mn vally july2015
DESCRIPTION
MN Valley Business JournalTRANSCRIPT
Also in this issue• Front Street Tattoo & Voss Fine Art Gallery
• Mankato Acupuncture
• PresenceMaker
Bob Scott, left, and Ben Roach of M&M Signs recently installed signs on the new Profinium Place tower in downtown Mankato. Photo by Pat Christman
The Free PressMEDIA
B-2-B firms vital, often under the radar
Businesses behind business
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Enventis + Consolidated =
COMMITMENTEnventis is NOW Consolidated CommunicationsConsolidated Communications has roots going back more than a century and is deeply engaged in the communities it serves, much like Enventis. With our combined team, resources and expertise, we will be a stronger company, offering you the latest technologies, services and increased value for you and your business.
A better experiencealtogether. consolidated.com l 844.YOUR.CCI
Lower your utility bills!The right window coverings can lower your
monthly bills, as well as protect your �ooring, furniture and decor from sun damage.
Free consultation, measurements,shipping and installations
Do you want to freshen up your home? We are now o�ering interior design services too!
We provide FREE one-hour consultations and will bring our showroom to you.
Call us today!
Brook Devenport, OwnerLiz Goertzen, Designer
www.blindsandmoreofmankato.com
Civil and Municipal EngineeringWater and Wastewater EngineeringTraffic and Transportation EngineeringAviation Planning and EngineeringWater Resources EngineeringCoatings Inspection Services Landscape Architecture ServicesFunding AssistanceSurveying and Mappingwww.bolton-menk.com
Fourteen Offices Proudly- Serving the Upper Midwest-
ARCHITECTURE + ENGINEERING + ENVIRONMENTAL + PLANNING www.is-grp.com
A ENR Top 500 Design Firm
At ISG, we believe our true expertise—coupled with our ingenuity, creativity and eagerness—truly sets us apart and is what has garnered us a spot on the 2015 Engineering News-Record (ENR) Top 500 Design Firms list.
Since 1965, ENR has annually published this prestigious ranking of the largest U.S.-based designs firms, both publicly and privately held, based on design-specific revenue. We are proud of our ranking on this elite list and thank our clients, consultants and subcontractors for their continued support and partnerships.
Visit landtoairexpress.com or call 507-625-3977
In addition to theMSP Airport, Land toAir Express now offers multiple daily tripsfromMankato to Rochester and Southern MNdestinations in between. Convenient Mankatoshuttles are still available every day to and fromthe Minneapolis International Airport.
INTRODUCES YOUR
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Corporate GraphicsYour Printing Solutions Company
1750 Northway DriveNorth Mankato, MN 56003
800-729-7575www.corpgraph.com
MN Valley Business • July 2015 • 3
Enventis + Consolidated =
COMMITMENTEnventis is NOW Consolidated CommunicationsConsolidated Communications has roots going back more than a century and is deeply engaged in the communities it serves, much like Enventis. With our combined team, resources and expertise, we will be a stronger company, offering you the latest technologies, services and increased value for you and your business.
A better experiencealtogether. consolidated.com l 844.YOUR.CCI
Lower your utility bills!The right window coverings can lower your
monthly bills, as well as protect your �ooring, furniture and decor from sun damage.
Free consultation, measurements,shipping and installations
Do you want to freshen up your home? We are now o�ering interior design services too!
We provide FREE one-hour consultations and will bring our showroom to you.
Call us today!
Brook Devenport, OwnerLiz Goertzen, Designer
www.blindsandmoreofmankato.com
Civil and Municipal EngineeringWater and Wastewater EngineeringTraffic and Transportation EngineeringAviation Planning and EngineeringWater Resources EngineeringCoatings Inspection Services Landscape Architecture ServicesFunding AssistanceSurveying and Mappingwww.bolton-menk.com
Fourteen Offices Proudly- Serving the Upper Midwest-
ARCHITECTURE + ENGINEERING + ENVIRONMENTAL + PLANNING www.is-grp.com
A ENR Top 500 Design Firm
At ISG, we believe our true expertise—coupled with our ingenuity, creativity and eagerness—truly sets us apart and is what has garnered us a spot on the 2015 Engineering News-Record (ENR) Top 500 Design Firms list.
Since 1965, ENR has annually published this prestigious ranking of the largest U.S.-based designs firms, both publicly and privately held, based on design-specific revenue. We are proud of our ranking on this elite list and thank our clients, consultants and subcontractors for their continued support and partnerships.
BUSINESS BANKINGMember FDIC
Downtown Mankato507-625-6816
Lake Crystal507-726-2137
www.minnstarbank.com
Many have trusted MinnStar Bank’s personalservice to help them build and grow theirbusinesses —and we can do the same for you.
there foryouDavidThompson
TomEvensvold
SteveOlson
MarkMonson
Visit landtoairexpress.com or call 507-625-3977
In addition to theMSP Airport, Land toAir Express now offers multiple daily tripsfromMankato to Rochester and Southern MNdestinations in between. Convenient Mankatoshuttles are still available every day to and fromthe Minneapolis International Airport.
INTRODUCES YOUR
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4 • July 2015 • MN Valley Business
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We always put you FIRST!
Experienced Lenders p r o v i d i n g c u s t o m i z e d s e r v i c e f o r y o u r b u s i n e s s !
Equal HousingLENDER
Member FDIC
Visit us online at www.fnbmn.comMankato
507.625.1121St. Peter
507.931.4000Gaylord
507.237.5521
Commercial Lenders: Cory Abels, Bruce Gratz, Dan Benrud, Ken Kuehner, Craig Bode & Mike Favre
WE’VE MOVED!Find us on the 7th Floor in the
newly constructed Profinium Place,
100 WARREN ST., SUITE 708, MANKATO, MN.
Just blocks from our former location,Lidstrom Commercial Realtors
is still conveniently located in theheart of downtown Mankato and
ready to serve all yourCommercial Real Estate Needs.
507-625-4606 • www.lidcomm.comTim Lidstrom, CCIM/Broker
Karla Jo Olson, Broker • Dan Robinson, Agent
COMMERCIAL ROOFINGFlat Roofing • Standing Seam RoofingRoof Coatings (Flat & Metal Roofs)Mankato & Surrounding Areas
Mark:507.779.6639
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MN Valley Business • July 2015 • 5
F E A T U R E SJuly 2015 • Volume 7, Issue 10
Chad and Theresa Carlberg moved to Mankato in 2008 and realized
there was a market for digital strategies that led them to start
PresenceMaker.
22Stephanie Hylla, owner of Mankato Acupuncture, became a huge fan of the ancient treatment after getting
relief from acupuncture herself.
18Damien Friesz, owner of Front Street Tattoo & Voss Fine Art
Gallery in downtown Mankato, blends exceptional art skills into
his businesses.
26
They may not always be well known to the public but firms that provide business-to-business products and
services are a vital part of the area economy.
14
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We always put you FIRST!
Experienced Lenders p r o v i d i n g c u s t o m i z e d s e r v i c e f o r y o u r b u s i n e s s !
Equal HousingLENDER
Member FDIC
Visit us online at www.fnbmn.comMankato
507.625.1121St. Peter
507.931.4000Gaylord
507.237.5521
Commercial Lenders: Cory Abels, Bruce Gratz, Dan Benrud, Ken Kuehner, Craig Bode & Mike Favre
WE’VE MOVED!Find us on the 7th Floor in the
newly constructed Profinium Place,
100 WARREN ST., SUITE 708, MANKATO, MN.
Just blocks from our former location,Lidstrom Commercial Realtors
is still conveniently located in theheart of downtown Mankato and
ready to serve all yourCommercial Real Estate Needs.
507-625-4606 • www.lidcomm.comTim Lidstrom, CCIM/Broker
Karla Jo Olson, Broker • Dan Robinson, Agent
COMMERCIAL ROOFINGFlat Roofing • Standing Seam RoofingRoof Coatings (Flat & Metal Roofs)Mankato & Surrounding Areas
Mark:507.779.6639
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6 • July 2015 • MN Valley Business
PUBLISHER
EXECUTIVE EDITOR
ASSOCIATE EDITOR
CONTRIBUTINGWRITERS
PHOTOGRAPHERS
COVER PHOTO
PAGE DESIGNER
ADVERTISINGMANAGER
ADVERTISING SALES
ADVERTISINGASSISTANT
ADVERTISINGDESIGNERS
CIRCULATIONDIRECTOR
John Elchert
Joe Spear
Tim Krohn
Tim KrohnKent ThiesseHeidi SampsonTim Penny
Pat ChristmanJohn Cross
John Cross
Christina Sankey
Ginny Bergerson
Jen WanderscheidTheresa Haefner
Barb Wass
Sue HammarChristina Sankey
Denise Zernechel
July 2015 • VOluME 7, ISSuE 10
MN Valley Business is published by The Free Press Media monthly at
418 South 2nd Street., Mankato MN 56001.
For editorial inquiries, call Tim Krohn at 507-344-6383.
For advertising,call 344-6336, or e-mail
The business of businessMankato grows with B2B firms
Reading this month’s cover feature, one is struck by the growth of business to business
firms in the region, but also how technology now drives much of that growth.
Where a business once needed to buy sales ticket order pads, it now buys electronic card readers and point of sale devices that can not only track sales and provide receipts, but also help the business track inventory and be more precise in its forecasts of demand.
That can obviously take a lot of the guesswork out of running a business. The positive side of all this is that much of this technology is now available to the smallest of businesses, giving them a more level playing field with big retailers.
At one time, the conventional wisdom in business revolved around economies of scale. Bigger firms would buy up or buy out smaller firms because they could use their bulk buying power or centralized offices to sell products at lower prices, and keep administrative costs down as well.
But with today’s technology a lot of small businesses have the same advantage.
“The small retailers have better information than major corporations had 15 or 20 years ago,” says Bill Mauel, of Northern Lights, a retail business that services other businesses with technology and software. Those products act like a cash register of old but also now help track sales and inventory.
Software prices have dropped and that allows small retailers the chance to buy the technology at a competitive price.
“It’s getting more integrated so you can find out who your customer is. With their debit card you can see how much they buy, what they buy, who they are. That’s all on one site. It’s the same thing Target’s been doing for years,” Mauel says.
And, he said, the systems do more than cash management and customer tracking.
“A liquor store can get an order and scan it and it’s very simple (to ring up
the sale). But for them, that’s not the end. It is things like inventory (control) — you have maximum and minimum numbers built in and it tells you when to order next and how much.”
Even businesses that started as “low tech” have evolved to high technology, with the advantage of providing it at a lower price.
M & M Signs has long been a simple business. For 80 years, they’ve helped local business to “hang their shingle.” It’s a business that doesn’t go away, but it does change.
“People have always needed signs,” says co-owner Bob Scott.
Scott owns the business with Ben Roach, after Bob’s dad Dean bought the business in the 1970s.
Neon still remains somewhat popular, but new signs often include low energy LED lights. Sign graphics can be drawn and created with computer software. No more paint brushes.
And while technology also impacts the accounting-for-hire business, it may be the growth of complex government regulations helping that business grow.
Medium and small businesses usually cannot handle the complexity with in-house bookkeepers. Larger, multi-service financial accounting firms have the wherewithal to centralize their research and provide services to the small businesses where it may not make sense to hire their own accountant.
Business are now outsourcing more accounting, financial and payroll work.
“It’s where we’re seeing the most growth,” said James Marzolf, outsourcing manager at CliftonLarsonAllen in Mankato.
A healthy business-to-business sector can move a regional economy to growth faster than say a new consumer business. One businesses’ strong growth usually leads to the strong growth of their suppliers. MV
Joe Spear is executive editor of Minnesota Valley Business. Contact him at [email protected] or 344-6382. Follow him on Twitter @jfspear.
■ local Business memos/ Company news ...............................7
■ Business and Industry trends ........9
■ Minnesota Business updates ...... 10
■ Business Commentary ................ 11
■ Construction, real estate trends . 29
■ Agriculture Outlook ..................... 30
■ Agribusiness trends. ................... 31
■ Job trends .................................... 32
■ Retail trends ................................ 33
■ Greater Mankato Growth ............. 34
■ Greater Mankato Growth Member Activities ...................... 38
■ From the editorBy Joe Spear
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MN Valley Business • July 2015 • 7
Profinium in new officeProfinium Inc. is in its new location, Profinium Place, at
the corner of Warren Street and Riverfront Drive. Headquartered in Truman, Profinium is a full financial
services business that traces its roots back 140 years. Profinium expanded into Owatonna eight years ago and
in 2013 opened a temporary office in Mankato in the Landkamer Building while the new seven story Profinium Tower, which houses multiple tenants, was being built by Kyle Smith and Michael Sather of the Tailwind Group.
■ ■ ■
Pazdernik joins Minn. SoybeanMinnesota Soybean added David Pazdernik as director
of research.Pazdernik holds a Ph.D. in plant breeding and genetics
from the University of Minnesota. He also has a Master’s in plant physiology from North Dakota State University and a Bachelor of Science in agronomy and plant science.
He spent the past seven years working for Syngenta Seeds.
■ ■ ■
CTS staff certifiedComputer Technology Solutions, one of a few
Watchguard Gold Partners in the nation, announced that Todd Tanhoff, Tim Ray and Mark Reedstrom have been certified by Watchguard as certified sales professionals and Aaron Hartwell and Xac Dinsmore have been certified by Watchguard technical professionals.
■ ■ ■
AmericInn honored TripAdvisor.com gave the Mankato AmericInn Hotel
and Conference Center the Hall of Fame award for having five years of consistent positive ratings from guests. Trip Advisor is the largest travel website for travelers to review restaurants, hotels, and attractions.
■ ■ ■
Blue Tang Inn honoredBlue Tang Inn in Belize, owned by Curt & Debbie
Fisher of Mankato, has received a TripAdvisor Certificate of Excellence award. The award celebrates excellence in hospitality and is given only to establishments that consistently achieve great traveler reviews on TripAdvisor.
■ ■ ■
Attorneys honored at GislasonGislason & Hunter announce that seven attorneys have
been named to the annual Super Lawyers and Rising Stars List. Super Lawyers include: Dustan Cross, Michael Dove and Dan Gislason from the New Ulm office. Rising Stars include Matt Berger and Peter Hemberger from the New
Ulm office and Cory Genelin and Andrew Tatge from the Mankato office.
■ ■ ■
ISG opens Twin Cities officeISG opened a new office in Minneapolis, the seventh
office location across Minnesota, Iowa, and Wisconsin. With ISG’s growing client base and significant number
of staff members in the Minneapolis/St. Paul area, it makes complete sense for us to have an office location there,” Chad Surprenant, president and CEO said.
The office is located in the International Plaza building at 7900 International Drive, Suite 550, Minneapolis. Leading the office is Andy Brandel.
■ ■ ■
Jay Abdo honored by MSUJay Abdo, senior partner for Abdo, Eick & Meyers, was
presented with a Distinguished Alumni Achievement Award from Minnesota State University.
The honor recognizes Abdo for his achievements, which have included playing a key role in the growth of Abdo, Eick & Meyers — a certified public accounting and business advisory firm founded in the early 1960s by his father, Joe Abdo — and serving on the boards of several local organizations and nonprofits, including 10 years of service on the advisory board of MSU’s College of Business.
■ ■ ■
O’Sullivan joins MinnStarJoseph O’Sullivan has joined
MinnStar Bank as a junior ag lender position. He recently graduated from the University of Minnesota, majoring in agriculture and food business management.
MinnStar Bank is a locally owned bank with locations, in Lake Crystal and Mankato.
■ ■ ■
Pathstone receives awardEcumen Pathstone Living, a Mankato senior living
community, has received the 2015 Customer Experience Award from Pinnacle Quality Insight, a national healthcare customer satisfaction measurement company.
Based on surveys of residents and families, Pinnacle gave its award to Ecumen in 12 categories: Nursing Care, Dining Service, Quality of Food, Cleanliness, Professional Therapy Services, Activities, Response to Problems, Treatment and Dignity, Individual Needs, Recommend to Others, Overall Satisfaction, and Combined Average Scores.
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■ Local Business People/Company News
Joseph O’Sullivan
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8 • July 2015 • MN Valley Business
Gorder joins WeichertWeichert Realtors Community
Group announced that Taylor Gorder has joined their office as a real estate agent. Gorder is serving property buyers and sellers throughout the Mankato area.
The business is owned by Richard Draheim.
■ ■ ■
ISG ranked nationallyISG was recognized as one of the
country’s leading design firms by Engineering News-Record magazine’s annual industry rankings. The Top 500 Design Firms list ranks the largest U.S.-based designs firms, both publicly and privately held, based on design-specific revenue. ISG is ranked at 488.
It is the first time ISG has been on the list, said president and CEO Chad Surprenant.
■ ■ ■
Enventis honored by CiscoEnventis, a Consolidated
Communications Company, was recently named the Central Break Away Partner of the Year at the Cisco 2015 Partner Summit, held in Montreal, Canada. Cisco recognized Enventis for its exceptional performance in expanding and growing their business the past year.
■ ■ ■
Kietzer adds certification Century 21
L a n d m a r k R e a l t o r s announced that Jonathan Kietzer, broker with the Mankato office, recently added the Certified C o m m e r c i a l I n v e s t m e n t M e m b e r
designation to his professional status.
CCIM candidates must complete a rigorous education requirement and competency exams, as well meeting a minimum required experience level. CCIM is a resource and award held by just over 9,500 professionals including commercial real estate owners and investors
■ ■ ■
Jordan Sands honored Jordan Sands, an industrial sand
mining and processing operation based in North Mankato, has been awarded the 2014 Safety Achievement Award by the Industrial
Minerals Association-North America. With a zero reportable injury rate, Jordan Sands tied with eight other small category companies in receiving this prestigious honor.
■ ■ ■
Mankato Clinic honored Mankato Clinic was honored for
delivering high-quality care to UCare’s Medicare members. UCare recognized 19 clinics and care systems either for earning quality excellence awards in UCare’s 2014 Pay for Performance (P4P) program or for going the extra mile to deliver culturally responsible health services to UCare members and to reduce barriers to care for people with disabilities.
UCare’s P4P criteria are selected to improve preventive care, identify health issues through screenings for various health risks and conditions, and achieve improved outcomes for chronic conditions such as diabetes and cardiovascular disease.
Jonathan Kietzer
Call - 507.386.4827Mankato & Owatonna [email protected]
Take Control of Your Work Comp Costs With A Complete Mod Analysis
See Agent, Craig Hanson, for your possible savings!
Audio, Video,Automation SystemsControl your:• TVs• Movies• HVAC• Locks• Shades
• Music• Lighting• Security• Garage Doors• More
Call us and let usshow you how it works
Mention code MVB2015 for 10% Discount
by smartphone or tablet
388-3271YOUR WIRING PROS
www.ecsmankato.com
MNVB July p01.indd 8 6/19/2015 12:05:39 PM
MN Valley Business • July 2015 • 9
EconomyGDP sluggish
The Bureau of Economic Analysis reported that real GDP decreased at an annual rate of 0.7 percent in the first quarter of 2015. Imports increased more and private inventory investment increased less than had been expected.
Real GDP should grow by 2.2 percent in 2015 and by 2.6 percent in 2016.
Job growth slows in ’16Real disposable income grows by 3.3 percent in 2015
and by 2.2 percent in 2016.Total industrial production grows at 1.5 percent in 2015
and 2.8 percent in 2016.Projected growth in nonfarm employment averages 2
percent5 in 2015 and 1.3 percent in 2016.
Private expenditures upForecast growth in private real fixed investment averages
3.8 percent and 7.2 percent in 2015 and 2016, respectively, led by investment in equipment in 2015 and investment in equipment and structures in 2016.
Real consumption expenditures grow faster than real GDP in 2015, at 2.9 percent, and the same as real GDP in 2016, at 2.6 percent. Durable goods expenditures drive consumption spending in both years.
Export growth is 1.6 percent in 2015 and 4.7 percent in 2016, while import growth is 4.8 percent in 2015 and 6.1 percent in 2016. Total government expenditures rise 0.8 percent in 2015 and 0.5 percent in 2016.
EnergyOil pressured up
North Sea Brent crude oil prices averaged $64/barrel in May, a $5 increase from April and the highest monthly average of 2015. Despite estimated global inventories increasing by more than 2 million barrels per day for the third consecutive month, several factors contributed to higher prices in May, including continued signals of higher global oil demand growth, expectations for declining U.S. tight oil production in the coming months, and the growing risk of unplanned supply outages in the Middle East and North Africa, according to the federal Energy Information Administration.
EIA forecasts Brent crude oil prices will average $61 in 2015 and $67 in 2016.
West Texas Intermediate prices in both 2015 and 2016 are expected to average $5 a barrel less than the Brent price.
Gas reaches year’s highRegular gasoline monthly average retail prices reached a
2015 high of $2.72 a gallon. The higher prices reflect rising crude oil prices and isolated outages at West Coast and Midwest refineries.
Monthly average gasoline prices are expected to decline from their May level through the rest of the year, averaging $2.43 per gallon during the second half of 2015.
■ Business and Industry Trends
Oil production to fallTotal U.S. crude oil production averaged an estimated 9.6
million barrels per day in May, but it is expected to generally decline from June 2015 through early 2016 before growth resumes.
Projected U.S. crude oil production averages 9.4 million barrels per day in 2015 and 9.3 million barrels per day in 2016.
Lots of natural gas In every week since the April start of the natural gas
storage injection season, weekly inventory builds have surpassed the previous five-year (2010-14) average. The 132 billion cubic feet increase in working gas inventories for the week ending May 29 was the largest injection in more than a decade.
Inventories should total 3,912 Bcf at the end of October 2015, which would be 115 Bcf above the previous five-year average.
More AC useThe National Oceanic and Atmospheric Administration
forecasts warmer summer temperatures this year compared with the mild summer last year. The warmer temperatures are forecast to increase consumption of electricity to run air conditioners, which, combined with higher electricity prices, contributes to a forecast of a 4.8 percent increase in the typical U.S. residential electricity bill this summer.
Ethanol production steadyOn May 29, the U.S. Environmental Protection Agency
proposed a rule setting Renewable Fuel Standard targets for 2014 through 2016.
Ethanol production, which averaged 935,000 barrels per day in 2014, is forecast to remain near current levels, averaging 936,000 barrels per day in 2015 and 933,000 barrels in 2016.
Ethanol consumption, which averaged 878,000 b/d in 2014, is forecast to average 891,000 b/d in 2015 and 896,000 b/d in
Call - 507.386.4827Mankato & Owatonna [email protected]
Take Control of Your Work Comp Costs With A Complete Mod Analysis
See Agent, Craig Hanson, for your possible savings!
Audio, Video,Automation SystemsControl your:• TVs• Movies• HVAC• Locks• Shades
• Music• Lighting• Security• Garage Doors• More
Call us and let usshow you how it works
Mention code MVB2015 for 10% Discount
by smartphone or tablet
388-3271YOUR WIRING PROS
www.ecsmankato.com
MNVB July p01.indd 9 6/19/2015 12:05:41 PM
10 • July 2015 • MN Valley Business
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■ ADM adds tree nut facility Archer Daniels Midland has acquired
tree nut and seed processing assets and operations in Modesto, California, from California Gold Almonds, adding processing capacity on top of ADM’s existing West Coast nut operations in Lodi and Stockton.
Under the terms of the deal, ADM is acquiring the lease to the new Modesto processing plant, and taking ownership of assets — including processing equipment — at the facility.
“This is a great addition that will help us continue to grow sales in our business,” said Vince Macciocchi, president of ADM’s WILD Flavors and Specialty Ingredients business unit. “Global demand for almonds, macadamias, pumpkin seeds, cashews and other healthy, on-trend nuts and seeds is growing, and production is projected to continue rising.”
The Modesto plant is capable of steam pasteurizing, roasting, dicing, slicing, milling and packaging. Like ADM’s plants in Lodi and Stockton, the facility can process a range of nuts, including almonds, cashews, Brazil nuts, pecans, pistachios, hazelnuts, walnuts and macadamias
■ Consolidated rolls out 1 gigConsolidated Communications, owner of Enventis in
Mankato, announced the launch of 1 gigabit residential Internet service across its existing fiber network in the Houston-area market, the second in a series of gigabit launches for the company.
Consolidated announced its first 1 gigabit service in Kansas City in late 2014.
“Streaming video, home-based business applications and cloud services are just a few of the applications driving our customers’ need for faster Internet connections and more bandwidth,” said Rob Koester, vice president of consumer product marketing.
The new 1 gigabit package costs $69.95 per month.Consolidated Communication is headquartered in
Mattoon, Illinois.
■ General Mills ups organicGeneral Mills unveiled its
goal to build a $1 billion natural and organic business by fiscal 2020. To secure a pipeline of natural and organic ingredients and help reach that goal, the
Minneapolis-based company is investing $50,000 to support the Can-ada-based Prairie Organic Grain Initiative.
The POGI is a $2.2 million, four-year program targeted at achieving growth, resiliency and stability in the prairie organic sector. The initiative will focus on increasing both the quantity and quality of organic field crops while building stronger market relationships. It will be housed by Organic Alberta, a non-profit umbrella organization that serves all certified organic and transitioning entities,
but it is a partnership across the entire prairie organic sector, including the Provincial organic associations.
According to General Mills, the organic food market has grown rapidly, which has made sourcing certified organic ingredients increasingly difficult. POGI’s primary focus is to address the shortage of organic grain growers by initiating several pro-grams that will entice conventional growers to make the transition to organic farm-ing.
“Recognizing our expansion in natural and organic will require a more robust pipe-line of natural and organic growers, we are focused on doubling the amount of or-ganic farming acreage in North America by 2020,” a company spokeswoman said.
■ State businesses optimisticMinnesota small business owners report in the U.S.
Bank survey that the local economy is as strong or even stronger than the national economy. Yet the commercial survivors of the Great Recession are investing somewhat cautiously and only with some confidence that future business will support the outlay, according to the Star Tribune.
Nearly three-quarters of Minnesota small business owners believe the national economy is in a recovery or expansion, compared to 67 percent across the country. Beyond that, 49 percent say Minnesota’s economy is stronger than the national. The most commonly cited reason for saying so is the state’s relatively low unemployment rate and high wages.
Nationally, only 30 percent of small business owners described their state economy as stronger than the national.
Despite improving state and national economies, Minnesota small business owners and those across the country remain cautious about hiring. The survey found that only 20 percent of Minnesota small business owners plan to add staff over the next year compared to 25 percent nationally. And 29 percent plan to make a capital expenditure, compared to 34 percent nationally.
■ City looks at tobacco limits Minneapolis is considering tough new restrictions on
the sale of flavored tobacco. Supporters say the proposal is intended to keep flavored cigars and e-cigarettes from attracting younger smokers, but convenience store owners say it goes too far, according to Minnesota Public Radio.
With the exception of menthols, the federal government banned flavored cigarettes in 2009. But the tobacco industry was quick to adapt. It rolled out new lines of cigars in a variety of flavors.
Anti-smoking advocate Gloria Liliana Cazanacli told a Minneapolis City Council committee that the new products are designed to hook children on tobacco.
“[The] cigars appeal to kids,” she said, “because they come in candy flavor — chocolate, vanilla, strawberry — and they smell like candy. It is too tempting.”
Cazanacli urged the council members to adopt the ordinance, which would ban the sale of flavored tobacco — such as cigarettes and cigars — in most retail outlets, including gas stations and convenience stores.
■ Minnesota Business Updates
We are HonoredTo be voted Mankato Magazine’s #1 Law Firm.
Since 1896, Blethen, Gage & Krause has been a cornerstone of the Greater Mankatocommunity with an unwavering focus on providing legal excellence and personalcommitment. We always put our clients first and they have returned the favor byvoting us best law firm in Mankato. Thank you to our clients and business associatesfor this acknowledgement. We are proud to be a part of this vibrant community.
L I T I G AT I ON • BU S I N E S S • FA RM • P E R SONA L
EXCELLENCE
blethenlaw.com
Mankato, Minnesota
MNVB July p01.indd 10 6/19/2015 12:05:43 PM
MN Valley Business • July 2015 • 11
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Under the ordinance, the flavored products could be sold only in specialized tobacco shops. Those stores would have to take additional measures to keep underage customers out. The ordinance also sets a minimum price of $2.60 for a cigar. They sell now for as little as $0.50 or $1.
We are HonoredTo be voted Mankato Magazine’s #1 Law Firm.
Since 1896, Blethen, Gage & Krause has been a cornerstone of the Greater Mankatocommunity with an unwavering focus on providing legal excellence and personalcommitment. We always put our clients first and they have returned the favor byvoting us best law firm in Mankato. Thank you to our clients and business associatesfor this acknowledgement. We are proud to be a part of this vibrant community.
L I T I G AT I ON • BU S I N E S S • FA RM • P E R SONA L
EXCELLENCE
blethenlaw.com
Mankato, Minnesota
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MNVB July p01.indd 11 6/19/2015 12:05:44 PM
12 • July 2015 • MN Valley Business
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It’s undeniable that our rural towns are different than they were even one generation ago. There are a few less businesses, a few more shuttered
houses. To passersby, it might appear that these places are dying, some already dead. Certainly, books like Joseph Amato’s Decline of Rural Minnesota (1993) and Patrick Carr and Maria Kefalas’ Hollowing Out the Middle (2010) tell the story of young people moving out, deaths outpacing births, and the decline of agriculture as a primary economic engine.
However, there is another narrative, one that’s more nuanced, and also more hopeful, for those of us who call rural Minnesota home. Much of this new story is being shaped by the research of Ben Winchester through the University of Minnesota Extension. His research points to an overlooked demographic trend: while it’s true that some age cohorts are leaving for urban areas and that small towns are being impacted by the national decrease in birthrate, there is a cohort of people who are choosing to move back. This cohort, specifically those aged 30-44, are seeking a simpler pace of life, better quality schools for their children, and a lower cost of living. They comprise a highly-educated, wealthier cohort compared to those populations leaving (primarily ages 18-25), leading Winchester to flip the narrative and coin this phenomenon as “rural brain gain.”
In early June, I’m attending a gathering of all six Minnesota Initiative Foundations (MIF), along with other researchers and practitioners interested in this “returning” cohort. While the rural brain gain findings are encouraging, research also shows that people are likely to migrate again around their mid-40s to early-50s. At the MIF meeting, my colleagues and I want to identify opportunities to engage these newcomers longer-term while opening more doors for those thinking about leaving urban life behind. One component of this upcoming session will be a time to reflect on why the current leaders of our organizations - myself included - have chosen to stay and invest in our rural communities.
My decision to stay in rural Minnesota boils down to fact that this is where my roots are. My great-great grandfather homesteaded in rural Freeborn County northwest of Albert Lea in 1862. Originally, our family lived and farmed on the shores of Penny Lake and continued farming in rural Freeborn County for the following three generations.
Inspired by my “roots,” as a young man, I aspired to serve rural Minnesota. I was fortunate to do so for six years in the state Senate and 12 years in Washington, D.C. While I felt honored to serve southern Minnesota in Washington, I always knew that I would return home so my kids would be able to have their roots here, as well.
Today, I am fortunate to continue to serve this 20-county region as President of the Southern Minnesota Initiative Foundation. Through SMIF grants, loans, and various programs, we are helping our area’s communities remain viable for a new generation.
So, beyond “roots,” here are the Top Five Reasons I Chose Rural:
1. Rural values resonate with me. These values include
respect for our natural resources, commitment to community, neighborliness, and pride in our traditions.
2. I enjoy open space and the lack of congestion. I have heard it said that “you know you are in a rural community when you do not have to put on your blinker because everyone knows where you are going.”
3. I celebrate the fact that - for the most part - rural community schools are small enough to provide every student personal attention and an opportunity to succeed.
4. I am comforted that community services are delivered by people I personally know and trust. I appreciate that the mayor and other local officials are both neighbors and friends. I like it that local businesses are run by people with whom I socialize and go to church.
5. Finally, I love that many of our community needs are addressed by neighbors working together in collaboration and partnership and not inhibited by partisan agendas or political gamesmanship. In rural Minnesota, we largely live by the John Deere creed: “Get ‘er done!” To me, leading a foundation - SMIF - that is all about
rural is very much an “affair of the heart.” MV
Tim Penny is president at CEO of Southern Minnesota Initiative Foundation. [email protected] or 507-455-3215.
It’s time to look at ‘rural brain gain’
■ Business CommentaryBy Tim Penny
“Those aged 30-44, are seeking a simpler pace of life,
better quality schools for their children, and a lower
cost of living.”
s
sKASASA CASH: *APY=Annual Percentage Yield. APYs accurate as of 02/12/2015. Rates may change after account is opened. Minimum to open is $1. If qualifications are met each monthly qualification cycle: (1) Domestic ATM fees incurred during qualification cycle will be reimbursed up to $25 ($4.99 per single transaction) and credited to account on the last day of monthly statement cycle; (2) balances up to $10,000 receive APY of 2.51%; and (3) balances over $10,000 earn 0.25% interest rate on portion of balance over $10,000, resulting in 2.51% - 0.25% APY depending on the balance. If qualifications are not met, all balances earn 0.05% APY. If qualifications are met each monthly qualification cycle the interest rate tiers are as follows: 2.48% interest rate applies to balances of $0.01 - $10,000 and .25% interest rate applies to balances over $10,000. If qualifications are not met each monthly qualification cycle a 0.05% interest rate applies to all balances. Qualifying transactions must post to and settle account during monthly qualification cycle. Transactions may take one or more banking days from the date transaction was made to post to and settle an account. ATM-processed transactions do not count towards qualifying debit card transactions. Transfers between multiple accounts do not count as qualifying transactions. Debit card transactions processed by merchants and received by the bank as ATM transactions do not count towards qualifying debit card transactions. Only debit card transactions processed by merchants and received by the bank as POS transactions count towards qualifying debit card transactions. “Monthly Qualification Cycle” means a period beginning one day prior to the first day of the current statement cycle through one day prior to the close of the current statement cycle. Direct deposit required to have this account. Limit one account per SSN. ATM receipt must be presented for reimbursement of an individual ATM fee of $5.00 or higher.
Lewisville • Madelia • Mankato • Mapleton • North Mankato • St. James • Lake Crystal Loan Production Office507-625-3268
MarieKRAUSE
MindyANNIS
Pioneer BankYour personal bankers in Greater Mankato
Exceeding Expectationswww.bankwithpioneer.com
MNVB July p01.indd 12 6/19/2015 12:05:47 PM
MN Valley Business • July 2015 • 13
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KASASA CASH: *APY=Annual Percentage Yield. APYs accurate as of 02/12/2015. Rates may change after account is opened. Minimum to open is $1. If qualifications are met each monthly qualification cycle: (1) Domestic ATM fees incurred during qualification cycle will be reimbursed up to $25 ($4.99 per single transaction) and credited to account on the last day of monthly statement cycle; (2) balances up to $10,000 receive APY of 2.51%; and (3) balances over $10,000 earn 0.25% interest rate on portion of balance over $10,000, resulting in 2.51% - 0.25% APY depending on the balance. If qualifications are not met, all balances earn 0.05% APY. If qualifications are met each monthly qualification cycle the interest rate tiers are as follows: 2.48% interest rate applies to balances of $0.01 - $10,000 and .25% interest rate applies to balances over $10,000. If qualifications are not met each monthly qualification cycle a 0.05% interest rate applies to all balances. Qualifying transactions must post to and settle account during monthly qualification cycle. Transactions may take one or more banking days from the date transaction was made to post to and settle an account. ATM-processed transactions do not count towards qualifying debit card transactions. Transfers between multiple accounts do not count as qualifying transactions. Debit card transactions processed by merchants and received by the bank as ATM transactions do not count towards qualifying debit card transactions. Only debit card transactions processed by merchants and received by the bank as POS transactions count towards qualifying debit card transactions. “Monthly Qualification Cycle” means a period beginning one day prior to the first day of the current statement cycle through one day prior to the close of the current statement cycle. Direct deposit required to have this account. Limit one account per SSN. ATM receipt must be presented for reimbursement of an individual ATM fee of $5.00 or higher.
Lewisville • Madelia • Mankato • Mapleton • North Mankato • St. James • Lake Crystal Loan Production Office507-625-3268
MarieKRAUSE
MindyANNIS
Pioneer BankYour personal bankers in Greater Mankato
Exceeding Expectationswww.bankwithpioneer.com
MNVB July p01.indd 13 6/19/2015 12:05:49 PM
14 • July 2015 • MN Valley Business
BusinessTo
BusinessFirms offer goods, services to businesses
By Tim Krohn | Photos by John Cross and Pat Christman
The M&M Signs crews prepares brackets to install a Lidstrom Commercial Realtors sign on the Profinium Place building in downtown Mankato.
MNVB July p01.indd 14 6/19/2015 12:05:52 PM
MN Valley Business • July 2015 • 15
Bill Mauel has had a very successful local company for decades.
Yet, almost no one has heard of his Northern Lights Retail business.
Other longtime businesses, such as M&M Signs, may be known to more people in the Mankato area, but few people walk in off the street to buy a sign from them.
And people likely have heard of the accounting firm CliftonLarsonAllen, but unless you own a large farm or other business, you probably haven’t done business with them.
The companies are part of the large “business-to-business” sector in the Mankato area, offering products and services — from janitorial supplies to copiers — that other businesses need to operate and succeed.
Everywhere, their signsM& M Signs has been helping business owners hang
out their shingle to attract attention and customers for almost 80 years in Mankato.
“People have always needed signs,” Bob Scott said.He and Ben Roach own and operate M&M signs. Bob’s
dad, Dean Scott, bought the business in the early 1970s.While drawing attention has always been the goal of
business signs, the types of signs keeps evolving.Hand–painted signs on boards or advertising painted
on the sides of buildings once dominated, and then lighted and neon signs became big.
Bill Mauel of Northern Lights Retail.
“Then there were computers that changed the industry dramatically,” Scott said. “The vinyl cutting technology changed things like lettering vehicles. It eliminated the hand lettering and paint brush stuff. That allowed everyone to become a sign maker, it was a part-time job for a lot of people.”
Even though neon is less popular, it’s not gone, Scott said.
“We used to do a lot of neon, like the original Kato Beer signs and things,” Scott said. While the use of neon has dropped off, M&M recently installed a neon sign on the new Graif clothing store on North Riverfront Drive.
Now, M&M is more often retrofitting signs that had neon with new LED lights. “The neon will always be around. I actually like them better. A tube will last forever if nothing happens to it.”
Scott said LED bulbs are the biggest recent change in the sign industry, including their use in the big, bright, flashy electronic message center signs that are growing more popular.
“We’ve done a lot of those in town. The price has come down a lot with more technology.”
M&M covers much of southern Minnesota and northern Iowa and ships some signs it makes nationwide.
The company builds bases and signs locally for most of its area customers. When national chains come to town, they usually ship their signs in and hire M&M to install them.
Scott said knowing local sign ordinances is a must in their business.
“Every community has different sign ordinances. You have to do your due diligence and read the ordinance and not propose things that won’t be accepted. Most are fairly reasonable; there aren’t any communities that are anti-business.”
The company has been erecting a number of high-profile signs around Mankato recently. They are doing the new signs at Madison East Center, did the MVAC building on Victory Drive, the Wickersham expansion signs, the new
Kia dealership and are putting up all the signs on the new Profinium Place tower in downtown Mankato.
Ringing up customersMauel’s cash register and office equipment business in
Eagle Lake is an unassuming building with a small sign for “Northern Lights Retail Inc.”
But the in the nearly 40 years he’s been in the industry, he’s outfitted businesses across the region with cash registers and other equipment they need to run their business.
Mauel used to own Devney Office Machines in Mankato until selling the copier portion of the business to Marco 15 years ago and then concentrating on other equipment businesses need to operate.
“We work with retailers providing cash registers and point-of-sale equipment, online ordering, gift-card processing.”
Technology, of course, has revolutionized his business, but the fundamentals are the same. “You’re controlling cash. It’s just changed from cash and check to a cash/debit card economy.”
“The simple cash register that you saw years ago are now the tablets or point-of-sale terminals. Those are all software driven,” Mauel said.
Cover Story
MNVB July p01.indd 15 6/19/2015 12:05:56 PM
16 • July 2015 • MN Valley Business
He said the drop in software prices means small retailers can, with their terminal and some good software, possess a powerful tool.
“The small retailers have better information than major corporations had 15 or 20 years ago,” he said.
“It’s getting more integrated so you can find out who your customer is. With their debit card you can see how much they buy, what they buy, who they are. That’s all on one site. It’s the same thing Target’s been doing for years.”
And he said, the systems do more than cash management and customer tracking.
“A liquor store can get an order and scan it and it’s very simple (to ring up the sale). But for them, that’s not the end. It is things like inventory (control) — you have maximum and minimum numbers built in and it tells you when to order next and how much.”
Much of Mauel’s work is helping businesses integrate their point-of-sales systems among online and brick-and-mortar stores.
Jake’s Pizza in Mankato uses one of the point-of-sale systems from Mauel.
“We can have online ordering or in-house, and when the order is taken, it goes to different stations,” said Wally Boyer. “It can go to the station where we make sandwiches or the station where we make pizzas or drinks.”
Boyer said the integrated system cuts down on mistakes in orders or tallying up bills. “I guess the only bad thing is when the computer goes down, you’re stuck.”
Mauel said another big change he’s seeing is a switch to the newer version of credit cards, called EMV cards
(Europay, MasterCard and Visa) that contain computer chips rather than the traditional magnetic strip.
New terminals, including mobile ones, are needed to read the EMV cards.
“You’ll see more of the mobile coming in the Mankato area because of the move to EMV. The Wal-Marts already have them but smaller retailers will be doing it soon, too.”
The switch to the chip cards is because they give a much higher level of security to help prevent the kind of credit card breaches Target and other retailers have suffered. “The U.S. is the only industrialized country in the world not doing this. We’re way behind the curve.”
Mauel said security is a much bigger concern among his customers today. “We have a lot of discussions about that.”
While cash registers and point of sale equipment make up a big part of his business, Mauel also offers scales, time clocks, scanners, coin dispensers and other equipment.
Scales are often integrated into point of sale settings, such as a cafeteria or grocery stores where food or other items are weighed to calculate the cost.
“Time keeping is a huge thing for us too, but most of it isn’t done on time clocks any more. These point of sales systems let you check employees in and out and can track tips for employees.”
Besides getting and setting up the systems, a big part of Mauel’s business is the ongoing maintenance and upgrades needed. “We upgrade software or repair the hardware,”he said.
“We are a value-added reseller. We take hardware from different locations and marry it with software solutions.”
James Marzolf is outsourcing manager at CliftonLarsonAllen in Mankato.
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MN Valley Business • July 2015 • 17
Outsourcing growsIn the past, small- and even mid-size businesses could
often have their financial records handled by an in-house bookkeeper.
But as financial regulations and reporting requirements have gotten more complex, more and more businesses are finding that outsourcing accounting, payroll and other financial work is preferred.
“It’s where we’re seeing the most growth,” said James Marzolf, outsourcing manager at CliftonLarsonAllen in Mankato.
His team of accountants, tax and financial experts — about 40 in all in the busy season — provide tax, payroll, audit and other services to businesses.
He said a growing part of their business is outsourced positions. “We send someone out one or two days a week to a business and they do whatever level of accounting the business needs,” Marzolf said.
“It can be anything from basic accounting work to controller or CFO-level work. It’s a perfect answer for small businesses to get cost-effective solutions and a quality product.”
Marzolf said many small and growing businesses feel uncomfortable and uncertain about doing financial work.
“They often have kind of a mess. They can have lots of issues and they just have us deal with it and count on a consistent service.”
Payroll services, he said, are something many businesses like to outsource. “If businesses do their own payroll, they worry if they’re in compliance with requirements. We have people who do this every day and can match them with
what the business needs.”He said the firm has especially seen a big demand in the
agriculture sector.“As farms get bigger and bigger, there’s more to manage.
Agriculture is a significant chunk of our business.”CliftonLarsonAllen is a major national firm with office
across the country. It has its roots in the Minneapolis firm of Larson Allen. The Mankato office resulted from a merger of three local firms that came together under the CliftonLarsonAllen umbrella. MV
Jake’s Pizza manager Andrew Boyer-Kern uses the point-of-sale system provided by Northern Lights Retail.
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18 • July 2015 • MN Valley Business
Stephanie Hylla, owner of Mankato Acupuncture, was a stay at home mom for 13 years. She’d gotten her undergraduate degree in psychology prior to having
children, but always knew that once she was done having kids, she’d be headed back to school. For many of those years she debated on what kind of school she’d pursue such as chiropractor, acupuncture, or massage.
For many of those years, Hylla remained undecided until she became pregnant with her fourth and last child.
Around 24 weeks she began having tremendous sacral pain, which is the triangle-shaped bone at the bottom of the spine. Unsure what was happening to her body, she
went to the chiropractor, which was something she’d done her entire life. However, this time the chiropractor adjustments were no match for her
pain. Desperate for a solution, Hylla decided to try physical therapy to help build her core, which was good but also did not take away her pain. As a last resort, she went to an acupuncturist.
Profile
By Heidi Sampson | Photos by John Cross
Stephanie Hylla of Mankato Acupuncture, located in Old Town on North Riverfront Drive.
Getting to thepoint of pain
Acupuncturist uses Chinese medicine
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MN Valley Business • July 2015 • 19
“As long as I got two treatments a week for the rest of my pregnancy it cut my pain by probably 75 percent. Before that, I had a walker as I could hardly mobilize myself at that time.”
She said that while getting an acupuncture treatment, she had her “aha moment” lying there on the table.
“I knew this was what I wanted to do. Actually, you’ll find that most of us who come to this line of work have a specific story to tell on how we got into this, which is normally the result of experiencing the benefits acupuncture firsthand. Rarely does someone just wake up and decide to go to acupuncture school without ever being needled.”
What is Acupuncture?Hylla said acupuncture heals the body in a more natural
way. She said acupuncture operates as a complete holistic health care practice in that practitioners use Traditional Chinese Medicine to assist them in diagnosis and recovery options for their patients. One particular diagnostic method includes pulse diagnosis, in which the practitioner is not only looking for the actual pulse count, but also as to how the pulse feels through the three different pressure spots of varying depths. Another technique includes, demeanor and tongue diagnosis, in which the tongue is mapped out into different segments, each segment pertains to a particular organ within the body. There is also the typical medical background check and examination of a client. Once all diagnostic methods have been employed, the practitioner then develops the best course for restoration and maintenance of health.
“When I receive a new patient, I sit down with them and explain that essentially I am looking at that particular client as if we are living thousands of years ago,” Hylla said. “It is important for my clients to realize that this medicine is 2,000 to 3,000 years old, and back then they didn’t have diagnostic tools.”
As a result, there are many different acupuncture points in one’s body that when a needle is inserted, stimulates what an acupuncturist calls Qi (pronounced as “chee”) and blood circulation. By inserting a needle into a specific area, the brain produces endorphins and releases those throughout the body for pain relief, Hylla said.
Most of the time, she said, health and harmony is
achieved when the correct quantity, quality and movement of Qi exists throughout the body, protecting it from illness, pain, and disease. Illness or lack of harmony is a direct result of reduced quantity, quality, and movement of Qi within the body.
“We knew people got sick from catching an external pathogen or something going wrong internally, but we didn’t know bacteria and virus back then like we do now. So, pathogens for us are completely different. They are things like wind and damp, dryness, cold and summer heat. Those are pathogens for us.”
Hylla likes to do what she calls a burst and taper approach, where she will treat her client a lot at the beginning and then slowly taper off to a form of maintenance or tune up session, which is completed at the client’s discretion. Hylla said acupuncture works differently for every person, as every person reacts a little differently to the treatment.
“I tell people that I will do the best I can to needle you and direct the flow of Qi but sometimes people won’t notice change in the area of pain they came in for,” she said.
“So for instance, if someone has a rotator cuff or shoulder pain, I may be needling them for that problem but they may come back the next time and say well, my pain is the same but I slept a lot better. Or, I have more energy now than I have in the past few weeks, but then I also have other people who walk right out of here and they don’t feel anything.”
She said that while Western medicine can treat some
Hylla chose her career after being helped by acupuncture during a pregnancy.
MNVB July p01.indd 19 6/19/2015 12:06:15 PM
20 • July 2015 • MN Valley Business
things better than an acupuncturist, an acupuncturist can also treat some things better than western medicine. For instance, she said an acupuncturist can do a lot for the common cold.
“If someone calls in for an appointment and says, ‘I’m not feeling well. I don’t think I should come in,’” Hylla said, “I say, ‘No. You need to come in.’ I know I can still help you. We may have to tweak your treatment a little bit, but I can help you to feel better.”
The part Hylla loves most as an acupuncturist is returning someone to optimal health, especially when a client hasn’t been able to get a diagnosis or successful treatment through traditional means.
“It may take some time in terms of treatments but at least they feel like they are being listened to and there is still hope,” Hylla said. “The unique thing about Traditional Chinese Medicine is that I could have five people come in with acid reflux and by western diagnosis standards, they all have the same medication and the same diagnosis. However, if they came in to see me, they each might have a different Traditional Chinese Medicine diagnosis. I may be needling each one of them different. So, our treatment plan is very client specific.”
While she treats a lot for chronic pain, she also works on fertility issues and has begun seeing cancer patients to help reduce nausea and vomiting from going through chemotherapy and radiation. MV
Sign of a golden opportunity.
http://c21landmarkrealtors.com
At CENTURY 21 Landmark Realtors -you will find local real estate professionals
that can help you turn your dreams into reality.
Let a CENTURY 21® Agent show you the way.We’re your real estate consultant. Your internet-listing guru.
And your sign it will be sold.
CENTURY 21 Landmark Realtors931 Madison Avenue, Mankato, MN 56001
507-345-1599http://c21landmarkrealtors.com
CENTURY 21® is a trademark licensed to Century 21 Real Estate LLC. An Equal Opportunity Company.Equal Housing Opportunity. Each office is independently owned and operated.
THANK YOU
MANKATO - St. Andrews Dr. 507.385.4444 & Madison Ave 507.625.1551AMBOY 507.674.3300 I VERNON CENTER 507.549.3679
www.cbfg.net
Thank you for voting us as one of the top three banks in the area. Locally owned and
managed, we provide a unique perspective to banking in the Greater Mankato area. To our customers who voted, thank you! If you’re not a
current customer, we invite you to consider banking with us and experience banking the Community Bank way.
Thank You for voting us #1
Best of Mankat
o
Best Auto Repai
r Best Auto Mechan
ic
LynnAustin
507-387-1315
1620 Commerce Drive, North Mankatowww.AustinsAutoRepairCenter.com
Woodhill Luxury Patio HomesMankato, MN
MNVB July p01.indd 20 6/19/2015 12:06:17 PM
MN Valley Business • July 2015 • 21
Sign of a golden opportunity.
http://c21landmarkrealtors.com
At CENTURY 21 Landmark Realtors -you will find local real estate professionals
that can help you turn your dreams into reality.
Let a CENTURY 21® Agent show you the way.We’re your real estate consultant. Your internet-listing guru.
And your sign it will be sold.
CENTURY 21 Landmark Realtors931 Madison Avenue, Mankato, MN 56001
507-345-1599http://c21landmarkrealtors.com
CENTURY 21® is a trademark licensed to Century 21 Real Estate LLC. An Equal Opportunity Company.Equal Housing Opportunity. Each office is independently owned and operated.
THANK YOU
MANKATO - St. Andrews Dr. 507.385.4444 & Madison Ave 507.625.1551AMBOY 507.674.3300 I VERNON CENTER 507.549.3679
www.cbfg.net
Thank you for voting us as one of the top three banks in the area. Locally owned and
managed, we provide a unique perspective to banking in the Greater Mankato area. To our customers who voted, thank you! If you’re not a
current customer, we invite you to consider banking with us and experience banking the Community Bank way.
Thank You for voting us #1
Best of Mankat
o
Best Auto Repai
r Best Auto Mechan
ic
LynnAustin
507-387-1315
1620 Commerce Drive, North Mankatowww.AustinsAutoRepairCenter.com
Woodhill Luxury Patio HomesMankato, MN
Cory GenelinAttorney at law
w w w . g i s l a s o n . c o m
507-387-1115
BUSINESSoperations and governance
EMPLOYMENT advising Employers on Policies,
investigations, Regulations,
Discipline
Representing Employers in mediation, litigation,
government audits
Representing Highly compensated Employees and owners
Regarding Buy/sell, severance,
non competes, wrongful Termination
BANKINGcrafting complex loan
agreements for lenders
Dealing with Troubled credits
Enforcing creditors’ Rights
MNVB July p01.indd 21 6/23/2015 10:14:42 AM
22 • July 2015 • MN Valley Business
Chad and Theresa Carlberg moved to Mankato in 2007 and saw an opening for a digital strategies, web development and marketing business.
Chad and Theresa Carlberg, met in Colorado through a co-worker of Theresa’s that had lived next door to
Chad. In 2007 the couple married a year later moved to Mankato where Chad was originally from.
As they worked in the Mankato area, the couple said they realized there was a lack of digital strategies and web presence in the business community. They began working with a few small businesses in the area to assist them in creating a strong web presence.
“In 2008, the recession was kicking into gear and a lot of businesses were struggling,” Theresa said. “It was kind of hard to afford traditional advertising for many business
owners who were struggling to keep doors open in the down economy. However, there was a very strong interest in taking things
online and of course, social media and digital a d v e r t i s i n g opportunities were
evolving quickly.”The couple started PresenceMaker, a full-
service, interactive marketing and web design company, in 2009. It was a natural fit for Theresa to handle sales and marketing support for clients and for Chad to handle search engine optimization and web development. Their individual interests and passions quickly became the foundation upon which their business strategy led to rapid growth. Today Theresa, the Director of
Spotlight
By Heidi SampsonPhotos by John Cross
Making their presence feltPresenceMaker offers integrated marketing/web
MNVB July p01.indd 22 6/19/2015 12:06:24 PM
Digital Communications and Chad, the Director of Business Development manage a staff of eight that provide an extensive range of services.
A Branding GroupMany clients use PresenceMaker as an advisor, operating
as an extension of their company’s internal resources, guiding their business branding, web development, marketing strategies social media outreach and more.
Recently, PresenceMaker expanded to include a Creative Director, Stacey Straka. Straka is well known for her 20 years of marketing and branding expertise locally.
“We are often positioned as an outsourced marketing department,” Theresa said. “Our team offers each client extensive expertise in a variety of areas to provide brand development and establish the appropriate goals and best practices to best serve the client’s needs.”
As a part of business branding and marketing strategies, PresenceMaker has also focused on developing websites, search engine optimization and digital strategies including social media to drive consumer engagement and revenue.
In 2013 the industry shifted heavily to responsive web design with Google making even more demanding changes for mobile devices this spring. Evolving quickly along with the industry, PresenceMaker said they build fully-responsive websites that provide optimal user experience on any device.
“Although the web development side is really only about half of our business, it’s highly rewarding to help clients realize their website’s full business potential,” Chad said. “For example, we’ve had clients come in knowing they wanted a website that looks professional, but after discussing their business, their internal processes and what they are doing that’s inefficient, we can offer solutions that enhance the usability of the website beyond what the client thought was possible. It’s exciting to exceed client expectations.”
Mobile needs increase
Some current website trends PresenceMaker is seeing are a dramatic increase in client’s need for mobile-friendly systems, e-commerce, database integration and pro jec t management software within the website.
For example, PresenceMaker can assist a client who always operates with paper time cards to transition over to a digital system that clocks and tracks employees who travel to three or four different locations during a given workday. This provides the client with an accurate time stamp of one’s workday.
PresenceMaker can also place a client’s entire paper documentation online while differentiating employee logins between managers and employees. This allows employees access to vital forms and documentation securely from a variety of devices, while managers are able to receive instant notification and access to any potential problems that may arise on the job site.
PresenceMaker’s emphasis is on designing web strategies and creative campaigns that weave together multiple marketing disciplines (paid advertising, public relations, promotion, owned assets, and social media) that are selected and then executed to suit the particular goals of the client.
Instead of simply using various media to help tell a brand’s overall story, the team said it leverages each communication channel’s intrinsic strengths to achieve a greater impact together than each channel could achieve individually. The concept, they say, provides added benefits that include a synchronized brand “voice” and experience, cost efficiencies generated through creativity and production, and opportunities for added value and bonus.
“Our goal is to be a comprehensive resource for our clients,” Theresa said. “The digital and traditional marketing strategies that come out of our door are second to none and provide a significant return on investment for our clients.” MV
PresenceMaker has grown steadily since it was established in 2009.
PresenceMaker designed the
website for the Mankato City
Center Partnership.
MNVB July p01.indd 23 6/19/2015 12:06:30 PM
24 • July 2015 • MN Valley Business
MANKATO 507.385.4485 AMBOY 507.674.3355 I VERNON CENTER 507.549.3679
INSURANCE OFFICES LOCATED IN THE COMMUNITY BANK BUILDINGS
www.cimankato.com
QUALITY INSURANCE WITH PERSONAL ATTENTION
In the market for Health Insurance? At Community Insurance we know shopping for health insurance can be overwhelming. Let our agents match you with the perfect plan. Whether you need individual, family, or group coverage, we’ll work with you to provide you with insurance that meets your needs.
WHERE YOUR POLICY COMES WITH AN AGENT
BrittanyLinder
Helping individual investorsand families manage theirmoney and make smart
financial decisions.
Adam K. Mans, CFA, CFP®
AKM Advisory, LLCwww.akmadvisory.com
DA
VID
SC
HO
OFF
Right Perspective.Successful Results.
As the Greater Mankato market continues to grow, we also recognize that there is a new generation of commercial investment buyers.
Buyers have a range of opportunity and can easily diversify their financial portfolio by owning investment property.
As your preferred commecial real estate firm, we can assist every step of the way.
507-625-4715 cbcfishergroup.com
BROKERAGE – DEVELOPMENT – MANAGEMENT
MNVB July p01.indd 24 6/19/2015 12:06:34 PM
MN Valley Business • July 2015 • 25
MANKATO 507.385.4485 AMBOY 507.674.3355 I VERNON CENTER 507.549.3679
INSURANCE OFFICES LOCATED IN THE COMMUNITY BANK BUILDINGS
www.cimankato.com
QUALITY INSURANCE WITH PERSONAL ATTENTION
In the market for Health Insurance? At Community Insurance we know shopping for health insurance can be overwhelming. Let our agents match you with the perfect plan. Whether you need individual, family, or group coverage, we’ll work with you to provide you with insurance that meets your needs.
WHERE YOUR POLICY COMES WITH AN AGENT
BrittanyLinder
DA
VID
SC
HO
OFF
Right Perspective.Successful Results.
As the Greater Mankato market continues to grow, we also recognize that there is a new generation of commercial investment buyers.
Buyers have a range of opportunity and can easily diversify their financial portfolio by owning investment property.
As your preferred commecial real estate firm, we can assist every step of the way.
507-625-4715 cbcfishergroup.com
BROKERAGE – DEVELOPMENT – MANAGEMENT
www.thomastreeandlandscape.com
19922 State Hwy 223 miles south on
Highway 22, Mankato
MNVB July p01.indd 25 6/19/2015 12:06:37 PM
26 • July 2015 • MN Valley Business
Damien Friesz owns Front Street Tattoo & Voss Fine Art Gallery in downtown Mankato.
While in Savannah, Georgia, Damien Friesz, owner of Front Street Tattoo & Voss Fine Art Gallery located in
downtown Mankato, began his career as a classically trained painter, receiving his Fine Art degree from the acclaimed Savannah School of Art and Design.
For nine years, he worked as a tattoo artist in Savannah and became an owner with eight talented tattoo artists under his employ. However, it was “flash” tattoo that really broaden Friesz’s recognition worldwide.
“Back when I was a young tattoo artist,” Friesz said, “I knew the old tattoo guys were doing really well and I couldn’t tell why. I’d go to conventions and they’d have their tattoo flash, which are designs developed into sets of
art works other tattoo shops can purchase and reproduce. I decided I was going to give flash a try. It was 1993, there was a recession in the
tattoo industry, and so I made a set of flash and went to a convention. The flash sold. By the
next show, I had five sets of flash and sold out again. By 1997, I had 10 sets of flash and eventually, I became the highest producer of flash in history.”
In about 2000, tattoo flash began to die off but sketchbooks quickly became the next big thing. Friesz created his first sketchbook, which consists of 40 paintings, during a Christmas flight to see family in Oregon. During the flight he sketched out the book, finished the paintings when he arrived back home and within two weeks, produced his
By Heidi SampsonPhotos by John Cross
Redefining fine artTattoos and fine art on Front Street
Feature
MNVB July p02.indd 26 6/19/2015 11:39:19 AM
MN Valley Business • July 2015 • 27
first sketchbook for sale. Today, sketchbooks are still his biggest selling item. He has published 28 books. In 2014, he moved to the Mankato area from Savannah and opened Front Street Tattoo & Voss Fine Art.
Fine Art gallery“Mankato is an interesting area. There really aren’t a whole lot
of art galleries here. I hope my business brings something unique to downtown.”
The Voss in Voss Fine Art Gallery is actually Friesz’s family name, as well as his middle name, which works to segregate the tattooing side of his business from the fine art side. According to Friesz, art buyers and collectors have a tendency to not purchase paintings where the artists name is associated with a tattoo business.
“If an art collector buys a painting,” he said, “they want that painting to have value in 20 years. If I put tattoo with my name, they just won’t believe the work will have any value down the road. It’s sad, but tattoo is still taboo around much of the world. People say it’s not, but it is.”
The Voss Fine Art Gallery generally features tattoo related subject matter. However, Friesz will paint or draw anything he or a client may be interested in. A typical painting can take hundreds of hours to complete, such as his paintings which feature girls with snakes. His skull paintings generally take between 80 and 100 hours. His Star Wars paintings take 350 hours. Recently, he began working on what he calls “minis,” which are for collectors who don’t have $600 to spend on a full-size painting.
“We have 1500 square feet of space in the basement, which is perfect because I also do a lot of casting, sculpting, and all of my own framing. Outsourcing can be difficult when dealing with
Top: Friesz has built a wide reputation for his tattoo work. Right: Friesz often spend hundreds of hours on the colorful, detailed artwork he produces.
MNVB July p02.indd 27 6/19/2015 11:39:26 AM
28 • July 2015 • MN Valley Business
shipping and people, who actually have to have the products available when you need them. I just started doing everything that I could by myself. It eventually got the point where I got good at doing all of the stuff I needed to do.”
Pilfered designs According to Friesz, about 10 percent of the population
will get a tattoo. With the advent of reality television and shows based on tattooing as a profession, the tattoo artist population went from 5,000 tattoo artists to 100,000 tattoo artists virtually overnight. The biggest issue he faces on a regular basis has been Internet pirating of his work. Once he’s posted his work online, he’ll see his paintings and tattoo designs elsewhere on the web in 24 hours.
“People say real collectors will know the difference. No, they won’t. Or, I hear that I should be flattered, but it’s not flattering. Maybe if I were dead, it would be flattering but I’m still trying to pay my bills. It’s super frustrating. With that in mind, I will not trace a tattoo that belongs to someone else either. It’s all too easy to steal people’s original work today,” Friesz said.
“I won’t participate in that. If you come in with a photo of a tattoo on your phone, chances are I know the artist who created it. I can draw something similar. However, I will not copy someone else’s work.”
For Friesz, the best of all worlds in business is having all of his passions in one location. Front Street Tattoo & Voss Fine Art Gallery is open Friday through Sundays. Tattoo’s are by appointment, but he will also take walk-ins. The best way to reach Friesz has been through Facebook or his website. Given his relatively new business in the Mankato area, most of his success has been through word of mouth. Originally, he had intended to advertise but couldn’t decide which venue, the fine art or the tattooing side of his business.
“Because I am a tattoo artist, I never want to stop tattooing,” Friesz said. “People will find that I am a very reasonable tattoo artist. The reason why I’m reasonable is because I’ve worked in shops all over the country, and I’ve already experienced ownership. There is no reason to price gouge and absolutely, no reason to bully your clientele. If you want a portrait of a butterfly or your mom, it’s my job to draw it and draw it well. It’s not my job to make fun of my clients or to belittle them for their choices,” he said.
“I’m pretty casual about the tattooing side of the business. Tell me when you want to get tattooed and I will work with you.” MV
Website: http://frontsttattoo.com/home.html
With a degree from Savannah School of Art and Design, Friesz produces fine art for his gallery along with his tattoo work.
MNVB July p02.indd 28 6/19/2015 11:39:27 AM
MN Valley Business • July 2015 • 29
Construction/Real Estate
C. Sankey
3.0
3.5
4.0
4.5
5.0
5.5
DNOSAJJMAMFJ
01000020000300004000050000600007000080000
DNOSAJJMAMFJ 0
500
1000
1500
2000
DNOSAJJMAMFJ
0
55
110
165
220
275
DNOSAJJMAMFJ 0
10
20
30
40
DNOSAJJMAMFJ
0
1000
2000
3000
DNOSAJJMAMFJ0
2750
5500
8250
11000
DNOSAJJMAMFJ
Source: City of Mankato
Residential building permits Mankato (in thousands)
- 2014 - 2015
Source: City of North Mankato
Residential building permits North Mankato(in thousands)- 2014 - 2015
Source: Realtors Association of Southern Minnesota
Existing home sales: Mankato regionInformation based on Multiple Listing Service and may not refl ect all sales- 2014 - 2015
Source: Cities of Mankato/North Mankato
Housing starts: Mankato/North Mankato- 2014 - 2015
Source: City of Mankato
Commercial building permits Mankato (in thousands)
- 2014 - 2015
Source: City of North Mankato
Commercial building permits North Mankato(in thousands)- 2014 - 2015
Source: Freddie Mac
Interest Rates: 30-year fi xed-rate mortgage— 2014 — 2015
Includes single family homes attached and detached, and town homes and condos
Source: Minnesota Foreclosure Partners Council
Foreclosures: 2014 Year End
1011927702543393624
72212147282422277
-29%+11%-22%-33%+12%-44%-44%-25%-71%
Blue EarthBrownFaribaultLe SueurMartinNicolletSibleyWasecaWatonwan
County 2013 2014 Percent change
$882
$3,699$826
$452
98174
15
9
$9,885$1,236
$100$201
3.8%
4.3%
MNVB July p02.indd 29 6/19/2015 11:39:28 AM
30 • July 2015 • MN Valley Business
The mandatory Country of Origin Labeling (COOL) regulation was initiated for certain U.S. meat products and other foods in 2009, as part of the
2008 Farm Bill. The purpose of the regulation was to provide a required method for consumers to have more label information about the origin of certain food products. Now, a ruling by the World Trade Organization could challenge the future COOL.
COOL regulations have been controversial and highly politicized since the legislation was first introduced in the 2002 Farm Bill. Some consumer and farm organizations, along with some members of Congress, have strongly supported the COOL regulations, and continue to support COOL, even after the recent WTO ruling. However, other farm groups, meat processors, and other members of Congress oppose the requirements just as passionately.
The regulations require a retail label stating the “country of origin” for beef, veal, pork, lamb, goat, chicken, wild and farm-raised fish and shellfish, fresh and frozen fruits and vegetables, peanuts, pecans, macadamia nuts, and ginseng sold by retailers. In the case of the meat products, it only applied to the muscle cuts and ground products, and did not apply to processed products such as hot dogs, lunch meat, cured products, etc.
In 2013, in response to live animals being transported into the U.S. from Canada and Mexico, USDA amended the regulation to specify where the animal was born, raised, and slaughtered. Under these revised definitions, there are now four potential COOL labeling categories for meat products: Born, Raised, and Slaughtered in the U.S.; Born in (Country X), Raised, and Slaughtered in the U.S.; Born and Raised in (Country X), and Slaughtered in the U.S.; Product of (Country X).
The WTO was set up many years ago to expand international trade by resolving trade disputes between countries and by lowering existing trade barriers and preventing new barriers. The WTO is basically a world trade “court” or “referee” to make sure that trade policies or regulations implemented by a country do not unfairly have negative impacts on trade of similar products with another country. The WTO hears both sides of trade disputes between countries, and then decides if a trade distortion claim by a country has merit. The WTO is a powerful institution with a staff set up to enforce international trade policy.
Canada and Mexico filed a complaint with the WTO stating that the COOL regulations in the U.S. have put beef cattle and hogs originating from the two countries at an unfair trade advantage. The complaint indicated that COOL requirements have forced U.S. processors to segregate cattle and hogs from Canada and Mexico separately from U.S. livestock, or to totally reject these cattle and hogs. The complaint states that the U.S. COOL regulations have added considerable expense to the meat processing industry, and have cost livestock producers and the agriculture industries in Canada and Mexico billions of dollars. The WTO recently ruled in favor of the COOL
complaint that was filed by Canada and Mexico. This was the fourth time in the past few years that the WTO has ruled that the COOL regulation is negatively impacting the livestock industries in Canada and Mexico.
Following the ruling, the two countries can now petition the WTO to retaliate against the U.S., if there are not acceptable corrections made to COOL. The trade retaliation would likely include the implementation of tariffs on certain agricultural imports from the United States that go into Canada or Mexico. This could make certain U.S. products less competitive in export markets, compared to similar products from other countries that are exported to Canada or Mexico. Products mentioned for possible tariffs include beef, pork chicken, cheese, bakery goods, apples, rice, and quite likely corn and ethanol. It would definitely have a big effect on the U.S. agriculture industry.
Canada and Mexico are the largest export markets for U.S. products. In 2014, total U.S. exports to Canada were valued at $312 billion, and total exports to Mexico were valued at $240 billion. Canada and Mexico are Minnesota’s top ag export customers, accounting for 53 percent of the state’s total agricultural exports. In 2014, Minnesota exported approximately $912 million of total agricultural and food products to Canada alone. Disruption of export trade with Canada and Mexico could greatly impact markets for pork, beef, corn, ethanol, and bakery products, originating from the Upper Midwest. Some fear that the retaliation could extend beyond agricultural products to other U.S. manufactured products.
The 2014 Farm Bill, which was passed by Congress and signed into law, did not change the COOL requirements from the USDA adjustments that were made in the 2013. The 2014 Farm Bill did require USDA to do an economic analysis of the current COOL regulations. That study, which was released in early May of 2015, was conducted by USDA economists and leading economists from major universities. The study concluded that there was no economic benefit to the meat industry, or the U.S. economy as a whole, from the COOL labeling requirements for beef, pork, and chicken. The study also concluded that there is considerable consumer interest in the COOL regulations, but very little likelihood of increased consumer demand for meat products as a result of COOL.
In response to the latest WTO ruling, legislation has now been passed by the U.S. House that would eliminate the COOL requirements for beef, pork, and chicken muscle and ground products. There is considerable bi-partisan support for this legislation in Congress, especially from states that could be facing significant economic impacts from trade retaliation by Canada and Mexico. Many agricultural and food processing groups have also supported this legislation. However, some other leaders in Congress, along with several other farm organizations and consumer groups, have called on USDA to try to work with Canada and Mexico to “tweak” the current COOL requirements to make them acceptable to the WTO, as
COOL regulations threatening ag trade
■ Agricultural OutlookBy Kent Thiesse
MNVB July p02.indd 30 6/19/2015 11:39:28 AM
MN Valley Business • July 2015 • 31
50
65
80
95
110
125
140
DNOSAJJMAMFJ 15
18
21
24
27
30
DNOSAJJMAMFJ
0
4
8
12
16
20
DNOSAJJMAMFJ0
2
4
6
8
DNOSAJJMAMFJ
Agriculture/Agribusiness
Corn and soybean prices are for rail delivery points in Southern Minnesota. Milk prices are for Upper Midwest points. C. Sankey
Corn prices — southern Minnesota
Source: USDA
(dollars per bushel)— 2014 — 2015
Iowa-Minnesota hog prices
Source: USDA
185 pound carcass, negotiated price, weighted average— 2014 — 2015
Milk prices
Source: USDA. Based on federal milk orders.
Minimum prices, class 1 milkDollars per hundredweight
— 2014 — 2015
Soybean prices — southern Minnesota
Source: USDA
(dollars per bushel)— 2014 — 2015
$110.16
$77.63
$3.27
$4.18
$17.36
$26.27
$9.27
$14.23
Serving your banking needs since 1883
Phone: 507-931-3310www.NicolletCountyBank.com
220 South Third StreetSt. Peter, Minnesota
Nicollet County Bank
Experience and skillmake us your partnersfor success.• Appraisals• Agricultural Property Management• Agricultural Real Estate Sales• Commercial Property Management• Commercial Leasing
507-359-2004 • www.ummc.coNew Ulm • Olivia • New Hope • Faribault
well as to Canada and Mexico.The COOL regulation has not caused
much discussion in the retail food industry in the U.S. since its inception in 2009; however, the recent WTO ruling against COOL has now moved the COOL debate back to the front burner. This WTO ruling appears to have the potential to greatly impact future export markets to Canada and Mexico for U.S. livestock, meat, and other agricultural products. Even some former supporters of COOL are now questioning if the U.S. can afford to maintain the existing COOL requirements with Canada and Mexico for meat products. It is now up to the USDA and Congress to either eliminate COOL requirements for U.S. meat products, or to figure out a workable solution to maintain the desired consumer wishes of COOL. Failure to accomplish this could have a large negative impact on agricultural exports, and cause economic hardship to the U.S. livestock industry. MV
Kent Thiesse is farm management analyst and vice president, MinnStar Bank, Lake Crystal. 507- 381-7960; [email protected]
MNVB July p02.indd 31 6/19/2015 11:52:36 AM
32 • July 2015 • MN Valley Business
Employment/Unemployment
C. Sankey
0
50000
100000
150000
200000
DNOSAJJMAMFJ0
2000
4000
6000
8000
10000
DNOSAJJMAMFJ
0
1000
2000
3000
DNOSAJJMAMFJ100000
111000
122000
133000
DNOSAJJMAMFJ
*Categories don’t equal total because some categories not listed.
Services consist of administration, educational, health care and social assistance, food and other miscellaneous services.
Initial unemployment claimsNine-county Mankato region
21112644
284665
8323835
207563
-60.7%+88.9%-20.5%-27%
-15.3%
ConstructionManufacturingRetailServicesTotal*
Major Industry
June Percent change‘14-’15‘14 ‘15
*Categories don’t equal total because some categories not listed.
Services consist of administration, educational, health care and social assistance, food and other miscellaneous services.
Minnesota initial unemployment claims
3,1911,9261,1325,426
11,675
2,3002,548939
4,50910,296
-27.9%+32.3%
-17%-17%
-11.8%
ConstructionManufacturingRetailServicesTotal*
Major Industry
June Percent change‘14-’15‘14 ‘15
Local non-farm jobsNine-county Mankato region
- 2014 - 2015 Minnesota Local non-farm jobs(in thousands)
- 2014 - 2015
Local number of unemployedNine-county Mankato region
- 2014 - 2015 Minnesota number of unemployed - 2014 - 2015
Mankato/North Mankato Metropolitanstatistical area
(includes all of Blue Earth and Nicollet Counties)
Unemployment rates Counties, state, nation
Source: Minnesota Department of Employment and Economic Development
3.1%
55,465
1,802
2.9%
57,185
1,703
Unemployment rate
Number of non-farm jobs
Number of unemployed
May 2014 2015
Blue EarthBrownFaribaultLe SueurMartinNicolletSibleyWasecaWatonwanMinneapolis/St. PaulMinnesotaU.S.
3.2%4.2%4.8%4.5%3.9%2.8%4.0%6.2%4.4%3.7%3.8%6..1%
3.0%4.2%4.2%4.1%4.4%2.8%3.8%5.3%4.4%3.5%3.6%5.3%
County/area May 2014 May 2015
126,376
126,556
2,8672,920
4,7255,308
109,388125,593
MNVB July p02.indd 32 6/23/2015 11:07:10 AM
MN Valley Business • July 2015 • 33
0
100
200
300
400
500
DNOSAJJMAMFJ
0
17000
34000
51000
68000
85000
DNOSAJJMAMFJ0
10000
20000
30000
40000
50000
60000
DNOSAJJMAMFJ
0
200
400
600
800
1000
1200
DNOSAJJMAMFJ
0
1
2
3
4
5
DNOSAJJMAMFJ
0
1
2
3
4
5
DNOSAJJMAMFJ
Retail/Consumer Spending
$387$406
$55,837$59,000
884
798
$45,279$56,900
$3.56
$2.49
$3.50
$2.53
(In thousands)
C. Sankey
Vehicle Sales Mankato — Number of vehicles sold
Source: Sales tax fi gures, City of Mankato
- 2013 - 2014
Lodging tax collections Mankato/North Mankato
Source: City of Mankato
- 2013 - 2014
Gas prices-Mankato
Source: GasBuddy.com
— 2014 — 2015
Gas prices-Minnesota — 2014 — 2015
Mankato food and beverage tax
Source: City of Mankato
- 2013 - 2014
Sales tax collections Mankato
Source: Sales tax fi gures, City of Mankato
- 2013 - 2014
Includes restaurants, bars, telecommunications and general merchandise store sales. Excludes most clothing, grocery store sales.
Archer Daniels
Ameriprise
Best Buy
Crown Cork & Seal
Eventis
Fastenal
General Growth
General Mills
Hutchinson Technology
Itron
Johnson Outdoors
3M
Target
U.S. Bancorp
Wells Financial
Winland
Xcel
Stocks oflocal interest June 17May 11
Percent change
-1.3%
+2.3%
-8.0%
-0.3%
+4.8%
+0.6%
-0.7%
-1.5%
-1.8%
-2.0%
-13.3%
-1.8%
+1.8%
+2.1%
-1.4%
+21%
-2.5%
$50.94
$128.35
$34.01
$54.98
$21.17
$42.71
$27.09
$55.25
$1.99
$35.14
$24.04
$156.95
$82.10
$44.63
$28.35
$1.46
$32.57
$51.60
$125.42
$36.97
$55.13
$20.21
$42.47
$27.27
$56.07
$2.03
$35.60
$27.74
$159.90
$80.61
$43.75
$28.75
$1.20
$33.42
MNVB July p02.indd 33 6/19/2015 11:39:30 AM
1 • JANUARY 2013 • MN Valley Business
Gre
ater
Man
kato
Gro
wth
Greater M
ankato Grow
th
Over the last three years our region has seen more than half a billion dollars in economic development investments. From new business
build-outs to infrastructure and private investment, the diversity of investment types and confidence shown from these investments continue to gain state and national attention.
“Just look around the region, you can see the cranes, you can see the construction everywhere. The economy across the Midwest is doing very well, especially in this region” said Corey Brunton, President & Owner of Brunton Architects & Engineers. Brunton Architects & Engineers has seen a 20-25% growth rate in their business every year since starting their business in Mankato eight years ago. The growth of his business is not unique, many businesses in the development industry are experiencing similar situations.
The Greater Mankato marketplace is also known for its strong private – public relationships. Through these relationships and the Regional Economic Development Alliance (REDA) we all come together to leverage each other’s strengths and contribute to the strongest economic ecosystem possible. Each member of REDA recognizes that they contribute and enhance each other’s community; where people work, live or do business is not always in the same zip code.
From the communities of REDA, here are updates on what’s going on in economic development around the region:
Eagle Lake The City of Eagle Lake has seen substantial growth. In fact, Eagle Lake has recently been recognized as the 5th fastest growing community in Minnesota. At the 2013 census Eagle Lake’s population was 2,533 and as of July 1, 2014 the population was estimated at 2,688, a 6.12% population increase. Eagle Lake has benefited from substantial growth in single family living units, both in homes and townhome construction. Residents enjoy living in a smaller community with a larger community close at hand. Also appealing to residents are beautiful city parks and easy access to a trail connecting Eagle Lake to Mankato as well as the close proximity of the Sakatah State Trail. Lake Crystal The City of Lake Crystal is currently focused on three key efforts: an addition to its elementary school, retail expansion in its central business district and implementation of a load management program for the city’s electrical utility customers. Additionally, the City is focusing on industrial park expansion, particularly land and infrastructure improvements, and the Economic Development Authority (EDA) is working to acquire and develop vacant lots that have gone into default. The Lake Crystal Chamber in partnership with business owners, the Mayor and the City is working to repurpose the downtown, to create a unique niche and attract retail establishments. Le Sueur Ongoing job growth in Le Sueur has prompted community interest in providing additional, varied housing choices for current and new residents. In
Region on the
RISENicollet
County
Blue Earth County
Saint
Peter
Le
Sueur
North
Mankato
Mankato
Lake Crystal
Eagle Lake
Madison
Lake
34 • July 2015 • MN Valley Business
MNVB July p02.indd 34 6/19/2015 11:39:30 AM
1 • JANUARY 2013 • MN Valley Business
Gre
ater
Man
kato
Gro
wth
Greater M
ankato Grow
th
2014, Le Sueur’s Economic Development Authority completed a community-wide housing study, which analyzed up-to-date population and housing market data and provided an assessment of specific housing needs along with recommendations to meet those needs. Initial actions to implement the study include seeking grant funds for housing rehabilitation purposes, creating a program to develop new homes within a tax-forfeited subdivision, providing support, including education, counseling and financial assistance, to likely homeowners in obtaining affordable housing and initiating an ongoing housing and redevelopment program.
Madison Lake The City of Madison Lake is nearing completion of two major construction projects. The first is providing water, sewer and streets to newly annexed properties around Duck and Ballantyne Lakes. The second project with the help of Blue Earth County is the reconstruction of County State Aid Highway 26 (CSAH26) which includes reconstructing and giving a facelift to Main Street. Additionally, there is a new farmers market on Saturday mornings and the American Legion is finishing up a Veterans Memorial at North Shore Park. Madison Lake enjoys being a partner community and working together to help make the region even stronger! Mankato Expansion of the civic center and construction of three new multi-story buildings is underway, adding more than 200,000 square feet of new space to Mankato’s City Center. Development within Eastwood Industrial Park is robust, with three new facilities under construction, including buildings for FedEx, Spee-Dee Delivery and Walmart Distribution Center. Commercial development underway includes new facilities for AT&T, CCF Bank, Dairy Queen, Graif Clothing, Kwik Trip, Little Stars Early Learning Center and the Mankato Design Center. Additionally, several hundred apartment units have been approved for construction and additional multi-family housing is proposed.
North Mankato Construction is underway on two projects within the Northport Industrial Park. The first is a 25,000 sq. ft. new building to accommodate D & K Powder Coating. The second is a 10,000 sq. ft. addition to the existing Creative Companies building. The North Mankato Port Authority has entered into a land purchase agreement with Met-Con Companies to construct a 50,000 sq. ft. warehouse in the Industrial Park to be expanded to 150,000 sq. ft. in the future. Within the Northport Industrial Park, a 38 acre site has been given a “Primary” designation by Deliotte Consulting meaning the site is ready for immediate development of a data center.
Saint Peter
The City and the School District continue to plan the site of the
voter approved $58 million high school construction project which will commence later in 2015. The $63 million expansion of the Regional Treatment
Center began in early 2015 while the $10 million Nicollet
County Health & Human Services building will be occupied late in
2015. The central business district remains essentially 100% occupied while retail development is planned on the north Highway 169 strip. Private interests are seeking to redevelop vacant parcels in the Saint Peter Commercial Historic district to provide commercial and residential opportunities in the core of the city.
In 2009, the Regional Economic Development Alliance (REDA) began with a progressive group of communities and
counties joining together with Greater Mankato Growth in business attraction and development efforts. REDA participants include Eagle Lake, Lake Crystal, Le Sueur, Madison Lake, Mankato, North Mankato, Saint Peter and Blue Earth County. By working together, the group is able to efficiently provide regional and individual city and county information to businesses interested in the Greater Mankato marketplace. As a result of promoting the individual strengths of each community, along with the combined assets of the regional marketplace, all experience collective success. For more information on REDA visit greatermankato.com/regional-alliance
REDAregional economicdevelopment alliance
AmboyEagle Lake
Lake CrystalLE Sueur
Madison LakeMankato
MapletonSaint peter
blue earth countynicollet county
MN Valley Business • July 2015 • 35
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1 • JANUARY 2013 • MN Valley Business
Gre
ater
Man
kato
Gro
wth
Greater M
ankato Grow
th
36 • July 2015 • MN Valley Business
NOMINATE A DESERVING BUSINESS OR PROFESSIONAL
Now is your opportunity to nominate a deserving business or professional you know for the Greater Mankato Business Awards & Hall of Fame. The 2015 event will be held on November 17 and is a time where Greater Mankato Growth, Visit Mankato and City Center Partnership honor the outstanding businesses, professionals and organizations within the Greater Mankato community. Nominations will be accepted until September 22. For more information, nomination forms and to see past recipients visit: greatermankato.com/business-awards-hall-fame.
Alive After 5 sponsored by Schell’s Brewery returns to Greater Mankato this August on Thursdays from 5 – 8
pm in Jackson Park. Gather with your co-workers, friends or family to enjoy live music, food and beverages in the relaxed outdoor setting of City Center Mankato. Mark
your calendar and be sure to join us on August 13 as the Alive After 5 free summer concert series kicks off. Learn
more at citycentermankato.com
Music Line Up:August 13 - The Dead Pigeons
August 20 - Crankshaft and The Gear GrindersAugust 27 - The Whiskies
September 3 - Gypsy Lumberjacks
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Business After and Business Before Hours gives representatives from GMG member businesses at the Engaged Level or higher an opportunity to get together with one another to exchange ideas and learn about each other’s businesses. For more information on these and other member events, visit greatermankato.com/events.
May Business After Hours hosted by MTU Onsite Energy
May Business Before Hours hosted by Brunton Architects & Engineers
July 15 Friesen’s Family Bakery & Bistro, and Vanderberg Cleaning Services in Old Town CenterAugust 19 Minnesota Valley Federal Credit UnionSeptember 16 Monarch MeadowsOctober 21 South Central College November 11 EnventisDecember 16 Wells Federal Bank
2015 Business After Hours Sponsored by:
2015 Business Before Hours Sponsored by:
7:30 - 9:00 am5:00 - 7:00 pm
July 7 CambriaAugust 4 Unique Specialty & ClassicsSeptember 1 Mayo Clinic Health System - EastridgeOctober 6 I+S GroupNovember 3 Blethen, Gage & KrauseDecember 1 Gislason & Hunter
Alive After 5 sponsored by Schell’s Brewery returns to Greater Mankato this August on Thursdays from 5 – 8
pm in Jackson Park. Gather with your co-workers, friends or family to enjoy live music, food and beverages in the relaxed outdoor setting of City Center Mankato. Mark
your calendar and be sure to join us on August 13 as the Alive After 5 free summer concert series kicks off. Learn
more at citycentermankato.com
Music Line Up:August 13 - The Dead Pigeons
August 20 - Crankshaft and The Gear GrindersAugust 27 - The Whiskies
September 3 - Gypsy Lumberjacks
With a #3 ranking on Forbes 2014 list of “Best Small Places for Business and Careers”, #5 rank as a Best Small City in America and 8th in the nation for Work - Life Balance it is no wonder Greater Mankato is The Way to Grow. Greater Mankato Growth recently released a new video that highlights what it’s like to live, work and play in the Greater Mankato region. The video is a tool that can be used to paint the picture of the vibrant economy and culture our community has to offer. Visit greatermankato.com/way-to-grow for a first hand look at the new video and many other resources that can be used when showcasing the region.
greater
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GROW
Showcase the Greater Mankato Community with the new Way to Grow Video
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Growth in Greater Mankato GRAND OPENING
Children’s Museum of Southern Minnesota 224 Lamm Street Mankato, MN
GROUNDBREAKING
CCF Bank 180 St. Andrews DriveMankato, MN
Cavaliers
Newest Greater Mankato Growth Members
Cavalier Calls on the
NEW BUSINESS
Connect Real Estate Group 285 St. Andrews Drive, Suite 200 Mankato, MN
Evolve Consulting, LLC 826 North 9th Street Saint Peter, MN evolve-consulting.com
BMO Harris Bank 50 South 6th Street, Suite 1000 Minneapolis, MN bmo.com
Aurora Chiropractic, LLC 1051 Madison Avenue, Suite 2 Mankato, MNaurorachiropractic.org
Committee Against Domestic Abuse Inc. 100 Stadium Court Mankato, MN inspire-hope.org
J-C Press 785 Southwest 24th Avenue Owatonna, MNj-cpress.com
NEW BUSINESS
Jonny B’s12 Civic Center Plaza, Suite 1675 Mankato, MN
RIBBON CUTTING
KTV 700 Luther DriveMankato, MN
GRAND OPENING GROUNDBREAKING
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Training camp will paint the town purple and gold for the 50th
season in Mankato. The Vikings 50th Camp Committee has been working with the Vikings to make the 50th Vikings Training Camp extra special by putting together a list of events to commemorate this significant year. Camp information will be updated
frequently on the Visit Mankato Vikings webpage, vikingsmankato.com.
Vikings fever will take over Mankato from July 26 - August 13 as fans attend practices, autograph sessions and special events. Typically Camp generates about $5 million in economic impact. There is a great chance this year will bring a much greater impact which will have a long term effect as visitors come for Camp but discover that Greater Mankato has much more to offer visitors.
Much like Duluth saturates its community with Tall Ship mania, it is important that our community visibly show its pride in hosting the longest continuous running training camp in the country. To assist our community in showing their Vikings spirit, Visit Mankato is offering a Vikings Business Package, which includes Training Camp posters, stickers for front line staff and commemorative Vikings Camp t-shirt. Businesses are also encouraged to participate in the annual Vikings Spirit Contest. Businesses and employees are encouraged to deck out themselves and their workplace in purple and gold to show their Vikings spirit. The business who bleeds purple and gold the proudest throughout training camp will be awarded Vikings memorabilia from Viktor himself.
July and August allow Mankato to show off all it has to offer. Bring out your beads, jerseys and Vikings horns. Training camp is right around the corner!
Training Mankato Style for 50 Years
Vikings Training Camp Events not to be missed:
Friday, July 17 – A Mankato MoonDogs game will kick off the Vikings celebration. There will be plenty of alumni interaction from throwing out the first pitch to autograph signings.
Saturday, July 18 – The Blue Earth County Historical Society’s Vikings Memorabilia Exhibit will open and will run through August 31st. Fans are encouraged to borrow memorabilia to the exhibit and can do so by contacting the Historical Society directly.
Saturday, July 25 – The annual Welcome Party will take place as the Minnesota Vikings arrive at Minnesota State University, Mankato. Fans will be decked out in their favorite Vikings apparel, lined up for their player’s autographs and participate in fun festivities.
Friday, July 31 – A Taste of Mankato event will be held in the Mankato City Center. Alumni will be serving up great meals to fans and proceeds from the evening will be split between the Vikings Children’s Fund and a local charity.
Saturday, August 1 – Fan Night with practice under the lights, fireworks, alumni, a 50th Year Ceremony and a kick-off to Hall of Fame week.
Sunday, August 9 – Ribfest will be splashed in purple and gold with a special Vikings twist to this very popular musical event.
From left to right: Jim Marshall, Carl Eller, Alan Page, Gary Larsen Photo courtsey of the Minnesota Vikings
By: Ashley Brittain, Visit Mankato Intern
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TO PLAN YOUR VISIT to Alabama’s Robert Trent Jones Golf Trail, visit rtjresorts.com or call 1.800.949.4444 today. facebook.com/rtjgolf twitter.com/rtjgolf
HI, I’M JOE TAYLOR. Overton, Texas. What keeps me coming back to the Trail? It’s just absolutely sensational. I have people tell me what they’ve spent playing one round at Pebble Beach and a night at the hotel, or going to Pinehurst for a couple rounds. We do the entire week, travel, hotel, green fees, good meals and everything for the price of one day at these places. And it’s absolutely a sensational place to come.
RTJ747JoeTaylorAD_CNHImags.indd 1 3/28/14 12:17 PM
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TO PLAN YOUR VISIT to Alabama’s Robert Trent Jones Golf Trail, visit rtjresorts.com or call 1.800.949.4444 today. facebook.com/rtjgolf twitter.com/rtjgolf
HI, I’M JOE TAYLOR. Overton, Texas. What keeps me coming back to the Trail? It’s just absolutely sensational. I have people tell me what they’ve spent playing one round at Pebble Beach and a night at the hotel, or going to Pinehurst for a couple rounds. We do the entire week, travel, hotel, green fees, good meals and everything for the price of one day at these places. And it’s absolutely a sensational place to come.
RTJ747JoeTaylorAD_CNHImags.indd 1 3/28/14 12:17 PM
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