and that means more success.”A new airport terminal was opened in August, there have been additions to

Central and Red River high schools, as well as several business expansions,including Amazon.com, Black Gold, and J.R. Simplot. UND has added threebuildings: Gorecki Alumni Center, UND helicopter hanger, and Hydrogenbuilding.

“One challenge is keeping the momentum moving forward,” Brown says.“Our next step is developing a community foundation. I believe in a legacy ofpeople giving back to the community.”

Thiessen feels that the overarching factor of what is driving the communityforward is collaboration. This includes the city, county, university, Chamberand EDC, all working together on key projects.

This is going to help with the major challenge of finding a workforce to fillpositions as the communities move into the future. To assist with thatworkforce need, for the first time a Career Fair is being developed that is goingto show students what opportunities there are in the region.

In addition, the EDC and the Greater Grand Forks Young Professionalsstarted Launch Grand Forks, an initiative that works to attract and retaintalented adults to the Grand Forks region to keep the workforce growing instrength and numbers. Also, the Young Professionals are currently working withthe EDC, the Chamber, UND, the city of Grand Forks and numerous localbusinesses and organizations to implement plans, programs and strategies toattract new talent to the region and keep young talent at home.

Stacey Heggen, Executive Director of the Greater Grand Forks YoungProfessionals, notes these are important steps if we want people to know thatthe communities are not only great places to come to school, but are also greatplaces to get a job, raise a family and build a life. “As I get a glimpse of what thecommunities have to offer, they are progressive communities. They are one ofthose hidden gems in the state.” PBAlan Van Ormer - [email protected]

To read this story in its entirety and view more photosvisit prairiebizmag.com

Grand Forks/East Grand ForksCommunity Spotlight

Page 38: Prairie Business February 2012

38 Prairie Business February 2012

Technology

New mobile devices doing more with little

But if we run the numbers, it doesn’t have enough juice tolight a standard 60W light bulb for five minutes. We’d belucky to run a “green” high-efficiency compact

fluorescent for 20 minutes. That doesn’t really seem like a lot ofpower, but boy can new mobile devices do a lot with so little.

It is easy to blame battery manufacturers for how littleenergy there is to go around. The processing power ofintegrated circuits has increased 10X, many times over, the lastfew years. Conversely, battery technology only gives us smallincremental improvements.

But before we jump to conclusions, consider the following:gunpowder only has about three times the energy density ofthe battery for your smartphone, which you casually hold upto your head. A 10X increase in energy would bring the batteryin your phone to a higher energy density than TNT. Increase itagain by 10X and there is more energy, pound-for-pound, thanjet fuel.

So how do they do it?Our phones need to run at 100 percent to give us the

smooth feel we’re used to when we touch the screen, downloadapps and interact with games. Doing so continually wouldburn through the battery in a similar time as our light bulb.How do we get the performance that we want, with the batterylife we demand?

Consider the Bugatti Veyron – a ridiculous 1,001horsepower super car. As one of the fastest cars on the planet,when driven pedal to the metal it can reach a staggering268MPH. It’s a wonder that it stays on the ground. It’s not a

wonder that it costs over $1 million. At its top speed, it’ssucking in 200 gallons of air a second and will completelyexhaust its 25 gallon fuel tank in 19 minutes.

Like the Veyron, our smart devices have the power tocompletely exhaust their supply in an extremely short periodof time. Unlike the Veyron, our phones work in fits and starts– zipping between extreme high-power states to completelyoff. It does this hundreds of times per second.

Imagine a burst of 268MPH from home to the grocery store– then completely off for a hour– another burst of at 268MPHfrom the grocery store to grandmas – then completely off – andso on. This is what’s happening inside our phones – giving usthe feel of a Ferrari with the battery life of a Fiesta.

So what’s next? Your batteries are not going to be leaps andbounds more powerful. They will certainly not store moreenergy than explosives. Don’t worry about a plateau of features– there will be plenty to fuel your need for more gadgetry.Engineers are working on solving the unique problems ofpowering fancy, new peripherals while continuing to push theenvelope of the power at your fingertips. PB

Remembering the Past...Celebrating the Future

August 2012

218-773-2384 www.egf.mn

The batteryin mysmartphoneis powerfulenough togive me daysof calls, websurfing andendless appindulgence.

Brad Thurow is the director of PowerSageProducts at Packet Digital LLC, a Fargo, N.D.based semiconductor company specializingin power management. He can be reachedat [email protected]

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Leadership/Management

One of the best ways I have found to meet the needs of staff is to beopen and accessible, both as a leader and with the information we useto manage.

This may seem rudimentary, but at a basic human level, we all have a needto be part of something greater than ourselves. We like to have access toinformation, connect with people, and have the tools we need to excelprofessionally. When all employees understand the vision of the firm’sleadership, know the people they work with on a personal level, and are keptinformed regarding the firms’ performance, they tend to be more engaged anddevelop a sense of ownership.

As a firm, having an open door policy encourages interaction among alllevels of leadership and roles. Ideas tend to flow freely, employees feelempowered, and employees enjoy a sense of greater purpose. This, in turn,leads to the development of a culture of entrepreneurialism that can take the

firm to even higher levels of creativity and performance. In addition to having an open door policy that encourages interaction,

employees must have a solid understanding of the business and the toolsleadership uses to manage the firm. Open books, or being transparentregarding metrics and financial performance allows employees to betterunderstand the challenges leadership faces. Staff can ask questions, challengethe status quo, recognize the part they play in the mission and vision of thecompany, and clearly see the results of their actions. It gives them theopportunity to strive for improvement when needed and to celebrate successes.

If you truly want to encourage openness, you must also be willing togather feedback and not just push out information. Feedback can be eye-opening at times, but it also keeps you connected with your employees. Thisopenness yields countless opportunities to strengthen your company bothinternally and externally.

Some might think that providing performance information to all staffseems like a risky business practice. From my perspective, I think it is farmore risky to have a company filled with people that don’t understand thetrue workings of your business. It is much better to have employees that havea sense of pride and ownership because they helped shape the organization.

In our particular field, recognition is given for the bestengineering/architectural firms to work for. Additionally, there is alsorecognition given for top performing firms. It is no coincidence that some ofthe top performing firms are also considered some of the best firms to workfor. For these firms, an open door leadership style and open bookmanagement meet the needs of the employees, opening up a collective worldof new opportunities. PB

opens up opportunitiesIn the Wall Street Journal Guide to Management,Alan Murray states that, “leadership is less aboutyour needs, and more about the needs of thepeople and the organization you are leading.”

&Open Opendoor books

Steve Burian, PE is CEO of AE2S, a civil

engineering firm that has 13 offices located in

North Dakota, Montana, and Minnesota.

Visit www.AE2S.com to learn more.

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40 SD Prairie Business February 2012

IItt’’ss aallll aabboouutt SSoouutthh DDaakkoottaa

SDTBC client services administrator Pam Boehm says the program isdesigned to assist entrepreneurs in developing a new business andadvancing business activities for a recently developed company.

“The National Network for Technology Entrepreneurship andCommercialization (N2TEC) was established to help start-up business,”Boehm says. “We hosted the N2TEC Accelerator program in our buildingfor three years. During that time we realized that the goal to bring start-

ups to South Dakota was a valuable endeavor.When the N2TEC program funding ended, wedecided to continue that program’s mission onour own, using the same local resources thatmade N2TEC possible.”

The SDTBC, located in Sioux Falls, S.D.,is an on-going effort to diversify and grow theregional economy by assisting in creation andexpansion of technology-based business in thearea. The center is an outgrowth of the ForwardSioux Falls Technology Program initiated inApril 1999. Multiple public and privateorganizations partnered to fund construction ofthe SDTBC, reflecting a broad-based supportfor this economic initiative.

Boehm notes that SDTBC hopes toattract start-up companies from South Dakotaand the surrounding area to participate in theAccelerator program. Companies whoseapplications are approved will take part in a 13-week coaching program that will help themexplore their current business activity andpotential for growth and development.

“The first week of the program is an intensive ‘boot camp.’ Beforeboot camp begins, we ask participants to complete some homework,identifying some important information about their business,” Boehmsays. “All the participants come together for discussions that provide anopportunity for them to learn what other start-up companies are doing.The sessions help them think through and rethink their plans andbusiness activity.”

The goal of the first week of the program is to assist participants inrefining their presentation and communication skills to clearly explainwhat their business does and how their audience can benefit from it orhelp the business succeed.

“The boot camp week also gives participants opportunity to meetwith mentors and business advisors, investors and other resources thatwill help them launch a successful business in South Dakota,” Boehmsays. “At the end of that first week, each business will develop their ownset of specific goals and milestones to guide them through the actualstart-up phase of the business.”

Marketing and financial planning skills are two areas in which mostbusiness owners struggle. Boehm notes that the Accelerator programprovides assistance in identifying funding options and developing skillsto turn marketing activities into sales.

“We don’t do the work for them. We do help them find the resourcesthey need to develop a growth plan,” Boehm says. “Because of the workwe do, we have knowledge of many resources in the region thatbusinesses need in order to grow and succeed. We gather data every yearso we can measure the success of clients. We know that more than 300jobs have been created by the businesses we’ve served. The averageannual income of these business owners is $70,000, which is far abovethe average income in South Dakota.”

Boehm expects that start-up business in the region will complete anapplication for the Accelerator program. Attracting new small business tothe state is on ongoing SDTBC goal.

“Small businesses create jobs as they grow and expand,” she says. “Inthe long run, those small businesses create more high paying jobs inSouth Dakota. That’s a growth statistic we want to continue to see.”

More information about SDTBC and the Accelerator program isavailable at www.sdtbc.com or by calling 605-275-8000. SDPBLoretta Sorensen, Owner, Prairie Hearth Publishing, LLC.

[email protected].

Accelerator program

assistsentrepreneurs

Entrepreneurs launching a new business will find a wealth ofresources and mentorship in the South Dakota Technology BusinessCenter’s Accelerator program.

Pam Boehm, client service administrator, South Dakota Technology Business Center

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42 WND Prairie Business February 2012

IItt’’ss aallll aabboouutt WWeesstteerrnn NNoorrtthh DDaakkoottaa

The MRISAR Institute, a center that designs prototypes forself-sustaining, humanitarian and environmental projects,relocated to the New Leipzig school in July 2010.

“The school project is a prototype for an interactive,educational think tank project created to inspire, educate and tohelp solve issues that affect humanity,” explains John Siegel,president and co-founder of the institute. “Our main goal is tocreate something that will help this and future generations.”

Funding for the institute project has been generated by theSiegel’s through MRISAR’s robotic, science & art exhibit divisionwhere they design and fabricate innovative, interactive exhibits thatare featured in world class science centers, museums anduniversities. The project is composed of interrelated venues, eachusing a different section of the Institute.

One of the venues, “The Center of Science, Art, Technology, andNature” includes educational and interactive experiences. There areplans for a “Health & Wisdom Emporium” venue that will operateas an online store where guests can buy medicinal herbs, organicproducts and self-help books. Other venues in the works include anarea for a Small Printing Press that will supply the publishing needsof the museum as well as act as a Community Press for the NewLeipzig area, a Literary Studio, Film Studio, CG & Graphics Studio,Natural Medicine Research & Development Division and aHorticulture R&D Division.

MRISAR is a family business owned and operated by Siegel andhis wife, co-founder and vice president Victoria Croasdell-Siegel,along with their two daughters, Autumn and Aurora. They alsoreceive part time assistance from their son, Michael. The focus ofthe Institute has always been to have it be a family element wherethey can do things together, and they incorporate philanthropicideals in every venue they create.

Much of their work was inspired by their daughter, Autumn,who had a stroke when she was five years old that left her paralyzedon one side and unable to walk or sit up. Medical professionals toldthem there was nothing that could be done for her to get themobility back. Partnering their knowledge of natural healingremedies and prayer, the Siegels worked together to come up with asolution for their daughter, who made a full recovery as a child andis now twenty years old.

One of their better known projects, the STRAC prototype, was

inspired by Autumn’sstory. STRAC, whichstands for SymbioticTerrain Robotic AssistChair, is controlled byfacial feature movements,and was designed andbuilt in six weeks back in1999.

Through the years theMRISAR team hasworked on both domesticand foreign projects forclients ranging frombranches of governments,NASA, universities, film industries, technology centers and royalty.They have received numerous accolades for their research anddevelopment and have gained recognition and publication by suchesteemed organizations such as The United Nations, NASA-Emhart, Stanford, Cambridge, ICORR, ROMAN, IEEE, DiscoverAwards and the International Federation of Robotics. In 2011 theywere the only company in the world awarded an entire chapter inthe publication “World Robotics; Service Robotics Survey, 2011.”

As work on the New Leipzig project is completed, additional jobopportunities will open up for the people of North Dakota. Thecommunity will also benefit from tourism once the project iscompleted as exhibits at the Institute will bring in area schools,people from the community, and an international interest. InJanuary 2012, MRISAR launched the “Mysterious Universe ofMRISAR Fellowship”; a portal for teachers, students andindividuals to actively participate in the Institute project advertisedin NSTA Reports.

“Our hope is to successfully complete the New Leipzig projectto its full potential and to create others over a period of time,” saysSiegel.

Learn more about the MRISAR Institute athttp://www.mrisar.com/mrisar-institutes.htm. WNDPBMandy Anderson is a Bismarck, ND-based freelance writer. She

can be reached at [email protected].

"Challenge The Robot Dual Rail Robot Arm Exhibit". Oneside of the exhibit is autonomous and the other is manuallycontrolled. Museum visitors try to beat the robot in a task.Like our other exhibits and devices the exhibit is made fromraw materials one part at a time. (Photo courtesy of MRISAR)

Adult Sized STRAC Facial Feature ControlledExoskeleton Robotic Wheelchair Prototypewith daughter Autumn Marie Siegel when shewas a child just after her recovery from aparalyzing stroke. The idea was to createdevices for self therapy and for mobility.(Photo courtesy of MRISAR)

MRISAR Institute -

The perfect blend of science and artIn the rural town of New Leipzig, N. D.,lies a new project that is already gaininginternational attention.

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44 Prairie Business February 2012

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46 Prairie Business February 2012

EMPLOYMENT (NOT SEASONALLY ADJUSTED)

UNEMPLOYMENT RATE EMPLOYMENT

Nov. 2011 Nov. 2010 Nov. 2011 Nov. 2010

North Dakota 2.9 % 3.4% 363966 354439Fargo MSA 3.1 3.6 115612 113620 Bismarck MSA 2.8 3.5 59196 58242 Grand Forks MSA 4.1 3.8 52829 52754 Minot MiSA 2.7 3.1 32185 32028 Dickinson MiSA 1.7 2.1 17696 16020Williston MiSA 0.9 1.4 24198 18219 Jamestown MiSA 2.9 3.6 10407 10831 Wahpeton MiSA 3.2 3.8 13418 11769South Dakota 3.9 4.5 431260 423155Sioux Falls MSA 3.8 4.6 125655 122025Rapid City MSA 4.1 4.9 64200 62610Aberdeen MiSA 3.0 3.3 23125 22630Brookings MiSA 3.1 3.6 18875 18660Watertown MiSA 3.4 3.9 18715 18120Spearfish MiSA 4.1 4.2 12765 12865Mitchell MiSA 3.0 3.6 13135 12625Pierre MiSA 2.8 3.1 12285 11960Yankton MiSA 3.6 4.4 11460 11085Huron MiSA 2.9 3.6 9800 9440 Vermillion MiSA 3.1 3.6 7765 7605Minnesota 5.2 6.6 2805335 2780196 Minneapolis-St. Paul MSA 5.1 6.5 1753844 1727594Duluth-Superior MSA 6.1 6.8 136171 136735St. Cloud MSA 5.2 6.0 101654 103712Rochester MSA 4.2 5.4 100904 99203Mankato-N. Mankato MSA 4.0 5.3 57280 55452Brainerd MiSA 7.6 9.7 44229 42322Fairbault-Northfield MiSA 5.4 7.0 31120 31077Winona MiSA 4.6 5.9 28132 26905 Fergus Falls MiSA 5.3 6.4 28879 28663 Red Wing MiSA 4.3 6.3 25124 24185 Willmar MiSA 4.3 5.4 23477 22687Austin MiSA 4.4 5.3 20455 19985 Bemidji MiSA 7.0 7.5 19790 21098 Alexandria MiSA 4.7 5.9 19432 19084Hutchinson MiSA 6.5 7.9 18225 18448Owatonna MiSA 5.0 6.3 20691 20398Albert Lea MiSA 5.6 7.3 15905 15303Marshall MiSA 4.0 4.8 14189 14437New Ulm MiSA 4.6 5.5 14222 14079 Worthington MiSA 3.9 4.5 10788 11153Fairmont MiSA 5.1 6.3 10968 10845MSA — Metropolitan Statistical AreaMiSA — Micropolitan Statistical AreaSources: U.S. Bureau of Labor Statistics, Minnesota Department of Employment and EconomicDevelopment, Job Service North Dakota, South Dakota Department of Labor

CANADIAN EXCHANGE RATE

NORTH DAKOTA OIL ACTIVITY

Sweet Crude ProductionPrice/BBL Oil-BBL/day

OCT. 2011 $81.89 488,100SEPT. 2011 $81.38 463,900AUG. 2011 $80.71 446,100 OCT. 2010 $68.52 342,250

Drilling Producing Rig Permits Wells Count

NOVEMBER AIRLINE BOARDINGS

09/23/10 08/23/11 09/23/11

U.S. to Canadian Dollar- $0.96 or $1.00 $1.02 or $0.97 $1.02 or $0.98

U.S. to Euro $0.75 or $1.32 $0.76 or $1.31 $0.77 or $1.30

U.S. to Chinese Yuan $6.63 or $0,15 $6.38 or $0.16 $6.32 or $0.16

U.S. to Japanese Yen $81.92 or $0.01 $77.88 or $0.01 $77.70 or $0.01

U.S. to Mexican Peso $12.36 or $0.08 $13.93 or $0.07 $13.98 or $0.07

BOARDINGS % CHANGE/2010-2011

NOV % CHANGE NOV % CHANGE 2011 /NOV 2010 2011 /NOV 2010

CANADIAN BORDER CROSSINGS

Source: US Customs and Border Protection

AUTOMOBILES TRUCKS

MINNESOTAGrand Portage 36712 4.00% 1732 - 3.35% Baudette 12450 -14.61 499 -12.91Warroad 9267 18.34 1032 20.42 Roseau 3070 19.27 928 - 41.64NORTH DAKOTAPembina 25000 - 12.46 17328 1.85 Portal 7804 - 0.95 7822 25.59 Neche 4514 12.93 617 - 29.16Dunseith 4293 - 2.72 2358 17.02Walhalla 3770 19.27 928 - 41.64Noonan 2699 4.37 941 83.43

By the Numbers

Source: NDOMB

Minneapolis-St. Paul 1,193,923 0.0Fargo 26,842 - 0.5Sioux Falls 40,001 23.1 Rapid City 18,651 - 5.3 Bismarck 16,745 12.1 Duluth 11,174 - 3.9 Grand Forks 10,334 9.9 Minot 13,694 40.0 Aberdeen 2,478 10.1Pierre 1,400 -23.2 Source: US Customs and Border Protection

OCT. 2011 169 6202 197SEPT. 2011 176 6071 197AUG. 2011 207 5951 192OCT. 2010 232 5300 143

Source: Bank of Canada Data provided by Kingsbury Applied Economics

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