prairie business march 2011
DESCRIPTION
Northern Plains Business resourceTRANSCRIPT
www.prairiebizmag.com
‘Low stress’ in Aberdeen pg. 28
Hebron Brick Company –Bricks across America pg. 16
www.prairiebizmag.com
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PRAIRIEBUSINESSMAGAZINEPOBOX6008GRANDFORKS,ND58206-6008
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HIGHEREDUCATIONHigher Ed and businesses working together pg 28
MARKETINGWhat’s Next (in Technology?) pg 34
TECHNOLOGYFinding a Company thatBest Fits your Needs pg 26
LEADERSHIPCreating and Sustaining
Change pg 16
MONEYWhat is the Velocityof Money pg 59
pg 48
SALES/MARKETING5 Rules for Branding
in the Digital Age pg 22
ECONOMIC DEVELOPMENTThe Value of Higher-Wage Jobsin the Local Economy pg 24
March 2011
BUSINESS LAWIntellectual Property pg 38
Community Spotlight:Young West Fargo community
growing quicklypg 42
Company Spotlight:TEAM Industries
pg 18
4 Prairie Business March 2011
Volume 12 No. 3CONTENTS
18
28
3438
42
6 From the Editor’s Desk
8 Women in Business
8 Matthew Mohr
10 Prairie News
14 Prairie People
16 Leadership and ManagementCreating and Sustaining Change
Company Spotlight: TEAM IndustriesTag line is driving innovation - Innovation has kept TEAM
Industries alive when others have folded after the nation’s
recession ended.
20 Question/AnswerStimulating the economy to keep students at home
22 Sales/Marketing5 Rules for Branding in the Digital Age
24 Economic DevelopmentThe Value of Higher-Wage Jobs in the Local Economy
26 TechnologyFinding a Company that Best Fits your Needs
Cover Story: Higher EducationHigher Ed and businesses working together – Higher Ed
institutions are building relationships with different
businesses to both improve programs and also provide
workforce needs for the businesses in this relationship.
Cover Story: MarketingWhat’s Next (in Technology?) – Marketing groups have to
even be more creative in helping businesses handle a hefty
appetite for information.
Cover Story: Business LawIntellectual Property: Identifying Business is
important decision
40 Dakota RisingAssisting rural entrepreneurs
Community Spotlight: West Fargo, NDYoung West Fargo community growing quickly
56 Investing in Trade to the North
58 Viewpoint
59 MoneyWhat is the Velocity of Money and How Does it Impact
Home Loan Rates?
62 By the Numbers
Companies serious about (coal)reclamationTraveling throughout North Dakota, many would never
know that certain areas were once coal mining operations.
And that is just what state officials are hoping coal
reclamation is able to accomplish.
More oil could mean less outmigrationMore oil being pumped out of the Bakken could mean that
the state could see the population growth reversing the 70-
year trend of outmigration.
Next MonthIn April, Prairie Business magazine will showcase Women in Business, as well as discuss
how manufacturing is making a comeback and point out why LEED design might be costly
up front, but might be worth the cost down the road.
On the airJoin Prairie Business magazine Editor Alan Van Ormer and host Merrill Piepkorn on
Tuesday,March 8 at 3 p.m. on any Prairie Public radio station to hear more about theMarch
cover story. To listen to Prairie Public, visit www.prairiepublic.org/radio/hear-it-now.
48
52
RECRUITMENT!RETENTION ~RESULTSDIV I S ION OF VOCAT IONAL REHABI L I TAT ION
Recruitment & Retention ADA Resources Assistive Technology Rural Services
DISABILITY
for more information visit
nd.gov/dhs/dvr/or call us at
1(800)755-2745a partner
in
reliability.
In times of low unemployment, business cannot afford to lose keypersonnel. Should a highly-skilled, productive employee incur a disability,business owners and employers need to know that they have resources attheir disposal to help keep that person on the job. What DVR can bring to
the table for business can have a positive impact on the bottom line.Our featured services are not just employment driven, they cam
help business access a growing market segment.
~ Harley D. Engelman, DVR Business Relations/Marketing Director
6 Prairie Business March 2011
Mike Jacobs, PublisherAlan Van Ormer, EditorScott Deutsch, Sales ManagerTina Chisholm, Production ManagerBeth Bohlman, Circulation ManagerKris Wolff, Layout Design, Ad Design
SSAALLEESS MMAANNAAGGEERR//NNAATTIIOONNAALL AACCCCOOUUNNTT SSAALLEESS::Scott Deutsch 701.232.8893
Grand Forks/Fargo/Moorhead/northwestern MN
SSAALLEESS::Brad Boyd 800.641.0683
Bismarck-Mandan/ west central ND/north central SD
John Fetsch 701.232.8893Fargo/Moorhead/eastern ND/western MN
Jeff Hanson 605.271.4446Sioux Falls/southern SD/southern MN
EEDDIITTOORR::Alan Van Ormer 701.232.8893
[email protected] AAddvviissoorrss::Dwaine Chapel, Executive Director, Lake Area Improvement Corporation;Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson,Communications Coordinator, Greater Fargo Moorhead EDC; Dave Haan,Director of Public Relations and Digital Development at Lawrence &Schiller; Dusty Johnson, Chief of Staff for South Dakota Gov. DennisDaugaard’s office; Brekka Kramer, General Manager of Odney; MatthewMohr, 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 8083rd Ave. S., Ste. 400, Fargo, ND 58103. Qualifying subscriptionsare available free of charge. Back issue quantities are limited andsubject to availability ($2/copy prepaid). The opinions of writersfeatured in Prairie Business are their own. Unsolicited manuscripts,photographs, artwork are encouraged but will not be returnedwithout 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 [email protected]
Online: www.prairiebizmag.com
Clarification: The photo on page 32 of the Februaryissue is a facility near the Tesoro Corp. oil refinery, however, itis actually a power plant located just north of the refinery.
An SBA Award Winning Publication
For daily business newsvisit prairiebizmag.com
What was even more prevalent was the enthusiasm that thesebusiness leaders show when talking about their company orbusiness.
I know that everything isn’t peaches and cream and there arebusinesses and people that are just getting by from pay check to paycheck. But I do believe that if these people had a chance to just sit downand talk to the people that are enthusiastic about their job and business,it will brighten their outlook just a little bit. And that is a good thing.And hopefully that is what will happen when you read the cover
stories in this issue about higher education and marketing. There isexcitement in the relationships that these groups have with each other;be it our higher learning institutions and the businesses theycollaborate with or marketing and advertising agencies and thecompanies they do their best to get the word out about. I think, moreimportantly, both groups enjoy the challenge of developing cutting edgeprograms that benefit our region.These people just do not quit!And that is what is going to keep Minnesota, North Dakota, and
South Dakota moving forward into the future. That is also why we didnot feel the pain of the recession as much as most of the remainder ofthe country did. People in this region do what they do best – keepplugging away trying to make things better for the next crew that takesup the torch!
As I was sitting at my computer the other day thinking about what Iwanted to say at a Fargo Rotary Club meeting in February, the firstthing that came to my mind was many of the success stories that Ihave heard about in my travels around the region. And that wasevident once more during our monthly radio program with PrairiePublic entitled ‘Hear It Now.’
From the editor’s desk
Abundantenthusiasm!
8 Prairie Business March 2011
If Nancy J. Libersky didn’t have the patience and goodlistening skills, her job as the Minnesota DistrictDirector for the U. S. Small Business Administration
would be just that much tougher.“On a normal day, I receive important information
from many different directions whether in person,telephone or email, and while trying to retain thisinformation it is important to learn to categorize,” shesays. “Otherwise, you would be completely overwhelmedand not be able to put one foot in front of the other.”Libersky has been the Minnesota District Director for
almost one year. She has worked with the United StatesSmall Business Administration for 21 years. She started inColorado, but for the past 17 years has been workingpredominately with the international trade programs asRegional Manager for International Trade Programs inMinneapolis, MN.The SBA provides loans, loan guarantees, contract,
counseling sessions, and other forms of assistance to smallbusinesses through its four programmatic functions:
access to capital, entrepreneurial development,government contracting, and advocacy.Because she enjoys management, Libersky feels her
current job is a perfect fit. “I have worked hard to obtainmanagement skills and learn from the best,” she says. “Ifeel very fortunate that I have been able to work withsome highly skilled managers who have taught me how tomanage.”The major challenge is fulfilling requirements with a
smaller staff. “As our office becomes smaller and smaller, itis very hard to cover our outreach, training, organization,and networking,” she states.One of her enjoyments as the Minnesota District
Director is working with a struggling small business ownerwho is ready to quit and to be able to share her expertiseand see the business grow. “People put their heart, soul,and money into their efforts, but need that little extraadvise and knowledge to get them through,” sheexplains. PBAlan Van Ormer - [email protected]
Patience, listening skills key to success NANCY LIBERSKY
Minnesota District DirectorU. S. Small Business Administration
Once a business closes its books for the year,management has the opportunity to look at thetrends in their financial statistics. Reviewing year
end financial ratios over a 10 year span gives a picture ofwhere the business is performing and what areas deservemore attention. Ratios which give a good picture ofperformance include yearly sales changes, average grossprofit margin, inventory turnover, accounts receivable daysoutstanding, yearly expenses compared to sales, net profitas a percent of sales, sales, and profit per employee.Looking over each of these statistics should give
business owners a good idea of their true performance andsuccess. If comparable national or regional numbers areavailable, use them to help guide business decisions.When evaluating businesses, a close look at the ratios
will provide a solid understanding of what has happenedrecently. Two very key ratios are accounts receivable daysoutstanding and average inventory. If a business shows abig jump in accounts receivable, it could signal the businesshas taken on much higher risk or poor pay customers,which will eventually be costly. Should inventory jump up,
it often indicates the business is holding on to a lot ofunwanted/unusable product.Perhaps your sales have declined the last few years.
Should this be the case, your average gross profit should beinspected. If you purposely left low profit margin businessand your margin is up, you’ve succeeded. If you haven’tchanged your approach, lost sales but gained margin, it’spossible you have priced yourself out of the market or havea competitive threat you have missed. Each ratio tells astory similar to sales and gross profit change. Knowingyour numbers, especially trends over time, is extremelyhelpful to a business owner. PB
MATTHEW D. MOHRCEO,
Dacotah Paper [email protected].
Women in Business
Business Advice
Watch your trends
10 Prairie Business March 2011
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
NORTHERN TIER NETWORK LINKS STUDENTSTO GLOBAL RESEARCHParticipation in the Northern Tier Network is
connecting North Dakota researchers with scientific workapplicable here in North Dakota and around the world,according to a recent report.High-performance computing provides scientific tools
and enables new types of collaborations not possible justa few years ago. Examples include: four-dimensionalmodeling simulation to better understand tornadoformation using supercomputers located several statesaway, real-time sharing of electron-microscope work withscientists thousands of miles away, and rapid transfer ofvery large data that would take 10 days at the internetspeed available for home use compared to the NorthernTier times of 1 ½ hours.
SOUTH DAKOTA PUBLISHES STATE’S FIRSTPOLICY GOVERNING SOCIAL MEDIAThe State of South Dakota has created and published
South Dakota state government’s first Social Media Policy.South Dakota’s Secretary of State Office is adding
Facebook, Twitter, and You-tube and other social mediatools as part of a comprehensive effort to enhance votereducation and to inform people of the mission of theSecretary of State.
CONSORTIUM ADDS MINNESOTA-CROOKSTONThe New Century Learning Consortium (NCLC),
founded at the University of Illinois Springfield, hasadded the University of Minnesota Crookston as its 10thmember. The Consortium is designed to assist universitiesin implementing high quality, large-scale online andblended learning programs.The Consortium plans to expand to 14 institutions by
May 2011. Activities include developing a clearinghouse ofonline classes where there are excess capacity, sharedresearch projects, shared IT expertise to support buildinginfrastructure capacity, and peer support at the upperadministration, dean, and faculty member levels.
SANFORD HEALTH RECEIVES GRANT FORMAMMOGRAPHY SERVICESPatients of Sanford Health will benefit from new, state-
of-the-art mammography equipment, which is possiblethrough a grant from The Leona M. and Harry B.Helmsley Charitable Trust. The Leona M. and Harry B.Helmsley Charitable Trust have awarded Sanford Health$2,060,151 to upgrade its mammography services.The grant will be used to purchase state-of-the-art digital
mammography units, replace radiologist workstations, andupgrade the mammography room and patient waiting area.
‘PATHWAYS TO BUSINESS GROWTH’LAUNCHESEnterprise Minnesota is launching ‘Pathways to
Business Growth,’ a program to help Minnesota-basedmanufacturers develop and implement innovativestrategies that lead to growth.The program is one of 22 projects nationwide to
receive funding from a $9.1 million program through theNational Institute of Standards and Technology andManufacturing Extension Partnership. EnterpriseMinnesota received a $515,000 grant award to help makeMinnesota a leader in manufacturing.‘Pathways to Business Growth’ will help 25 Minnesota
manufacturing companies implement a series ofintegrated solutions that ignite innovation and growth.Enterprise Minnesota will work with 10 companies inyear one, 10 companies in year two, and five companies inyear three. The project goal is to deliver a 20 to 1 returnon investment for participating companies.
MATERIALS HANDLING MAGAZINES RANKSIOUX FALLS BEST FOR NEW FACILITYRecent articles in three national magazines dedicated
to shipping, warehousing, and materials handlingillustrate the clear superiority of a location in Sioux Fallsfor that industry.Using the data collected by the Boyd Company of
Princeton, NJ, Modern Materials Handling, LogisticsManagement and American Shipper have all comparedthe costs associated with a warehousing and distributingcenter in Sioux Falls with a similar facility in fiftylocations in a wide variety of regions.The study’s three highest cost locations are San
Jose/Sunnyvale, CA, Orange County, CA, and Toronto withtotal operating costs averaging $12.6 million per year. Thelowest cost warehouse site is Sioux Falls, with total operatingcosts averaging some $7.6 million per year. The warehouseoperating costs are scaled to a hypothetical 175,000 squarefoot facility employing 75 non-exempt workers andshipping over-the-road to a national U.S. market.
COOPERATIVE RECEIVES USDA LOANNorthern Plains Electric Cooperative, based in
Carrington and Cando, will use a $740,000 United StatesDepartment of Agriculture loan to help Edgeley-basedAllied Agronomy construct a 30,000 square footwarehouse for its agricultural products. The warehousewill be located near Jamestown and the project is expectedto retain an estimated 48 jobs and create six new jobs. Under the conditions of the “revolving loan,” USDA
provides the funding at zero-interest. Northern Plains, inturn, will pass the funding through to Allied Agronomy.Northern Plains Electric Cooperative is the largest of
the distribution electric cooperatives in North Dakota.Serving approximately 10,935 members from south ofJamestown to the Canadian border, the cooperativeworks to provide members with electricity and toimprove the quality of rural life. Northern Plainsdistributes electricity supplied by Basin Electric PowerCooperative and the Western Area Power Administration.
Preliminaryestimates
indicate NorthDakota
employmentexpanded on ayear-over-year
basis inDecember.Employersreported anestimated
6,400more jobs whencompared to
December 2009,
�a
1.7%gain.
Source: Job Service North Dakota
SouthDakota
public universitiesgenerate
approximately
$1.97 billiona year in long-runannual economicimpact to SouthDakota from a
state investment of
$176 millionSource: South Dakota Board of
Regents Economic Impact Report.
www.trinityhealth.org
You’re so busy taking care of others,sometimes there’s no time left to take care of yourself.
At Trinity Health, we’re assembling a bigger and betterteam especially for you. More physicians and specialists in
Women’s Health - more answers and easier access to care for you.We understand how difficult and confusing
maintaining good health can be, so let us helpyou manage it every step of the way.
Call (701) 857-5000 for more informationabout our growing team, or to reach an appointment line.
Center Back: Tim Bedell, MD; Heather Bedell, MD
Center Front: Margaret Nordell, MD;
Carol Schaffner, MD
Left: Shawn Brooking, CNM;
Ellen Lorange, DO;
David Billings, MD
Right: Wendy Flansburg, CNM
Gloria Berg, CNM; James Bozeman, DO;
Lori Dockter, PA-C
www.trinityhealth.org
You’re so busy taking care of others,sometimes there’s no time left to take care of yourself.
At Trinity Health, we’re assembling a bigger and betterteam especially for you. More physicians and specialists in
Women’s Health - more answers and easier access to care for you.We understand how difficult and confusing
maintaining good health can be, so let us helpyou manage it every step of the way.
Call (701) 857-5000 for more informationabout our growing team, or to reach an appointment line.
Center Back: Tim Bedell, MD; Heather Bedell, MD
Center Front: Margaret Nordell, MD;
Carol Schaffner, MD
Left: Shawn Brooking, CNM;
Ellen Lorange, DO;
David Billings, MD
Right: Wendy Flansburg, CNM
Gloria Berg, CNM; James Bozeman, DO;
Lori Dockter, PA-C
12 Prairie Business March 2011
RAPID CITY HOSPITAL RECEIVESACHIEVEMENT AWARDRapid City Regional Hospital has received the Get
With the Guidelines® Heart Failure Gold PlusPerformance Achievement Award from the AmericanHeart Association. The award recognizes the health careproviders for their excellence in the treatment of patientswith heart failure.The award is given only to hospitals achieving 85
percent or higher adherence to all indicators for two ormore consecutive 12-month intervals and achieving 75percent or higher compliance with four of nine qualitymeasures to improve quality of patient care andoutcomes.
SILICON PLAINS RECOGNIZED FORQUALITY SERVICESilicon Plains, LLC, a regionally-based company
specializing in business computing and softwaredevelopment, has been recognized for its commitment toquality service and professionalism by the leading tradeassociation for the world’s information technology (IT)industry.The Computing Technology Industry Association
(CompTIA) has designated Silicon Plains, LLC as aCompTIA A+ Authorized Service Center™. TheCompTIA Authorized Service Center™ programrecognizes computer, network, server, printer anddocument imaging support businesses that employcertified technicians. These certifications are recognizedaround the world and throughout the IT industry as thefoundation-level skills standards for technologyprofessionals.
$3 MILLION TO UPGRADE BUSING SERVICEFederal grants totaling more than $3 million have
been awarded to Fargo, ND, and Bismarck, ND, toupgrade local bus service.Bismarck will receive a $2 million grant from the
Department of Transportation to upgrade the busterminal in the community, as well as makeimprovements on the bus fleet. Fargo Parks District isexpected to get $1 million to upgrade the bus fleet thatservices local senior citizens.
SOUTH DAKOTA CONTRACTOR WINSSTATE AWARDUpper Plains Contracting, Inc., of Aberdeen, SD,
received the Build South Dakota Award (Category III) bythe Associated General Contractors of South Dakota,Highway-Heavy-Utilities Chapter.The award is given to the best highway-heavy-utility
construction project in the state over $2 million. Theaward recognizes state-of-the-art advancement,excellence in project management and client services,innovation in construction techniques or materials,community relations, and sensitivity to the environment.Upper Plains Contracting received the award for a
Highway 85 project in Butte County resulting in thereplacement of an antiquated span of highway.
YOUNG PROFESSIONALS RECOGNIZESUNDOG AS BEST PLACE TO WORKThe North Dakota Young Professionals has chosen
Sundog in Fargo as the 2010 Best Place to Work.About half of Sundog’s staff is comprised of young
professionals. The company has developed severalprograms that help team members share industryexpertise, exchange ideas, and inspire creativity.The Best Place to Work Awards, started in 2008, are a
reflection of the creativity and innovation thatbusinesses offer Young Professionals.
Press releases and photos about business news and events in North Dakota, South Dakota and westernMinnesota can be e-mailed to [email protected] for considerationPrairie News
HOUSTON ENGINEERING RECOGNIZEDHouston Engineering, Inc. has been recognized by the
American Council of Engineering Companies ofMinnesota with an Engineering Excellence Grant awardfor its role in providing the City of Browns Valley with asolution to the flooding problem that has plagued thecommunity for several years.The Engineering Excellence Awards program
recognizes innovative engineering projects in Minnesotathat are beneficial to both the community and theengineering profession.Houston Engineering was recognized because it
provided innovate applications to create a protectionplan for a 100-year flood in Browns Valley.
From 2008 to 2018, the total number of workers in SouthDakota is projected to increase by 41,365 to a total of510,000 workers. Source: South Dakota Department of Labor.
In North Dakota, thefollowing occupationsare expected to havevery high job growthin the next 10 years:
truck drivers
nursing aides
construction laborers
licensed practical andlicensed vocational
nurse
tellers
landscaping andgrounds keeping
workers Source: Job Service North Dakota
MAHAR PROMOTED ATCORELINKScott Mahar has been promoted to
assistant vice president of ProgramManagement at CoreLink AdministrativeSolutions in Fargo, ND. He is responsiblefor CoreLink’s Program Management Officeand Service Management.Mahar joined CoreLink in April 2010 as
manager of the CoreLink ProgramManagement Office.
BLADOW BECOMESPROFESSIONAL ENGINEERGabe Bladow has become a registered
professional engineer in North Dakota. Heis a 2006 graduate of North Dakota StateUniversity with a Bachelor of Sciencedegree in Civil Engineering. He had fiveyears of experience before joining HoustonEngineering, Inc.’s Fargo office in 2009.The registration requires four years of
progressive experience in the engineeringfield, and passing an eight-hour examrelating to the principles and practices ofengineering.
KK BOLD EMPLOYEE CHANGESStephanie Schoenrock has been
promoted to the new position of AccountServices Director. In addition, Ashlee Linkhas joined the company as a new accountexecutive and Jennifer Nelson has beenadded to the web development and graphicdesign team.Schoenrock had served as Director of
Regional Operations and an accountmanager. Link recently served as the PublicSafety Information Coordinator for theNorth Dakota Department ofTransportation. Nelson previously workedfor Tao Interactive.
PUC CHAIR NAMED TOLEADERSHIP COMMITTEESouth Dakota Public Utilities
Commission Chair Steve Kolbeck has beenappointed as a Co-Vice Chair of theNational Association of RegulatoryCommissioners Committee onTelecommunications.The Committee on Telecommunications
provides a venue for state commissioners toanalyze trends in the telecommunicationssector and share best regulatory practices.
PRENDERGAST JOINS CLICK RAINChris Prendergast has joined Click Rain,
Inc. as an online marketing strategist. Hegraduated from Purdue University and isGoogle Analytics certified. He will manageanalytics, email, search and social marketingprojects for various clients.
PIETILA ELECTED CHIEF OF STAFFMichael Pietila, MD, Yankton Medical
Clinic, P.C., has been elected the 2011 Chiefof Staff for the Avera Sacred Heart HospitalMedical Staff.Dr. Pietila takes over for Dr. Charles
Cammock, Yankton Anesthesiology, whoserved as the 2009 and 2010 Chief of Staff.Dr. Pietila, board-certified in
pulmonology, internal medicine and criticalcare, is a graduate of the USD School ofMedicine and completed his residency atMayo School of Graduate MedicalEducation. He has practiced in Yanktonsince 2006.The Chief of Staff leads the medical staff
organization consisting of 63active/associate physicians and 58courtesy/consulting physicians. Dr. Pietilaalso serves as an ex-officio member on theAvera Sacred Heart Board of Directors.
14 Prairie Business March 2011
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.
SCOTT MAHAR
GABE BLADOW
STEPHANIESCHOENROCK
STEVEKOLBECK
CHRIS PRENDERGAST
MICHAEL PIETILA, MD
Prairie People
JENNIFER NELSONASHLEE LINK
16 Prairie Business March 2011
Leadership/Management
Creating and sustaining change
Effective, positive change hinges on three elements:Do your employees trust the company’s leaders? Isthere a culture of two-way communication and
organizational alignment where decisions are made at thelowest practical level? Can you identify and deploy “change agents” at all
levels and departments? Change agents tend to be proudof the company, are overachievers and possess goodleadership and followership skills. Change agents make itpossible to “tell the change story” more effectively at alllevels of the organization.Are there metrics in place? Change oriented goals need
to be documented, measurable and mutually agreed uponat all levels. Positive outcomes – even small “wins” –should be communicated and celebrated. Many leaders believe they can drive change through
sheer will. While effective change does start from the top,smart leaders leverage their best, brightest, and mostmotivated employees. These “A” players will drive positive
change throughout the organization. Once goals are met,managers and employees become confident in theirabilities to anticipate, react, and manage change. This isthe real payoff from implementing sustainable change inthe organization: evolving from an environment of tacticalchange to a culture of continuous improvement.In a continuous improvement culture, cross functional
teams identify areas of improvement and utilize provenprocesses to fix them. Small improvements become lay-upsand while larger initiatives will take longer and requiremore resources, they don’t disrupt day-to-day activities. Creating and sustaining change can be accomplished in
the right environment and by reinforcing these elements:• Leveraging trust and two-way communication• Deploying multi-level, cross-functional change agents• Metrics must be developed and documented• Positive change can truly invigorate an organization.
Managing the process properly can result in significantfinancial and cultural gains.
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JOHN SWEDEENPresident, StarMarkCabinetry (Sioux Falls,SD), a division of NorcraftCompanies LP (Eagan, MN)
Strong organizations continually evolve. Change is unavoidable.
PB
18 Prairie Business March 2011
We suffered through the recession like everybody,”explains Tony Passanante, Senior Director,Marketing and Strategic Planning for TEAM
Industries. “In 2008 we had to lay off 400 people, but cameback like gang busters and 2010 was one of the best yearsever.”Passanante adds that the key to business in today’s
world is innovation and that is what helped TEAMIndustries after the recession. “With all the foreigncompetition, we have to be ahead of the game with respectto our customers and what our customers’ customerswant,” he states. “We try to anticipate what our marketswant. We are trying to create demand on things that we seeare needed.”TEAM Industries is a design and manufacturing
company that designs the driveline systems for small oralternative vehicles like ATV, electric vehicles, and golfcarts. There are almost 1,000 employees located in thefollowing Minnesota cities: Cambridge, Audubon, Bagley,Park Rapids, Detroit Lakes, as well as Andrews, NC.Working with several OEMs, the company has
contributed innovation solutions for power-train, engine,suspension, and other components. The technology
includes design engineering, research and development,rapid prototyping, testing, manufacturing, and assembly.Services include ductile iron machining, shaft machining,high pressure aluminum die-casting, right angle andparallel axis gear/spline manufacturing, high speedaluminum machining and full assembly of completedriveline systems.At almost 1,000 employees, Passanante believes thecompany drives economic development for the smallercommunities their companies are located in. “In this
part of the region we make an impact,” he says. “Thevision of our founder, Donald Ricke, was to grow good,technical paying jobs in northern Minnesota.”Marketing Manager Jason Rasmussen says the company
tries to stay on the cutting edge of the market. “We have been with some of the customers for years,”
he explains. “The sales cycle takes time. We our building abetter reputation for our brand every year.“In some aspects we are still new to the game,” he adds.
“We are still building that brand awareness and coming upwith more innovative and better products. Customers areseeing that we are innovative leaders.”Passanante adds that the company needs to pursue the
TEAM Industries
Tag line is driving innovationInnovation has kept TEAM Industries alive when others have folded after the nation’s recession ended.
Company Spotlight
Ted Coder, production operator at the TEAM Industries facility in Audubon, MN, works on the first gear counter shaft in a Harley Davidson motorcycle transmission system.TEAM Industries provides innovative solutions for power-train, engine, suspension, and other components. (Photo by Alan Van Ormer)
“
prairiebizmag.com 19
export trend and sell globally. Heading into 2011, healso has seen what he calls a nice pick up. “There hasbeen steady, sustained growth for the last 14 months.There is confidence coming back,” he explains. “A
certain amount of our competition got knocked out.Those left standing have to pick up the slack.”Another concern is that competition in China is
stronger. On the contract manufacturing side, theAsian country has started to take a chunk of TEAMIndustries business, Passanante says. “We have to dealwith that,” he continues. “For our designed productswe are buying some components out of China thatwe’re using for our product. When we compete withthem we know we’re not going to beat them on lowprice. Our advantage is going to be innovation andservice and building more complex materials andgetting good customer service.”Now, the company is growing its intellectual
property portfolio. To date, they have developed adozen patents on drive trains. “We offer new productsthat they can’t get elsewhere,” Passanante explains. “Alot of OEMs we deal with come to us and say we havethe plan for this vehicle and we want you guys tofigure out how to package your product and developthe driveline system to do that. Opportunities in thefuture include participating in the electrification of the
transportation industry; in particular, electric cars.Right now TEAM Industries are marketing EV axleline by redesigning and beefing them up for smallelectric vehicles.
“We have innovative driveline technologies,”Passanante says. “Long term, we are going to bedeveloping a brand new technology to improve rangeand improve hill climbing in electric cars.”Most importantly, TEAM Industries is working to
stay ahead of the game. “We realize that to beat thecompetition we need to know our markets and ourcustomers markets better,” Passanante concludes. PBAlan Van Ormer - [email protected]
Started as Motek Engineeringand Manufacturing inCambridge, MN
TEAM Industries has more than850,000 square feet ofmanufacturing space within 6different locations.
Headquarters is located inBagley, MN
TEAM Industries has partneredas solution providers to JohnDeere, Ford, Dana, Eaton,CNH, Polaris, Ingersoll-Rand,Textron, Honda, Kawasaki,and Yamaha.
“We realize that to beat the competition we need to know our markets and our customers marketsbetter,” says Tony Passanante, Senior Director, Marketing and Strategic Planning for TEAM Industries.
TEAM Industries Facts:
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WE MEAN BUSINESS,
Jeff HansonAccount ManagerSioux Fallssouthern SD/southern MN605.271-4446 p [email protected]
Scott DeutschSales ManagerGrand Forks/Fargo/Moorheadnorthwestern MN701.232.8893 p 701.280.9092 f [email protected]
John FetschAccount ManagerFargo/Moorheadeastern ND/western MN701.232.8893 p 701.280.9092 f [email protected]
Brad BoydAccount ManagerBismarck-Mandan west central ND/north central SD800.641.0683 p 701.751.3773 f [email protected]
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HEALTH CARE
Streamlining
efficiencie
s with EHRs pg. 30
January 2011
Telecommuting
, initiatives
growing Fergus F
alls pg. 34
BUSINESS ADVISE
10 Business tip
s pg. 16
TOURISM
Regional Im
pact pg. 48
Information
Security
is a real issu
e pg. 18
pg. 40
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‘Low stress
’ in Aberde
en pg. 28Hebron Brick
Company
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Bricks acro
ss America
pg. 16
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February 2011
TECHNOLOGY Harnessing t
he power p
g. 43
pg. 32
FINANCIAL
SERVICES pg. 20
BIOTECH pg. 24
AGRICULTURE pg. 22
‘Low stress
’ in Aberde
en pg. 28Hebron Brick
Company
Bricks acro
ss America
pg. 16
MONEY
Bonus
depreciatio
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pg. 40
LEADERSHIP
An attitude
pg. 11
SALES/MARKETING
Social media t
ips pg. 41
ECONOMIC DEVELOPMENT
Primary sector r
epresents
economic bas
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20 Prairie Business March 2011
Doug Gardner is the Campus President forRasmussen College, overseeing the leadership andoperations of three of the 21 Rasmussen College
campuses in Bismarck, Fargo-Moorhead, and Mankato. Rasmussen College provides an educational
opportunity that speaks to real-world needs through highquality academic and student service offerings.“We prepare students to apply practical skills in their
field within the community,” Rasmussen explains. “Wedeliver and assess these outcomes using rigorous standardsand the latest innovations in technology.”Rasmussen College was founded 110 years ago in St.
Paul, MN and has 21 campuses across the Midwest andFlorida. The college offers market-relevant Bachelor’s and
Associate’s degrees in thefollowing: School of AlliedHealth, School ofTechnology and Design,School of Education,School of Business, Schoolof Justice Studies, and theSchool of Nursing.Gardner took time to address educational issues and
how the college helps deal with those educational issues.
What are 3-5 issues in education inMinnesota/North Dakota that concern you?North Dakota and Minnesota college graduates
historically leave the state. Our goal as a contributor to ourcommunities is to help them build and stimulate theireconomies. We work to identify the most promisingcareers in our communities and prepare students to besuccessful contributors to the development and growth ofthose economies. It is great news that there are an increasing number of
technology companies relocating to North Dakota andMinnesota, which has created a demand for more qualifiedemployees. As a private college, Rasmussen College is ableto quickly respond to market needs, such as these, and ourSchool of Technology and Design is working hard to keepup with the demand and create successful employees to fillthese positions. In addition to rising needs for technology
professionals, the healthcare profession is increasing itsdemand. From the aging population of Baby Boomers tohealthcare reform, there is going to be a pressing demandfor these professionals. Both the Rasmussen CollegeSchool of Nursing and the School of Allied Health areresponding to these growing demands.
How are you dealing with concerns ineducation?-Rasmussen College produces college graduates who
are more likely to be permanent residents of theircommunities.-Rasmussen College engages with community employers
to proactively offer programs to fit the needs of all industries,including technology. In North Dakota specially, we offer anAssociate’s degrees in Information Systems Management andMultimedia Technologies to meet these demands. -Rasmussen College offers a Bachelor of Science degree
Stimulating the economyto keep students at home
Q & A: Gardner
THE GARDNER FILEName: Doug Gardner
Title: Campus President
Company: Rasmussen
College
Age: 54
Hometown: Mason City, IA
Years with the College: 20
The Campus President at Rasmussen College in Mankato, MN, believes that theschool will continue to grow as a premier provider of higher education by servingthe diverse needs of communities in Minnesota and North Dakota, as well asstudents and employers nationwide.
in Healthcare Management, and has recentlyadded an online “RN to BSN” option (forour Minnesota residents), to our alreadyestablished offerings in Allied Health, such asHealth Information Technician, MedicalOffice Assisting, Medical LaboratoryTechnician, Surgical Technologist.
What are 3-5 things people need toknow about Rasmussen College?-Rasmussen College…Is regionally
accredited by the Higher LearningCommission, which is the same organizationthat accredits universities such as NorthDakota State and the University ofMinnesota. -Offers unparalleled support to its
students including our 24/7 Edvantagesupport system, no cost online and on-campus tutoring, and onsite learning centers.-Is an innovator and a leader in online
education. For more than a decade, RasmussenCollege has been offering online learning in aninteractive, market-leading platform.-Provides career placement assistance. In
fact, more than 90% of Rasmussen Collegegraduates reported that they are working in acareer as a result of their degree or arecontinuing their education.-Offers employer-driven curriculum
through programmatic advisory boards. Wedesign our curriculum based on what the topemployers in our communities are telling us.
Where do you see Rasmussen in5-10 years?Still doing what we do best, providing a
quality education, working with students tohelp them obtain the careers they desire,listening and responding to our communitiesand most importantly changing lives in apositive way just as we have done for the past110 years.
Where do you see Minnesotaeducation going in the future?I foresee that higher education in
Minnesota, and across the country, is goingto be more value-driven. President Obamahas called for more Americans to go tocollege, and these students, many of who areconsidered non-traditional, are going todemand value for their education when theymake these investments of time and money. Ibelieve we will see fewer people electing to goto college for a social or coming-of-ageexperience, and more people who recognizethe career value in a college degree. Thesestudents will expect schools to providemarket-relevant curriculum and services thatprepare them to be the leaders of tomorrow.They will expect more from their educationsthan just lectures and tests; they will expect areturn on their investments. PB
The economy seems to be getting back
on track. Let’s take those positive
signs and build on them. Seize new
opportunities. Cover new ground.
Let’s take action. Your business. Our bank.
Let’s turn positive signsinto positive results.
Call 1-800-908-BANK or visit Bremer.com.
Member FDIC. ©2011 Bremer Financial Corporation. All rights reserved.
prairiebizmag.com 21
Sales/Marketing
Five rules for branding in the digital age.
The digital age has given people a greater voice andmore influence in the client-consumer relationship.This unprecedented level of consumer
empowerment has forced companies to listen, learn andadapt to a new reality.
The reality is this: There are thousands ofonline communities with millions of people(Facebook, LinkedIn, Twitter, YouTube, blogs,chat rooms, etc.) sharing their thoughts, opinionsand experiences on a daily basis. The only wayyour brand will survive in this socially connectedenvironment is to follow a new set of rules.
Be transparent: You can’t hide behind youradvertising any more. You mustinvite more social interaction andcommunicate your intentionsopenly and honestly.
Be authentic: You need to behave more like a realperson and less like a facelesscorporation. Make an effort toengage in more real-time dialoguewith your customers.
Be relevant:If you’re not providing somethingof interest that will benefit theconsumer, you’re not making aconnection or building arelationship. Create content thatadds value.
Be consistent:Once you start, you can’t stop. Your digital presence is a livingentity that requires constant careand attention. You should bemonitoring, responding andgenerating content on a regular basis.
Be patient:It’s not about reaching 1,000,000people in order to sell to 100. It’sabout reaching one person whoreaches 100 people who reach 1,000and so on. That takes a lot of hardwork over a long period of time.
Remember, the fundamental rules of branding stillapply. Brands are built through consistent positiveexperiences with a product, service or company—just asthey always have been. But these days, the experiences areopenly shared. You can’t control what your customers say,can be a part of the conversation. PB
“You don’t own your brand. Consumers do.” This basic tenet of marketingwas true thirty years ago and it’s certainly true today.
1.
2.
3.
4.
5.MARK SMITHERVice President, Strategic Director, Paulsen Marketing, Sioux Falls, SDmark.smither@
paulsenmarketing.com
22 Prairie Business March 2011
Source: Odney
prairiebizmag.com 23
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Stating the question another way, if your communityestablished a goal to create $100,000 in new annualpayroll, would you rather have ten workers who are
paid $10,000 per year (roughly equivalent to part-timeminimum wage jobs at 25-30 hrs per week), four at$25,000 ($12/hr full time), two at $50,000 ($25/hr), or oneat $100,000?I conducted an unscientific survey within my own
community over the past several months and the majorityof respondents voted for the two at $50K scenario, mostlybecause this equated to a single wage earner beating theregion’s household average, thus raising the standard ofliving in two households, versus just one. Below are someof their other stated reasons, along with a couple of myown, for growing higher-wage year-round jobs in thecommunity:
1. Creation of more disposable income for local retailand recreation spending (all year long).
2. Creation of more wealth, which employees will have
available to invest in local services (financial services,insurance, and real estate).
3. Keeping more of the talent produced in our region’sschools/universities closer to home.
4. Increasing tax revenues all year (sales and property)due to higher money flow in the region.
5.More resources are made available to help localcharities and non-profits while the needs of publicassistance and social services are reduced.
6. Intangible benefits for workers, such as more certainfutures, less financial anxiety and ultimately moreeconomic freedom. As we work to improve the condition of our local
economies by striking a healthy balance between entry-level, skilled-trade and professional level jobs, let usremember that some jobs create more community wealththan others and the quality of the jobs being created isusually more important than the number of jobs. PB
The Value of Higher-Wage Jobs in the Local Economy
Economic Development
BENJAMINSNOW
President, Rapid CityEconomic Development
Partnershipbsnow@
rapiddevelopment.com
“
Are all jobs created equal?
prairiebizmag.com 25
He is passionate about the visitor industry,” statesHagen, who is the newly-appointed Secretary ofthe South Dakota Department of Tourism. Under
Gov. Daugaard’s direction, the Department of Tourism isno longer under the umbrella of both Tourism and StateDevelopment. Although Hagen says he understands what Gov. Mike
Rounds was trying to accomplish when he created theformer agency, the Department of Tourism and StateDevelopment, Hagen also says it is hard to focus in any onearea. “You couldn’t give fair play to other offices,” he says.Hagen started the job earlier this year and says he will
have discussions with Gov. Daugaard on what direction totake the Department of Tourism in the future. “We aregoing to be very focused with our marketing keeping an eyeon our economy and look at the trends of people takingtrips closer to home,” Hagen explains. “In addition, we willcontinue to develop our relationship with our industry with
different attractions and the tremendous success we havehad with cooperating marketing programs.”As for the state of the tourism industry, Hagen has seen
statistics pointing out that domestic trips are expected toincrease by almost two percent in 2011. Mount Rushmoreset a record of 18,000 visitors for a day in mid August andhotel occupancy was up in 2010. In addition, visitorspending was up 10 percent and tourists spent more than$1 billion for the first time ever.Challenges Hagen will have to deal with include the
economy and increasing gas prices. “But we also see themas opportunities,” Hagen says. “We are at the point wherewe know where the bulk of our visitors are coming from.They are staying closer to home and we are adjustingaccordingly. We will focus more on regional advertising, aswell as developing industry packages that are cognizant ofwhat families are looking for.” PBAlan Van Ormer - [email protected]
New Tourism Director wants to develop more relationshipsJim Hagen is leading the second largest industry in South Dakota and also onethat is very important to newly-elected Gov. Dennis Daugaard.
Tourism
26 Prairie Business March 2011
Technology
Finding a company that best fits your needs
One of the most talked about topics in IT technology over the last several years has been managed services. Thediscussion of outsourcing or out-tasking IT responsibilities can be confusing since there isn’t one standard that appliesuniformly to all companies. The one thing that technology companies can agree on is that there is no commonagreement in the definition of managed services among technology companies or their clients. So how do you tamethe “wild west” of IT planning?
WES HENRYPresident,
Insight [email protected]
RICK DAVISChief Marketing Officer, Insight [email protected]
Prudent financial decisions are driving the demandfor outsourcing IT services and that demand hasheated up dramatically in recent years.
FIRST, There needs to be a mutual alignment of expectations
and defined outcomes. Because there is no standarddefinition for services covered in a managed servicesagreement, it is imperative both parties are clear on whatservices are being provided. It should state clearly howthose services match with a client’s expectations andcapabilities of the provider to perform those services, witha reporting component; a straightforward method tomeasure performance and outcomes that are agreed upon.
SECOND, An evaluation of managed service will need to establish
the value proposition. How do managed services compareto hiring internal personnel to perform the same tasks?As business owners, our first inclination is to lookto inside resources for answers. Today, in theincreasingly complex world of technology, astrong cost rationale can be developed foroutsourcing to a trusted partner. A goodmanaged services company can helpconstruct a pro forma with thejustification for that decision. Putthem to the test.
FINALLY, There should be a written
agreement defining mutualresponsibilities. Both partiesneed to have “skin” in therelationship. When abusiness hires a full timeemployee and expects thatperson to fulfill on theirjob description. A strong,trust-based relationshipwith a managed servicescompany should have thesame underpinnings. A
written agreement detailing the responsibilities of eachparty serves as that foundation. It should have enoughdetail so that both companies can be assured they aremanaging toward a common goal. Trust, but verify!In the end, engaging a managed services provider is like
most other business relationships. You want to find acompany that you feel best meets your needs and iscompatible with your business philosophy. The range anddepth of technology a business needs to stay competitivewill only continue to grow. Hiring a “team” of savvyexperts may serve your company well. Managed Services iscertainly an option worth considering.PB
prairiebizmag.com 27
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28 Prairie Business March 2011(continued on page 30)
COVER STORYHIGHER ED
Before the Bakken hit western North Dakota, youngpeople were leaving the state because there were not all thatmany opportunities. Now, Minot State University, with thehelp of many energy companies, has designed a programthat prepares students to meet the financial analysis needsof the energy industry on the Great Plains.“North Dakota students are going to have great
opportunities,” Moseley says.The program started in 2010 and allows students to
earn a Bachelor of Science degree in Energy Economics andFinance. In its first year, 25 students are taking classes. Thehope, with support from the energy industry, that numbercould reach 100 students. Moseley says there are only two or three programs in
the entire nation of this nature. “We’re emphasizingfinancial spreadsheets, economics, and financial analysis.The students will have a good knowledge of energyeconomics.”Moseley says it is important to remember that the
energy industry is supporting the program by helping fundscholarships and money for an energy library, as well astravel so students can present student papers.Intervention Energy, LLC, is a non-operated exploration
and production company, based in Minot, ND, that worksside-by-side with many companies who are working in theBakken and John Zimmerman, Managing Member for the
company, sees the program having direct relevancy to ourbusiness model.“Many companies in the Basin will find this program
useful,” he states. “We’re primarily focused on financialanalysis and sound economic decisions, which fit very wellwith the program.”Not only is Zimmerman a member of the Advisory
Board that is helping craft the program, he and othersinvolved in the Bakken are participating by providingstudents information in the classroom setting.Roger Nash, who is the Engineering Manager for
Pumpco Energy, says the impact of the program is that it isthe initial foundation that the university is building in theindustry. “We’re going to be able to train students that want
Relationship Building 101:
Higher Ed and businessesworking together
“Relationships are valuable,” states Wayne Baumberger, facility manager for Caterpillar Black HillsEngineering Design Center in Rapid City, SD. Caterpillar has forged a relationship with, not onlySouth Dakota School of Mines and Technology and Western Dakota Technical School, but alsovarious other business in the region.
The higher education system not only educates students for careers in various fields after graduation, but also buildsrelationships with different businesses to both improve programs and also provide workforce needs for thebusinesses in this relationship.
Dr. Frank Moseley, Associate Professor of Energy Economics and Finance at Minot State University in Minot, ND,believes that lining up good corporate citizens is important to higher education. “We are providing them futureemployees,” he explains. “They are interested in supporting programs because our people is an input to their future. Theyhave a high invested interest in having a quality program.”
MEETING ENERGY NEEDS
MEE
TING
Minot State University students studying energy economics andfinance pay close attention to their textbooks, while MSU AssociateProfessor of Finance Frank Moseley leads the discussion. (Photocourtesy of Minot State University)
prairiebizmag.com 29
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Two degrees offered entirely online in an accelerated (8-week) class format:the Master of Science in Management and the Master of Sciencein Information Systems.
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Grant funding, tuition awards, and graduate assistantships available.
FOR PROGRAM INFORMATION,become an MSU VIP by creating a personalized “My Main Street”page at www.minotstateu.edu/graduate.
Or contact the MSU Graduate School:Dr. Linda Cresap, Dean, Graduate School701-858-3250 or 1-800-777-0750, ext 3250e-mail: [email protected]
APPLY ONLINE TODAY AT: www.minotstateu.edu/graduate
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GRADUATE PROGRAMSEducation Specialist in School PsychologyMaster of Arts in Teaching: MathematicsMaster of Arts in Teaching: ScienceMaster of Education
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Master of Music EducationMaster of Science in Communication DisordersMaster of Science in Criminal Justice
• Thesis or Non-thesis optionsMaster of Science in ManagementMaster of Science in Information SystemsMaster of Science in Special Education
• Early Childhood Special Educationconcentration
• Specific Learning Disabilities concentration• Developmental Disabilities/Autism Spectrum
Disorders concentration• Deaf Education concentration• Special Education Strategist concentration
Certificate in Knowledge Management
30 Prairie Business March 2011
Not too long ago, farm kids who liked working withhands and getting dirty were most likely to get involved indiesel equipment. Today, that has changed because of theshortage of technicians.M State’s diesel equipment technology program has
allowed employers to find the quality individuals to handlethe highly technical aspects of heavy construction, trucks,and tractors, as well as railroad and oil field work.This program would not have survived without the
donation of a four-wheel drive tractor in the early 2000sand the forging of a relationship with industry leaders likeCase New Holland. M State was the first technical collegeto form a partnership with Case New Holland in thenation.Sam Miller is based out of Georgia and is Case New
Holland’s service instructor, as well as the leader of theNorth American College Partnership Program. He says therelationship has been great because of the quality ofinstruction and the backing they have had through thecollege administration. “They have provided the industrywith technicians who go to work and hit the ground witha good basic knowledge with electrical, hydraulic, andcomputer systems,” he explains. “They can begin to beprofitable right off the bat.”The partnership started in 2005. Today, there are 30
students in first and second-year programs at theMoorhead, MN campus. Typically between 40 and 50percent of the students involved with Case New Hollandare in the program. Case New Holland dealershippurchases tools, provides paid internships, uniforms forschool and work, as well as tuition assistance. In all, CaseNew Holland picks up 75 percent of the tab.Not all students involved with the diesel equipment
technologyprogram are partof Case NewHolland. Thegoal of theprogram is toeducate and haveemployees readyfor entry levelpositions atdealerships inthe region.Dave Eliason,
an instructor inthe program,says the programprovides theemployer with awell-trainedworkforce. “The systems are so complicated they needsomebody to have this specialized training,” he says.As for Miller, he says Case New Holland is in a support
role and does not get into the day-to-day teachingactivities. “We provide the faculty with any training theyneed, the tools and resources and equipment to trainwith,” he explains. “In return, they help us in anypartnership with dealerships in Moorhead. The dealershipbase drives this thing.”The relationship is important because of the economic
crunch involving all technical schools. “In addition, we arekeeping hometown people in hometown jobs,” he says.“We make sure students coming from this area go back towork in that community.”
to get involved in the industry,” says Nash, adding that thisprogram will also provide opportunities for NorthDakotans to stay working in the state.Pumpco Energy is a company that fractures the
formation and props it open. And Pumpco Energy, likemany other companies in the industry, believesrelationships are important. “Part of the oil fieldsresponsibility is to be good member of community,” Nashstates. “We support programs and we are devoted and loyal
too community. It is being a neighbor. This is just whatgood neighbors do.”Zimmerman agrees that relationships are important. “It
keeps what is happening in the classroom more practical,”Zimmerman adds. “Any time you marry what students arelearning in the classroom and what is happening in theactual business world, that is going to make a programrelevant for students and allow them to be impactfulplayers to the companies they go to work for.”
COVER STORY
FORGING AHEAD WITH DIESEL TECHNOLOGY
Like Minot State University, Caterpillar has developedseveral relationships in the Rapid City area in order tomake the engineering design center work.Baumberger states that those relationships are valuable
and are win-win situations for everyone involved. Forexample, Caterpillar is aligning itself with Western DakotaTech to develop future employees with the mechanicaldesign and drafting experience needed to advance thedesign center. Also, Caterpillar has a long history of
recruiting talented employees from the South DakotaSchool of Mines and Technology and that continues today.“The School of Mines has helped facilitate discussions
and open doors for us to make the design center happen,”Baumberger says.South Dakota School of Mines and Technology
President Dr. Robert Wharton states the university has arelationship with Caterpillar that has provided themquality individuals that go into the workforce. “As a
BUILDING AN ENGINEERING DESIGN CENTER
FORG
ING
BUILDIN
G
Jacob Gibbs, Ashland, WI, and JoshuaSummer, Chokio, MN, troubleshoot astarting system on a Case JX109OUtractor. Both students are involved in theDiesel Equipment Technician program atM State – Moorhead. (Photo by AlanVan Ormer)
prairiebizmag.com 31
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32 Prairie Business March 2011
company, they are very active in promotingprofessional development,” he says. “We haveembraced that and make it part of our culture.We’re educating and preparing leaders inengineering and science.” The engineering design center provides
design, modeling, and detailed drafting forother entities inside of Caterpillar. They are apart of the larger service organization ofCaterpillar that handles research anddevelopment.Wharton agrees that the relationship
benefits Rapid City in economic developmentand quality of life issues. “We are all partners,”Wharton explains. “It is a huge benefit in a lotof ways for us to be part of Caterpillar who hassingled us (Rapid City) out to locate one oftheir major design centers. It says a lot aboutthe quality of the School of Mines.”
COVER STORY
CAPTURING FIELD IMAGERY
CAPT
URI
NG
The Center of Excellence based at Lake Region StateCollege in Devils Lake, ND, has developed a partnershipwith several businesses in the region to design and develophigher technology products that growers can use whenaiming for accurate placement of nutrients for crops.One of those partners is Agri Imagis Technologies, who
provides the Internet-based software platform to captureall field imagery that the Dakota Center for TechnologyOptimized Agriculture programs uses for research. Being aCenter of Excellence, the program is focused on ruralentities and business development.“We take risks with firms that might not otherwise
have access in an academic environment to test theirideas,” states Paul Gunderson, Director of the DakotaCenter for Technology Optimized Agriculture.Agri Imagis Technologies is a remote sensing and GIS
company that provides mapping analysis for cropvegetation via satellites. Working in precision agriculture,Agri Imagis provides data to the farm industry, producers,dealers, consultants, and corporate companies.Lanny Faleide, President of Agri Imagis Technologies,
says having a partnership with the Center of Excellencehas helped to develop tools to educate the farmpublic in the use of new technologies. “Being we areinto new technologies we have to prove to industries
and users that it works,” he explains. “Universities act as acreditable buffer in proving technology works. We need topartner with a university to get the word out and changetechniques to the ag community.”The funding the company received through the
partnership has helped the company move to another leveland expand its employment base from five people (whenthe company started 17 years ago) to 14 people today.“It has helped us to become a catalyst to develop new
tools for the ag community,” Faleide says.The Center of Excellence finds the partnership
important because it needs to work with the private sectorto generate high value jobs. “Our hope is that whatever wedo will lead to useful employment in rural areas,”Gunderson states. “A partnership helps bring ideas tocampus so that students and faculty can developinitiatives. With our partnerships, the Center of Excellenceis ready to launch an array of web based training modulesthat growers can use.” PBAlan Van Ormer - [email protected]
Wayne Baumberger, facility manager for Caterpillar Black Hills EngineeringDesign Center in Rapid City, SD, and other members of the design center areforging relationships throughout the Black Hills region. (Photo courtesy of SouthDakota School of Mines & Technology)
Dr. Paul Gunderson, director of the Dakota Center for Technology Optimized Agriculture rides along in one of the Center’s answer farm fields collectingand monitoring the information received from a yield monitor enhance with GPS tracking. (Photo courtesy of Lake Region Community College)
34 Prairie Business March 2011
Marketing and advertising agencies have had tochange the way they do business. “Three yearsago they were thinking we have to do
something,” says Pat Finken, Owner of Odney. “Now it is a mandate.”
Odney has at least two dozen clients in some state ofsocial media development or execution of social media.“The online and social media element has really permeatedthe need for what we do in every aspect,” Finken states. “Inevery age group it has to be part of the mix. We haven’treplaced traditional media but it has certainly become animportant and powerful tool in the list of channels that wecan use to communicate with people.”Robert Sharp, CEO of Robert Sharp and Associates in
Rapid City, adds that this is the new brick and mortar. “Itis not going to be a brochure,” he states. “It is an activepart of the people’s decision making process. This trend inmarketing is going to be around to stay.”Libby Hall, a specialist in social media strategy and
planning for the Flint Group, headquartered at FlintCommunications in Fargo, ND, explains that newtechnology helps to make sure businesses are talking to theright people. “There is a huge shift to opt-in marketingand building relationships with customers, through socialmedia and online technology,” she says.LaRoy Kingsley, President of KK Bold, says social
media is the topic on everybody’s agenda. Three years agofive percent of the businesses in the United States wereinvolved in social media. Today 66% of the businessesusing social media as an integral part of their marketingprogram started doing so within the past 20 months.“It is such a big deal because of the explosion of
information and people’s demands for instantgratification,” he explains. “The most important thing wetry to express to our clients you need to have a plan andsocial media needs to be a component within yourcomplete marketing plan. It needs a lot of attention and alot of caring.”Lawrence & Schiller, based in Sioux Falls, SD, keeps a
constant pulse on new technology opportunities for its
clients. “We are always bringing new ideas to the table tocapture audiences where they live,” states Robin Temple,Director of Message Delivery. “Think about the day in thelife of an audience member – that’s where we need toreach them.”
From Anchor Marketing’s standpoint, this shift is lessabout technology and more about what the technologydoes. “It is more about transitioning from being one-waycommunication to being two-way communication,” statesJay Mindeman, who is the Creative Director for AnchorMarketing, headquartered in Grand Forks, ND. “Theconsumer, the viewer, gets to vote on how they want to becommunicated with. We look at that first and whattechnologies can accomplish that.”Anchor Marketing is evolving into the new marketing
world by listening to what target group they are trying toreach. “How is this target audience learning about ourproduct? We need to find out what media is getting theirattention. That is the direction we need to go,” he explains.“We need to find out what the audience wants first andthen tailor the message to them.”At Flint Communications, part of the attitude of the
organization is to engage employees in the growth. “Thatmeans having a staff that is always passionate,” says ChrisHagen, Public Relations Director. “Not only do we hirespecialists in all disciplines and areas of communicationsbut we invest in continuous education across the FlintGroup to stay on top or even ahead of what’s next.”As social media becomes part of a new marketing
agenda, Mindeman is concerned about the advertisingcontent. “It is relevant because the more content theinternet needs, unfortunately the more the quality of thecontent seems to be compromised,” he says. “That meangood content – and marketing – will stand out. Before Ithought the Internet was going to take over Cable TV.Today, I think the Internet is going to become Cable TV.”Clearly the world is changing rapidly, Finken says.
“There is no question that the way to stay on top is to findthe most successful way to use new and traditional mediato achieve our clients’ goals,” he explains. “With the rapid
COVER STORYMARKETING What’s Next
(in technology?)
In today’s society, businesses are hungry for as much information as they can find to stay ahead ofthe curve. This means that marketing groups have to even be more creative in helping businesseshandle this hefty appetite for information.
prairiebizmag.com 35
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COVER STORYevolution of these media, one of the challenges is tomake sure we have a high degree in competency inall these areas. The impact of online on thetraditional also forces us to continually re-educateourselves on how we can best use these tools for ourclients.”Finken is a proponent of first understanding
human nature and effective behavior. “Once we’vedone that, then we need to find out how we can bestreach out and communicate with the target audiencein the most efficient, effective manner with thebudget available,” he explains. “That is where youblend different media.”Like many marketing and advertising groups, KK
Bold gives its staff freedom and flexibility, as well asmixing in with ongoing training. “We have greatclients who want to push the boundaries,” Kingsleysays. “Content can influence a large group of peopleand can do it very quickly.”KK Bold continues to hire people with a lot of
desire. “They push us,” Kingsley explains, adding thatin 2000 the company had one server that was halffull. Today, there are six servers. “We have to make
that investment in new technology to becompetitive.”Sharp says Robert Sharp and Associates saw this
coming because of his involvement with an allianceof marketing and communication agencies. Thealliance was formed with 10 agencies that went toseminars to learn about new media andmarketplaces. The companies stay in touchthroughout the year.“It makes us stronger and it makes us wiser,” he
explains. “It gives us a network.”Part of it is about building a website that is
optimizing information for people when they do asearch. “Database development is where we aregoing,” he says. “The purpose of all that is lost if wedon’t gather some data about that customer.”Temple adds it is all really pretty simple. “Don’t
be overwhelmed by all the technology options,” shesays. “Focus on those that are most applicable toyour target audience. Yet, always keep an eye on thefuture and what happens after what happens next.”PBAlan Van Ormer - [email protected]
PAT FINKENOwner Odney
CHRIS HAGENPublic Relations DirectorFlint Communications
JAY MINDEMANCreative DirectorAnchor Marketing
ROBIN TEMPLEDirector of Message Delivery Lawrence & Schiller
LIBBY HALL Specialist in social media strategy and planning
Flint Group
ROBERT SHARPCEO
Robert Sharp and Associates
LAROY KINGSLEYPresident KK Bold
L E G E N D A R Y®
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Consulting ! Media Buying ! Public Relations ! Creative Services ! Market Research ! Web/Interactive ! Social Media ! Brandingodney.com or 701-222-8721 Bismarck ! Minot ! Fargo ! Coeur d’Alene, ID
25 years ago, Odney began with a few people juggling multiple tasks and working to be the
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38 Prairie Business March 2011
COVER STORYBUSINESS LAW Identifying business is
important decision
TROY LEONARDTrademark
Attorney/Shareholder,Woods Fuller Schultz
& SmithSioux Falls, SD
In today’s world, people are very brand conscious.Strolling down the aisles of your local grocery you areconfronted with a multitude of choices for the same
type of product. Yet, your decision as to what type of pop,soap, chips, etc. is largely made before you even arrive atthat section of the store. Why? Because you already know,based on your previous experiences, what brand of pop
(e.g. diet Coke®), soap (e.g. Dial®), chips (e.g. Ruffles®)you prefer. It is this customer preference and loyalty thatconstitutes the goodwill represented by a trademark, andmost importantly, it’s what keeps customers coming backfor more of the same.For your trademark to distinguish your goods or
services from those of your competitors, it should beunique and non-descriptive. The strongest types oftrademarks are those that are “fanciful”, that is those forwhich no dictionary definition exists. Examples wouldinclude Xerox®, Exxon®, Google®, and Verizon®.Even the use of one’s own name may not be permitted
if a senior user of the same name with similar goods orservices already exists. On a related note, far too often,businesses select names which are descriptive of theirgoods or services because they tell potential customersabout that business. This practice is discouraged andunnecessary. The proper way to use and advertise yourtrademark is as an adjective followed by a generic term foryour goods: Folgers® coffee, Doritos® corn chips, Kleenex®tissues, Papa Murphy’s® pizza, Skippy® peanut butter, orRolex® watches. Over time, customers will associate yourbrand with your goods or services without reference to thelatter. Best of all, they may even be willing to pay apremium because of their perception of a higher quality orvalue. By now, you can see the importance of selecting a
good trademark. But, you may be wondering how you goabout doing it. The internet has made the searching oftrademarks much easier. It is also for this reason thatgreater scrutiny is being paid by and to the competition.Consequently, it is critical that you conduct a search or‘due diligence’ before you adopt and promote your newmark. You must exercise reasonable care to make sure that
your new mark (or one slightly different but confusinglysimilar) has not already been used by someone in asimilar field.Once you are satisfied that your mark is not
confusingly similar to another mark, you should thenconsider registering it with the United States Patent &Trademark Office (USPTO) or your Secretary of State.Given that most commerce today is interstate (if notinternational), registration at the federal level with theUSPTO is recommended in most cases. PB
Much like selecting the name of your children, how you identify your new business is one of themost important decisions you will make. Ideally, your “trademark” will serve to distinguish yourgoods or services from those of your competitors. This distinction, over time, will result in“goodwill” and cause your clients or customers to associate the quality of your goods or serviceswith your name.
prairiebizmag.com 39
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40 Prairie Business March 2011
Entrepreneurial Spirit
Dakota Rising:
Assisting rural entrepreneurs
“
LORETTASORENSEN
Owner, Prairie HearthPublishing, LLC
Through a new program called Dakota Rising, South Dakota Rural Enterprise is providing grantmonies and business development activities for rural entrepreneurs. Program Coordinator KristiWagner says the program is modeled on a “garden concept.”
One objective is to encourage communities to lookwithin themselves to identify entrepreneurs andsupport them,” Wagner says. “Typically, economic
development focuses on going outside a community tobring business in. South Dakota’s rural communities aren’tlikely to see new businesses come in.” Applicants accepted to Dakota Rising receive monetary
support and human resources to help advance theirbusiness. They’re required to utilize $2,000 of the grantmoney for professional self development.Peg Austin, who purchased a full-service bakery in
Spearfish in 2009, is a Dakota Rising Fellow. She used aportion of the $10,000 Dakota Rising grant to purchase awalk-in freezer and refrigerated pastry case and develop awebsite and advertising plans. The program is helping hertransition to 100% gluten-free products.“When I heard about Dakota Rising it sounded like a
wonderful educational opportunity,” Austin says. “All theFellows meet with their cohort throughout the year. Welearn through interacting and sharing our experiences.”In addition to Spearfish and Edgemont, Dakota Rising is
available to entrepreneurs in Walworth, Campbell, Corson,Ziebach, Dewey, Marshall, Day and Roberts counties. “When the program was initiated in 2008, we had 19
applications from communities,” Wagner says. “From those,four communities were selected.”Each community site developed
a local resource team, producedresource fair, assistedentrepreneurs with the Fellowsapplication and developed localresources for entrepreneursupport. A $5,000 grant helpedcover costs. Uponrecertification, each communitywas eligible to receive $5,000from Dakota Rising for twoadditional years.Businesses applying for a
Fellowship are required toshare their community site’szip code. Acceptedbusinesses must also bepast the start-up phase ofoperation and be willingto learn and grow. “Every community
and Fellow is required to make a three-year commitment tothe program,” Wagner says. “Once that pilot period is over,we hope those communities will continue with the programon their own.”Mark Stein, at Watertown’s ESCO Wholesale Sign
Manufacturing was able to establish a new online presencethrough Dakota Rising.“We make mostly electric signs and sell them in several
ways,” Stein says. “We install and service local signs fromcradle to grave. Signs sold wholesale throughout the UnitedStates are installed and serviced by companies in othercommunities.”Stein’s move to offer church and school signs through
the Internet brought him to Dakota Rising. Before theprogram, he established a website for his sales. However,results were less than satisfactory.“I worked with a program mentor very experienced in
web-based business,” Stein says. “He helped us scrap theoriginal website and for a fully redesigned site.” Austinappreciates access to some of South Dakota’s “best businessworld entrepreneurial minds.”“Benefiting from their advice and listening to how they
handled their challenges has already been an excellentteaching tool and source of motivation,” she says. PB
Delton SteeleRegional President
Fargo, ND701-280-3553
Dave RozenboomRegional President
Sioux Falls, SD605-339-8639
Cindi WalshRegional President
Aberdeen, SD605-226-4103
Pat BurchillRegional President
Rapid City, SD605-394-2021
John SnustadRegional President
Grand Forks, ND701-795-6175
Tim HennessyRegional President
Bismarck, ND701-222-6286
At U.S. Bank, we are committed to supporting the Dakotas. It’s where we work and where we live. We’re also dedicated to being your local financial partnerwith the strength, support and service you deserve. Imagine what you can do when you have the power of US working for you.
U.S. Bank is one of America’s strongest banks. Our strengths have never been more aligned with the needs of our communities, and our stability makesus even more qualified to serve you.
As our nation recovers, we will use that strength to make our communities stronger too. We are well capitalized, open for business, and poised to do whatwe’ve been doing since 1863 – making sure the financial dreams of every U.S. Bank customer take flight with a bank that is safe, strong and ready to workfor you. VViissiitt oorr ccaallll aa UU..SS.. BBaannkk bbrraanncchh ttooddaayy!!
42 Prairie Business March 2011
West Fargo
West Fargo, ND, had just under 15,000 residentsin 2000 and in 2010 that number has jumped to26,000. If trends continue, as many as 45,000
people could be living in the community.To keep up with the growth, community leaders have
developed a comprehensive plan, as well as preparing foreconomic growth.“The metro area and state is certainly doing better than
the national economy,” states Mayor Richard Mattern. The city has seen new single and multi-family homes
being built in the last two years, new businesses enteringthe market, and activity on West Fargo’s Main Street.“It is a business-friendly environment,” states Brad
Jacobson, President of Western State Bank in West Fargo.Jacobson grew up in the community. “We’re alwayslooking to help businesses grow and expand existingbusinesses. We have a well-known education system thatmakes it easy to attract employers and employees to thecommunity.”Such big hitters as DMI Industries, who is becoming
North America’s leader in wind tower manufacturing;Bobcat Company, a leading provider of compactequipment for construction, landscaping, agriculture andgrounds maintenance; as well as Titan Machinery, theleading Upper Midwest dealer of a diversified mix ofagricultural, construction, and consumer products, is partof that mix.
Jeff Volk, President and CEO of Moore Engineering,says his company continues to grow slowly and with that itallows the company to average 100 employees on staff,which also provides an impact for the community. Moore Engineering also handles the engineering
services for the city of West Fargo. New construction has also been a focal point in West
Fargo. In 2009, more than 240 housing units wereconstructed. Also, the city adopted an incentive that wouldallow first-time homebuyers to take advantage of anexemption up to $150,000 of the building value of a newhome for two taxable years after construction iscompleted.This coincides with the school district, which is the
most rapidly increasing district in the state. The WestFargo Public Schools boast a 95 percent district-widegraduation rate, which is one of the highest in NorthDakota. Also, overall district enrollment grew by 22percent between 1996 and 2006.Planning Director Larry Weil believes community
leaders have been visionary. “We struggled for manydecades with flood issues,” Weil states. “In the early 1990s adiversion facility became a reality. Prior to that 60 percentof our community was in the flood plain.”And the growth that West Fargo is experiencing could
not have happened without the Sheyenne Diversion. Forexample, building permits increased one percent between
Young community growing quicklyA relatively young community happens to also be one of the fast growing communities in North Dakota.
Community Spotlight
JEFF VOLKPresident/CEOMoore Engineering
LARRY WEILPlanning Director,West Fargo
(continued on page 44)
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44 Prairie Business March 2011
2009 and 2010. In 2009, there were 523 building permitsissued for a $57.8 million of valuation, while in 2010,both increased to 645 building permits issued and $58.4million in valuation.Over a 10 year period, West Fargo has seen an average
annual growth in population of 8 percent. The Fargo-Moorhead Metropolitan Council of Governmentsestimates the 2010 population at 24,430. In five years, itis expected to reach 27, 840, and in 10 years 29,680people. In that same 10 year period, housing projectionsare expected to increase from 9,254 in 2010, to 10,667five years later, and 11,549, 10 years later.In addition, annexations of land over the last several
years provide West Fargo with opportunities andchallenges. Industrial use grew 40 percent between 1999and 2006, with much of that growth occurring north ofMain Avenue.Business Development Director Dorinda Anderson
DORINDAANDERSONWest Fargo
Business DevelopmentDirector
Photos courtesy of Officer Eric Wiinanen, West Fargo Police Department
(continued from page 42)
West FargoCommunity SpotlightW
EST
FARG
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USI
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��
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Renaissance Zone incentivesWithin specific identified area, this includes aproperty tax exemption and state income taxexemption/credit
Property tax exemptionThis is used on a project specific application andcan be granted up to five years.
PILOTA payment in lieu of property taxes is granted ona project specific application
Tax Increment Financing DistrictThree open districts exist in the area and havebeen used strictly for infrastructuredevelopment.
prairiebizmag.com 45
houstoneng.comFargo | Bismarck | Minot | Maple Grove | Thief River Falls
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has worked to diversify the economy in West Fargo,which includes adding technology-based office buildingwith six new technology businesses. In addition,community leaders feel that the opening for VeteransBoulevard will have an impact on the community.Volk says that proper planning of that whole corridor
will bring good things to the community; but it is alsoimportant to manage the growth.“We are still considered retail poor,” Mattern says.
“For so many years, West Fargo was considered abedroom community, so retail didn’t keep up withpopulation growth. We have added a lot of retail throughthe years, but have also added houses. It is important for
us to get caught up with retail.”Mattern adds that the future is bright and sees
growth opportunities in technology and downtowndevelopment.“West Fargo is a growing community,” he says. “It is a
city that has a positive attitude. It is a proud city.”Jacobson, who was born and raised in West Fargo,
says the community has always been known for its senseof community and pride of the community. “That is alsotrue on the business side,” he adds. “I think of WestFargo as that hometown feel even though it has grownsubstantially.” PBAlan Van Ormer - [email protected]
WEST FARGO LARGEST EMPLOYERS
West Fargo School District
Industrial Builders
TerraMarc/Crary
DMI
Northwest Professional Color
Strata Corporation
Gremada Industries
Bobcat Company
Quality Boneless Beef
Trail King/Red River Manufacturing
Cargill Oil Processing
Davon Press/Midweek/Pioneer
Midland Garage Door
Manufacturing Fargo Truss
� � � � � � � � � �
Without services like ours, businesses don’t havetime in the middle of the day to get answers toquestions,” states Bill Blazar, Senior Vice
President, Public Affairs and Business Development for‘Grow Minnesota’, which is part of the Minnesota StateChamber of Commerce. “BusinessConnection cutsthrough all of that and gives them current responses to thequestions they might have.”Lisa Workman, Executive Director, Fergus Falls Area
Chamber of Commerce, says BusinessConnection is agood tool for business to use. “It is a valuable resource andtool even beyond our scope of experience here in theoffice,” she adds. “We now have a whole other resource toget them answers to their questions. I think the morepeople know about it the more they will use it. This ismuch more specific and direct.”The Web site was running statewide in February.
BusinessConnection can handle inquires in three ways.First, companies can do a keyword search to get theinformation they are looking for. Second, a business can
type in a specific question. Finally, companies can see whattypes of inquires the system has been asked.Darlene Macklin, Executive Director of the
Worthington Area Chamber of Commerce, says thatbusinesses have been contacting the Chamber.“We visit with local businesses on a constant basis and
identify a certain percentage that we go out and make callsto,” she explains. “As a smaller chamber, we are able to workwith our businesses. If there is some question we couldn’tanswer, we would refer to our economic developmentdirector or BusinessConnection. It’s possible that thosewho contact Business Connection would not be aware theycould contact local chamber or economic development.”BusinessConnection is a direct outgrowth of the state’s
business retention program through Grow Minnesota! Thestate was visiting more than 800 businesses a year since2003, but discovered in 2006 that only one out of eight ofthose visited were requesting assistance. PBAlan Van Ormer - [email protected]
46 Prairie Business March 2011
117 23rd Street N • Fargo, ND 58102www.abbusiness.com
701-235-5217 • 800-477-2425
According to the FederalReserve System’s mostrecent Summary of
Economic Projections, theUnited States
economicrecoveryis projected to
strengthenin 2011
with gross domesticproduct rising between3.0 and 3.6 percent andthe unemployment ratefalling to 8.9 to 9.1
percent.Source: Federal Reserve Bank of Kansas City.
Building a Bridge for BusinessIn an effort to help Minnesota businesses reach their true potential, the Minnesota State Chamber of Commercehas started a 24-hour Web site entitled Business Connection.
PROVIDING SOLUTIONS
prairiebizmag.com 47
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48 Prairie Business Energy March 2011
And that is just what state officials are hoping coalreclamation is able to accomplish. “People travelingwill not notice land has been mined when fully
reclaimed,” says Steve Van Dyke, Director ofCommunications for the Lignite Energy Council, acoalition that supports coal-based electricity. “The feeling Iget from mining companies is that long after its gone,reclaimed land is going to stand as a testament as to howwell they did. I think they take that job very seriously.”Jim Deutsch, Director of Reclamation and Abandoned
Mine Lands divisions for the State of North Dakota PublicService Commission, agrees that the mining companies
take reclamation seriously. “This speaks highly of themining industry and the work that they do,” he explains.David Straley, Manager of Government and Public
Affairs for North American Coal, says his company isserious about reclaiming lands that have been disturbed.“We reclaim in a manner that is safest and maximizes ourreturn to the state,” he explains. “There is a financialinterest for us to reclaim more. We treat it with the highestpriority.”Straley estimates his companies in North Dakota
disturb 2,000 acres a year and they touch with equipmentapproximately 1,500-2,000 acres per year. It is estimatedthat more than three full-time employees do nothing butreclaim land that has been disturbed.BNI Coal does not view reclamation as simply a
regulatory requirement, but more importantly acommitment to the environment, landowners, neighbors,county, and our customers, explains Jay Volk,Environmental Manager for the company. “BNI strives toreclaim land that is functional, stable, diverse, andproductive,” he says. “BNI values the wildlife (game andnon game species) and does many enhancements topromote a diversified habitat for a large range of species.Additionally, BNI is constantly looking for a way of betterreclaiming land.”BNI Coal started mining southeast of Center, ND in
1970. Today, BNI Coal mines between 4 and 4.5 milliontons of coal each year, which consists of slightly more than200 acres per year. BNI Coal reclaims the same amounteach year.Currently, there are four active mines in North Dakota.
The largest surface mine in north Dakota, as well as theUnited States is the Freedom Mine, which produces 15million tons per year, followed by the Falkirk Mine, 8million tons per year, BNI Mine at Center, ND, 4 to 4.5million tons per year, and the Beulah Mine, 3 million tonsper year. Eighty percent of the coal produced is used tomake electricity, while 20 percent of coal produced at the
Freedom Mine is used for a synfuels plant.Deutsch says that North Dakota’s coal mining
reclamation program has aspects that go beyond federalstandards. The program has two main components. Thefirst involves mine permitting including the approval ofdetailed mining and reclamation plans. The second isinspection enforcement, which requires the state tomonitor the mining and reclamation operations.“When it first went into effect, we had to adjust to the
change,” Deutsch says. “Companies have incorporatedreclamation into their overall planning. It’s understoodthat is part of doing business.”The key is that the land must be restored back to
productivity to pre-mine levels. An estimated 95 percentof the reclamation has been returned to agriculture. Inaddition, land has been reclaimed for other purposes. Forexample, the city of Underwood turned 150 acres into agolf course east of town. Others have been turned intoindustrial uses, as well as recreation areas. Since 1986,mining companies have received 15 national reclamationawards.Van Dyke states that before there were reclamation
laws, mining companies were doing reclamation eventhough it was not required. “Reclamation is almostsomething now that is very mature,” he explains.Straley sees reclamation having a positive light on the
Companies serious about reclamationTraveling throughout North Dakota, many would never know that certainareas were once coal mining operations.
“People traveling will not notice land has been mined when fully reclaimed,” says Steve Van Dyke, Director ofCommunications for the Lignite Energy Council. “The feeling I get from mining companies is that long after it isgone, reclaimed land is going to stand as a testament as to how well they did. I think they take that job veryseriously.”
Farm equipment is diskingreclaimed land at theFalkirk Mine with adragline in the background.(Photo courtesy of JimDeutsch)
(continued on page 50)
50 Prairie Business Energy March 2011
land in the state. “We have been able to correct Mother Nature’sharsher moments,” he says. “With equipment, we can designtopography to curtail erosion. We mine and have kept in natural treefeatures, as well as habitat for wildlife. We believe we have a verypositive impact on the land.”Volk adds that one of the largest impacts reclamation has on the
land is the reduction of steep contours. “Post mine topography usuallyhas gentler slopes than the pre-mine land,” he says. “The reason forthis is the post mine topography is directly related to the landowner’spreference statements which dictate how land should be reclaimedafter mining. For example, the landowners may request cropland orhay land be returned, which could require a gentler slope then wasthere pre-mine. Likewise, state regulation does not promote slopesgreater than nine percent.”In addition, Volk explains that if the soil resources are available a
landowner can change the land use from the pre-mine use to adifferent post mine land use. One example, he uses is if a landownerhas a rocky, steep sloped, shallow soiled pasture, they could, resourcedependent, change the land use to a more productive land use.“In return reclamation could provide a gentler slope, uniform soil
re-spread, and minimal rocks, which would support a variety ofdifferent land uses including cropland and hay land, pastureland, ornative grassland,” he says. “This could add value to the land and makeit more profitable to the producer.”Alan Van Ormer - [email protected]
(continued from page 48)
prairiebizmag.com Energy 51
The mining process requires the removal of all vegetation andearthen materials to uncover the coal seams that are mined.As the mining process begins, care must be taken to remove,
segregate and save the suitable topsoil and subsoil materials, sincethe soil resource is essential in reclaiming mined lands to beneficialuses after mining.Since the mid-1970s, North Dakota reclamation laws have
required the restoration of premine productivity levels on landsthat have an agricultural use after mining. About 90% of NorthDakota land that has been permitted for mining has pre- andpostmining agricultural uses, includingcropland, hayland and grazing land.Considering that 125,000 acres have beenpermitted for mining, the successfulreclamation of mined lands toagricultural and other beneficial uses isimportant to the local and State economy.These uses will continue on the reclaimedlands long after mining is completed.In addition, reclamation eliminates
safety hazards that would otherwise beleft on the land after mining. Successfulreclamation and revegetation of minedlands is also necessary to re-establish orenhance wildlife habitat, minimizehydrologic changes, and to restore othercapabilities that existed on the landbefore mining.
Successful mine land reclamation is important inNorth Dakota since the surface mining processdrastically disturbs land that is currently beingused for a variety of purposes.
Importance of Mine
Land Reclamation
JIM DEUTSCHDirector of Reclamationand Abandoned MineLands, State of NorthDakota Public Service
Current Acres under permit:
Beulah, 7,572Center, 8,856Falkirk, 34,828Freedom, 47,927Gascoyne, 1,685Glenharold, 3,720A mine pit at the Center Mine with reclaimed lands on the right side of the pitand undisturbed lands to the left. (Photo courtesy of Jim Deutsch)
52 Prairie Business Energy March 2011
More oil could meanless outmigration
We have seen a paradigm shift to push the market to take North Dakota oil to aparadigm of the domestic market having competing projects to move NorthDakota oil,” he explains. “Our communities and state can not only create a vision
for the future, but we will have the public revenue and private capital to make it happen.”Ron Ness, President, North Dakota Petroleum Council, says the issue is recognizing the
sustainability of this oil play and attracting investment. “The most important part of any ofthese types of studies or outcomes is that more and more investment is being made in the
With the reports that more oil can be pumped out of the Bakken inwestern North Dakota, there is the expectation that the state will seethe population growth reversing the 70-year trend of outmigration,according to Lynn Helms, Director, North Dakota Department ofMineral Resources.
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infrastructure and getting the state to recognize it has to invest in the Bakken,” hestates.The Bakken, a formation of dense, oil-rich rocks that stretches into Montana and
Saskatchewan, was discovered in the 1950s. Prior to the discovery of oil in 1951, 64wells had been drilled in the state dating back to 1910. Since 1951, another 16,228wells have been drilled in North Dakota.According to the 2010 edition of the North Dakota Oil and Gas Industry Facts
and Figures developed by the North Dakota Petroleum Council, North Dakota is thefourth largest oil producing state. The state’s average production was more than218,455 barrels of oil per day in 2009, totaling nearly 80 million barrels for the year,up more than 17 million from 2008.In addition, the information states that during 2009, 92.5 billion cubic feet of
natural gas was produced and 56.4 billion cubic feet of natural gas was processed inthe state. The drilling rig count, which is a prime barometer for measuring new oiland gas activity, averaged 52 rigs a day in 2008. The peak year for drilling rigs was1981, with an average monthly rig count of 119. The all-time high was in October of1981 with 146 rigs operating. Horizontal, or directional, drilling accounted for 95percent of the new wells drilled in 2009 and accounted for 84.7 percent of the state’soil production.The deepest vertical well drilled last year in North Dakota was 13,805 feet. The
average depth for a North Dakota well in 2009 was 17,035 feet. The longest horizontalwell drilled last year in North Dakota was 22,174 feet.There were 17 counties in North Dakota in 2009 with
commercial oil production. Oil and gas exploration has occurred,at some point, in every county in the state except Traill County.Production tax revenues for 2009 were more than $392.9 million,representing a 25 percent decrease from 2008. All-time oil taxrevenues to the state are approximately $3 billion.Nationally, the biggest source of energy in the United States in
2009 was petroleum supplying, 37 percent of the nation’s energy.Natural gas provided 25 percent, coal, 22 percent, nuclear, 9percent, and renewable, 8 percent, according to the Facts andFigures.In addition, the average drilling rig count in the nation for
2009 was 1,089, down 42 percent from the year before. The all-time high was 4,530 in 1981. The nation’s average crude oilproduction in 2009 was 5.3 million barrels per day, up 7.3 percentfrom the 2008 average of nearly 5 million barrels per day. Finally,total petroleum imports averaged 11.7 million barrels per day for2009, down 9.2 percent from 2008.It is estimated that by the middle of 2011, production in the
Bakken will reach 400,000 barrels per day and continue upwardto 450,000 or more barrels of oil per day. The change is the result
prairiebizmag.com Energy 53
54 Prairie Business Energy March 2011
of the rig count holding at 165 and operator plans to bringup to 70 more rigs into North Dakota in 2011, Helms says.In addition, he says it is now known that every spacing unitcan support three to seven horizontal wells.Drilling has become more efficient with new bit and
mud technology,” Helms states. “Frac technology hasimproved with use of more and more high strength man-made proppant.”
There are also projections of 2,000 wells per year with afinal total of 21,000 to 49,000 wells.This means there are at least two things North Dakota
needs to do to make it work. First, in the near term, is todouble the frac pump and crew capacity, Helms says. “Thenumber one need for the state and counties is to rebuildand maintain infrastructure,” he explains. “Oil production
growth can’t happen without roads, bridges, water, andhousing.”Helms does not feel there is a need for a new oil
refinery. “Full refineries must be built near the market to beprofitable and North Dakota will continue to beoversupplied with gasoline, especially as ethanol percentageis increased,” he explains. “Energy and ag are heavy dieselusers, so a diesel topping refinery may work.”
In addition, job opportunities and changing educationalrequirements and opportunities are being created becauseof what is happening in the Bakken.Bismarck State College is one secondary institution that
is developing programs to meet the needs of the Bakken.Two new associate degree programs are planned to beginthis Fall, a two-year petroleum engineering program and atwo-year petroleum production technology program thatwill teach students how to become operators in the field.The college is currently developing the curriculum.Bismarck State College already has a process plant
technology program that trains students to operate naturalgas processing plants.“We are providing workforce to operate gas processing
facilities, now we will be supporting field operations of thepetroleum industry,” states Kari Knudson, Vice President ofthe National Energy Center of Excellence at Bismarck StateCollege. “There are many jobs that will be available withthe drilling plans being proposed by oil and gas companies.With the anticipation of adding new wells, the industry willneed more operators and technicians to take care of thosewells.”Alan Van Ormer - [email protected]
“Our communities and state can not only create a vision for the future, but we will have the public revenue andprivate capital to make it happen,” states Lynn Helms, Director, North Dakota Industrial commission for theDepartment of Mineral Resources.
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prairiebizmag.com Energy 55
A Typical North Dakota Oil Well Produces for an Average of 37 Years.
• If economical, additional secondary recovery efforts can be made to extend the life of the well.
In Those 37 Years, an Average Oil Well:
• Produces over 838,000 barrels of oil
(60 barrels of oil per day)
• Generates $57 million in gross profit
• Pays $5,775,000 in taxes:
o Gross production tax - $2,665,000
o Extraction tax - $2,813000
o Sales tax - $297,000
• Pays royalties to mineral owners of $9,520,000
• Pays salaries of $1,552,000
• Has operating expenses of $1,666,000
The average cost of completing a well in North Dakota in 2010 was $6.1 million.
What Does Every New Oil WellMean to North Dakota?
There is enormous potential to develop profitablebusiness between Canadian and Northern Plainscompanies, beyond the very large flow of goods and
services already moving in both directions,” says ConsulGeneral Martin Loken. The Consulate General of Canadalocated in Minneapolis represents Canada in North andSouth Dakota, Minnesota, Iowa and Nebraska. “Ourmarkets are close by and share many similarities, so ourongoing effort to identify and grow profitable business linkstakes place in several sectors and industries.”One potential area for more business cooperation
between Canada and the Northern Plains states involvestechnology partnering and commercialization. It isimportant that companies and research and developmentorganizations in Canada and the Northern Plains ensurethat technologies associated with their products or servicesremain current and competitive in the face of globalcompetition, states Loken.Canada is also excited about what can be done in agri-
food, clean technologies, life sciences, advancedmanufacturing and building projects, Loken says. “Each ofthese sectors has its own particular dynamics andopportunities for greater trade and investment withCanada, so we employ a range of tools and techniques tobring companies and other relevant organizations togetherto explore opportunities,” he explains.The Consulate General of Canada is part of a network of
Canadian offices across the United States working topromote trade and investment links, to engage citizens anddecision-makers on matters of shared interest, and to assistCanadians living and traveling in the United States.Canada is the largest export customer for all five states.
In 2009, two-way trade between this region and Canadatotaled $21.1 billion and supported 345,000 jobs. Inaddition, nationwide, Canada buys nearly three times morefrom the United States then China does. The United Statesexports more to Canada than to China, Japan, and theUnited Kingdom combined, according to Loken. Across thecountry more than 8 million United States jobs depend ontrade with Canada.Canada is not only the nation’s largest trade partner, it is
also South Dakota’s largest trade partner, which is good forRock Nelson, International Marketing Director for theSioux Falls Development Foundation, Chamber ofCommerce, and Airport Authority. Nelson’s job is toencourage more economic development for businesses inthe region that conduct international trade within SiouxFalls and the surrounding region. He works with companiesthat import and export products and services and helpsthem with compliance issuances involving both the UnitedStates and foreign governments.“Being in such close proximity, a lot of trade goes on
between South Dakota and Canada,” Nelson says. “Laws arevery compatible to make companies on both sides of the
Investing in trade to the North
Canada and states in the Northern Plains, including Minnesota, South Dakota, and NorthDakota, continue to work together in business ventures. Now, the Consulate General of Canadain Minneapolis is looking at more trade opportunities in this region.
In Minnesota• Thomson Reuters, Legal
• RBC Wealth Management (formerly Dain Rauscher)
• Canadian Pacific Railway, LTD.
• New Flyer Industries Inc.
• SunOpta Inc.
In North Dakota• Crop Production Services, Inc.
• Canadian Pacific Railway, LTD.
• United Pulse Trading
• Cavendish Farms, Inc.
• Alliance Pipeline Inc.
In South Dakota• Canadian Pacific Railway Ltd.
• TransCanada Corp.
• Saputo Cheese USA Inc.
• Crop Production Services, Inc.
• PPD, Inc.
56 Prairie Business March 2011
40 Canadian owned companies in
124 locations employing
1,425 people21,400 jobs depend on Canadian Trade
Canada’s Relationship within the region
21 Canadian owned companies in
49 locations employing
2,502 people24,600 jobs depend on Canadian Trade
102 Canadian owned companies in
376 locations employing
24,902 people
157,200 jobs depend on Canadian Trade
NORTH DAKOTA
SOUTH DAKOTA
MINNESOTA
LARGEST CANADIAN-OWNED BUSINESSES:
BUILDING RELATIONSHIPS
prairiebizmag.com 57
border want to work with each other.”Canada is the largest purchaser of ag and manufactured
products in South Dakota. “Exports have kept a big share ofthe business sustainable in our area,” Nelson explains. “Forsome companies, 30 to 40 percent of gross revenue isdependent on exports. If wasn’t for the exports for some ofthese companies, they would be really hard hit.”Canada is also North Dakota’s largest trading partner.The Bismarck-Mandan Chamber of Commerce is one
group that has established a strong working relationshipwith the Canadian Consulate General. The Chamber invitesthe Consulate to take part in its annual meeting andprovides time for addressing the audience. The ConsulateGeneral also is an active member of the Chamber.Bismarck-Mandan Chamber of Commerce President
Kelvin Hullet says North Dakota and Canada have strongworking relationships in agriculture, energy, as well assharing common resources and utilizing those resources tobenefit our countries and our economies in each of ournational interests.“On any given weekend you are likely to see a number of
Canadian visitors at our shopping malls and hotels,” he states.Hullet does not specify one project that stands out, but
did say that what happens is that we have businesses tradingback and forth and we are able to directly address any issuesthat arise. “There is also a benefit in that we are able tohighlight and build on the relationship and make other
businesses consider how they might enhance their businessmodel via trade with Canada,” he adds.In Minnesota, a significant share of the growth and
development of Minnesota’s economy can be traced directlyto goods and services moving between Canada and the state,says Bill Blazar, Senior Vice President, Business Development& Public Affairs for the Minnesota Chamber of Commerce.“The Consul General’s office is a great resource in
maintaining and building the two way relationship,” Blazarstates. “They work with individual companies to help themdo more business with Canadian customers and businesspartners. And, we’ve worked successfully on several publicpolicy issues of consequence to both economies.”Business partners and customers are the two major
reasons it is important for the state to do business withCanada. Blazar uses the example of electricity. In thesummer months, Minnesota’s economy depends onManitoba Hydro for a significant portion of electricity.Then in the winter, companies like Xcel Energy provideelectricity to Manitoba consumers.“The petroleum refineries in the Upper Midwest rely
almost exclusively on crude oil from Alberta,” Blazar states.“And, it is hard to walk through a Minnesota shoppingcenter without seeing at least a few Canadian license plates.It is clearly a two-way street and this traffic is building botheconomies.” PBAlan Van Ormer - [email protected]
Wednesday, March 30, 2011 at 11:30amGreg Page, Chairman and CEO of CargillPage joined Cargill in 1974. Over the years, he held a number ofpositions in the United States and Singapore. He became CEOon June 1, 2007 and was elected chairman of the board on Sept.11, 2007.
Thursday, March 31, 2011 at 11:00amMichael Hick, Director of Global Business Initiatives and author ofGlobal Deals: Marketing and Managing across Cultural FrontiersHick runs 21 successful companies throughout Europe, Asia andNorth America, does day-to-day business in 35 countries, and isauthor of numerous best-selling business books. Having given over2000 presentations worldwide, Hick brings a lifetime of practical,road-level business experience to his audience.
For more information about Global Business Connections and to register,please visit www.ndto.com or call (701) 231.1150
Global Business Connections is a two-day conferencethat connects North Dakota businesses withinternational trade professionals from around the world.The conference will include panel discussions withleading exporters and international businessprofessionals, break-out seminars, networking events andan industry trade show. The conference also will includethe presentation of North Dakota’s most prestigiousinternational business awards.
Panelists and presenters include:
· Ed Schafer, Former Secretary for the U.S.Department of Agriculture and formerNorth Dakota Governor
· Michael Laden, Principal of Trade Innovations, Inc.
· Roy Becker, a leading expert in InternationalTrade and Banking
· Bill Retterath, CFO of Daktronics
· Ms. Britt Hestenes, Commercial Specialist,U.S. Embassy, U.S. Commercial Service,Oslo Norway
· Danielle Walker, Director of the Africa BusinessInitiative, U.S. Chamber of Commerce
Keynote speakers:
MINNESOTANORTH DAKOTASOUTH DAKOTA
CANADA
TRADE
The better we understand our customer the better wecan provide solutions for them. When you think in terms of the customer and what
they need to be successful, you tend to look at things in adifferent light. Your customer typically relies on yourgoods and/or services to work and make them money.You, as a provider of those services, help them to besuccessful. When they are successful, you have a betterchance of forging a solid and continued relationship.Your customer does not need nor want to hear your
problems. They have their own. That is why they are atyour door. You are there to provide solutions. If it is quickservice…great, do that. If it is a recurring problem…ASKQUESTIONS. Why? What? How? Your job is to be theexpert and make recommendations to increase their
efficiency, eliminate their recurring problems and makethe products you sell to them last longer. In doing this,the customer has a better chance of being successful. I canalmost assure you that they will remember this and rewardyou with continued business.Consider yourself an employee of your customer. Your
job is to look out for their best interest. Spend theirdollars as if they were your own.We believe strongly in these key points to building a
relationship, and those ideals are not easily compromisedby a cheaper price or “a better deal”.The sweetest sound to any company is to hear your
customer tell your competitor…”no thanks, my currentsupplier takes good care of me. I’ll stick with them.” PB
58 Prairie Business March 2011
ViewPoint
Time for a “Business Makeover?’
Re-validate Your Business Model. Look at the basicpremise for offering a product or service to themarketplace: A) How does this company (and
product/service) create value? B) How does the companydeliver the value it creates? And, C) How well does thecompany monetize the value it delivers?
Refresh Your Value Proposition. The ValueProposition answers three questions everyconsumer has when they are ‘in the market’ for
goods or services: Why should I buy this? Why should Ibuy it from you? Why should I buy it now? Re-examinefeatures, benefits and attributes the business promotedduring the past year. Did it work well?
Update Your Marketing Plan. The art and scienceof marketing is being able to communicate abusiness has the right product, at the right price,
for the right consumer, at the right time (now!). Goodmarketing plans get the value proposition message out ona timely and consistent basis.
Update Your Operating Plan. An effectiveoperating plan should enable the company to beefficient, effective and profitable. Use Written
policies, procedures and protocols for everything
including the employee handbook, inventory levelchanges, and how cash is handled. Use revisions toaddress new issues that cropped up during the year.
Re-Energize the Customer Experience. Look for newways to delight, surprise, reward and communicatewith customers. Find out what turns them on and
turns them off…and then capitalize on those things. Youwant three things to happen: 1) Continuous consumergoodwill, 2) Consumers turning into committedcustomers, and 3) Passionate customers who tell others.
Re-Engage Your Employees. Do somethingunexpected and unusual to shake up the routine.Have an off-site team building experience.
Unexpectedly hand out free gift cards. The rewards ofhard work should go beyond merely more hard work anda paycheck. Variety, spontaneity and unpredictability willencourage the staff to come back every day for more!
Recharge Your Life Away From the Business. Find areasonable balance between personal and businessdemands. Taking time to smell the roses away from
the company on a regular basis fosters a better mentaloutlook, improves creativity and problem solving, renewsoptimism, and increases productivity. PB
Customer Success
RICKLINDEMANN
President,Dakota Fluid Powerrlindemann@
dakotafluidpower.com
DANIELHANNAHER
Regional Administrator,Region VIII Small
Business [email protected].
Every business deserves an annual tune-up to help keep it running smoothly. Here areseven actions every business owner should annually undertake for the New Year.
In the service industry, it is important to remember… “It is not about you”, “The customer is #1”, and “The customer pays the bills”.
Obviously, those reports provide insight into the health ofour economy, but did you know they also influence homeloan rates? That’s right, personal spending can actually
influence the interest rates available when you purchase orrefinance a home.Here’s why. It has to do with something called the velocity of
money. Even though the government keeps pumping money intothe system, nothing happens until that money is spent or lent –and passes from one hand to another or one business to another.The speed at which this money passes between parties is calledthe velocity of money. With the national job market still very sluggish, consumers
aren’t spending much money these days, and businesses are stillreluctant to spend money to make investments in their business.With the present velocity at low levels, inflation remains subduedwhich is good for home loan rates because they are tied toMortgage Bonds. Inflation is the archenemy of Bonds, so lowinflation is good for Bonds and rates. However, once velocityincreases, the excess money in the system will cause inflation –which is bad for rates, since even the slightest scent of inflationcan cause home loan rates to worsen. While we certainly want to see better economic recovery news
in the near future, we have to remember that there’s an inverserelationship between good economic news and Bonds and homeloan rates. Weak economic news normally causes money to flowout of Stocks and into Bonds, which helps Bonds and home loanrates improve. Strongeconomic news, onthe other hand,normally has theopposite result. Currently, home
loan rates are at ahistorically low level,but that situationwon’t last forever.That means now is anideal time to purchasea home or refinancebefore the velocity ofmoney – and rates –change.
prairiebizmag.com 59
Money
What is the Velocity of
Money and How Does it
Impact Home Loan Rates?
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62 Prairie Business March 2011
EMPLOYMENT (NOT SEASONALLY ADJUSTED)
UNEMPLOYMENT RATE EMPLOYMENT
Dec. 2010 Dec. 2009 Dec. 2010 Dec. 2009North Dakota 3.9% 4.3% 349,865 341,938Fargo MSA 4.0 4.1 114,745 113,976Bismarck MSA 3.9 4.3 59,614 58,509 Grand Forks MSA 4.3 4.3 53,291 52,526Minot MiSA 3.7 4.4 32,831 31,508 Dickinson MiSA 2.7 3.5 14,228 3,837 Williston MiSA 2.1 2.3 13,696 14,002 Jamestown MiSA 3.6 3.8 12,356 11,463 Wahpeton MiSA 4.7 5.2 11,380 11,028 South Dakota 4.9 4.8 418,055 425,080 Sioux Falls MSA 4.9 4.9 122,660 122,690 Rapid City MSA 5.2 5.2 61,895 62,260Aberdeen MiSA 3.9 3.6 22,345 22,375 Brookings MiSA 4.0 4.0 18,375 18,280 Watertown MiSA 4.7 5.4 17,800 17,730 Spearfish MiSA 4.6 4.7 12,795 12,755Mitchell MiSA 4.0 4.9 12,420 12,160Pierre MiSA 3.4 3.3 11,855 11,685 Yankton MiSA 5.1 4.8 11,075 10,990 Huron MiSA 4.8 3.8 9,315 9,280 Vermillion MiSA 3.7 3.7 7,555 7,490 Minnesota 6.8 7.4 2,739,560 2,729,009Minneapolis-St. Paul MSA 6.5 7.2 1,723,793 1,711,918 Duluth-Superior MSA 7.4 8.2 135,444 133,813 St. Cloud MSA 6.8 7.3 101,520 101,069 Rochester MSA 5.5 6.1 100,716 99,545 Mankato-N. Mankato MSA 5.4 6.0 54,758 54,244 Brainerd MiSA 10.5 10.4 40,540 41,773 Fairbault-Northfield MiSA 7.5 8.3 30,891 30,548Winona MiSA 6.4 6.8 25,261 26,855 Fergus Falls MiSA 7.6 8.0 27,516 26,933 Red Wing MiSA 6.9 7.3 23,841 23,721Willmar MiSA 6.2 6.6 21,979 22,108Austin MiSA 5.6 5.6 19,620 20,155 Bemidji MiSA 7.9 8.1 21,285 19,972 Alexandria MiSA 6.7 6.4 18,978 19,411Hutchinson MiSA 8.8 9.7 17,082 17,409 Owatonna MiSA 7.0 8.1 19,094 9,282 Albert Lea MiSA 7.7 8.0 14,733 15,107 Marshall MiSA 5.5 5.4 13,787 13,962 New Ulm MiSA 6.1 6.5 13,648 13,745 Worthington MiSA 4.9 4.6 11,181 11,365 Fairmont MiSA 6.5 7.2 10,466 10,502MSA — 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
Nov 2010 $75.74 355.038Sept 2010 $67.95 341,384*Jun 2010 $71.26 284,300Apr 2010 $67.58 261,000Feb 2010 $63.96 241,500
Gas-MCF/ day 352,559 340,384*
Drilling Producing Rig Permits Wells Count
Source: NDIC
AIRLINE BOARDINGS
Minneapolis-St. Paul 1,199,742 16.62Fargo 30,274 - 0.25Sioux Falls 31,594 16.50 Rapid City 19,952 - 0.50 Bismarck 17,086 6.67 Pierre 1,270 9.29 Grand Forks 10,452 11.24 Minot 10,177 100.14
Source: Bank of Canada Data provided by Kingsbury Applied Economics
01/31/10 12/31/10 01 /31/11
U.S. to Canadian Dollar- $1.07 or $0.9390 $0.99 or $1.0054 $1.00 or $0.9978
U.S. to Euro $0.721 or $1.387 $0.747 or $1.339 $0.729 or $1.372
U.S. to Chinese Yuan $6.83 or $0.1465 $6.59 or $0.1517 $6.61 or $0.1514
U.S. to Japanese Yen $90.41 or $0.0111 $81.13 or $0.0123 $81.95 or $0.0122
U.S. to Mexican Peso $13.03 or $0.0768 $12.34 or $0.0810 $12.15 or $0.0823
DECEMBER 2010 % CHANGE/DECEMBER 2009
By the numbers
Nov 2010 245 5.331 158Sept 2010 167 5.197* 143Jun 2010 106 4,810 107Apr 2010 94 4,655 93Apr 2010 99 4,623 74
11/12 Rig Count 156*
*Record for Gas. Rig record was 158 on 11/11/2010. September oil is record production.
NOV % CHANGE NOV % CHANGE 2010 /NOV 2009 2010 /NOV 2009
CANADIAN BORDER CROSSINGS
Source: US Customs and Border Protection
AUTOMOBILES TRUCKS
MINNESOTAIntl Falls-Rainer 35787 12.13% 1569 -18.83%Grand Portage 20652 42.33 1297 61.12Baudette 14181 8.19 621 -23.43Warroad 10079 44.52 919 -11.55Roseau 3197 23.82 471 11.88
NORTH DAKOTAPembina 30335 19.12 17187 8.02Portal 8548 13.79 6067 - 3.73 Neche 4250 7.19 1119 50.61 Dunseith 5226 30.88 2038 26.58Walhalla 3868 49.75 1332 0.68Noonan 2830 7.93 309 -55.15