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Developingour regionSigns are positive

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4 November 2010

Volume 11 No. 11CONTENTS

Cover Story: Developing our RegionOur three-state area is seeing signs of economic and rural development.By Alan Van Ormer

IN THIS ISSUE

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6 From the Editor’s Desk8 Women in Business8 Matthew Mohr

10 Prairie News14 Prairie People56 Q&A: Tom Schabel

60 Viewpoint62 By the Numbers

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Facility changing fadingrural landscapeRural community in South Dakota hopesnew facility designed to educate will helpwith new and innovative opportunities.By Alan Van Ormer

Mergers strengthenbusinessCombining two different cultures keycomponent when two different businessgroups merge together. By Alan Van Ormer

Black Swan Cooperage:Resurgence of an old process.By Nancy Leasman

Talk your way to the topThe ability to get up and speak in front ofpeople and speak is important.By Michael McAllister

Things happening inenergy sectorSpeakers believe North Dakota could be aleader as the nation shapes its energy needs.By Alan Van Ormer

Dakotas America projectThe South Dakota Wheat GrowersAssociation is completing three projects toupgrade ag businesses at North Dakota andSouth Dakota locations.By Lin VanHofwegen

Pricing MistakesExamples of good and bad pricing policies.By Dennis Brown and Per Sjofors

Bring back trustBuilding trust in our working environment.By Roger Hall

ND PUC interviewNorth Dakota ranks high in most energydevelopment categories

Blender pumps makingtransitionThree states in the region are doing what ispossible to make blender pumps part of thelandscape. By Alan Van Ormer

Company analyzesBakken oilOil companies are calling Neset ConsultingServices to evaluate drill rigging operationsin the Bakken. By Alan Van Ormer

Finding efficient waysto liveHunt Utilities Group is finding ways to liveefficiently using what is around them.By Alan Van Ormer

The December issue is our annual tribute to 40 under 40business leaders. Prairie Business magazine will look atsome successful business leaders in the Northern GreatPlains and what has helped them become successful.

Join Prairie Business magazine Editor Alan Van Ormerand host Merrill Piepkorn on Tuesday, Nov. 9 at 3 p.m.on any Prairie Public radio station to hear more aboutthe November cover story on rural and economicdevelopment. To listen to Prairie Public, visitwww.prairiepublic.org/radio/hear-it-now.

Company Profile:UlteigUlteig has emerged to become adiversified company with a solidreputation across the nation.By Alan Van Ormer

Community Profile:Yankton, SDThe southeast South Dakotacommunity steps up to the platewhen there are solid ideas.By Alan Van Ormer

6 November 2010

Mike Jacobs, PublisherAlan Van Ormer, EditorScott Deutsch, Sales ManagerTina Chisholm, Production ManagerJen Braaten, Marketing CoordinatorBeth Bohlman, Circulation ManagerKris Wolff, Layout Design, Ad Design

NNAATTIIOONNAALL AACCCCOOUUNNTT SSAALLEESS//SSAALLEESS MMAANNAAGGEERR::Scott Deutsch 701.232.8893

Grand Forks/Fargo/Moorhead/northwestern MNSSAALLEESS::

Brad Boyd 800.641.0683Bismarck-Mandan/ west central ND/north central SD

John Fetsch 701.232.8893Fargo/Moorhead/eastern ND/western MN

Jeff Hanson 605.212.6852Sioux Falls/southern SD/southern MN

EEDDIITTOORR::Alan Van Ormer 701.232.8893

avanormer@prairiebizmag.comEEddiittoorriiaall AAddvviissoorrss::Ann Reich, North Dakota Bankers Association, Bismarck; Hiram Drache,Historian-In-Residence, Concordia College - Moorhead; James Ferragut, -Fargo,ND; Tom Shorma, President, WCCO Belting - Wahpeton; KarenFroelich, Professor, College of Business Administration, NDSU -Fargo; Bruce Gjovig, Director, Center for Innovation, UND - Grand Forks;Steve Rendahl, Associate Professor, UND School of Communication -Grand Forks; Matthew Mohr, president/CEO, Dacotah Paper Company -Fargo; Julie Fedorchak, Communications Manager, North DakotaDepartment of Commerce - Bismarck, ND; Mary Batcheller - GreaterFargo Moorhead Economic Development Corporation, Fargo, ND;MeganOlson, President/CEO, Watertown (SD) Area Chamber of Commerce

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 bbohlman@gfherald.com

Online: www.prairiebizmag.com

On the cover: Rural and economic development is important to manage what is happening in a booming oil field in western North Dakota

An SBA Award Winning Publication

ALAN VAN ORMERFROM THE EDITOR’S DESK

As you might imagine, the PrairieBusiness magazine staff spends hoursof road time each month traveling

throughout Minnesota, North Dakota, andSouth Dakota to meet with people that havestories to tell in the business community. Inlate September, I took a day-long road trip todo some interviews and take photos for acouple of stories that are appearing in thisissue.

On my trek from Alexandria, MN to PineRiver, MN, I was able to admire the beautyfrom the fall foliage. It was so relaxing andcomforting just to make that 2 to 2 ½ hourdrive up to northern Minnesota. Anothergreat thing about our job is seeing the beautyin the three-state region as we head fromplace to place.

Now, outside of the fact that we travel forstories, many of you are probably wonderingwhat a 2 ½ hour trip has to do with thebusiness world. Seeing the beauty started methinking about what a couple of people Italked to had said.

Perception!In Alexandria, there is a business park

that has some shovel-ready lots located alongI-94. If you are like me, your first impressionof the community is what you see as youenter. Trees and organized buildings are eye-appealing. That is what is happening withthis business park in Alexandria.

When you drive by along the Interstate,the trees provide a perception that this mightbe a place a business might want to build orrelocate to. Once you get inside the park,Jason (Murray) and Tim (Wagner) areworking to make the business park bothattractive and in an organized way.

The perception is that this is a businesspark that a company would be happyrelocating into.

On the other end of the drive was PineRiver. Not only are there swarms of treeswith different colored leaves running alongthe road, my end destination brought me toa company called Hunt Utilities Group orHUG for short.

This group is all about energyconservation; something that businesses areworking to get a handle on throughout theregion. HUG has been doing research andmight have found a way to deal with thatissue by using what the land has given to us.

Each building on the campus is all aboutenergy conservation. For example, the mainoffice has solar windows that are facingsouth, which allows it to conserve heat. Thenanother building has a greenhouse attachedthat could allow the owners to grow theirown food on sight.

Paul Hunt has assembled a group ofpeople that are finding creative ways toconserve energy; mainly in homes, but alsoin other structures. The main concern is amarketable facility, but they have hope that itwill be something that works in the future.

Again, when you look at the perception,the large home where Paul and is wife live isbeautiful. The other buildings on campus aremodels of what could be if a person or groupuses a collective creativity to developsomething unique.

In a larger view, some might think theperception out there is that business isstruggling. In few instances or certain typesof business sectors, there are some struggles.For example, in the manufacturing field,owners are finding it tough over the lastcouple of years. But there are some signs thatmanufacturing is picking up. For example, inMadison, SD, Gehl Company has been hiringemployees to fill jobs; something that wasn’tbeing done in the past couple of years.

But overall, the perception I get whentraveling, is that communities and businessesare working together to make the best out ofthis situation. Many say that there arepositive signs that the economy is turningaround.

In the end, it is all about your perception.

Business ofperception

Let’s wait a second.

And think for a minute.

As fast as business moves,

patience plays a big role, too.

Growth takes care and effort.

But most of all, time.

Bremer Bank is here for the long haul.

We’ve helped businesses

flourish for generations.

Let’s get to know each other.

Let’s grow together.

Patience.

Call 1-800-908-BANK or visit Bremer.com.

Member FDIC. ©2010 Bremer Financial Corporation. All rights reserved.

8 November 2010

MATTHEW D. MOHR

What do youattribute the success ofthe Sioux Falls AreaCommunity Foundation?There are many things andeven more people thatdeserve credit for ourgrowth into a successfulcommunity foundation.Two things top that list.The first is an incrediblycaring and generouscommunity. The second isan active and passionateboard of directors.Considering that six civicleaders each invested$2,000 to get the

foundation started in 1984, and that today our assets stand at $68million, there are many people who share in this success.

What is the synergy between business and philanthropy? While 75%of philanthropy comes from individuals, it’s business leaders who set upthe systems that make philanthropy happen. That kind of leadershipcreated our foundation and gave area businesses, families, andindividuals a way to invest wisely in our community’s well being andquality of life for the long term. After all, businesses only prosper whentheir communities prosper. It’s a fact that companies that practicegenerous corporate philanthropy improve their hometowns and are also

rewarded by positive consumer behaviors and enhanced corporatereputations.

What trends are you seeing in business philanthropy? In the late1990s, companies became much more intentional in their giving.They’re more deliberate in aligning their corporate giving with theirbusiness strategies. Today, larger, national companies typically give lessphilanthropic autonomy to their local offices. That’s led to localexecutives having to work harder to get corporate foundation supportfor their communities. The good news is that these executives do go tobat for their hometowns and still step up to share their time and talentto address local causes.

What effect has the recession had on giving? I can only speakspecifically to our own foundation, but over the past five years SFACFhas grown by $13 million. We, and really the Prairie Business Magazineregion, enjoy a high level of social capital. We live in towns where we stillhave close ties to our neighbors. We care about what happens to them.So when times are tough, our natural instinct is to help.

What has prepared you for this position? I’ve had a wonderfullyeclectic background. As an Army brat, I went to kindergarten in Hawaii,middle school in Germany and high school in Virginia. I earned a degreein English at the University of Kansas and picked up another major ineducation at Augustana College. A Bush Leadership Fellowship sent meto Harvard for a Masters in Public Administration. In between, Imanaged a database for an environmental newsletter publisher,consulted, worked in Washington, D.C. for Peace Corps, served as acounty commissioner and was a stay-at-home mom. Each experienceadded something new to the tool box I use to help grow and manage thefoundation.

CANDY HANSON – PRESIDENT AND CEOSIOUX FALLS AREA COMMUNITY FOUNDATION

WOMEN IN BUSINESS

Great business owners want to expand payroll along with offering great payand benefits to all employees. Doing so takes continual growth, strongrevenues, and reinvested profits. If you can’t handle losing sleep about

how you will be able to pay all your employees, you probably are not cut out tobe a business owner. Similarly, if you generally want your employees to live betterlifestyles and earn higher wages, you are most likely to succeed in business.

Individual business owners, no matter how successful, live with the constantworry of being able to meet weekly payroll needs. From initial start-up to wildsuccess and throughout all phases of growth, a business must generate enoughrevenue to meet ongoing and on-growing payroll costs.

It’s been said every successful entrepreneur has spent sleepless nightsworrying about how to meet payroll in the morning, and this is probably a veryaccurate statement. The great desire or really wanting to be able to pay all

employees is one thing; being able to pay them is another. The positive side to the payroll challenge is feeling

confident about the future and allowing payenhancements. Great entrepreneurs get excited whenthey see success in their business endeavors and are ableto improve the lives of employees.

Mohr can be reached at mmohr@dacotahpaper.com.

Meeting payroll

PRAIRIE NEWS CONCORDIA COLLEGE NAMES SCHOOL OFBUSINESS

Concordia College, in Moorhead, MN, has named its Schoolof Business after 1964 alumnus and businessman Ronald D.Offutt.

Offutt provided the lead gift for a $50 million campaign tosupport the undergraduate business program and facility. Thechairman and CEO of R.D. Offutt Company and RDOEquipment, Offutt has served as a long-time member and chairof the Concordia Board of Regents.

Nearly $37 million has been raised to date, with Offutt’sconfidential contribution representing the largest single gift inConcordia’s history.

The Offutt School of Business will emphasize leadership,global reach, ethics and practical experience. The curriculumwill be infused with four critical themes: leadershipdevelopment, global understanding, an entrepreneurialperspective and an ethical standard. Students will interact withbusiness leaders and apply what they learn in real-worldsettings.

MINNESOTA HOSTS DEVELOPMENTCONFERENCE

The 15th Annual Minnesota Development Conferencetouched on different aspects of economic development thatprovided various breakout sessions to discuss issues that helpMinnesota’s communities grow and prosper. In addition, theNational Governors Association held a forum to talk aboutincreasing postsecondary credential attainment for adults.

In his welcoming speech, Department of Employment andEconomic Development (DEED) Commissioner Dan McElroypointed out Minnesota would be facing four long-term trends:changing demographics and technology, globalization, and thechallenge of replacing fossil fuels (renewable energy.)

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

AIA NORTH DAKOTA CONVENTION HONORS ARCHITECTSSeveral awards were presented during the annual AIA North Dakota 2010

Convention in Grand Forks, ND.The Honor Award was presented to the Gary Tharaldson School of Business at

the University of Mary in Bismarck, ND, designed by EAPC Architects Engineers.Three merit awards were presented. One went to Chateau de Mores Interpretive

Center in Medora, ND, designed by JLG Architects. Another was presented toPrairie Wetlands Learning Center Expansion in Fergus Falls, MN, designed byShultz & Associates. The third award went to the South Dakota State UniversityWellness Center in Brookings, SD, designed by EAPC Architects Engineers.

EAPC also received the Juror’s Choice Award for its design of the St. ThomasAquinas Newman Center in Grand Forks, ND.

The Test of Time Award was given for Central High School in Grand Forks.The original architect was W. J. Edwards, AIA with later additions by Joseph BellDeRemer, AIA, Samuel Teel DeRemer, AIA, as well as the firm of Johnson,Halverson, Anderson Architects, P.C.

Receiving 2010 Scholarships were Malini Foobalan, Kevin Gamelin, PeterKuelbs, Sara Lillegaard, and Ashlynn Zeien.

SIOUX FALLS LAW FIRM IS ON BEST LAW FIRMS LISTThe Sioux Falls law firm Boyce, Greenfield, Pashby & Welk, LLP is among the

nation’s top law firms, according to the 2010 US News & World Report’s annualranking of the nation’s law firms.

The firm received the highest ranking, Tier 1, in 16 practice areas. In addition,nine of the firm’s attorney’s were named to the publication’s Best Lawyers list.

The rankings, including 30,322 rankings of 8,782 law firms, are postedonline at www.usnews.com/bestlawfirms. The rankings were the result of anextensive national survey of more than 52,000 law firm clients and nearly44,000 lawyers.

To be eligible for the Best Law Firms list, firms must have at least one lawyerlisted in Best Lawyers. At least nine lawyers from the firm met that criterion.

SD PUBLIC UNIVERSITIES HAVE $2 MILLION IMPACTA research report says that the six South Dakota public universities generate

almost $1.97 billion a year in annual economic impact from a state investment of$176 million.

According to lead researcher, Dr. Michael Allgrunn, an assistant professor ofeconomics at USD’s Beacom School of Business, the study shows the publicuniversities directly support 5,326 full-time jobs in the state. An additional 9,342jobs are located in the state because the universities generate business locally andindirectly support workers in other industries.

RESULTS UNLIMITED NOMINATED FOR FOUR EMMY®AWARDS

Results Unlimited has been nominated for four Emmy® Awards from theUpper Midwest Chapter of the National Television Academy.

The advertising and marketing agency, with offices in Minot, ND, Fargo, ND,and Moorhead, MN, has been nominated for Trinity Health’s Life ReinventedCommercial Campaign, Short Form Editing Composition, Short FormPhotography Composition, and Location Lighting Composite.

SMALL HOSPITALS RECEIVE FUNDS THROUGH UND CENTERFOR RURAL HEALTH

The Center for Rural Health at the University of North Dakota School ofMedicine and Health Sciences will distribute over $318,000 from the SmallHospital Improvement Program (SHIP) to 36 rural hospitals in North Dakota.

Administered by the Center for Rural Health, SHIP is funded through a grantfrom the federal Office of Rural Health Policy. The purpose of the program is tosupport rural hospitals in providing quality care to rural residents and to fundfinancial studies designed to help with complex health care billing, coding andreimbursement processes. Funds have been used to upgrade equipment forfinancial operations and information technology, and for staff training,consultation, and educational materials.

10 November 2010

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PRAIRIE NEWS EAST MEETS WEST

Community leaders from western North Dakota traveled toGrand Forks, ND to meet with leaders from eastern North Dakotato explore ways to capture opportunities and solve infrastructureneeds that comes with growth. It also helped understand energy,construction, and government issues involving western NorthDakota.

In addition, there were presentations on understanding oil andgas activity, explaining why contractors work in North Dakota, aswell as a tour of the University of North Dakota School OfEngineering and Mines petroleum engineering program andUND’s core library.

TWO NORTH DAKOTA MARKETING FIRMS PARTOF WIND MARKETING ALLIANCE

Fredricks Communications, West Fargo, ND, and AdvertisingMarketing, Fargo, ND, have joined a German marketing andpublic relations firm to launch the Wind Marketing Alliance toprovide branding and marketing strategies and services thatconnect wind energy clients to new and established markets onboth continents.

The two North Dakota companies joined LorenzKommunikation, Grevenbroich, Germany, in announcing theventure during the HUSUM WindEnergy Trade Fair and Congressin Husum, Germany.

Independently, the Wind Marketing Alliance’s foundingorganizations have worked in the wind energy industry for nearly20 years and have represented some of the best-known companiesin the world. Their experience includes manufacturers of turbines,towers, internal systems, precision gears and specialty tools;construction, installation and maintenance contractors; heavy-haul providers; and industry consultants. Its members also havebeen public relations partners to HUSUM WindEnergy in Europesince 1998 and in North America since 2008.

For more information, go to www.windmarketingalliance.com.

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

DIGI-KEY APPLICATION AVAILABLE WORLDWIDEDesign engineers and purchasers around the globe can conduct business

with Digi-Key Corporation wirelessly with the availability of Digi-Key’sapplication for Android phone users.

Digi-Key’s Android app is the second in a series of Digi-Key mobileapplications. It provides easy access to Digi-Key’s expansive product offeringand resources. Similar to the Digi-Key iPhone application, the Digi-KeyAndroid app also allows customers to create Digi-Key orders and view themin local, Digi-Key supported currencies.

This free application, available in the Android Market, is the passkey toone of the world’s largest inventories of electronic components in stock.Providing instant access to Digi-Key, this new application is designed to helpdesign engineers and purchasers source the electronic components they needanytime, anywhere.

SOUTH DAKOTA TECH SCHOOLS HAVE RECORDENROLLMENT

For the second straight year, South Dakota’s four technical institutes arerecording record fall enrollment. The secondary institutions have toppedmore than 6,000 students for the first time ever.

Lake Area Tech in Watertown, and Mitchell Tech, in Mitchell, saw thelargest increases. The programs that saw the biggest enrollment increases werearchitecture and construction, health science, information technology, andscience, technology, engineering, and math.

NDSU RESEARCH FACILITIES RECEIVING $5 MILLIONGRANT

North Dakota State University (NDSU) will receive a $5 million federalgrant for the university’s Advanced Nanomaterials Research Facility.

The federal funding will be used to help build a new state-of-the-artresearch facility at NDSU to provide needed laboratory space for its ongoingnanomaterials research and greatly enhance the efforts of the Red River ValleyResearch Corridor.

The federal grant was awarded by the National Institute of Standards &Technology at the Department of Commerce with funds appropriated byCongress.

MINNESOTA COMPANY EXPANDING TO SOUTH DAKOTAAnderson Seed Company, headquartered in Mentor, MN, is expanding to

Redfield, SD.The company has broken ground on a sunflower processing and hulling

plant in Spink County that is slated to open in 2011. The new facility willbring along 20 jobs including mill operators, quality control positions, officestaff, forklift operators, baggers, and maintenance staff. The plant will have a260,000 bushel capacity.

The $3 million project was partially financed with a REDI Fund loan andthe pooled-bond program, administered through the Governor’s Office ofEconomic Development in South Dakota.

NEW UPPER GREAT PLAINS UAS WEB SITE LAUNCHESThe Grand Forks Region Economic Development Corporation has

launched a new Unmanned Aircraft Systems (UAS) web site. The website,titled “Upper Great Plains UAS,” provides the latest news and informationrelated to Unmanned Aircraft Systems in Grand Forks and the surroundingregion. The Upper Great Plains UAS web site can be found atwww.uppergreatplainsuas.com.

This new web site works to keep the community, region, and UASorganizations and companies around the nation and world effectively up todate and aware of our regional UAS potential, resources, projects, partners,and general happenings. The web site provides UAS information needed byoutside companies and organizations to gain better insight on how wellequipped our region is for becoming the leader in UAS technology, education,training, business development, and more.

12 November 2010

Klaus Lorenz Martin Fredricks

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

MINNESOTA CHANCELLOR WINS 2010 PACESETTERAWARD

Minnesota State Colleges andUniversities Chancellor JamesMcCormick has received the 2010Pacesetter of the Year Award.

The National Council forMarketing and Public RelationsDistrict 5 recognizes a chiefexecutive officer at a two-yearcollege for exceptional leadershipand support of collegecommunications and marketing.

District 5 includes Iowa,Kansas, Minnesota, Missouri,Nebraska, North Dakota, SouthDakota, the Canadian province ofManitoba, Puerto Rico, and the Virgin Islands.

BETTER BUSINESS BUREAU HIRES HIEBERTLisa Dinzeo Hiebert is the new

Director of Strategic Marketingfor the Better Business Bureau ofMinnesota and North Dakota.

Hiebert will coordinatemarketing efforts throughoutMinnesota and North Dakotaand work to raise brandawareness for the Better BusinessBureau and its 6,800 AccreditedBusinesses.

She has an Accreditation inPublic Relations from PRSA.Previously, Hiebert served asDirector of Marketing andCommunications for Girl Scoutsof Minnesota and Wisconsin River Valleys.

SIMS APPOINTED DIRECTOR OF OPERATIONS AT THENWROC

Dr. Albert Sims, Ph.D. is now theDirector of Operations at theNorthwest Research and OutreachCenter.

Sims’ background is in nutrientand fertilizer management in cropproduction. He has been with theNWROC since 1995; he earnedtenure and was promoted toassociate professor in 2001 in theDepartment of Soil, Water andClimate in the University ofMinnesota’s College of Food,Agricultural and Natural ResourceSciences.

Sims replaces Larry Smith, who stepped down as head of the NWROCafter 27 years of dedicated service.

Sims is a member of the American Society of America, Soil ScienceSociety of America, Crop Science Society of America, Soil and WaterConservation Society, and the American Society for the Advancement ofScience. Sims holds a doctorate from North Carolina State University inRaleigh in soil science and both his master’s and bachelor’s degrees are inagronomy from University of Nebraska in Lincoln.

LINDHOLM BECOMES PRESIDENT OF MINNESOTAMEDICAL ASSOCIATION

Dr. Patricia Lindholm, whopractices medicine at Lake RegionHealthcare in Fergus Falls, MN, ispresident of the Minnesota MedicalAssociation.

She started her duties at theassociation’s annual meeting inSeptember. She will be the externalface of the organization acting as aspokesperson for the media and thelegislature. In addition, aspresident, Lindholm will focus onthe wellbeing of physicians, as wellas spearhead the association’s focusof improving the science and art ofmedicine, and to advancecommunity welfare, community health, and education.

OLSON IS CHAMBER AMBASSADOR OF THE YEARLarry Olson was unanimously named the Fargo Moorhead Chamber

of Commerce 2010 Ambassadorof the Year at the SeptemberAmbassador’s meeting.

The distinction is based onattendance, professionalism andboth committee and Chamberinvolvement.

Olson is the president ofTalent Productions and hasbeen producing events,managing artists andentertaining audiences for morethan 30 years. This is Olson’ssixth year as a ChamberAmbassador. During the 2009-10 year, he attended 104 out of120 ribbon cuttings.

DAKOTA MEP HIRES SENIOR ADVISORSDakota MEP has hired two

senior business advisors, DwightDexter and Tony Haugen.

Dexter has more than 30 yearsof senior level experience in sales,marketing, operations, andindustrial engineering. He hasprofessional knowledge indomestic and internationalmarkets and has led negotiationteams in the European and Asianmarkets.

Haugen has experience inmanufacturing companies thatincludes engineering,management, and ownership. Healso has works for large Fortune500 companies, privatecompanies, turnarounds, start-ups, and was part of the executiveteam that went through an initialpublic offering.

14 November 2010

Dwight Dexter

Tony Haugen

Creative. Innovative. Entrepreneurial. Spirited.AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION INSTITUTION

LEEDING THE WAYIN EDUCATION INNOVATION

LEED Silver meansGREEN for UND andNorth Dakota

A new day is dawning for the Education Building at the Universityof North Dakota. Originally built in the 1950s, the building was littlechanged until this summer. `anks to Stimulus funding appropriatedby the North Dakota Legislature, a renovation and expansion ofUND’s Education Building is setting the standard for merginge]ciency, environmental protection and educational impact.

`e LEED® Silver-certi_ed project has been designed for optimizedenergy e]ciency. `at means, in part, the renovated and expandedbuilding will use 24 percent less energy than other buildings ofcomparable size and type. More energy e]ciency means betterstewardship of state resources, lower water use, environmentalprotection, and improved climate controls for comfort and economy.

If you would like to partner with us on this groundbreaking project,please contact Dan Rice, Dean of the UND College of Education andHuman Development, or Jena Pierce, Director of Development, at701-777-2674. To learn more about the project, visit our Web site at:

www.edbuilding.und.edu701-777-2674Ie LEED® Green Building Rating System TM is

the national benchmark for design, constructionand operation of high-performance “green”buildings. It promotes a whole-building approachto sustainability. Visit the U.S. Green BuildingCouncil’s Web site at www.usgbc.org to learn moreabout LEED rankings and standards. (Renderingscourtesy of JLG Architects Ltd., Grand Forks)

The College of Education and Human Development is proud to be working on the project with these North Dakota businesses:

JLG Architects AE2S Engineering Heyer Engineering Obermiller Nelson Engineering Peterson ConstructionGrand Forks Heating Air Conditioning Bergstrom Electric

By Alan Van Ormer

Facility changing fading rural landscape

Arural community in South Dakota ishoping that a new $6.5 million facilitydesigned to help educate people and

groups will change the mentality of a fadingrural landscape to a place of new andinnovative opportunities.

“We feel rural communities need to lookfor ways to create a positive future. Ourconstruction of the Maroney Rural LearningCenter will enable us to host meetings andevents around that vision of the future forrural communities,” explains Randy Parry,President of the Rural Learning Center inHoward, SD.

The entire Rural Learning Center complexis estimated to provide a local economic

impact of over $6 million on an annual basisand is anticipated to directly create between 17and 20 new jobs. The conference training spacewill support 180-220 trainees annually whowill be placed in new jobs in the wind energyindustry. The availability of this facility willcontinue to attract and invite new businessesand visitors to “Reimagine Rural” throughtheir association with the Rural LearningCenter and its outreach work.

“Having a world-class facility like this inHoward is huge- economically and socially. Itwill create jobs and offer new amenities thatwill further enhance residents’ quality of life,”says Keith Thompson, senior project managerfor Koch-Hazard Architects, the firm that isdesigning the facility. “The building isdesigned to reinforce and reinvigorateHoward’s Main Street, and a new plaza willcreate public space for festivals, farmers’markets and other events.”

According to Kathy Callies, Vice Presidentof Advancement at the RLC, the project’simpact is more than just economic. “Theproject provides a living demonstration ofwhat the future could look like for other smallrural communities who are working to identifyand grow their own local leadership,” sheexplains. “It is also a living demonstration ofwhat renewable energy systems are and howthey work. We also hope to display and exhibitenergy efficient building materials andequipment.”

The 32,000 square foot Maroney LearningCenter Complex includes a conference center,smart classrooms, on-site lodging, andwellness center. In addition, the facility willsupport the green energy training program.The facility will feature green technology in itsdesign and operations and will be constructedto meet LEED Platinum certification.

The Maroney Learning Center Complexhas several funding sources includingHeartland Consumers Power District andUSDA Rural Development. The facility willreceive assistance from the American RecoveryReinvestment Act funding through a USDARural Development Business and Industryloan. The Miner County Bank in Howard isthe lead bank allowing the project to have a 90percent federal guarantee. Miner CountyDevelopment Corporation will own andoperate the building.

Construction is underway in downtownHoward and is expected to be completed in2011. The 24-room hotel will have a 75-foottower with an elevator that leads to the secondfloor. Those participating in conferences cango outside and walk on a green garden paththat will show all the South Dakota indigenousplants and learn about the plants. Also, theycan go inside to a gathering place where theycan talk, learn, discuss, and relax, before theyhead to their meetings or training.

The project willfeature special effectsrelated tocommunity andrural. For example,materials from theformer AmericanLegion buildingand gymnasiumwere salvaged forreuse in theproject. There willbe six grain bintops located downthe corridor. Atthe top of eachgrain bin is askylight to

By Alan Van Ormer

16 November 2010

Randy Parry, President,Rural Learning Center

bring natural light into the hallway.Water will be reused from a water tank

above the elevator in the tower. In addition,a 3.4 kilowatt Falcon vertical axis windturbine sits on top of the tower where windwill be coming in for energy. Also, PV cellsare being built on the top floor and at theback of the building are 44 wells, which willbe 250 feet deep tying into a geothermalheating and cooling system.

“This will be 50 percent more efficientthan a traditional building,” says Parry.

While the facility will be energyefficient, it is the training inside the facilitythat will be critical. Much of it will be onsolar and wind education allowing peopleto receive training and become certified inthose fields. There will also be a learningcorridor. For example, there will be kiosksthroughout the facility where thoseparticipating can touch a screen and learnmore about a different energy system.

“It is a place that people will be able tocome and learn about rural. It is a place thatwhere you are talking rural, this is rural. Itis not Minneapolis,” Parry says. “This is aplace that people can interact and learnfrom one another. We want to haveindividuals in communities to come to aplace where they can learn from each otherand with the help of some of our work beable to identify ways in which theircommunity can grow and be sustainable.Learn from our failures, as well as oursuccesses. It will be a place where they canbe welcomed and be part of a learningprocess who wants to change. Change canhappen.”

Callies says local leadership is a keyelement to the development of a strategicvision for what a community wants to beand look like for its citizens now and in thefuture and in marshalling the courage tomake it happen.

“This facility is our invitation to come tounderstand “rural” in a firsthand fashionand to be welcomed to understand what ittakes to be a vibrant rural community,” sheadds. “The facility provides us with thespace and support services to create ahosting place that provides for the kinds oflearning and discussion that manycommunities and visitors to Miner Countyseek.”

Prairie Business 17

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COMPANY PROFILE - ULTEIG

Ulteig has emerged from a business that started during the ruralelectrification administration to what has become a diversifiedcompany that has a solid reputation across the nation.

The Fargo-based company is built around its four core sectors: energy,civil services, buildings services, and land services.

“All have a strong role to play,” explains Brian Long, Executive VicePresident/Chief Development Officer. “With the economy now, theenergy sector is the largest at this time. In the past all have played aprominent role in our development.”

Ulteig had its start in 1944 when Mel Ulteig, who was a general fieldrepresentative with the Rural Electrification Administration, started thebusiness in his garage in Fargo. At the start, the business was involved inrural electrification in North Dakota, parts of South Dakota, and westernMinnesota planning and designing how to build infrastructure forelectrical cooperatives.

Today, the company generates $50 million in revenue, has nine offices,and 350 employees. Along with its headquarters and another office inFargo, Ulteig has facilities in Bismarck, Cedar Rapids, IA, Denver, DetroitLakes, MN, Grand Forks, ND, Minneapolis, and Sioux Falls, SD.

There has been small growth in the last couple years because of theeconomy.

The economy was hard to deal with, but Steve Maag, Executive VicePresident/Chief Financial Officer, says the company remained stablebecause of its diversity. “With the economy, the commercial service areais flat,” he explains. “The others are picking up the business.”

In 2005, Ulteig became an employee-owned company, whichprovided tax advantages and also helped build its reputation. Theemployees participate in a stock ownership plan.

“We try to establish an ownership culture where everybody thinksthat the extra effort that they put in ultimately puts profits in thecompany and they share in those profits to increase value of thecompany,” Maag explains. “We’re trying to have employee ownersunderstand that the company’s success is their success.”

In addition, Eric Michel, President and CEO, says becoming an SCorporation helped from a business standpoint because it is an indicatorof who the company is. “Other companies recognize the benefit that goesalong with it. We demonstrate a certain level of standard of care to ourclients,” he says. “ESOPs are a quick indicator that says everyone is onboard. They care and are taking care of us and themselves at the sametime.”

Recent energy contracts have provided the company opportunitiesaround the region. “Renewable energy shifts and how we generate powerin the country have changed and has helped,” Long explains. “It hascreated a lot of demand for services that we do in that area.”

The growth in the civil services sector has been based on localflooding and changes in weather patterns causing wetter years. “This hascreated a need for growth and need for our services to come up withsolutions.”

Long adds that civil services, as well as building services, have seen ashifting toward government contracts and that has been successful.

Finally, the land service sector has seen growth due to heavyinterconnection to the company’s civil services and energy work. “Thelargest growing group is our land rights or right of way group,” Long says.“We have great solutions for these problems.”

Ulteig has been involved in major projects in its 46 years. Here is a listof some of the most recent projects: Xcel Energy Delivery SystemEngineering, Oak Port Flood Protection, Vermont Smart Gridinfrastructure, Northwood/Wadena Recovery, Wind Farm Collection andUtility Interconnection projects throughout the country, North DakotaDepartment of Transportation Engineering, Telecommunications Rightof Way procurement system wide over multiple states, US GeneralServices Administration Project Coordination, City wide improvements(city of Park Rapids), and City of Fargo Multiple projects.

“Some markets are up,” Michel explains. “We move toward where themoney is going to be. Staying flexible is how we would characterize ourbusiness.”

By Alan Van Ormer

A business model in diversification

(continued on page 20)

Ulteig Management: Brian Long, Executive Vice President/Chief Development Officer; Eric Michel, President and CEO; and Steve Maag, Executive Vice President/Chief Financial Officer.

20 November 2010

Ulteig has a sizablepresence in the state and inthe region, according toMichel. “Ulteig has beenresponsible for designingnearly 25 percent of all windcapacity in the United States,”he says. “We are deep in somemarkets, as they dry up we useother areas.”

Gerald Van Amburg is amanager on the board thathandles the Buffalo Red RiverWatershed District and hasbeen involved with Ulteig’swork on the Oak Port FloodControl Project.

“They are very good, veryprofessional in theirapproach,” he says. “They areknowledgeable on what theydo. I am impressed in generalwith the engineeringcompanies in the area. Ulteigis one of them.”

Van Amburg also states that the Ulteig employees are concerned about doing it theright way. “They go out of their way to solve sticky problems and watch out for those thatthey are working for,” he adds.

Ulteig has been involved in major municipality projects in the region. “Fargo-Moorhead is a growing area,” says Van Amburg. “There are a lot of engineering problemsthat need to be solved. They are right in the middle of it helping out.”

ULTEIG NOT WITHOUT CHALLENGESOne challenge is finding quality employees.“Our resources are the universities,” Michel states. “In some areas the

market has been so depleted. Technology has robbed a lot of theintellectual capacity.”

Michel adds that in the engineering field, science, technology,engineering, and math have fallen below the lines of where the needs are.“Resource has been a challenge.”

Maag adds that training staff in technology to keep up with the latesttrends is a challenge. “We meet that challenge by hiring the best peoplethat we can,” he states.

Michel said the company is meeting the challenges head on. “Problemsare diminished quickly by addressing them immediately rather thanwaiting for them to resolve,” he explains.

The Ulteig management team says they are confident in the company’sabilities. It starts with the energy sector, because as Michel states, energygoes back to the company’s roots. “We enjoy a solid area and are able tomaintain that,” he explains. “In other areas there is not as long a history. Ithink we have been successful in integrating technology to bring us up tospeed with the strongest competitors.”

The challenge for the future is to remain diversified. “That model hasworked well and helped us sustain through some of these economicdifficulties,” Michel says. “Geographically we are servicing the nationalfront from current locations, but developing additional partnerships.”

For Michel, company success will not be gauged on head count ormaterial acquisition as much as working on solving clients problems. “Ourgrowth is based on trying to provide opportunity,” he explains. “We wantto be diversified, be busy, be solving our client’s problems, we want to beexcited and engaged employees that are able to come up with innovativeideas.”

COMPANY PROFILE - ULTEIG

BOTTOM LINE: Headquarters: Fargo, ND

Founded: 1944

Employees: 350

On the web: www.ulteig.com

(continued from page 18 )

Aaron Faiman viewing paper diagram for building.

Ryan Watson updating electrical plan.

Detroit Lakes, MN office

Fargo, ND office

Sioux Falls, SD office

Cassie McNamara browsesthrough project plans. Surveying a project.

Prairie Business 21

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When the Fergus Falls Medical Group and Lake Region Healthcare discussedmerging one of the key discussion points was establishing a new culture forthe combined organization taking the best from both organizations.

“We were able to work through that,” explains Larry Schulz, CEO/Administratorfor what is now Lake Region Healthcare. “Both organizations had historically goodworking relationships. That provided the foundation to lead to the discussion to makethings move fairly smoothly through the process.”

Combining two different cultures is just one of the key components when twodifferent business groups decide to merge together.

Rick Davis, Chief Marketing Officer, Insight Technologies, says his company lookedat their recent merger from the perspective that they didn’t want to acquire or mergewith an entity that did exactly the same things as they did.

On July 1, Insight Technologies merged with Ignus. The new company has officesin both Fargo, ND, and Grand Forks, ND. The company moved to a new office in Fargoon Sept. 1. Insight Technologies provide IT support services in network assistance,server planning, network support, and conferencing. Ignus brought the additionaldisciplined of web site development, e-commerce, and software developmentcapabilities that allowed Insight Technologies to do migration and evolve existingdatabases.

“Ignus is a really good company. We had different clients, which was reallyattractive,” explains Davis, adding that the company could see a rapidly developingmarket for web site design and software development. “We have come to appreciatethat the Ignus team was extremely good at what they do and have a great reputation.There is an attractive blend of cultures, skills and capabilities. We thought combiningthe two companies would enhance both.”

On Oct. 1, the West Fargo Chamber of Commerce and Fargo-Moorhead Chamberof Commerce joined forces.

President and CEO Craig Whitney says joining the two providesa strong business association for members. “Now we will have asmany as 2,000 members,” he explains. “We are excited about themessage this sends to the community. The business community isunified, stronger, has a larger voice, and people are thinking aboutother ways and different ways to collaborate and work together.”

The Fergus Falls Medical Group and Lake Region Healthcarefinalized their merger on May 1. The Fergus Falls Medical Group isa multi specialty clinic made up of 46 physicians and Lake RegionHospital, provides acute medical care, acute rehab care, an inpatientpsych unit, and an assisted living facility.

One of the significant reasons for the merger involved healthcarereforms and how impacting reimbursement for state and federalfunding for healthcare services would affect a growing elderlypopulation in the region. Shortage of physicians and moving towardelectronic health records were other factors in the move.

“In order to best serve our patients and best position ourselvesto be successful in future we were stronger working together,” saysSchulz.

Lake Region Healthcare serves 57,000 people in a primaryservice area of west central Minnesota that includes Fergus Falls,MN.

Schulz explains that the merger helps increase quality health

By Alan Van Ormer

Mergers strengthen business

22 November 2010

(continued on page 24)

Craig Whitney, President and CEO, Fargo, Moorhead, West FargoChamber of Commerce

Insight Technologies provide IT services.

Prairie Business 23

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services to our area. One of those ways is by increasing the medicalstaff. The merger will increase the number of providers from 46 to61. The merger will also help with recruiting and retainingphysicians, and accessing additional federal dollars that are availablethrough the Medicare program.

When the chambers of Fargo-Moorhead and West Fargodiscussed a possible merger, Whitney says that the one thing helearned was that the communities wanted this to happen. “Themembers wanted it,” he adds. “It is going to fit in very well.”

It was almost a dozen years ago when Fargo and Moorheadchambers merged, according to Whitney. He says it was less than sixmonths after he started as the President and CEO of the Fargo-Moorhead Chamber of Commerce when he was approached about amerger.

“We have so many programs, business training and educationalprograms, events, and committees,” he explains. “It obviously makessense for the West Fargo chamber to have access to all of thoseopportunities.”

Whitney is excited about all aspects of the merger, but he statesthat it also provides the chamber an opportunity to focus on thepublic policy arena. “We have an expanded group of employees thatwould provide a larger voice,” he says. “We can speak to our electedofficials at all levels of government on issues that are important tobusiness.”

For now, the Fargo-Moorhead/West Fargo Chamber ofCommerce name will exist. However, Whitney says a firm will be hired tohelp provide a new name to show the representation of the valley. “Oneof our goals is to become a stronger, more visible leader in the two-statearea,” he explains.

As the chamber moves forward, Whitney says that most of thechallenges have been worked through. Now, there is still work to becompleted on combining the two chambers’ databases into one system,as well as reaching out and welcoming unique members.

“We’re trying to let them know what the benefits are and in somecases, clarify some of the misconceptions that may have existed about thedifferences between the two organizations,” Whitney states.

Insight Technologies and Ignus had their issues to work through asthey worked toward a merger. One of them involved melding theirpeople and processes. “We went through an evaluation process,” Davisexplains. “The end result was that the combined whole of the twocompanies has a greater value than the two individual parts.”

The technology company services clients in the Red River Valleyregion – 100 miles on either side of the valley – as well as western NorthDakota and western Minnesota. It is estimated that annual revenues willbe more than $4 million.

“We are now a one-stop IT center for our clients,” says Davis. “In ourpositioning to our clients, we offer an alternative to the expense of hiringinternal people. We become an outsource option that can fill and supportall of their IT needs.”

The new company moving forward will continue to be known asInsight Technologies and will offer a wider variety of IT support andmanaged service capability.

Our ability to grow our business is going to be felt in two directions,”explains Davis. “We will be able to expand the depth of our relationshipswith our existing clients by offering a wider array of services andcapabilities. We will also be able to attract new clients who want onecompany that they can depend on for IT support.”

24 November 2010

(continued from page 22) Doctors and nurses work together to provide healthcare services at Lake Region Healthcare.

Insight Technologies now can provide IT services and web site development.

Prairie Business 25

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What do Lyman Baum and HeidiKarasch have in common? Theirfathers were barrel makers. While

Baum went on to author The Wizard of Oz,Karasch has followed in her father’s footstepsto become a cooper.

Heidi Karasch, 23, is the only known femalecooper in the Midwest. She started bysweeping the floors of her dad’s cooperage.“She knows 95 percent of the operation,” RussKarasch proudly says of his daughter who nowmanages a business with roots in Greif BarrelCompany in South St. Paul. Now known asBlack Swan Cooperage, the business will bemoving to the Park Rapids / Osage area thisfall.

“I started making parts for the barrelcompany in 1992,” says Russ, a barrelcraftsman and history buff on the industry.“Greif was the biggest and last cooperage in theMidwest,” he says, noting that in the 1800sthere were no fewer than 150 cooperages in theSt. Paul/Minneapolis area. At that time, mostcommodities, from fish to nuts, were shipped

in wooden barrels. Russ says that 95 percent oftheir barrels were decorative or used by theJamaican Blue Mountain Coffee Companywhich exported their beans solely in barrels.“Those barrels were made of aspen, had thinstaves, were light weight, and didn’t have to bewater tight.”

Russ’s company constructed 16,000, 20gallon coffee bean barrels in 2000. Two yearslater, hurricanes affected Jamaica’s coffeegrowing region that the need for barrelsdropped drastically. “We made only 1,000barrels in 2002,” he remembers.

As the need for coffee barrels plunged, thesurge in micro-distilleries popularity hasopened up new markets for barrel makers.

“There were only six micro-distilleries in1995,” says Ralph Erenzo of Tuthilltown Spiritsin Gardiner, NY who purchases many of BlackSwan’s barrels. “Now there are over 200.”

Barrel demands are increasing and Erenzopredicts there will be a proliferation of smallcooperages and expansion of existing ones.The Barrel Mill in Avon, MN is the only other

known cooperage in the three-state area.Heidi Karasch, who took over

ownership of her dad’s cooperage in2009, is riding the crest of the new waveof demand for finely crafted barrels. “Ilike the quality of the wine and whiskeybarrels,” she says.

There’s more demand for the barrelsthan can be produced. The company canonly make about 10 a day in their currentlocation north of Clotho, adjacent to theBerkness Saw Mill which produces whiteoak used in the barrels. A larger building,as well as family connections in the ParkRapids area, is leading the Black SwanCooperage northward.

Their business relationship withBerkness Saw Mill will continue. “It’shard to find barrel makers that will makewhat you want. We started with three-gallon barrels and now use many 14-gallon barrels,” Russ says, noting that thefolks at Black Swan are open toexperiment and willing to make barrelsin whatever size he needs. “They havecontrol of the wood by working directlywith the saw mill. They are giving us a

consistent char in a timely way,” headds, expressing appreciation for thegood working relationship they have.

Wooden barrels have a quaint andtraditional appeal. Constructionmethods are unchanged for 4,000years. Dry cooperage producesbarrels to contain dry productswith no need to be leak-proof.Tight seams, however, are ofprimary importance for a barrelto be used in aging alcohol.Quarter sawn oak staves of theproper profile, bevel and bendare assembled and heldtightly together withgalvanized steel hoops.Proper toasting andcharring of the barrelsmakes them in highdemand for agingalcohols. Radial arms sawsand other mechanizationsmake stave cutting and shaping, aswell as hoop assembly, easier than acentury ago.

“Each stave is handled seven times,” saysHeidi Karasch. Attention to detail is requiredto make a tight barrel. And lighting a fire in acresset to caramelize the wood’s sugars andtoast a barrel’s interior can only be doneproperly with a 30-45 minute slow toast.Charring - adding compressed air in a flash-firing of wood shavings directly in the barrel -raises the temperature to 1,800 degrees in lessthan a minute. That controlled conflagrationresults in a #1 to #5 char, depending on theduration of flame exposure.

The toasting and charring of the inside arecrucial. “Our focus is on the inside of thebarrel. It’s very important,” says Russ. “Thedifference in the toast levels is huge in theflavoring.”

No finish is applied to the barrels’ exteriorsince the wood breathes and allows micro-oxygenation.

Russ and Heidi’s attention to the flavoringcomponents of barrels may be put to use whenBlack Swan establishes its own distillery,something that’s on the back burner for now.The Karaschs have a family history of

By Nancy Leasman

Black Swan Cooperage: resurgence of an old process

COOPERING TERMSStave - the boards that make up the sides

of the barrelBung hole - the hole in the side, used to

both fill and empty the barrelBilge - the widest part of the barrelChime hoops – the smallest hoops at

the ends of the barrel Bilge hoop - the largest central hoopsQuarter hoops - the hoops between the

chime and bulge hoopsRivet - used to join the metal hoopsHeads - the top and the bottom of the barrelMiddle - the middle section of the headCant - the section on each side of themiddleQuarter - the sections after the cantChime - the parts of the staves thatextend beyond the headCroze - the cut in the staves where theheads are fitted

26 November 2010

Prairie Business 27

involvementin that avocation back in theprohibition days. “All four of my grandparentswere bootleggers,” Russ says. “People werepoor; they did it to survive.”

The whole Karasch family is involved inbarrel making. Heidi’s brother, Jacob, is goingto school for law enforcement but likes allaspects of coopering. Her 14-year-old sister,Rebecca, is at the floor sweeping stage andMom helps with the book keeping. Variousemployees fill out the ranks in the cooperage.

“We grew up with sawdust in our hair,” saysHeidi. “It’s a great industry to be a part of.”

With relatives in the Osage area, Russ andMaryAnn will be moving from Avon to herfamily home near Big Toad Lake. The businessis expected to follow.

Leasman is a Long Prairie, MN-based freelancewriter. She can be reached atleatherwood@wisper-wireless.com.

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If the term public speaking sends a shiver down your spine andgenerates an impulse to head for the nearest hallway, consideryourself normal. The ability to get up in front of people and speak well is a prime

business asset. The person who stands confidently and presents a caseforcefully is promoting more than an idea. That person is promoting acareer.

No matter how valuable speaking ability may be to a career, however,that ability isn’t likely to contribute if it can’t be utilized. And it can’t beutilized if the very thought of doing so is paralyzing. The first step,then, is to rethink what public speaking is.

PUBLIC BE DAMNEDSpeech instructors Isa Engleberg and John Daly prefer the term

presentation speaking. This term, they feel, citingresearch for support, more accurately reflectsthe type of speaking demanded in theworkplace.

Now that the jitters have subsided, howcan we utilize presentation speaking toour advantage? We can make it an art wecan master by concentrating on six basictactics.

1. PRACTICE!Think of the speaking

opportunities that come ourway each day. Youropposition to your ten-year-old daughter’stongue-piercing request?Your fourteen-pointobjection to your wife’ssuggestion that you spendChristmas with her family? Those are speakingopportunities. Take advantage of them.

2. THINK BEGINNING, MIDDLE, ENDHook your audience with the beginning,

deliver information with the middle, and closewith something memorable. Stated another way,speaking manuals often refer to the Three Tell-ems: Tell ‘em what you’re gonna tell ‘em; then tell‘em; then tell ‘em what you’ve told ‘em.

3. PUT YOURSELF IN YOUR AUDIENCEWhen it’s time to craft what you actually want to

say, consider what you would want to hear. Whatwould make you sit up and take notice? A question ora surprising statement? A reference to a current eventor a humorous anecdote? These are all legitimate waysof hooking an audience.

The middle of your presentation should contain itsbasic information. The ending? Make it brief and

memorable. What would leave a lasting impression with you? Often acall to action is appropriate. Maybe an inspiring quotation would work.Try to reinforce your main idea in a unique way. An effectivepresentation will leave a lasting positive impression.

4. LET THE EXPERTS HELP YOUNow that you know what to do, how do you do it? Speaking—whether presentation or public—is big business. There are dozens of

books in your local bookstore or at your public librarythat can provide the rudiments of effective compositionand delivery. Likewise, the World Wide Web offersthousands of opportunities. Google public speakingand see what comes up. Finally, there are professionalorganizations devoted to the cause of speaking, themost notable being Toastmasters.

5. DEVELOP DELIVERYThere are two components to every

presentation—what you say and how yousay it—and they’re as closely connected asidentical twins.

Even in everyday conversations,think about what you say while you’resaying it. Enunciate clearly. Choosewords precisely. Speak as much aspossible in full sentences. Forceyourself to finish. Practicegesturing, too. The well-placedgesture can be just like a well-placedhammer when it comes to driving apoint home.

6. CHECK YOUR UH-MOMETERThe next time you’re watching someone

being interviewed on television, count thenumber of times the interviewee says uh. You’ll

be amazed. Once you’ve become aware of it inothers, you can work to curb it in your own

speech—uh and other vocal mannerisms that candetract attention from the message.To become even more aware of fillers, tape record

yourself in a normal conversational setting. There’s nobetter way to eliminate speech habits that could provedistracting.

MOVING UPThe fear of speaking in front of people may not be a fear youcan conquer completely, but it is a fear you can live with.

(Michael McAllister has been an office manager, a salesperson,and the owner-operator of a computer store. He currentlyteaches English and communication at Iowa WesternCommunity College in Clarinda, Iowa, and may be reached at

mmcallister60@gmail.com.)

Talk your way to the topBy Michael McAllister

28 November 2010

Prairie Business 29

30 Month 000030 January 2009

COVER STORY - By Alan Van Ormer

Developing our region30 November 2010

Western North Dakota continues to experiencegrowth from the oil boom causing communitiesto find ways to deal with the explosion in

economic and rural development.In western North Dakota, oil and energy development

has provided another opportunity for economic diversity.“We are conscious about maintaining economic diversity,”says Gaylon Baker, President, Economic DevelopmentAssociation of North Dakota. “We see a window ofopportunity to further diversify the economy.”

Jasper Schneider, State Director, USDA RuralDevelopment, says there is tremendous excitement in thenorthwest part of North Dakota. “Growth is great for oureconomy, but we must carefully manage the developmentand direct resources for infrastructure to maintain quality oflife,” he says.

Western North Dakota is not the only region in the three-state area that is seeing signs of economic or ruraldevelopment. Both North Dakota and South Dakota areusing the I-29 corridor as a way to develop a technologycorridor. In Minnesota, Alexandria is using the state’s shovel-ready program to develop a business park. All three states are using ruralbroadband to connect homes to the network; just another step in ruraland economic development.

TOP FIVE PERCENT OF GROWTH CITIESWilliston, ND and surrounding communities are considered in the

top 5 percent in growth cities, says Tom Rolfstad, Executive Director,Williston Economic Development. “We are well on our way to doublingour population in every town out here,” he states. “We need help to growas fast as we are. We continue to invest and focus on ag diversification.We have had some great local successes and look forward to continueddevelopment in the future.”

Since the oil boom, the community has developed or completed thefollowing plans: Comprehensive Master Plan, Annexation Options andImplications, Infrastructure Capital Improvement Plan, Regional WaterStudy, Transportation Study, Housing Study, Labor Availability, andPetroleum Needs Assessment Update.

The region has received help from state and federal programs.USDA Rural Development is helping with the development by

providing support for facilities like hospitals in Crosby and Williston.However, many believe it is important to strike a balance.

“We are making critical investments to address the needs in energy-impacted areas,” Schneider says. “Of equal importance, for North Dakotato realize its full potential we must also address the needs of all regions.”

USDA Rural Development is committed to the future of ruralcommunities throughout the region and the nation. Schneider says thatUSDA has invested more than $750 million primarily in infrastructure in

North Dakota through financial packages including grants, direct loans,and guaranteed loans with a local bank. The money can be used forcommunities under 50,000 people.

Paul Lucy, Director, Division of Economic Development and Finance,notes the importance of recognizing and understanding the diversity ofneeds across North Dakota as the Department of Commerce providesprogram delivery.

“We have to recognize opportunities and challenges, and respond tothem appropriately,” he explains. “For instance, there are significantinfrastructure challenges in western North Dakota that are beingaddressed to support the rapid growth of the region.”

Lucy’s definition of economic development is the creation ofeconomic wealth through the implementation of strategies andinitiatives that will positively impact people in all levels of society. “It isabout enhancing opportunities, raising the standard of living, improvingquality of life, increasing jobs, and providing economic stabilitythroughout the area,” he states.

Economic development is in the information business. “Our job is tomake sure we are well informed, there is good development, and we arebuilding that tax base,” Baker states. “We’re making sure that thecommunity is one they want to live in. Those (communities) who areready will be the desirable place to live.”

Lucy states thatrapid growth createsa variety of needs fora community andregion, ranging from

Prairie Business 31

Pumping oil (Photo courtesy of Forum Communications)

Construction project starts in western North DakotaPaul Lucy, Director, Division of EconomicDevelopment and Finance

32 November 2010

basic community infrastructure like housing and roads to the need toaddress workforce development and attraction.

He notes that Job Service North Dakota reports there are presentlymore than 12,000 jobs available all across the state. North Dakota hascontinued to see the impact of its economic development efforts in anumber of areas. Since the year 2000, average wages have increased byover 45 percent in the state and personal income growth in North Dakotafor the recent quarter is at two percent, which led the nation, accordingto Lucy.

There have been nearly 40,000 net new jobs created since 2000 andthe per capita personal income has increased 54 percent since 2000, Lucysays.

Rolfstad says that certainly the incomes that are being generated inthe region are improving the standard of living. “Also, the quality of lifeinitiatives are going to move our image ahead,” he states. “A growingeconomy is a magnet for investment in hotels, restaurants, retail,recreational, and medical advances.”

SMALL COMMUNITY SEEING ECONOMICDEVELOPMENT

In South Dakota, a small community outside of the state’s capital hasseen some economic development of its own.

Fort Pierre, SD is located across the Missouri River from Pierre. Thecommunity of 2,000 people is connected by a bridge to Pierre. One ofFort Pierre’s most significant business operations is Fort Pierre Livestock.

Fort Pierre’s Economic Development Director Dave Bonde sayseconomic development is all about marketing properties to new businessprospects and improving business opportunities for existing businesses.“Increasing business development in a small rural community promoteseconomic growth and improves the quality of life for our citizens,” hestates.

Bonde also believes that Rural America is significant to the economicgrowth of the United States. “There probably isn’t a great difference incomparing rural development to urban development other than smallercommunities who are dependent on the economic success of farmingand ranching,” he explains.

Even though closely positioned near the state’s capital, Bonde saidFort Pierre is an independent community that will always retain thatstatus. And to make sure the community remains independent, 33 acresof riverfront commercial property have been developed and marketedsuccessfully, according to Bonde.

“Businesses that have responded to the new development are elatedwith the atmosphere, the view, and the business growth they haveexperienced,” he states.

Bonde adds that the Teton Island Development Park has sparked anenthusiasm that Fort Pierre has not experienced. “The increase in newbusinesses investing in our community has created a pride that isinfectious,” he explains. “Fort Pierre is still a farm-ranch dependentcommunity and fast developing the attitude that we are proud of ourheritage and excited about our future.

“New businesses, new restaurants, more hotel rooms add up toadditional taxes in the city’s coffers. New homes, new parks, bike paths,better streets, and utility upgrades insure a better quality of life and thenew jobs all lead to the improvement of our standard of living,” Bondeconcludes.

RURAL BROADBAND CONNECTING REGIONInter-Community Telephone Co. provides voice and data services to

most of the small towns and rural areas surrounding Valley City, ND.ICTC received an award in the amount of $2,338,651. The grant

amount is $1,625,362 and the loan amount is $713,289.“We plan on bringing Fiber-to-the-Home (FTTH) service to the

towns of Sanborn, Hope and Tower City that will allow those customers(continued on page 34)

Fort Pierre Economic Development Director Dave Bonde

Main Street construction (Photo courtesy of Forum Communications)

Teton Island Development Park in Fort Pierre. (Photo courtesy of Fort Pierre Economic Development Corporation)

Prairie Business 33

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34 November 2010

to receive faster broadband speeds than they currently receive,” explainsGeneral Manager Keith Andersen. “Our goal is the same as when therural telephone companies were formed to provide voice service. Wewant to provide broadband to everyone that wants it.”

According to an article in the October issue of North Dakota Living,approximately 100 million Americans currently do not have broadbandat home. The Federal Communications Commission acknowledgesbroadband is essential to advancements in healthcare, education, smartgrid, first responders, and homeland security.

The North Dakota Living article also states that “a central feature ofthe FCC’s broadband plan is to bring 100 megabit actual downloadspeeds to at least 100 million Americans by 2020. The problem is that theplan recommends support to assure only 4 megabit actual downloadspeeds to people in rural areas and other regions that are economicallychallenging to serve.”

ITCT has about 2,300 voice access lines and 1,000 internet customers.The cooperative also provides high speed private line service to severallocations in Valley City including Valley City State University andSanford Health through its relationship with Dakota Carrier Network.

Andersen says the cooperative still needs to address the rest of thetowns we serve plus the adjacent rural areas to replace as much coppercable as we can with fiber optic cable so these areas can receive fasterinternet speeds.

“By providing broadband to rural areas, existing businesses are morelikely to expand and new businesses are more likely to locate in theseareas, thereby creating jobs in our small towns,” he says. “As everyoneknows, small business is the economic backbone of America and we aretrying to do our part.”

Griggs County Telephone Company is providing last-mile Fiber-to-the-Home technology to bring affordable and reliable broadband accessand video services to underserved North Dakota rural areas. The projectincludes building facilities to more than 1,700 households, more than400 businesses, and 17 critical community entities in eastern NorthDakota. The project is expected to be completed over the next two tothree years.

Tyler Kilde, Vice President and General Manager, Griggs CountyTelephone Company, states that rural broadband helps with economicand rural development because if it is not offered to meet the needs ofcommunities, it is basically shutting the door on opportunity andexpansion in rural America.

“Our everyday lives are so interconnected to the services provided bybroadband,” he explains. “Not having the infrastructure to provide theseservices will be extremely detrimental to rural America.”

SHOVEL-READY BUSINESS PARK COULD SPARKMANUFACTURING

In Alexandria, MN, Alexandria Area Economic DevelopmentCommission Executive Director Jason Murray feels that placing several

lots in the Heritage Business Park along I-94 will spark growth in analready strong manufacturing sector.

“It is a place companies could be seeking because it has excellentvisibility,” Murray says. “It is appealing and we have availability.”

There are two bypasses centrally located between two exchanges on I-94 making it easy for trucks to get in and out from the interstate.

Tim Wagner, President, Heritage Transports, considers being part ofthe shovel-ready program a good marketing tool. “I’m all aboutexposure,” he says.

Recently, the Minnesota Department of Employment and EconomicDevelopment (DEED) awarded shovel-ready certifications to Alexandria,Cambridge, Monticello, and Big Lake. Shovel-ready certification meansplanning, zoning, environmental studies, title work, publicinfrastructure, and other preconstruction activities have been completedon a site.

DEED Executive Director Dan McElroy explains that there is a littleconfidence in manufacturing in Minnesota because the state has beenadding employees. “They are reporting more optimism,” he explains.

“Industry clusters seem to be doing well,” McElroy adds. “Packaging,equipment, food manufacturing, and medical devices is a big area thathas been doing well in Alexandria.”

Murray says the shovel-ready process helps because it cuts down oncosts, timeliness, and the construction process for companies who areready to move right now.

There are three business parks in the community and two are atcapacity.

Murray says economic development is about job creation and taxbase. “You want wage base and you want wage retention,” he explains.“Growing tax base in our community is important. “

The business park can hold up to 20 companies, but only five lots areconsidered shovel ready. The remainder has the entire infrastructure inplace, but companies still would have preliminary work to do. On the fiveshovel-ready lots, companies can build and start work almostimmediately.

The state of Minnesota has certified an estimated 27 acres as shovel-ready in the business park. This allows interested companies to expeditethe regulatory process. The lot sizes range from 3 ½ acres to 6 acres.

Wagner says the business park provides good industrial land and iscreating jobs that matter. “We are bringing in dollars,” he says. “It benefitsus. It benefits the community.”

A lot has not been sold in two years, but there is optimism. “This economy isn’t going to stay down forever,” Wagner explains. “It

is not going to get worse than it has, it is going to improve.”

(continued from page 32)

(continued on page 36)

View of land in Heritage Business Park in Alexandria, MN.Jason Murray, Alexandria Area EconomicDevelopment Executive Director

Prairie Business 35

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36 November 2010

DEVELOPING RESEARCH CORRIDORSThe Red River Valley Research Corridor is on its way to becoming a

national hub for federal academic research and development activity.Since 2002, more than $700 million of federal investments in

research, training, advanced services and manufacturing contracts havebeen directed to universities, colleges, and businesses throughout NorthDakota.

According to the National Science Foundation, federally fundedacademic research and development in North Dakota is up 46 percentsince 2003, making the state the third fastest growing state in the nation.

“We’re just getting going. We certainly have come a long way,” statesDelore Zimmerman, Executive Director, Red River Valley ResearchCorridor. “We need to start bearing down on some of these areas that weare working on such as advanced codings and microelectronics. Thereare a lot of growth opportunities.”

It all started in 2002 when North Dakota Sen. Byron Dorgan met withNorth Dakota college and university presidents to outline a vision for theresearch corridor. The focus was on cutting-edge research and buildingcapacity in areas that would attract new industries. Since that point,research is being conducted in micro technology, nano technology,energy, deep brain research, and vaccine research.

In addition, the federal funds have established several research andtraining centers including the Center for Nanoscale Science andEngineering at North Dakota State University, Neurosciences ResearchCenter at the University of North Dakota’s School of Medicine, RuralCrime and Justice Center at Minot State University, Center forNanoscience Technology Training at North Dakota State College ofScience, and National Energy Technology Center at Bismarck StateCollege.

At the third annual Milestones and Horizons in October in Fargo,

ND, at least 20 research companies provided an update on what has beenhappening in their companies.

Zimmerman says that the hope was to create a world class researchcenter and new economic opportunities that would lead to higher payingjobs. “We’ve done both,” he explains. “ Not that we don’t have a lot ofwork to do, but there has been a really good foundation laid for that.”

From a business perspective, Zimmerman states that the researchcorridor has developed more of a collaborative environment than we’veever had before. “That really serves us well and helps us move all theseinitiatives forward,” he states.

The research corridor is also about economic development because asZimmerman says it increases the prosperity of people, it creates new jobs,and it creates a lot more opportunities. “In economic development youalways want one thing to always lead to another,” he explains. “That’swhat this is all about. We put the research in place that becomescommercializable technologies, that creates new companies, that createsnew jobs. The research is the fundamental part of it; the seed for all of it.We have been successful in turning or translating that research into newbusinesses and business opportunities.”

In South Dakota, a group is determining the next step in developingthe I-29 corridor from Watertown to Sioux City, IA.

Al Heuton, Executive Director, Brookings Economic DevelopmentCorporation, states that some of the quick wins that could be achievedwould be the development of South Dakota Manufacturing ExtensionPartnership (MEP), marketing the corridor, organizing private sector ledindustry cluster efforts, and enhancing higher education involvement incorridor economic development efforts.

Counties, cities, and economic development organizations along theI-29 corridor and the South Dakota Governor’s Office of EconomicDevelopment contributed to a survey conducted by the RegionalTechnology Strategies, Inc. The North Carolina-based groupinterviewed economic development officials, community leaders,company owners and executives, venture capitalists, technical collegeand university presidents and faculty located along the corridor.Representatives from Sanford Research and the Avera Research Institutewere also consulted.

Key components of the study included identifying the existingeconomic base, its present condition and outlook for future growth. Thestudy also included an evaluation of current research activities withinhigher education and emerging economic development opportunitiesbased upon that research.

South Dakota State University President Dr. David Chicoine statesthat collaboration and cooperation has the opportunity to be impactful.“The total (as has been demonstrated elsewhere) can be greater than thesum of the parts,” Dr. Chicoine explains. “Scale is important and theregional approach in the northern Great Plains is an approach toachieving scale.”

Another challenge is the workforce. “Workforce availability has beenan issue for certain industry sectors across theentire corridor in the past,” Heuton says.“Although the recession has eased workforceshortages, demand for various skilledpositions is increasing.”

Heuton says that “Two primary challengesgoing forward will be to better matchindustry workforce skill requirements withworkforce training efforts, and creating aneconomic base that provides additionalemployment opportunities meeting thedemands of the corridors human capital.”

The corridor development effort is alsofocusing on building relationships andexploring opportunities to build awareness ofthe corridor.

(continued from page 34)

National Energy Center of Excellence (Photo courtesy of Bismarck State College)

An apartment complex in western North Dakota.

Prairie Business 37

For more information aboutBowman County and thecities of Bowman, Rhane,Scranton and Gascoyne,please visit www.bowmannd.comor call (701) 523-5880.

BowmanRhane

ScrantonGascoyne

At the heart of thriving energy develop-ment, Bowman County is known for itsaccessible land government and abun-dant natural resources. A leader amongrural communities. Bowman County isknown for its growth and progressivespirit. Top it off with a low cost of livingand high quality of life, and you’ll seewhy Bowman County is the ideal placeto do business.

2010 Entrepreneurial Community of the Year

There is no question that the United States has challenges in energy.Some believe it will be a difficult journey to put our nation on apath where other sources can be part of the mix to provide energy

needs in the future. However, those speaking at different energyconferences in September feel that North Dakota could be a leader as thenation shapes its energy needs.

Diversification is a key element in the energy mix.The United States uses a quarter of the world’s oil supplies, but only

produces 10 percent of the world’s needs, North Dakota Sen. ByronDorgan told those attending events focusing on hydrogen in GrandForks, ND, recently.

“We’re far too vulnerable on oil that comes from outside thiscountry,” he states. “We need to look at other sources at home.”

At the Great Plains Energy Expo and Showcase in Bismarck, ND, oneweek later, Dr. Aran Majumdar, Director, Department of Energy’sAdvanced Research Projects Agency-Energy says that North Dakota hasbecome a good example for the rest of the nation because of the impactit has made in creating jobs.

Those attending the Hydrogen Economy Action Summit andMountain States Hydrogen Business Council discussed the futurehydrogen economy, as well as explored different strategic topicsincluding production of hydrogen from fossil fuels, hydrogeninfrastructure and utilization, and production of hydrogen fromrenewable energy sources.

The Great Plains Energy Expo and Showcase was aimed at bolsteringenergy production and use in this region to help reduce the nation’sdependency on foreign oil.

What was evident at both conferences is the different possibility of

energy mixes to help reduce the dependency on oil.For example, during the events associated to hydrogen, it was stated

there is 50 million tons of hydrogen produced in the world; 9 milliontons in the United States. There are at least 100 hydrogen vehicles inoperation.

In fact, two separate memoranda of cooperation between the Energy& Environmental Research Center and Israel Energy Partnership,Pelham, NY, and between the EERC and the Alliance of US IndiaBusiness, Washington, DC, regarding the development of alternativeenergy systems for transportation and technologies for hydrogeninfrastructure and transportation, was signed during the HydrogenAction Summit/Mountain States Hydrogen Business Council HydrogenImplementation Conference.

General Motors is also working on a fuel cell program. Currently,there are at least 100 fuel cell Equinox vehicles made that range up to 200miles at a top speed of 160 kilometers. General Motors is looking atincreasing that range to 300 miles.

The benefits are zero emissions, efficiency, and synergy withrenewable energy sources.

Dr. Mark Mathias, Director, Electrochemical Energy Research Lab, inHoneoye Falls, NY, says fuel cell technology is achievable and hasestablished momentum. However, Mathias states that a stablegovernment is key to continuing the program.

In his address in Bismarck, Dick Gephardt, Former DemocraticLeader, U. S. House of Representatives, and now President and CEO,Gephardt Government Affairs, says there are three principles that thenation should use to guide an energy policy. Does the policy promotedomestic sources of energy? Is the energy source clean environmentally?Every part of the country is different and the policy should be sensitivein what it means in terms of policy.

He admits he has never seen an issue like energy in his political life.Gephardt feels that even if we get an energy policy ½ ways right it mustachieve three important goals. One is to become more energy dependent.A second involves economics. The third is the environment.

“To get policies in place we need to work hard to build bipartisanconsensus that has to be there to get this done,” he says.

For businesses involved in the energy economy, conferences providean opportunity for them to showcase what they can do.

For example, the Northern Plains Commerce Centre, located inBismarck, had a booth to showcase its facility during the two-day event.The facility serves as a transload and staging area for wind towers, blades,

nacelles, and other large equipmentand machinery associated with theenergy industry. In addition, thefacility handles rebar, lumber, pipe,utility poles and other products.

So far in 2010, Northern PlainsCommerce Centre has handled 400tons of rebar. That is expected todouble by the end of the year. Inaddition, it is estimated that 1million board feet of lumber willship through the facility.

Cathy Spencer, MalloryAlexander International Logistics,says she participates in energyshows because it helps showcaseher company, as well as makecontacts with those doing businessin the energy field.

“It is important to have apresence,” she says. ‘We learn aboutnew projects and it benefits ourbusiness.”

Things happeningin energy sectorBy Alan Van Ormer

38 November 2010

Finding out more about energy companies.

Prairie Business 39

Non-Stop Jet Service from FargoAllegiant Delta American UnitedLas Vegas

OrlandoPhoenix-Mesa

Los Angeles

Salt Lake CityTwin Cities Chicago Chicago

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Dakotas America announces multi-milliondollar Wheat Growers projects

By Lin VanHofwegen

Utilizing a $17 million New Markets Tax Credit allocation fromDakotas America LLC, the South Dakota Wheat GrowersAssociation (SDWGA) is completing three projects to

upgrade agricultural businesses in North and South Dakota locationsand bring jobs and economic strength to those areas.

“Projects like this one are the reason Dakotas America exists,” saidBeth Davis, managing director of Dakotas America. “By using NewMarkets Tax Credits, we can bring a new economic vision to distressedand rural areas of our two states.”

The New Markets Tax Credit (NMTC) program, established byCongress in December 2000, gives individual and corporate taxpayersthe opportunity to receive a credit against income taxes by investing inqualified investment entities.

For more information on the NMTC program and its applicationin your area, go to www.dakotasamerica.com.

Wheat Growers is upgrading and modernizing the facilities inBerlin, ND, so that they can become competitive and serve farmer-owners in the long-term. It is proposed that the grain facilities beupgraded with a new dryer, legs and conveying equipment to improveefficiency and service.

SDWGA also built a new 19,000-ton fertilizer plant at Oakes, ND. Thislocation will provide modernized facilities for both the members of BerlinFarmers and Norway Spur Farmers. SDWGA is already operating a grainfacility at this location in a joint venture with Norway Spur.

The plan also includes construction of a new 20,000-ton dryfertilizer plant at McLaughlin, SD. SDWGA has already added railshuttle load-out capability and larger amounts of storage to theMcLaughlin facility, with Dakotas America LLC providing anallocation to help finance that expansion. Nearly half of the membersnow served from the McLaughlin location reside in North Dakota,with fertilizer currently being delivered as far north as Bismarck.

Construction of the two fertilizer facilities and rehab of the Berlinelevator created as many as 50 jobs for three to six months forcontractors, welders, millwrights, electricians, and other constructionworkers. Those workers came from the local area and supplies werepurchased locally. This demand helps retain jobs at a time when otherconstruction is at an all-time low.

SD Wheat Growers has created 12 new jobs at the three locations,including warehouse workers, agronomists and equipment operators.These positions will create jobs for trucking firms, service repair andadded retail, with a potential of 548 direct and indirect jobs.

The two proposed fertilizer plants are projected to produce totalsales of about $20 million per year. This volume will produce a marginof $2.3 million annually that will be applied to costs that are incurredby SDWGA within the local community. The Berlin Elevator, withupgrades, is projected to originate 2.8 million bushels of grainannually at a forecast price level of $17 million to $18 millionannually. Total economic output from the three projects is expected toreach $170 million, with farmer benefits of $1.3 million.

“These projects significantly impact the economies of our partnercommunities,” said Dale Locken, Chief Executive Officer of the SD

Wheat Growers. “Thanks to the infusion of capital implemented byDakotas America, we were able to maximize the efficiency and theimpact of our expansions in these markets to better serve ourfarmer/owners in their operations.”

South Dakota Wheat Growers Association is a farmer-cooperativeserving both South and North Dakota. It isowned by over 16,000 members acrossthe two states, and provides grainmarketing and agronomyproducts/services toapproximately 5,000active producers.Historically, thecooperative has servedthe James River Valley,with the bulk of itsmembership residingin North CentralSouth Dakota.

VonHofwegen isthe Vice Presidentof Operations forthe South DakotaRural Enterprise.She can bereached atlin@sdrei.org.

40 November 2010

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COMMUNITY PROFILE - YANKTON, SD

Scott Sandal felt he had a great idea with his data center concept ofspace, power, and bandwidth. He was just hoping his new-foundhome in Yankton would accept the idea.

Sandal says that the community of Yankton is more willing to look atthings that are different than the norm as long as there is substance to it.“The community of Yankton stepped up and built the project,” saysSandal, who recently opened DataVator and is a partner on the DatawareGreen (DWG) facility. “They said they felt more comfortable with myidea if I worked with an established company. They stepped up and trulyput it together.”

Once designated as the territorial capital, Yankton has evolved into acommunity that is willing to take a chance to improve its businessprospects, as well as quality of life for the 14,000 residents that live in thecommunity that lies along the Missouri River in southeastern SouthDakota.

Like Sandal, Bruce Cull was another one who saw firsthand what anidea can do.

Cull, the president of the National Field Archery Association, isworking to designate a new field archery facility as the NFAA EastonYankton Archery Complex. It couldn’t have been done without thesupport of those who work for the city and county.

“The entrepreneurial spirit in Yankton is great. It is nice having thedifferent people help,” he explains. “When you get down the grassrootslevel, South Dakotans love to help each other. The thing I found mostinteresting about entrepreneurism in South Dakota is how many peopleresearch and use their minds to find things to keep them here becausethey love it so much.”

HISTORY PART OF GROWTHYankton was known as the territorial capital for several years during

the development of the Dakotas. Gurney Seeds, Yankton College, WNAX, the Human Services Center

were all part of the history that laid the groundwork for what has becomeknown as the “The River City.”

Mayor David Knoff statesthat Yankton was the hub ofdevelopment for all of theDakotas. Businesses likeWNAX and Gurney Seeds wasreal innovation, built upYankton and made Yankton abig player, says Knoff.

“Gurney has gone away,but the manufacturingindustry has built up well,” headds. “We have a strongmanufacturing base.”

Yankton has a unique andsuccessful mix of medical,manufacturing, tourism, andagricultural industry that

By Alan Van Ormer

42 November 2010

Stepping up to the plate

(continued on page 44)

Aerial view of Yankton, SD (Photo courtesy of Dakota Aerials)

Scott and Heidi Sandal, DataVator Mayor David Knoff

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make the community a hub in the region.Knoff adds that in Yankton there has

been a steady, sustained growth in all aspects of the economy. “Part of thatreason is that Yankton is keeping young people in the community becauseof its technical college and Mount Marty College, as well as keeping theschool numbers up,” he says.

Mike Dellinger, Executive Director, Yankton Office of EconomicDevelopment, does not think the community is reinventing the wheel.“There are higher wage opportunities, a skilled workforce and olderworkforce,” he states. “We are targeting high quality people and that is theoutcome of this workforce.”

DIVERSITY IS THE KEYCarmen Schramm, Director of Chamber Services, first moved to

Yankton 30 years ago and she has seen many things change. “We’ve grownin a lot of aspects,” she says. “I think we are poised to step up to that nextlevel in many areas of the business community.”

The strength of the community is its diversity, says Doug Russell,Yankton City Manager. “Yankton is still a retail hub in the region,” heexplains. “We just need to continue to enhance and identify the sectorsthat we are lacking in.”

The community is targeting certain sectors. “We are trying to targetcompanies that take advantage of the high quality that we find in ourworkforce,” Dellinger says.

This includes higher wage opportunities for a skilled workforce andtargeting those older members who have the skills to work part-time.

Avera Sacred Heart Hospital is the largest employer with more than1,000 people. The South Dakota Human Services Center employs morethan 620 people, while Kolberg-Pioneer, Inc, a construction machinemanufacturing company has morethan 500 employees. Hy-Vee and theYankton Public Schools each havemore than 400 employees, while SapaExtrusions, Inc., Walmart, and VishayDale Electronics, an electronicsmanufacturing company each top 300employees.

According to the Yankton Office ofEconomic Development, educationalservices, healthcare, and socialassistance saw the largest businessgrowth increasing more than 23percent between 2006 and 2008.Manufacturing increased more than

16 percent during that period and retail trade increased almost 13percent.

HEALTHCARE LARGE PART OF COMMUNITYIt is estimated that almost 3,000 people are working in medicine

in Yankton. This includes 140 doctors.Avera Sacred Heart Hospital has been associated with the community

for more than 113 years providing regional healthcare services for thoseliving in southeastern South Dakota and northeast Nebraska. There are331 beds: 144 acute beds and 187 long-term beds. More than 1,000employees provide healthcare to the community as well as outreach sites.

The geographic location and long history of medical education hasspurred growth in the hospital. Yankton is only one of three communitiesin the state that has a campus for medical school that provides a positivelearning environment, says Pam Rezac, Director, Avera Sacred HeartHospital.

“Providing healthcare is a very important mission,” Rezac explains.“All of us contribute to community leadership.”

Since 2000, the hospital added new facilities and programs. The firstcame in 2000 with a state-of-the-art facility overlooking the bluffs thatmeets elderly needs. The next year the hospital purchased a privatenursing home and turned it into a 75-bed facility. Then in 2002, came awellness center, 2004, a building addition, and 2006 the hospital doubledthe size of its former emergency department with a new one. In 2007, apavilion was constructed that became a center of campus housing formedical education. Now, a $10 million renovation project is in progressthat is redoing the main hospital surgical units, making it 50 percentlarger.

“Everything is still very challenging, but we are better able to manage,”Rezac states.

Chuck Aman, CEO, Yankton Medical Clinic, for the past 10 years, addsthat healthcare is important in Yankton stating that the clinic hospital is

44 November 2010

(continued from page 42)

(continued on page 46)

Mike Dellinger, Executive Director, YanktonOffice of Economic Development

Viewing the Missouri River in a balloon. (Photo courtesy of Dakota Aerials)

Carmen Schramm, Director of Chamber Services Gavins Point Dam (Photo courtesy of Lisa A. Scheve)

Prairie Business 45

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an integral part of the community. “We are all kind of the backbone of thecommunity and have been for many decades,” he says. “We’re able toattract people from the surrounding areas.”

In 1982, the two community clinics merged into one. There were atleast a dozen physicians, now that number has grown to at least 40physicians. The clinic has also added services over the year including a fulllaboratory facility, home healthcare, and specialty care like pulmonalogyand cardiology. There are more than 250 employees.

One challenge is recruiting physicians to the state, but the healthcarefacilities are able to use their uniqueness to draw those quality physicians.“Once they are here, we have a good chance of recruiting them,” Amansays.

What also helps is that a third of the third year medical students fromthe University of South Dakota spend their third year in an outpatientprogram at the clinic and hospital in Yankton. In addition, nursingstudents from the region also do internships at the healthcare facilities.

Of the current clinic radiology staff, an estimated 75 percent attendradiology programs in the area and did internships in Yankton. Inaddition, it is estimated that 50-60 percent of the physicians came fromthe USD Medical School.

Another challenge is healthcare reform and reimbursement.“There are no answers to where that is going,” Aman acknowledges.

MANUFACTURING STILL A HUBManufacturing has always been an important part of the growth of the

community. Recently, it has also been a struggle for many in thecommunity.

One of the unique manufacturing outfits in Yankton is The FreemanCompany, a manufacturer that started providing simple turned airplaneparts for general aviation during World War II, but has diversified into theturning, milling, and machining of complex assemblies for thecommercial aircraft markets.

In two years, the company could be generating as much as $12 millionin revenues. In 2008, it had $7.6million in revenue and in 2009 thatincreased to $8.6 million. The 42employees, working in a 30,000 squarefoot facility, manufacture an estimated20,000 individual parts each year.

“Our business is cyclical,” statesSeth Graves, General AccountingManager for the past four years. “Ittends not to trend with the rest of theeconomy.”

Graves explains that it is adynamic environment and there issomething different each day.“Most of our operators arenot college educated,” headds. “It takes 24 months to

get them up to speed.”The Freeman Company has an impact on the community. It includes

$2 million in salary each year, as well as an educated workforce that allowsthe machinists who work at the company to be able to find a job anywherein the community, Graves explains.

“We have to hire around the country because it is such a specializedproduct,” he adds. “It is a lot more exact work compared to other types ofmanufacturing companies.”

MISSOURI RIVER STILL IN THE MIXThe community is promoting programs and opportunities involving

the Missouri National Recreation River. In addition, Yankton is alsoconsidered a family vacation destination because of the three Game, Fishand Parks campgrounds, two U. S. Army Corps of Engineerscampgrounds, and 11 privately owned campgrounds that provide morethan 1,100 campsites.

Yankton is known for Lewis and Clark Lake and great camping. Visitorattendance averages between 1.4 million and 1.6 million to the Lewis andClark Recreation Area each year, trailing only Mount Rushmore andCuster State Park for largest attendance in the state.

“There are a lot of repeat customers who plan annual trips to Yanktoneach year,” explains Lisa Scheve, Director, Yankton Convention andVisitors Bureau. “With great backdrops, like Lewis and Clark Lake orYankton’s Missouri River, the Convention and Visitors Bureau has seen anincrease in outdoor weddings or destination weddings over the past threeyears.”

The future looks bright for recreation in Yankton. “Not just archery,but sports in general, is something Yankton will continue to expandupon,” Scheve states. “With the coordination of multiple entities Yanktonwill be able to utilize new facilities, for the archery center for additionalsporting events, like soccer. The Lewis and Clark Recreation Area is goingto add additional camping sites to their main State Park, due to the highdemand for camping in the area.”

PROVIDING A CREATIVE BUSINESS ENVIRONMENTThen there are the unique sectors like archery and data centers.DWG went live in July with its first building and is just starting to get

companies into the data center. One of the unique elements of the datacenter is that the clients can be billed for three items: space, power, andbandwidth.

The building has 5,000 square fit that will easily add another 5,000 feetand another until it reaches up to 45,000 square feet. Each will have itsown power supply.

“We want to build a data center that can use South Dakota power,”Sandal says. “We made a functional data center and proved that it can beoperational and exist in Yankton.”

46 November 2010

(continued from page 44)

Lisa A. Scheve, Director, YanktonConvention and Visitors Bureau

Mount Marty College students share a cup of coffee downtown. (Photo courtesy of Lisa A. Scheve)

Sail boating on the water. (Photo courtesy of Lisa A. Scheve)

Kayaking on the river. (Photo courtesy of Lisa A. Scheve)

Prairie Business 47

Sandal admits there is a challenge in finding the right design model foreach client’s request: a balance of power, cooling, and space. Consequently,DataVator has taken off in its ability to offer power metering and capacityplanning for clients not yet in the data center space, as far away as Atlanta,GA.

Cull has also seen his unique archery business take off. There is a 10,000 square foot Olympic indoor archery range that can

also be used for other events. There is another 5,000 square footheadquarters building with two training classrooms of 100 plus seatingand 75 plus seating. There are three offices in a 1,000 square foot area forstartup businesses. Currently, there is one company in the incubator.

His hope is all of this will allow Yankton to be a hub for archery in theregion.

The opportunity started in 2005 when Yankton hosted a successfulnational archery tournament. An estimated 600 competitors, as well as400 support staff, came to Yankton for the tournament. The economicimpact showed up immediately.

“It was six days of competition, one day to practice, and one to twodays on each side of it,” Cull says.

Yankton was the host again in 2006. “In the history of organizationnever had national tournaments back to back in one community,” Cullcontinues. That started talk about moving the national headquarters toYankton and involved one of the largest cooperative efforts Cull says hehad ever seen.

“City and county subgroups worked together to give us 40 acres ofground in city of Yankton,” he says. “Having a location centrally locatedwas a big thing.”

After the national headquarters was moved to Yankton, then came thepursuit of becoming an Olympic training center.

A reason the facility was built in Yankton is because archerytournaments are becoming more frequent. “It has brought thecommunity closer together,” Cull states. “This is unique. People tookownership in this. It impacted everybody.”

Archers are on the ready to fire arrows. (Photo courtesy of Lisa A. Scheve)

Editor Alan Van Ormer will report on these thriving metropolitans in upcoming issues.

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EDITORS NOTE: Over the next three months, Prairie Business magazine will be

talking to a Public Service Commissioner from Minnesota, NorthDakota, and South Dakota to get their thoughts on the energy sector.North Dakota Public Service Commission Chairman Kevin Cramerdiscusses what is happening in the state.

What are the responsibilities of the Public Services Commission:The North Dakota Public Service Commission has varying degrees ofjurisdiction over electric and natural gas utilities,telecommunications companies, weights and measures, grainelevators, auctioneers, reclamation of mined lands, the siting ofenergy plants and electric and natural gas transmission facilities, and,to a lesser degree, railroads. The Commission does not havejurisdiction over the rates of rural electric or telephone cooperativesor small telephone companies.

What is the state’s energy program and what are you hoping toaccomplish: The state’s energy program for development is a policyset by the Empower Commission which is appointed by the governor.The Public Service Commission is a regulatory body whoseresponsibility is to see to it that energy remains affordable and reliableto retail customers and that the build out of energy production andtransmission is done in a manner that produces minimal adverseimpacts on cultural and natural resources and people. As a majorenergy producing and exporting state, it is critical that we create aregulatory framework and climate that is conducive to investmentand development as well as to maintaining a healthy, cleanenvironment.

Where are you at? Where do you want to be: North Dakota rankshigh in nearly every category of energy development as well as everycategory of environmental protection. We are first in ligniteproduction, fourth in oil production, sixth in electricity exports, 10thin wind energy production. We meet all ambient air quality standardsas prescribed by the EPA and many of our cities receive an A ratingfrom the American Lung Association. Our reclaimed coal lands meetor exceed productivity levels prior to mining. North Dakota hasbecome the state of preference for energy investment resulting in thefasting growing personal income and lowest unemployment rate inthe nation. We are the envy of the world and are positioned tocontinue this rapid yet prudent pace of developing our rich naturalresources to the benefit of our people and our nation.

What are some challenges? How have you responded to each ofthese challenges:America’s national security and America’s economicsecurity are tied directly to America’s energy security. North Dakotahas shown the nation how to develop our rich energy resources in aresponsible manner that will help reduce our dependency on theMiddle East and other nations. I would like to see continuedresponsible development while finding ways to perpetuate therevenue stream being enjoyed by our government. We should workhard to lock up much more of the largess generated by energydevelopment going into state coffers and resist the temptation tospend it. By growing government at our current pace, we virtuallyguarantee we will one day be dependent on a revenue stream that nolonger exists. Policy makers must exercise the spending disciplinerequired of businesses and families. Let’s use this moment in time tolower tax rates and save money while growing the economy. Withmore attention paid to growing the economy and less on growing thegovernment, we will find the need for more government will actuallydiminish.

What does the future hold for energy: The greatest threat toenergy development is the overreach of the federal government, andI see it every day in my work. We are seeing non-elected bureaucratsimposing their anti-business bias on regulations that have beenrejected by Congress and the states. The current administration inWashington seems determined to shut down coal and oil and gasproduction. They use the Environmental Protection Agency, theBureau of Land Management, the Department of the Interior andother agencies to circumvent the will of Congress. As an electedofficial, charged with overseeing the orderly development of NorthDakota’s energy sector, I stand up to this intrusion on my authorityand on our state’s sovereignty with great passion. Nobody loves NorthDakota land and air more than North Dakotans.

What impact will energy have on businesses: Energy’s impact onbusiness is two-fold. First of all, energy costs are one of the topconcerns of business today. In North Dakota, we have the lowest retailelectricity rates in the nation. This goes straight to the bottom line ofour personal and business budgets and improves ourcompetitiveness. Energy development creates thousands of highpaying jobs and countless opportunities for business spin offs.Whether servicing the energy sector directly, or providing retailservices to the employees, North Dakota entrepreneurs have moreopportunity than ever.

Energy developmentNorth Dakota Ranks high in most energy development categories

48 Energy

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By Alan Van Ormer

50 Energy

Ethanol blender pumps are somewhat new in the three-state region. However, Minnesota, North Dakota, andSouth Dakota are doing what they can to make blender pumps part of the landscape.“There is so much emphasis in today’s society on green living and decreasing our dependence on foreign oil,”

says Andrea Holl Pfennig, Program Administrator, Energy Outreach and Special Programs for the state of NorthDakota. “The increased use of renewable fuels is a trend that will only continue. Hopefully, this program will helpretailers in the State have a head start.”

Hunter Roberts, South Dakota’s Energy Policy Director, states that ethanol blender pumps are still relativelynew, so a large portion of the public needs to be educated on them. “Ethanol blender pumps give retail fuel stationsthe opportunity and the flexibility to serve several different types of customers,” he says. “Whether the customerswant to utilize E85, a mid-level ethanol blend such as E30, the standard E10 blend, or just regular unleaded, ethanolblender pumps allow them to serve all of those different types of customers.”

Nicole Garrison-Sprenger, Communications Director, Minnesota Department of Commerce, states that fuellocations with e-blenders can offer a greater variety of fuels.

Minnesota has an estimated 60 ethanol blender pumps across the state mainly located in greater Minnesota atco-op facilities, says Garrison-Sprenger. It is estimated that there are 30 blender pumps installed across South

Dakota. In North Dakota, the State’s Energy Outreach and Special Programs have receivedrequests for 181 pumps and have provided reimbursements for 68 pumps.North Dakota’s program’s purpose is to increase biofuels usage. Pfennig says it is designed to be a ‘win’ in several ways: North Dakota growers benefit byincreased demand in their crops; ethanol plants have an increased demand as well, whichhelps provide good paying jobs to rural areas; retailers receive assistance in purchasing newpumps that are equipped to deal with the new ‘green’ focus; and blender pumps allow theconsumer a choice in which fuel to put in flex fuel vehicles.

She adds that E85 sales in North Dakota have more than doubled when comparingthe time period of January through August 2009 to January through August 2010.

“The increased sales of blender pumps have helped pump money into theeconomy,” Pfennig says. “While we help defray the cost of the pump and associatedhardware, there are other costs such as labor that the retailer is responsible for. It canbe a significant investment on their part, which can be a drawback. The advantage ofthis is more money in the economy.”

In South Dakota, Roberts explains that the state’s program has allowed retailfueling stations to invest in new infrastructure and are now providing customerswith more options at the pump. “Many of the stations that have already installedthe pumps have told me that E30 has been selling really well and that theircustomers have given positive feedback on the blender pumps,” he adds.

Roberts believes more ethanol blender pumps will be part of the landscapein the future. “I think we are moving into an era when transportation fuelcustomers are going to be more informed on where their fuel comes fromand are going to demand more options at the pump, choices that blenderpumps can offer.”

Garrison-Sprenger agrees that there will be an increase of e-blendersinstalled in greater Minnesota. “Metro-area stations may also take aninterest in installing e-blenders,” she explains. “We have 21 ethanolplants in Minnesota. We are also a state of corn producers. Sellingblended fuel supports both of these industries.”

Blender pumps making transition

By Alan Van Ormer

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52 Energy

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Consulting company analyzes oil in Bakken

Kathleen Neset visited offices around the country and knocked ondoors to jump start her consulting business in western NorthDakota. Now, companies are calling Neset Consulting Services to

hire her mudloggers and geologists to evaluate the drill riggingoperations in the Bakken.

Currently, Neset has 60 crews working throughout the Bakken. Acrew consists of a mudlogger and a geologist who handle 24 hour shifts.The geologist operates a 12-hour day shift and the muddloggercontinues the duties during the evening.

The crews evaluate the operations while the well is drilling byrecording the drill rate, the drill cutting (every 30 feet of drilling a rocksample is collected and evaluated,) and evaluate the gas that is beingliberated out of the formation during drilling operations.

“The oil has been established with the amount of oil that isrecoverable, the amount of leases, and the amount of wells to developthe play,” Neset says. “Those things are coming together so that there isa need for well site geologists.”

Neset, who has a degree in geology from Brown University, moved toNorth Dakota in 1979 and has not left. She is involved in geologybecause she enjoys the independence. Her goal when she started in 1979was to be the best in her field. “I like the independent living,” she says. “Ilike the environment.”

She started her own consulting group, starting by doing all the workherself out of her house near Tioga, ND. Then it was a building in Tioga,followed by a doublewide trailer, and now her work has increased somuch that she has had to hire other employees and is looking at a newbuilding to expand her gas detection division and research anddevelopment group.

The company has gone through the boom and bust cycles in theBakken since 1979. However, since 2000, Neset has seen oil productiontake off and she has been busy. She has nationwide contracts with oil

By Alan Van Ormer

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companies and also hires out to subcontractors. Her main business is inthe Bakken where she has crews out in Saskatchewan, Canada, easternMontana, South Dakota, Wyoming, as well as western North Dakota.Today, her business has grown to 135 employees.

Neset says that everyone knew there was oil in the Bakken, but not towhat extent, and not until a study was released in 2008 that showed justhow much oil could be in the area. “The technology is improvingconstantly. We are getting better at drawing horizontal wells. We aregetting better at fracture simulating,” she says. “We didn’t miss it.Technology caught up to it.”

The changes in oil drilling have been driven by technology. The samestyle of rigs in 1979 are still around, but now there are walking rigs whereit drills down and then moves 30 feet and drills down once more.

In addition, maybe the largest change has been communication. “Wecommunicate the data from the well site to the oil company’s office inanother city,” says Neset.

Then there is also more math involved in calculating where to put thedrill.

There are also challenges in the Bakken for Neset’s consultingcompany. Is it going to last? How do you plan ahead? How do you cashflow a business that is growing so quickly? How does the company planfor the future and take those risks?

Neset admits that the oil play has not plateaued yet. “I see itcontinuing to build,” she explains. “More rigs are coming in. Permittingcontinues. I want to continue to provide stronger service.”

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Dan Griffin checks on Unit 234 for American Oil and Gas. (Photo courtesy of Neset Consulting)

54 Energy

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Finding efficient ways to liveBy Alan Van Ormer

In a 70-acre wooded area in Pine River, MN, employees of the HuntUtilities Group are finding ways to live efficiently using what isaround them.“It started out as energy conservation, and then we realized it was

resilient living,” Paul Hunt says. “If energy isn’t available you would dojust fine anyway.”

HUG chose the location because of its walking distance fromdowntown allowing the employees to cut down on transportation. It alsopermits them to continue researching on finding resilient ways of living.

“We are looking at all changes in climate and economy,” Huntexplains. “There is a potential for the perfect storm. We are finding waysto make housing communities much more stable as that storm blowsthrough. With or without the storm it is a healthy way to live.”

HUG’s first goal was to construct a house that would heat and coolitself with little or no fossil fuels, as well as providing nutrients to feed theoccupants. The first five years focused on the housing side and learninghow to better construct buildings.

Then the company acquired a windmill to learn more about it. Otherprograms followed.

“One key element of the entire campus is that it is a destination pointthat people can see things that are functioning and working,” says RobertMcLean, COO/GM, Hunt Utilities Group. “We do hands-on experience,as well as see how things operate efficiently.”

McLean adds that so many homes are inefficient and consumers arepaying more to heat their homes. “If you are able to use designs thatdecrease the amount of heat used in the first place and then optimize thefree heat you get from the sun you are really helping narrow the gap on

the fuel poverty; making comfortable living much more affordable,” heexplains.

HUG is a for-profit group that is researching methods to provideaffordable housing that can heat and cool itself without fossil fuels,process its water and waste, as well as help feed the occupants.

Then on the same 70 acre campus there is the Happy Dancing Turtle,a non-profit organization dedicated to promoting sustainable living.HDT offers hands-on classes, special events, tours of the HUG campus,collaborations with community organizations, and research andexperimentation opportunities.

In addition, RREAL (Rural Renewable Energy Alliance) is a non-profit organization dedicated to making solar power accessible to allincome levels. Its flagship program, SolarAssistance, installs solar heatingsystems in partnership with qualifying low-income families. There is nocost to the qualified participants the homeowner.

RREAL has manufactured the SRCC certified Solar Power Furnace, abuilding-integrated solar air heating panel for residential andcommercial installations. In addition, RREAL offers solar electric, solarwater heating, and solar space heating contracting services to theresidential and commercial sector. Also, the non-profit organizationprovides hands-on trainings and seminars in the solar energy field.

McLean states that having non-profit and profit businesses are highlycomplementary in a campus vision. “There is a lot of synergy happeningin this field. On the campus, one of the advantages of having a for-profitis that it can concentrate on research while the nonprofit focuses onoutreach and education. This collaboration allows us to create ademonstration site and with that demonstration site provide people an

Hunt Utilities Group has a complex in Pine River, MN.

Energy 55

ENER

GYPRAIRIE BUSINESS

opportunity to come in and learn bydoing or by observing what we aredoing,” McLean explains. “We stillhave the opportunity on thebusiness side to continue our workon research; developing newdesigns or new technologies.”

The company does facechallenges.

The main challenge isgenerating revenue. The Huntshad some revenue from a recent businesssale. In addition, HUG is participating withother organizations to develop researchgrants for energy technology solutions. Athird source is selling homes.

“In the long run our expectationsare to be a profitable researchcompany,” Hunt says.

Hunt says with the price ofenergy climbing, HUG islooking at every type of energysource and it is important tokeep that going.

“We are developing aniche that doesn’t needan outside source ofenergy, but uses anindigenous source ofenergy as much aspossible,” he says.

McLean agrees.“We’re not creating anisolationist mind set, butmore recognizing the lessyou are dependent on theoutside resource the betteroff you will be,” heconcludes.

Ben Kechlin, Rural Renewable E

nergy Alliance, bends

a piece that will be used for a so

lar heating system.

An energy efficient two-story home.

56 November 2010 56 January 2010

Tom Schabel, president and CEO ofAlexandria Extrusion Company inAlexandria, MN, didn’t have to think

much about joining the Enterprise MinnesotaBoard of Directors because of theorganization’s significant help tomanufacturers in out-state Minnesota.

“Enterprise Minnesota has given so muchto us, I thought I should reciprocate,” Schabelstates.

Enterprise Minnesota works withmanufacturing companies to improveefficiencies, contain costs, and achieve growthin sales revenue and earnings.

Schabel will be on the board of directors forthree years.

Schabel moved to Alexandria in 1987 andhas been CEO of the manufacturing companythat manufactures products to a customer’ssatisfaction. His company ships around thecountry and around the world. However, amajority of the product is a domestic product.

Schabel states that manufacturing wasabsolutely fantastic until November 2008.“From then until January 2010 it has beenhorrible at least from our business standpoint.Generally speaking, since the first quarter of2010 we have seen nice improvements inbusiness level and activity,” heexplains. “We’re starting to get back tothe point moving forward looking andplanning for the future, rather thanmaintaining from a month to monthstandpoint.

Schabel took time in September todo a phone interview with PrairieBusiness magazine. The following areexcerpts from the interview:

EXPLAIN WHAT ENTERPRISEMINNESOTA DOES:

The main focus is helpingmanufacturing companies inMinnesota. They do this bynetworking, sharing best practices,

and consulting services. Minnesota Enterpriseis Minnesota’s representative forManufacturing Extension Partnership (MEP).It also helps Minnesota manufactures bring adynamic set skills abilities and services that wecan access. They have specialists locatedaround the state who have a strongmanufacturing background that canimmediately connect the dots.

WHAT ARE THE CHALLENGES INMANUFACTURING IN MINNESOTA:

One challenge is competing with a globalsupply chain. We need to find ways to operatein a lean environment, reduce costs, and beresponsive to customers to give those reasonsto look at the total value.

Another challenge is the escalation of rawmaterial costs. The issue is that themanufacturing companies are still operating inan economy that has excess manufacturingcapacity. Due to excess capacity,manufacturing companies find it difficult topass on increased costs to their customers.

In addition, we have to educate our highschool and college systems on the availabilityof good jobs in the manufacturing sector.

A fourth challenge involves dealing with

the escalation of raw material costs and itsrelationship to operating a manufacturingcompany. With this challenge, how do we putthe investment back into people andequipment? How do we maneuver throughthis?

HOW CAN ENTERPRISEMINNESOTA HELP WITHTHESE CHALLENGES:

They have the skills and expertise to comeinto an organization, do an evaluation, andhelp that organization formulate initiatives toreduce costs. If we do those things we willreduce those margins.

The challenge for Enterprise Minnesota isdetermining their customer base and how theysupply them. Minnesota has a lot of territoryto cover. We have limited resources, so thechallenge is how they provide service to all of

their customers effectively.

WHERE DO YOU SEEMINNESOTA GOING IN THEFUTURE:

I think the future can be very brightfor Minnesota manufacturing. We haveto continue to invest and utilize newtechnology that gives us a responsebetter or capability more advancedthan our competition. There needs tobe a significant amount of investmentin equipment, training and people.Minnesota has the reputation for doingthat.

Questions are will we have theresources to do that in slow times.

Q&A:Manufacturingchallenge in Minnesota

TOM SCHABEL

By Alan Van OrmerTHE SCHABEL FILEName: Tom SchabelTitle: President and CEO, Company: Alexandria Extrusion CompanyAge: 55Hometown: Fond Du Lac, WIYears with the company: 33 (23 in Alexandria, MN)

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58 January 2010

In the course of our engagements, we haveseen examples of good and bad pricingpolicies. The following is a list of 10 of the

most common mistakes companies makewhen pricing their products and services.

COMPANIES BASE PRICESON THEIR COSTS, NOTCUSTOMERS’ PERCEPTIONSOF VALUE.

Prices based on costs invariably lead to oneof the following two scenarios: (1) if the priceis higher than the customers’ perceived valuethe cost of sales goes up, discounting increases,sales cycles are prolonged and profits suffer;(2) if the price is lower, sales are brisk, butcompanies are leaving money on the table, andtherefore are not maximizing their profit.

Results: Higher cost, lower revenue, lowerprofits.

COMPANIES BASE THEIRPRICES ON “THEMARKETPLACE.”

By resorting to “marketplace pricing,”companies accept the commoditization oftheir product or service. Instead, managementteams must find ways to differentiate theirproducts or services so as to create additionalvalue for specific market segments.

Results: Products sold on price alone leadsto lower profits.

COMPANIES ATTEMPT TOACHIEVE THE SAME PROFITMARGIN ACROSS DIFFERENTPRODUCT LINES.

Some financial strategies support a drivefor uniformity, and companies try to achieveidentical profit margins for disparate product

lines. For any single product, profit isoptimized when the price reflects thecustomer’s willingness to pay.

Results: Companies areunable to optimize its pricing,leading to lower profits

COMPANIES FAILTO SEGMENT THEIRCUSTOMERS.

Customer segments are differentiated bythe customers’ different requirements for yourproduct. Your price realization strategy shouldinclude options that tailor your product,packaging, delivery options, marketingmessage and your pricing structure toparticular customer segments, in order tocapture the additional value created for thesesegments.

Results: Companies fail to maximize itsmarket potential leading to lower revenue andprofits.

COMPANIES HOLD PRICESAT THE SAME LEVEL FORTOO LONG.

Most companies fear the uproar of a pricechange and put it off as long as possible. Theprocess of keeping customers informed ofprice changes can, in reality, be a component ofgood customer service.

Results: Companies endures ever-reducedprofits, and when they make a price change, itis large and they may lose their customers.Each is leading to lower revenues and lowerprofits.

COMPANIES OFTENINCENTIVIZE THEIRSALESPEOPLE ON REVENUEGENERATED, RATHER THANON PROFITS.

Volume-based sales incentives create adrain on profits when salespeople arecompensated to push volume at the lowestpossible price. Companies need to redefine thesalesperson’s “job” as maximizing profitability,and incentivize profitability, while alsoproviding the salespeople the necessary “tools”to do so.

Results: Higher sales volume on lower cost

products and overall lower profits.

COMPANIES CHANGEPRICES WITHOUTFORECASTINGCOMPETITORS’ REACTIONS.

Any change in your prices will cause areaction by your competitors. Smartcompanies know enough about theircompetitors to forecast their reactions, andprepare for them. This avoids costly price warsthat can destroy the profitability of an entireindustry.

Results: Danger of costly non-profitableprice wars

COMPANIES SPENDINSUFFICIENT RESOURCESMANAGING THEIR PRICINGPRACTICES.

Cost, sales volume and price are the threebasic variables that drive profit. Manycompanies, however, only utilize simplisticprice procedures.

Results: Lower revenue and lower profits.

COMPANIES FAIL TOESTABLISH INTERNALPROCEDURES TO OPTIMIZEPRICES.

In some companies, the hastily-called“price meeting” has become a regularoccurrence—a last-minute meeting to set thefinal price for a new product or service. Theattendees are often unprepared, and research islimited to a few salespeople’s anecdotes,perhaps a competitor’s last year’s price list, anda financial officer’s careful calculation of theproduct’s cost structure across a variety ofassumptions.

Results: Lower revenue and lower profits.

COMPANIES SPEND MOSTOF THEIR TIME SERVINGTHEIR LEAST PROFITABLECUSTOMERS.

Most companies do not even know who theirmost profitable customers are. Such failure alsodeprives the company of the loyalty that moreattention and better service would provide.

Results: Lower revenue and lower profits.

1

2

3

5

6

7

10 mistakes for pricing services & products

By Dennis Brown and Per Sjofors

4

8

9

10

58 November 2010

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Prairie Business 59

If you drive for a living or employ drivers, I invite you to take a lookat why it’s important to comply with Federal Motor Carrier SafetyAdministration (FMCSA) regulations.

As drivers, it’s not uncommon to hide compliance violations bymisrepresenting information on required paperwork. That may haveworked in the past, but today, the risks outweigh the rewards.

The first risk of exposure comes during roadside inspections. Alocal inspector told me he now confirms driver information, not onlywith the paperwork handed him during the inspection, but with phonecalls to verify the driver’s story. If the driver says they have been off-dutyfor the last seven days, the inspector will call the office and ask. If thedriver says he or she took a 10-hour break and didn’t load or startworking until 6 a.m., the inspector will call both to confirm.

The bigger risk is the compliance review—the dreaded audit ofcompany records. In 2008, the FMCSA changed procedures forverifying the accuracy of records and logs. Nowadays, matching fuelrecords is the least of our worries. The new inspection proceduresinclude verifying 30 days of logs for each selected driver, againstmultiple supporting documents, such as trip records, bill of ladings,invoices, and other receipts.

Previously, drivers sought out receipts without the purchase timesrecorded. Now, the FMCSA has a separate violation for “notmaintaining supporting documents.” Without thoroughdocumentation, they call fuel stop cashiers and ask what type ofdocumentation is given when a driver pays for fuel. They may even stopin and buy some fuel themselves.

It’s also becoming common for inspectors to call multiple driversand management personnel during an audit to see if their stories matchup.

Rather than trying to stay one step ahead of inspectors, I suggestdrivers learn to win the game by being compliant and profitable at thesame time. It can be done. Cami Gilbertson is the president of Compliance and Safety Services,

Inc. She can be reached at cami@complianceandsafetyservice.com

VIEWPOINTCAMI GILBERTSON

False driving logs?

Who’sfoolingwho?

On October 13, the Environmental Protection Agency issued apartial approval of a request that gasoline with 15% ethanol - E15 - beallowed for use in vehicles currently on the road in the United States.EPA gave a green light to cars in model years 2007 and newer, and saidit would rule on earlier models when testing on those vehicles iscompleted. They will not rule on anything made in 2000 or earlier,having performed no tests on any vehicles of that vintage.

The headlines the following day were predictable. Ethanolsupporters were guardedly optimistic. The anti-ethanol folks who saidthey wanted the decision based on science said almost two years ofscience was not sufficient, even as they continued to offer no science tocontradict EPA and DOE data. Food manufacturers predicted priceswill go up, and made plans to raise them to prove they are correct, justas they did two years ago. Small engine people said people woulddamage their weed whackers because they will use E15 even if it isn’tapproved. Most of the anti-ethanol articles talked about the decision asthough it were a mandate. It is not. In reality, ethanol’s opponentsknow that E15 is likely to be less expensive, and consumers will want touse more of it.

The phrase “first step” appeared in several pro-ethanol releases, withdiffering opinion on how big that step is. If nothing else, EPA’s decisionmade E15 “real.” In time, that will create new demand and improve thefinancial health of existing ethanol plants. There are many regulatoryhurdles that folks in the ethanol industry have been working on formany months. Those hurdles will have to be cleared before E15 can besold at gas stations. Some regulators were hesitant to even talk aboutchanges, because “there is no such thing as E15.” Now there is.

For our part, just as we did for the last 10 years as E10 was adoptednation-wide, ACE’s Market Development Program will be talking topetroleum marketers about what E15 is and isn’t, and what they needto know to sell the new fuel. Ultimately, the market will embrace E15,mainly because consumers will demand it, and ACE will be there tohelp stations add this new fuel.Ron Lamberty directs market development efforts, working with

petroleum marketers to facilitate the use of ethanol nationwide for theAmerican Coalition for Ethanol. He can be reached atrvlamberty@ethanol.org.

RON LAMBERTY

Ethanolsupporters‘guardedlyoptimistic”about EPAdecision

60 November 2010

Prairie Business 61

Bring trust andloyalty back to the workplace …

really!

Once upon a time in corporate America people actually likedgoing to work every day. They enjoyed the camaraderie of theirco-workers, and they truly believed their work was making a

difference, not only in the organization, but also in the world. Today, this past reality is nothing more than a fairy tale, and both

employees and employers know it. According to a Wall Street Journal article, 70 percent of people don’t

like their job. In addition, employees at all levels feel there is no trust orloyalty in their company. Many people feel as though they must ‘watchtheir back’ at all times, resulting in high turnover, high stress, anddeclining productivity.

If you want to retain your key talent, increase customer satisfaction,and boost your company’s bottom line, then you need to focus on re-establishing trust and loyalty in your organization. Why? Because studieshave shown that there is a direct and positive correlation betweenemployee satisfaction and customer satisfaction.

Additionally, happy employees are stable employees, meaning theywon’t jump ship and go to work for your competitor after you’ve spentall that time and money training them.

The question then remains, ‘How do you build trust in loyalty in aneconomic environment that is very different from those fairy tale daysand that has slimmer margins and greater competition?’ The followingguidelines will help you build better communications, thus increasingboth trust and loyalty.

SCHEDULE ‘FACE TIME’ WITH EACH EMPLOYEEMany managers and business owners would rather send an email or

leave a voice mail than actually talk to their staff face-to-face. But realizethat your employees need real time communication from you, and theyneed to actually talk to you in person.

This is important, because many employees today feel they aren’tcontributing and using their real talents. The bottom line is that if youand your management team don’t help your employees understandwhere the organization is going, then your employees will never feelthey’re working in an environment of trust and loyalty.

CHOOSE APPROPRIATE CHANNELSIn all companies you have different levels and various types of

employees. In order to ensure that all employees not only get your message but

also understand it, you have to first determine which channel to use tocommunicate with each group.

You will likely need to communicate to various departments indifferent ways to make sure everyone is on the same page and aware ofthe company’s commitment to building trust and loyalty.

OFFER ACKNOWLEDGMENT AND PRAISE When it comes to building trust and loyalty, some companies believe

the best approach is to offer new things, such as added health benefits,on-site daycare, in-office massages after a stressful quarter, etc.

Realize that what people really want is to be acknowledged for a jobwell done. People want their opinions to matter. They want to feel valued.Acknowledgement and praise are the best ways to help people realizehow important they are to the organization, and this approach goesmuch further than any dollar amount ever could.

BE HONESTEvery company and industry faces bad news and challenging times.

Employees know this and expect it. So when something negative ishappening that affects your company, be upfront about it.

Even if you’re sugar coating information in an attempt to protectyour employees, they’ll still feel that they’re being lied to. On top of that,the grapevine has a tendency to twist facts even more, making people feelthat the company is being deceitful. To avoid this, always tell the truth,even if the truth hurts. Your employees will appreciate your honesty,despite the bad news, and they’ll actually trust you more.

WALK THE TALKIf you want your employees to display trust and loyalty, then you and

your managers need to do the same. True leaders who inspire trust and loyalty keep their word. And since

employees see their direct supervisor more often than the executive team,if the manager doesn’t trust the company or display loyalty, then thatperson’s staff won’t be trusting or loyal either. So make sure all yourmanagers and executives display the behavior they want the staff toemulate. Your people are watching you, and they do notice!

A HAPPY ENDING FOR ALLWhile the fairy tales days of business may be over, you can still have a

company filled with both trusting and loyal employees. In fact, the moreyou communicate with people, acknowledge them, and be truthful withthem, the more trusting and loyal they’ll be.

Remember, your job as a manager or business owner is to ignite thepassion of your people. You can’t do that without communication. Sotake an honest interest in the talents your employees bring to the tableand be a role model of the behavior and company culture you desire.Only then will you have employees who want to be with you for the longhaul, and who positively impact your company’s bottom line.

(Roger Hall is a founding partner of Porcupine Communications. Withmore than 30 years of experience in marketing and communications, he canbe reached at www.PorcupineCommunications.com.)

By Roger Hall

62 November 2010

BY THE NUMBERSEMPLOYMENT (NOT SEASONALLY ADJUSTED)

UNEMPLOYMENT RATE EMPLOYMENT

Aug. 2010 Aug. 2009 Aug. 2010 Aug. 2009North Dakota 3.5% 4.2% 363,623 357,946Fargo MSA 3.7 4.1 117,220 116,407Bismarck MSA 3.1 3.3 62,835 61,573Grand Forks MSA 4.2 5.0 52,617 51,566Minot MiSA 2.4 3.3 34,340 33,119Dickinson MiSA 2.4 3.2 14,953 14,764Williston MiSA 2.0 2.3 13,738 14,103Jamestown MiSA 3.2 3.6 12,837 11,973Wahpeton MiSA 4.3 5.1 11,513 11,446South Dakota 4.4 4.6 431,985 431,445 Sioux Falls MSA 4.4 4.7 122,535 122,060Rapid City MSA 4.2 4.1 67,420 67,335Aberdeen MiSA 3.1 3.1 22,560 22,540 Brookings MiSA 4.2 3.8 17,480 17,905 Watertown MiSA 3.8 5.6 18,435 18,520 Spearfish MiSA 4.1 3.8 13,430 13,420 Mitchell MiSA 3.6 4.1 12,830 12,830Pierre MiSA 2.8 2.6 12,390 12,310 Yankton MiSA 4.2 5.0 11,375 11,430 Huron MiSA 3.3 3.1 9,570 9,630 Vermillion MiSA 3.9 4.3 6,890 7,015

Minnesota 6.9 7.8 2,783,441 2,755,717Minneapolis-St. Paul MSA 7.0 7.9 1,753,684 1,721,137Duluth-Superior MSA 7.5 8.8 137,408 134,661St. Cloud MSA 6.7 7.4 102,383 100,694Rochester MSA 5.6 6.3 103,230 100,577Mankato-N. Mankato MSA 6.1 6.8 54,350 53,559 Brainerd MiSA 8.2 8.4 43,957 41,773Fairbault-Northfield MiSA 7.9 8.5 31,069 30,775Winona MiSA 7.2 8.0 25,211 27,157Fergus Falls MiSA 6.3 7.1 28,329 28,568 Red Wing MiSA 6.8 7.5 24,074 24,116Willmar MiSA 6.0 6.5 22,632 22,493Austin MiSA 5.8 6.0 19,785 20,212Bemidji MiSA 8.1 8.3 19,538 20,080Alexandria MiSA 5.8 6.1 19,969 20,390 Hutchinson MiSA 8.8 9.7 17,272 18,677Owatonna MiSA 7.6 8.7 18.370 19,272Albert Lea MiSA 7.8 8.5 14,772 15,260Marshall MiSA 5.5 5.7 13,534 3,954New Ulm MiSA 6.0 6.5 14,152 14,129Worthington MiSA 5.0 4.8 11,614 11,426Fairmont MiSA 7.1 8.3 10,549 10,795MSA — 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 BBL/month

July 2010 $67.35 9,952,296June 2010 $63.14 9,434,312May 2010 $60.10 9,189,084April 2010 $71.26 8,531,666March 2010 $71.20 8,599,506

Drilling Producing Rig Permits Wells Count

July 2010 145 5,541 135June 2010 128 4,977 125May 2010 102 4,893 114April 2010 106 4,810 107March 2010 120 4,736 102February 2010 94 4,655 93

Source: North Dakota Office of Management and Budget

AIRLINE BOARDINGS

Minneapolis-St. Paul 1,580,442 1.8% Fargo 31,534 - 4.8% Sioux Falls 30,443 6.4% Rapid City 35,549 6.4% Bismarck 16,311 9.3% Duluth 16,671 22.3%Grand Forks 10,351 26.4% Minot 8,798 44.0%

Source: Bank of Canada Data provided by Kingsbury Applied Economics

9/24/09 8/24/10 9/24/10

U.S. to Canadian Dollar- $1.0869 or $0.9200 $1.0563 or $0.9467 $1.0263 or $0.9744

U.S. to Euro $0.6805 or $1.4695 $0.7889 or $1.2675 $7421 or $1.3476

U.S. to Chinese Yuan $6.8273 or $0.1465 $6.7973 or $0.1471 $6.7035 or $0.1492

U.S. to Japanese Yen $91.183 or $0.0109 $84.167 or $0.0119 $84.2611 or $0.0119

U.S. to Mexican Peso $13.462 or $0.0743 $12.920 or $0.0774 $12.551 or $0.0800

AUGUST 2010 % CHANGE/AUGUST 2009

GAS PRODUCTION

Source: North Dakota Office of Management and Budget

JULY 2010 JUNE 2010 MAY 2010 APRIL 2010 MARCH 2010 FEBRUARY 2010JANUARY 2010

MCF/MONTH9,931,000 9,097,331 9,277,532 8,477,116 8,606,391 7,895,346 7,894,018

MCF/DAY320,371 303,244 299,275 282,571 277,626 281,977 254,686