October 2011 - Alaska Business Monthly by Alaska Business

Best Workplaces ■ Cancer Awareness ■ HR Matters

October 2011

$4.95

TOP 49ERS Page 60

They may not leap from high buildings, or rescue ladies in distress, but they are Alaska’s home-grown superheroes.

leather seats, no

aluminum wheels, no

rear defroster, no

keyless entry, yes

There are plenty of options in Alaska – America’s Last Frontier. Naturally, we’re proud to be a part of it.

XTO Energy Inc. 810 Houston Street Fort Worth, Texas 76102 817.870.2800 www.xtoenergy.com

OCTOBER 2011 TA B L E O F C O N T E N T S

ABOUT THE COVER

D E PA R T M E N T S From the Editor . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . . 8 Events Calendar . . . . . . . . . . . . 53 Right Moves . . . . . . . . . . . . . . . . 56 Market Squares . . . . . . . . . . . . 154 Alaska Trends . . . . . . . . . . . . . . 159 Ad Index . . . . . . . . . . . . . . . . . . 162 R E G U L A R F E AT U R E S

View From the Top 11 | Lynn Johnson, President Dowland-Bach By Peg Stomierowski Regional Review 26 | Pacific Northwest: Rich in Resources Region sees mix of loss, gain in economic sectors during national recession By Tracy Barbour

Everyone knows the state has been hit – some – by the recession. But most know we have not been hit as hard as our Lower 49 counterparts. By the looks of our Top 49ers, the top Alaskanowned and -operated businesses in the state based on 2010 gross revenues, we are doing well. Well indeed. Special section begins on page 60. Illustration 2011© Milan Zeremski. ARTICLES

Military 12 | Putting Generals in Charge Civilian world learns from armed forces leadership techniques By Heidi Bohi Native Business 20 | Leadership ANPA Style Alaska Native Professional Association grows young professionals into leaders By Gail West

Energy 46 | Nuclear Power for Alaska Small-scale ideas for the future By Rindi White Manufacturing 48 | Manufacturers Face Harsh Realities Producing products in Alaska means freight, financing and a host of other challenges By Gail West

Technology 22 | Wake Up to the Habits of Digital Natives How interaction and immersion affect your business By Ross Johnston

Alaska This Month 52 | Alaska Federation of Natives Event Unifies Participants Annual convention features forums, arts and crafts show, dance performances By Nancy Pounds

General 116 | Best Workplace Practices Retain those employees with leadership that works By Heidi Bohi

Fishing 34 | Gillnetters Target Up-Market Salmon Sales Juneau partnership supplies high-end buyers with Alaska delicacy By Paula Dobbyn

Oil & Gas 120 | Crude Oil: Different Elements Affect Values Thick and thin, sweet and sour, all flow through TAPS By Mike Bradner

Associations 58 | Association of Village Council Presidents Western Alaska nonprofit serves 56 tribes By Tracy Barbour

Fisheries OP-ED 38 | Seafood Economics Alaska’s catch provides jobs, feeds national and international markets By Tyson Fick

Oil & Gas 125 | Valdez Tug Pilots Climbing Jacob’s Ladder By Mike Bradner

HR Matters 119 | Tragedy Strikes the Workplace Reaching out to grief-stricken employees By Lynne Curry

Energy 40 | Using Diesel More Efficiently Reducing consumption, cost and pollution in Alaska By Julie Stricker

OP-ED 129 | Knik Arm Crossing Moving From a Concept to a Contract More than 100 participants from biggest national and international firms By Michael Foster

Marketing Works 146 | Effective Social Marketing Using push and pull networking By Ron “Cat” Mason

Energy SIDEBAR 42 | Searching for Diesel Efficiency Testing Bering Sea technology on rural generators By Julie Stricker

Management 130 | Labor and Management Working together for a stable future By Nicole A. Bonham Colby

Towns in Transition 32 | Kenai/Nikiski Oil/gas exploration swings up, then down, then up again By Heidi Bohi

www.akbizmag.com • Alaska Business Monthly • October 2011

OCTOBER 2011 TA B L E O F C O N T E N T S ARTICLES (cont’d.)

Management SIDEBAR 131 | Building the Future Cattanach’s vision catapults academies into existence

SPECIAL SECTION

2011 Alaska Top 49ers:

Superheroes of Success

Health & Medicine 134 | Care Through the Cancer Continuum From prevention to treatment to survivorship, organizations offer help each step of the way By Vanessa Orr

This is the 27th year Alaska Business Monthly has honored the Top 49 Alaskan-owned and -operated businesses in the state, based on gross revenue. These companies help our economy in a variety of ways – providing jobs, enhancing the state economy, giving out dividends, and a whole lot more.

Health & Medicine 138 | Alaska’s Fitness Industry Still healthy despite country’s recession ills By Nicole A. Bonham Colby Education 140 | Higher Education Draws Alaskans Enrollment growing or stable at most institutions By Dianne O’Connell

60 | Superheroes of Success

Saving Alaska through high-quality jobs, revenue to the state and robust growth By Debbie Cutler

Manufacturing 144 | Alaska Brands Group Revives Bottling Company Firm eyes markets in Lower 48, Asia for local water By Stephanie Jaeger

64 | 2011 Alaska Top 49ers: Superheroes of Success

Travel & Tourism 147 | CVBs Market Alaska Revitalizing the travel and tourism industry By Louise Freeman

102 | Top 49ers Listed by

100 | Top 49ers Alphabetical

Listing with Five Years Rank and Revenue Business Classification Photo by Brian Wallace, 2011 © Goldbelt Inc.

Rural Business 156 | Alaska Commercial Co. Melding with rural communities By Stephanie Jaeger

Top 49er Spotlight 108 | Goldbelt Inc. Targeting shareholder development By Tracy Kalytiak Top 49er Spotlight 112 | MTA Inc. Providing Internet, TV and telephone access to rural Alaskans By Vanessa Orr Top 49er Spotlight 114 | Roger Hickel Contracting Smoothing the road for owners By Gail West

Travel & Tourism SIDEBAR 152 | Alaska Chamber & CVB Directory

Marketing 158 | Groupon Business Coupons Social media buying comes to Anchorage By Deborah Jeanne Sergeant

Top 49er Spotlight 104 | Alaska USA Federal Credit Union Diversification, experience key to credit union’s success By Vanessa Orr

©Ken Graham Photography.com

108

114

www.akbizmag.com • Alaska Business Monthly • October 2011

RO M

THE

DITO R

Volume 27, Number 10 Published by Alaska Business Publishing Co. Anchorage, Alaska

Growing Alaska One state industry grows leaps above others, and trend is expected to continue

Vern C. McCorkle, Publisher 1991~2009

EDITORIAL STAFF Managing Editor Associate Editor Art Director Art Production Photo Consultant Contributing Photographers

Debbie Cutler Susan Harrington Candy Johnson Linda Shogren Chris Arend Judy Patrick Azimuth Adventure Photography

BUSINESS STAFF President Vice President Sales & Mktg. Account Mgr. Account Mgr. Traffic Coordinator Accountant

Jim Martin Charles Bell Anne Campbell Bill Morris Ann Doss Mary Schreckenghost

501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503 (907) 276-4373 Outside Anchorage: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial e-mail: editor@akbizmag.com Advertising e-mail: materials@akbizmag.com Pacific Northwest Advertising Sales 1-800-770-4373 ALASKA BUSINESS PUBLISHING CO., INC. ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., P.O. Box 241288, Anchorage, Alaska 99524; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2011, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues $3.95 each; $4.95 for October. Back issues $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, P.O. Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change. Manuscripts: Send query letter or manuscripts to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Monthly is prohibited. Address requests for specific permission to the Editor, Alaska Business Monthly. Online: Alaska Business Monthly is available online from Data Courier and online from Thomson Gale. Microfilm: Alaska Business Monthly is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

o you know what Alaska’s fastest growing industry is? Do you know what industry has created 10,000 new Alaska jobs in the past 10 years? Do you know what industry is in need of employees, with a demand that is growing as fast as summer grass during rainy season? If you guessed the health care industry you are correct. I read with interest August 2011’s Alaska Economic Trends, put out by the Alaska Department of Labor and Workforce Development on the growing health care industry in the state. You can read it, too. Just go online to http://labor.alaska.gov/trends/ and you will have a wealth of information on every industry imaginable before you. This is public information that you can share and reshare, and a good way to learn statistically about state industries. In an introductory letter to the August health care issue, Alaska Commissioner Click Bishop says: “Entities across Alaska are focused on the human pipeline we’ll need to fill the jobs in this expanding industry …. To meet employer demand, we will continue to develop ways to help Alaskans pursue careers in this growing industry.” Helping to achieve this goal is the Alaska Health Workforce Planning Coalition, The Alaska Workforce Investment Board, The University of Alaska system, AVTEC, Cook Inlet Tribal Council and more. Last year, according to the report, about 9 percent of Alaska jobs were in the health care industry. It’s the state’s fourth largest industry, provides 31,800 jobs, and has a payroll of $1.53 billion. It outpaces all other state industries. And the trend – it’s probably going to continue. According to the quantitative report, forecasted growth for the next 10 years is at

26.1 percent, with an addition of 7,000 jobs. Why? When I first arrived to Anchorage in 1986, the median age was in the 20s – if I remember correctly. Well Alaska has grown up and there is an increasing population of senor citizens and baby boomers edging up in years. This will likely increase demands for services. We’ve seen nine years of growth in the industry, and nearly one out of every 10 jobs is in health care. Surprisingly, most recipients of service – a whopping 81 percent, have some type of health care insurance. This is leaps above the national norm. With medical costs rising, the U.S. has the most expensive health care system in the world, the report stated. Alaska spends more per capita in this industry than most other states – only outpaced by Maine and Vermont. And we have dozens of hospitals statewide to choose from, the largest, based on average monthly employment, are Providence Health & Services, Alaska Native Tribal Health Consortium, Fairbanks Memorial Hospital, Southcentral Foundation, Yukon-Kuskokwim Health Corp., Alaska Regional Hospital and Southeast Alaska Regional Health Consortium. “Hospitals are the largest employers in Alaska’s health care industry, accounting for 40 percent of health care jobs. They are also among the largest employers in the state,” wrote authors Erik Stimpfle, research analyst, and Dean Rasmussen, economist. “Alaska has 26 licensed hospitals of various sizes in 20 communities.” It’s obvious where part of Alaska’s future lies. If you haven’t found a career yet, or are looking for a new one, think health care in Alaska. – Debbie Cutler Managing Editor

www.akbizmag.com • Alaska Business Monthly • October 2011

INSIDE ALASKA BUSINESS Lynden Earns Industry Honor

ynden Inc. was included on Inbound Logistics’ Green Supply Chain Partners list for its commitment to the environment. The list was printed in the magazine’s June issue. Magazine officials chose 75 companies, which demonstrate environmentally friendly business practices in the supply chain industry. “We have been working green for many years, so it’s gratifying to be recognized for our efforts,” says Alex McKallor, Lynden Inc. vice president of operations. “Lynden’s people, equipment, processes and technology are focused on the efficient use of resources and sustainable operations.” Lynden is the parent company of Lynden Transport and Lynden Logistics. Lynden Transport was the first Alaska-based transportation company to join the EPA’s SmartWay Partnership in 2008, followed by Lynden companies Milky Way, LTI Inc. and Brown Line last year. Lynden earned the Green Star Award for environmental stewardship in Alaska in 2009.

Firm Lands Industry Award

rctic Information Technology Inc. of Anchorage received the Microsoft 2011 General Manager Award for the U.S. West Region. Top Microsoft partners are recognized for work the Microsoft Small and Medium Business and Distribution group and their shared customers. The award was presented in July at the Microsoft Worldwide Partner Conference in Los Angeles. Arctic Information

Technology has more than 30 certified IT professionals working in offices in Anchorage, Seattle and New Jersey.

Calista Sells Rural Newspapers

alista Corp., which closed its 19year Alaska Newspapers Inc. subsidiary in August, sold its media publications to several different owners. The purchases came within weeks of Calista’s announcement to shutter six newspapers, a magazine, shoppers and its printing house. Jennifer Gibbins of Cordova, purchased The Cordova Times. She has served as editor for more than a year and has lived in the community for eight years. The newspaper has served the community for more than 100 years, Gibbons said. Edgar Blatchford, an associate professor at the University of Alaska Anchorage, purchased The Tundra Drums and the Seward Phoenix Log. Jason Evans and Kiana Peacock purchased The Arctic Sounder, The Dutch Harbor Fisherman, the Bristol Bay Times and two shoppers. The nonprofit First Alaskans Institute, which provides research and leadership development, acquired First Alaskans magazine.

NANA Buys Louisiana Oil and Gas Industry Firm

ANA Development Corp. purchased Grand Isle Shipyard Inc., an oil and gas services company in Louisiana. Grand Isle employs more than 1,400 people and provides contract services for repair and maintenance

COMPILED BY NANCY POUNDS on more than 700 offshore platforms in the Louisiana Gulf Coast. Primary customers include BP, Chevron and Shell. NANA Development is the business arm of NANA Regional Corp. Inc. NANA officials reported that top Grand Isle executives would continue to serve in pre-purchase roles. “This is about leveraging the expertise of two successful companies to create growth and opportunity around the globe,” said Helvi Sandvik, NANA Development president. “We both have a long-term vision and intend to continue to build off of the strengths of our past, while creating new opportunities for the future.”

UA, BP Test Unmanned Aircraft

he University of Alaska Fairbanks Geophysical Institute and BP Exploration Alaska demonstrated the oil-spill assessment abilities of an unmanned aircraft. The three-pound Scout demonstrated its new role in gathering 3-D aerial data to aid in oil-spill cleanup. BP funded the demonstration, which took place in midJuly. Representatives from the U.S. Coast Guard and the Alaska Department of Environmental Conservation also participated. Project officials say use of unmanned aerial vehicles can help with cleanup assessment with minimal impact on shorelines or critical habitats. Aeryon Labs of Waterloo, Ontario, Canada, designed the battery-powered Scout, which has a range of up to 1.8 miles. The Scout can fly up to 25 minutes with a payload and can reach a maximum speed of 30 mph.

www.akbizmag.com • Alaska Business Monthly • October 2011

INSIDE ALASKA BUSINESS The Federal Aviation Administration approved testing of the unmanned aerial vehicle for research. The demonstration focused on improving oil-spill response and cleanup capabilities in the terrain and conditions seen in Prince William Sound.

Weather Channel Series Features Kodiak Coast Guard

new TV series, “Coast Guard Alaska,” will debut Nov. 9 on The Weather Channel. The series features seven 60-minute episodes. “Coast Guard Alaska” is produced by Al Roker Entertainment, a New York Citybased multimedia production company. The show spotlights a team of Coast Guard swimmers and rescue pilots stationed in Kodiak. Episodes will show how Coasties face the challenges of intense training for dangerous rescue missions and display strategies used to save lives in a harsh environment. The series also will include segments on Coast Guard members’ off-duty life, including fishing, bear-watching and family barbecues.

Seward Restaurant Garners Accolades

esurrection Roadhouse of Seward received the Wine Spectator’s Award of Excellence in 2011. The restaurant is located near Seward Windsong Lodge on Exit Glacier Road. The award honors restaurants with at least 100 well-chosen wines skillfully paired with the cuisine. Other winners were

listed in the August issue of Wine Spectator or at www.winespectator.com. Also, Erik Slater, Resurrection Roadhouse executive chef, was chosen to represent Alaska at the Annual Great American Seafood Cook-Off in New Orleans. Slater is also chef for Goliath Bar & Grill. The competition was held in August. The National Oceanic Atmospheric Administration sponsored the event, which was presented by the Louisiana Seafood Promotion & Marketing Board. Gov. Sean Parnell chose Slater as Alaska’s representative in the competition. Slater is known for featuring restaurant offerings with wild Alaska salmon from Seward fishermen and Alaska Spot Prawns from Juneau. Resurrection Roadhouse is owned by CIRI Alaska Tourism Corp., a subsidiary of Cook Inlet Region Inc.

Golden Valley, Flint Hills Plan LNG Plant

olden Valley Electric Association and Flint Hills Resources have begun work on a natural gas liquefaction facility on the North Slope. The two companies have agreed to build and operate a facility to allow liquefied natural gas to be trucked to Interior Alaska by first quarter 2014. GVEA would use the gas to power its newest turbine at the North Pole Power Plant. Flint Hills would use the gas as a supply fuel for the refining process at its North Pole refinery. Company officials say the deal would deliver gas “at cost” to GVEA and Flint Hills. Lower costs should mean lower rates to GVEA members,

officials said. Flint Hills would become more competitive and efficient by burning LNG instead of refined crude oil in its refinery, officials added. LNG from the facility may be available to other users and LNG distributors in Fairbanks and elsewhere in the Interior.

SBA Lauds Anchorage DQ Franchisee

he U.S. Small Business Administration honored Greg Todd, operator of four DQ Grill and Chill eateries in Anchorage. Todd was featured in the SBA 100 list, which highlights businesses that have created at least 100 jobs since receiving SBA assistance. The list is available at www.www.sba.gov/100. Todd’s career in the industry began when he worked as a fast-food restaurant employee. He dreamed of one day owning a fast-food restaurant. Todd received SBA guaranteed loans to help obtain the necessary financing to open his first DQ Grill and Chill. He subsequently opened three other DQ Grill and Chills in Anchorage and employs more than 100 people. His second store broke DQ’s all-time day, week and month sales records since DQ’s inception in 1940. “DQ Grill and Chill is a great example of how the SBA helps entrepreneurs grow their dreams,” said Karen Forsland, SBA district director. “Greg is a dedicated and hardworking Alaskan whose small business creates local jobs and in turn helps grow Alaska’s economy.”

www.akbizmag.com • Alaska Business Monthly • October 2011

INSIDE ALASKA BUSINESS The SBA 100 companies include businesses in various industries, from manufacturing, to food and beverage, to shipping. Each business received SBA support in the form of capital, contracting, counseling or investment before going on to create at least 100 jobs.

Eatery Honored for Top Alaska Pizza

apri Pizza of Anchorage was included in Food Network magazine’s “50 States, 50 Pizzas” in the September issue. The eatery was honored for its Alaska salmon pizza, which combines mild fish sauce with red onions, green peppers, tomatoes, wild Alaska salmon and mozzarella. The restaurant, located at 4505 Spenard Road, opened in 2006. The complete awards are online at http://www.foodnetwork.com/50bestpizzas.

Optima Public Relations Gains Partners

ptima Public Relations LLC has signed an agreement to be a network partner with Gogerty Marriott of Seattle and Seattle Design Group. Anchorage-based Optima also is now a gold member of the American Association of Political Consultants. Optima, formed in early 2011, is owned by Tom Anderson, former general manager of Ogden Allied Facility Management Services; former state legislator Tom Anderson and Frank Dahl, past-president of Anchorage Cabaret, Hotel,

Restaurant & Retailers Association. “These associations with Gogerty Marriott, Seattle Design Group and the American Association of Political Consultants are important for our new firm,” Dahl. Said. “The AAPC is well-known in campaign and election circles, and it keeps consultants in-check with ethical standards and practices, and that’s what Optima is all about: transparency and ethical consultation for its clients.” Gogerty Marriott, which also has an office in Washington, D.C., handles public affairs, political campaigns and corporate communications. Seattle Design Group provides Web design and management and social media services.

SeaLife Center Christens Hickel Overlook

he Alaska SeaLife Center in Seward has opened the Walter J. and Ermalee Hickel Overlook, located on the upper level facing Resurrection Bay. The tribute honors the Hickel family’s contributions to establishing the SeaLife Center. The overlook was christened Aug. 8 during a ribbon-cutting event. Center officials report visitors to the outdoor deck can spot seabirds, Dall’s porpoise, sea otters, Steller sea lions, orcas and humpback whales. “The late Governor and Mrs. Hickel made a seminal contribution establishing the world-class facility that enables our research and education programs. Their passion for stewardship of our oceans continues to inspire our work.”

Fortymile Deposit Undergoes Exploration Work

ull Metal Zinc Ltd. conducted drilling and surface exploration this summer at its Fortymile project. Fortymile is a silver, zinc, lead and copper deposit in Interior Alaska. The company has options to earn several 100 percent leasehold interests within more than 117,000 acres of lands selected by Doyon Ltd. Core samples are studied at ALS-Chemex Labs in Fairbanks.

Arctic IT Honored Arctic Information Technology Inc., a provider of business software and network infrastructure solutions, has been named to Everything Channel’s 2011 Computer Reseller News (CRN) Next-Generation 250 list. Arctic IT is being recognized for being a partner that proactively covers the evolution of the IT industry through their cloud services that address the security and high-availability of online services. The CRN Next-Gen 250 is an annual listing of innovative business and technology solution providers in North America offering solutions and services in cloud computing, mobility, unified communications, virtualization and other emerging technologies. “Being recognized in the 2011 CRN Next-Gen 250 list is truly an honor for Arctic IT and it validates our mission of delivering value to our clients through cloud based solutions,” said Steve Dike, President of Arctic IT. “Arctic IT prides itself on continually providing innovative solutions to ongoing challenges that businesses face on a daily basis.” ❑

www.akbizmag.com • Alaska Business Monthly • October 2011

VIEW

FROM THE

TOP

COMPILED BY PEG STOMIEROWSKI

Lynn Johnson, President

Dowland-Bach

ynn C. Johnson, president of Dowland-Bach Corp., has been with the manufacturing and distribution firm from its beginning in 1975. Having worked summers since 1967 for his parents’ helicopter charter operation, Alaska Helicopters, Johnson started Dowland-Bach with their neighbor Ed Clinton the year after getting his degree in business and operations from California State University Stanislaus. Lynn and his wife, Terri, have two grown children. The corporation, which began with a contract to build 72 wellhead control panels for BP, had only three employees when Johnson became general manager, moving to treasurer and president in 1998. It now employs 24, including welders, electricians, mechanical and electrical engineers, sheet metal fabricators, and sales and administrative personnel. Average service with Dowland-Bach exceeds 10 years.

VIEW FROM THE TOP: A tremendous amount of oil remains in Alaska and offshore here. We need a friendlier business environment, especially in regard to taxes and permitting processes, and to view such states as North Dakota, Montana, Texas and Wyoming as competitors for oil investment capital dollars. Currently, much employment on the North Slope and along the trans-Alaska oil pipeline is maintenance related. Very little new investment is taking place. WHAT WE DO: Our primary products are wellhead control and chemical injection systems for corrosion control, UL industrial control panels, and specialty stainless steel sheet metal fabrication. On the distribution side, we stock and sell a variety of stainless steel pipes, tubing, fittings, flanges, and stainless steel sheet, plates, angle, screening and round bar. We design, engineer and fabricate systems for industrial applications across the state, with the bulk of the fabricated systems heading to North Slope oilfields. TOUGH SLEDDING: Overall, business has been down, due to the taxation environment imposed by the State on producers. Major producers are investing capital dollars where they can to get a better return. As business people, we need to do all we can to make sure Alaska is competitive with other producing areas; otherwise, additional investment capital will not be spent here. INDUSTRIAL DRIVERS: Competitive cost structures, accurate and dependable delivery times, quality levels, and safety are key. When oil prices are lower, it seems more attention is focused on costs, and when oil prices are higher, on reliable and quick delivery.

TRANSPARENCY: Dowland-Bach was fortunate to have Koniag acquire our outstanding stock in 2008. They are a first-rate Alaska Native corporation with a long history of integrity in business dealings and a long-term perspective, which I value greatly. In the acquisition process, honesty and transparency matter; if something bothers either party, get it on the table immediately or it will fester. Candor, honesty and an ability to keep the boat steady help. Don’t be afraid to ask and answer questions immediately. PEOPLE & PAPERWORK: In today’s workplace, more emphasis is placed on living a balanced, quality lifestyle. At Dowland-Bach, we still have periods of overtime and short “sprints,” but younger employees generally seem less tolerant of extended pressure, stress and workload. Another notable change since the 1970s has been much greater emphasis on record keeping. Electronic communications have helped ease related workloads. Lynn Johnson

ALASKA LEGACY: I expect our legacy will be a reputation for quality, honesty and integrity – and having fun doing our jobs. We may not always be the cheapest, but we will be the best in quality and overall cost. We try to make stainless “Almost Painless…” ❑ www.akbizmag.com • Alaska Business Monthly • October 2011

MILITARY

★★★★★★★★★★★★★★★★★★★ Civilian world learns from armed forces leadership techniques BY HEIDI BOHI

o much of the Alaska business community, it comes as a surprise when headlines announce that yet another former military leader has been selected to lead any one of the state’s largest companies, organizations or State agencies. There are nine bases statewide among the Air Force, Army, and Coast Guard military branches, creating more than 22,000 direct military jobs and generating another 32,000 positions. Although this is part of what makes the military one of the largest sectors in the economy, there is a clear line in the sand and many civilians fail to understand how much the men and women in uniform contribute to the state’s business environment. Cigar-chomping, combative – think General George S. Patton. This is the stereotype Hollywood continues to feed. In fact, Korn/Kerry International, one of the country’s leaders in executive recruitment, development and leadership issues, says those with military experience benefit from lessons in leadership that are invaluable in the boardroom. It should be no surprise at all large business entities that need proven CEOs often find candidates with military experience fit the bill. The military provides a training ground that encourages the same job traits needed in a competitive business environment: 2005 figures showed companies led by these CEOS delivered higheraverage-returns than the Standard & Poor’s (S&P) 500 index over one-, three-, five- and 10-year horizons.

These CEOs also tend to survive longer on the job, claiming an average tenure of about seven years compared to less than five for all S&P 500 CEOs. Alaska is no exception – if anything, what makes it exceptional, is the number of retired military rank who is, or have been, in key leadership positions is remarkable for the state’s relative small population. Working as part of a team, organizational and communication skills, the ability to motivate and manage, strong ethics and remaining calm under pressure – these are the leadership skills the CEOs interviewed here continue to transfer from their military careers to those requiring executive performance.

★ ★ JOE RALSTON ★ ★ Having held various positions at the senior officer level in the United States Air Force, four-star general Joe Ralston, who retired from the military in 2003, says what most people don’t know is there are far more similarities between a CEO and a military commander than there are differences. He should know. Since starting his military career in 1965 at Laughlin Air Force Base in Texas, Ralston has risen through the ranks, along the way holding some of the most coveted positions in the military and becoming known as one of Alaska’s most notable leader. He has served in operational command at squadron, wing, and major command levels, and has held various staff and management positions at every level of the Air Force.

Now a permanent resident of Alaska – though it’s not unusual to find him traveling from one continent to another – at 67, some of the accomplishments Ralston is most proud of include leading the Alaskan Command and the Alaskan North American Aerospace Defense (NORAD) Region from 1992 to 1994, making him responsible for all military activities in Alaska. He became vice chairman of the Joint Chiefs of Staff in 1996 – the nation’s second-highest ranking military officer, a position he held four years before becoming Supreme Allied Commander for the North Atlantic Treaty Organization (NATO) in Europe until his retirement. As vice chairman of The Cohen

www.akbizmag.com • Alaska Business Monthly • October 2011

Group since 2003, Ralston helps worldwide business clients shape their business, political, legal, regulatory and media environments. He also is using his military skills as a director of the Timken Co., where he is responsible for keeping the company’s board advised on the global political environment and development in the aerospace industry. He is on the boards of the URS Corp. and Lockheed Martin, and on the advisory board of the American Turkish Council, an AmericanTurkish lobby group looking to strengthen the role and significance of Turkey in U.S. foreign policy, bilateral ties between the two nations and the Turkish-American community in the United States. At the senior officer level in the military, he worked with government officials and advised American businesses in some of these same areas, giving him an appreciation for what is going on with political situations in countries such as Turkey and Romania. Today he uses this military experience to help companies project what their business needs are going to be, determine where

to delegate authority, and to establish the human resources climate so that it maintains the dignity of every person in the organization – something he understands as a result of being responsible for thousands of troops. “You are given an opportunity to have different leadership positions in the military, whether it’s squadron, wing or combat command,” he says assessing the skills that have transferred from his military leadership experiences to civilian life. “This includes leading organizations of different sizes and most American companies fall between those sizes and require the same skills needed to motivate and accomplish the mission.” As Alaska’s strategic military importance as an installation becomes even more important, while significant reductions in the Department of Defense budget loom, Ralston says it is critical Alaskans make Congress understand how much more effective any unit can be from Alaska because it is positioned to more quickly deploy to Europe, the Middle East or Asia than other units in the Lower 48 States. ■

★ ★ MARK HAMILTON ★ ★ It’s only appropriate Mark Hamilton, a retired Major General with the U.S. Army, was in charge of recruiting when “Be all you can be” was the popular slogan. A West Point graduate, after a tour

www.akbizmag.com • Alaska Business Monthly • October 2011

in Vietnam, he reached the rank of full colonel and was stationed in Alaska as Division Artillery Commander from 1988 to 1990. A 31-year veteran before retiring from the military in 1998, that same year, Hamilton went on to lead the University of Alaska where he first became known for establishing a scholars program to convince the state’s top high school graduates to stay in Alaska for college. “We need to get a general to take over the leadership of the university,” a member of the Board of Regents had said to one of Hamilton’s friends at a party. As the successful candidate, he spent the next 12 years helping almost 34,000 students “be all they could be,” including overseeing a system employing about 8,000 faculty, staff and students, with an operating budget of about $700 million. From the onset, he knew the Hollywood stereotypes he was up against. “Military leaders can make a decision, but this ‘my way or the highway’ mentality you see portrayed in the movies doesn’t exist – they are in charge of more things than they can possibly know how to do, so they are expected to use the advice of others and find the people who have the answers at their disposal.” Besides a bit of a learning curve, he says he was well aware of the naysayers who were asking: “What’s this guy doing here?” “At this stage of the game there had been very few generals placed in this type of a position,” Hamilton says, looking back. “I didn’t waste time with them.” Instead, he says, he set out to surprise them in a positive way, a move he says always gives a leader a huge advantage. After a decade of budget cuts, program, faculty and staff reductions, under Hamilton’s leadership the university experienced budget growth, program expansions, facilities, faculty, staff and student increases unprecedented in previous administrations. He convinced the Legislature and the public the State’s financial difficulties were a reason to spend more, not less, on higher education. “The learning curve was remarkably short because my job was not to teach physics – it was to run the

www.akbizmag.com • Alaska Business Monthly • October 2011

your banker should understand you as well as your business At KeyBank, we ask questions and take time to uncover what you really need. For example, you may think tapping into a line of credit is the solution for everyday expenses like payroll and inventory. By working together, we may instead find ways to maximize cash inflows and outflows so you can keep your cash longer. Because we get to know you and your business, we can offer more relevant advice and sound solutions. Start a conversation. And unlock your possibilities. go to key.com/business call Win Gruening at 907-564-0254

y 10% redit b y r o t c p inven ase line of u p m — Ra ts to incre e tools in — Wan ommend onl ency of i — Rec prove efﬁc payables to im bles and a receiv

university and it was a job I understood how to do quite readily,” Hamilton says. “A job at that level is not as dependent on specific leadership experiences, but rather on specific leadership know-how and understanding how organizations work.” This, he says, is part of the reason why military leaders moving into CEO positions in the business community works as well as it does. “In the armed forces, the instrument of war is people and understanding how to deal with people and having respect for them, and confidence in them – it’s not about doing their job, but inspiring them to do the job that needs to be done,” Hamilton says. Besides shining academically himself – in addition to West Point honors, he has a master’s degree in English literature from Florida State University. A highlight of his career was as commander for the U.S. military group in El Salvador where he was responsible for negotiating – in Spanish – the end of the 12-year civil war there. In 1992 he was Chief of Staff for the Alaska Command for one year before going on to work for Ralston who was then Chief of Staff. Hamilton was sent to Somalia in 1993 where his negotiations with warlords resulted in ABC news anchor Peter Jennings featuring Hamilton as a “Person of the Week.” Jennings described Hamilton as “the man in the middle,” and was convinced Hamilton was not finished with his mission in life, and great things were yet to come. Today, Hamilton is devoting his time to advancing things he believes in. He was instrumental in helping Sen. Lisa Murkowski get re-elected and is the television and radio talking head for the Make Alaska Competitive Coalition, a pro-development grass-roots organization, another example of how his military career has transferred into a leadership position in civilian life. “The military is the only profession in world where you’re constantly being measured on your ability to lead and influence and direct people,” he says from his Anchorage home. “It makes a lot of sense these would be individuals the community would want to find other work for.” ■

www.akbizmag.com • Alaska Business Monthly • October 2011

★ ★ PAT GAMBLE ★ ★ As a retired Air Force four-star general and fighter pilot who flew 394 combat missions in Vietnam, when Pat Gamble left the military in 2001 after a 34-year career, it only made sense he was ready, as he says, to once again to soar. “I knew I wanted to work and that I

wanted to break away from the military and test my wings in the business world. I was up to the challenge of taking all that military experience and using it in pure business,” he says. Luck had a lot to do with being offered the position of president and CEO of the Alaska Railroad Corp., he says. As commander of the Pacific Air Forces, responsible for overseeing a $1.4 billion budget and 14 military installations, and as commandant of the Air Force Academy he directed training, policy, classroom and food and housing policies. He describes the transition in operations as going from airplanes to locomotives, he’d always been interested in construction and engineering, and he was all too familiar with maintenance, supply and personnel issues. After an exceptional Air Force career – he went on to lead the railroad for almost 10 years and during his tenure expanded the State-run corporation significantly. Gamble, who turns 66 next month, became the University of Alaska’s 13th president in June of last year, a position he was

preceded in by his Army contemporary Mark Hamilton. Although he does not like to look at the university as a business, there are undeniable similarities. At the same time, he says, it’s all about the students and one of his challenges is to make sure the system stays focused on them and not become too bureaucratic. Although many in the business and academic communities may not appreciate how being an Air Force general is the best training program for a university leader, Gamble explains besides spending countless hours in the classroom throughout his military career, he was also a user of highly educated people, pointing out that about 75 percent of Air Force senior officers have at least a master’s degree. “The Air Force gave me the opportunity to admire the product of good higher education,” he says from his Fairbanks office. “It concerns me that across the country we are losing that. Starting with young children, we need to get that back. My No.1 priority is to educate Alaskans, for Alaska, before anything else.” ■

www.akbizmag.com • Alaska Business Monthly • October 2011

★ ★ TOM BARRETT ★ ★ When it comes down to it, there are a lot of similarities between safely moving 600,000 barrels of oil through the 800-mile Trans Alaska Pipeline System (TAPS) every day and leading an organization responsible for rescuing people from extreme, often life-threatening situations. So when retired Coast Guard Vice Admiral Tom Barrett was hired as president of Alyeska Pipeline Service Co. early this year, managing the transport of 10 percent of the nation’s domestic oil production under difficult circumstances far from discouraged him.

The way he sees it, in both cases, the jobs involve managing people who are dedicated to a goal that is important. In the case of TAPS, important to the TAPS owners, the State of Alaska and America. And, he says, in each capacity “preparation equals performance.” TAPS, like all branches of the military, is built on teamwork. “In addition to close teamwork, the focus is on flawless operational performance and having the support structures in place to make that happen,” Barrett says. During his 35 years in the Coast Guard, where he commanded Coast Guard operations in Alaska and the North Pacific, he emphasized safety and environmental protection. Besides instilling the military work ethic and team building skills, he was led to opportunities directly related to the needs of his current position. In addition to being Deputy Secretary of the United States Department of Transportation, he was responsible for managing a $61 billion budget, 10 modal administrations and 60,000 employees. He also formally served as the first administrator of the U.S. Pipeline and Hazardous

Materials Safety Administration, where he directed the agency’s national safety programs for hazardous materials and liquid, natural gas, petroleum and other hazardous liquid pipelines. Part of what continues to hold his interest in advancing Alaska’s natural resources is the state’s support of the military, and many of those who have served in locations around the world will likely say the same thing. “There is a strong appreciation of the military, from the governor on down, so it is a very welcoming environment for military personnel,” he says. And as Alaska’s strategic location becomes even more critical in the future, including its increased activity in the oil and gas industry and opening the Arctic shipping gateway, Barrett says he expects former military leaders to continue to have opportunities to advance the state’s commercial opportunities. “Military leaders have operated in Alaska and many other places of high levels so they have a unique understanding of why the state is so important in terms of both national security and energy security,” he says. ❑

Relax, recline, and rest assured –

SPAN ALASKA DELIVERS. ..... Partnering with Span Alaska has saved us hundreds of thousands of dollars over the last 10 years – and helped us grow into Alaska’s #1 furniture retailer.

– Ron Bailey, Owner, Bailey's Furniture

SHIPPING TO ALASKA? CALL. 1.800.257.7726 www.spanalaska.com

promises made, promises delivered

Buddy Bailey, Creative Director, Bailey's Furniture

www.akbizmag.com • Alaska Business Monthly • October 2011

NATIVE BUSINESS

Alaska Native Professional Association grows young professionals into leaders BY GAIL WEST

THE REACH “We seemed to stick out because we weren’t the typical members,” Metrokin said. “We were younger and we were Native.” This group of five or six, as Metrokin recalls, began to meet for lunch on a regular basis, then decided that there must be others like them who were interested in networking, in hearing views and perspectives of interest to the Alaska Native community. At that point, they began to research and form the new nonprofit. “We had to learn how to write bylaws, articles of incorporation and so on,” Metrokin said. “We had a lot of

help from members of the community, but we really had to bootstrap our way through it. In essence, I think that is almost what I appreciated the most – I learned from the ground floor up.” ANPA’s mission – to build relationships, leadership and community involvement among Alaska Native professionals and organizations – wasn’t difficult to create, Metrokin said. “We looked at the demographic we wanted to attract and we looked at what was missing for this sector of the Native community,” he said. “We also wanted access to Native elders who could provide some of what we were looking for. We didn’t just pick up the phone and call Roy Huhndorf or Byron Mallott. We didn’t have access to those folks, so we took it upon ourselves to ask them to come and engage with us.”

Photo courtesy of Bristol Bay Native Corp.

usiness leaders in our Alaska communities can breathe a sigh of relief. The future is in capable hands with help from the Alaska Native Professional Association. Formed in 1998 by a small group of young, Alaska Native people who were seeking networking and learning opportunities with others like themselves, the organization today is a bona fide nonprofit with a flexing membership of approximately 80, a website, Facebook and Twitter pages and a listserv with more than 300 active members. “In the Native world, ANPA is a well known and established organization,” said Jason Metrokin, president and chief executive officer of Bristol Bay Native Corp. One of the founders, Metrokin recalls that before ANPA he used to meet other Native professionals at Chamber, Commonwealth North or Rotary meetings – business-related functions in Anchorage.

LEADERSHIP LESSONS Another of ANPA’s early leaders, Krystal Kompkoff, manager of Alaska Job Corps’ Outreach, Admissions and Career Transition Services, said the organization provided young Native professionals with an opportunity to be among their peers and to “try on their leadership styles and learn skills in a group that’s more comfortable than other situations. Once they’ve gained confidence, they can take those skills to other organizations and boards of directors.” Led today by a younger set of upcoming Native leaders, ANPA has no staff but does have a board of nine and a set of committees ranging from leadership to board development. One ad hoc committee organizes the annual opportunities expo. Angela Gonzalez,

Jason Metrokin, president/CEO of Bristol Bay Native Corp. and cofounder of the Alaska Native Professional Association, which was formed in 1988.

current board chair and communications coordinator for RurAL CAP, said the expo began many years ago as a career fair during the Alaska Federation of Natives convention week. “First, businesses expressed an interest in outreach, so it changed into a business expo,” she said. “Then educational institutions joined us. Now, it’s an opportunities expo. We’ve held this for more than seven years, and a few years ago began partnering with First Alaskans Institute to hold it during the Youth and Elders Conference.”

www.akbizmag.com • Alaska Business Monthly • October 2011

– Jorie Paoli Former Board Chair/Research Coordinator First Alaskans Institute

WTCAK’s 7th Annual Alaska-China Business Conference Wednesday, November 2, 2011 Sheraton Anchorage Hotel 8:00 AM - 3:00 PM Learn how to capitalize on economic trends and developments. SPEAKERS INCLUDE:

U.S. government trade ofﬁcials Chinese government trade ofﬁcials 3 Executives with business experience in China 3 Other knowledgeable 'China Hands' 3

ce en

-China Business aska Co l Al nfe ua n r n

Paolie said she has made connections with other young, Native professionals she may not have met elsewhere and added that she’s grown in her board experience, as well. “I’ve seen the power and the relationships, the connections,” she said. “I’ve seen a lot of new opportunities and growth come from the gatherings. “In ANPA, we try to bring young, Native professionals together – to talk together, to learn together and to grow as a community.” To learn more about ANPA, go to Facebook.com/aknativepro, Twitter.com/aknativepro, and online at www.ANPA.net. Metrokin had one additional thing to say about the organization that he helped found: “It’s interesting to me, as an individual founder of ANPA, that I’m the old guy in the room now. That means it’s successful; it’s continuing to be relevant to the next generation.” ❑

Put the pieces together at:

Rives LLP, joined Gonzalez in recalling another highly successful event that ANPA hosted. It was the senatorial candidate forum in the fall of 2010 that was the first forum to bring all three U.S. Senate candidates – Lisa Murkowski, Scott McAdams and Joe Miller – together. “It was very well attended,” KinegakFriday said. “In addition to about 250 who attended, we webcast the event and had nearly 300 people watching it. We focused on Native issues and allowed the audience to ask questions near the end of the debate. This is something I think we’d do again in the future.” Jorie Paoli, a former board chair and the policy and research coordinator for First Alaskans Institute, added that ANPA’s primary focus is on hosting monthly gatherings held every third Thursday of the month, with the exception of July and December.

China is Alaska’s 2nd largest and fastest growing trading partner.

“Anyone can come to the meetings and anyone can join ANPA. Our core target group, though, is Alaska Native professionals between 20 and 40.”

In 2010, exports to China from AK reached $923 Million.

TARGETS YOUNG PROFESSIONALS “Our gatherings are often of interest to any young professional,” added Kinegak-Friday. “We’ve had gatherings in the past on how to negotiate a salary, how to create a personal/ professional brand.” Kompkoff added that ANPA is an excellent organization for young Alaska Native professionals to gain skills they may not get in other situations. “I think it’s very culturally relevant,” she said. “It helps people who want to hold on to their Native cultural values and at the same time, these people can help change the corporate structure to be more inclusive of Native values.”

Puzzled about how your business can proﬁt with trade in China?

“Anyone can come to the meetings and anyone can join ANPA,” Paoli said. “Our core target group, though, is Alaska Native professionals between 20 and 40.”

7th A

PARTNERSHIPS Gonzalez added that ANPA stretches its outreach and abilities by partnering with other organizations – such as First Alaskans – to co-host events. She recalled a particularly successful event that ANPA co-hosted with the Anchorage Urban League of Young Professionals. Called the Lead NOW Young Professional Development Summit, the event was geared toward young leaders and professionals and was held in 2009. “It covered a wide range of things young business professionals need to know,” Gonzalez said. “There was personal branding, networking skills and relationship building. It was a great event that brought a variety of people together, and it’s not something we could have done on our own.” Board Secretary Kirsten KinegakFriday, an associate attorney with Stoel

r 2,

ag hor 2011 Sheraton Anc

www.akbizmag.com • Alaska Business Monthly • October 2011

TECHNOLOGY

Photo by Loren Holmes Photography 2011

Kym Flores on multiple screens.

How interaction and immersion affect your business BY ROSS JOHNSTON

t the age of 24, Kymberly Flores is the regional sales director of the Extended Stay Hotels in Alaska. She wakes up in the morning to her iPad alarm clock and uses it to pull up her Facebook account to see what her friends are doing; then she checks for important overnight

emails. This is even before she gets out of bed. As she eats her breakfast, Kym uses flip board, an application for her iPad that allows her to view and interact with several different news sources simultaneously. Sometimes, she’ll read an interesting article, and “share” it with her friends on Facebook

and post about how it relates to her. Kym Flores has a TV, but no cable. She watches her favorite TV shows through sites like Hulu and Netflix.

DIGITAL NATIVE Flores is a digital native. Her growth and development coincided with the

www.akbizmag.com • Alaska Business Monthly • October 2011

growth and development of digital communication. The term digital native typically applies to those born in the late 1980s or after. Communicating via technology has been ever present in their lives. Flores knows the value of relationships and knowing her clients. That is why she has installed a social plug-in called â&#x20AC;&#x153;Xobniâ&#x20AC;? on Outlook. As soon as she inserts an email address into the â&#x20AC;&#x153;TO:â&#x20AC;? field, that client or potential clientâ&#x20AC;&#x2122;s FB profile, LinkedIn profile and Twitter account all pull up below, keeping her informed of that personâ&#x20AC;&#x2122;s latest shared information. With that plug-in, she knows which of her clients enjoy talking about fishing, family or some other activity. Flores has more than 800 â&#x20AC;&#x153;friendsâ&#x20AC;? on Facebook. As a consummate professional, Flores knows the importance of post integrity. Sheâ&#x20AC;&#x2122;ll never post anything on a social media site that her grandmother wouldnâ&#x20AC;&#x2122;t approve. Flores uses Facebook to keep in touch, but she also realizes by writing fun, interesting posts, clients feel

a greater connection with her. She realizes sales are made through strong relationships and she uses social media to strengthen those relationships. Flores has â&#x20AC;&#x153;fannedâ&#x20AC;? almost all of her clients and uses social media sites to not only become better acquainted with her clients, but to stay on top of the business world and the changes occurring at each of the companies she does business with or is aiming to do business with. Social media has transcended the sole purpose of being â&#x20AC;&#x153;social.â&#x20AC;? Current events, community and world events now appear on her â&#x20AC;&#x153;wallâ&#x20AC;? and appear in the order of her interests. It reduces the amount of time she has to spend searching for them on other sites. Current events in the business community are also streamed into her feed regularly by the business pages she has â&#x20AC;&#x153;fannedâ&#x20AC;? or â&#x20AC;&#x153;liked.â&#x20AC;? It is how she is able to do business in three markets at the same time and always know what is going on in each of them. As a digital native, Flores delivers on clientsâ&#x20AC;&#x2122; expectations of instant gratifica-

tion; the present is the only time she knows. It is engraved in her culture and has been shaped by the fact that the computer has grown and developed at the same rate she has. As the computer age has developed over the years â&#x20AC;&#x201C; enhancing the way we do business â&#x20AC;&#x201C; so have the digital natives and their ability to incorporate technology and social media to be ever more effective in business and client relations. Besides being a digital native, Flores is an active member of the community. She is an Anchorage Chamber Ambassador, a committee member for the recent Run for Good 5K, and is a member of the Youth Exchange Committee in Anchorage East Rotary. Most companies and organizations would include Flores in their target market given her income level and dedication to the community.

MULTI-MEDIA IMMERSION While Flores is a unique individual, she epitomizes the consumption characteristics of her generation. â&#x20AC;&#x153;Clients need to recognize fundamental shifts

'RQÂˇW PLVV RXW RQ D JUHDW RSSRUWXQLW\ WR SURPRWH \RXU EXVLQHVV LQ $ODVNDÂˇV ODUJHVW GLUHFWRU\ $%0ÂˇV 3RZHU /LVW LV DQ LQYDOXDEOH \HDU URXQG UHIHUHQFH SURYLGLQJ FXUUHQW GDWD RQ PRUH WKDQ D WKRXVDQG FRPSDQLHV GRLQJ EXVLQHVV DFURVV $ODVND

6SDFH 5HVHUYDWLRQ 'HDGOLQH 2FWREHU $UW 'HDGOLQH 2FWREHU 7ROO )UHH

ZZZ DNEL]PDJ FRP www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

in media consumption and move beyond traditional mass-marketing to reach younger consumers,” says Kate Slyker, vice president of client services at the Nerland Agency, adding that this generation is more likely to be multiscreen consumers. “One thing that differentiates this generation is they are not just watching TV shows,” she says. “They could be watching TV, on Facebook and texting all at the same time. They are truly immersed.” She advises clients that reaching out to digital natives is no different than reaching out to any other demographic. The challenge remains: Reach the right people at the right time with the right message. Understanding and crafting media plans to align with media consumption are critical pieces of that process. What differs, Slyker says, is this demographic wants to be in charge of a conversation and self-select how and when content is being delivered. She thinks that is why Facebook is overtaking Google in use. Facebook is on their terms. They choose when they want to use it, how and on what platform.

COMPELLING ENOUGH TO SHARE According to Lincoln Garrick, president of Solstice Advertising, reaching out to digital natives is no small feat. Folks in that particular demographic are not necessarily interested in seeking out people’s opinions outside of their social group. Nor are they necessarily interested in primary source information. They want to find out what their friends think and they want to put out their opinions first and foremost. He feels it is challenging because you have to put your message out in smaller circles. He says the content of the message needs to be compelling and easily processed for it to be shared. A lot of the media principles that worked 10 to 30 years ago, such as reach and frequency, are still applicable. Strong reach, higher frequency – both of those combined over time will generate better results if the message is viewed as relevant, compelling and honest. Today, Garrick says, we are just using different channels. What’s different now from generations before, Garrick goes on to say, is

that there are more ways to get information and you can get more information in a shorter period of time. Digital natives are hyper-connected and it means their news and word-of-mouth travel faster. Their thoughts and experiences can be shared almost immediately through pictures, posts and videos.

GOING FOR DIGITAL INTERACTION Calvin Worthington Jr. of Worthington Ford has embraced digital communication wholeheartedly but with a traditional approach. His Worthington Ford ads are running on Pandora, Hulu, Google and Facebook. His full digital media campaign has only run for a month so far. While he cautions it is too early to gauge the effect, he estimates one in three leads are directly related to the online advertising since it has been running. When asked how it is affecting sales, Worthington smiles and says they are having one of the best months ever. Worthington understands the value of reaching digital natives on their platforms as he also consumes content online. He says the only time he actually sees his ad is when it runs on Hulu. He

has a DVR at home and fast forwards through TV commercials. One of the advantages he finds with Hulu is it has shorter commercial breaks and doesn’t allow him to skip the commercials. Worthington’s next plan of action is to find how people are interacting with the Worthington brand online. He feels rather than trying to create something interesting, he needs to find what people find interesting to do and see how they can leverage that. As for Flores, she enjoys authentic and honest marketing. She doesn’t respond well to marketing that seems contrived or tries too hard to be “cool.” If she likes a company or experience, she won’t just share with her friends on Facebook, she’ll help promote it through her channels of influence. If she is offended by a company or experience, she will most likely share that as well. Digital natives no longer consume media and information – they interact with it. Companies now have the responsibility of embracing the differences, which can and will, undoubtedly, impact them. ❑

www.akbizmag.com • Alaska Business Monthly • October 2011

REGIONAL REVIEW

BY TRACY BARBOUR

Pacific Northwest: Rich in Resources Region sees mix of loss, gain in economic sectors during national recession

he Pacific Northwest is a resource-rich region that occupies the northwest corner of the United States and southwestern part of Canada. The southeastern segment of Alaska and the Canadian province of British Columbia comprise the northern section of the region; Washington state, Oregon, Idaho, western Montana and

northern California represent the region’s southern sector. The whole region is bounded by the Pacific Ocean to the west and, loosely, by the Rocky Mountains on the east. This article will focus on Alaska, Washington and Oregon, including the differences and similarities in their economies. It will also look at how their employment has fared over the last four years.

Pacific Northwest States at a Glance Alaska Population: 710,231 (2010) Land Area: 571,951.26 Persons per Square Mile: 1.2 Key Industries: oil and gas, government, tourism, fishing and health care Median Household Income: $66,712 (2009) Unemployment Rate for June 2011: 7.5 percent (preliminary figure from the Alaska Department of Labor) Washington Population: 6,724,540 (2010) Land Area: 66,544.06 Persons per Square Mile: 101.1 Key Industries: aerospace and software Median Household Income: $56,479 Unemployment Rate for June 2011: 9.3 percent Oregon Population: 3,831,074 (2010) Land Area: 95,996.79 Persons per Square Mile: 39.9 Key Industries: semiconductor manufacturing, hospitality and leisure, tourism Median Household Income: $48,325 Unemployment Rate for June 2011: 9.7 percent *Sources: U.S. Census Bureau and the Bureau of Labor Statistics

Alaska Department of Labor Economist Neal Fried.

HISTORY AND GEOGRAPHY Historically, the Pacific Northwest was settled by Native Americans about 15,000 years ago. European explorers followed from the 1500s to the 1700s, discovering Oregon and Washington. Among them are the legendary explorers Meriwether Lewis and William Clark, who completed their expedition to Washington in the 1800s. The Pacific Northwest has a number of distinctive geographic features. It contains two large mountain ranges: the Cascade Range, which stretches from southern Alaska to northern California, and the Coast Range, which extends from southwest Yukon through Canada and the Alaska panhandle, and is nearer the coast. The highest mountain in the Northwest area is the

www.akbizmag.com • Alaska Business Monthly • October 2011

14,410-foot-tall Mount Rainier. Other sizeable mountains include Mount Shasta, at 14,160 feet, and Mount Baker, which tops 10,700 feet. Other geographic elements of the Pacific Northwest include the Columbia Plateau, a high area of land that stretches east to the Rocky Mountains in Idaho and Montana. There are also the magnificent Olympic Mountains in Washington and Puget Sound, a compilation of bays and straits in northwestern Washington and southeastern British Columbia. Manifold rivers twist throughout the region, including the Fraser, Columbia and Snake, all of which are the result of the region’s considerably wet climate. Average annual precipitation in most places west of the Cascades is more than 30 inches. However, the western slopes of the Olympic and Coast mountain ranges typically receive about 118 inches per year, with some locations on the Olympic Peninsula exceeding 200 inches annually. East of the Cascades, the climate features more sunshine and drier conditions, with some places receiving as little as 7 inches of rain.

ECONOMIC DIFFERENCES AND SIMILARITIES Alaska conducts a great deal of business with Washington and Oregon, but the economies are different. The volume of business has become less significant than it used to be because those economies have grown, according to Neal Fried, an economist with the Alaska Department of Labor and Workforce Development, Research and Analysis Section. This last recession is a good example of just how different the Pacific Northwest states are. Fried says: “They got hit pretty hard. Washington lost 140,000 jobs; Oregon lost 130,000 jobs. Alaska actually grew a little bit.” While Alaska is enjoying a positive job growth trend, employment in Washington and Oregon is just now beginning to grow again. Like the rest of the nation, they’re beginning to see some recovery. But they have a lot of ground to make up, Fried says. The economies of Washington and Oregon are closer to the national average than to Alaska’s, and also are much larger in terms of population and employment. “If we did not have the

physical proximity, there would be no comparison,” Fried says. In some ways, Alaska, Washington and Oregon have become more dissimilar over time – particularly Washington’s economy. “Washington’s economy in the last 10 or 15 years has become incredibly dynamic,” Fried says. “It’s been the envy of the rest of the country.” In terms of their industries, Alaska is very largely resource-driven. Oil, mining, government and the military play a huge part in the state’s economy. In contrast, Washington and Oregon have a negligible oil and government sector. Their economies – which are more diverse and consumer-driven – have significantly more manufacturing than Alaska’s. They also have much more agriculture. However, there are a few similarities between the economies of Alaska, Washington and Oregon. For example, they all have strong visitor sectors, as well as significant fisheries. Perhaps the key commonality among them is their richness in natural resources, according to San Francisco-

©The Valdez Museum and Historical Archive

Our clients helped make us who we are today. • Asset Based • Complete Lower 48 Coverage • Intra-State Alaska Service • Professional Drivers • Dedicated Customer Service • Comprehensive Web Services www.pafak.com 800.426.9940 Anchorage 336.2567 Fairbanks 452.7971 Kenai 262.6137 Kodiak 486.8501 www.akbizmag.com • Alaska Business Monthly • October 2011

San-Francisco-based economist Todd Johnson of the western office of the Economic Analysis and Information branch of the U.S. Bureau of Labor Statistics.

based economist Todd Johnson of the Western Office of the Economic Analysis and Information branch of the U.S. Bureau of Labor Statistics. Those types of industries tend to have held

According to Johnson, the location quotient in oil and gas extraction is 10.0 for Alaska, undisclosed for Washington (which basically means there’s not enough of a density to measure) and 0 for Oregon. For the seafood product preparation and packaging industry, it’s 112 for Alaska, 8.5 for Washington and 2.5 for Oregon. Alaska also has higher concentrations in a number of other industries, such as non-scheduled air passenger chartering (17.3), mining, except for oil and gas (5.0), nature parks and similar institutions (5.0), and forest and logging (2.2). On the flip side, Alaska’s location quotient is well below that of the nation in the areas of manufacturing, software publishers and wineries. In manufacturing, the location quotient is 0.5 for Alaska, 1 for Washington and 1.14 for Oregon. In software publishers, it’s nondisclosed for Alaska, 9.1 for Washington and 2.8 for Oregon. And in the wineries category it’s nondisclosed for Alaska, 2.6 for Washington and 4.0 for Oregon. Coincidentally, all three states have

An interesting way to identify which industries are more heavily represented in the Pacific Northwest is to look at the “location quotient.” employment. Another interesting similarity is that Alaska, Washington and Oregon have little economic activity in the areas of finance and insurance. But that doesn’t surprise Johnson, who says, “Those types of occupations tend to be centered in places like New York and San Francisco.”

INDUSTRY CONCENTRATIONS An interesting way to identify which industries are more heavily represented in the Pacific Northwest is to look at the “location quotient.” This number represents the density of an industry at a particular location in the United States. So, for example, if Alaska has the same concentration of a certain industry as the country as a whole, its location quotient would be 1. If it has less of a concentration in an industry, the location quotient would be less than 1.

location quotients higher than the U.S. in skiing facilities. In this category, Alaska has 1.3; Washington has 2.1; Oregon has 2.8. Johnson says location quotient numbers are very helpful for businesses that may be looking at relocating. “If there’s a low location quotient, it means you can move into that market and have an exporter from that industry,” he says. “You could also look at industries that are needed. It’s a way of seeing what is available to work within the various areas.”

ALASKA EMPLOYMENT STATISTICS Employment numbers for the Pacific Northwest show increases in some sectors, decreases in others, and some areas remaining the same.

www.akbizmag.com • Alaska Business Monthly • October 2011

According to Johnson, Alaska has experienced “widespread” decline in government, losing about 15,500 jobs from 2010 to 2011. The state’s unemployment rate has gone from 6.0 in June 2007 to less than 8 percent in June 2011. “That’s very healthy compared to other places in the United States,” he says. The state’s June 2011 unemployment rate was quite a bit lower than the national average of 9.2 percent for the same month. It also represents the smallest increase among the other two Pacific Northwest states, which came as a bit of a surprise to Johnson. “When you have a state that is, in many ways, unique and has a relatively small population, if you have a small decline in these industries, it can have a dramatic effect. But for many reasons, Alaska has kept a relatively strong economy.” Alaska’s non-farm employment increased from 2007 to 2011, expanding by 12,000 jobs or 3.5 percent. The state’s current preliminary non-farm employment level is 348,500, as reported by the Alaska Department of Labor. However, the construction industry lost about 1,500 jobs from 2007 to 2009. The decrease doesn’t sound like a lot, but it is significant given the size of Alaska’s work force, Johnson says. Alaska’s leisure and hospitality industry has also suffered over the last four years, although there was a little bit of an uptick in 2011. The employment level for June 2011 is 39,300 jobs. Employment for a number of industry segments in Alaska remained virtually the same. The goods-producing industries – which include construction and manufacturing – remained unchanged over the past four years except for a slight increase in 2011. This sector had 51,600 jobs as of June 2011. It was a similar story with the trade, transportation and utilities industry. Although the transportation sector has its unique challenges in Alaska, employment has held steady in this area since 2007 with the current level at 67,800 jobs. Employment has also been pretty fixed since 2007 in mining and logging, as well as the information industry (which covers land lines, wireless and paper publishing).

907.274.1000 ■ ■ ■

907.222.5005

Free Breakfast Free Wireless Internet Free 24-hour Airport Shuttle

■ ■ ■

907.277.9501

Free Business Center Downtown Locations All Locations Are Non-smoking

Proudly Alaska Native owned and operated.

www.akbizmag.com • Alaska Business Monthly • October 2011

WASHINGTON EMPLOYMENT STATISTICS Washington watched its unemployment rate rise from 4.4 percent for June 2007 to 9.3 percent for June 2011, according to Johnson. The state’s non-farm employment was 284 million in June 2007 and 2,835,000 for the same month this year. That’s a 131,000-job loss, which equates to a 4.4 percent decrease. “It’s a significant number, but I’m not terribly surprised about it, particularly since we’re going through the recession,” Johnson says. In the goods-producing group, Washington faced a significant decline from 518,500 in 2007 to 409,700 in 2011 – a loss of about 109,000 jobs. That represents a reduction of 21 percent and more than half the state’s total loss. Much of the loss was in the areas of construction and manufacturing. The construction sector dropped by about 75,500 jobs, going from 215,300 in 2007 to 139,800 in 2011. Manufacturing had a 29,200 dip in employment from 2008 to 2009. But from 2010 to 2011, there was a bit of good news: Employment increased by about 5,000 jobs. The total current

employment in this area is 263,700. In the trade, transportation and utilities sector, there was a tiny uptick in employment from 2007 to 2008. It decreased by 36,000 from 2008 to 2010. Then from 2010 to 2011, employment rose from 518,500 to 522,500. However, in the information software publishing industry, there’s been steady growth since. The leisure and hospitality sector has also been relatively stable, with about 279,000 jobs currently.

OREGON EMPLOYMENT STATISTICS In Oregon, employment has been trending downward since 2007. The state’s unemployment rate has grown from 5.0 in June 2007 to 9.7 in June 2011, Johnson says. Non-farm employment showed a significant depression, sliding from 1,749,000 jobs in 2007 to 1,643,000 jobs in 2011 for a 6.1 percent decrease. Among the individual segments, the goods-producing group fell 71,900 jobs between 2007 and 2009 and rose slightly over the past year. Employment in this sector went from 319,900 in 2007 to 224,400 in 2011.

The smaller mining and logging industry group lost jobs gradually, slumping from 7,300 in 2007 to 5,100 in 2011. Johnson says: “Logging was very strong in the mid-80s, and it’s gradually dropped off the map. It’s nothing like it has been before.” Oregon felt other job losses in construction, which plummeted from 105,800 in 2007 to 69,900 in 2011; in manufacturing, which tumbled from 204,500 in 2007 to 167,800 in 2011; in trade, transportation and utilities; which dropped from 339,000 in 2007 to 312,000 in 2011; and in information telecom, which gradually decreased from 7,700 jobs in 2007 to 6,600 jobs in 2011. The information and software industry remained essentially unchanged. And perhaps the “brightest” spot for Oregon is the leisure and hospitality sector. It had 176,000 jobs in 2007, and the number is virtually the same now – which Johnson describes as a positive situation. “Sure it would be nice for everything to grow, but a stable employment level is far better than a decreasing one,” he says. ❑

Serving Alaska with pride and environmental stewardship for more than 50 years.

Our strength comes from our people. Experience. Trust. Dedication. Commitment. These continue to be our most important assets. www.horizonlines.com

877.678.7447

www.akbizmag.com • Alaska Business Monthly • October 2011

R E SPONS E

R EC OV E RY

RE S TO RAT I ON

Bell Tech Inc. specializes in spill response and eco-recovery. Our services include the response, recovery and restoration as it relates to marine and land based oil spill decontamination. With over 24 years of experience ranging from the Exxon Valdez to the Deepwater Horizon Incidents Bell Tech has cleaned more contaminated vessels than anyone in the world. The patented Bell-Vac System that is used to facilitate the decontamination is unlike any other process as it is capable of 100% contaminant capture and recovery.

OUR ECO-FRIENDLY SERVICES INCLUDE BUT ARE NOT LIMITED TO:

Consulting and Contracting Phase I and II Environmental Assessment On-site Marine, HAZMAT and OSHA Training Arctic Ice and Frozen Tundra Recovery River & Stream Spill Recovery and Restoration

VESSELS

DOCKS

RIVER BANKS

BERTHS

VEGETATION

BARGES

BEACHES

SALMON STREAMS

Bell Tech received the Green award in 2009, 2010 and 2011 for designing environmentally safe procedures for use during all phases of oil spill cleanup.

belltechconsultants.com 1-800-537-6949 Bell Tech Inc.

537 Egan St.

P.O. Box 3467

Valdez, AK 99686

TOWNS

TRANSITION

BY HEIDI BOHI

Kenai/Nikiski Oil/gas exploration swings up, then down, then up again

be reason enough to rewrite history. The area’s first claim to fame came with Swanson River, just 20 miles from Kenai, and was the first major oil discovery in Alaska. Although the surrounding waters of Cook Inlet comprise the oldest-producing basin in Alaska, after a period of rapid growth resulting from offshore oil discoveries in 1965,

www.akbizmag.com • Alaska Business Monthly • October 2011

n keeping with the long-held tradition of towns being named after landmarks and natural resources, it is somewhat surprising that Kenai and Nikiski were not named after oil and gas. But if recent exploration activity in the industry in these small Peninsula communities is any indication, local leaders’ and resident’s relief might just

the steadily declining natural gas production since the mid-1980s has elected officials worrying about what will happen to jobs in the area. “For the most part, folks are quite happy to live here and appreciate the government services they have,” says Rick Koch, Kenai city manager. “At the same time, there is ongoing concern

about the loss of oil and gas field jobs and if those jobs, are no longer available what will take their place for skilled technicians and tradesman?”

INDEPENDENTS ARRIVE Although the industry is never expected to be the economic driver it once was – recent activities are regarded more as prolongment measures – as the mega energy companies begin to pull out of the area because the deposits are too small, it leaves room for smaller, independent operators to enter the market. This has produced recent increased interest in oil and gas exploration there. The Cook Inlet Region still has significant untapped reserves: an estimated mean of 19 trillion cubic feet of natural gas, about 600 million barrels of oil, and 46 million barrels of natural gas liquids are available, according to a new assessment by the U.S. Geological Survey (USGS). This estimate is of undiscovered, technically recoverable oil and gas resources, and includes unconventional and conventional resources. “What is really exciting is what it could mean in terms of well-paying jobs and the creation of that kind of infrastructure,” Koch says. This development is more critical than ever – as Agrium closed its Kenai nitrogen fertilizer operations due to a shortage of natural gas in Cook Inlet. ConocoPhillips’ has also announced it will also close its LNG plant in the near future, though the dates are uncertain. Buccaneer Energy Ltd., one of the smaller oil and gas companies that has been doing exploratory drilling since early this year, recently announced a gas discovery made in the Kenai Loop field is estimated to contain 38.3 billion cubit feet, or 4.8 million barrels of oil, which is four times the initial estimate. Additional wells are expected to be drilled before the end of the year and Koch says local leaders are hopeful that it could lead to a significant boost for the region and the state.

MORE’S GOOD At the same time, Chevron Corp.’s decision to sell its Cook Inlet producing properties to Hilcorp Energy means more exploration and more production from the Cook Inlet basin. This,

Koch says, is a shot of optimism for Kenai, and to a greater extent Nikiski residents, as it confirms that major oil and gas opportunities remain in the Cook Inlet basin. As petroleum industry companies start increasing business in the area, Koch says the City of Kenai is just starting to work toward developing the 30-acre Kenai industrial park near the airport so it can lease lots to new businesses. Based on the Palmer Industrial Park model, which was 10 years in the making and now employs 200 locals, 1.5-acre lots connected with all local utilities, will be leased and the city is also working to incentivize business development by offering lease credits to those that develop the parcels. Koch says the business development plan is based on the belief that companies such as Hilcorp and the Pebble Limited Partnership would take advantage of the central location. Assembly members and borough administrators say they have been approached by business owners who indicated interest in relocating to the Kenai Peninsula, and especially the Nikiski area, because it has oil and gas development and dock facilities. The park is expected to be completed by 2016. Although there are similarities between the sister communities of Kenai and Nikiski, their economies are substantially different, and this is especially apparent when it comes to the visitor industry. Nikiski is more of an industrial belt and is currently going through a transition resulting from the pending closure of the LNG plant there. There is potential growth as it is a likely stop for visitors on their on their way to the Captain Cook State Recreation area, but currently the potential for new business development is unrealized, says Shannon Hamrick, Kenai Peninsula Tourism Marketing Council (KPTMC) executive director.

NIKISKI GROWTH “Opportunities for growth need to be looked at so a plan can be developed to take advantage of them based on what Nikiski residents want,” Hamrick says, adding that residents live here for the remoteness and any development would need to be grass roots. “It’s one

of the communities on the Peninsula where most of the residents enjoy the privacy and quality of life they have and they are not living in Nikiski because they want to see the area grow.” In the meantime, the North Peninsula Recreation Area attracts both central peninsula residents and visitors who come for the indoor swimming pool with a slide, a picnic and camping area, and popular cross-country ski trails. The Jason Peterson Memorial Ice Rink also draws visitors traveling to the area for hockey tournaments from about November to March. There are also fly-out operators for bear viewing and fishing, as well as some bed and breakfasts and lodging facilities. Kenai, known for its sportfishing and as a cultural destination, is experiencing growing pains that are centered around the dipnetting fishery, which Hamrick says “is being loved to death,” as the area becomes a mecca for the sport that attracts tens of thousands of fishermen to a small area of the beach at the mouth of the Kasilof River. As participation in the area increases, so do the number of unhappy residents resulting from fishermen trespassing and vandalizing their property, environmental damage, crowd-control issues, and violation of fishery regulations. The city recently conducted an economic impact survey to see if the impacts on public safety and expenses to the city outweigh the benefits and is evaluating the data for future planning needs. Despite high fuel prices and the nationwide economic recession, Hamrick says the local perception is that the number of instate travelers and independent highway travelers from Outside – two of the key inbound markets – remains fairly steady. The KPTMC also continues to develop the small convention and meeting market, attracting groups of up to 150 to the Kenai Visitors and Cultural Center in downtown Kenai. Another promising market is birders and the KPTMC is working cooperatively to develop a birding platform on the Kenai flats and actively promote the annual Kenai Birding Festival, which showcases area birds, Hamrick says. Besides the economic development that results for Kenai, surrounding communities also ❑ benefit from events like these.

www.akbizmag.com • Alaska Business Monthly • October 2011

FISHING

Photo by Mark Stopha

The Taku River Reds Team (L to R): Len “Pete” Peterson and Sheila Peterson, Kirk Hardcastle and Heather Hardcastle and Renee Warr and Winston Warr.

Gillnetters Target Up-Market Salmon Sales Juneau partnership supplies high-end buyers with Alaska delicacy BY PAULA DOBBYN

hen Kirk Hardcastle thinks of wild salmon, he see strawberries and champagne grapes: delicacies requiring special treatment. “They’re just as fragile,” said Hardcastle, a Juneau gillnetter who grew up in California’s wine country and married into an Alaska fishing family. “If you have 10 or 12 people handling a strawberry from the time it’s picked until the time it winds up on your plate, what do you get? A bruised strawberry.”

For Hardcastle, salmon’s the same. After navigating thousands of miles through fresh and salt water over the course of years to finally spawn in their natal streams, these athletic, nutrient-rich fish should be treated extremely carefully when hauled aboard and processed. “These fish deserve to be honored,” he said. It’s with that passion and respect for wild salmon that Hardcastle and his

wife, Heather, together with her parents and two close friends, have built a successful artisan seafood company. The couple can be described as meticulous about how they handle their catch. Some might say fanatical. As co-owners of Taku River Reds, a direct-market seafood business based in Juneau, the Hardcastles are setting new standards for the gillnet-caught salmon they sell, mainly to high-end restaurants and markets in the Lower 48 and Hawaii.

www.akbizmag.com • Alaska Business Monthly • October 2011

â&#x20AC;&#x153;We freak out if we see someone handling our fish by the tail,â&#x20AC;? said Heather, a second-generation fisherman who was born and raised in Alaskaâ&#x20AC;&#x2122;s rainsoaked capital. Picking up a salmon by the tail forces blood back into the body cavity which leads to faster decomposition and that smelly fish odor, according to Heather. The Hardcastle operation is more than just about delicate handling. Itâ&#x20AC;&#x2122;s a business ethic that ensures every step of the salmonâ&#x20AC;&#x2122;s ocean-to-table journey results in a product that commands top dollar and yields superior taste. â&#x20AC;&#x153;The quality is the best that Iâ&#x20AC;&#x2122;ve been able to find in the market. Not only the way it looks at first glance, but the flavor and the shelf life. Itâ&#x20AC;&#x2122;s beyond anything Iâ&#x20AC;&#x2122;ve seen,â&#x20AC;? said seafood industry expert Tom Worthington, a partner of San Francisco-based Monterey Fish Market.

INTRAVENOUS PRESSURE BLEEDING Taku River salmon appear perfect, of course, when pulled from the water. But unless proper steps are taken immediately, the quality can quickly deteriorate. TRR crew members not only clean and ice the fish as soon as theyâ&#x20AC;&#x2122;re hauled aboard but they go one step further. Every sockeye, coho and king caught and handled by TRR undergoes intravenous pressure bleeding. Itâ&#x20AC;&#x2122;s akin to the embalming process used to preserve bodies, except no preservatives or chemicals ever go anywhere near these highly prized salmon. After a TRR salmon is brought on deck, a crewman slices its head off, removes the guts and inserts a hypodermic needle attached to a seawater pump into the fishâ&#x20AC;&#x2122;s dorsal aorta, the major artery that moves oxygenated blood from the gills throughout the body. The pressurized water flushes through the salmonâ&#x20AC;&#x2122;s circulatory system, forcing out nearly all the blood. Next, the crewman inserts the needle again, this time into the caudal artery, forcing any remaining blood out of the muscles and tissue and rendering a product that looks clean, smells like the ocean and remains fresh for about a week longer than non-pressure bled fish, according to the Hardcastles. â&#x20AC;&#x153;The salt in the seawater pushed through the fish acts as a natural preservative so the salmon stays fresh a lot

longer than it otherwise would,â&#x20AC;? said Dave Faulk, owner of Porterhouse, a luxury market that features meat, seafood, wine and cheese in Eagle, Idaho. Pressure bleeding is labor intensive and time consuming. Very few gillnetters and only a few trollers invest the effort in it, said Glenn Haight, development manager with the Alaska Department of Commerce, Community and Economic Development. â&#x20AC;&#x153;What Heather and Kirk are doing is pretty cutting edge. Theyâ&#x20AC;&#x2122;ve carved out a nice niche for themselves and they deserve a lot of credit,â&#x20AC;? said Haight.

Take your business to new heights with Avaya IP Office.

DISCERNING BUYERS Pressure-bled salmon tend to appeal to discerning fish buyers â&#x20AC;&#x201C; some might call them food snobs â&#x20AC;&#x201C; who prize aesthetics as well as freshness and taste. Because a pressure-bled salmon carries practically zero blood, the fish appears nearly immaculate, lacking the dark-red lines down the belly or blood smudges that nonpressure-bled salmon commonly have. â&#x20AC;&#x153;You can see belly burn within a few hours unless itâ&#x20AC;&#x2122;s pressure-bled,â&#x20AC;? said Worthington. â&#x20AC;&#x153;The blood is the first thing that goes sour.â&#x20AC;? While pressure-bled salmon costs more, many consumers appreciate the higher quality and are willing to pay for it, Faulk said. In July, he was retailing TRR king salmon for $22 a pound and sockeye at $18.99 a pound. He purchased it from TRR at $10 per pound for kings and $7.50 for sockeye. The mark-up includes the cost of his freight, employees who fillet and sell the fish to customers, and other overhead. â&#x20AC;&#x153;My customers are people who can afford pressure-bled salmon and who want top-quality fish,â&#x20AC;? Faulk said. Photographs of the TRR crew in rain gear hang on his seafood case. People love to know that a pair of Alaska families actually caught the fish that will be on their dinner plate that night, Faulk said. Elisa Jordan, the meat and seafood manager at Boise Co-op who spent several days fishing with the TRR crew a few years ago, said customers seem fascinated by TRRâ&#x20AC;&#x2122;s story. â&#x20AC;&#x153;I tell them about a woman on the boat who, before she cut off the salmonâ&#x20AC;&#x2122;s head, said â&#x20AC;&#x2DC;thank youâ&#x20AC;&#x2122; to the fish. These people are obsessed about treating the salmon with care,â&#x20AC;? Jordan said.

In todayâ&#x20AC;&#x2122;s highly competitive business environment, customer experience differentiates your company from the competition. With Avaya from MTA, you can improve customer service while improving your bottom line. s 2EDUCE MONTHLY COSTS s )NCREASE PRODUCTIVITY s !LLOW YOUR EMPLOYEES TO work remotely s 2ECORD CALLS FOR QUALITY control and training s 3EAMLESSLY CONNECT multiple locations

Call today and let MTA demonstrate the many features an Avaya phone system has to offer.

Palmer & Wasilla & Mat-Su s Anchorage & Eagle River s www.mtasolutions.com

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

exactly where you got the fish.” The depth of work was apparent during an offload in Juneau’s Harris Harbor last summer. As the F/V Heather Anne pulled up to the dock after a three-day opener, sheer exhaustion showed on the crew’s faces. At least six more hours of hard work still lay ahead. Remaining tasks included transferring the fish from the vessel to a waiting truck, driving the catch to a warehouse for sorting and packaging, and then driving the fish boxes to the airport for loading on jets bound for the Lower 48 and Hawaii. Accounting and boat maintenance followed. Despite the work and risk involved, TRR appears to be holding its own. The Hardcastles and their partners, Len and Sheila Peterson, and Renee and Winston Warr, have taken things gradually, building their business one step at a time. Still, the economic recession has not bypassed the company. “When the economy tanked in 2008, our sales dropped considerably. We’re still rebuilding,” said Len “Pete” Peterson, who founded the company along with his wife, Sheila. Photo by Len Peterson

AN ART FORM

A comparison of a non-pressure-bled sockeye salmon on the left and a pressure-bled sockeye salmon on the right.

TRR’s niche seafood serves the growing “slow food” movement comprised of people who eschew fast food and mass-produced grocery products in favor of healthier, sustainably raised meat, fish, produce and dairy items, Faulk noted. Although obesity continues to expand America’s collective waistline, the slow-food trend is gaining traction and TRR is grabbing a slice of that lucrative market, Faulk said.

FROM BOAT TO BUYER TRR is what the industry calls a direct marketer. The company has cut out the middleman and sells directly to buyers, taking charge of most aspects of the supply chain. Direct marketing is not for the faint

of heart. It’s a risky proposition on multiple fronts, including: making the investment to buy a permit, boat and equipment; securing markets; battling Alaska’s notorious weather; locating and harvesting often elusive fish; resolving mechanical problems; securing and satisfying finicky customers. And then, there’s raw, physical labor involved. “It’s a lot of hassle if you have to fish all day and then come back and have to handle the processing, packing and shipping,” said Tyson Fick, communications director for the Alaska Seafood Marketing Institute. “The advantage is maybe you squeeze a little more money out of each fish. And on the restaurant side, you can tell customers

The origins of TRR date to 1981 when Peterson, a retired Juneau school teacher, decided to augment his income with commercial fishing. Peterson, father of Heather, had spent the prior four summers crewing on friends’ boats so he wasn’t totally green when he bought his commercial fishing permit and a wooden gillnetter named the F/V AnneLee. But the first summer working the waters of Taku Inlet, about 15 miles south of Juneau, was anything but smooth sailing. “We fished all night and had a hard time finding any. It was pretty frustrating and nerve-wracking,” said Peterson. Peterson and his wife ended up catching 23 fish, one-tenth of what they had expected. On the second trip, instead of harvesting salmon, the couple snared a salmon shark. “The net was in shambles,” Peterson recalled. On their third opener, the Petersons managed to get their net wrapped around the propeller. Sheila dove into the frigid inlet to untangle it. They

www.akbizmag.com • Alaska Business Monthly • October 2011

eventually decided to cut the net loose. After that, the couple got certified in scuba diving so that they would be better prepared to handle any future nightmare scenarios. “I breathed a little easier after about the eleventh opener,” said Peterson. Fishing the Taku River, Southeast Alaska’s largest sockeye salmon producer, is never without its challenges. Straddling Alaska and Canada, the river cuts between steep mountains, has rocky shores and is prone to strong tides, unpredictable storms and harrowing winds. Mastering the transboundary river and its salmon fisheries requires mental toughness and formidable skill. “It’s an art form,” said Hardcastle.

COMING HOME For the Hardcastles, the decision to form TRR in 2003 with Heather’s parents stemmed from a combination of their love for fishing, a respect for Taku River salmon and a desire to share their passion for wild salmon with others. Previously, the Petersons had sold their catch to large processors and were

Photo by Kirk Hardcastle

Taku River Reds sockeye fillets on the grill.

disappointed to see how their carefully handled fish was lumped in with others that weren’t treated as well. The families figured they could do better.

They started pressure-bleeding and selling directly to friends and relatives in Alaska and beyond. Their efforts took off and soon restaurants and seafood markets began asking for their product. The Warrs joined them in 2007 and together the families bought a fishing tender so they could expand by purchasing salmon from other vessels that pressure-bleed their fish. “Our greatest limiting factor is finding fishermen who will pressure-bleed and sell to us,” said Hardcastle. For the Hardcastles, living in Juneau and running a family seafood company is the fulfillment of a shared dream. The couple, who met in Maui when both worked on whale-watching boats, wanted to live in Heather’s hometown and join her parents in commercial fishing. With their friends, the Warrs and the Petersons, the Hardcastles are enjoying a quintessential Alaska lifestyle and making a living selling a high-end product they love. “It’s like fine wine. You savor it. And some people are willing to splurge on a $125 bottle,” said Renee Warr. ❑

www.akbizmag.com • Alaska Business Monthly • October 2011

FISHERIES OP-ED

“With more coastline than the rest of the country combined, Alaska annually produces more than half of the seafood produced in the United States.” – Tyson Fick ■ Communications Director ■ Alaska Seafood Marketing Institute

Alaska’s catch provides jobs, feeds national and international markets BY TYSON FICK

t doesn’t take much to see the tremendous importance of the seafood industry in Alaska. The very existence of Alaska as a state is largely due to the influence of the fish business. Each year, seafood makes up about half of Alaska’s exports by value. The seafood industry is the largest employer in the state and, in many parts of Alaska, is one of few employment opportunities in largely subsistence economies. In fact, many coastal communities in Alaska might not be economically viable without the seafood industry. Commerce associated with landing fish, processing, and shipping them creates several positive externalities for local residents. Inbound shipping rates are cheaper because of the backhaul revenue provided by seafood. The industry also provides sufficient economies of scale for local utilities, commodity usage (fuel, etc.), and infrastructure projects such as roads and docks.

PREMIUM BRAND AND PRODUCT Alaska seafood is recognized around the world as a premium brand and a premium product. That success is largely due to the hard work of the industry and the support of government for proper science-based biological management, as well as funding for infrastructure and marketing. Numbers associated with the industry in Alaska are impressive.

Tyson Fick

According to a 2011 Northern Economics report commissioned by the Marine Conservation Alliance, in 2009 more than 53,000 workers were directly employed in the seafood industry, seafood

processing accounted for 37 percent of the private sector employment in rural Alaska, one in 11 rural coastal residents was directly employed in the industry, and the total economic impact of the

www.akbizmag.com • Alaska Business Monthly • October 2011

Alaska seafood industry was estimated to be $4.6 billion. The numbers coming in from 2010 and 2011 look to be even more impressive as Alaska fishermen have enjoyed high prices due to strong demand and solid statewide harvests. Alaska’s place in the domestic seafood landscape is no less impressive. With more coastline than the rest of the country combined, Alaska annually produces more than half of the seafood produced in the United States. Roughly 90 percent of the wild salmon harvested in any given year in North America is from Alaska waters. Despite large distances, sparse populations and a wide range of technical and logistical challenges presented by the natural environment, Alaska hosts six of the nation’s top 20 seafood landing ports by volume. All over the coast of Alaska there is ongoing investment in the infrastructure necessary to support this robust and growing industry.

GLOBAL OVERVIEW Although Alaska produces more than half of all U.S. seafood, it makes up less than 2 percent of the global seafood supply. Capture fisheries, such as those in Alaska, account for 62 percent of the world seafood and production in that sector has hovered around 90 million metric tons for more than a decade. Aquaculture production has increased substantially in the last decade, up from 32 million metric tons in 2000 to 56 million metric tons in 2009 and this trend is expected to continue. Alaska pollock, Pacific cod, wild salmon, snow crab, king crab, halibut and sablefish account for 96 percent of Alaska’s ex-vessel seafood value. Compared to the rest of the world, Alaska is a significant producer of these species. Alaska typically accounts for 35 percent to 45 percent of the world’s wild salmon harvest. Historically, Alaska has produced one-third to one-half of the world’s pollock – the largest whitefish fishery in the world. Halibut and sablefish are key high-value species for Alaska, and more than half of the world supply is caught in the state. So where does our fish go? Alaska seafood is seen all around the world and in many forms. Japan remains our largest trading partner with a quarter of all Alaska seafood going directly to the

Japanese market. Trade with China has been growing in recent years, boasting 20 percent growth between 2009 and 2010 and nearly eclipsing Japan. Other important markets include South Korea, the United Kingdom, Germany, Austria, France and Canada. Overall, 73 percent of Alaska seafood volume and 62 percent by value was shipped overseas in 2010. These exports represent new money into the economy and Alaska is a major player on a global scale. There are a number of factors to consider in understanding the international marketplace. Global economic factors, currency exchange rates, transportation expenses, global aquaculture production and a wide range of other pieces all fit together in a complicated puzzle. Rebounding economies and a relatively weak dollar have been good for export values, while the cost of transportation and competition from other global seafood producers have been a strain on the industry. Chile is rebounding quickly from a disease that decimated the salmon aquaculture industry there with an estimated 40 percent annual jump in farmed salmon production that could present major challenges in the coming years.

ECO TAGGING Another challenge to the Alaska seafood trade is significant customer confusion over eco-labels. Environmental groups have seized on an opportunity to offer a number of certifications on food products. What started as “organic” and “all natural” has mushroomed into hundreds of NGO-supported eco-labels from “fair-trade” to “sustainably harvested,” all of which come at a cost. “Sustainability” has become the major buzz word in the wild fish business, particularly in Germany and other European markets. This is largely due to the unfortunate fact that many other places in the world have not done as good a job at fisheries management as Alaska has. In Alaska, the sustained yield principle was written into the State Constitution more than 50 years ago. Overfishing has always been against the law in Alaska. Truth is, with the reauthorization of the Magnuson – Stevens Act in 2006, all seafood that is legally harvested in the United States is now sustainable by law. Despite this fact some NGOs

continue to exert pressure through the market place for additional third-party certification which, of course, increases the cost to the consumer. The Alaska seafood industry is fully supportive of sustainable seafood and the ongoing efforts of State, federal and international regulators to ensure Alaska seafood resources are responsibly managed. What is unclear is how much the industry and trade partners are willing to pay to have outside groups from other countries say so.

MARKET TARGETING There are a number of opportunities to move Alaska seafood into emerging markets, along with continuing and expanding relationships with existing partners. It is not just the growing middle class in China that offers opportunity to tap into new markets. For instance the Alaska Seafood Marketing Institute is now adding Brazil to the international program. This would seem an odd choice at first glance. But few know that a large portion of the cod exported to southern Europe (Spain and Portugal) is reprocessed into salt cod and shipped to Brazil. A closer look at the growing economic potential and the movement of fish products around the world shows Brazil to have tremendous potential. It is often said fish is the most-traded food commodity in the world. According to the Food and Agriculture Organization, an agency within the United Nations, global seafood consumption is at an all-time high. A Jan. 31 report on the state of world fisheries and aquaculture estimates that fisheries and aquaculture employ an estimated 540 million people worldwide. Never have people eaten more seafood and never have more people been reliant on the world’s oceans for their food and for their livelihoods. With Alaska enjoying the privileged place of having the highest quality, most nutritious fish coming from the best managed and most sustainable fisheries in the world, we can look forward to many ❑ great years to come. About the Author Tyson Fick is the communications director at the Alaska Seafood Marketing Institute.

www.akbizmag.com • Alaska Business Monthly • October 2011

ENERGY

Photos courtesy of Roger Hatton, Hatton Marine

National Geographic recently installed the EcoEmissions Catalyst Injection System on its passenger ship, the M/V Sea Lion.

Reducing consumption, cost and pollution in Alaska BY JULIE STRICKER

lternative power sources, such as wind turbines and hydropower systems, have been generating a lot of interest in the past few years in rural Alaska. What they’re not doing yet is generating much power. Diesel is king, and it’s got a king-sized cost attached to it. “The cost of electricity in Bush Alaska is sky high,” said Chris Mello, program director for the Alaska Energy Authority. “It’s crucial to the survival of the communities to have reliable, affordable energy.”

Diesel rules the seas as well. Alaska’s fishing and cruise ships all run on diesel power, and they need lots of it – you won’t see a Prius engine running a ship on the Discovery Channel’s “The Deadliest Catch” series. But amid all the storms, the drama, the breakdowns and the triumphs, what you will see are that the captain and crews of “The Deadliest Catch” are always looking for ways to get the job done better, faster and more efficiently. A recent initiative added a green component to that effort, and one boat,

the F/V Kodiak, has found a way to boost fuel efficiency, save money, reduce maintenance and reduce its carbon footprint in the ecologically sensitive Bering Sea. The Kodiak, owned by JLAX Fisheries LLC, and its captain, “Wild Bill” Wichrowski, had a system installed in its engine that reduced the amount of diesel fuel it burned by six gallons per hour as well as eliminating the black smoke from the exhaust. A side benefit is the crew no longer has to scrub diesel soot off the boat’s sides; time they can

www.akbizmag.com • Alaska Business Monthly • October 2011

spend on trying to haul in more crab. The system is called the Catalyst Injection System, patented by EcoEmissions Solutions. It is one of the ways Alaskans, who are reliant on diesel fuel to power their boats and their homes, are trying to use fuel more efficiently.

REDUCING COSTS Diesel fuel is responsible for 94 percent of power production in the 181 rural communities receiving Power Cost Equalization funding. As the cost of fuel has risen – it frequently hovers around $9 or $10 per gallon in some villages – officials have been looking for ways to use that fuel more efficiently. AEA and the Alaska Village Electric Cooperative have been working with dozens of rural communities to help reduce their energy costs by making the village power plants more efficient, using new technology and heat recovery systems. AEA is overseeing about 50 power plant upgrades in interior Alaska communities, while AVEC has partnered with NANA Regional Corp. in Northwest Alaska to boost energy efficiency. The projects pay immediate dividends, Mello said. In Ruby, for instance, electricity costs were about 55 cents per kilowatt hour. In Anchorage and Fairbanks, the average cost is 8.6 cents per kwh. Ruby’s old power plant got about 7.2 kilowatt hours per gallon of diesel. After the plant was upgraded, it got about 14 kilowatts per gallon. “We cut their electric rate in half,” Mello said. The new power plants use technology to improve efficiency. They use a set of four generators of varying sizes and are computerized so they can marry the load to the most efficient combination of generators. The old systems used a big generator, about 700 kilowatts, plus another for backup, that often generated far more electricity than was needed, especially if school was not in session, Mello said. In those cases, the excess power was simply dumped. When diesel was cheap, that wasn’t a problem. “If you want it to be simple, have one big generator,” Mello said. “If you want it to be fuel-efficient, you need a lot of high-tech parts.” AEA is also setting up heat recovery www.akbizmag.com • Alaska Business Monthly • October 2011

ENERGY SIDEBAR

Searching for Diesel Efficiency Testing Bering Sea technology on rural generators BY JULIE STRICKER new technology promising to boost the efficiency of diesel engines is garnering interest in rural Alaska. The technology, an air-based catalyst made by EcoEmissions is being used successfully on cruise ships and large fishing vessels, including the F/V Kodiak of “The Deadliest Catch.” On the vessels, it is showing a 5 percent to 10 percent reduction in fuel use, which would add up quickly in rural Alaska, where diesel can cost up to $10 per gallon. The payoff could also be substantial. According to the Alaska Energy Authority, villages that receive State Power A typical village power plant before an energy efficiency upgrade. Cost Equalization funding used 29.3 million gallons of diesel in 2009, the most recent numbers available. A 5 percent efficiency improvement translates into savings of 1.47 million gallons annually. It could also reduce carbon dioxide emissions by 32 million pounds. David Pelunis-Messier, renewable energy department project director of the Yukon River Inter-Tribal Watershed Council, is seeking a grant to test the technology in diesel-powered generator sets that are used in most Alaska villages. “The catalyst should work the same, if not better, in a village generator than in a propulsion system because village generators are on all the time and are running more consistently,” Messier said, adding that he has spent a substantial amount of time studying the differences in how the two types of engines operate. The grant is seeking about $250,000 through the Alaska Energy Authority’s Emerging Technology Fund. Much of that cost is for the equipment needed to set up the test, Messier said. He does not know, however, when any funding might come through. The EcoEmissions system is relatively new and Messier said it has not been added to the EPA’s list of approved clean technologies. Studies are still being conducted on what effect, if any, the addition of platinum to the combustion process has on the air.Messier said some village utilities want to ensure that the technology won’t void the warranties on their generator sets, but since all it does is add the catalyst to the air intake system, he believes -- as does EcoEmissions -- that it would not affect warranties. “You’re not modifying the engine; you’re not modifying anything to the fuel line,” he said. “All you’re doing is adding the catalyst to the air intake. If you run out of catalyst, nothing happens. The engine continues to run just as it did before.” The EcoEmissions Catalyst Injection System puts a platinum-based catalyst into the air intake system of a diesel engine. The catalyst reacts chemically with the fuel, breaking down the long carbon chains into shorter ones that burn at a lower temperature and more efficiently. The result is more energy from a gallon of fuel, as well as a huge reduction in emissions. “All of that back smoke that you see belching from a diesel engine, you’ll be getting rid of that,” Messier said. Engines don’t soot up as they do while running regularly and require less overall maintenance. Messier said crews of the boats with the system installed give it rave reviews. “If it’s good enough for the Bering Sea fishing boats, it’ll pay big dividends here in rural Alaska,” ❑ Messier said.

www.akbizmag.com • Alaska Business Monthly • October 2011

Photo courtesy of Alaska Energy Authority

Selling Your Co m p a n y ? 0DWWKHZ )LQN Commercial Properties Business Specialist 23+ Years Experience • • • •

Detail of EcoEmissions Catalyst Injection System on the M/V Sea Lion.

systems that pipe the excess heat from the generators to the village school or washeteria, two of the biggest energy users in a typical community. “Heat recovery systems allow us to maximize how much energy we’re able to extract from a gallon of diesel,” Mello said. Maintenance is another key to keeping the generators running efficiently and AEA trains people in each community to run the power plants. It partners with Seward’s Alaska Vocational Technical Center, which offers classes in tank farm and power plant operation, as well as wind and hydropower systems. AEA also set up a remote monitoring system enabling workers in Anchorage to look at how power plants in about 25 villages are operating in real time. It has cameras in the control rooms of the power plants so a technician in Anchorage can help those in a village diagnose and fix problems without having to arrange a flight to the Bush.

ENERGY EFFICIENCY Out on the Bering Sea or along Alaska’s inland passage, flying a technician in to solve an engine problem is not a viable option, so any technology used to improve efficiency has to be simple, said Roger Hatton of Hatton Marine in Seattle. Hatton Marine installed the Catalyst Injection System on the Kodiak as well as on several cruise ships operating in Alaska and along the Northwest coast.

The EcoEmissions system is designed for commercial vessels that operate 3,000-plus hours per season, Hatton said. “The fuel savings will pay for the product in the first year. The boats are running cleaner and you’re using a higher percentage of fuel and getting more power out of less throttle.” Hatton said he and his brother Craig, who owns Hatton Marine, weren’t impressed when they were first approached about the EcoEmissions system – they regularly see products touting an ability to save fuel and improve engine efficiency, though most are complex or rarely work. Hatton Marine installed the system on the starboard engine only of Cruise West’s Spirit of Endeavor in April 2009 as a test. The ship operated all season along Alaska’s Inside Passage and returned to Hatton Marine, where the engine was dismantled and compared with the port engine, which operated normally. Roger Hatton said the results were startling. “I actually saw real-world results,” he said. “The (starboard) engine was cleaner than it had been 3,000 hours before.” In addition, there was no soot from the exhaust on that side of the boat and it had used 8 percent less fuel than the port engine, a $27,000 savings. The system was then installed on the other engine and two other vessels in the cruise line. Cruise West went out of business in

Value Assessment Consultation Packaging Results

ILQN#DODVND QHW

3111 ‘C’ Street, Suite 100 Anchorage, Alaska 99503

www.akbizmag.com • Alaska Business Monthly • October 2011

fall 2010 and the Spirit of Endeavor is now owned by American Safari Cruises. The 86-passenger vessel has been fully renovated and will be launched for the 2012 tour season, said cruise line owner Dan Blanchard. Hatton Marine has installed the system on the M/V Sea Lion, a National Geographic cruise ship, as well as Argosy Cruises vessels and the F/V Aleutian Beauty. The system itself is very simple, Hatton said, and doesn’t interfere with how the engine runs.

HOW IT WORKS At a very basic level, engines are driven by fire. Combustion requires three things: air, fuel and heat. More efficient engines burn less fuel more completely at a lower temperature. The EcoEmissions system uses a chemical reaction to do that. Unlike other systems, which usually add something to the fuel to make it burn better, the EcoEmissions system puts the catalyst directly into the air intake system, said Paul Masson, vice president

Franchise For Sale Own your own business with a 21-year success record as the leader in specialty freight solutions. Join our network of 67 independently owned franchise locations across the U.S. offering the nation’s leading customized packaging, crating and shipping solutions. A Craters & Freighters Anchorage franchise is now available. Call today and ask for Mike!

800.949.9931 www.CAndFFranchises.com

of field operations and business development for EcoEmissions Solutions. Diesel fuel is made up of chains of hydrocarbons, Masson said. “The longer the chain, the higher the temperature required to make them burn. The shorter the chain, the lower the temperature needed for combustion.” The platinum-based catalyst is nebulized – think of an asthma inhaler – and is injected into the engine as a vapor. There, the chemical reaction breaks down the chains of carbon in the diesel fuel, making them combust at a lower temperature and burn more completely. Since the fuel burns at a lower temperature, it also shortens ignition lag and allows the engine to burn more of the fuel in each cycle, increasing torque. Although wind, waves, load and a skipper with a heavy hand on the throttle are all factors in how much fuel is burned, the system yields about a 5 percent to 8 percent fuel reduction, Masson said. Maintenance is also reduced, since there is less unburned carbon to foul the engine. Each bottle of the catalyst lasts about 500 hours, Hatton said. The process also reduces smoke, which is caused by carbon chains that were only partially burned. “The energy in those chains was never converted to power, it just went out the exhaust shaft,” Masson said. Less smoke is a boon to cruise ships because emissions often are at odds with the natural world people aboard want to see. EcoEmissions originated as a company working on land-based heavy equipment and has since changed its main focus to the marine industry. The International Maritime Organization, a United Nations agency that regulates shipping, recently adopted strict pollution rules forcing vessels traveling within 230 miles of the United States and Canada coasts to reduce sulfur levels by 98 percent by 2015. “Going ‘green’ isn’t an option anymore – it’s being regulated by the international community,” Masson said in a 2010 news release. That puts the captain and crew of ❑ the F/V Kodiak one step ahead.

www.akbizmag.com • Alaska Business Monthly • October 2011

ENERGY

Small-scale ideas for the future BY RINDI WHITE

Small-to-medium reactors are either in advanced design stages or are being built in Russia, Argentina, South Korea, China and South Africa. In these new units, there are no pumps, fans or blowers. Instead, cool air is brought in through one vent and not air is exhausted through another.

hile the hearts and minds of some are still thinking about the largest nuclear accidents in history, some in Alaska are pushing for modest nuclear facilities to supply relatively inexpensive power to both urban and remote communities. Marvin Yoder, former city manager for Galena, touted the benefits of smallscale nuclear power at a May meeting of the Mat-Su Small Business Alliance in Wasilla. While working in Galena, a job he held until 2006, Yoder teamed with Toshiba Corp. in an effort to build a small-scale nuclear power plant there. The project stalled at the Nuclear Regulatory Commission, which Yoder said has yet to review or approve any applications for small nuclear facilities. Yoder is no longer working on behalf of Galena, but he said he stays in contact with representatives from Toshiba and actively promotes small-

scale nuclear power both in and outside of Alaska. He traveled to Washington D.C. and South Carolina in the past year to promote nuclear power. Nuclear power suffers from an image problem. People link the technology to major accidents like the 1986 Chernobyl accident in Ukraine, and now the failure of Japan’s Fukushima Daiichi Nuclear Power Plant. That plant experienced several partial meltdowns after its backup generators, which were cooling the reactors, failed. The failures led to several explosions and the release of radiation. That doesn’t have to happen here, Yoder said.

SMALLER MAY BE BETTER Fukushima Daiichi was capable of developing nearly 5,000 megawatts of power, much more than Alaska uses. By contrast, the Railbelt in Southcentral

– the connected grid that extends from Homer to Fairbanks and supplies most Alaskans with electricity – uses about 800 megawatts. Alaska wouldn’t need a large reactor, Yoder said. The Toshiba 4S reactor the city of Galena considered building would have generated 10 megawatts of power. Small-scale reactors range in size from 10 megawatts to 50 megawatts or 125 megawatts, though multiple reactors can be combined to generate more power. “I think 400 megawatts of nuclear power could be purchased cheaper than building Susitna (a hydroelectric project on the Susitna River the State is studying for possible development). If you’re looking at cost, it has to be in the mix. I think there needs to be a realistic evaluation,” Yoder said.

NEW TECHNOLOGY MAY BE SAFER But what would prevent a Fukushimalike accident from happening here? New technology, Yoder said. “We’re frozen in 1980. Technology in other countries have moved on and we haven’t,” he said. Most U.S. nuclear plants are similar in size and construction to the Fukushima Daiichi plant. The Fukushima plant, commissioned in 1971, relied on electric-powered pumps to keep the reactors cool, a design element that eventually caused its downfall. The March 11 9.0-magnitude earthquake took out power to the facility and then its backup generators failed after being hit by a tsunami. Meltdowns followed. Following America’s own nuclear incident – a series of small equipment failures that led to a meltdown at the Three Mile Island plant in Pennsylvania on March 28, 1979, the Nuclear Regulatory Commission and U.S. Department of Energy have declined to

www.akbizmag.com • Alaska Business Monthly • October 2011

approve any new commercial nuclear reactor designs in the past 30 years. “Building nuclear power plants didn’t stop, it only stopped in the U.S. There are still people building nuclear power plants in other places and the technology continued to go on,” Yoder said. Several small-to-medium reactors are either in advanced design stages or are being built in Russia, Argentina, South Korea, China and South Africa, according to the World Nuclear Association, an international agency that supports the nuclear energy industry. The new push is for plants that are largely pre-built modular facilities. The Toshiba 4S reactor Galena considered is powered by liquid sodium heated in the reactor to about 500 degrees Celsius. That produces steam, which is used to power an above-ground turbine. Others involve enclosed reactors about the size of a hot tub “There are no fans, there are no big pumps, there are no blowers. It’s done by bringing in cool air through one vent and exhausting hot air through another,” Yoder said.

Yoder isn’t alone in touting the new, smaller reactors. A 2009 opinion piece by venture capitalist Bob Metcalfe in the Wall Street Journal states that small-scale nuclear power might be a gateway to inexpensive and environmentally safe energy production. “With no control rods to jam, they are far safer than the old models – you might well call them nuclear batteries. By not using weapons-grade enriched fuels, they are nonproliferation. They minimize nuclear waste. And they’re economical,” Metcalfe stated. Gwen Holdmann, director of the Alaska Center for Energy and Power, stated in a recent presentation on small-scale nuclear power that now might be a good time for Alaskans to consider nuclear power. Holdmann, in her presentation, pointed out that President Barack Obama’s FY2011 budget includes $5 4 billion in loan guarantees, enough to build six or seven new nuclear plants. In February 2010 another $8.3 billion in loan guarantees was announced for two plants in Georgia, the first plants built in the

U.S. in 30 years. The president created a commission to study how to deal with nuclear waste, Holdmann stated, and the federal Nuclear Regulatory Commission is considering 13 applications for large plants. Dennis Witmer, an energy consultant who assisted Holdmann with the report on small-scale nuclear power, said while there are several factors that make nuclear power attractive in Alaska, the reality is that smallscale nuclear power plants are still a long way off. Witmer said the largest hurdle to small-scale nuclear development is the Nuclear Regulatory Commission. Not only has that agency not approved a new nuclear facility in 30 years, but also it hasn’t even started analyzing the numerous applications for small-scale nuclear facilities. Someone has to pay for research and development, which alone can cost millions of dollars. “(It’s) an interesting idea and we ought to keep an eye on it,” Witmer said. “But at this point in time, especially after Fukushima, I don’t think it makes ❑ any sense to advocate for it.”

www.akbizmag.com • Alaska Business Monthly • October 2011

MANUFACTURING

Manufacturers Face Harsh Realities Producing products in Alaska means freight, financing and a host of other challenges BY GAIL WEST

Photo by Ralph Carney

ccording to the 2011 Manufacturing and Logistics Report Card, produced by Ball State University’s Center for Business and Economic Research, the Alaska economy ranks dead last among the 50 states in both manufacturing and diversification. The report went on to say “manufacturing firms are not necessarily reliant on local demand for goods and are therefore footloose. Their location then depends more on local factors, such as the quality and availability of the labor force, transportation infrastructure, non-wage labor costs, access to innovative technologies and the cost of doing business.” It also said: “States which have a high proportion of manufacturing activity in a single sector typically suffer higher volatility in employment and incomes over a business cycle. Less diversified regions are also more likely to experience greater effects of structural changes to the economy which involve a single sector.” Alaska’s economy, with its almost total reliance on the oil and gas industry, is in a precarious position when the price and availability of product declines. The need to diversify is obvious, and one of the arenas into which the state could move is manufacturing. “One of the biggest challenges to manufacturing in Alaska is distance,” said Tom Myers, interim executive director for Alaska Manufacturing Extension Parnership Inc. It impacts manufacturers at both ends of the spectrum – obtaining any raw materials needed from the Lower 48 (or elsewhere) as well as shipping product back Outside for sale. “The distance is a detriment to competition in national

Anchorage’s Alaska Chip Co. manufactures four types of chips in two different bag sizes using potatoes grown in Alaska.

and international markets,” Myers said. Time is an additional cost to shipping raw materials to Alaska, and that time has to be calculated into the production of any goods manufactured locally. “If it cost me $200,000 to be (in Alaska) last year and it didn’t cost my competitor that, then he has $200,000 more available to him to market and to invest in his business than I have,” said Brett Gibson, founder and owner of Arctic Paws LLC, maker of Alaska salmon-based dog treats Yummy Chummies. “ Consequently, he can beat me, from a company perspective. The more I sell and the more I make here, the more money it costs me to stay here.” Gibson summed up the challenges of manufacturing in Alaska into a very succinct nutshell. “Take glycerin, for example,” said

Gibson. “It’s one of the ingredients in my product that I can’t source in Alaska. My lead time to get it is three weeks. If I were located in the Lower 48, I could have it in about four days. Add that to the shipping cost – the last time I bought it, the shipping was almost as much as the product itself. Then I put it into the product and I paid to ship it back. It probably cost me three times what it might otherwise have cost. “When you start talking about volumes – we’ll probably ship about 20 truckloads before the end of the year – it puts me behind the 8 ball,” he added.

STATE INCENTIVES Myers said he’s seen several Alaska manufacturers head Outside to gain the benefit of State-sponsored incentive programs. “They usually move to Montana,

www.akbizmag.com • Alaska Business Monthly • October 2011

Minnesota, Washington,” he said. “Those are the three primary states. All three have programs established by their legislatures to assist in acquiring venture capital. In fact, Utah has a statefunded venture capital program with up to $6 million in capital for companies starting up or expanding. “We’ve proposed a program, but it’s gone nowhere in Juneau,” he added. “Until we have a venture-capital climate in Alaska that assists manufacturers, no matter what growth stage they are in, we will continue to be at the very end of the line.” Myers, Gibson and Greg Galik, chairman and managing member of the Alaska Brands Group –the business launching a water bottling plant in the Matanuska Maid building in Anchorage – both say Alaska has done nothing to incentivize manufacturing in the state. Galik’s company has eyes on the Asian market. “The investment capital, the banking climate here is so disappointing,” Galik said. “The basic answer is ‘no, we’ll see you in two years.’” He says he is surprised by the lack of support for new manufacturers in the State and the City of Anchorage governments. “Many barriers are thrown up, such as the Municipality permitting and UL listing requirements for equipment, utility costs and other taxes,” Galik said. “No incentives are offered to stretch start-up capital and financing for a business to get up to the speed and volume of production that we need to reach. Most of us up here in manufacturing know one thing: We must produce a high volume in order to lower our costs, in order to be able to compete in the Lower 48 and the world.” The State government has to ask itself some hard questions, Gibson added. “What’s the value of a job to the state? Do they truly want manufacturing here? If they want manufacturing jobs not specifically oil related, if they want to see more finished, value-added processing, they’re going to have to figure out a way to offset or minimize the inherent cost of manufacturing locally,” he said. “If you want to be able to manufacture and export consumerbased goods, to keep those jobs here instead of letting the Lower 48 suck

Arctic Paws LLC

Alaska-based Arctic Paws LLC found a way to create dog treats from unused salmon portions.

them out, there needs to be something to offset the costs of shipping raw materials that can’t be purchased here. “The State has to level the playing field for local manufacturers,” Gibson said. “That’s the only way I can see manufacturers staying here long term. There has to be something to offset those higher costs. My company is feeling those inefficiencies very hard at this juncture. I don’t want the 18 jobs we provide to evaporate and be lost to the Lower 48, but every year the cost to the company of manufacturing in Alaska goes up. I haven’t given up yet on finding a solution, but at some

recognized menu brand in restaurants. We help consumers develop a preference for Alaska-made products.” Ayers also said the State has a productpreference program for contractors. “If a local product or service is registered in the program,” Ayers said, “the provider of those services or products gets extra weight in the bidding process and can get additional consideration with regard to pricing.” Bill Webb, program manager for Made in Alaska, said while freight is the biggest challenge faced by Alaska’s manufacturers, there are others. “The costs of labor, the high price of energy and construction are three additional big components,” Webb said. “Insulfoam has done a remarkable job of producing a very light-weight product, and they produce it here.” Webb went on to say, however, that Insulfoam also has expanded into the Lower 48 and doesn’t ship its product Outside.

SMALL PRODUCERS While large manufacturers such as Galik and Gibson wrestle with the challenges of finding capital and producing goods in Alaska for distribution in markets elsewhere, there are smaller manufacturers who begin their production without access to large investors. “About 97 percent of all businesses in Alaska are micro-enterprises of five people or fewer,” said Myers. “Their

"I don't want the 18 jobs we provide to evaporate and be lost to the Lower 48, but every year the cost to the company of manufacturing in Alaska goes up.” – Brett Gibson ■ Owner ■ Arctic Paws LLC point, I’m going to have to look at the economic reality of staying in Alaska.” State government does help support several programs that help entrepreneurs and manufacturers, AMEP and Made in Alaska among them. According to Wanetta Ayers, director of the Alaska Division of Economic Development, Made in Alaska is designed to build brand value for Alaska products. “It’s one of the primary ways we can help Alaskans increase the value of their products both inside and outside the state,” Ayers said. “ASMI (the Alaska Seafood Marketing Institute) has made Alaska seafood the second most

first $250,000 of start-up capital comes from the three Fs: friends, family and fools.” Myers added that they start slowly and build over time as additional capital is available and the market demands. There’s a host of examples of these businesses starting and succeeding. Bear Creek Winery in Homer, a small boutique business started in 2003, grows and buys berries and rhubarb to blend with juice shipped primarily from California. Owners Bill and Dorothy Fry started producing their wine as a hobby. “We said ‘oh, this isn’t going to cost a thing and we can have all the wine we can drink,’”

www.akbizmag.com • Alaska Business Monthly • October 2011

Photo by Steve Cornish

Dorothy said. “Then we started having neighbors and friends over, we’d hand a bottle to the water guy, make them gifts – and pretty soon people said ‘We have to have some of your wine, it’s awesome. We want to buy some.’ It just was a hobby run amok.” The Frys said one of their biggest challenges is obtaining berries for their wine blends. They said they’ve bought from locals and are now buying some berries from a Native corporation. “Everything we make contains something Alaskan,” Dorothy said. In turn, she added, the company handles as much of their purchasing as possible locally, too. “All of our printing and as much business as we can, we give to Alaskans.” Initially, the Frys kept their wine distribution close to home. But as the business grew, they chose to begin working with a statewide distributor, Specialty Imports, and Vino Shipper, a national distributor. “We were self-distributed in the early days,” Bill Fry said. “We’d start a week by saying, ‘Okay, who’s going to Seward this week?’ Now, we’re distributing to several other states. “One of the hardest decisions,” Bill added, “is deciding how fast to grow.” “There’s a really fine line between being able to keep up with the public who want your product and maintaining your expenses at a manageable level. It’s very expensive and hard to distribute things from here,” Dorothy added. In addition to the same distribution problems faced by other manufacturers, the Frys have had to help pioneer

The Bear Creek family: Open House celebration! Clockwise from left: Bill Fry, Jasmine Maurer-daughter, Nikki Geragotelis-daughter, Louis Maurer-son in-law, Ruth Frye-Bill’s mom, Pam Breckenridge-Don’s girlfriend, Don ArseneauDorothy’s dad, Dorothy Fry.

foot building, additional 10,000-squarefeet of leased storage space, and has nearly 60 investors, although Staples and Miller continue to hold the majority of shares. “We moved into our current building about two years ago,” said Gary Busse, general manager of Midnight Sun, “and we’ve pretty well maxed out here. The brewery, in addition to producing and aging its beer, also hosts a small restaurant and a “to-go” bar with 16 varieties of beer on tap – sometimes more than 16, Busse said. “We’re a small brewery,” Busse said, “and nearly everything we need to produce a beer has to be shipped up from Outside. Then, after we produce a beer,

“… it’s a challenge for us to produce a product people want, but not at a price that will scare them off.” – Gary Busse ■ General Manager ■ Midnight Sun Brewing Company LLC the whole wine-producing industry for Alaska. “There are questions we have that the State has never heard of,” Fry said. Midnight Sun Brewing Company LLC is another such small producer that has outgrown its infancy stage and is beginning to expand outside Alaska. Starting as a garage home-brew operation, owners’ Mark Staples and Barbara Miller opened the commercial brewery in 1995. Since then, Midnight Sun has grown into its current 10,000-square-

it has to get back on a boat and go back Outside – plus our beer is a perishable product with a shelf life. We have to pay a surcharge to keep the beer from freezing or becoming too hot. Those costs put us at a disadvantage. “For brewers in the Lower 48, their raw ingredients are less expensive and shipping is less. So it’s a challenge for us to produce a product people want, but not at a price that will scare them off. If you have a great product, people don’t mind paying a little more,” Busse

added. “Our biggest challenge is to be price competitive.” Midnight Sun seems to be managing its price challenge, because Busse said the brewery already distributes its beers in Alaska, California, Washington and Oregon and planned to begin distribution to Hawaii in August and New York in September. “We get calls from other states, too,” Busse said. “Our beers have a very good reputation and, through beer trading, reviews and beer taken home by visitors we do see our beer going to all 50 states. The biggest reason we aren’t going into more states is because we lack the production capacity to meet additional demands.”

BUY ALASKAN Asking your local liquor or grocery store – even the big box stores – for products manufactured in Alaska can be very effective. “The bottom line is sales. It’s this way for every company,” said Ralph Carney, owner of Alaska Chip Co. “You have to have a good quality product, you have to make it in quantity, but it’s still the issue of sales. You have to build market share to keep growing. “What our company needs, and other Alaska manufacturers need, are more Alaskans buying our products. There’s a portion of Alaskans that buy local but there’s still a very large portion

www.akbizmag.com • Alaska Business Monthly • October 2011

who don’t, and some stores that don’t buy Alaska products. Alaskans have to ask stores to carry Alaska products.” Carney said his company buys its potatoes from Vanderweele Farm in Palmer, but has to buy his bags and oil from the Lower 48 because there are no producers in Alaska. Busse also said the brewery buys local ingredients for its menu items wherever possible, but can’t buy Delta barley because it’s not the right kind of barley for beer. Gibson, however, does buy Alaska barley to use as a binder in his Yummy Chummies. Not only does buying Alaskan make sense money-wise, but it helps support the chain of local manufacturers. “The tourism industry and local restaurants have been good markets for our chips,” Carney said, “and we ship them from Juneau and Ketchikan to Fairbanks. We’ve also shipped out to the Bush.” Carney added that Alaska Airlines had served Alaska Chip Co. chips for a while, but found the higher cost of the snack unsustainable. Alaska does, however, continue to offer the Alaska chips in their boardroom, Carney said. “One of our biggest challenges is getting our products to the grocery store and getting shelf space,” he added. Everyone competes for that shelf space, so it helps if Alaskans buy local – the stores will respond.

and people around the U.S. seem to agree. If you’re going to manufacture something in Alaska and sell it Outside, it better be a damn good product.” Glenn Haight, development manager for the State’s Division of Economic Development cited the Alaskan Brewing Company as another good example. “They’re truly a leader in the brewing industry,” he said. Of course, there are a host of other Alaska manufacturers trying to make a go of business in the 49th state and creating everything from

Alaska Native art to timber products. “There are currently 1,200 permits out to Alaska manufacturers,” said Made in Alaska’s Webb. “Proportionally, that’s amazing. One of the most recent was to a business that will make the machines that make blue-ice packs. This is one of the largest markets for those ice packs, and now we’ll be making the machines that make them locally. There is story after story like that. We have very innovative entrepreneurs here and some very unique manufacturing efforts.” ❑

NOTHING ANOTHER

1200 SQ FT WOULDN’T FIX. At Northrim, we’re a local bank that can recognize unique economic opportunities and help your business and Alaska’s economy grow. If you’re ready to align your business for the future, let’s have lunch.

1.5

NORTHRIM BANK. ACHIEVE MORE.

VALUE ADDED Often, Alaska manufacturers begin their products with a superior ingredient to what they could find outside the state. Berries and salmon are good examples. “Alaska berries are unmatched and make very good wines,” Fry said. Gibson entered the pet food market using fish products that were underutilized. “We created a whole new industry that’s a subset of the humanconsumable seafood industry,” Gibson said. His first sales were inside the state, but now Yummy Chummies with Alaska salmon compete favorably against similar pet treats that have sprung up Outside to mimic Gibson’s idea. Alaska’s brews also compare favorably to microbrews created in the Lower 48. “The way we’re able to succeed despite the price,” Busse said, “is that we make what we feel is a great product

northrim.com

www.akbizmag.com • Alaska Business Monthly • October 2011

OCT.

17-22

ALASKA THIS MONTH

BY NANCY POUNDS

Alaska Federation of Natives Event Unifies Participants

Annual convention features forums, arts and crafts show, dance performances

Sen . Mark Begich speaks to Alaska Federation of Native convention attendees in 2009. This year, the AFN convention will be held Oct. 20-22 in Anchorage at the Dena’ina Civic and Convention.

istory and tradition, family and friends converge this month at the Alaska Federation of Natives convention Oct. 20-22 in Anchorage. The event, held at the Dena’ina Civic and Convention Center, is also the setting for sessions discussing top statewide issues and AFN delegates voicing their priorities. The annual convention features the Alaska Native arts and crafts show and sale, an exhibit fair, health fair, Quyana Alaska Native dance performances and a closing reception and banquet. The annual elder and youth conference is Monday, Oct. 17 and Tuesday, Oct. 18. Event organizers purposefully plan the agenda of speakers and forums around a central theme.

‘STRONG AND COMPLETE’ “AFN’s 2011 theme of Strength in Unity recognizes our belief that everyone in the Native community has value and matters,” said AFN President Julie Kitka. “Together we are strong and complete. Every Native organization contributes in its own unique way, and represents an essential part of our ‘whole.’” Kitka is mindful of charting a unified course for Alaska Natives into coming decades.

“The time and energy we put towards building a better future for the next generation will unfold and multiply,” she said. “We have benefited from the work and tireless energy of those who have gone before us – our history continues to inspire us to do our best and contribute. AFN is all of us working together.” The AFN convention draws up to 5,000 people to Anchorage and is an economic boon to the city, said Jack Bonney, public relations manager for the Anchorage Convention and Visitors Bureau. The convention has an estimated economic impact of $5.3 million for Anchorage, Bonney said. AFN attendees spend money at retailers, hotels and restaurants citywide. However, the AFN convention has wielded its economic sway outside Anchorage: Last year, the convention was held in Fairbanks. The annual convention’s value transcends dollar figures, he added. “The AFN convention provides a special opportunity to celebrate Alaska Native heritage and provides all Alaskans with important cultural opportunities,” Bonney said. AFN was created October 1966 when more than 400 Alaska Natives representing 17 Native organizations gathered for a three-day conference to address Alaska Native land rights. The event was the first AFN convention. Since then, the convention has changed to meet the evolving needs of Alaska Natives and respond to new challenges and address Alaska Native interests at State and federal levels. The AFN convention agenda and proposed resolutions reflect priorities of the Native community.

4,000 STRONG AFN delegates are elected on a population formula of one representative per 25 Alaska Native residents in an area, according to event organizers. Delegate participation at the annual convention usually tops 95 percent. About 4,000 delegates are expected to attend this year. The convention is broadcast statewide via television and live-streaming video on the AFN Web site. This year’s Iditarod Champion John Quniaq Baker will deliver the keynote address. The convention is geared toward AFN delegates and members, and visitors are welcome at assembly sessions with speakers and forums, the arts and crafts show, exhibit fair and health fair. The arts and crafts show will be set up at Dena’ina Center’s first floor and run Thursday and Friday, Oct. 20-21 from 8 a.m. to 7 p.m.; and Saturday, Oct. 22 from 8 a.m. to 3 p.m. The Quyana Alaska dance performances are set for Wednesday, Oct. 19, and Thursday, Oct. 20 from 7-11 p.m. at the Dena’ina Center. For more information, visit nativefederation. org/convention. ❑

www.akbizmag.com • Alaska Business Monthly • October 2011

OCT.

1-31

EVENTS CALENDAR

ANCHORAGE 10/1 The Refugees Accomplished solo artists Cindy Bullens, Deborah Holland and Wendy Waldman wow audiences with their soaring harmonies, indelible musicianship, and unforgettably humorous stage presence. Each of The Refugees has logged more than three decades in touring, with 19 solo albums and multiple Grammy Award nominations to their credit and featuring musical styles that blend country, rock, folk, and Americana. This show is guaranteed fun! Time: doors at 6:30 p.m.; event at 7:30 p.m. Held at Alaska Center for the Performing Arts. Contact: 907-263-ARTS. 10/1 2011 Elmendorf Arctic Bazaar Come help the Elmendorf Officers’ Spouse’s Organization. A nonprofit organization that raises funds to support the Elmendorf and surrounding communities by way of charitable contributions and scholarships. Vendors come from all over Alaska to sell their unique products. This year the EOSO will host its Annual Arctic Bazaar on Saturday, Oct. 1 from 9 a.m. – 5 p.m. at Hanger 20 on base. Enter at the Post Road gate w/a valid photo ID. This is a free event open to the public. Held at Joint Base Elmendorf Richardson. Contact: www.elmendorfoso.com. 10/6 Signature Chefs Fundraiser Each year the March of Dimes hosts their annual tribute to the outstanding culinary talent in Anchorage at the Signature Chefs Auction. This year, we will invite 11 of the most prominent chefs to share their signature tastes with our audience. A silent and live auction feature one-of-a-kind culinary experiences with the participating chefs and wineries. Held at Dena’ina Center. Time is to be announced. Contact: http://www.marchofdimes. com/alaska/3138_3101.asp. 10/7-10/9 Oxygen & Octane Expo Winter Adventure Show Find your sense of adventure at the Big O! Alaska’s premier winter expo. Gear, travel, machines, seminars and more at the Dena’ina Center with 50,000 square feet of all the things Alaskans love to do in winter. Free and open to the public. Time: Friday: 4 p.m. - 8 p.m.; Saturday: 10 a.m. - 6 p.m.; Sunday: 10 a.m. - 5 p.m. Visit: coast@alaskaadventuremedia.com. 10/7-10/8 Kendall Hockey Classic This pre-season fast paced college hockey tournament features some of the finest college teams in the United States. Event held at the Sullivan Arena. Contact: 907-786-1230. 10/8 Scared Scriptless - Live Comedy Improv Performance Alaska’s longest running comedy improv troupe has been bringing the HA-HA to Alaska since the 0-0! Every performance is inspired by audience www.akbizmag.com • Alaska Business Monthly • October 2011

EVENTS CALENDAR suggestions and every performance is different. Youâ&#x20AC;&#x2122;ll never see the same show twice! The Scared Scriptless Guarantee: If you donâ&#x20AC;&#x2122;t laugh out loud at their performance than they guarantee you donâ&#x20AC;&#x2122;t have to come back! Times: 8 p.m. to 9:30 p.m. Held at Snow Goose Theater on Third Avenue. Contact: 907-277-7727. 10/17-10/22

Alaska Federation of Natives â&#x20AC;&#x201C; Strength in Unity The AFN Convention is the largest representative annual gathering in the United States of any Native peoples. Delegates are elected on a population formula of one representative per 25 Native residents in the area and delegate participation rates at the annual convention typically exceed 95 percent â&#x20AC;&#x201C; 4,000â&#x20AC;&#x201C;5,000 delegates attend each year, and the proceedings are broadcast live via television, radio and webcast reaching Alaska Natives and non-Natives alike from Barrow to Ketchikan, from the Aleutian Chain to the Canadian border. During the convention, the entire state of Alaska is blanketed with discussion on current events and issues. International observers are present at most meetings, both exchanging information and learning from the Alaska Native experience. Held at the Deniâ&#x20AC;&#x2122;na Center. Contact: Nelson Angapak: 907-274-3611.

BUSINESS LUNCH

$ 0 72 30 6( 59 (' )5 20 + 6 $7 85 '$< 02 1' $< 7+ 52 8*

6 7 $ 5 7 ( 5 6

& + 2 , & ( 2 ) HVDU 6DODG ,FHEHUJ :HGJH &D UDJXV %LVTXH VSD U $ S R )UHQFK 2QLRQ 6RX

( 1 7 5 e ( 6

& + 2 , & ( 2 ) &KLFNHQ %UHDVW )LOHW 0LJQRQ 5RDVWHG W RU %URLOHG 6DOPRQ )LOOH

JHWDEOHV DQG 6HUYHG ZLWK IUHVK YH RWDWRHV KRUVHUDGLVK PDVKHG S

:HVW WK $YHQXH $QFKRUDJH $. 5 ( 6 ( 5 9$ 7 , 2 1 6

: : : 6 8 / /,9 $ 1 6 7( $ .+286 ( & 20

10/21-10/27 Fiddler on the Roof Celebrate a New â&#x20AC;&#x153;Traditionâ&#x20AC;? with this Broadway Hit â&#x20AC;&#x153;Fiddler on the Roofâ&#x20AC;? the Tony Award winning musical that has captured the hearts of people all over the world with its universal appeal embarks on its North American Tour. No other musical has so magically woven music, dance, poignancy and laughter into such an electrifying and unforgettable experience. Times and dates vary. Contact: 907-263-2787. 10/27 Thursday Night at the Fights See the boxing event; around seven matches with a full bar and concessions will be open. Reserved seats $35/general admission $16 (these prices include the service charge). You can buy tickets at the door. Held at Egan Center. Doors open at 6:30 p.m. and event at 7:30 p.m. Contact: 907-263-2800.

FAIRBANKS 10/15 International Friendship Day Come celebrate all of the local communityâ&#x20AC;&#x2122;s cultural diversity. Stage performances, ethnic food booths and informational tables. 2300 Airport Way, Fairbanks. Contact: 907-474-0928. 10/15 Fairbanks Film Festival Film showing and awards ceremony will take place in the Theater in the Pioneer Park Centennial Center for the Arts at 7 p.m. at Fairbanks Arts Association. Age suitability: all ages ideal. Contact: 907-456-6485.

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

EVENTS CALENDAR 10/29

Creepy Critters Program

Farmhouse Visitor Center @ Creamer’s Field Join us for this annual spooky program! Bring the kids and learn about feared and often misunderstood creatures through educational activities, expert consultation, and crafts. Program is drop-in any time during the hours stated and there is a $3 suggested donation. Times: 12 p.m. Admission fee is $3. Age suitability: Young children ideal. Visit creamersfield.org or Contact: 907-452-5162 for hours and information.

JUNEAU 10/7

Juneau 1st Friday

On the first Friday of each month Juneau galleries, shops and museums feature local artwork and host receptions and special events for featured artists. Contact: www.jahc.org. 10/15

Walk a Mile in Her Shoes

And then some! Join the walk for a cause! 5K and 1-mile events begin at 10 a.m. at the Sandy Beach log shelter on Douglas Island. A fundraiser for the AWARE shelter. Contact: Paul DeSloover at 907-586-6709 or pdesloover@ yahoo.com.

PALMER 10/14-10/15

2011 Mighty Matanuska Brewfest

The Brewfest includes beer sampling, food, local live music, prizes, lots of fun for adults 21+, and bring along your designated drivers, which are highly recommended. This year it is anticipated more than 50 different beers for your sampling. Held in Raven Hall on the fairgrounds, which is located in Palmer at Mile 40 of the Glenn Highway. Free Parking is available behind Raven Hall. Time: 6 p.m. to 10 p.m.

WASILLA 10/12

Bingo

Play live bingo every Wednesday at the Wasilla Area Senior Campus on Century Circle. Age suitability: 18 and up. Time: 1 p.m. to 3 p.m. Contact: 907-376-3104. 10/28

Masquerade and Bra-Auction

The bra-inspired creations are up for auction in this year’s second annual Breast Cancer Awareness Exhibit. Join us for food and fun. All proceeds go to local charities including pink ribbon days. Time: 6 p.m. to 8 p.m. City of Wasilla, Contact: 907-373-9050.

❑

www.akbizmag.com • Alaska Business Monthly • October 2011

RIGHT MOVES ALASKA STOCK IMAGES

COMPILED BY NANCY POUNDS WELLS FARGO

Chris Cruthers has been hired as network administrator and image specialist for Alaska Stock Images. He studied photojournalism and business administration at the University of Alaska Fairbanks. Prior to his new position, Cruthers worked as a sales associate at several retail photo stores.

Mark Sabata has been appointed business relationship manager for Wells Fargo. He serves the bank’s South Anchorage business customers. Sabata has eight years of financial services experience, including two years as a Wells Fargo branch manager in Juneau.

GEONORTH LLC

UKPEAGVIK IÑUPIAT CORP.

Jason Knier was hired as geographic information systems programmer/analyst at GeoNorth LLC. In previous positions, Knier has led teams responsible for worldwide GIS street-mapping applications, and has managed international production teams in Mexico and India.

LOUNSBURY & ASSOCIATES INC.

Kenneth Ayers has earned the Certified Federal Surveyor certification from the U.S. Bureau of Land Management. Ayers is vice president of Lounsbur y & Associates Inc.

Ayers

ALASKA COMMERCIAL FISHING AND AGRICULTURE BANK

Bridget Haley has joined the Alaska Commercial Fishing and Agriculture Bank as account manager. Haley most recently worked as an auditor with Mikunda Cottrell Accounting and Consulting.

UNIVERSITY

ALASKA

Carla Beam has been chosen to serve as vice president for university relations at the University of Alaska. She replaces longtime UA employee Wendy Redman, who has retired. Beam was also chosen to serve as president of the UA Foundation. Beam has more than 30 years of experience in public relations. Earlier this year, she received the University of Alaska Anchorage Meritorious Service Award.

Walter George has been appointed chief financial officer for Ukpeagvik Iñupiat Corp. He has more than 30 years of accounting and financial management experience. George previously served as CFO for UIC Technical Services. Strawderman Tyann Strawderman has been chosen vice president of support services for UIC. Strawderman has more than 10 years of administrative management experience. Most recently, Strawderman served as operations manager for Coffman Engineers Inc. David Klopp was hired as general manager for UIC Construction Services LLC. Klopp has more than 20 years of construction and engineering management experience. He previously served as a project executive with Turner Construction Co. and Turner International in Riyadh, Saudi Arabia.

ALASKA TRUCKING ASSOCIATION

John Browne of Anchorage earned the title of best professional truck driver in Alaska after winning the five-axle competition in the 2011 Alaska Truck Driving Championships. The Alaska Trucking Association sponsored the event. Browne also earned the highest overall score in the competition. Browne drives for Carlile Transportation Systems. He qualified to compete in the American Trucking Associations’ National Truck Driving Championships in Orlando, Fla. Other Alaska competition winners qualified to compete at the national event include: Troy Acton, Weaver Bros. Inc.; Jack Sorensen

and Steve Daugherty, both of Lynden Transport Inc.; Dean Harris, Carlile Transportation and Kirt Hartshorn, FedEx Ground.

MARINE CONSERVATION ALLIANCE

Merrick Burden was appointed executive director of the Marine Conservation Alliance of Juneau and Seattle. He recently served as senior fisheries economist for the Environmental Defense Fund. He is based in Seattle.

DAVIS & MATHIS PC

Tr i g g D a v i s w a s appointed chairman o f A l a s k a Pa c i f i c University board of trustees for a two-year term. Davis founded the Anchorage law firm Davis & Mathis PC. Janet Delfino received the Anchorage Legal Davis Secretaries Association for Legal Professionals’ Award of Excellence 2011. She has worked as a legal secretary for Davis & Mathis since 2005.

AT&T

Shane Scott was hired as a sales representative for AT&T in Anchorage. He serves government, education and medical clients. Scott most recently served as a retail sales consultant for AT&T.

PIONEER NATURAL RESOURCES ALASKA INC.

Casey Sullivan was hired as state public affairs director for Pioneer Natural Resources Alaska Inc. Sullivan most recently worked as government affairs manager for MSI Communications, a marketing and public affairs firm in Anchorage.

STATE GOVERNMENT

Gov. Sean Parnell appointed Jeremy Worrall regional aviation manager for maintenance and operations for the State Department of Transportation and Public

www.akbizmag.com • Alaska Business Monthly • October 2011

RIGHT MOVES F ili i N Facilities Northern t Region. Worrall has worked for six years as regional airport safety and security officer. Ted Mala Jr. was appointed to a public-member seat on the Alaska Board of Pharmacy. Mala is an account executive at NANA Management Services. . Gov. Parnell signed a bill honoring the late Mark Hufford, one of Alaska’s top hand-cycle athletes. The bill named a portion of an Eagle River bike trail after Hufford, 40, who died in January. The trail parallels Eagle River Loop Road near North Parkview Terrace Loop, and Hufford often trained on the route. Lt. Gov. Mead Treadwell received the 2011 Lieutenant Governors Arts Leadership Award from Americans for the Arts.

CARLILE TRANSPORTATION SYSTEMS

Jimmy Parrish was hired as account manager for Carlile Transportation Systems and is based in Fairbanks. He most recently worked in the government sector in San Jose, Calif. Ty Gifford was appointed terminal manager in Kenai. He previously served as Kodiak terminal manager, and his new role will include managing the Kodiak terminal.

CENTRAL PENINSULA HOSPITAL

Davis

Rick Davis was hired as chief operating officer at Central Peninsula Hospital in Soldotna. Davis previously served as chief operating officer at Alaska Regional Hospital in Anchorage, where he had worked since 1996.

BEZEK DURST SEISER

Emily Davenport was hired as manager of marketing and business development for Bezek Durst Seiser. Davenport has experience managing marketing and communications efforts for Alaska Native corporations, nonprofit organizations and construction companies.

SPONSORED DENALI STATE BANK

Aaron Pletnikoff was appointed senior real estate manager for Denali State Bank in Fairbanks. Pletnikoff has more than 13 years of industry experience. He most recently served as construction lending manager for Mt. McKinley Bank, also in Fairbanks.

NORTHERN AIR CARGO

ENTERPRISE ENGINEERING INC.

Tami Hamler joined Enterprise Engineering Inc. as a senior mechanical engineer. Hamler has 15 years of mechanical engineering experience handling commercial projects in Alaska.

RIM DESIGN

ALASKA AIRLINES

Marilyn Romano has begun her role as regional vice president - Alaska for Alaska Airlines. She is based in Anchorage. She most recently served as vice president and publisher of the Fairbanks Daily News-Miner.

BRADLEY REID & ASSOCIATES INC.

Kopecky Lindgren Brooke Kopecky was promoted to account supervisor at Bradley Reid & Associates Inc. advertising and public relations firm. Kopecky previously served as an account executive. Tina Lindgren was promoted to vice president. Lindgren joined Bradley Reid in 2004 as senior strategist. Her career includes work as founding president and chief operating officer of the Alaska Travel Industry Association and executive director of both the Alaska Visitors Association and Alaska Tourism Marketing Council.

AMERICAN HEART ASSOCIATION

Denise Tillotson was hired as Heart Walk director for the American Heart Association in Anchorage. Her career includes sales and marketing experience for the Anchorage Convention & Visitors Bureau, Alaska magazine and Kohl’s.

Thomas

Schmidt

Lierman Benoit Leslie Thomas, Natasha Schmidt, Megan Lierman and Kathleen Benoit were promoted to associates at RIM Design. Thomas joined the firm in 2002 and has 14 years of architectural and interior design experience. Schmidt was hired in 2003. Lierman joined RIM Design in 2002. Benoit has worked for the firm since 2007.

UMIAQ ANNOUNCES NEW PROJECT MANAGER

Michael Wolski has been named civil engineering project manager for UMIAQ. Mr. Wolski has more than 20 years of experience designing, managing and coordinating civil engineering projects throughout the State of Alaska, and his experience includes site development for various federal, state, municipal, and private projects. Mr. Wolski has managed projects from the feasibility study stage through funding acquisition, design, construction, and operation and maintenance. ❑

www.akbizmag.com • Alaska Business Monthly • October 2011

A S S O C I AT I O N S

BY TRACY BARBOUR

Association of Village Council Presidents Western Alaska nonprofit serves 56 tribes BY TRACY BARBOUR

he Association of Village Council Presidents is a diverse social service agency with a distinctive mission. “We provide services and support for tribal governments in our region,” says President Myron Naneng Sr. Serving 56 tribes in western Alaska, AVCP is one of 12 regional Alaska Native nonprofit organizations established by the federal government in 1964. It is operated by a board of directors composed of all 56 village council presidents. Based in Bethel, AVCP provides its members with social services, human development and culturally

relevant programs that rele promote tribal selfpro determination det and self-governance sel and work wo to protect tribal cul culture and traditions. Th organization funcThe tio in partnership tions wi member villages with of the Yukon-Kusko kokwim Delta and C Calista Corp., the regi gional Alaska Native c corporation comp prising the Bethel a Wade Hampton and c census areas. AVCP operates a w wide variety of serv vices funded by fede and State grants, eral a well as other as g grant sources. These services include administration, realty, transportation, education, and employment and training services. Other AVCP departments include tribal justice, a cultural heritage services/museum and a housing improvement program. AVCP’s services are having a positive impact on its membership. For example, HIP is building 13 new homes this year in the communities of Hooper Bay, Chefornak, Nunapitchuk, Chevak, Napaskiak, Kotlik, Eek, Tuluksak, Kipnuk, Pitka’s Point and Napakiak. The program is based on the premise that every American family should have an opportunity to own a decent home with a suitable living environment. In

addition to constructing homes, the organization helps eligible tribal members with repairs to make their homes healthy, safe and sanitary. Funding for AVCP’s housing program comes Myron Naneng from the U.S. Sr.,President Department of The Association Housing and of Village Council Urban DevelopPresidents ment and the Bureau of Indian Affairs. The association is also helping increase the quality of life for its members through training and education programs. For more than a decade, AVCP has operated a flight school that transforms villagers into certified commercial pilots. So far, more than 20 students have successfully completed the program and stepped into new careers. “They are guaranteed a job when they walk out of the building,” Naneng says. AVCP’s Adult Basic Education program is also a valuable asset for the region. Earlier this year, ABE saw 26 students graduate with their GEDs, according to its quarterly newsletter published in June.

AVCP INITIATIVES Since its 1964 inception, AVCP has established a number of enterprises to provide fiscal support for its activities.

www.akbizmag.com • Alaska Business Monthly • October 2011

In 2006, for example, it purchased a hotel in Bethel and is currently working to improve the operations. The major renovations are pretty much done and things are starting to run smoothly, Naneng says. “We were providing money to pay for hotel rooms for staff (to attend workshops and conferences), he says. “We figured that buying a hotel would allow more money to circulate within the organization.” AVCP is also looking into leasing land and buildings. The association is considering leasing its fish plant to local businesses and operating a manufacturing plant that converts compressed cardboard into wood. Naneng says: “That would help alleviate some of the waste that goes to the village dump. We’re looking at owning the operation or leasing it.” As another important undertaking, AVCP is planning to construct a new three-story, $45 million administrative building. The facility, now in the planning stage, will allow AVCP to house all of its programs under one roof as well as lease out office space. “We’re hoping we can move all the operations into that building in the next five years,” Naneng says. The first floor of the administrative building will serve as the new home of the AVCP-operated Yupiit Piciryarait Museum – which is now located in the Yupiit Piciryarait Cultural Center. The museum features exhibits of Yup’ik, Cup’ik and Athabascan people of the Yukon-Kuskokwim Delta in ancient and contemporary times. It currently has about 2,500 pieces of art, photos and artifacts, plus there are additional donated items waiting to be exhibited. “We have so many artifacts that need to be displayed, and we don’t have room for them now,” Naneng says.

relevant policies that have been set by the state and federal governments. The current conservation guidelines have not been working and seem to be placing further restrictions on the people, Naneng says. They’re also limiting the opportunity for subsistence and commercial fishing, which are essential to the livelihood of many villagers. “Commercial fishing is the only income some of the people have in the villages, and we need to keep that in place,” he says. AVCP would also like to see State government work more effectively with the tribal councils within the villages. Instead of State officials saying we can solve your problems for you, they need to recognize there are tribal powers that can help the villages address local issues, Naneng says. At the same time, the State needs to consider that some of the villages are not incorporated and, therefore, receive less funding to cover their needs. Currently, AVCP has nine unincorporated villages in its service area. As a long-term goal, AVCP aspires to create more employment

and economic opportunities in the villages. People need to realize the federal government can’t effectively provide some services from urban centers and regional hubs, Naneng says. They need to have more of a presence in the villages, he adds. For instance, AVCP is working with the Alaska Division of Motor Vehicles to make it possible for villagers to obtain a State identification card locally. The organization would also like for veterans to be able to sign up for services locally instead of having to travel to Anchorage. AVCP is also concerned about the high cost of fuel and is working with the State, Calista Corp. and other regional entities to identify alternative energy. With gas and heating fuel prices nearing $6 a gallon, more villagers are relocating to lower-cost areas in the state. Having moreaffordable fuel could alleviate the situation. “We’re looking at doing energy assessments to find out just how much energy is being used at homes. This is a work in progress,” ❑ Naneng says.

CRITICAL ISSUES Salmon conservation is a vital issue for AVCP’s members. According to Naneng, the burden of conservation is being placed on the individuals who rely on the Yukon and Kuskokwim rivers for their subsistence. Villagers in the region have raised concerns over the situation. As a result, AVCP is planning a salmon summit for next spring to discuss the issue and review www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES

SUCCESS

Superheroes of Success Saving Alaska through highS quality jobs, revenue to the state and robust growth BY DEBBIE CUTLER MANAGING EDITOR

n late August, Federal Reserve Chairman Ben S. Bernanke said the U.S. economy is in recovery and longterm prospects for the nation are strong. Here in Alaska, and here at ABM, we gage our economy on the health of our businesses. Everyone knows the state has been hit – some – by the recession. But most know we have not been hit as hard as our Lower 49 counterparts. Sure real estate markets are flat, some oil and gas jobs are going south to booming North Dakota, and financial institutions have to be creative as spending has softened. But by the looks of our Top 49ers, the top Alaskan-owned and -operated businesses in the state based on 2010 gross revenues, we are doing well. Well indeed. These are Alaska’s Superheroes of Success. They may not leap from tall buildings or help damsels in distress, but they save Alaska by providing high-quality jobs, revenue to the state and in many cases robust growth. They are Superheroes of Industry. Superheroes of Job Growth. And Superheroes of the Alaska Economy. They are truly leaders to be watched and studied, as they are examples to be followed. Their leaders show us how to diversify, how to join the global market, how not to keep all eggs in one basket. Of the Top 49 companies recognized, only 15 saw decreases in revenue, half of those slight – between -1 and -3 percent, and the other half marginal, between -7 and -25 percent. Growth was as high as 168 percent and as low as 1 percent. Take a look at Bethel Native Corp. which increased revenues from $36.1 million to $96.7 million, or Cook Inlet Region Inc. – from $79.9 million to $188.4 million. The Kuskokwim Corp. and Neeser Construction Inc. also saw outstanding increases in revenue. Ranking first on the list, as usual and as expected, is Arctic Slope Regional Corp. with revenues of $2.3 billion – topping the list for 17 consecutive years. Closely

following are NANA Regional Corp. Inc. with gross revenues of $1.6 billion, Bristol Bay Native Corp. with revenues of $1.4 billion and Chenega Corp. with 2010 gross revenues of $1.1 billion. “It was a historic year for the corporation,” said Rex A. Rock, Sr., ASRC president and CEO. “For the first time, we passed the $500 million mark in the total amount that we’ve distributed to our shareholders, just in the form of dividends. We’ve also surpassed the billion-dollar mark when it comes to our shareholder equity. Given the uncertainly in the global economy and the continuing decline in production on the North Slope, it’s something we can be very proud of. I congratulate the other successful businesses on this list as well.” Of the 49 companies recognized, 22 were Native corporations. In fact, of the Top 10 on the list, eight belonged in the Alaska Native organization category. The remaining two were Lynden Inc. and Alaska USA Federal Credit Union. Much of Native business growth is due to controversial 8(a) contracts, but despite the naysayers, these companies bring dollars back to the state through their headquarters operating locally, provide subcontracts to Alaska businesses, hire thousands of Alaskans – Native and nonNative – and support the Alaska economy. They help their shareholders through dividends, projects designed to economically grow their communities, scholarships and educational benefits and so much more. In fact, Native organizations that made the list provide 16,145 Alaska jobs and 58,019 worldwide jobs. This is out of 69,089 jobs total provided worldwide by all companies on the Top 49ers. Native corporations represent 43 percent of this year’s Top 49ers, account for 74 percent of total revenues, 64 percent of Alaska jobs and 84 percent of total jobs. These are Superheroes of Example, and deserve our respect. The nonNative companies that make up the Top 49ers

www.akbizmag.com • Alaska Business Monthly • October 2011

^ *'0 ;17 6*+0- 9#4'*175+0)X 6*+0- #4.+.'T 74 #%1/# #0& 0%*14#)' 9#4'*175'5 2418+&' 6*' 5614#)' #0& +08'0614; %10641. ;17 0''& 61 $'66'4 /#0#)' ;174 5722.; %*#+0T 41/ G &+564+$76+10X 4'8'45' .1)+56+%5 #0& /14'X #4.+.' *#5 6*' 52#%'X ':2'4+'0%' #0& ':2'46+5' 61 *#0&.' ;174 )11&5 10 #0& 1(( 6*' 41#&T

+5+6 999T%#4.+.'T$+< (14 &'6#+.5T

51.76+105 (+0&'4T

\ *#6 5 *19 9' &1 +6 #6 #4.+.'T[ i #44; % 10#.&X

g g g

999T%#4.+.'T$+< . ETLNNTHKLTELIG

2011 ALASKA’S TOP 49ERS: SUPERHEROES should also be respected as these homegrowns teach us lessons of economics. Take Neeser Construction, for example. While some construction companies have hit a slump due to decreased construction projects statewide, this company showed 65 percent growth. The cutoff this year for the Top 49ers was $50 million, down from $55 million last year. However, overall, companies showed growth in revenue. Last year, total combined revenues for the Top 49ers were $14.15 billion. This year it is $15.24 billion, more than a billion-dollar increase. Thirty-four came in with revenues of more than $1 million. “These Top 49er companies show strength and power,” said Jim Martin, president and general manager of Alaska Business Monthly. “They are our Superheroes of Success. I have studied these companies for years and am amazed by their flexibility, growth and wisdom. They are leaders, and we should follow their examples. I wouldn’t mind sitting down with all of the CEOs and presidents, have coffee, and discuss their strategies for success.”

Superheroes of Industry. Superheroes of Growth. Superheroes of Diversity. Superheroes of Success. ❑ These are this year’s Top 49ers. Kudos!

PROUD PAST STRONG FUTURE 62

SUCCESS

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES Arctic Slope Regional Corp. PO Box 129 Barrow, AK 99723 Phone: 907-852-8633 Fax: 907-852-5733 www.asrc.com Top Executive: Rex A. Rock Sr., President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

11,265 . 4,543 . 1972 . . . 1

GROSS REVENUE (Millions $) 2010 . . . . . . . $2,331,681,000 2009 . . . . . . . $1,945,058,000 2008 . . . . . . . $2,297,341,000 2007 . . . . . . . . $986,322,000 2006 . . . . . . . $1,700,000,000 Change from 2009: 20%

N RA K

SUCCESS

Main Business Recent Noteworthy Events Energy Services, Petroleum Refining In 2010, ASRC reached a level of dis& Marketing tributable dividends to its shareholders of more than $500 million. ASRC also Principal Activities put a record number of its shareholders Energy support services, petroleum to work – an increase of 63 percent refining and marketing, engineering since 2003. and construction, government services, resource development, Subsidiaries commercial lending, tourism and Alaska Growth Capital, ASRC communications. ASRC also partici- Construction Holding Co., ASRC pates in various partnerships, joint Energy Services Inc., ASRC Federal ventures and more. Holding Co. LLC, Petro Star Inc., SKW/ Eskimos Inc., Tundra Tours Inc.

1 NANA Regional Corp. Inc. PO Box 49 Kotzebue, AK 99752 Phone: 907-442-3301 Fax: 907-442-4161 www.nana.com/regional news@nana.com Top Executive: Marie Greene, President & CEO

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

13,000 . 5,000 . 1972 . . . 3

GROSS REVENUE (Millions $) 2010 . . . . . . . $1,600,000,000 2009 . . . . . . . $1,260,000,000 2008 . . . . . . . $1,175,500,000 2007 . . . . . . . . $975,000,000 2006 . . . . . . . . $822,000,000 Change from 2009: 27%

Main Business Alaska Native Corporation

Subsidiaries NANA Development Corp., Affigent, Akima Construction Services, Akima Principal Activities Facilities Management, Akima Resource development, land Infrastructure Services, Akima Intra-Data, Akima Logistics Services, Akima management, engineering and construction, information technology Management Services Inc., Akmaaq, Arctic Caribou Inn Ltd., Cazador, DOWL and telecommunications, facilities HKM, Five Rivers Services, Ikun, management and logistics, real Ki, Kisaq, Kotzebue Properties Inc., estate and hotel development. Nakuuruq Solutions, NANA Construction, NANA Lynden Logistics, NANA Oilfield Recent Noteworthy Events NANA Regional Corp. and NovaGold Services Inc, NANA Pacific, NANA Services, NANA WorleyParsons, NMS, Resources have partnered on mineral exploration and development Paa River Construction, Pegasus Aircraft Maintenance Services, Piksik, Portico opportunities at the Arctic Deposit and Bornite. NANA is the landowner Services, Qivliq Commercial Group, Qivliq, SAVA, Sivuniq Inc. at Bornite.

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES Bristol Bay Native Corp. 111 W. 16th Ave., Ste. 400 Anchorage, AK 99501 Phone: 907-278-3602 Fax: 907-276-3924 www.bbnc.net Top Executive: Jason Metrokin, President & CEO

Alaska Employees . . . . . . 585 Year Established . . . . . . 1971 49er Rank Last Year . . . . . . 2 GROSS REVENUE (Millions $) 2010 . . . . . . . $1,382,396,000 2009 . . . . . . . $1,391,571,000 2008 . . . . . . . $1,294,854,000 2007 . . . . . . . . $993,676,000 2006 . . . . . . . . $762,410,000 Change from 2009: -1%

N RA K

Main Business Native Organization

Chenega Corp. 3000 C St., Ste. 301 Anchorage, AK 99503-3975 Phone: 907-277-5706 Fax: 907-277-5700 www.chenega.com info@chenega.com Top Executive: Charles Totemoff, CEO/President

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

5,350 . 305 1974 . . 5

GROSS REVENUE (Millions $) 2010 . . . . . . . $1,100,000,000 2009 . . . . . . . $1,077,000,000 2008 . . . . . . . . $894,000,000 2007 . . . . . . . . $768,000,000 2006 . . . . . . . . $782,000,000 Change from 2009: 2% Main Business Government Contracting

SUCCESS

Principal Activities Diversified holding company; design services, corporate services, environmental/engineering remedial design services, oilfield services and construction management, environmental/engineering and technical services, IT and more. Subsidiaries Badger Technical Services, Bristol Bay Corporate Services, Bristol Construction Services, Bristol Design Build Services, Bristol Engineering Services Corp., Bristol Environmental Remediation Services, Bristol Fuel Systems,

Principal Activities Professional services contracting for the federal government, including information technology, security services, logistics, training, Intel & military operations, telecommunication, environmental services and health care solutions. Light manufacturing and hotel management. Recent Noteworthy Events Invested nearly $5 million in economic, social, cultural and educational benefits and programs for shareholders, their spouses and descendants in FY 2010.

www.akbizmag.com • Alaska Business Monthly • October 2011

Bristol General Contractors, Bristol Industries, Bristol Munitions Services, Bristol Resources, Business Resource Solutions, CCI Group, CCI, Inc., CCI Industrial Services, CCI Solutions, Eagle Applied Sciences, Glacier Technical Solutions, Glacier Technologies, MedPro Technologies, Kakivik Asset Management, KAM Resources Group, PetroCard, Inc., SES Construction and Fuel Services, SES Design/Build, SpecPro Environmental Services, SpecPro, Inc., SpecPro Technical Services, STS Systems Integration, TekPro Services, Vista International Operations, Vista Technical Services

Subsidiaries American Hospital Services Group LLC , Chaaniqmuit Services LTD., Chenega Advanced Solutions & Engineering LLC, Chenega Aerospace LLC , Chenega Blackwater Solutions LLC, Chenega Commercial Holdings LLC, Chenega Federal Systems LLC, Chenega Global Services LLC, Chenega Government Consulting LLC, Chenega Integrated Systems LLC, Chenega Logistics LLC, Chenega Management LLC, Chenega Operations Services LLC, Chenega Security & Protection Services LLC, CTSC LLC, Nangwik Services LLC, Time Solutions LLC

2011 ALASKA’S TOP 49ERS: SUPERHEROES Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

Chugach Alaska Corp. 3800 Centerpoint Dr., Ste. 601 Anchorage, AK 99503-4396 Phone: 907-563-8866 Fax: 907-563-8402 www.chugach-ak.com bwelty@chugach-ak.com Top Executive: Sheri Buretta, Chairman & Acting CEO

. . . .

5,668 . 722 1971 . . 4

Recent Noteworthy Events Nuchek Spirit Camp is a cultural education camp held every summer on Hinchinbrook Island. Chugach educators, elders and children assemble to learn traditional subsistence skills and the language.

Change from 2009: -15%

Main Business Government Service Contracting

Afognak Native Corp. 215 Mission Rd., Ste. 212 Kodiak, AK 99503 Phone: 907-486-6014 Fax: 907-486-2514 www.afognak.com info@alutiiq.com Top Executive: Richard Hobbs, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

5,923 . 175 1977 . . 6

Main Business Government Contracting

GROSS REVENUE (Millions $) 2010 . . . . . . . . $783,000,000 2009 . . . . . . . . $766,000,000 2008 . . . . . . . . $729,800,000 2007 . . . . . . . . $515,700,000 2006 . . . . . . . . $537,900,000

Alaska State Chamber of Commerce extends a warm welcome to our Top 49er members Alaska USA Federal Credit Union Afognak Native Corporation Bering Straits Native Corporation Bristol Bay Native Corporation Calista Corporation Carlile Transportation Systems Chugach Alaska Corporation Chugach Electric Association Inc. Construction Machinery Industrial Cook Inlet Region Inc. Doyon, Limited Era Alaska First National Bank Alaska Golden Valley Electric Association

Koniag Inc. Lynden, Inc. Matanuska Electric Association MTA, Inc. NANA Regional Corporation Inc. PenAir Sealaska Corporation Seekins Ford Lincoln Inc. The Wilson Agency LLC Watterson Construction Udelhoven Oilfield System Service Ukpeagvik Inupiat Corporation Usibelli Coal Mine US Travel

Membership in the Alaska State Chamber of Commerce provides invaluable opportunities to network and shape rules and regulations that affect the way you do business. For more information, call 907-278-2733 or visit

www.alaskachamber.com 68

Subsidiaries Chugach Alaska Services Inc., Chugach Federal Solutions Inc., Chugach Government Services Inc., Chugach Industries Inc., Chugach Information Technology Inc., Chugach McKinley Inc., Chugach Management Services Inc., Chugach Support Services Inc., Chugach World Services Inc., Defense Base Services Inc., Falcon International Inc., Wolf Creek Fabrication Services Inc., Chugach Education Services Inc.

Subsidiaries Afognak Arctic Development LLC, Afognak C Street LLC, Afognak Principal Activities Leasing LLC, Alutiiq LLC, Alutiiq Government contracting: con3SG LLC, Alutiiq Business Services struction, logistics support services, LLC, Alutiiq Diversified Services LLC, security/law enforcement, operaAlutiiq Education & Training LLC, tions/maintenance services, youth Alutiiq Global Solutions LLC, Alutiiq training services, IT/technical International Solutions LLC, Alutiiq support services, oilfield services Management Services LLC, Alutiiq and leasing. Manufacturing Contractors LLC, Alutiiq Pacific LLC, Alutiiq Professional Recent Noteworthy Events Services LLC, Alutiiq Security & In 2010, Afognak Native Corp. Technology LLC, Alutiiq-Mele LLC, awarded $307,894 in scholarships to Community Power Corp. 72 applicants.

Change from 2009: 2%

N RA K

SUCCESS

Principal Activities In addition to our core businesses of base operations and facilities maintenance, Chugach subsidiaries provide services in the areas of: general construction and management, civil engineering, oil and gas, education, oil spill response, IT, manufacturing, telecommunication, environmental.

GROSS REVENUE (Millions $) 2010 . . . . . . . . $936,975,000 2009 . . . . . . . $1,105,265,000 2008 . . . . . . . . $951,945,000 2007 . . . . . . . . $940,509,399 2006 . . . . . . . . $890,000,000

N RA K

www.akbizmag.com • Alaska Business Monthly • October 2011

a healthcare “ Managing enterprise as diverse as ours in bush Alaska can be quite a challenge. Thanks to our team at Parker, Smith & Feek who provide exceptional expertise supportive of our unique business model.

“

Coryee Hamons, Director of Risk Management Yukon-Kuskokwim Health Corporation Bethel, Alaska

Parker, P Pa ark rke err, Smith Smit ith & Feek Fe F ee ek k combines co om mbi biin nes a collaborative ne coll co lla ab borat orrat o ativ ive ive tte team eam am ap a approach ppro pp roac ach to to client ccli lie lien li en nt service sse erv rvic ice with witth wi h 74 74 yye years ear ars of of experience exp xperi erie er ien ncce to to create crre ea atte lasting lassttin la ing value vva allu ue for businesses fo for busi bus bu sin ine ness sses es like lik ike Yukon-Kuskokwim Yu Y uko kon-Ku Kussk kokwi ok kwi wim He H Health ea allth th Co Co Corporation. orp rp pora orra o attiio on. That’s Th T ha h at’s why wh w hy over ovver o ver er 96% 96% 6% of of ou o our ur ccllie clients ient nts retain retta re ain in our our ur firm firm rm year yea ear ar after afte afte af ter year. yye ear ar.

Different by choice. Unique by tr Un tradition. * / 4 6 3 " / $ & t 4 6 3 & 5 : t & . 1 - 0 : & & # & / & ' * 5 4 www.psfinc.com 2233 112th Ave. NE, Bellevue, WA 98004 425.709.3600 | 800.457.0220 4000 Old Seward Hwy., Suite 200, Anchorage, AK 99503 907.562.2225

2011 ALASKA’S TOP 49ERS: SUPERHEROES Lynden Inc. 6641 S. Airpark Place Anchorage, AK 99502 Phone: 907-245-1544 Fax: 907-245-1744 www.lynden.com information@lynden.com Top Executive: Jim Jansen, CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

2,198 . 700 1954 . . 7

GROSS REVENUE (Millions $) 2010 . . . . . . . . $720,000,000 2009 . . . . . . . . $680,000,000 2008 . . . . . . . . $780,000,000 2007 . . . . . . . . $740,000,000 2006 . . . . . . . . $670,000,000 Change from 2009: 6%

N RA K

SUCCESS

Main Business Multi-Modal Transportation & Logistics.

Recent Noteworthy Events Conducting business online with Lynden’s EZ Commerce Center. Now customers can request pickups, generate documents, trace shipments, view delivery receipts, download activity reports and receive PDF invoices.

Principal Activities Lynden capabilities include truckload, less-than-truckload, scheduled and charter barges, scheduled and chartered air freighters, domestic and international forwarding, remote site construction, bulk commodities hauling, hovercraft and multi-modal logistics.

7 Doyon, Limited 1 Doyon Place, Ste. 300 Fairbanks, AK 99701-2941 Phone: 907-459-2000 Fax: 907-459-2060 www.doyon.com info@doyon.com Top Executive: Aaron Schutt, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

2,676 1,618 1972 . . 10

GROSS REVENUE (Millions $) 2010 . . . . . . . . $458,600,000 2009 . . . . . . . . $416,400,000 2008 . . . . . . . . $295,560,000 2007 . . . . . . . . $272,370,000 2006 . . . . . . . . $222,300,000 Change from 2009: 10%

N RA K

Main Business For-Profit Regional Native Corporation Principal Activities Oilfield services, including drilling and pipeline infrastructure construction, government services, security, utility management, natural resource development, facility and food services, remote site support, engineering, construction and tourism. Recent Noteworthy Events 2010 marked Doyon’s 26th consecutive year of profitability.

40 Years... Thanks to our customers and employees, we’ve been privileged to serve Alaska’s oil industry for over 40 years. Our goal is to build a company that provides a service or builds a project to the complete satisfaction of its customers. We shall strive to be number one in reputation with our customers and our employees. We must perform safely. We must provide quality performance. We must make a proﬁt. We shall share our successes and proﬁts with our employees. Work can be taken away from us in many ways, but our reputation is ours urs to lose. Our reputation is the key that will open doors to new business in the future. e.

www.akbizmag.com • Alaska Business Monthly • October 2011

Subsidiaries Alaska Marine Lines, Alaska West Express, Bering Marine, Lynden Air Cargo, Lynden International, Lynden Logistics, Knik Construction Co. Inc., Lynden Transport Inc.

Subsidiaries Cherokee General Corp., Doyon Associated LLC, Doyon Drilling Inc., Doyon Emerald, Doyon Government Contracting Inc., Doyon Government Group, Doyon Industrial Group LLC, Doyon Logistics Services LLC, Doyon Natural Resources Development Corp., Doyon Oil field Services Inc., Doyon Project Services LLC, Doyon Properties Inc., Doyon Security Services LLC, Doyon Transitional Inc., Doyon Universal Services LLC, Doyon Utilities LLC, Kantishna Roadhouse Inc., The River Cabins Inc. dba Denali River Cabins

2011 ALASKA’S TOP 49ERS: SUPERHEROES The Eyak Corp. 360 W. Benson Blvd., Ste. 210 Anchorage, AK 99503 Phone: 907-334-6971 Fax: 907-334-6973 www.eyakcorp.com info@eyakcorp.com Top Executive: Rod Worl, CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 310 . . 71 1973 . . 12

GROSS REVENUE (Millions $) 2010 . . . . . . . . $436,300,000 2009 . . . . . . . . $422,900,000 2008 . . . . . . . . $281,700,000 2007 . . . . . . . . $231,000,000 2006 . . . . . . . . $95,730,000

SUCCESS

Main Business Alaska Native Corporation

Recent Noteworthy Events Ramped up efforts in the energy sector.

Principal Activities Investment management, energy, real estate, construction, government contracting and staffing.

Subsidiaries Eyak Technology LLC, Eyak Development Corp., Eyak Services LLC, Eyak Resources LLC, Cordova Central LLC, NorthTide Group LLC, Orca International Management LLC.

Main Business Financial Services

Recent Noteworthy Events Donated to more than 200 community/ service organizations statewide. Helps raise money for the Alaska USA Foundation, providing funds for services for children, veterans, active duty military/families.

Change from 2009: 3%

N RA K

9 Alaska USA Federal Credit Union PO Box 196613 Anchorage, AK 99519 Phone: 907-563-4567 Fax: 907-929-6593 www.alaskausa.org Top Executive: William Eckhardt, President

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

1,615 1,337 1948 . . 11

GROSS REVENUE (Millions $) 2010 . . . . . . . . $302,000,000 2009 . . . . . . . . $312,000,000 2008 . . . . . . . . $311,600,000 2007 . . . . . . . . $270,300,000 2006 . . . . . . . . $201,900,000

Principal Activities Financial services for consumers and businesses, including deposit, loan, investment, mortgage, insurance and trust services.

Change from 2009: -3%

www.akbizmag.com • Alaska Business Monthly • October 2011

Subsidiaries Alaska USA Insurance Brokers, Alaska USA Mortgage Co., Alaska USA Title Agency, Alaska USA Trust Co.

2011 ALASKA’S TOP 49ERS: SUPERHEROES Ukpeagvik Inupiat Corp. PO Box 890 Barrow, AK 99723 Phone: 907-852-4460 Fax: 907-852-4459 www.ukpik.com info@ukpik.com Top Executive: Anthony E. Edwardsen, President & CEO

. . . .

1,900 . 600 1973 . . 9

GROSS REVENUE (Millions $) 2010 . . . . . . . . $270,612,000 2009 . . . . . . . . $292,317,000 2008 . . . . . . . . $334,300,000 2007 . . . . . . . . $291,000,000 2006 . . . . . . . . $258,800,000 Change from 2009: -7%

N RA K

Main Business Native Village Corporation

Chugach Electric Association Inc.

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

5601 Electron Dr. Anchorage, AK 99518 Phone: 907-563-7494 Fax: 907-562-0027 www.chugachelectric.com info@chugachelectric.com Top Executive: Bradley Evans, CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 320 . 320 1948 . . 12

GROSS REVENUE (Millions $) 2010 . . . . . . . . $258,300,000 2009 . . . . . . . . $290,200,000 2008 . . . . . . . . $289,500,000 2007 . . . . . . . . $259,000,000 2006 . . . . . . . . $267,500,000

SUCCESS

Principal Activities Architecture, engineering, surveying, construction, regulatory planning, marine transportation, information technology, maintenance and logistics, science support, car rental, and auto and body repair. Recent Noteworthy Events Record-breaking shareholder dividend of $15 per share, net income increased 152 percent, UIC Foundation distributed $500,000plus in scholarships in three years. Sold subsidiaries Umialik Insurance Co. and Rain Proof Roofing.

Subsidiaries Bowhead Information Technology Services, Bowhead Innovative Products & Solutions, Bowhead Logistics Solutions, Bowhead Manufacturing Co., Bowhead Professional Solutions, Bowhead Science & Technology, Bowhead Support Group, Bowhead Systems Management, Bowhead Technical and Professional Services, Bowhead Transport Co., C-Port Marine, Pueo, Rockford Corp., Siku Construction, UIC Construction , UIC Developments, UIC Foundation Inc., UIC Real Estate Management, UIC Science, Ukpik, UMIAQ

Main Business Railbelt Electric Service: Retail & Wholesale

Recent Noteworthy Events Annual membership meeting and election.

Principal Activities Through superior service, safely provide reliable and competitively priced energy.

Change from 2009: -11%

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES Ahtna Inc. PO Box 649 Glennallen, AK 99588 Phone: 907-822-3476 Fax: 907-822-3495 www.ahtna-inc.com itimalealiifano@ahtna.net Top Executive: Ken Johns, President & CEO

13 301 Calista Ct., Ste. A Anchorage, AK 99518-3028 Phone: 907-279-5516 Fax: 907-272-5060 www.calistacorp.com calista@calistacorp.com Top Executive: Andrew Guy, President/CEO

. . . .

2,188 . 464 1972 . . 14

GROSS REVENUE (Millions $) 2010 . . . . . . . . $243,000,000 2009 . . . . . . . . $231,000,000 2008 . . . . . . . . $196,141,378 2007 . . . . . . . . $99,848,357 2006 . . . . . . . . $110,050,000

Principal Activities Pipeline maintenance, government service contracts, civil and vertical construction, environmental remediation, fuels reduction, demolition, operations and maintenance, information technology services, records management, facilities support, and more.

Recent Noteworthy Events Ahtna established a Permanent Fund to generate dividends for future obligations.

Main Business Native Organization

Calista Corp.

. . . .

SUCCESS

Change from 2009: 5%

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

1,300 . 271 1972 . . 16

GROSS REVENUE (Millions $) 2010 . . . . . . . . $234,865,919 2009 . . . . . . . . $203,023,390 2008 . . . . . . . . $224,090,000 2007 . . . . . . . . $138,440,000 2006 . . . . . . . . $94,450,000 Change from 2009: 16%

Main Business Alaska Native Corporation

Principal Activities Government contracting, remote and camp services, resource development, construction and engineering, real estate, advertising and media, heavy equipment sales, rental and service.

www.akbizmag.com • Alaska Business Monthly • October 2011

Subsidiaries Ahtna Development Corp., Ahtna Construction & Primary Product, Ahtna Contractors LLC, Ahtna Design Build Inc., Ahtna Engineering Services LLC, Ahtna Enterprises Corp., Ahtna Environmental Inc., Ahtna Facility Services Inc., Ahtna Government Services Corp., Ahtna Logistics Inc., Ahtna Professional Services Inc., Ahtna Support & Training Services LLC, Ahtna Technical Services Inc., Ahtna Technologies Inc., Koht’aene Enterprises Co. LLC,

Subsidiaries Alaska Telecom Inc., Brice Inc., Calista Heritage Foundation, Calista Real Estate, Chiulista Services Inc., Solstice Advertising LLC, Tunista Construction LLC, Tunista Pacific Rim LLC, Tunista Services LLC, Tunista Inc., Y-Tech Services Inc., Yukon Equipment Inc., Yulista Aviation Inc., Yulista Holding LLC, Yulista Management Services Inc.

2011 ALASKA’S TOP 49ERS: SUPERHEROES Sealaska Corp. One Sealaska Plaza, Ste. 400 Juneau, AK 99801-1276 Phone: 907-586-1512 Fax: 907-463-3897 www.sealaska.com webmaster@sealaska.com Top Executive: Chris McNeil, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

1,816 . 580 1972 . . 17

GROSS REVENUE (Millions $) 2010 . . . . . . . . $223,823,000 2009 . . . . . . . . $196,017,000 2008 . . . . . . . . $125,774,000 2007 . . . . . . . . $193,970,000 2006 . . . . . . . . $178,600,000

N RA K

Change from 2009: 14%

Main Business Natural resources, Manufacturing, Services, Finance

Golden Valley Electric Association

N RA K

PO Box 71249 Fairbanks, AK 99707-1249 Phone: 907-452-1151 Fax: 907-458-6368 www.gvea.com info@gvea.com Top Executive: Brian Newton, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 258 . 258 1946 . . 18

GROSS REVENUE (Millions $) 2010 . . . . . . . . $220,020,165 2009 . . . . . . . . $197,421,331 2008 . . . . . . . . $214,000,000 2007 . . . . . . . . $196,000,000 2006 . . . . . . . . $165,000,000 Change from 2009: 11%

SUCCESS

Principal Activities Forest products and marketing, silviculture, land management, financial investments, plastics injection molding/manufacturing, information technology, construction aggregates, environmental remediation, consulting, construction, security services, cultural preservation, oyster mariculture. Recent Noteworthy Events Celebration 2010; Sealaska Environmental Services subsidiary of the year; MBS “Top 500 Diversity Owned Businesses; Security Alliance 2010 Small Business Prime Contractor of the Year.

Main Business Generate & Distribute Electricity.

Subsidiaries Alaska Coastal Aggregates, Haa Aani LLC, Kingston Environmental, Managed Business Solutions, Nypro Kanaak Alabama, Nypro Kanaak Guadalajara, Nypro Kanaak Iowa, Sealaska Constructors, Sealaska Environmental Services, Sealaska Global Logistics, Sealaska Timber Corp., Security Alliance, Synergy Systems

Recent Noteworthy Events GVEA moved forward with plans to construct the Eva Creek Wind Project near Healy. This stands to be the largest wind project along the Railbelt. Anticipated completion date is September 2012.

Principal Activities A member-owned electric cooperative serving 90,000 Interior residents from Cantwell north along the Parks Highway and from Fairbanks south to Alyeska Pump Station 9 along the Richardson Highway.

OUR HISTORY Aerospace & Technology Services Yulista Management Services, Inc. Y-Tech Services, Inc. Yulista Aviation, Inc.

Construction & Engineering Brice Companies

Telecommunications Alaska Telecom, Inc.

Hospitality & Support Services Chiulista Services, Inc.

Marketing & Communications Solstice Advertising

Tunista Services, LLC

Real Estate

Tunista, Inc.

Calista Real Estate

Tunista Paciﬁc Rim Tunista Construction, LLC

Nonprofit

Yukon Equipment, Inc.

Calista Heritage Foundation

YOUR FUTURE WE’VE BUILT A LOT IN 40 YEARS AND WE’RE STILL BUILDING.

Our family of companies has both the resources and the experience to provide the services you need. We deliver excellence in the projects we build, the services we offer and the jobs we provide.

Calista Corporation 301 Calista Court, Ste. A, Anchorage, AK 99518 + t: (907) 279-5516 + f: (907) 272-5060 + calista@calistacorp.com

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES The Wilson Agency LLC 3000 A St., Ste. 400 Anchorage, AK 99503 Phone: 907-277-1616 Fax: 907-274-7011 www.thewilsonagency.com info@thewilsonagency.com Top Executive: Lon Wilson, President

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. . 19 . . 19 1964 . . 15

SUCCESS

Main Business Employee Benefits, Group Insurance, Wealth Management

Principal Activities Strategic benefit consultants for employee benefits and financial services.

Principal Activities Government service contracts, construction, property management, mining support services, facilities and administration support, construction and electrical subcontractor, information technology, communications, aerospace support services, supply and logistics support.

Subsidiaries Ayak LLC, Bering Straits Aerospace Services LLC, Bering Straits Aerospace Services LLC, Bering Straits Aki LLC, Bering Straits Aki LLC, Bering Straits Information Technologies LLC, Bering Straits Information Technologies LLC, Bering Straits Logistics Services LLC, Bering Straits Logistics Services LLC, Bering Straits Technical Services LLC, Eagle Electric LLC, Eagle Electric LLC, Eagle Eye Electric LLC, Global Management Services LLC, Global Support Services LLC, Inuit Services Inc., Iyabak LLC, Sound Quarry Inc.

GROSS REVENUE (Millions $) 2010 . . . . . . . . $205,440,336 2009 . . . . . . . . $205,826,042 2008 . . . . . . . . $159,900,000 2007 . . . . . . . . $147,820,000 2006 . . . . . . . . $144,300,000 Change from 2009: <-1%

N RA K

17 Bering Straits Native Corp. 4600 Debarr Rd. Ste., 200 Anchorage, AK 99508 Phone: 907-563-3788 Fax: 907-563-2742 www.beringstraits.com info@beringstraits.com Top Executive: Gail Schubert, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

1,053 . 461 1972 . . 21

GROSS REVENUE (Millions $) 2010 . . . . . . . . $190,336,771 2009 . . . . . . . . $162,300,000 2008 . . . . . . . . $113,335,070 2007 . . . . . . . . $76,180,000 Change from 2009: 17%

N RA K

Main Business Alaska Native Corporation

Recent Noteworthy Events BSNC subsidiary Inuit Services is partnering with Nesser Construction to build the Nome Hospital.

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES Cook Inlet Region Inc. P.O. Box 93330 Anchorage, AK 99509-3330 Phone: 907-274-8638 Fax: 907-263-5183 www.ciri.com info@ciri.com Top Executive: Margaret Brown, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

Change from 2009: 136%

Main Business Alaska Native Regional Corporation.

2501 Blueberry Rd., Ste.100 Anchorage, AK 99503 Phone: 907-276-1058 Fax: 907-276-8533 www.neeserinc.com jerry_neeser@neeserinc.com Top Executive: Jerry Neeser, President

. . 81 . . 81 1972 . . 43

GROSS REVENUE (Millions $) 2010 . . . . . . . . $188,357,000 2009 . . . . . . . . $79,893,000 2008 . . . . . . . . $11,119,000 2007 . . . . . . . . . $9,700,000 2006 . . . . . . . . $208,000,000

N RA K

Neeser Construction Inc.

. . . .

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 325 . 320 1975 . . 33

SUCCESS

Principal Activities CIRI’s diversified business portfolio includes energy and resource development, oilfield and construction services, real estate development and management, environmental remediation, tourism and hospitality, telecommunications and other investments.

Recent Noteworthy Events CIRI continues to invest in and develop diverse real estate, energy, government contracting and other projects in Alaska and Outside.

Subsidiaries Alaska Interstate Construction LLC, ANC Research & Development LLC , CIRI Alaska Tourism Corp. , CIRI Land Development Co., Fire Island Wind LLC, North Wind Inc. , North Wind Services, Pacific Tower Properties Inc., Stone Horn Ridge LLC

Main Business General Contracting Firm

GROSS REVENUE (Millions $) 2010 . . . . . . . . $182,000,000 2009 . . . . . . . . $110,400,000 2008 . . . . . . . . $105,200,000 2007 . . . . . . . . $130,000,000 2006 . . . . . . . . $148,000,000

Principal Activities General contracting, commercial, industrial, medical, multi-family, retail and correctional. Design-build fast-track turnkey projects. Hard bid, negotiated and construction management for fee contracting methods utilized.

Change from 2009: 65%

N RA K

ANCHORAGE CHRYSLER DODGE JEEP

Rod Udd, Owner Anchorage Chrysler Dodge Jeep

RAM HEAVY DUTY

CALL

2501 & 2601 E. 5th Ave.

CALL TOLL FREE

276-1331

www.anchoragechryslercenter.com

800-770-1330

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKAâ&#x20AC;&#x2122;S TOP 49ERS: SUPERHEROES USTravel 999 E. Tudor Rd., Ste. 200 Anchorage, AK 99503 Phone: 907-561-2434 Fax: 907-786-0180 www.ustravel.us info@ustravel.us Top Executive: Mark Eliason, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 175 . . 82 1978 . . 20

GROSS REVENUE (Millions $) 2010 . . . . . . . . $174,300,000 2009 . . . . . . . . $166,000,000 2008 . . . . . . . . $192,000,000 2007 . . . . . . . . $191,000,000 2006 . . . . . . . . $165,000,000

SUCCESS

Main Business Travel Management Company Principal Activities Full-service travel management for corporate and leisure customers. USTravel is the largest independent travel management company in the Pacific Northwest.

Recent Noteworthy Events Consolidated several Puget Sound area locations into new Regional Headquarters. Subsidiaries Air Fulfillment Services, Alaska Exposure, Doug Fox Travel, Explore Tours, Visions

Change from 2009: 5%

N RA K

21 Aleut Corp. 4000 Old Seward Hwy., Ste. 300 Anchorage, AK 99503 Phone: 907-561-4300 Fax: 907-563-4328 www.aleutcorp.com info@aleutcorp.com Top Executive: David Gillespie, CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 590 . . 56 1972 . . 24

GROSS REVENUE (Millions $) 2010 . . . . . . . . $159,416,000 2009 . . . . . . . . $146,058,000 2008 . . . . . . . . $116,051,000 2007 . . . . . . . . $96,473,000 2006 . . . . . . . . $120,000,000

Main Business Alaska Native Corporation Principal Activities Government contracting, oil and fuel storage, commercial and residential real estate, gravel operations, oil well testing and instrumentation. Recent Noteworthy Events

Subsidiaries Aleut Enterprises LLC, Aleut Management Services, Aleut Real Estate LLC, Alaska Instrument LLC, C&H Testing LLC

Change from 2009: 9%

N RA K

22 GM6* ;'#4 1( '/219'4+0) ;170) 2'12.' 61 190 6*'+4 '%101/+% 57%%'55

Celebrate Junior Achievementâ&#x20AC;&#x2122;s Business Hall of Fame Laureates 'HQDÂśLQD &HQWHU -DQXDU\ S P UHFHSWLRQ GLQQHU FHUHPRQ\ S P

+RQRUHHV :LOO $QGHUVRQ .RQLDJ ,QF %RE 'LQGLQJHU $ODVND 7UDYHO $GYHQWXUHV 7KH *UHHQ )DPLO\ 'DYLG *UHHQ 0DVWHU )XUULHU -DPHV 8GHOKRYHQ 8GHOKRYHQ 2LOÂżHOG 6\VWHP 6HUYLFHV

&DOO )ORUD 7HR DW WR UHVHUYH D WDEOH DW WKLV SUHVWLJLRXV HYHQW RU JR WR KWWS DODVND MD RUJ IRU PRUH LQIRUPDWLRQ

6SRQVRUVKLS RSSRUWXQLWLHV IRU WKH JDOD LQGXFWLRQ FHUHPRQ\ RQ -DQ DW WKH 'HQDÂˇLQD &HQWHU 3ODWLQXP 6SRQVRUVKLS Â˛ *ROG 6SRQVRUVKLS Â˛ 6LOYHU 6SRQVRUVKLS Â˛ 7DEOH Â˛

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES First National Bank Alaska PO Box 100720 Anchorage, AK 99510-0720 Phone: 907-777-4362 Fax: 907-777-3406 www.fnbalaska.com customer.service@fnbalaska.com Top Executive: D.H. Cuddy, President & Chairman

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 700 . 700 1922 . . 22

GROSS REVENUE (Millions $) 2010 . . . . . . . . $150,934,000 2009 . . . . . . . . $156,210,000 2008 . . . . . . . . $170,670,000 2007 . . . . . . . . $188,800,000 2006 . . . . . . . . $180,460,000

SUCCESS

Main Business Full-Service Commercial Bank Principal Activities Services include: receiving and lending of money, trust banking, escrow and contract collection, BankCard services and safe deposit box facilities.

Recent Noteworthy Events First National is recognized by the American Bankers Association as one of only seven banks in the nation for its efforts in reaching out to the underserved.

Change from 2009: -3%

N RA K

23 Koniag Inc. 194 Alimaq Dr. Kodiak, AK 99615 Phone: 907-486-2530 Fax: 907-486-3325 www.koniag.com Top Executive: William Anderson Jr., President & CEO

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 645 . . 79 1972 . . 31

GROSS REVENUE (Millions $) 2010 . . . . . . . . $149,500,000 2009 . . . . . . . . $115,569,000 2008 . . . . . . . . $101,266,000 2007 . . . . . . . . $90,769,000 2006 . . . . . . . . $128,150,000 Change from 2009: 29%

Main Business Alaska Regional Native Corporation

Principal Activities Government contracting, management of construction projects, fluid reprocessing, control systems and alloy distribution, telecom and security contracting, information sciences, database engineering, telecom system software, digitized electric and hydraulic schematics, technical writing and logistics services.

www.akbizmag.com • Alaska Business Monthly • October 2011

Subsidiaries Angayak Construction Enterprise, Angeles Composite Technologies Inc, Clarus Environmental Services, Clarus Fluid Intelligence, Clarus Technologies LLC, Ditigized Schematic Solutions LLC, Dowland Bach, Frontier Systems Integrator LLC, Karluk Wilderness Adventures, Koniag Development Corp., Koniag Services Inc., Koniag Technical Services, Koniag Technology Solutions, LUGO-KDC, Professional Computing Resources, Inc., Washington Management Group, XMCO Inc.

2011 ALASKA’S TOP 49ERS: SUPERHEROES The Kuskokwim Corp. 4300 B St. Anchorage, AK 99503 Phone: 907-243-2944 Fax: 907-243-2984 www.kuskokwim.com Top Executive: Maver Carey, CEO

Worldwide Employees . . . . 144 Alaska Employees . . . . . . . 40 Year Established . . . . . . 1977 GROSS REVENUE (Millions $) 2010 . . . . . . . . $149,000,000 2009 . . . . . . . . $86,700,000 2008 . . . . . . . . $30,700,000

SUCCESS

Main Business Alaska Native Corporation

Recent Noteworthy Events Surpassed $100 million in revenues.

Principal Activities Government services, construction, aerospace and real estate.

Subsidiaries Kuskokwim Properties LLC, Suulutaaq, TKCA, TKCD

Main Business Government Contracting, Real Estate Development, Tourism

Subsidiaries Goldbelt Falcon LLC, Goldbelt Hawk LLC, Nisga’a Data Systems LLC, Godlbelt Raven LLC, CP Leasing Inc., Lifesource Biomedical LLC, Goldbelt Orca LLC, Goldbelt Eagle LLC, Facility Support Services LLC, Goldbelt Security Services LLC, Goldbelt Cedar LLC, Peregrine Technical Solutions LLC, Goldbelt Glacier Health Services LLC

Change from 2009: 72%

N RA K

25 Goldbelt Inc. 3075 Vintage Blvd., Ste. 200 Juneau, AK 99801 Phone: 907-790-4990 Fax: 907-790-4999 www.goldbelt.com goldbelt@goldbelt.com Top Executive: Elliott Wimberly, President & CEO

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

1,000 . 187 1974 . . 35

GROSS REVENUE (Millions $) 2010 . . . . . . . . $139,350,000 2009 . . . . . . . . $107,748,370 2008 . . . . . . . . $106,000,000 2007 . . . . . . . . $85,000,000 2006 . . . . . . . . $76,000,000

Principal Activities Tourism, government contracting, facility management, IT consulting, construction and vehicle leasing.

Change from 2009: 29%

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES Carlile Transportation Systems 1800 E. First Ave. Anchorage, AK 99501-1833 Phone: 907-276-7797 Fax: 907-278-7301 www.carlile.biz Top Executive: Linda Leary, President

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 675 . 525 1980 . . 28

Main Business Full-Service Transportation Company

SUCCESS Principal Activities Truck load and less than truck load, heavy haul, hazmat and warehousing. Subsidiaries Carlile Logistics

GROSS REVENUE (Millions $) 2010 . . . . . . . . $137,100,000 2009 . . . . . . . . $131,000,000 2008 . . . . . . . . $123,000,000 2007 . . . . . . . . $122,000,000 2006 . . . . . . . . $116,000,000 Change from 2009: 5%

N RA K

27 Udelhoven Oilfield System Services Inc.

N RA K

184 E. 53rd Ave. Anchorage, AK 99518-1222 Phone: 907-344-1577 Fax: 907-344-5817 www.udelhoven.com rfrontde@udelhoven.com Top Executive: Jim Udelhoven, CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 877 . 832 1970 . . 27

Main Business Oilfield Services, Construction Management, Electrical & Mechanical System Installation

GROSS REVENUE (Millions $) 2010 . . . . . . . . $133,582,856 2009 . . . . . . . . $132,131,000 2008 . . . . . . . . $124,417,000 2007 . . . . . . . . $106,830,000 2006 . . . . . . . . $91,780,000

Principal Activities Mechanical and electrical inspection, functional check-out, quality assurance/quality control, plumbing, welding, modular fabrication, industrial and commercial construction. Subsidiaries Udelhoven Inc., Udelhoven International Inc.

Change from 2009: 1%

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKAâ&#x20AC;&#x2122;S TOP 49ERS: SUPERHEROES Olgoonik Corp. 3201 C Street, Suite 700 Anchorage, AK 99503 Phone: 907-562-8728 Fax: 907-562-8751 www.olgoonik.com info@olgoonik.com Top Executive: June Childress, President

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 525 . 105 1973 . . 26

GROSS REVENUE (Millions $) 2010 . . . . . . . . $133,000,000 2009 . . . . . . . . $135,000,000 2008 . . . . . . . . $82,000,000 2007 . . . . . . . . $78,480,000 2006 . . . . . . . . $77,000,000 Change from 2009: -1%

N RA K

Main Business Alaska Native Corporation

HoTH Inc. dba Era Alaska 4700 Old Intâ&#x20AC;&#x2122;l Airport Rd. Anchorage, AK 99502 Phone: 907-266-8394 Fax: 907-266-8391 www.flyera.com sales@flyera.com Top Executive: Bob Hajdukovich, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 805 . 800 1948 . . 30

SUCCESS

Principal Activities Oilfield support, construction, logistics/supply chain management, operations and maintenance, environmental management, and technical security services to government and commercial clients worldwide.

Subsidiaries Kuk Construction, O.E.S., Olgoonik Aerospace Services, Olgoonik Diversified Services, Olgoonik Global Security, Olgoonik Logistics, Olgoonik Machinery and Equipment, Olgoonik Management Services, Olgoonik Oilfield Services, Olgoonik Specialty Contractors, Olgoonik Technical Services

Recent Noteworthy Events Significant investments in Wainwright-based oilfield support infrastructure: roads, pads, 20-man camp, office facilities, modern fleet of heavy equipment, maintenance shops.

Main Business Scheduled Passenger & Cargo Services, Air Charter Services

GROSS REVENUE (Millions $) 2010 . . . . . . . . $127,000,000 2009 . . . . . . . . $117,000,000 2008 . . . . . . . . $124,000,000 2007 . . . . . . . . $60,000,000 2006 . . . . . . . . $35,000,000

Principal Activities Statewide commuter airline with scheduled passenger flights, freight and charter services. Era Alaska includes: Era Aviation, Frontier Flying Service and Hageland Aviation Services.

Change from 2009: 9%

N RA K

Transportation n Solutions For Your Business!

Interior A Alaskaâ&#x20AC;&#x2122;s Fleet Headquarters d SERVING ALASKA BUSINESS FOR 34 YEARS! Complete Line of Ford Vehicles in Stock

6HHNLQV )RUG 'U )DLUEDQNV $ODVND Ă HHWVDOHV#VHHNLQV FRP

SEEKINS.COM www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

/DNH &ROOHHQ 5G 3UXGKRH %D\ $ODVND

2011 ALASKA’S TOP 49ERS: SUPERHEROES Davis Constructors & Engineers Inc. 740 Bonanza Ave. Anchorage, AK 99518 Phone: 907-562-2336 Fax: 907-561-3620 www.davisconstructors.com admin@davisconstructors.com Top Executive: Josh Pepperd, President

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 175 . 175 1976 . . 23

GROSS REVENUE (Millions $) 2010 . . . . . . . . $120,300,000 2009 . . . . . . . . $151,500,000 2008 . . . . . . . . $178,200,000 2007 . . . . . . . . $180,380,000 2006 . . . . . . . . $194,000,000 Change from 2009: -21%

SUCCESS

Main Business Commercial Construction & DesignBuild Principal Activities Commercial construction and design build. Current Projects: Military Housing Privatization – JBER, UAF Life Sciences Research & Teaching Facility, Providence Generations, Providence Alaska Cottages, Chanlyut 3, ELM306 Aeromedical/ Mental Health Clinic; ELM301 Weapons Load Training Facility.

Recent Noteworthy Events Ranked 378 internationally in ENR’s Top 400. Relay for Life - Team Davis Raised $103,000. Subsidiaries Mass Excavation Inc.

31 The Tatitlek Corp. 561 E. 36th Ave. Anchorage, AK 99503 Phone: 907-278-4000 Fax: 907-278-4050 www.tatitlek.com info@tatitlek.com Top Executive: Roy Totemoff, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

1,900 . 122 1973 . . 36

GROSS REVENUE (Millions $) 2010 . . . . . . . . $110,700,000 2009 . . . . . . . . $107,500,000 2008 . . . . . . . . $90,000,000 2007 . . . . . . . . $81,200,000 2006 . . . . . . . . $46,000,000 Change from 2009: 3%

N RA K

. . . .

Main Business Alaska Native Village Corporation Principal Activities Military training support, mobile training teams, foreign culture and language training; embedded linguist, weapon training; logistics services; simulation systems operations and maintenance, program analyst, construction; facilities and equipment maintenance; Installation Support Services, IT development, support and training; and property management.

Recent Noteworthy Events Tatitlek Corp.’s wholly owned subsidiaries continued to deliver key critical services to the U.S. government’s important priorities and mission needs. Subsidiaries grew through new service offerings. Subsidiaries GeoNorth LLC, Tatitlek Construction Services Inc., Tatitlek Contractors Inc., Tatitlek Logistics Corp., Tatitlek Management Inc., Tatitlek Response Services Inc., Tatitlek Support Services Inc., Tatitlek Technologies Inc., Tatitlek Training Services Inc.

Alaska USA Better for your business Take advantage of customized solutions, fewer fees, and local service. Q Q Q Q Q Q

Checking, loans, and depository services Online account management Business Visa® Check Card Insurance, bonds, and employee benefits Retirement services Investment management*

Find out what Alaska USA can do for your business. 563-4567 | (800) 525-9094 | www.alaskausa.org Member funds insured by the NCUA. * Investment services provided by Alaska USA Trust Company. Alaska USA Trust Company products are not federally insured and are not obligations of, or guaranteed by, Alaska USA Federal Credit Union or any other affiliated entity. These products involve investment risks that include possible loss of principal.

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES Three Bears Alaska Inc. 445 N. Pittman Rd., Ste. B Wasilla, AK 99654 Phone: 907-357-4311 Fax: 907-357-4312 www.threebearsalaska.com steve@threebearsalaska.com Top Executive: David Weisz, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 396 . 347 1980 . . 32

GROSS REVENUE (Millions $) 2010 . . . . . . . . $109,000,000 2009 . . . . . . . . $111,247,617 2008 . . . . . . . . $105,772,095

Main Business Retail Grocery & General Merchandise Principal Activities Retail sales.

SUCCESS Recent Noteworthy Events Completed adding full-line hunting, fishing and camping sporting goods departments to stores in Kenai and Palmer, Alaska, and Butte, Mont.

Change from 2009: -2%

N RA K

33 MTA Inc. 1740 S. Chugach Street Palmer, AK 99645 Phone: 907-745-3211 Fax: 907-761-2481 www.mtasolutions.com Top Executive: Greg Berberich, CEO

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 387 . 387 1953 . . 37

GROSS REVENUE (Millions $) 2010 . . . . . . . . $106,000,000 2009 . . . . . . . . $109,000,000 2008 . . . . . . . . $103,290,000 2007 . . . . . . . . $95,800,000 2006 . . . . . . . . $97,000,000 Change from 2009: -3%

Main Business Business & Residential Telecommunications

Principal Activities Alaskan-owned cooperative delivering advanced communications products, including wireless, high-definition digital television Subsidiaries with video-on-demand, high-speed MTA Communications Internet, local and long-distance, online directory, IT business support, directory and television advertising, and local community content.

Recent Noteworthy Events Deployed 3G EVDO wireless network. expanded fiber optic network. Supported more than 140 nonprofit organizations, groups and events. In 2010, MTA was 57 years locally owned and operated.

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES Usibelli Coal Mine Inc. and Alaska Affiliates PO Box 1000 Healy, AK 99743 Phone: 907-452-2625 Fax: 907-451-6543 www.usibelli.com info@usibelli.com Top Executive: Joe Usibelli, Chairman

N RA K

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 138 . 138 1942 . . 38

GROSS REVENUE (Millions $) 2010 . . . . . . . . $96,753,015 2009 . . . . . . . . $91,458,640 2008 . . . . . . . . $73,120,000 2007 . . . . . . . . $66,230,000 2006 . . . . . . . . $60,530,000

SUCCESS

Main Business Coal Mining

Recent Noteworthy Events Exportation of coal to Chile and Japan.

Principal Activities Coal mining and coal marketing. Wholesale power and retail district heating, investments, real estate and vineyards.

Subsidiaries Aurora Energy Usibelli Investments Usibelli Vineyards

Main Business Alaska Native Corporation

Recent Noteworthy Events Consistency profitable since 1987. Paid out $4 million in shareholders dividends.

Change from 2009: 6%

35 Bethel Native Corp. PO Box 719 Bethel, AK 99559 Phone: 907-543-2124 Fax: 907-543-2897 www.bnc-alaska.com ahoffman@bnc-alaska.com Top Executive: Anastasia Hoffman, President & CEO

Worldwide Employees . . . . 100 Alaska Employees . . . . . . . 80 Year Established . . . . . . 1973 GROSS REVENUE (Millions $) 2010 . . . . . . . . $96,745,260 2009 . . . . . . . . $36,109,417 2008 . . . . . . . . $12,920,000 2007 . . . . . . . . $14,160,000 2006 . . . . . . . . $14,300,000 Change from 2009: 168%

N RA K

Principal Activities BNC delivers a broad range of services, including project management, construction, real estate investment, telecom, environmental design, construction and demolition services, abatement and logistics support services, uniform and accessories distribution, management and warehouse services.

Subsidiaries Bethel Contracting LLC Bethel Environmental Solutions LLC Bethel Federal Services LLC Bethel Services Inc Bethel Solutions Inc

36 What Can *Top 49er

Do For

>> AH AHTNA AHTNA, TNA NA,, IINCORPORATED, NC RPO NCO RP RAT RA ED ED, an Al Alask Alaska aska ask a Native Nati Nati a ve Corrpor Corporation porati ation ati on and nd a 2011 201 0 1 Top 01 Top p 49er, 49e 9err, 9e r, iss a global glob lobal al company com ompan p y pan provid pro providing viding vid ing g exceptional excep ex ceptio cep tional tio nal co const construction nstruc nst ructio ruc tio ion n and and integrated int ntegr nt egrate egr ated ate d ser services ervic er vic ices es to o bot both h gove g government overnm ove rnment rnm ent an and d private priv priv rivate ate sector secto se ctorr clients. cto clie ients nts.. nts

Ahtna’s Capabilities: Civil Construction Demolition Environmental Remediation Facilities Management Facilities Support Services Food Service Contractors Fuels Management Government Contracting Healthcare Environmental Services Hospital Aseptic Maintenance Janitorial Services Medical Augmentation Oil & Gas Pipeline Construction Records Management Security Guard Services Simulations Support Operations Staff Augmentation Surveying Training Range Operations Vertical Construction

406 W Fireweed Lane, Suite 101 | Anchorage, Alaska 99503 For more information: Call (907) 868-8250 | Visit www.ahtna-inc.com

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS

Got Energy Questions? N RA K

37 Matanuska Electric Association Inc. 163 E. Industrial Way Palmer, AK 99645 Phone: 907-745-3231 Fax: 907-761-9368 www.mea.coop contact@matanuska.com Top Executive: Joe Griffith, Gen. Mgr. Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 152 . 152 1941 . . 34

We’ve got answers. RESEARCH INFORMATION CENTER (RIC) 4300 Boniface Pkwy., Suite 120, Anchorage, AK 99504

GROSS REVENUE (Millions $) 2010 . . . . . . . . $94,000,000 2009 . . . . . . . . $110,000,000 2008 . . . . . . . . $96,800,000 2006 . . . . . . . . $85,000,000

Call today 907-330-8166 or toll-free: 800-478-4636

www.ahfc.us

Change from 2009: -15% Main Business Rural Electric Cooperative Principal Activities Member owned cooperative providing electric power to 56,000 customers from Eagle River up to Talkeetna and over to the Matanuska Glacier. Recent Noteworthy Events Launched Round Up, a program to assist those in need in our communities. Planning and construction for MEA’s new Eklutna Power Plant is in progress and the plant will be online Jan. 1, 2015.

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKAâ&#x20AC;&#x2122;S TOP 49ERS

THE ART OF BUSINESS Sensei Terry Adlawan founded Alaska Jujitsu in 1984, teaching throws, holds and other moves passed down for thousands of years. Along with his wife Sussie, this senseiâ&#x20AC;&#x2122;s business sense helped ACVB bring the American Jujitsu Instituteâ&#x20AC;&#x2122;s Camp Kokua to Anchorage. Kids will hone their jujitsu skills and get their kicks exploring Anchorage attractions and local businesses.

American Jujitsu Institute Terry and Sussie Adlawan THE MEETING: Camp Kokua 2013 June 20 â&#x20AC;&#x201C; 24, 2013 400 delegates Estimated Economic Impact: $389,664

Congratulations Terry and Sussie ACVB Me eting Champions! Are you a member of a national or international association? Bring your group to Anchorage. Contact the Anchorage Convention & Visitors Bureau (ACVB): NFFUJOHT!BODIPSBHF OFU t

N RA K

38 Construction Machinery Industrial 5400 Homer Dr. Anchorage, AK 99518 Phone: 907-563-3822 Fax: 907-563-1381 www.cmiak.com o.prestwick@cmiak.com Top Executive: Ken Gerondale, President & CEO Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 109 . 109 1985 . . 40

GROSS REVENUE (Millions $) 2010 . . . . . . . . $90,000,000 2009 . . . . . . . . $87,000,000 2008 . . . . . . . . $124,000,000 2007 . . . . . . . . $91,000,000 2006 . . . . . . . . $76,200,000 Change from 2009: 3% Main Business Heavy Equipment Sales, Rental & Service Principal Activities Distributor of construction, mining and logging heavy equipment in Alaska. Representative for Volvo, Hitachi, Atlas Copco, Doosan, Metso and Link-Belt Recent Noteworthy Events CMI has the highest market share for construction and mining equipment in North America for Volvo and Hitachi.

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

2011 ALASKA’S TOP 49ERS

N RA K

39 Colville Inc. Pouch 340012 Prudhoe Bay, AK 99734 Phone: 907-659-3189 Fax: 907-659-3190 www.colvilleinc.com info@colvilleinc.com Top Exeutive: Eric Helzer, President & CEO

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. . 98 . . 98 1981 . . 44

GROSS REVENUE (Millions $) 2010 . . . . . . . . $78,000,000 2009 . . . . . . . . $75,900,000 2008 . . . . . . . . $64,400,000 2007 . . . . . . . . $49,700,000 2006 . . . . . . . . $49,700,000 Change from 2009: 3% Main Business Arctic Full-Service Fuel Logistics Contractor, Solid Waste Services, Industrial Supplier Principal Activities Oil and gas industry support services, including solid waste utility, logistics, and fuel industry supplier with NAPA, True Value, VIPAR, Offshore Logistics.

Proud to be a 49er %HWKHO 1DWLYH &RUSRUDWLRQ Growing New Business Opportunities

Recent Noteworthy Events Retaining and renewing current market share, successfully made clients competitive in a changing market place. Subsidiaries Colville Logistics Colville Solid Waste Utility

*HQHUDO &RQWUDFWLQJ (QYLURQPHQWDO 6HUYLFHV *RYHUQPHQW &RQWUDFWLQJ

/RJLVWLFV 6XSSRUW 6HUYLFHV )DFLOLWLHV 2SHUDWLRQV 3ODQQLQJ 3HUPLWWLQJ 1(3$

CONTACTS: ANA HOFFMAN P.O. Box 719 Bethel, AK 99559 907.543.2124

TOM KENNEDY 2605 Denali St., Suite 100 Anchorage, AK 99503 907.522.6311

www.bethelnativecorp.org

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS

N RA K

40 Watterson Construction Co. 6500 Interstate Cir. Anchorage, AK 99518 Phone: 907-563-7441 Fax: 907-563-7222 www.wattersonconstruction.com info@wattersonsconstruction.com Top Executive: Bill Watterson, President Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. . 81 . . 80 1981 . . 42

GROSS REVENUE (Millions $) 2010 . . . . . . . . $75,000,000 2009 . . . . . . . . $90,000,000 2008 . . . . . . . . $78,000,000 2007 . . . . . . . . $86,000,000 2006 . . . . . . . . $72,600,000

Doyon, Limited provides high-quality

Change from 2009: -17% Main Business General Building Contractor

• oil field services • security • engineering management • construction • facility management • tourism

Principal Activities Fort Richardson – Warrior In Transition; UAA – Renovation; ANTHC – Office Building; Fort. Wainwright – Hangar and Vehicle Maintenance Facility

Doyon Values

Recent Noteworthy Events CHASE award with SOA OSHA; two LEED Gold and one LEED Silver awards for Corps of Engineers projects.

• financially responsible • pride and respect in Native ownership • socially and culturally responsible • commitment to the long-term • honesty and integrity • commitment to excellence • respect for employees

LEADER in All We Do

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS

N RA K

41 Peninsula Airways Inc. 6100 Boeing Ave. Anchorage, AK 99502 Phone: 907-771-2500 Fax: 907-771-2665 www.penair.com missya@penair.com Top Executive: Danny Seybert, President Worldwide Employees . . . . 500 Alaska Employees . . . . . . 500 Year Established . . . . . . 1955 49er Rank Last Year . . . . . . 45 GROSS REVENUE (Millions $) 2010 . . . . . . . . $72,300,000 2009 . . . . . . . . $70,100,000 2008 . . . . . . . . $70,100,000 2007 . . . . . . . . $70,300,000 2006 . . . . . . . . $64,900,000 Change from 2009: 3% Main Business Air Transportation: Scheduled and Chartered Passenger, Mail and Freight Principal Activities PenAir is a regional airline serving 42 communities in Western Alaska, the Aleutians and Pribilofs. The company has 35 aircraft serving more than 45 communities total. Recent Noteworthy Events Sold all Metro aircraft and now have an all SAAB fleet with nine passenger aircraft and two all cargo aircraft.

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS

N RA K

42 UNIT Company 620 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-349-6666 Fax: 907-522-3464 www.unitcompany.com info@unitcompany.com Top Executive: Michael Fall, President Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. . 75 . . 75 1977 . . 47

GROSS REVENUE (Millions $) 2010 . . . . . . . . $69,000,000 2009 . . . . . . . . $59,000,000 2008 . . . . . . . . $59,000,000 2007 . . . . . . . . $52,000,000 2006 . . . . . . . . $50,100,000 Change from 2009: 17% Main Business Commercial General Contractor Principal Activities Commercial general contractor involved in all types of building construction, including design build, construction management and design assist. Recent Noteworthy Events Company was recently awarded Point Lay Power Plant, Fort Richardson Battle Command Center and Fort Wainwright Company Operations Facility.

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKAâ&#x20AC;&#x2122;S TOP 49ERS

Global experience - Local Service COMMODITIES WE PURCHASE N RA K

)(55286 352'8&76

121 )(55286 352'8&76

Â&#x2021; &DU %RGLHV Â&#x2021; 7LQ Â&#x2021; 6WHHO Â&#x2021; ,QGXVWULDO 6FUDS

Â&#x2021; $OXPLQXPÂ&#x2021; %UDVV Â&#x2021; &RSSHU Â&#x2021; 6WDLQOHVV 6WHHO

Seekins Ford Lincoln Inc. 1625 Seekins Ford Dr. Fairbanks, AK 99701 Phone: 907-459-4000 Fax: 907-459-4057 www.seekins.com sales@seekins.com Top Executive: Ralph Seekins, President Worldwide Employees . . . . 116 Alaska Employees . . . . . . 116 Year Established . . . . . . 1977 GROSS REVENUE (Millions $) 2010 . . . . . . . . $65,520,021 2009 . . . . . . . . $54,418,442 2008 . . . . . . . . $60,400,000 2007 . . . . . . . . $64,300,000 2006 . . . . . . . . $64,300,000

SERVICES OFFERED Â&#x2021; $XWR +XON 6KUHGGLQJ Â&#x2021; 0RELOH &DU &UXVKHUV Â&#x2021; 0RELOH 7LQ %DOHU

Â&#x2021; 0RELOH 6KHDUV Â&#x2021; 2Q OLQH $FFRXQW $&&(66 Â&#x2021; &RQĂ&#x20AC;GHQWLDO 6KUHGGLQJ 'HVWUXFWLRQ

ZZZ VLPVPP FRP

Change from 2009: 20% Main Business Auto Dealership Principal Activities New and used auto sales, parts, service and body shop. Recent Noteworthy Events Awarded Power Stroke Diesel Volume & Growth Top 50 award in recognition of achieving national Top 50 dealership status in power stroke diesel parts volume and growth.

â&#x20AC;&#x153;Commitment to Quality Through Pride of Employee Ownership.â&#x20AC;? The Superior Group is committed to becoming the best mechanical and electrical contractor in Alaska... to do this we pledge to meet and exceed our customersâ&#x20AC;&#x2122; requirements every time by providing services of the highest quality.

Superior Plumbing and Heating 349.6572 Alaska Sheet Metal 279.6009 Haakenson Electric 346.3043 Superior Mechanical Service 349.6550 Support Services of Alaska 278.8212 Â&#x2039;.HQ *UDKDP 3KRWRJUDSK\

ZZZ VXSHULRUSQK FRP Â&#x2021; 3 2 %R[ Â&#x2021; $QFKRUDJH $ODVND

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

2011 ALASKAâ&#x20AC;&#x2122;S TOP 49ERS Aleut Corporation supports the use of renewable energy, energy conservation and solar-powered greenhouses to promote economic stability for our shareholders and residents in the Aleutian/Pribilof Islands region. N RA K

44 Homer Electric Association Inc. 3977 Lake St. Homer, AK 99603 Phone: 907-235-8551 Fax: 907-235-3313 www.homerelectric.com Top Executive: Brad Janorschke, Gen. Mgr.

Construction of wind turbine on St. Paul Island

WĹ&#x161;Ĺ˝ĹśÄ&#x17E;Í&#x2014; ĎľĎŹĎłÍ&#x2DC;ĎąĎ˛ĎÍ&#x2DC;Ď°ĎŻĎŹĎŹ &Ä&#x201A;Ç&#x2020;Í&#x2014; ĎľĎŹĎłÍ&#x2DC;ĎąĎ˛ĎŻÍ&#x2DC;Ď°ĎŻĎŽĎ´ dĹ˝ĹŻĹŻÍ˛&Ć&#x152;Ä&#x17E;Ä&#x17E;Í&#x2014; ĎÍ&#x2DC;Ď´ĎŹĎŹÍ&#x2DC;ĎŽĎŻĎŽÍ&#x2DC;Ď°Ď´Ď´ĎŽ

Community greenhouse garden in Nikolski

Ď°ĎŹĎŹĎŹ KĹŻÄ&#x161; ^Ä&#x17E;Ç Ä&#x201A;Ć&#x152;Ä&#x161; ,Ĺ?Ĺ?Ĺ&#x161;Ç Ä&#x201A;Ç&#x2021;Í&#x2022; ^Ć&#x161;Ä&#x17E;Í&#x2DC; ĎŻĎŹĎŹ ĹśÄ?Ĺ&#x161;Ĺ˝Ć&#x152;Ä&#x201A;Ĺ?Ä&#x17E;Í&#x2022; ĹŻÄ&#x201A;Ć?ĹŹÄ&#x201A; ĎľĎľĎąĎŹĎŻ

Ç Ç Ç Í&#x2DC;Ä&#x201A;ĹŻÄ&#x17E;ĆľĆ&#x161;Ä?Ĺ˝Ć&#x152;Ć&#x2030;Í&#x2DC;Ä?Ĺ˝Ĺľ

Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 130 . 130 1945 . . 39

GROSS REVENUE (Millions $) 2010 . . . . . . . . $65,240,548 2009 . . . . . . . . $87,283,352 2008 . . . . . . . . $77,452,764 2007 . . . . . . . . $70,000,000 2006 . . . . . . . . $68,000,000 Change from 2009: -25% Main Business Member Owned Electric Cooperative, Electric Utility

Tatitlek engages in competitive and innovative business locally and worldwide. Our family of subsidiaries provides a wide range of high quality services catering to a diversiĂ&#x20AC;ed market. Tatitlek is proud to serve the U.S. Military with various areas of support including: pre-deployment immersion training with foreign cultures; weapons training services; information technology support; logistics services; construction and general contracting. The Tatitlek Corporationâ&#x20AC;&#x2122;s mission is to maintain a diverse company providing services and products to our customers while ensuring stewardship of all assets and connection to our lands. The vision of Tatitlek is to bridge the traditions of our village with global economic opportunity, enhancing the quality of life for our shareholders.

Principal Activities Electric utility provider for most of the western Kenai Peninsula, from Sterling to Kachemak Bay. The company also operates and maintains the State-owned Bradley Lake hydroelectric project. Recent Noteworthy Events Independent light generation project, which will result in generation facilities in Nikiski by 2014.

An Alaska Native Village Corporation Supporting Our Shareholders Through a Tradition of Excellence East th Avenue Â&#x2021; Anchorage Alaska 3hone Â&#x2021; )ax Â&#x2021; ZZZ tatitlek coP

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

2011 ALASKA’S TOP 49ERS Alaska Native Tribal Health Consortium Healthy Communities Building Anchorage, AK x 85,000 SF addition to COB located on the ANTHC campus. x USGBC LEED Silver x Completion August, 2012

FTR269C Company Operations Facility Ft. Richardson, AK

N RA K

x Design/Build x Design Start: Aug. 5, 2011 x Construction Start: Sept. 6, 2011 x Completion: Jan. 26, 2013

45 Alcan Electrical & Engineering Inc. 6670 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-563-3787 Fax: 907-562-6286 www.alcanelectric.com sb@alcanelectric.com Top Executive: Scott Bringmann, President Worldwide Employees . . . . 205 Alaska Employees . . . . . . 205 Year Established . . . . . . 1971 GROSS REVENUE (Millions $) 2010 . . . . . . . . $58,354,000 2009 . . . . . . . . $45,800,000 2008 . . . . . . . . $50,500,000 2007 . . . . . . . . $42,100,000

FTW348A AAC Hangar Ft. Wainwright, AK

x Design/Build x 90,000 SF Hangar Bay x Deep Dynamic Compaction x USGBC LEED Silver x 135,500 SF Total Building P.O. Box 220670 Anchorage AK 99522 Tel: (907) 563-7441 Fax: (907) 563-7222 info@wattersonconstruction.com

Change from 2009: 27% Main Business Electrical & Telecommunications Construction Principal Activities Commercial, industrial and institutional facilities, including electrical, access control, security cameras, outside line, process control, fiber optic, communication and data, fire alarms. Projects include Providence SW Campus Expansion, UAA Health Science Building, Goose Creek Prison, Anchorage and Fairbanks Sport Fish Hatcheries. Recent Noteworthy Events American Cancer Society – Annual Dunk Tank Fund Raiser and youth sport teams sponsor.

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS

N RA K

46 Roger Hickel Contracting Inc. 11001 Calaska Cir. Anchorage, AK 99515 Phone: 907-279-1400 Fax: 907-279-1405 www.rogerhickelcontracting.com contact@rogerhicklecontracting.com Top Executive: Mike Shaw, President Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. . 50 . . 50 1995 . . 46

GROSS REVENUE (Millions $) 2010 . . . . . . . . $57,958,000 2009 . . . . . . . . $67,438,000 2008 . . . . . . . . $58,050,000 2007 . . . . . . . . $44,810,000 2006 . . . . . . . . $50,650,000

Change from 2009: -14%

Shipping experts you can count on.

Main Business General Contractor, Commercial & Road Work Principal Activities General contractor of civil and commercial projects. Union contractor and member of the Associated General Contractors of America.

For more than 75 years companies have trusted Alaska Air Cargo to deliver. That’s because we have the most experienced, trusted service agents in the

Recent Noteworthy Events Associated General Contractor’s Excellence in Safety Record for a building contractor.

business – no doubt. And, behind the scenes we have an entire team at the ready so your cargo can jet seamlessly to more than 80 destinations nationwide. From urgent documents to freight, take flight with Alaska Air Cargo.

#1 ON-TIME MAJOR AIRLINE IN NORTH AMERICA *

*2010 FLIGHTSTATS.COM

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS

N RA K

47 PO Box 230387 Anchorage, AK 99523 Phone: 907-344-5011 Fax: 907-344-5094 www.superiorpnh.com tmentzer@superiorpnh.com Top Executive: Michael Blake, President / Corporate Gen. Mgr. Worldwide Employees Alaska Employees . . Year Established . . . 49er Rank Last Year .

. . . .

. 200 . 200 1964 . . 48

GROSS REVENUE (Millions $) 2010 . . . . . . . . $55,000,000 2009 . . . . . . . . $55,000,000 2008 . . . . . . . . $35,000,000 2007 . . . . . . . . $36,440,000 2006 . . . . . . . . $36,440,000

The Superior Group Inc.

Fish printing workshop at Salmon Camp, a conservation program of the Bristol Bay Economic Development Corp. with support from The Nature Conservancy

Corporate Council on the Environment

Change from 2009: 0% Main Business Full-Service Mechanical, HVAC, Plumbing, Electrical, Maintenance Contractor Principal Activities Providing full-service mechanical and electrical contracting, including design, commissioning and maintenance services. Recent Noteworthy Events Celebrating 47 years serving Alaska. Subsidiaries Alaska Sheet Metal, Haakenson Electric, Superior Mechanical Service, Superior Plumbing and Heating, Support Services of Alaska

Lead Corporate Partners ($25,000 & above) Alaska Airlines & Horizon Air. . Alaska Journal of Commerce BP . ConocoPhillips Alaska, Inc. . Petroleum News

Join Us

Thank You

Corporate Partners ABR, Inc. Accent Alaska.com-Ken Graham Agency

Alaska Business Monthly

Alaska Rubber & Supply, Inc. Alaska Steel Company Alaska Wildland Adventures Alyeska Pipeline Service Company American Marine Corporation Arctic Slope Regional Corporation Arctic Wire Rope & Supply Bristol Bay Native Corporation Calista Corporation Carlile Transportation Systems, Inc. Chevron CIRI Clark James Mishler Photography CONAM Construction Company Denali National Park Wilderness Centers, Ltd.

Fairweather, LLC Flint Hills Resources Holland America Lines Westours, Inc. Kim Heacox Photography Koniag, Inc. LGL Alaska Research Associates, Inc. Lynden Family of Companies McKinnon & Associates, LLC NANA Development Corporation Northern Economics, Inc. Oasis Environmental, Inc. Paciﬁc Star Energy Shell Exploration & Production Company Staser Consulting Group, LLC Stoel Rives, LLP Trident Seafoods Corporation Udelhoven Oilﬁeld System Services, Inc. XTO Energy, Inc.

The Nature Conservancy

715 L Street . Suite 100 . Anchorage, AK 99501 . alaska@tnc.org . 907-276-3133 . nature.org/alaska

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKAâ&#x20AC;&#x2122;S TOP 49ERS

Greg Kenai, Freight Supervisor

N RA K

48 Anchorage Chrysler Dodge Center 2601 E. Fifth Ave. Anchorage, AK 99501 Phone: 907-276-1331 Fax: 907-264-2202 www.anchoragechrysler.com anchoragechryslerdodge.com Top Executive: Rodney Udd, President & CEO

Meet Greg Fite WITH GREG ON THE JOB, YOU CAN FLY FEELING SECURE. For Era Freight Supervisor Greg Fite, safety is his No. 1 priority. Itâ&#x20AC;&#x2122;s the ďŹ rst thing he thinks about for his wife, son, two daughters and ďŹ ve grandkids â&#x20AC;&#x201D; who all live in Kenai â&#x20AC;&#x201D; when they ďŹ&#x201A;y. In fact, itâ&#x20AC;&#x2122;s the main reason heâ&#x20AC;&#x2122;s been with Era for 26 years. â&#x20AC;&#x153;They are the safest company going â&#x20AC;&#x201D; thatâ&#x20AC;&#x2122;s why I started working here. Our airplanes and equipment are very well taken

Worldwide Employees . . . . . 95 Alaska Employees . . . . . . . 95 Year Established . . . . . . 1963 GROSS REVENUE (Millions $) 2010 . . . . . . . . $52,300,000 2009 . . . . . . . . $50,000,000 2008 . . . . . . . . $51,610,000 2007 . . . . . . . . $54,100,000 2006 . . . . . . . . $57,000,000 Change from 2009: 5% Main Business New & Used Auto Sales, Service, & Parts Principal Activities Chrysler, Jeep and Dodge new and used vehicle sales and service. Your hometown dealer for 47 years. Recent Noteworthy Events Obtained Jeep Franchise.

care of.â&#x20AC;? See for yourself how employees like Greg take great care of Era Alaskaâ&#x20AC;&#x2122;s customers. With flights to more than 100 communities statewide, Era has a safe and fast route to get you to your top priorities.

Earn FlyAway Rewards with every ďŹ&#x201A;ight! _ Ă \HUD FRP ,Q $QFKRUDJH *5 refers to number of segments ďŹ&#x201A;own. Each ďŹ&#x201A;own segment earns 10 points. 50 points may be used for a Basic, one-way travel award. Ask your local Era Alaska agent for more details.

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

2011 ALASKA’S TOP 49ERS

N RA K

49 Alaska Industrial Hardware Inc. 2192 Viking Dr. Anchorage, AK 99501 Phone: 907-276-7201 Fax: 907-258-3054 www.aihalaska.com info@aihalaska.com Top Executive: Mike Kangas, President/Gen. Mgr. Worldwide Employees . . . . 196 Alaska Employees . . . . . . 196 Year Established . . . . . . 1959 GROSS REVENUE (Millions $) 2010 . . . . . . . . $50,434,000 2009 . . . . . . . . $50,957,000 2008 . . . . . . . . $53,200,000 2007 . . . . . . . . $50,700,000 2006 . . . . . . . . $50,700,000 Change from 2009: -1% Main Business Retail & Industrial Tools, Hardware & Construction Supplies Principal Activities Retail sale and industrial sale of tools, industrial supplies, hardware, fasteners, construction supplies, small equipment, pumps, generators and pressure washers. Recent Noteworthy Events AIH began construction on a new 54,000-square-foot store in South Anchorage, scheduled to open in spring 2012. Subsidiaries General Hardware Distributors

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES T OP 49 ERS A LPHABETICAL L ISTING

WITH

F IVE Y EARS R ANK

AND

SUCCESS

R EVENUE

2011 49ers

2010 Revenue

2010 49ers

2009 Revenue

2009 49ers

2008 Revenue

2008 49ers

2007 Revenue

2007 49ers

2006 Revenue

TOP 49er

Rank

$ Millions

Rank

$ Millions

Rank

$ Millions

Rank

$ Millions

Rank

$ Millions

Afognak Native Corp./Alutiiq Ahtna Inc. Alaska Industrial Hardware Inc. Alaska USA Federal Credit Union Alcan Electrical & Engineering Inc. Aleut Corp. Anchorage Chrysler Dodge Center Arctic Slope Regional Corp. Bering Straits Native Corp. Bethel Native Corp. Bristol Bay Native Corp. Calista Corp. Carlile Transportation Systems Chenega Corp. Chugach Alaska Corp. Chugach Electric Association Inc. Colville Inc. Construction Machinery Industrial Cook Inlet Region Inc. Davis Constructors & Engineers Inc. Doyon, Limited First National Bank Alaska Goldbelt Inc. Golden Valley Electric Association Homer Electric Association Inc.

6 13 49 10 45 22 48 1 18 36 3 14 27 4 5 12 39 38 19 31 8 23 26 16 44

783.00 243.00 50.43 302.00 58.35 159.42 52.30 2,331.68 190.34 96.75 1,382.40 234.87 137.10 1,100.00 936.98 258.30 78.00 90.00 188.36 120.30 458.60 150.93 139.35 220.02 65.24

6 14

766.00 231.00

7 20 46 11

515.70 99.85 50.70 270.30

537.90 110.05 50.70

312.00

146.06

729.80 196.14 53.20 311.60 50.50 116.05 51.61 2,297.34 113.34

8 25 43

7 16 47 9 49 30 48 1 31

45 1

54.10 986.32

23 40 1

120.00 57.00 1,700.00

2 14 29 5 4 11 41 25 22 18 10 19 33 15

1,294.85 224.09 123.00 894.00 951.95 289.50 64.40 124.00 11.12 178.20 295.56 170.67 106.00 214.00

2 19 26 5 4 10 38 30 21 17 9 16 32 14 36

993.68 138.44 122.00 768.00 940.51 259.00 49.70 91.00 119.83 180.38 272.37 188.80 85.00 196.00 70.00

6 28 21 5 2 9 47 33 12 13 11 14 34 16 36

762.41 94.45 116.00 782.00 890.00 267.50 49.70 76.20 208.00 194.00 222.30 180.46 76.00 165.00 68.00

1 21

1,945.06 162.30

2 16 28 5 4 12 44 40 43 23 10 22 35 18 39

1,391.57 203.02 131.00 1,077.00 1,105.27 290.20 75.90 87.00 79.89 151.50 416.40 156.21 107.75 197.42 87.28

Energy and resource development Oilﬁeld and heavy construction services

AN ALASKA NATIVE CORPORATION with diverse business interests

Real estate development and management Environmental remediation services Tourism and hospitality Renewable energy Telecommunications Aerospace defense Private equity and venture capital investments

100

CIRI.COM

www.akbizmag.com • Alaska Business Monthly • October 2011

2011 ALASKA’S TOP 49ERS: SUPERHEROES

SUCCESS

2011 49ers

2010 Revenue

2010 49ers

2009 Revenue

2009 49ers

2008 Revenue

2008 49ers

2007 Revenue

2007 49ers

2006 Revenue

TOP 49er

Rank

$ Millions

Rank

$ Millions

Rank

$ Millions

Rank

$ Millions

Rank

$ Millions

HoTH Inc. dba Era Alaska Koniag Inc. Lynden Inc. Matanuska Electric Association Inc. MTA Inc. NANA Regional Corp. Inc. Neeser Construction Inc. Olgoonik Corp. PenAir Roger Hickel Contracting Inc. Sealaska Corp. Seekins Ford Lincoln Inc. The Eyak Corp. The Kuskokwim Corp. The Superior Group Inc. The Tatitlek Corp. The Wilson Agency LLC Three Bears Alaska Inc. Udelhoven Oilfield System Services Ukpeagvik Inupiat Corp. UNIT Company Usibelli Coal Mine Inc. and Alaska Affiliates USTravel Watterson Construction Co.

30 24 7 37 34 2 20 29 41 46 15 43 9 25 47 32 17 33 28 11 42 35 21 40

127.00 149.50 720.00 94.00 106.00 1,600.00 182.00 133.00 72.30 57.96 223.82 65.52 436.30 149.00 55.00 110.70 205.44 109.00 133.58 270.61 69.00 96.75 174.30 75.00

30 31 7 34 37 3 33 26 45 46 17

117.00 115.57 680.00 110.00 109.00 1,260.00 110.40 135.00 70.10 67.44 196.02

26 35 6

124.00 101.27 780.00

42 23 6

60.00 90.77 740.00

422.90 86.70 55.00 107.50 205.83 111.25 132.13 292.32 59.00 91.46 166.00 90.00

103.29 1,175.50 105.20 82.00 70.10 58.05 125.77 60.40 281.70

29 3 22 34 35 48 13 41

8 41 48 36 15 32 27 9 47 38 20 42

34 3 32 37 40 44 24 42 12

36 20

90.00 159.90

27 8 43 39 17 38

124.42 334.30 59.00 73.12 192.00 78.00

Total Top 49er Gross Annual Revenues in $ Millions

15,243.49

14,548.60

95.80 975.00 130.00 78.48 70.30 44.81 193.97 64.30

18 7 30 26 4 19 32 37 44 15 38

128.15 670.00 85.00 97.00 822.00 148.00 77.00 64.90 50.65 178.60 64.30

33 18

81.20 147.82

48 20

46.00 144.30

27 8 44 37 15 31

106.83 291.00 58.00 66.23 191.00 86.00

29 10 46 39 17 35

91.78 258.80 50.10 60.53 165.00 72.60

13,894.26

11,788.18

9,818.39

Note: Not all Top 49ers displayed for previous years.

'($'+256( $9,$7,21 &(17(5

WƌŽƚĞĐƟŶŐ ĐƵůƚƵƌĂů ǀĂůƵĞƐ

ƚŚƌŽƵŐŚ ŵĞĂƐƵƌĞĚ͕ ƌĞƐƉŽŶƐŝďůĞ ĚĞǀĞůŽƉŵĞŶƚ͘

ZĞŵŽƚĞ DĞĚŝĐĂů ^ƵƉƉŽƌƚ ͻ ǆƉĞĚŝƟŶŐ ͻ ĞĂƌ 'ƵĂƌĚƐ tĞĂƚŚĞƌ &ŽƌĞĐĂƐƟŶŐ ͻ ^ĞĂ /ĐĞ ŶĂůǇƐŝƐ ǀŝĂƟŽŶ tĞĂƚŚĞƌ ^ƵƉƉŽƌƚ ͻ ŝƌƉŽƌƚ ƋƵŝƉŵĞŶƚ &/($5 675($0 //&

www.fairweather.com • (907) 346-3247 www.akbizmag.com • Alaska Business Monthly • October 2011

SERVICES, LLC

101

2011 ALASKA’S TOP 49ERS: SUPERHEROES TOP 49ERS LISTED

SUCCESS

BUSINESS CLASSIFICATION

CLASSIFICATION / COMPANY

2011 Rank

Alaska Jobs

Total Jobs

2010 Rev. $ Million

ALASKA NATIVE CORPORATION

CLASSIFICATION / COMPANY

2011 Rank

Alaska Jobs

Total Jobs

2010 Rev. $ Million

MECHANICAL/ELECTRICAL CONTRACTORS

Arctic Slope Regional Corporation

4,543

11,265

2,331.68

Alcan Electrical & Engineering Inc.

205

58.35

NANA Regional Corporation Inc.

5,000

13,000

1,600.00

The Superior Group Inc.

200

55.00

Bristol Bay Native Corp.

585

1,382.40

405

113.35

Chenega Corporation

305

5,350

1,100.00

Chugach Alaska Corporation

722

5,668

936.98

Afognak Native Corp.

175

5,923

783.00

Doyon, Limited

1,618

2,676

458.60

Usibelli Coal Mine Inc. and Alaska Affiliates

138

96.75

The Eyak Corporation

310

436.30

Mining Total

138

96.75

Ukpeagvik Inupiat Corporation

600

1,900

270.61

Ahtna Inc.

464

2,188

243.00

Calista Corporation

271

1,300

234.87

Sealaska Corporation

580

1,816

223.82

Bering Straits Native Corporation

461

1,053

190.34

Cook Inlet Region Inc.

188.36

Aleut Corporation

590

159.42

Koniag Inc.

645

149.50

The Kuskokwim Corporation

144

149.00

Goldbelt Inc.

187

1,000

139.35

Olgoonik Corporation

105

525

133.00

The Tatitlek Corporation

122

1,900

110.70

Bethel Native Corporation

Alaska Native Corporation Total

100

96.75

16,145

58,019

11,317.66

CONSTRUCTION

Mechanical/Electrical Contractors Total

MINING 35

RETAIL TRADE Three Bears Alaska Inc.

347

396

109.00

Seekins Ford Lincoln Inc.

116

65.52

Anchorage Chrysler Dodge Center

52.30

558

607

226.82

387

106.00

387

106.00

Retail Trade Total

TELECOMMUNICATIONS MTA Inc.

Telecommunications Total

TRANSPORTATION Lynden Inc.

700

2,198

720.00

Carlile Transportation Systems

525

675

137.10

Neeser Construction Inc.

320

325

182.00

HoTH Inc. dba Era Alaska

800

805

127.00

Davis Constructors & Engineers Inc.

175

120.30

PenAir

500

72.30

2,525

4,178

1,056.40

175

174.30

175

174.30

Watterson Construction Co.

75.00

Transportation Total

UNIT Company

69.00

Roger Hickel Contracting Inc.

TRAVEL

Construction Total

57.96

700

706

504.26 USTravel

FINANCE, INSURANCE, REAL ESTATE

Travel Total

UTILITY

Alaska USA Federal Credit Union

1,337

1,615

302.00

The Wilson Agency LLC

205.44

First National Bank Alaska

700

150.93

Chugach Electric Association Inc.

320

258.30

2,056

2,334

658.37

Golden Valley Electric Association

258

220.02

Matanuska Electric Association Inc.

152

94.00

Homer Electric Association Inc.

130

65.24

860

637.56

25,091

69,089

15,243.49

Finance, Insurance, Real Estate Total

INDUSTRIAL SERVICES & SUPPLIES Udelhoven Oilfield System Services

832

877

133.58

Construction Machinery Industrial

109

90.00

Colville Inc.

78.00

Alaska Industrial Hardware Inc.

196

50.43

1,235

1,280

352.02

Industrial Services & Supplies Total

102

Utility Total

TOTAL REVENUE & JOBS REPORTED

www.akbizmag.com • Alaska Business Monthly • October 2011

TOP 49ERS SPOTLIGHT: SUPERHEROES

SUCCESS

Alaska USA Federal Credit Union Diversification, experience key to credit union’s success BY VANESSA ORR

Photo courtesy of Alaska USA Federal Credit Union

ven before Alaska became a state, Alaska USA Federal Credit Union was helping those living on the Last Frontier with their financial needs. Chartered in 1948 at the Alaska Air Depot in Anchorage to meet the credit needs of Department of Defense personnel who had been recently transferred to the state, the credit union has now grown to serve all of Alaska, as well as Washington state and San Bernardino County, Calif. Since its inception, Alaska USA Federal Credit Union and its subsidiaries have grown to include more than 1,300 full-time Alaska employees and close to 1,600 systemwide employees. Consolidated gross revenues in 2010 were $302 million, of which $265 million came from the credit union.

SOMETHING FOR EVERYONE “Alaska USA strives to provide its members with a comprehensive package of financial services that provide real value and convenience on a consistent basis year-over-year,” said William B. Eckhardt, president, Alaska USA, of the company’s growth. Alaska USA offers financial products and services, including checking and savings, consumer loans, credit cards, mortgage and real estate loans, business depositary services and commercial loans, business and personal insurance, trust services and real estate loans. The company also provides real estate title and escrow services. As the first financial institution in Alaska to launch a call center, Alaska

104

Alaska USA Federal Credit Union President William B. Eckhardt.

USA paved the way for credit unions nationwide to take this innovative approach. Originally located in Denver, Colo., to effectively serve members who transferred out of Alaska, the

Member Service Center is today located in Anchorage where it provides toll-free telephone processing of members’ information, service and transaction requests.

www.akbizmag.com • Alaska Business Monthly • October 2011

GOOD CHOICE There are numerous advantages to becoming a member of Alaska USA. “As a not-for-profit, member-owned financial services cooperative, credit union earnings are returned to memberowners and not to shareholders,” explained Eckhardt. “This allows credit unions to provide many free and lowcost services, higher dividends on savings and low loan rates.” Anyone who lives or works in Alaska can become a member of the credit union. Most recently, Alaska USA has expanded its services to provide members with mobile banking and online wire services, including Money in Minutes, VISA platinum credit card e-statements, e-notices, online consumer loan applications, online loan payments, scan deposits at ATMs, ATM preferences, streamlined mortgage applications and single sign-on for ScoreCard Rewards. The credit union also has expanded real estate title and escrow locations to Fairbanks and Juneau.

WIRED FOR BUSINESS “Technology has opened the door to new non-traditional payment system providers,” said Eckhardt of the credit union’s foray into mobile and online services. “The changes in technology, security and regulations are evolving at a very rapid pace. Alaska USA’s investment in its people, systems and software has allowed us keep pace with the evolution in each of these areas.” Despite the tough times that financial institutions and their customers have recently faced, Alaska USA has helped its members to successfully weather the turbulent economy. “Alaska USA has a long history and successful record of helping members through difficult times and operating in a recessionary economy,” said Eckhardt. “Alaska USA is uniquely positioned to do so because of its strong balance sheet, membership diversification by geography and industry, experienced management and staff, significant earnings capacity and diversified business activities.” These business activities operate as subsidiaries of the credit union and include Alaska USA Insurance Brokers, Alaska USA Mortgage Co., Alaska USA Title Agency and Alaska USA Trust Co. In addition to competition increasing www.akbizmag.com • Alaska Business Monthly • October 2011

105

within and outside the industry, Eckhardt sees the credit union facing a new challenge in the next couple of years. “Increasing federal regulations will impact all financial institutions,” he explained. “Alaska USA business operations will face significant additional costs to comply with the Dodd-Frank Financial Reform Act.” The Dodd–Frank Wall Street Reform and Consumer Protection Act was a signed into law by President Obama on July 21, 2010. The Dodd–Frank Wall Street Reform and Consumer Protection Act was a signed into law by President Obama on July 21, 2010. The goal of the act is to promote the financial stability of the United States by improving accountability and transparency in the financial system; to end “too big to fail,” a theory that states certain banks and credit unions are so interconnected and large that failure would drastically impact the economy; to protect the American taxpayer by ending bailouts; and to protect consumers from abusive financial services practices.

GIVING BACK In addition to helping its more than 300,000 members with their financial needs, Alaska USA and its employees have a long-standing history of community involvement and charitable contributions. The Alaska USA Foundation, established in 2003, raises funds for 501(c)(3) charitable organizations that provide needs-based services to children, veterans and active duty members of the armed services and their families. In addition, Alaska USA and its employees regularly participate in community events with local and national organizations such as Habitat for Humanity, Armed Services YMCA and Big Brothers/Big Sisters. Now in its 63rd year, Alaska USA Federal Credit Union continues to uphold the commitment it made to newcomers to the state so many years ago. “Diversification by business line and geographically, a conservative fiscal approach, and a commitment to service excellence have been the keys to the longevity and success of Alaska USA,” ❑ said Eckhardt.

106

www.akbizmag.com • Alaska Business Monthly • October 2011

Ä?Ä°ÄŽÄ¤ÄŠÄ ÄŽÄŽ ÄŤÄÄŞÄĄÄ¤Ä§Ä

Wolk & Associates Â&#x17D;Â&#x192;Â&#x2022;Â?Â&#x192; Â&#x201D;Â&#x2014;Â&#x2022;Â&#x2013; Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x203A; Â&#x201D;Â&#x2018;Â&#x2DC;Â&#x2039;Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x2018;Â?Â&#x2019;Â&#x17D;Â&#x2021;Â&#x2013;Â&#x2021; Â&#x201D;Â&#x2014;Â&#x2022;Â&#x2013; Â&#x192;Â?Â&#x2020; Â?Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x2013;Â?Â&#x2021;Â?Â&#x2013; Â&#x2018;Â&#x17D;Â&#x2014;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022;

Â&#x2026; %JTKU #TGPF 2JQVQITCRJ[

laska Trust Company isnâ&#x20AC;&#x2122;t the average trust, investment management and financial planning firm. The Anchorage-based company maintains a nimble, adaptive stance that completely caters to clientsâ&#x20AC;&#x2122; needs. Consequently, it offers more personalized and customized services than the typical big bank, according to Trust Officer Matt Blattmachr. â&#x20AC;&#x153;We try to be very flexible,â&#x20AC;? he says. â&#x20AC;&#x153;We keep ourselves easy to work with and innovative.â&#x20AC;?

6TWUV 1HÄ EGT /CVV $NCVVOCEJT %(2 Â&#x160; #NCUMC 6TWUV %QORCP[

2JQVQ Â&#x2026; $TCF -GXGNKP

grating the research of top-tier managers. â&#x20AC;&#x153;Whether your account is in a trust, IRA, or brokerage-type account, Alaska Trust Company will customize it to your needs using a UMA approach,â&#x20AC;? says Chief Investment Officer Lisa Russell.

%JKGH +PXGUVOGPV 1HÄ EGT .KUC 4WUUGNN %(#Â&#x160;

In fact, innovation is a key component of the companyâ&#x20AC;&#x2122;s success. Established as the stateâ&#x20AC;&#x2122;s first independent trust company in 1996, Alaska Trust Company was instrumental in the creation of the 1997 Alaska Trust Actâ&#x20AC;&#x201D;whose laws have been applied to more than a dozen other states. The company remains on the leading edge by constantly expanding its service offerings and using a think-tank of estate planning advisors to work on enhancing existing laws. Alaska Trust has differentiated itself by its expertise, adaptability and customercentered service. It employs a distinctive approach to investment management by using a Unified Managed Account (UMA) to assist clients. A UMAâ&#x20AC;&#x201D;a professionally managed account that can encompass every asset class and investment styleâ&#x20AC;&#x201D;allows clients to receive comprehensive asset allocation and superior diversification while inte-

JUST FOR YOU One of the benefits of a UMA is that it enables Alaska Trust to custody the assets so there are no funds being sent directly to outside money managers. It provides access to top-tier money managers in every asset class that most people cannot access due to their steep minimum investments or because they are closed. UMA also can minimize the tax implications of investing using overlay software, as well as help control turnover and implement taxloss harvesting, which studies have proven can greatly increase the net return to the client.Â Furthermore, UMA allows for client mandates and restrictions such as socially responsible investing, legal restrictions on stock purchases, legacy low-basis holdings, tax budgeting, and specific views on sectors. Alaska Trust offers an array of financial solutions in an unbundled structure. Because the company doesnâ&#x20AC;&#x2122;t have proprietary products, its clients can count on receiving unbiased recommendations. Alaska Trust prioritizes the needs of clients and customizes every portfolio to what they wantâ&#x20AC;&#x201D;not what is best for the company. â&#x20AC;&#x153;Your portfolio does not ÄŤÄ&#x153;Ä¤Ä&#x; Ä&#x153;Ä&#x;ÄąÄ ÄÄŻÄ¤ÄŽÄ Ä¨Ä ÄŠÄŻ

just get put into a generic model,â&#x20AC;? Russell says. â&#x20AC;&#x153;The bottom line is the client will always come first.â&#x20AC;? EXPANSION IN WORKS As part of its commitment to put clients first, Alaska Trust is constantly making enhancements. The company is also looking to become more involved in the community. It currently supports a number of charitable organizations, including the Anchorage Senior Activity Center. Alaska Trust Company serves a broad range of clients, from those with a high net worth to those who need help managing their IRA. Alaska Trust Company has management authority of over $1 billion of assets and serves a broad range of clients. Regardless of their size, all clients receive the same level of superior service.

Ć&#x17E;Č˝É&#x20AC;Î&#x17D;ČťČ˝É&#x20AC;ČłÎ&#x17D;ČˇČźČ´Č˝É&#x20AC;ČťČŻÉ&#x201A;ČˇČ˝ČźÎ&#x17D;ČąČ˝ČźÉ&#x201A;ČŻČąÉ&#x201A; Ć&#x2122;ČşČŻÉ ČšČŻÎ&#x17D;ĆŹÉ&#x20AC;É&#x192;É É&#x201A;Î&#x17D;Ć&#x203A;Č˝ČťČžČŻČźÉ&#x2021; ĆĽČŻÉ&#x201A;É&#x201A;Î&#x17D;Ć&#x161;ČşČŻÉ&#x201A;É&#x201A;ČťČŻČąČśÉ&#x20AC;Ë´Î&#x17D;Ć&#x203A;Ć&#x17E;Ć¨ĚŹ ĆŹÉ&#x20AC;É&#x192;É É&#x201A;Î&#x17D;Ć§Ë&#x17E;ČąČłÉ&#x20AC; Ě°ĚŻĚąĚ¸Î&#x17D;ĆŻËˇÎ&#x17D;ĆŹČśČˇÉ&#x20AC;Č˛Î&#x17D;Ć&#x2122;É&#x201E;ČłČźÉ&#x192;ČłË´Î&#x17D;ĆŤÉ&#x192;ČˇÉ&#x201A;ČłÎ&#x17D;ĚłĚŻĚŻ Ć&#x2122;ČźČąČśČ˝É&#x20AC;ČŻČľČłË´Î&#x17D;Ć&#x2122;ČşČŻÉ ČšČŻÎ&#x17D;Ě¸Ě¸Ě´ĚŻĚ° Ć¨ČśČ˝ČźČłËśÎ&#x17D;Ě&#x161;Ě¸ĚŻĚśĚ&#x203A;Î&#x17D;ĚąĚśĚˇËšĚľĚśĚśĚ´ Ć&#x17E;ČŻÉ&#x2020;ËśÎ&#x17D;Ě&#x161;Ě¸ĚŻĚśĚ&#x203A;Î&#x17D;ĚąĚ´ĚˇËšĚ°ĚľĚłĚ¸ ĆŻČłČ°É ČˇÉ&#x201A;ČłËśÎ&#x17D;É&#x2026;É&#x2026;É&#x2026;ËˇČŻČşČŻÉ ČšČŻÉ&#x201A;É&#x20AC;É&#x192;É É&#x201A;ËˇČąČ˝Čť

TOP 49ERS SPOTLIGHT: SUPERHEROES

SUCCESS

Goldbelt Inc. Targeting shareholder development BY TRACY KALYTIAK

ineteen years ago Gail Dabaluz found a job working as a receptionist for Goldbelt Inc., a Juneau-based, timber-focused Alaska Native corporation in which she was a shareholder. After a year, Dabaluz left to work for the City of Juneau. She went on to earn a bachelor’s degree in cultural

108

anthropology, entered into federal contracting with the Bureau of Indian Affairs, worked as a grant manager for the State of Alaska and earned a master’s degree in rural development. While Dabaluz was away, Goldbelt changed. It shifted its emphasis from timber to real estate to tourism and then to government-contracting opportunities.

Those promising new opportunities drew Dabaluz back to Goldbelt, and now her career is in high gear. Dabaluz began working as a technical writer earlier this year, transitioning into a mid-career management trainee for a Goldbelt-sponsored, motor-vehicle sales and leasing contractor, and now is poised to start a full-time job with Goldbelt’s Wolf division in Virginia. “The management trainee position was perfect for where I was personally and professionally,” Dabaluz said. “I’m really happy the board and executive management think outside the box to try and place shareholders in 8(a) corporation opportunities. I haven’t heard of other Native corporations that have a mid-career development program. There’s some capital that needs to be had to fund them, and that comes from the 8(a) companies.” Goldbelt is named after a richly mineralized zone in Southeast Alaska stretching along the mainland from Frederick Sound on the south to Berners Bay on the north – an area encompassing Goldbelt’s land holdings, which include property in Hobart Bay, West Douglas and Echo Cove. The Alaska Native corporation, founded in 1973 and incorporated Jan. 4, 1974, was organized under the terms of the 1971 Alaska Native Claims Settlement Act (ANCSA) and currently has 3,451 shareholders. The total value of its assets is $83,650,627, according to Goldbelt’s 2010 annual report, which also stated that Goldbelt ended the year with a net income of $2.41 million. Its primary business activities are Small Business Administration 8(a) government contracting, tourism and lands development. Goldbelt employs approximately 200 people in Alaska and 1,300 people outside the state.

Goldbelt Inc. operates the Goldbelt Hotel (upper right white building) in Juneau as part of its tourism endeavors. www.akbizmag.com • Alaska Business Monthly • October 2011

Elliott “Chuck” Wimberly, president and chief executive officer, says Goldbelt’s goal is to develop projects and businesses in Southeast Alaska that create job opportunities for Goldbelt shareholders and other Alaska Natives. “Tourism, back on the rise after the reduction in the head tax, has steadily provided seasonal jobs for our shareholders,” he said. “However, we are looking at ways to expand our Alaska operations that will provide more yearround employment opportunities.”

CAREER ADVANCEMENT In 2009, Wimberly said, Goldbelt launched a comprehensive career development program that provides professional training opportunities for its shareholders, including internships for traditional college students, hands-on training for vocational students and programs for mid-career professionals seeking opportunities with its 8(a) companies. “Some of the other avenues we are exploring include telecommuting, which is one example of using technology in innovative ways that will eventually create jobs in Southeast while supporting existing federal government contracts,” Wimberly said. “Our vision of the future includes an ongoing expansion of our federal contracting footprint and an aggressive expansion of our nongovernment-related business in Alaska.” Michaela Goade, 21, a graphic design and marketing student at Fort Lewis College in Durango, Colo., is reaping experience through a 12-week internship the corporation offers to its shareholders. She learned about the paid internship through announcements sent to shareholders by LisaMarie Ikonomov, Goldbelt’s director of shareholder services and corporate communications. Ikonomov assisted Goade and other interns by creating marketing and shareholder-outreach materials and by providing networking and weekly career-development workshops. “I applied for an internship with Sealaska but Goldbelt was just really on it,” Goade said. “We all heard back within a week. You can tell you’re wanted, from the beginning. It’s wonderful we can work with our Native corporation and also have money for school.” www.akbizmag.com • Alaska Business Monthly • October 2011

109

Goldbelt Inc. operates the Mount Roberts Tramway in Juneau as part of its tourism endeavors.

PARTNERING EFFORTS Goldbelt extends opportunities to Alaska Native contractors and generates jobs for its shareholders. Frank Watson, who belongs to the Beaver Clan and is a Sealaska shareholder, was raised in Juneau. When he was in high school, he discussed with recruiters the possibility of going into the military and, after taking the placement exams, qualified for advanced electronics programs in the U.S. Navy. He enlisted as a data systems technician with a six-year obligation, departing for boot camp a week after graduating from high school. While serving aboard the USS John C. Stennis aircraft carrier, he worked on the shipboard IT systems. Eight years later, after leaving the military, Watson ended up in Washington, D.C., working with some former military colleagues at an IT-consulting company with work at the Pentagon and other government customer sites. Watson’s employer provided mentoring as he prepared to launch his own company, Nisga’a Data Systems, which began operating full-time in October 2008. NDS provides IT services and project consulting to federal clients. “I found I had a knack for business development and team building, which, in this business, is a good combination,” Watson said. “Starting NDS was my first venture into small business. My approach to starting this was to get the right people involved from the ground up.” Once Watson made the decision to start an 8(a) company, he contacted the local Alaska Native corporations

110

in Juneau regarding the potential business venture. “I had several calls with the former CEO of Goldbelt Inc., Gary Droubay, and then flew out in March 2009 to present my business plan to him and the board of directors,” Watson said. “Within months after that we finalized our partnership agreements and our startup was under way.” NDS builds data centers, systems and applications that support the federal government, including U.S. troops both in-country and overseas. “A majority of our business is around virtualized infrastructure, disaster recovery and continuity of operations,” Watson said. Goldbelt Inc. owns 70 percent of NDS and provides all backoffice accounting and human resource functions as a fee-for-service operation. “Having Goldbelt Inc. handle all of the accounting and back office allows Goldbelt Inc. to help keep a view into its subsidiary on behalf of the Goldbelt Inc. shareholders, and allows me to focus on growing the company,” Watson said. “My goal as the (NDS) president and CEO is to build the company to a certain point that growth and management become self-sustaining. At that point I can work with Goldbelt Inc. on the next startup and do it all over again. Being in a business partnership with a large company such as Goldbelt Inc. helps take my startup and instantly moves us into the big leagues with assisting on credit facilities and overall financial backing. Having a large company involved increases our buying power, which helps ❑ us get into the bigger deals.”

www.akbizmag.com • Alaska Business Monthly • October 2011

Spirit Cultural pride, corporate excellence. 194 Alimaq Drive, Kodiak, AK 99615 I (907) 486-2530 phone I www.koniag.com

TOP 49ERS SPOTLIGHT: SUPERHEROES

SUCCESS

MTA Inc. Providing Internet, TV and telephone access to rural Alaskans BY VANESSA ORR

s the first communications company to provide telephone service north of Anchorage, MTA has long been known for its ability to push the limits of technology to bring services to its members. Covering a geographical area of more than 10,000 square miles, the Alaskan-owned cooperative is continuing in its quest to provide residents in the state’s more out-of-the-way areas with the most advanced telephone, Internet and television services available. Established in 1953, this Top 49er company serves members from Eagle River and Tyonek to Clear Air Force Base outside Anderson to the Matanuska Susitna Valley. It provides local, wireless, long distance, business, Internet, digital TV, directory and television advertising and TechExpress IT Business Support. “As a cooperative, MTA operates under a business model completely different from our competitors – our customers are our owners,” says Chief Executive Officer Greg Berberich. “MTA is a nonprofit association, run for the benefit of our member/owners so that members can receive state-of-theart, high quality products and services at a competitive price. “We are guided by community values rather than stock market reports, and these values held us steady throughout the economic turmoil which shook the foundations of so many businesses across the country and around the globe,” he added. In 2010, the company earned $106 million in revenue, and invested nearly $20 million in expanding and maintaining its network. MTA employs 387 people with an annual payroll of $26 million, and additionally spent more than $19

112

Greg Berberich Chief Executive Officer MTA Inc.

million with local and Alaskan vendors. “We do not provide dividends, however, when we have positive margins we do return money to our members in the form of capital credits,” said Berberich of how the cooperative works. “This past year alone, we distributed more than $2.6 million in

capital credits to our member/owners, all while reducing our long-term debt.”

KEEPING ABREAST OF TECHNOLOGY Despite living in some of the state’s more rural areas, MTA members still receive cutting-edge services from Alaska’s technology leader. “MTA

www.akbizmag.com • Alaska Business Monthly • October 2011

has always embraced the challenges of serving our members in very rural, high-cost areas and continues to bring innovation and advanced services to as many of our members as is feasible,” said Berberich. “Our broadband network reaches 98 percent of our customers, and we have expanded our fiber backbone and leveraged the capability of our copper facilities through the deployment of bonding technology, which allows us to reach over 70 percent of our customers with speeds up to 30 mgs.” MTA also was the first communications company in Alaska to deploy digital television over a telephone line. Berberich credits the company’s employees with MTA’s success. “Our employees are highly skilled and are constantly pushing the limits of the network and technology to deliver services to our members,” he said. “They work hard to create a customer experience that only a locally owned company can provide.” MTA and its employees also play an integral part in the communities they serve through volunteer work, donating time and money to more than 140 nonprofit organizations. “With the support and generosity of our employees, MTA has become the single largest supporter of the United Way of Mat-Su for many years,” said Berberich. “Our employees take great pride in serving their community as dedicated volunteers to many organizations.”

WHAT THE FUTURE HOLDS As the communications industry continues to evolve, so do the challenges facing those who provide rural telecommunications services. “Our industry is facing dramatic changes: competition, wireless, Internet and new technologies have changed the way people communicate,” said Berberich. “The traditional regulations and cost-recovery mechanisms we are so dependent upon were developed under a different paradigm and are no longer sustainable.” Two of MTA’s traditional sources of revenue – Universal Service Funds (USF) and Access – are currently undergoing reform, which Berberich says will have a significant impact on MTA and its ability to continue to deliver products and services to its members.

Currently, USF and Access revenues comprise almost 50 percent of MTA’s total revenues, which have been declining. “This, combined with the regulated revenues lost since the inception of competition in local service has compelled MTA to vigorously manage our costs and carefully evaluate any new investments in our network,” said Berberich. In 2010, the FCC published a National Broadband Plan and initiated rulemaking proposals for reform for both USF and Access. “What I can tell you is that the proposed rules being discussed are alarming for our company and rural America in general,” said Berberich. “They put at risk the ability of MTA to recover the costs associated with the investments we have already made. They set a very low standard of broadband speeds for rural areas as compared to urban areas. And they provide no clear vision or certainty of cost recovery for any new investment as the needs and demands of our customers change.” MTA continues to be active in its advocacy at the Federal Communications Commission (FCC) and with Alaska’s congressional delegation about the impacts that the proposed rules will have on the rural Alaska. “I would like to compliment our congressional delegation of Senator Begich, Senator Murkowski and Congressman Don Young for being engaged and providing the leadership and support we need as this process goes forward,” said Berberich, adding that he has encouraged MTA members to contact the delegation in support of MTA and the rural communities of Alaska. “There is not a rural company in the nation that can sustain the provision of universal service in the communities we serve if we have to rely exclusively on what our customers pay for the services we provide. This is why Access charges and the USF exist, and this is why they are vital to our company and to our member-owners,” said Berberich. While working to find a solution, MTA plans to remain focused on what they do best – delivering high quality products to meet members’ current communications and entertainment needs, while preparing and planning ❑ for the future.

www.akbizmag.com • Alaska Business Monthly • October 2011

113

TOP 49ERS SPOTLIGHT: SUPERHEROES

SUCCESS

Roger Hickel Contracting Smoothing the road for owners BY GAIL WEST

114

olding the reins steady for a company that does approximately $60 million a year in gross revenue can’t be an easy job, but the president and chief operating officer of Roger Hickel Contracting Inc. does just that. Mike Shaw, who joined the company in 2004 and was promoted into the top spot in 2010, said his goal in that position is “to make owners’ jobs easier when they hire us.” That way, he continued, “they’ll want to hire us again. “We have a very good reputation as design/builders and as a general contractor,” Shaw said, “and we have several repeat clients. We’re also a company in transition. Many of our longterm employees are moving toward retirement and we’ve brought in good, young project managers and superintendents to make the transition easier.” In addition to keeping the company in good standing with clients, Shaw said it’s important to invest in employees. “We believe our people are our greatest asset, and the biggest challenge we face right now is the economy. It will be a challenge to keep our core people working until the private/public markets come back.” The company, however, isn’t in a wait-and-see mode. While the economy is still a bit stagnant, RHC has recently completed a $20 million, 28,030-square-foot, state-of-the-art police station for Kodiak. The new building houses public and administrative areas, evidence areas, locker rooms and an emergency operations area and is LEED certified. Two additional projects were the installation of the South Anchorage High School football-field turf, to reduce maintenance and reduce

Begich Middle School.

sports’ injuries, and Huffman Elementary School site improvements. “We’ve also recently finished the new Doyon headquarters building for Grayling Development – a subsidiary of CIRI,” Shaw said. “It was a great project, and we exceeded our goal for Alaska Native hire by nearly 10 percent.” Current projects include the foundation for the new joint Chugach Electric Association and ML&P Southcentral power project at Chugach’s headquarters’ complex in Anchorage for $15 million. In this project, RHC is a subcontractor to SNCLavalin, prime contractor. RHC is also working on the new $6.3 million Glenn Olds Hall expansion at Alaska Pacific University and the pedestrianbridge replacement at the Anchorage State DOT&PF aviation building – a $450,000 project.

HEALTH CENTER One of RHC’s primary projects today is the Anchorage Neighborhood Health Center, a $16 million, 42,000-squarefoot primary care facility with an outpatient clinic, pharmacy, laboratory, imaging, dental, behavioral health counseling and administration facilities. This center is scheduled for completion in August 2012. Joan Fisher, strategic initiatives director for the health center, said RHC was selected based on the company’s qualifications. “One of the best things we found in going through those qualifications,” Fisher said, “is that this company is well known for their dirt work. They do their own where others will bid that part out.” Fisher said the health center site required a lot of site preparation, and RHC brought in 55,000 tons of gravel a year in advance of actual construction to drain and stabilize the site.

www.akbizmag.com • Alaska Business Monthly • October 2011

Fish Creek/Cuddy Family Park.

District, the Municipality of Anchorage and Anchorage Water and Wastewater Utility and it’s responsible for about 30 percent of our revenue.” That division has recently completed improvements in Cuddy Family Midtown Park and East 88th Avenue rehab work, Shaw added. “Our diversity gives us a competitive edge.” RHC also has recently contracted to build a new four-story building for Three Cedars LLC on Gamble Street in Midtown, to be completed in June 2012. Although most of the work RHC has completed is in Anchorage, Shaw said the company has done work in other Alaska communities. This past spring, RHC completed the Kenai

“We also brought them in early to work with the architect,” Fisher added. “They’ve done quite a bit of design/ build work, so they could help keep costs down. “The building is going up now and the staff is getting excited. Everything is on schedule and we should be moving into the new building next August. RHC has been excellent in working with us.” The largest construction job RHC has completed to date, Shaw said, was the $32 million Begich Middle School in east Anchorage. “It was our first large, public contract,” Shaw said, “and it was supposed to be completed in two years. We turned it over in 18 months. Everything went well, and that helped move us more solidly into the public market.” Shaw added that during the bid process, his company determined they wouldn’t need the two years allotted for construction so they made the shorter time commitment, “and that put the pressure on us a little bit,” he said. Begich Middle School is a 174,000-square-foot, two-story building that sits on a 30.5-acre site along Chester Creek. According to the Anchorage School District website, the building is a state-of-the-art design that features the latest technology and a fully equipped science lab. “We’re one of few contractors in Anchorage that do both horizontal and vertical work,” Shaw said. “We have a civil division that works with Alaska’s DOT, Anchorage School

Kodiak Police Station.

WalMart store – a $28-million project. “We’ve also built the Home Depot in Juneau and done quite a bit of work in Fairbanks for Home Depot, Lowes, Food Services of America; and we built a $20 million commissary for AAFES at Eielson Air Force Base and completed an $8 million remodel of the commissary at Fort Wainwright,” he said. RHC was created in 1995 when Roger Hickel left Baugh Construction, where he’d worked for more than 20 years, to form his own company. Today, RHC employs about 35 fulltime employees and brings on an additional 115 to 120 during the summer construction season. “We have the next generation of Hickels coming up, too,” Shaw said. “Sean Hickel, Roger’s son, has been with us a little more than a year now and is a project engineer.” Over the years RHC has been in business, the company has accumulated an impressive array of awards for its work. Most recently, RHC was awarded the 2010 American Public Works Association Excellence in Construction Performance award for the Anchorage ML&P building upgrades, the 2010 AGC Excellence in Construction award for two projects – Mears Middle School site improvements and the new Walgreen’s building at Dimond and Creekside in Anchorage. RHC has also been named to this magazine’s Top 49er’s List every year ❑ for the past nine years.

www.akbizmag.com • Alaska Business Monthly • October 2011

115

GENERAL

Best Workplace Practices Retain those employees with leadership that works

Photo by Simone Lange

BY HEIDI BOHI

Premier Alaska To Tours’ rs’ 2011 to tourr director and dri driver er team training training.

ost managers reading this article likely tell anyone who asks that their employees think the workplace they oversee is one of the best. Most of these same employees will tell them they are dead wrong. In fact, what employers think matters most in a workplace, and what the workerbees say actually makes them happy, when lined up side-by-side, are completely flip-flopped.

116

What do employees say makes a good workplace? In a landmark study conducted by the Hay Group, a global management consulting firm known for its research on the best companies to work for, 500,000 employees in 30 companies were surveyed. Participants were asked to prioritize retention factors. While employers listed pay at the top of the list, employees said that if a company pays a fair

market wage, salary consistently ranks toward the bottom of what’s most valued by employees in their relationship with their employer. The ability to learn and grow in their jobs, do challenging and meaningful work, feel like they are a valued team member and be recognized for their contributions are some of the top priorities. Others include feeling in control of their work, and having flexibility in their hours and dress.

www.akbizmag.com • Alaska Business Monthly • October 2011

This understanding is important for managers to apply because while they may not have the final say on employee compensation, they can control what matters to them and what will keep them from leaving. Pearson points out, too, that it takes 8 percent of an employee’s salary to effect behavioral change in the workplace – it costs nothing to recognize a job well done and it pays out even greater results.

TEAMS WORK Every May as the visitor industry season kicks off, Peter Grunwaldt, chief executive officer of Premier Alaska Tours, has a barbecue at his house for employees and their families. His wife and mother make the side dishes, his father mans the grill. “We start the year off with a team that knows this is not just a summer job – it really is a big, extended family,” he says. Despite the fact he’s the boss, once the season is in full swing, it’s not uncommon to see him giving a tour,

Photo by Michael Dinneen

‘AWARENESS’ “It’s all about awareness, caring by the manager, and them understanding employees are not just there for the paycheck,” Tim Pearson, an Anchoragebased executive and professional coach says, citing the adage, “Employees don’t leave companies, they leave managers.” The manager’s role is to create an atmosphere that makes that happen and two-way communication is a big part of it, Pearson says. “We learn to communicate, but never learn to listen. It’s all about awareness and understanding that has human beings we want to do something deeper and more significant.” But it’s not just about being warm and fuzzy. The best workplaces understand happy employees stay, and retention is critical for sustaining growth in the marketplace. A standard industry statistic says if an employee leaves within three months of being hired it costs 1.5 times their salary regardless of the reason, though depending on the position and length of employment this may be higher. Although most companies pay attention to retention when turnover starts to increase, savvy managers will make it a core element of their talent management and organizational development strategy so they do not lose their top talent to the competition.

Bill Spindle, UAA’s vice chancellor for administrative services.

washing a bus, loading and unloading luggage, or having lunch in the conference room with a dozen employees, a daily occurrence and one way that adds to productivity and helps keep everyone happy. “We don’t need to do a survey or team-building exercises, because we do it on a daily basis – I spend time with them on the concrete,” Grunwaldt says of this “top-down” approach to management, adding that he doesn’t even like to refer to staff as employees because “we’re all part of the same team.” Besides just being a good guy, Grunwaldt understands a happy workplace affects his company profits in several ways. Because most positions at the company are seasonal and the average pay is only $15 an hour for front-line staff, he and his partners are committed to making sure everyone enjoys the work and feels valued so they return every year. He recognizes employee retention is critical to reducing training costs, improving the quality of the tours his company offers, and contributing directly to client retention. Experienced motorcoach drivers also mean fewer accidents and repairs to the vehicles because they know the equipment. “If they aren’t having fun, the guests aren’t having fun,” Grunwaldt says. “We run the company from a service standpoint, not an accounting standpoint, because that’s the business we’re in.”

PRIDE IN OWNERSHIP At the same time, he says it’s important employees take pride in ownership and have autonomy, so they have the freedom to do things like buy 54 passengers an ice cream cone on a hot day. “Employees who are engaged and enjoy their work are our greatest company asset. Because our employees believe in the company, we actually you get more from them than we give,” he says. As someone who is hired by Alaska companies to help transform bad workplaces into good by giving managers tools to stop high turnover rates, Pearson says although the idea of “engaged” employees has only recently emerged as a topic, “It has gotten worse as an issue.” Based on national averages, 19 percent of employees nationwide are completely disengaged from their work, 64 percent are moderately engaged, and only the remaining 17 percent are highly engaged, according to Towers Watson, a global human resources consulting firm that helps organizations improve performance by developing effective people. Another frightening indicator of this statistic, Pearson says, is that it means there is always the risk of those who are happy going down with the ship. For the person who is happy and engaged, “It’s like swimming in molasses,”

www.akbizmag.com • Alaska Business Monthly • October 2011

117

Photo courtesy of the Nerland Agency

The whole team at La Mex for Nerland’s 2010 Holiday Party.

because they are surrounded by cynical co-workers and the workload that is not given attention by disengaged staff trickles down to them, resulting in burnout and perpetuating the cycle. And, Pearson says, he suspects engagement levels in the workplace are actually much worse than reported, based on his professional experiences.

POSITIVE? OR NOT? “As Americans, we tend to spin things toward the positive. When asked how things are, by habit we say, ‘fine,’ because it’s much easier than dealing with a messy situation, or listening to problems we can’t do anything about,” Pearson says. Happy employees seldom happen by chance. Just as there is a direct correlation between strong managers and

has almost no turnover. As he transitions out of the agency after selling it to its employees, his legacy lives on through a dedicated staff and Karen King, president, is now responsible for day-to-day operations. Having good bosses throughout her career, and benefitting from a Midwestern upbringing based on the golden rule of “do unto others as you would have them do unto you,” is part of what helps her maintain the workplace culture. Nerland, though, has likely been her biggest mentor in management. “Rick was a good leader because he knew when to be generous and where it counted in a real way,” she says, adding that he is also known for his mentorship throughout the community. The agency has always been known in the advertising industry as one of

The agency also demonstrates leadership by investing in staff to help them develop skills in areas they are interested in, or show a natural talent for. engaged staff, good leaders have likely had good mentors in the past and interestingly, Pearson says, studies show they also likely had parents who gave praise and recognition. Rick Nerland, CEO and founder of Nerland Agency, is undeniably the cornerstone example of leadership behind this 25-employee agency that

118

the most sought after places to work, though King says only recently has she and her team formalized its beliefs and behaviors as an organization. The agency’s brand strategy is to consistently act “smart,” “fresh” and “true,” words that capture its resourcefulness, creativity and integrity and reflect the company atmosphere and energy.

To arrive at these character traits, the agency went through the same discovery exercise it would to market any of its clients. “It’s living what we are marketing. Successful companies take actions based on looking through the lens of their brand,” King says. To help maintain its workplace culture, a company-wide survey is conducted annually and the results are shared openly with everyone. It is a way to identify and improve upon what she calls “worry spots,” or at the very least it lets managers know they need to do a better job of communicating in certain areas. Although the top management does not share everything with employees, King says the company includes staff in as many discussions as possible, recognizing that this type of involvement is one of the things that matters most to them. “It is important to us everyone feels like they are in the loop, that they can have an impact, and they are respected enough to be trusted with that information,” King says. A creative environment, undertaking meaningful work they take pride in, and always looking for ways to improve – these are a few of the core values employees agree contribute to making Nerland Agency one of the best workplaces in the state. At the same time, King says, everyone genuinely respects and cares for each other and they look forward to participating in agency social activities together, as well as spending time together outside of the office. The agency also demonstrates leadership by investing in staff to help them develop skills in areas they are interested in, or show a natural talent for. Besides contributing to employee retention, this camaraderie means the entire staff pulls at least their fair share of the workload. It’s why, too, she says, managers invest in hiring people with a good personality fit for the agency’s brand. “It’s important, but it doesn’t mean we’re all the same,” she says. “We hire good people who bring new skills to the agency and who also have high standards and expectations and a real sense of fun. It makes for great teamwork and ❑ bonds co-workers as friends.”

www.akbizmag.com • Alaska Business Monthly • October 2011

H R M AT T E R S

BY LYNNE CURRY

Tragedy Strikes the Workplace Reaching out to grief-stricken employees

REACH OUT When tragedy befalls an employee, most of us don’t know what to say. As a result, we often say nothing. This creates a complete disconnect between the individual for whom everything has changed and his workplace, which today may represent the grieving employee’s extended family. Reach out to your employee, letting him know that you care and stand by him. Start with a simple statement such as “I am so very sorry.” Then, give your grieving employee all the kindness you can – including leaving him alone if he shows he needs that more than sympathy. Because no two grieving individuals handle tragedy similarly, take your employee’s lead in deciding what to do.

PREPARE AND ALLOW FOR EMOTION Grief creates a tide of emotions. Your employee may fall apart and needs your understanding. Your employee may descend into despair or flash out in anger. At the same time, as a manager you may need to set boundaries such as “maybe you’d better take a personal leave day.” One person’s grief also touches off sorrow in others. Because action helps ease this, co-workers may find it helpful to make concrete gestures that help their grieving co-worker – from donating paid time off to his account to signing a condolence note.

BE REAL; ALLOW OTHERS TO GIVE SIMPLE ACTS OF KINDNESS Statements that minimize your employee’s overwhelming grief such as

“You’ll get over it before you know it” backfire because they fall short when placed against tragic reality. Unless you truly do, avoid “I know just how you feel.” Similarly, mouthing the cliché “Let me know if I can do anything” does little for either person. Few grieving individuals can respond to an openended “you tell me what you need.” Instead, those struck numb by grief rely on compassionate employers and coworkers to offer help in a way that lets them know they can ask for what they need. Helpful acts of kindness include offering to bring meals, take care of yard duties, or walk the dog, you say with word and deed, “I know you need time to heal. You have my support.”

ragedy hands managers a hot potato, one few feel equipped to handle. How do you reach out to an employee who loses a loved one?

MANAGEMENT REASSURANCE Managers can reassure grief-stricken employees by letting them take time off without jeopardizing their jobs. Those who return to work before they can concentrate often make things worse for themselves and hard on their co-workers. You additionally help the employee by subdividing his work into three categories – time sensitive matters, work that can be tabled for a short time, and routine tasks. You may need to handle time-sensitive tasks yourself or parcel them out to other employees. If an employee takes leave and then returns to work, ask that he first handle routine tasks until he gets his “sea legs” under him. Then ask him to tackle time-sensitive or tabled tasks. By relieving workload pressure and helping with prioritization, you smooth your employee’s re-entry into the workplace. Grief opens up a Pandora’s Box of issues and emotions. If this hot potato

Dr. Lynne Curry

lands in your lap, take the lead in reaching out to and smoothing the employee’s ❑ re-entry into the workplace. About the Author Local management/employee trainer and consultant and the author of Managing Equally and Legally, Won By One and Solutions, Dr. Lynne Curry regularly provides managerial, leadership and board training seminars as well as public seminars. Curry’s company, The Growth Company Inc., offers a free monthly “breaking news” HR/ management newsletter and two seminars (70 minute and three hour) monthly. For more information on The Growth Company Inc.’s training and HR On-call services to companies needing help with recruiting, team-building, strategic planning, management or employee training, mediation or HR trouble-shooting, please visit www.thegrowthcompany.com.

www.akbizmag.com • Alaska Business Monthly • October 2011

119

OIL & GAS

Photo courtesy of ConocoPhillips

Workers install piping at ConocoPhillips’ West Sak field in 2005.

Crude Oil:

Different Elements Affect Values Thick and thin, sweet and sour, all flow through TAPS BY MIKE BRADNER

il is Alaska’s financial lifeline, but the values of the crude oil produced in the state can vary significantly with the differing quality of the oil. This is important, not only to the companies that produce the oil and sell it to refineries, but also to the State treasury. That’s because oil royalties and taxes are calculated on the basis of the crude oil value as well as the number of barrels produced and sold. Crude oil is a complex stew of chem-

120

ical compounds, mainly of carbon and hydrogen combined in various ways. These range from simple to complex and are the “hydrocarbons” that make up the various components of the crude oil. These components, called “fractions” in industry jargon, have different values based on the products like gasoline, diesel and jet fuel made from them. Also a detriment, how easily refineries can extract these fractions from the crude oil and make the products.

HEAVY/LIGHT Different oil fields in Alaska, even those near each other on the North Slope, produce crude oil with different quality and combinations of heavy and light hydrocarbons. There are also other elements in the crude oil that can affect value, like sulfur and heavy metals, and which must be dealt with by the refineries. If a crude oil has more sulfur or metals, it has less value because of costs imposed on refiners to deal with these.

www.akbizmag.com • Alaska Business Monthly • October 2011

Higher sulfur content leads to crude oils being labeled “sour.” A lower sulfur content results in a crude being labeled “sweet.” Cook Inlet crude oil produced to date has low sulfur and is considered a sweet crude. North Slope oil has more sulfur and is a bit on the sour side, but not as sour as many other crude oils. Crude oils are also valued according to the weight of the oil. The American Petroleum Institute (API) gravity index is the most common expression of this. Weight, expressed through the API gravity index, is used as a kind of proxy for judging value of a crude oil. Oils lighter in weight (and which ranks higher on the API gravity index) Crude oil Gravity WTI 39.6 (WTI: West Texas Intermediate) Brent 38.3 (Brent: North Sea Crude) ANS 30.0 (ANS: Alaska North Slope) Maya 21.8 typically has more of the higher-value “lighter” hydrocarbons, those with simpler molecules, which are more valuable for refineries in making products like gasoline, diesel and jet fuel. Crude oils that are heavier in weight (and have lower API gravity numbers) typically have less of the lighter components and more of the heavier components, and have more complex hydrocarbon molecules. These require more complex refineries and manufacturing processes to make the products the market demands. Light crude oil is generally above 30 degrees API. Heavy crude is generally below 30 degrees. Tar, for example, has an API gravity of about 8. Motor oil has a gravity of about 40.

refiners to remove sulfur from gasoline and diesel to low quantities because of a link established between sulfur content of fuel, air pollution resulting from that, and cancer. Refiners have complied with this, but the rules have imposed extra costs when refineries receive crude oil with higher sulfur content. Sulfur content is measured in weight percent. “Sweet” crude is generally below 1 percent sulfur. “Sour” crude is generally above 1 percent. Here are some example of how different crude oils show how their differences affect their values. Although the oil prices are out of date, the example below illustrates the differing values: Sulfur 0.24

For years, Era Helicopters LLC has been the leader in Alaskan helicopter operations. The search for minerals has taken Era into the most rugged and remote areas of Alaska.

H E L IC OP T E R S L L C

Price/barrel (in 2005) $56.43

0.37

$54.72

1.09

$53.35

3.33

$40.40

a SEACOR company

Safe,

Professional, Experienced

& Ready to Fly

Another important consideration is the heavy metals that crude oil can contain, such as nickel or vanadium. These can be poisonous and even small quantities can complicate efforts to control harmful air emissions. At a refinery, crude oil is distilled or separated into its components, or fractions. Distillation, the most simple refining process, involves boiling the crude oil and drawing off its vapors, and then condensing the vapors. The different hydrocarbon compounds that make up petroleum vaporize at different temperatures, and when they condense they separate out into different fractions. Here are some points at which different fractions boil off from crude oil to make products:

907 550 8600 • erahelicopters.com

MILLION AIR A l a s k a ’s l a r g e s t 2 4 - h o u r f u l l service FBO, featuring the highest level of professional ground support, customer s e r v i c e , s e c u r i t y a n d s a f e t y.

THE BAD GUY Sulfur is a major consideration. Sulfur occurs naturally in crude oil but poisons the catalysts used in refinery chemical processes as well as automobile catalytic converters. When burned, it forms sulfur dioxide and sulfuric acid, which corrodes engines and boilers and contributes to acid rain. In recent years, the U.S. Environmental Protection Agency has required

Gasoline – 100-400 degrees F Jet Fuel – 300-550 degrees F Diesel – 350-650 degrees F Refineries near Fairbanks and Valdez that use crude oil taken from Trans-Alaska Pipeline System are relatively simple distillation refineries. The refinery near Kenai is more complex and is able to to manufacture more

9 0 7 - 5 5 0 - 8 5 0 0 • m i l l i o n a i r. c o m

www.akbizmag.com • Alaska Business Monthly • October 2011

121

products from crude oil. The quality of oil taken in at the refinery affects the efficiency of the refining process. As stated before, crude oil produced in different fields in Alaska have different qualities. Some examples are the crude oil at Umiat, on the North Slope, which is very light and measured at 43 API, or higher, and the oil produced from the main producing pool of the Prudhoe Bay field, which is measured at API 28 in gravity. The Kuparuk River field oil has been reported at 24 API, while the Alpine field, on the Colville River, is producing oil that is 40 API. At the â&#x20AC;&#x153;Klondikeâ&#x20AC;? exploration well drilled in the Chukchi Sea in the 1990s, oil samples obtained showed a quality of 35 API. The high API numbers, as at Alpine and Umiat, means the crude can be more easily refined into products, and therefore commands a higher price. All of these oils are mixed as they enter TAPS at Pump Station One and are shipped to Valdez.

UPGRADE EXPECTED Umiat, on the Colville River on the southern North Slope, is not yet

producing (an Australian company, Linc Energy, is now working to develop the field) but if production does begin and its lighter oil is mixed with other crude oil in the TAPS the effect will be to upgrade the overall value of the blended crude oil moving through TAPS to Valdez, at its southern terminus. Interestingly, the Umiat crude is so â&#x20AC;&#x153;lightâ&#x20AC;? it is almost of diesel quality. In fact, in the 1950s, when U.S. Navy exploration crews found and drilled the small Umiat deposit, the crude oil from production tests on the wells that were drilled was used to fuel diesel engines, with no refining done. The situation gets more complex as North Slope fields with other types of crude oil are produced, for example the â&#x20AC;&#x153;viscousâ&#x20AC;? (or thicker) oil from the shallow West Sak deposit in the Kuparuk River field and the Schrader Bluff deposit in the Milne Point field. Viscous oil is also now being produced at the new offshore Nikaitchuq field, and a viscous oil deposit that is part of the Oooguruk field may soon be producing.

The viscous oil label mainly refers to its viscosity, or thickness, and not to its mixture of hydrocarbon components, although the West Sak and Schrader Bluff is ranked at about API 19 gravity, which is lower than other North Slope fields. The challenge in producing and marketing viscous oil is mainly due to physical properties. It is thicker, like maple syrup, and more difficult to produce. Its thickness also poses challenges for Alyeska Pipeline Service Co. with the TAPS. Viscous oil would not flow by itself through TAPS without being mixed with conventional lighter crude oil on almost a one-to-one basis. This is a challenge for North Slope producing companies and Alyeska because there is potential for much more viscous oil production on the Slope, but an equal amount of conventional lighter oil must also be developed to mix with the viscous oil so that the combined oil mixture will flow.

HEAVY IN WORKS Another prospect on the North Slope, but a challenging type of crude oil, is

Advertise directly to upper-level managers

%LOO 0RUULV $GYHUWLVLQJ $FFRXQW 0DQDJHU

Eighty-two percent of our 100,000+ monthly readers are Alaska business owners, CEOs or upper-level decision-makers. *LYH %LOO D FDOO WR VHH KRZ KH FDQ KHOS \RXU PDUNHWLQJ SODQV EH JROGHQ IRU

ZZZ DNEL]PDJ FRP 122

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ October 2011

the so-called “heavy oil” the producers hope to commercially produce someday. BP is developing test production wells to produce heavy oil from the Ugnu formation, a shallow reservoir that contains large quantities of a heavy oil resource, although it is unknown how much of this can be economically produced. Ugnu oil has an API gravity of about 15 and is even thicker and more difficult to produce and transport than viscous oil from West Sak and Shrader Bluff. Ugnu oil is considered “heavy” but the label is a general one. There are much heavier crude oils produced in California and Venezuela, some with API gravities down to 5. Since the oil fields on the North Slope produce crude oils of differing qualities, and which have differing values, how do the producing companies keep track of all this when these oils are mixed and shipped through the TAPS

Photo courtesy of BP

Right: Lisa Roberts, a production chemist and BP employee, taking a crude sample at the BP Heavy Oil process module at Milne Point.

and in tankers from Valdez in a single stream of liquid? The accounting is done through a mechanism called the “quality bank.” Essentially, the different crude oils are metered before going into TAPS and values assigned to them. The producers

are paid according to the value of what goes in. The complication comes over just how “value” is determined. All companies shipping oil through TAPS take the blended oil out of the pipeline at Valdez and sell it for basically the same market price. The quality

Where the road ends…

Our Work Begins

We are proud to announce the launch of our latest division, Cruz Marine LLC. Our ABS Loadline Class tugs are the only double-hulled shallow draft tugs in Alaska and the Northwest. We can transport equipment, materials, and supplies to sites along the Arctic Ocean and Beaufort Sea, the west coast of Alaska or up inland waterways. Whether by land or water, we can deliver what you need, when and where you need it.

MARINE LLC

cruzconstruct.com Main Ofﬁce (907) 746-3144 North Slope (907) 659-2866

www.akbizmag.com • Alaska Business Monthly • October 2011

123

bank is designed to pay the person who puts into TAPS oil that is more valuable than the oil he takes out in Valdez. Or vice-versa, the person who puts oil into TAPS that is less valuable than the oil taken out in Valdez has to pay the other shippers whose oil is degraded. Prior to the late 1990s the producers relied on a relatively simple expedient of using the weight and density measurement, the API gravity, as a proxy for value. The gravity of the difference crude oils going into TAPS was tracked and a formula was derived to divide up the value of the blended crude moved through the pipeline among the producers. The fly in the ointment on this came about when the refineries at North Pole and Valdez took crude oil from TAPS, extracted the fractions of the crude most useful for making gasoline, diesel and jet fuel (the more valuable fractions, actually) and returned what was left back to TAPS. What went back into TAPS was less valuable because of what had been removed, and tended to degrade the overall value of the liquids moving to Valdez, but using the weight and density method to estimate value did not really reflect what had been removed. This meant there was a kind of subsidy to the refiners: They didn’t have to pay a penalty to the owners of the rest of the oil that adequately valued what had been taken out. There was a lawsuit filed by one producer, ExxonMobil Corp. and another refinery, Tesoro Petroleum, and the ultimate result was an agreement to change the valuation method to a procedure that now measures components of the crude oil going in and measures changes to the crude stream further down the pipeline, downstream from the refineries. The result of this was to raise the penalty the refiners pay to compensate the owners of the remaining oil, which has been downgraded in value. Over time, as more viscous oil is produced on the North Slope and someday, possibly, heavy oil, the changing nature of oil moving in the pipeline and possibly the degradation of its quality will have to be watched closely. This will not only affect the operations of TAPS, because the oil might be thicker, but also revenues to the State treasury ❑ from royalties and taxes.

124

www.akbizmag.com • Alaska Business Monthly • October 2011

OIL & GAS

Valdez Tug Pilots Photos Crowley photo files

Tug Attentive.

Climbing Jacob’s Ladder BY MIKE BRADNER

o you’d like to be a pilot, a marine pilot? If you like boats, being on the water and around big ships, really big ones, and you like earning good money and having time off, you might think about this career. But hold on. Think about this: There you are bobbing around in choppy water in a small pilot boat. Your pilot boat approaches the ship, and it’s moving. As you nudge up toward the ship you look up at 60 feet of vertical hull. You’ve got to climb that. Down from the deck high above

comes a flimsy, flexible ladder, dangling in the wind. You have to reach out, grab it, step (or leap) across open water from one moving, bobbing vessel to another, and then climb the ladder, which in seamens’ lingo is a Jacob’s Ladder. And don’t look down. Sounds a little melodramatic, but this is how the marine pilots who guide big ships into port go to the office, and if you’re a pilot who guides the big oil tankers in and out of the Port of Valdez you do it every day. You’d better be fit, too.

HIGHLY TRAINED MARINERS A pilot is a highly trained mariner who guides ships through congested, constricted waters like harbors. The captain is still in overall command of the vessel but the pilot is the person who guides it to its final docking at the end of the voyage. In some cases the pilot is in physical control of the ship, but even if not the captain, by custom, always defers to the local knowledge of the pilot. The marine pilot controls the ship when it is in crowded harbors or confined waters. While the captain knows

www.akbizmag.com • Alaska Business Monthly • October 2011

125

Tug Tan’erliq.

his ship well, the pilot is the expert on a particular waterway. In the case of the Prince William Sound tankers, the concern is Valdez Narrows, the narrow passage between the Port of Valdez itself, a wide, open body of water, and the larger expanse of Prince William Sound. The winds can get tricky in Valdez Narrows, particularly for a large tanker coming in empty and riding high in the water. The huge bulk of the ship is like a sail. This is less of a problem when departing Valdez because the loaded tanker sits low in the water. But tidal currents can also be challenging in Valdez Narrows. Prince William Sound doesn’t have tides as high as Cook Inlet, but its tides are still high. Cook Inlet poses tricky navigation problems for shipper with high tidal currents, shoals, winds and, in winter, ice. Maneuvering large ships in to dock at the Port of Anchorage has become more of a problem in recent years because of silting and shoals forming on the approaches to the port. Navigation in and out of Cook Inlet and Valdez may not be at the top of the list of concerns for most Alaskans, but about 90 percent of the consumer goods for Southcentral, Interior and northern Alaska come through Anchorage’s port. The bulk of these goods move in the big container ships operated by Horizon Lines, or the rollon, roll-off vessel operated by Totem Ocean Trailer Express, or TOTE. In Valdez, tankers that navigate the narrows there every day carry oil that pays for 90 percent of the State budget and,

126

directly and indirectly, support onethird of the Alaska economy. The importance of safe navigation in and out of these critical points isn’t always apparent. We typically think of transportation in terms of airplanes, railroads, automobiles and trucks, which we see every day, but the bulk of the world’s commerce actually moves on big ships, and they’re getting bigger.

ANCIENT TRADITION The tradition of marine pilots goes back to ancient times when incoming ship captains hired locally experienced seamen who knew the local waters, often fishermen, to bring their ships into port safely. As time went by procedures were developed in each seafaring nation to insure the pilots had adequate training and experience, and regulations and licensing requirements were developed. Alaska also has a highly developed set of regulations and rules governing marine pilots, all under the jurisdiction of the Board of Marine Pilots. One other thing the board does – think back to you, a novice pilot, jumping off that pilot boat and climbing the Jacob’s Ladder as it sways in the wind – is set the place where the pilot and the pilot boat meets an incoming ship. Those locations are published by the Board of Marine Pilots for shipping companies to see. For the oil tankers coming in and out of Valdez, the pilot station is in Prince William Sound inside Hinchinbrook Entrance but beyond the infamous Bligh Reef, which was hit by the tanker Exxon Valdez in 1989. Prior to 1989,

the pilot station, where pilots are picked up and dropped off, was outside Valdez Narrows. Had the pilot station been farther out, beyond Bligh Reef, there would have been a pilot on the Exxon Valdez and the ship would not have strayed off course and hit the rock. After the tanker grounding, the Board of Marine Pilots moved the pilot station farther out, now tankers have pilots as they pass Bligh Reef. Using pilots is the law. All foreign ships except small yachts and domestic ships of certain sizes, which certainly include large ships like tankers, are required to use pilots. However, it’s not unusual for vessel owners who are not required to use pilots to hire them anyway, because it often helps them get better insurance rates.

DISPATCHING TUG PILOTS The pilots themselves are individual self-employed professionals, and they work through regional pilots’ associations, which contract with the shipping companies for their services. The association with responsibilities for Southcentral Alaska, which includes Prince William Sound, Kodiak and Cook Inlet, is the Southwest Alaska Pilots’ Association, based in Anchorage. Western Alaska, essentially Kodiak west and including the Aleutians and the Arctic, an area of increasing interest, is covered by Alaska Marine Pilots, also based in Anchorage. The western regions used to be part of the area covered by the Southwest Alaska Pilots’ Association until shipping activity around Dutch Harbor reached the point where a separate association was needed. Southeast Alaska, meanwhile, is covered by the Southeast Alaska Pilots’ Association based in Ketchikan. These pilots associations are given recognition by the State Board of Marine Pilots. These aren’t really monopolistic situations. There could be more than one association in a region to offer competition, and an employer (a shipping company) would be free to work with either one as long as the pilots were licensed. There were once two associations in Southeast, for example, but they eventually recombined into one group. The associations maintain offices where the dispatches are done. The Southwest Alaska Pilots’ Association

www.akbizmag.com • Alaska Business Monthly • October 2011

dispatch center is in Homer; the Southeast association does its dispatches from Ketchikan, and the Alaska Marine Pilots’ dispatch center is in Unalaska. The “tariffs” or fees charged to the shipping companies by the pilots for their services can also be appealed to the Board of Marine Pilots. If the pilots increase the tariffs it must be justified, and there is always the avenue of appeal. There are always negotiations between the shippers and the pilot associations when the contracts are periodically renewed, but contract renewals have typically gone smoothly between the major shipping companies – the oil tanker operators, for example – and the pilots. The only contentious negotiations were those that have occurred with operators of large cruise ships. The Alaska business model of the pilots operating as individual businesses and contracting though nonprofit associations is similar to that done in other U.S. coastal states. The only alternative would be to have the pilots be government employees, which is not done anywhere in the U.S.

sėĥĢ İĪĞįı ĴĞĶ ıĬ ğĲĦĩġt • Pre-engineered steel buildings • Warehouses • Shops • Hangars • Bridge cranes • Riding arenas • Insulated foam panels

ĖĲĭĭĩĶĦīĤ Ğīġ ĢįĢĠıĦīĤ İıĢĢĩ ĞĠįĬİİ ĄĩĞİĨĞ ģĬį ĶĢĞįİ

REDUCING PILOT NEEDS Recruitment is a concern for the pilots’ associations. As with many professions the work force is gradually aging. Most marine pilots are in their 40s, 50s and 60s, and the mandatory retirement age is 70. On one hand, age and experience is a plus because what ship owners want is the knowledge the pilots have of local waters. But pilots must also be physically fit to scamper up and down those Jacob’s Ladders. However, another factor affecting the piloting business is the number of tankers carrying crude oil from Valdez has declined over the years as production from the North Slope has dropped. Now, about 600,000 barrels per day of oil moves through the trans-Alaska oil pipeline to Valdez and is being shipped – less than a third of the 2 million barrels of oil shipped from Valdez from 1978 through 1988, when the decline in production began. One major producer, BP, has reduced its tanker fleet from 11 ships to four, but another factor is newer tankers brought into service are carrying more oil. The bottom line is fewer tankers mean less work for pilots, and www.akbizmag.com • Alaska Business Monthly • October 2011

127

the need for fewer pilots. Other shipping activity in support of fisheries, cargo movement and cruise ships, has remained stable, but the reduction in oil tankers has resulted in the number of pilots in SWAPA being reduced to 16, down from 24. One other recruitment issue, however, is while being a marine pilot is a well-paying profession, a young person seeking to enter the business must make a tremendous investment of time – to gain working experience on ships and in education – and a long period of unpaid on-the-job mentoring with licensing pilots. A four-year degree is required from a recognized Maritime Academy, an institution like the California Polytechnic Academy, followed by several years of apprenticeship working with a pilot, at first just “shadowing” and watching an experienced pilot, then doing piloting work under the supervision of a licensed pilot. During these years the novice pilot is unpaid. Once licensed, pilots also must undergo random drug screening and also do periodic refresher training in simulators. One such facility is at Alaska

128

Vocational and Technical Center, or AVTEC, in Seward, where the simulator is equipped to visually display various Alaska port locations from a model of a vessel bridge. The pilot can practice approaches in different weather and tide conditions, and emergencies also can be simulated. Pilots must have a deft feel for the local currents, tides and winds. The best pilots can move a large ship gently alongside a dock so touching the dock is hardly felt. This is an important consideration given many docks, particularly in outlying communities, are made of wood and can be damaged. A concern among pilots is “how tender” a dock is, meaning its condition and age, and susceptibility to accidental damage.

ARCTIC NAVIGATION CONCERNS The primary mission of marine pilots is to help ensure marine safety, and one of the new issues facing the marine pilots in Western Alaska is whether vessels employed to support oil and gas exploration in the Arctic offshore will be required to employ coastal pilots. There are special ice-management

issues involved in Arctic navigation. So far, the oil and gas companies exploring in the Arctic have opposed the request from the pilots’ association, in this case the Alaska Marine Pilots association, which has jurisdiction in the area. This may become a concern for coastal communities in the region who are worried about offshore safety and the risk of accidents. However, the areas being explored, mainly in the Alaska Beaufort Sea and the Chukchi Sea, are in the federally managed outer continental shelf and beyond the reach of Alaska State law. Another area of increasing concern is the Bering Strait between Alaska and Russia. An increasing number of vessels, including tankers and cruise ships, are now navigating this restricted waterway, and because vessels have international rights-of-passage the coastal nations, in this case the U.S. and Russia, have little leverage in imposing rules of navigation or standards for ships. There is, however, more attention being paid to this through the International Maritime Organization, a ❑ United Nations agency.

www.akbizmag.com • Alaska Business Monthly • October 2011

OP-ED

Knik Arm Crossing Moving From a Concept to a Contract

More than 100 participants from biggest national and international firms Artist’s rendering of the Knik Arm Bridge. Michael Foster

ometimes projects start off as good ideas, and stay that way, just ideas. I have good news for the vast majority of Alaskans, the Knik Arm Crossing is moving forward – from a concept into the contract phase. And we’re attracting some of the biggest names in the business. On Aug. 18, the Knik Arm Bridge and Toll Authority (KABATA) hosted a workshop and invited State, national and international development firms to listen to our update on the bridge. The level of interest at the workshop was significant, with more than 100 people in attendance, representing some of the largest national and international finance, design, construction and concession companies. In the workshop, we outlined the Private Public Partnership or “P3” model we will be employing for the project. P3 is being used across the nation as a way to leverage private capital and expertise for public infrastructure projects. It’s a method to deliver significant infrastructure with limited upfront public funds while sharing project risk with the private sector. It has become increasingly popular now that public funds are at a premium. KABATA

BY MICHAEL FOSTER is utilizing a P3 model in which the private-sector partner provides project finance, design, construction, operation and maintenance in exchange for an availability payment from KABATA, with payment dependent on what type of financing is received. An availability payment is a predetermined and stable payment over the lifespan of the project. Our estimates are that toll revenues will exceed the availability payment about nine years after the bridge opens. These companies are interested in this project, for all the right reasons – first, Knik Arm Crossing been through a rigorous environmental process. The National Marine Fisheries Service issued a “no jeopardy” finding for the endangered beluga whale population in November 2010 and the Federal Highway Administration gave the goahead for construction when they issued a Record of Decision in December 2010. Currently, Knik Arm Crossing is the only mega project in Alaska to receive this federal okay. Second, the project has statewide public support. In a statewide poll conducted by Dittman Research and Communications in early 2011, 60 percent of Alaskans think it’s time to build the bridge. Fi-

nally, Alaska has a stable economy. Our housing market is strong and our unemployment rate has continued to be several points lower than the national average – 7.7 in July compared to 9.1 nationally. The firms in attendance see we have a mature project and positive climate in which to do business. There are a lot of positive aspects of this project – from the fact that it will provide an important emergency route to and from Alaska’s largest urban center to communities such as Palmer, Wasilla, Talkeetna, Big Lake and Fairbanks – to he fact that the excess toll revenues can be used for other transportation projects. It will be a cost savings to commercial vehicles moving goods up north to Alaska’s Interior and it will open up lands for development in the western portion of the MatanuskaSusitna Borough. While many projects will forever remain just ideas, the Knik Arm Crossing is a project that’s moving forward, from a good idea to a great bridge. ❑ About the Author Michael Foster is chairman of the Knik Arm Bridge and Toll Authority.

www.akbizmag.com • Alaska Business Monthly • October 2011

129

MANAGEMENT

Labor and Management Working together for a stable future

Photo courtesy of NECA

BY NICOLE A. BONHAM COLBY

The NECA/IBEW Fire and Ice New Year’s Eve Celebration is an annual event in Anchorage.

s baby boomers enter retirement age and attrition out of the commercial trades and labor work force, Alaska unions and employers are working together to ensure a steady stream of skilled Alaska workers. Training academies and apprenticeships are tangible evidence of how management and labor – sometimes traditionally at opposite ends of the bargaining table – have joined forces to cultivate collaborative relations and streamline the worker’s path from training and education to stable and lucrative employment. “It’s been a great thing for our industry,” says Steve Boyd, manager of the

130

Alaska Chapter of the National Electrical Contractors Association (NECA). “We’ve had several years of high-level cooperation on a lot of different issues. We’ve come to the conclusion that we’re in the same industry; we should try to get along and work together. We enjoy our partnership with the (International Brotherhood of Electrical Workers) IBEW.” The unions and contractors representing the other trades and construction sectors mirror Boyd’s sentiment, which is also reflected in the numerous education-oriented and public awareness efforts co-sponsored by the various groups. Such initiatives have proven

important enough to workers and contractors alike that each group is putting their money behind the efforts to further their own employment sectors. “We realize that if the contractor is not successful, our members will be not be successful,” says Joey Merrick, who serves as business manager for Laborers’ Local 341 based in Anchorage and first joined the union after moving to Alaska in 1989.

APPRENTICESHIPS The apprentice concept is one example where unions and management have collaborated to benefit the industry. According to a summer report issued

www.akbizmag.com • Alaska Business Monthly • October 2011

by the Alaska Department of Labor and Workforce Development, some 11,000 Alaskans will enter the state’s work-age demographic this year, joining 29,000 unemployed Alaskans in vying for available jobs. Research Analyst Jack Cannon and Economist Yuancie Lee reported in a July Economic Trends article, “Alaska’s Registered Apprenticeships,” that many will enter a registered apprenticeship program to ensure they come to the table with applicable, highquality training and skills. “Workers who have successfully completed an apprenticeship are likely to find stable, living-wage jobs – and employers who sponsor apprentices invest in their industry, employees, and the future of their company by fostering a loyal local work force,” the authors wrote. “More than 60 percent of registered apprenticeships in Alaska between 1998 and 2009 were sponsored in ‘joint’ apprenticeship programs: partnerships between employers, unions and/or employee associations.” As one example of such partnership programs, NECA and the IBEW in the late 1990s jointly funded their Labor Management Cooperation Committee. The groups brought in a Cornell University consultant, gathered their respective members at the table, and “went through win-win bargaining to try to identify problems we could tackle jointly instead of traditional antagonistic approach to industry,” Boyd said. “That led to development of a goal to try and brand ourselves in the state as an organization working together to promote the industry – electrical as well as communication – and make it more attractive.” That vision led to a separate apprenticeship and training committee and eventually to new educational facilities in Anchorage and Fairbanks. “That kind of provides some bricks and mortar to the program as well,” Boyd said. For the period from 2000 through 2002, the program “saw almost a doubling of the enrolled apprentices,” he says. The interest tracked alongside growth in related commercial activity. “The construction industry ramped up as well. We paralleled that,” he says. As for the latest recession, the enrollment numbers remained stable. “They’ve stayed steady.”

“… and we now have universal support for the continued success of an award-winning program.” – Dick Cattanach

Cattanach’s vision catapults academies into existence

t has been said it takes a visionary to look into the future and to know how that future ought to look. Such a person is Dick Cattanach. Cattanach is largely credited with sharing his vision for the construction industry in Alaska where young people can be trained in specific skills to fill construction job openings. As former executive director of the Associated General Contractors of Alaska, Cattanach established a partnership of interested companies that opened construction academies around the state (there are now 11 in existence). The goal for each of these construction academies: turn out qualified entry-level construction workers. The Construction Industry Progress Fund, an offshoot of AGC and composed of members representing management and labor, initially created a program to communicate to Alaska’s youth, ages 18-24, that there were good careers in construction. The way to get them was through specialized classes and training programs such as the ones National Electrical Contractors Association and Laborers’ 341 were holding. Cattanach was then able to bring together the Alaska Department of Labor and Workforce Development, several school districts, the Anchorage Homebuilders Association, AGC, Alaska Works Partnership and Cook Inlet Tribal Council to get the academies rolling. With the Construction Education Foundation, composed of members of the construction industry, as the umbrella group the rest is history. “We’ve managed to improve the quality of entry-level workers in the last five years,” Cattanach says, “and we now have universal support for the continued success of an award-winning program.” Added bonuses to the program are the improved image of the construction industry as an industry that came together to help itself. ❑ Cattanach is now retired but the legacy lives on.

www.akbizmag.com • Alaska Business Monthly • October 2011

131

Further reports like that in the July issue of Economic Trends provide the hard figures behind a trend that both union officials and employers recognized long ago: quality local training cultivates local retention. “For the most part, they stick around, especially now that the work situation in the Lower 48 is pretty bleak,” Boyd says. Typically the trend has been that as apprentices gain greater experience and training and become journeymen, they may tend to be more mobile. For example, there is a specific niche to focus on the rebuilding work available nationwide following natural disasters – floods, hurricanes. However, Boyd says, “we’ve noticed a trend that, once they get a little older and settled down … they’ll transition and end up working at (electrical associations back home in Alaska).” A recent Alaska electrical and communications industry survey discovered that of local shops participating in the survey, 72 percent of journeyman classifications had gone through the apprentice program. “It was really an eye-opener,” Boyd says.

HIGH RETENTION, HIGH WAGES Cannon and Lee quantify the retention of the apprentice concept in the July report. “In 2009, almost 89 percent of apprentices who had registered between 1998 and 2009 were still in Alaska, and about two-thirds still lived in the same borough or census area where they registered,” the authors wrote. “It appears more apprentices are moving within the state, and fewer are leaving Alaska. In 2007, 12.6 percent relocated within the state, compared to 18.6 percent in 2009. In 2007, 80.1 percent of the apprentices who registered between 1996 and 2007 were residents, which increased to 85.5 percent in 2009 for 1998-2009 registrants.” As both Boyd and Merrick note, the impacts of the recession that put the Lower 48 into financial and employment chaos is tempered thus far in Alaska. “The recent recession has not been as harsh in Alaska as it has been in much of the Lower 48, and that may have encouraged some in-state apprentices to sit tight,” Cannon and

132

Lee wrote. “It may also show that employers who offer apprenticeships can develop a loyal local work force. Sixtyfour percent of all current and former apprentices, and more than 80 percent of those who completed their training, worked in occupations related to their apprenticeships. Less than half of those who canceled continued to work in a related job.” For those who complete an apprentice program, the reward is significant. “Current and former apprentices working in Alaska earned more than $253 million combined in 2009,” wrote Cannon and Lee in their July analysis in Economic Trends. “That amounts to about 1.9 percent of all wages in the state that year, and 2.2 percent of wages for occupations that had at least one working apprentice.” Specifically, there can be tens of thousands of dollars difference for those who continue the program to its fruition. “Completing an apprenticeship pays off – workers who finished made significantly more than those who canceled,” according to Cannon and Lee. “In 2009, workers from the 1998-2009 group who had completed their apprenticeships had average annual earnings of $65,514, while those who canceled earned $36,093.”

REBRANDING THE TRADES Both Boyd and Merrick independently acknowledged the impact of the information technology age on national recruitment into the trades. “I would say (recruitment) kind of parallels the dot-com industry,” Boyd said. “Young people have gone through school with computers … they familiarize themselves with technology and were more oriented to that type of work or career path. And I think during those early years and growth years of those companies, young people were becoming millionaires – that was very attractive to them.” In Alaska, however, the state’s very geography and mindset of its populace challenges that trend. “I think it is different (in Alaska),” says Boyd, who moved to Anchorage in 1989 from Ketchikan. “The Alaskan geography is more outdoorsy. So (residents are) getting out and doing things that are mechanically oriented and a little more dynamic ...

that exposure lends itself more to people entering the construction industry.” Alaska’s vast rural areas of relatively stable multi-generational population also play a role, he says. “Areas like Southeast and Fairbanks have strong community ties and traditionally people see someone they know who has gone into a trade and so they go into that,” he says. “You see a lot of second- and third-generational craftsman.” In the larger cities like Anchorage, however, “people are coming and going more and that creates more of a challenge in (attracting) transitional youth.” Merrick agrees that, for a period, the computer industry captured many incoming youth who traditionally may have opted for a construction career. There was “a little bit of an issue with the computer age … a lot of people want to work on the computers,” he says of recruitment trends. However, as the unions and management team up to promote the industry, they have witnessed positive results. “Mainly what we’re trying to do is to let people know that construction is a really important part of Alaska’s economy,” Merrick says. Part of that effort has included a campaign of new television commercials sponsored by Laborers’ Local 341, together with Northwest Laborers’ Employers Cooperation and Education Team (LECET). The union saw its website traffic increased by 150 percent after the public-awareness commercials began airing, according to Brandon Calcaterra, who serves as marketing representative for Local 341, among other duties. “We’ve got more apprentices this year than we’ve had in the last five years,” Merrick says. A significant portion of that growth is attributed to the success of the advertising campaign in clarifying the positive realities of a job in the construction field – good pay, good benefits, and a positive landscape for employment opportunity. The concept of the union hall as a resource for employers and workers alike is among the drawing cards for those represented by or contracted with a union. “The Laborers can provide high-quality skilled employees to the contractors at literally a moment’s notice via emergency staffing,” Merrick says of the process. That built-in network of work opportunities has become particularly

www.akbizmag.com • Alaska Business Monthly • October 2011

Photo courtesy of NECA

important as the nation struggles to surface from its latest economic recession and corresponding impact to the building industry. “Our work is definitely down,” Merrick says. “Probably not anything like what’s going on down South. But the commercial construction seems to be one of the areas we’re struggling.” Additionally, road construction was boosted by federal stimulus-related funds, but is also tapering down, he says. “Overall, we’re weathering the storm fairly well,” Merrick says.

COLLABORATIVE TOOLS As additional examples of the partnership of labor and management, the groups contribute their time and spending power to promote the industry – both as a recruitment and public awareness tool – through such efforts as the Alaska Construction Industry Progress Fund (CIPF) and detailed analysis efforts like the “Alaska’s Construction Spending: 2011 Forecast.” Organized by management and labor specifically to advance the awareness and improvement of the building and construction industry in the state,

The statewide IBEW/NECA apprenticeship program trains electrical workers in facilities such as the Kornfeind Training Center in Fairbanks.

the CIPF works with its sister organization, the Alaska Chapter of Associated General Contractors (AGC), to publish such reports as the annual forecast and to promote awareness of efforts like the craft/apprentice training program. Altogether, it’s such efforts by the key stakeholders themselves –

management and labor – that will ensure positive recruitment and topshelf, quality workmanship and benefits going forward. In the eyes of both parties, such collaboration is critical to encourage a stable future for the construction and trades industries in the new century. ❑

www.akbizmag.com • Alaska Business Monthly • October 2011

133

HEALTH & MEDICINE

Care Through the Cancer Continuum From prevention to treatment to survivorship, organizations offer help each step of the way BY VANESSA ORR

Photo courtesy of The American Cancer Society

134

Photo courtesy of Providence Alaska Medical Center

obody likes to get screened for cancer. Whether it’s a mammogram or a colonoscopy, the fact is, it’s not fun. But the good news is that with early detection and proper treatment, those who have been diagnosed with the disease are living longer than ever before. “In Alaska, approximately 2,860 people are diagnosed with cancer each year and 880 die of the disease,” explained Sarah Robinson, district executive director, American Cancer Society (ACS). “But more people are surviving than ever before – in 1971, there were 3 million cancer survivors in the U.S; today, there are 12 million.” There are more than 200 different types of cancers, with prostate cancer being the most common cause in men, and breast cancer the most common in women. The leading cause of death in both genders is lung cancer. “The earlier cancer is diagnosed, the easier it is to treat,” said Robinson.

Providence Cancer Center is a state-of-the-art facility providing genetic counseling, appearance support, healing arts and resources for community education.

“Unfortunately, there is no screening test for lung cancer, which is why it’s more difficult to diagnose.”

Alaska Natives have a higher rate of colon cancer than do other racial groups, and it is the leading cause of death among that population. Heart disease is the leading cause of death among other Native populations nationwide. “If you catch colon cancer at stage 1, there is a 90 percent chance of survival. At stages 3 or 4, there is only a 10 percent chance of survival,” said Robinson. “Unfortunately, colon cancer is screened through a fecal occult blood test, which sometimes shows a false positive in Alaska Natives, or through a colonoscopy, which is not always practical in small villages. “In order to have a colonoscopy, patients have to do prep work 24 hours in advance,” she continued. “If a doctor is flying out to a remote community and gets weathered out, all of that prep is lost and patients can’t be screened.” “People in rural areas have a challenge getting the proper screenings as

Road to Recovery is a service offered by the American Cancer Society in which volunteer drivers provide cancer patients with transportation to and from their cancer treatment. www.akbizmag.com • Alaska Business Monthly • October 2011

RISK FACTORS FOR CANCER According to Robinson, one-third of all cancer deaths are tobacco related, and one-third are linked to obesity. “We tell everyone, if you smoke, quit. Practice physical activity at least 30 minutes per day, five days per week. And try to eat foods that are good for you, like fruits and vegetables.” In order to reach out to those who live a subsistence lifestyle or prefer traditional Native foods, the Alaska Native Tribal Health Consortium (ANTHC) has designed a food guide specifically geared to that market. “The Traditional Food Guide for Alaska Native Cancer Survivors was made possible through a Lance Armstrong Foundation grant,”

says Christine A. DeCourtney, ANTHC cancer program planning manager. “The idea came from a cancer survivor who was told by her doctor to eat kale, and she told him she didn’t even know what kale was – she wanted to eat sea asparagus.” The book takes native foods that are rich in nutrients and makes it easy to understand how much of each is required for a healthy diet. “Working with a graphic designer, we came up with a visual that shows how much of each food is needed,” explained DeCourtney. “If one serving of fish equals 50 percent of the protein a person needs, we show a graphic representation of a person filled halfway up.” The book, now heading into its fourth printing, is extremely popular within Native communities. Free to all Alaska Native cancer survivors, it has also been ordered by school districts, private bookstores and all Alaska National Park bookstores, as well as by patients facing other debilitating diseases like diabetes. “The book has taken off beyond our wildest dreams as a healthy lifestyle tool,” said DeCourtney.

Photo courtesy of The American Cancer Society

well as accessing care,” agreed Wanda Katinszky, director, Oncology Service Line, Providence Alaska Medical Center. “Colorectal cancer, which has the highest rates in Alaska Natives, requires more sophisticated detection than they are capable of having in villages served by a health aide. While there is a mobile mammogram to detect breast cancer, it doesn’t travel everywhere.”

Look Good Feel Better is a free program that teaches beauty techniques to women cancer patients in active treatment to help combat the appearance-related side effects of cancer treatment.

– where i belong –

PEOPLE FIRST › “I came from a for-profit hospital in Pennsylvania to FMH. What a difference. Back East, the hospital’s direction was based solely on profit. At FMH, it’s based on community need. It’s the difference between being owned by stockholders – or by the community. Profit should not determine the services we offer. People should.” Shari / R.N., Behavioral Health Services

community-owned fmhdc.com

www.akbizmag.com • Alaska Business Monthly • October 2011

135

“More people are surviving than ever before – in 1971, there were 3 million cancer survivors in the U.S; today, there are 12 million.”

Photo courtesy of The American Cancer Society

– Sarah Robinson ■ District Executive Director ■ American Cancer Society

I Can Cope offers free classes for adults with cancer and their loved ones. Attendees learn tips on eating healthy during and after treatment.

Education plays a huge role in the prevention of cancer. The American Cancer Society offers anti-tobacco programs for children as well as programs on physical activity and nutrition, tobaccocessation programs for adults, information on what types of tests to get and when, and even workplace services. “We offer education to employers to show them how to positively influence employee behavior,” said Robinson. “For example, if the company insurance policy requires a $10 copay for a screening test, we may recommend that they eliminate this expense because we know then that testing will go up.” In the last decade, education campaigns have been shown to result reduce tobacco use, especially among young adults. “The youth smoking rate has dropped by 50 percent in the last 10 years in Alaska,” said Robinson. “Tobacco taxes help, too – for every one cent increase, we see more youth who never start smoking.” Preventing tobacco use is just one goal of ANTHC, who are using an ongoing grant from the Centers for Disease Control (CDC) to implement a comprehensive cancer care program. This program takes a seven-prong approach to the disease, including prevention, screening/early detection, diagnosis, treatment, survivorship, palliative

136

care, and research and surveillance. “We recently had two staff members travel to Barrow to do a radio show about tobacco prevention,” said DeCourtney. “They show was aired in English and in Inupiaq. While there, they also held a videoconference training for community health aides in the surrounding villages.” ANTHC is also educating villagers on the importance of colorectal screenings. Staff travel to local and regional health fairs with ‘Nolan the Colon,’ a large inflatable colon, to provide information and encourage testing. “Five years ago, colon screenings were never mentioned; there were very few screening programs in the community or even in regional hospitals,” said DeCourtney. “Since then, we’ve done a lot of work about the importance of screenings and grants have made it possible to promote early detection tests, including colonoscopies, which are now available in regional hospitals.”

TREATING THE DISEASE While it’s never easy to undergo cancer treatment, patients are benefitting from new technologies, and the opportunity to find quality care close to home. “Today, cancer patients have the advantage of more targeted therapies and better drug options,” said Robinson. “Therapies today attack just the cancer cells,

compared to 30 years ago when treatments radiated the entire body and not just the site of the cancer. “In most cases, patients can be treated here in Alaska,” she added. “If the cancer is very specific, such as bone marrow cancer, they may go to Seattle for treatment. But Alaska has come a long way in getting the equipment needed to treat cancer patients.” The Cancer Center at Providence Alaska Medical Center treats 1,100 patients each year, though a small number of patients may still need to go out of state. “There are some cases where don’t see enough volume and it is better for those people go out of state for surgery or to get second opinions,” said Katinszky. “Even if they have their surgery out of state, we can still provide them with the chemotherapy they need here afterward. People don’t realize what we have in the Cancer Center – we have state-of-the-art technology that enables us to provide many kinds of care.” As a member of the Seattle Cancer Care Alliance, Providence Medical Center is able to provide patients with access to clinical trials. “The Alliance does original research that originates at the Fred Hutchinson Cancer Research Center, which we get as soon as it becomes available,” said Katinszky. Providence also offers Community Clinical Oncology Program (CCOP) trials to its cancer patients. At the Alaska Native Medical Center (ANMC), three board-certified oncologists, an oncology nurse practitioner and an expert nursing staff provide top-of-the-line care for Alaska Natives diagnosed with the disease. The tribally owned and managed health care system provides integrated programs to more than 138,000 Natives from all parts of the state. “The center provides a very robust service staffed by excellent providers,” said DeCourtney. “Their goal is not only to treat cancer but also to preserve quality of life.” Survivorship groups are held weekly at ANMC, where patients, spouses

www.akbizmag.com • Alaska Business Monthly • October 2011

and their friends can find support while getting treatment at the hospital. Once they return home, they can still connect to the group by teleconference or videoconference. “One advantage of being treated at ANMC is their incredibly sophisticated videoconferencing system,” said DeCourtney. “Each village with a health aide has the system and knows how to use it. “There was one woman with breast cancer from Juneau who missed her three children terribly, but was able to connect with them via videoconference,” added DeCourtney. “Being able to talk and laugh with her children was a tremendous support. Another young woman with breast cancer that had traveled to her brain was able to connect to her village and have a conversation with her grandparents in Yupik. What an incredible support that was for her right before she had surgery.”

FINDING ONE’S WAY Overwhelmed doesn’t even begin to describe how a person feels after receiving a cancer diagnosis, but there is help available. The Cancer Center

at Providence, for example, offers a Patient Navigation program that assists patients from their initial diagnosis forward, answering questions and helping patients identify needs and locate services. “Our goal is to get patients access to the care they need and to remove whatever barriers they face,” said Katinszky. The program draws from resources including nurses, social workers, a genetic counselor, an oncology certified dietitian, drug counselors, reconstruction specialists, financial counselors, a mental health nurse practitioner and more. Most services are free; the program is supported by philanthropic donations. One truly unique aspect of the Navigator Program is the Susan Butcher Family Center (SBFC), which offers support, mentoring and education for children and teens. Services are provided without cost to families in the state regardless of where a person receives cancer treatment. “The Susan Butcher Family Center is special – it’s not something that you’ll find anywhere else,” said Katinszky.

“When a family member has cancer, it changes the whole family dynamic. We are centered on helping children from a developmental standpoint, focusing on resiliency and empathy.” Families have access to 12 learning centers that enable them to get information about cancer, express their feelings, discover ways to cope, and experience healing in a compassionate environment. “The nutrition component, for example, may help children understand why a parent with cancer doesn’t want to cook anymore,” said Katinszky. The American Cancer Society can also help people find the resources that they need. “As awareness of the disease grows, support grows,” said Robinson. “As more people survive the disease, more volunteer to give back.” ACS can help patients find rides to treatment, donated hotel room nights, money for gas cards and even donated flights. “Our goal is to remove barriers to treatment,” said Robinson. “There are a lot of obstacles out there, but there is also a lot more support in place to help with cancer patients’ needs.” ❑

www.akbizmag.com • Alaska Business Monthly • October 2011

137

Photo courtesy of The Alaska Club

HEALTH & FITNESS

Still healthy despite country’s recession ills BY NICOLE A. BONHAM COLBY More than 128 million consumers worldwide carried health club memberships by the end of 2010.

combination of Alaska-centric forces is fueling continued stability in the state’s health-fitness industry, business operators and economic analysts report. Robert Brewster, president of The Alaska Club – the state’s largest fitnesscenter operation with 18 locations across the 49th State and celebrating its 25th anniversary this year – identifies several factors at work behind the continued popularity and growth of the fitness industry in Alaska. First, as economists have long noticed and reported, the effects of the national recession were slower to reach Alaska – and arguably have so far affected Alaskans less than in, for example, the Phoenix or Las Vegas markets. Second, indoor fitness plays a uniquely important role for weather-worn Alaskans. “Indoor fitness activity is more of a necessity in Alaska than some other parts of the country,” Brewster says. As a result, “the consumer has had more loyalty to this particular expense in their personal budget.” Whereas, in Lower 48 economies, where indoor fitness is more of a luxury item to be possibly reconsidered when times are tight; in Alaska, with its extreme weather conditions, the

138

concept of spending time warm and dry indoors takes on additional value to the northern consumer, he says. “Ironically, when you live at the extremes, you have a good environment for indoor recreation,” said Brewster. Finally, The Alaska Club has benefited from the importance of indoor fitness activities in the context of the family. That club’s membership is split nearly equally between single users and family memberships, Brewster reports. His comments are seconded by fitness operators around the state. In Ketchikan, Angela Morin owns and operates Training Nutrition Attitude (T.N.A.) Fitness LLC, where she sees her membership activity and class attendance directly ebb and flow based on the Panhandle weather. In July and August, attendance was down as residents enjoyed the chance to get outside. In October, classes again fill to capacity. “For here – Southeast – that’s when our weather starts turning bad and that’s when people start to go indoors,” she says. Similar to The Alaska Club, Morin has seen increased interest from entire families. When she started her operation in late 2009, mostly women filled

her classes. “If anything, I’ve added more (classes and offerings) to try to fit everybody in,” Morin says. “All classes are tailored so anybody and everybody can take them.”

A “LOCAL” COMPONENT OF LEISURE & HOSPITALITY When economists analyze the state’s Leisure & Hospitality industry sector, those businesses identifying themselves as fitness-, sports- and recreationoriented fall within such bounds. They provide a surprising local component to an industry sector otherwise largely focused on non-residents traveling to Alaska. For analysis purposes, the state’s Leisure & Hospitality sector – not as tourism focused as the layperson might think – is further divided into a range of sub-sectors that include Arts, Entertainment and Recreation; Accommodation; and Food Service and Drinking Establishments. The Arts, Entertainment and Recreation sub-sector represents 13.9 percent average annual employment of the Leisure & Hospitality industry. According to economists, it’s also the smallest sub-sector and the industry’s most local component. Brewster’s The Alaska Club is listed by the state as

www.akbizmag.com • Alaska Business Monthly • October 2011

topping the list of employment heavyhitters for the sub-sector. The club, with fitness centers stretching from Fairbanks to Juneau, employs an average monthly work force ranging between 750 and 999, according to State labor analysts. With steady gains during the initial years of the current national recession, the Arts, Entertainment, and Recreation sub-sector drew back in 2009, according to State labor researchers. Employment dropped 0.5 percent in 2009 and 3.1 percent the year after. However, state labor economists point out, the sub-sector itself nonetheless grew overall, jumping by 700 jobs since 2001, reports economist Alyssa Shanks in July’s Alaska Economic Trends, a monthly labor analysis published by the Alaska Department of Labor & Workforce Development.

STABLE TRENDS IN RECREATION COMPONENT OF LEISURE & HOSPITALITY While a wide catch-all of businesses falls under the Arts, Entertainment and Recreation sub-sector – including gyms and fitness centers, pull-tab parlors, bingo halls, even intermural sports clubs – the fitness, sports and recreation centers constitute the largest portion, according to the State, representing 30 percent of the sub-sector last year. For Alaska fitness center operators particularly, the reasonable stability of their business in recent years – despite the economic downturn – is no surprise. The phenomenon, as Brewster described above, relates to Alaska’s weather and geography, aging Alaskans paying continued attention to their health, and the role that indoor fitness plays in the Alaska family. “Generally what we’re seeing in the industry is … the average health club user is becoming slightly older than they used to be,” he says. The result is likely a combination of the baby boomer bubble moving through the consumer ranks, as well as a general improvement in the education and awareness of the buying public. At the national level, the effects of the economic recession struck as the fitness industry itself was undergoing significant market change. “It is a tumultuous time Outside because, at same time (the country is) going through recession, the

consumer is more discriminating and more educated about their options,” according to Brewster, who sits on the board of directors of the International Health, Racquet & Sportsclub Association (IHRSA). As the consumer becomes better educated about health and more intent in finding both quality and value, the good clubs benefited and the poorly planned clubs suffered, he said. When consumers do find a good health club fit, that results in brand loyalty to the specific venue. “Even at the national level (and despite the overall impact of the recession on Lower 48 fitness revenue), the clubs that have been doing good work to begin with have been beneficiaries of this trend” of a more educated and informed consumer, said Brewster. “As a general rule, people are looking for value,” Brewster says. “It’s benefited some clubs and had a detrimental effect on those that didn’t have the scope of facilities or well-planned and executed program.” T.N.A.’s Morin has competed nationally in the National Physique Committee Inc.’s Figure Division competitions from Anchorage to Boston and expanded her own center’s program to include two specialized offerings hitherto not available in southern Southeast: spinning (indoor cycling) and the BodyPump program, which expands traditional one-on-one weightlifting training to the classroom form. “Living here in Southeast, we do have a lot of people who ride bikes outside,” she says. “So the spinning came in due to, of course, our weather. Now, people who enjoy biking can come to a biking class year-round, even during rainy months when outside cycling is a challenge.” In addition, Morin added nutritional information to her client offerings – simple suggestions that eating healthy will further the results earned by hard work in the gym. “A huge percentage of my people know they need to exercise. They know they need to lose weight,” she says. But the food aspect – good nutrition – is an additional critical aspect that is too often overlooked, according to Morin. The expanded program offerings are indicative of how fitness center operators are watching their market demographics closely and making programmatic adjustments to meet the

discerning expectation of their audience and client base.

FRUGAL SPENDERS CHOOSE HEALTH While it may be a reach to attempt to directly link the historic gains and overall positive status of the Arts, Entertainment and Recreation sub-sector and Alaskan’s high rate of disposable income, it probably doesn’t hurt the industry that total disposable income in Alaska rose 4 percent from 2009 to 2010, according to the U.S. Department of Commerce in a report summarized on Northrim Bank’s Alaskanomics. com. The gain represents a jump from $27.7 billion to $28.8 billion and is the fifth-fastest growing nationwide. In fact, total personal income in Alaska grew in each of the last five years, from $23.9 million in 2006. According to the department, per capita disposable income last year in Alaska hit $40,530 – eighth-highest in the U.S. and 110 percent of the U.S. average. States with higher per capita personal income include: 1. Connecticut, $48,596; 2. Massachusetts, $45,511; 3. New Jersey, $45,197; 4. Maryland, $43,753; 5. Wyoming, $43,602; 6. New York, $42,492; and 7. New Hampshire, $40,532.

A HEALTHY SECTOR WORLDWIDE IHRSA reports in May, for the first time global health club membership exceeded the 120 million mark in 2010, surpassing an industry-wide goal set by the organization more than a decade ago. More than 128 million consumers worldwide were card-carrying members of health clubs by the end of 2010, according to the report. “The fact that the health club industry was able to come out of the ‘Great Recession’ in good shape and record significant membership growth during 2010 is a testament to the resilience and innovation of the club operators, manufacturers and suppliers that fuel our vibrant industry,” said Jay Ablondi, IHRSA’s executive vice president of global products. In 2010, worldwide industry revenue reached $71 billion and the number of clubs totaled 133,500 locations. In North America, $20.3 billion was generated in revenue as 58 million members fre❑ quented 38,000 facilities.

www.akbizmag.com • Alaska Business Monthly • October 2011

139

EDUCATION

“We are fortunate that the citizens of Alaska recognize the importance of higher education.” – Bruce R. Schultz, Ed.D. ■ Vice Chancellor for Student Affairs ■ University of Alaska Anchorage

Higher Education Draws Alaskans Enrollment growing or stable at most institutions

olleges and universities across the state show a mixed record in drawing students, and some have shifted and sharpened their focus to ensure educational success. “We had the highest summer enrollment figures ever in our 26 years in Alaska,” comments Eric Ash, Ph.D., dean and executive director of Wayland Baptist University, Anchorage Campus. “We served 430 students this past summer, compared to 366 during the summer of 2010. That includes a 25 percent increase in new students and a 14 percent increase in overall enrollment. We’ve held our own in a difficult economy. Some private institutions have not fared as well.” Wayland’s average enrollment is 550 students per term, with about 150 persons graduating each year. Most finish the program, Ash says, but because most are non-traditional students with full-time careers or parenting responsibilities, they may take classes one term and sit out a term before returning. Most classes are in the evenings, often in four-hour blocks, for 11 consecutive weeks. “We’ve tried to make our program meet student needs while continuing to establish our academic reputation through word of mouth,” he explains. “Classes usually have 15 to 17 students. Your instructor is going to know your name and something about you.” Wayland’s “bread and butter” undergraduate degree is the Bachelor of Applied Science, which provides students with an opportunity to receive academic credit for supervised professional work. A private, not-for-profit

140

institution, Wayland offers a variety of undergraduate degrees including the popular Master of Arts in Management degree. The school is also known for its close working relationship with the Community College of the Air Force, of which Ash was president of before coming to Wayland; and it is fully accredited through the Commission on Colleges of the Southern Association of Colleges and Schools. Wayland offers programs on campuses throughout Alaska: the Parkview campus in Anchorage; the Wasilla Center; Joint Base Elmendorf Richardson ( JBER), Anchorage; and now Eielson AFB and Fort Wainwright, in Fairbanks. Wayland was among the first universities to initiate distance education and extension campuses. The home campus at Plainview, Texas, has a 100-year history now with 14 campuses in Texas, New Mexico, Arizona, Oklahoma, Alaska, Hawaii, and Kenya, Africa. “We’re not a seminary, and we’re not a Bible college,” Ash explains. “We are a faith-based institution of higher learning in a Christian learning environment. We do require courses in the history of the Old and New Testaments, but our student body is diverse with regard to religious background. We are open to everybody.” The Anchorage campus has five full-time faculty members who serve as heads of academic departments. There are more than 80 adjunct faculty members from the community who teach in their fields of expertise. Ash, himself, is an adjunct and teaches history, ethics, and management courses.

Photo courtesy of Wayland Baptist University

BY DIANNE O’CONNELL

Eric E i A Ash, h Ph Ph.D., D d dean and d executive ti director, Wayland Baptist University, Anchorage Campus.

CHARTER’S NEW FULL-TIMEONLY PROGRAM “We dropped from an enrollment of 700 students three years ago to 400 students today,” says Richard MacLean, president of Charter College, the largest for-profit, private institution of higher learning in Alaska. The change represented a fundamental shift in Charter’s educational philosophy when it moved from being a school primarily serving part-time students to one now requiring students to apply for a whole academic program, full-time. There are no parttime students at Charter. “Some 65 percent of our entering freshman class complete the program

www.akbizmag.com • Alaska Business Monthly • October 2011

Photo courtesy of Charter College

7 DNH , 7 W R W K H &OR X G

Let Cloud49 show you how to leverage the power and scale of the Internet to change the way you do business.

Ri h d M Richard MacLean, L president, id t Charter College, Anchorage.

That’s cloud computing.

and do so in three years,” MacLean says. “Our goal is to put people to work and to do it through a rigorous academic program – supported by a comprehensive and robust interest in each student’s success.” What makes Charter’s program unique? For one thing, there is a dress code for attending classes. “We are preparing students for professional positions,” MacLean says. “Levis are not appropriate for the workplace or for classes. We provide vouchers and a clothes closet to help students in this area, if needed.” The school also offers tutoring and has an attendance policy. “We provide free tutoring all week and on weekends,” MacLean says. “If a student is absent one day, we call them. We provide counseling and we are considering home visits. We want our students to succeed. They are customers who have paid substantial money for an education and we want to help make sure they are able to take full advantage of the opportunity. “However, if a student is absent 14 days, we dismiss them. They can reapply when circumstances improve, but it is not ethical to let them rack up a bill they can’t pay and then not complete the program,” MacLean adds. Established in 1986, the school was purchased in 1999 by Prospect Education, a West Coast learning institution with 10 campuses in southern

• Reliable and secure • A fraction of the cost • No contracts

Cloud49 provides tailored web-based solutions to meet the unique technology requirements of Alaska companies.

Could your company benefit from a cloud computing solution? Contact us for a free consultation. 1-866-588-0501 // www.cloud49.com

WƌŽĐƵƌĞŵĞŶƚ Θ ŽŶƚƌĂĐƚ ^ĞƌǀŝĐĞƐ ϯϮϵϱ ŽůůĞŐĞ ZŽĂĚ͕ ^ƚĞ ηϭϬϯ WK Žǆ ϳϱϳϵϰϬ &ĂŝƌďĂŶŬƐ͕ ůĂƐŬĂ ϵϵϳϳϱͲϳϵϰϬ ϵϬϳ͘ϰϳϰͬ͘ϱϯϭϳ

ZĞƋƵĞƐƚ ĨŽƌ /ŶƚĞƌĞƐƚ ĂŶĚ WƌĞͲ^ŽůŝĐŝƚĂƟŽŶ EŽƟĮĐĂƟŽŶ Z&W EŽ͘ ϭϮWϬϬϬϯ^ ^ ^Z ^ŽůĂƌ WĂŶĞů WƌŽũĞĐƚ dŽ͗ ^ƵƉƉůŝĞƌƐ͕ ŽŶƚƌĂĐƚŽƌƐ ĂŶĚ /ŶǀĞƐƚŽƌƐ͖ dŚŝƐ ůĞƩĞƌ ƐĞƌǀĞƐ ƚŽ ŶŽƟĨǇ Ăůů ŝŶƚĞƌĞƐƚĞĚ ƉĂƌƟĞƐ ƚŚĂƚ ƚŚĞ hŶŝǀĞƌƐŝƚǇ ŽĨ ůĂƐŬĂ &ĂŝƌďĂŶŬƐ ŝŶƚĞŶĚƐ ƚŽ ŝƐƐƵĞ Ă ZĞƋƵĞƐƚ ĨŽƌ WƌŽƉŽƐĂůƐ ĨŽƌ ƚŚĞ ^Z ^ŽůĂƌ WĂŶĞů WƌŽũĞĐƚ͘ /ƚ ĂůƐŽ ƐĞƌǀĞƐ ĂƐ Ă ƉƌĞͲƐŽůŝĐŝƚĂƟŽŶ ŽƉƉŽƌƚƵŶŝƚǇ ĨŽƌ ƐƵƉƉůŝĞƌƐ͕ ĐŽŶƚƌĂĐƚŽƌƐ ĂŶĚ ŝŶǀĞƐƚŽƌƐ ŝŶ ƚŚĞ ĐŽŵŵƵŶŝƚǇ ƚŽ ƉƌŽǀŝĚĞ ĨĞĞĚďĂĐŬ ƚŽ ƚŚĞ hŶŝǀĞƌƐŝƚǇ ŽĨ ůĂƐŬĂ &ĂŝƌďĂŶŬƐ ƌĞŐĂƌĚŝŶŐ ƚŚĞ ĚĞƐŝŐŶ ƉĂĐŬĂŐĞ͕ ĐŽŶƚƌĂĐƚ ŐĞŶĞƌĂů ƉƌŽǀŝƐŝŽŶƐ͕ ƉƌŽũĞĐƚ ƐĐŚĞĚƵůĞ͕ ǁŝƚŚ ŝŶǀĞƐƚŵĞŶƚ ĂŶĚ ƚĂǆ ĐƌĞĚŝƚ ŽƉƉŽƌƚƵŶŝͲ ƟĞƐ ǁŚŝĐŚ ǁŝůů ďĞ ŝŶĐůƵĚĞĚ ŝŶ ƚŚĞ ZĞƋƵĞƐƚ ĨŽƌ WƌŽƉŽƐĂůƐ͘ dŚĞ hŶŝǀĞƌƐŝƚǇ Žƌ ůĂƐŬĂ &ĂŝƌďĂŶŬƐ ;h &Ϳ ŚĂƐ ĂĚŽƉƚĞĚ ƐƵƐƚĂŝŶĂďŝůŝƚǇ ĂƐ ŽƵƌ ƚĂƌŐĞƚĞĚ ĞŶĞƌŐǇ ƉƌŽĮůĞ ǁŝƚŚ ĞŵƉŚĂƐŝ ŽŶ ƉƵďůŝĐͲƉƌŝǀĂƚĞ ƉĂƌƚŶĞƌƐŚŝƉƐ ƚŚĂƚ ŽƉƉŽƌƚƵŶĞ ƚĂǆ ĐƌĞĚŝƚƐ ĨŽƌ ƚŚĞ ŝŶǀĞƐƚŽƌ͘ dŚĞ ƐŽůĂƌ ƉĂŶĞů ƉƌŽũĞĐƚ ǁŝůů ĂĚĚŝƟŽŶĂůůǇ ƉƌŽǀŝĚĞ ĨŽƌ Ă ŚŝŐŚ ǀŝƐŝďŝůŝƚǇ ĂĚǀĞƌͲ ƟƐŝŶŐ ŵĞĚŝƵŵ ƚŽ ĞǆƚŽů ƚŚĞ ŝŶǀĞƐƚŽƌ͛Ɛ ĞīŽƌƚƐ͘ dŚĞ KĸĐĞ ŽĨ ^ƵƐƚĂŝŶĂďůŝůƚǇ ŚĂƐ ŝŶĨŽƌŵĂƟŽŶ ĂǀĂŝůĂďůĞ Ăƚ ǁǁǁ͘ƵĂĨ͘ĞĚƵͬƐƵƐƚĂŝŶĂďŝůŝƚǇͬƌŝƐĞͬƉƌŽũĞĐƚƐͬƐŽůĂƌͬ͘ ZĞǀŝĞǁ ƚŚĞ ĚĞƉĂƌƚŵĞŶƚ͛Ɛ ǀŝƐŝŽŶ͕ ũƵƐƟĮĐĂƟŽŶ ĂŶĚ ĨƵƚƵƌĞ ƉƌŽũĞĐƚƐ Ăƚ ƚŚĞ ǁĞďƐŝƚĞ͘ dŚŝƐ ŶŽƟĐĞ ŝƐ ĂŶ ŽƉƉŽƌƚƵŶŝƚǇ ĨŽƌ ƚŚĞ ĐŽŵŵƵŶŝƚǇ ƚŽ ƉƌŽǀŝĚĞ ĐŽŵŵĞŶƚƐ ƚŽ h & ĂŶĚ ĞǆƉƌĞƐƐ ŝŶƚĞƌĞƐƚ ŝŶ ƚŚĞ ƉƌŽƉŽƐĞĚ ƉƌŽũĞĐƚ͘ WĞƌƟŶĞŶƚ ĚŽĐƵŵĞŶƚƐ ŝŶĐůƵĚŝŶŐ ĂĐĐĞƐƐ ƚŽ ƚŚĞ ĮŶĂů ƐŽůŝĐŝƚĂͲ ƟŽŶ ƉĂĐŬĂŐĞ ŵĂǇ ďĞ ĚŽǁŶůŽĂĚĞĚ Ăƚ ŽƵƌ ƉƌŽĐƵƌĞŵĞŶƚ ǁĞďƐŝƚĞ͘ /ŶƚĞƌĞƐƚĞĚ ƉĂƌƟĞƐ ƐŚŽƵůĚ ƉƌŽǀŝĚĞ ĐŽŵŵĞŶƚ;ƐͿ ĂŶĚ ĐŽŶƚĂĐƚ ŝŶĨŽƌŵĂƟŽŶ ƚŽ h & WƌŽĐƵƌĞͲ ŵĞŶƚ ĂŶĚ ŽŶƚƌĂĐƚ ^ĞƌǀŝĐĞƐ͕ ƩĞŶƟŽŶ ^ĐŽƩ ͘ ^ŶĞĚĚŽŶ͕ ďǇ ĨĂǆ Ăƚ ;ϵϬϳͿ ϰϳϰͲϳϳϮϬ Žƌ ĞŵĂŝů ƚŽ ŚŵƐĞŝůĞƌΛĂůĂƐŬĂ͘ĞĚƵ ;ĞŵĂŝů ŝƐ ƉƌĞĨĞƌƌĞĚͿ͘ ĂĐŚ ĐŽŵŵĞŶƚ ƐƵďŵŝƐƐŝŽŶ ƐŚŽƵůĚ ŝŶĐůƵĚĞ ƚŚĞ ĐŽŵƉĂŶǇ ŶĂŵĞ͕ ĐŽŶƚĂĐƚ ŶĂŵĞ͕ ĂŶĚ ĐŽŶƚĂĐƚ ŝŶĨŽƌŵĂƟŽŶ ĂůŽŶŐ ǁŝƚŚ ƚŚĞ ĐŽŵŵĞŶƚ;ƐͿ͘ WŽƚĞŶƟĂů ŽīĞƌĞƌƐ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ƌĞĐĞŝǀŝŶŐ Ă ĐŽƉǇ ŽĨ ƚŚĞ Z&W ƐŚŽƵůĚ ƌĞƐƉŽŶĚ ďǇ ƉƌŽǀŝĚŝŶŐ ƚŚĞ ŝŶĨŽƌŵĂƟŽŶ ƌĞƋƵĞƐƚĞĚ Ăƚ ƚŚĞ h & WƌŽĐƵƌĞŵĞŶƚ ĂŶĚ ŽŶƚƌĂĐƚ ^ĞƌǀŝĐĞƐ ǁĞďƐŝƚĞ͘ ǁǁǁ͘ƵĂĨ͘ĞĚƵͬƉƌŽĐƵƌĞŵĞŶƚͬůŝŶŬͲĨŽƌͲĐŽŵŵƵŶŝƚǇͲĂŶĚͲǀĞͬĐƵƌƌĞŶƚͲƐŽůŝĐŝƚĂƟŽŶƐͬ͘ dŚĂŶŬ ǇŽƵ ĨŽƌ ǇŽƵƌ ƉĂƌƟĐŝƉĂƟŽŶ ĂŶĚ ŝŶƚĞƌĞƐƚ ŝŶ h &͛Ɛ ƐƵƐƚĂŝŶĂďůĞ ĞŶĞƌŐǇ ƉƌŽũĞĐƚƐ͘

www.akbizmag.com • Alaska Business Monthly • October 2011

141

California, Washington state and Alaska. The full-time-only education model and emphasis on graduation and job placement rates came from Prospect. The actual curriculum is designed and re-designed through several local public advisory committees.

rates are at the national average for private universities. “APU has one of the smallest facultyto-student ratios in the country. At the University of Washington, for instance, an introductory biology course may have one faculty member lecturing to

concurrently providing college freshmen-level instruction. Students completing this honors experience enter college (20 percent of them go on to attend APU) as sophomores and are able to complete the requirements for their bachelor’s degree in three years.

“At APU, our introductory biology course will have one faculty to nine students, and you’ll find them out at Potter Marsh doing research.” – Dr. Don Bantz ■ President ■ Alaska Pacific University Charter’s enrollment figures are expected to rise, MacLean predicts, and the school has more programs in the works. A welding, heating, ventilation, air conditioning and refrigeration program began this fall, and a new information technology programming track will begin in November or December. The college is in the final stages of approval and accreditation for a Master of Business Administration, a “hybrid” program to be offered half online and half on-campus. The school also is seeking approval for a two-year nursing degree program with foundational courses being offered in the villages, and lab, technical, and clinical experience offered in Anchorage.

PERSONALIZED LEARNING

Photo by Greg Martin/Courtesy of Alaska Pacific University

Alaska Pacific University provides a quality, practical liberal arts education, within small, active learning communities, with an emphasis on personalized instruction. APU’s private tuition

Dr. Don Bantz, president, Alaska Pacific University.

142

a sea of 700 students in a campus auditorium. At APU, our introductory biology course will have one faculty to nine students, and you’ll find them out at Potter Marsh doing research,” said Don Bantz, president. APU currently offers undergraduate and graduate degrees in business administration; counseling psychology and human services; environmental sciences; education; outdoor and environmental education; and liberal studies. In terms of enrollment, APU’s largest programs are business; environmental science, which includes marine biology; and counseling psychology. This past summer, 10 students attended the first class in the newly launched doctoral program in psychology. In recent years, APU has initiated a liberal arts based pre-medicine program and has re-tooled its Master of Business Administration, now offering a hybrid format, part online and part on-campus. Concerned about students’ academic readiness before entering college, APU is planning several residential summer camp experiences for high school students in their junior and senior years. Such preparatory experiences further encourage student success rates in terms of retention and degree completion. APU maintains an intense interest in meeting the academic needs of Alaska Native students, and has established an Institute of Village Resilience, a “college within the university” designed to grow and train Native leadership. APU also sponsors an “Early Honors” program for highly motivated high school seniors. During their senior year, these students participate in a university-level curriculum, which meets the graduation requirements for the Anchorage and MatanuskaSusitna Borough school districts while

“Our enrollment over the past few years has held steady at about 700 students,” Bantz says. “Considering the financial climate for small nonprofits, this is very good. Reduced financial aid funding, of course, affects our retention rate.” Bantz said Alaska State aid in the form of student loans has declined from $850,000 in 2008 to $150,000 in 2010. With the closing of Sheldon Jackson College in Sitka, APU is the last remaining, private nonprofit baccalaureate university based in Alaska. Chartered in 1957, it opened its doors in 1960 as Alaska Methodist University.

UAA TARGETS EDUCATED WORK FORCE Alaska’s private schools of higher learning have their place and their missions, but the University of Alaska, and most particularly the University of Alaska Anchorage, has a broader mission: to meet statewide needs for higher education and provide Alaska with an educated work force. The numbers indicate success. Between the fall of 2000 and 2010, UAA and its community campuses – in the Matanuska-Susitna Borough, Kenai Peninsula, Valdez and Kodiak, experienced a 13 percent increase in enrollment, a little more than 1 percent a year. When all the numbers are in, the school expects to follow the same trend this fall, according to Bruce R. Schultz, Ed.D., vice chancellor for student affairs. The exact fall 2010 number for UAA was 20,559 students and for the statewide University of Alaska system, 34,480. “We are fortunate that the citizens of Alaska recognize the importance of higher education,” Schultz said. “Some states have experienced a drastic loss

www.akbizmag.com • Alaska Business Monthly • October 2011

Photo courtesy of UAA

of funding, necessitating raising tuition by more than 40 percent.” Schultz attributes the ever-increasing enrollment figures to several factors, increase in population being one.

Bruce R. Schultz, Ed.D., vice chancellor for student affairs, University of Alaska Anchorage.

“Historically, enrollment patterns are counter cyclical to the economy,” he said. “When the economy goes down, enrollment goes up. People can’t find work, so they return to school to enhance their skills and marketability. “Our numbers are up also because we take student retention very seriously. Seventy percent of our first-time, full-time certificate- and degree-seeking students come back for the second year, which is above the national average for similar institutions. That number was less than 58 percent just 10 years ago.” Another measurement of success is the number of certificates and degrees an institution awards. UAA hit an all time high during the 2011 academic year, awarding 2,295 certificates and degrees, 55 percent more than 10 years ago. Twenty-six percent of those graduates obtained degrees or certificates in health-related fields. Other highdemand job areas included business management and finance, engineering, teaching, information technology,

natural resources, process technology, transportation and construction. UAA is the largest provider of work-force education and training in the state of Alaska, Schultz says. “We also continue to actively work with our community partners to ensure we’re offering the right sort of education for Alaska’s future,” he added. “In September 2011, we were designated, for the third year in a row, as a military-friendly school, which means we ranked in the top 15 percent nationwide in meeting the needs of our military students. Last year some 1,700 active-duty military and veterans attended UAA. “Academic distinction is highly regarded at UAA and we have very strong undergraduate research and honors programs,” Schultz explains. “Meeting the needs of incoming underprepared students is one focus, but we are equally focused on designing and tailoring educational experiences for those who are academically wellprepared. We’ve received national recognition for our research-oriented honors programs and last year we had ❑ four Fulbright scholars.

www.akbizmag.com • Alaska Business Monthly • October 2011

143

MANUFACTURING

Alaska Brands Group Revives Bottling Company Firm eyes markets in Lower 48, Asia for local water

BY STEPHANIE JAEGER

Founder and Chairman Greg Galik and President and CEO Lynn Allingham are proud of building a business that continues Mat Maid’s tradition of manufacturing.

laska Brands Group is a company of Anchorage entrepreneurs who are dedicated to the development and marketing of unique Alaska food and beverage products. Greg Galik, the company’s founder and chairman, established the group

144

10 years ago in accordance with his belief that Alaska’s economy could become more self-sufficient and experience fewer fluctuations if local foods and beverages could be marketed to consumers in the Lower 48 and abroad. Alaska needs to diversify

its own companies and promote their products around the world, he said. He and his wife have already revived and improved Matanuska Maid’s bottled water factory and transformed it into Alaska Brands Group’s first industry. “Clearly Arctic” bottled water was first produced and sold by Matanuska Maid in 1998 and became well known before its closure in 2007. Having been involved in its marketing and development since its beginning in the late 1990s, Galik and his wife, Lynn Allingham, decided to buy and bring back Matanuska Maid’s bottled water capability in 2008. Unfortunately because of the recession, they were unable to fully finance this project until 2010. It also took most of these two years to engineer and install the equipment they needed and to satisfy all the requirements for the permits the Municipality of Anchorage demands before such a facility can operate. The first bottles of Alaska Brands Group’s new “Clearly Arctic” bottled water finally rolled off the line on Feb. 1 of this year. Clearly Arctic can be bought at Alaska Tesoro stores and in some coffee shops, hotels and small restaurants, Galik said. The factory also produces the same water under the label of “Clearly Alaskan” for export overseas. Currently, “Clearly Alaskan” is sold in Hong Kong, Taipei, Tokyo, Bangkok and Singapore. The same water is also sold in special glass bottles that incorporate a small LED light to give the product an “aurora blue glow,” and it’s called “Crystal Glacier Water.” Developed by Larry Murray and Gil Serrano, this special bottle is available in premium hotels and restaurants

www.akbizmag.com • Alaska Business Monthly • October 2011

in Alaska and the Lower 48, and has been shipped to an international hotel chain and a major resort hotel in Las Vegas. ABG planned to begin exporting “Crystal Glacier Water” to Asia in September. “Crystal Glacier Water”, with its blue LED light, is a special keepsake that can be collected to commemorate special occasions such as proposals, weddings and important government or business celebrations. So far this year, it has been popular with tourists visiting Alaska.

GLACIER WATER Alaska Brands Group gets its water from Eklutna Lake, an 8-mile-long lake created by the melting of Eklutna Glacier in Alaska’s Chugach National Park. From there, the water is transported by truck to ABG’s manufacturing facility in the old Matanuska Maid plant on Northern Lights Boulevard in Anchorage. In this building, the water is first filtered through charcoal, removing pollutants and inorganic chemicals that could make the water cloudy and destroy its fresh taste. Then it is disinfected with ozone, one of the most efficient agents available to kill bacteria, Giardia, viruses and other harmful microorganisms including cryptosporidium (an organism that causes diarrhea, especially in people with impaired immunity), which is not destroyed by chlorine. The final product is slightly alkaline with a pH of 7.8, and each liter (approximately a quart) contains 25 milligrams of calcium, 5 mg. of magnesium, 1.3 mg. of chloride, 20 mg. of sulfate and less than 0.2 mg. of nitrate. “Our water does not contain chlorine and fluoride like tap water does,” Galik said. “Some people do not like the taste of chlorine and are concerned about possible harm from drinking water that contains fluoride. Our water doesn’t contain the chemicals that can be leached from the pipes it must travel through to get to household water taps.” ABG’s bottled water meets or exceeds the Environmental Protection Agency’s Maximum Contaminant Levels requirements.

PRODUCING BOTTLES Not only does ABG treat their own water, they also make their own bottles. Their plastic bottles are more environmentally friendly than most

The Alaska Crystal Glacier product in glass has been a hit in the lower 48 and international markets. The glacier glow in the bottle comes from an LED light in the base of each bottle.

bottles used in the bottled water industry. “The bottles arrive at the factory as small test-tube shaped pieces of plastic,” Galik said. “Our equipment blows them into bottles.” These bottles are made of PET 1 plastic, but they have had a special plastic binding chemical added to them called Enso. Enso is a biodegradable material that can be digested by microorganisms found in landfills, and it reduces the time needed to degrade the plastic from the usual 500 years to much shorter times under certain conditions. These bottles can also be recycled and their plastic can be made into other products at most recycling facilities. ABG’s conveyor belts load, wash, fill, cap, label and shrink bundle the finished product before it is shipped overseas or transported to local stores, restaurants and hotels. On Sept. 23, the International Bottled Water Association recognized Alaska Brands President and Chief Executive Officer Lynn Allingham as a certified plant operator. This certification means Allingham has shown proficiency in the plant’s manufacturing practices, hazard analysis, food safety management, water treatment technology, product quality and record keeping. In order to receive this certification, Allingham had to pass a difficult and extensive examination demonstrating

her advanced level of experience and education in the bottled water plant’s operations. Allingham is also certified by the State of Alaska as a small treated water systems operator, a requirement of the Alaska Department of Environmental Conservation. ABG’s bottled water is portable water that can be transported easily on trips into remote areas. Visitors to Alaska as well as Alaska residents heading for an outdoor adventure – whether in a local park or a remote backcountry area – may like the idea of being able to take Alaska water with them instead of something transported from the Lower 48, Galik said. ABG’s bottled water company has been in business for seven months, so it is too early to say if they will reach their sales goals over the long term, Galik said. “My plan is to expand select markets and place our products in these markets,” he added. “We want to develop relationships around the world, not become a large production company.” Other Alaska products Galik would like to see developed and exported abroad and to the Lower 48 include those made with black currants and rhubarb. Galik’s long-term goals are to create diverse markets for many Alaska products and to increase Alaska’s manufacturing and marketing ❑ opportunities around the world.

www.akbizmag.com • Alaska Business Monthly • October 2011

145

MARKETING WORKS

BY RON “CAT” MASON

Effective Social Marketing Using push and pull networking

here is never a wrong time to use “push and pull” networking. Push and pull networking allows job seekers and business owners to socially market themselves and their businesses. Push and pull networking can be an effective means of marketing that will deliver the desired self-promotion message in front of an ideal employer and other businesses. The main advantage of push and pull networking is having control of the message that is to be sent, how it’s seen, along with the when and where.

to network, a basic rule of thumb is to always make sure to have plenty of business cards to hand out; in doing so the relationships will start to develop. By acquiring information from these new contacts, along with the continuous updating of the database, the circle of influence will continue to expand. The networking database needs to have in-depth information based on interacting and communicating with potential employers and other business people with similar interest, and should include the following:

PUSH Some current forms of “push” networking are online venues such as Facebook, Twitter and LinkedIn. Large, medium and small companies are becoming more involved in online social networking sites to look for good prospects for employment and business contacts. Networking on these sites increases opportunities to connect with businesses looking for qualified professionals to employ. Online social networking sites are a great way to attract a business’ target market as well, and best of all it is free.

PULL “Pull” networking consists of getting involved in activities that will give more visibility to prospective employees and business owners. The purpose of pull networking is to have the prospective employers seek out and find a possible candidate who may have something of value to offer them. Pull networking activities encourages the building of business relationships. These activities can, and should, include blogging, podcasting and networking – online and offline. Pull networking has the ability to attract contacts by attending different social venues that will place a name and face out there in the business world. Examples of easily

146

Ron “Cat” Mason

implemented pull networking include attending job fairs, chamber events and trade shows.

NETWORKING Networking should be a constant and never-ending activity when talking to people in social situations, to include standing in line at the grocery store. The best place to start developing a push and pull network is with family, friends and neighbors – and with “their” family, friends and neighbors. Push and pull network with co-workers, colleagues in the same business field, and people met at industry gatherings, such as trade shows and conferences. Make contact with former co-workers, as well as others in your circle of influence. Once the initial contact is made, nurture these contacts to turn them into fruitful relationships.

NURTURING Nurturing these connections will require the development and maintenance of a database, which allows for current information of these contact leads. When going to different venues

■ Who was the person contacted (including relevant biographical information) ■ Who made the initial contact (yourself or someone else) ■ When ■ How ■ Where ■ Personal observations ■ Outcome of meeting and what follow up actions are needed ■ Recommended names to contact (names received from contact)

FOLLOW UP When attending networking events and meeting potential contacts, follow-up as soon as possible with a written note or an email that thanks the contact(s) for the pleasure of having met them. Remember push and pull networking is a vital component of any marketing plan. ❑ About the Author Ron “Cat” Mason is the founder and CEO of CM&A Consulting LLC; a consulting firm that specializes in marketing strategies and personal selling training. For more information about CM&A Consulting LLC, go to www.cmamarketing.info.

www.akbizmag.com • Alaska Business Monthly • October 2011

TRAVEL & TOURISM

Photo by Wayde Carroll/Courtesy of ACVB

The Alaska Zoo in Anchorage attracts tourists and locals.

Revitalizing the travel and tourism industry BY LOUISE FREEMAN

t was a banner year for Alaska tourism in 2008. The number of outof-state visitors reached a high of 1.7 million. With the downturn in the economy, tourism fell by 7.3 percent in 2009. It fell again in 2010 to 1.5 million as five cruise ships were deployed elsewhere. Since then, the travel and tourism industry has started to rebound. The number of people coming to Alaska by highway and ferry increased in 2010 for the first time in years. Many localities have seen a slight increase in both leisure and business travel in the last two years, although they have not, for the most part, returned to 2008 levels.

Some of the credit for this recovery can be given to the sustained efforts throughout the state of numerous convention and visitors bureaus, referred to as CVBs. Funded by local bed taxes and membership fees, CVBs vary in size, organization and marketing strategies. But all CVBs share a common function: to promote their community as a destination, attracting both individuals and conferences. CVBs play a vital role in bringing both leisure and business travel to Alaska. These organization offer training to travel agents and tour operators, bring meeting planning com-

mittee members to town to see what facilities and activities are available, and work closely with the media. They serve as the first point of contact for individual travelers through printed travel planning guides, websites and visitors’ centers.

ALASKA JUNKETS DRAW FROWNS Since 2009 Alaska, as a location for conventions and meetings, has run into “the AIG Effect,” said Helen Renfrew, director of meetings and conventions at the Fairbanks CVB. “Alaska and Hawaii are starting to be considered junkets, exotic locations. The cost of

www.akbizmag.com • Alaska Business Monthly • October 2011

147

Hold your next meeting in picturesque Juneau, Alaska and receive 25,000 Alaska Airlines Mileage Plan Miles*. • Daily jet service on Alaska Airlines • Top-notch dining and catering services • 20,000 sq. ft. Centennial Hall Convention Center • Comfortable and affordable lodging and meeting facilities for up to 600 attendees

Not only will you enjoy all of the GLACIERS, WHALES and WILDERNESS Juneau has to offer, but you will also be rewarded with enough Mileage Plan Miles to come back and visit again!

*Call today for mileage program details and your FREE Juneau Meeting Planner Guide

Juneau Convention & Visitors Bureau • 1-800-587-2201 • www.traveljuneau.com

148

traveling that far is starting to be questioned now because of a backlash in the industry about travel. Organizations are aware of the perception about where they have their meetings.” The AIG Effect refers to corporate America’s reluctance to spend money on travel and meetings after the negative publicity generated by insurance industry giant AIG spending $443,000 at a California luxury resort days after receiving $85 billion in TARP bailout funds in September 2008. The Anchorage CVB has fought the “AIG effect” by working to overcome misperceptions about Anchorage’s cost and distance compared to other potential convention locations in the Lower 48. The lack of a state sales tax is a big selling point to meeting planners, said Julie Saupe, ACVB chief executive officer. “With food, beverage and the cost of everything meeting planners buy, such as audio-visual rental, if you pull off the sales tax, we come across very favorably, compared with the larger cities in particular. We really help them see there is value in Anchorage, plus delegates are very interested in attending an event here.” Conventions bring in an average of $100 million to Anchorage per year. The USA/CA Lions Leadership Forum came to Anchorage in September. With 3,500 attendees, it was the largest international meeting ever held here. ACVB is now putting out proposals for large meetings to be held in 2016 and 2017. Anchorage saw an uptick in travelers last year. Bed tax revenues rose 7 percent and car rental tax revenues were up 8 percent in 2010, with slight increases expected this year. Some growth is attributed to Holland America making Anchorage a port of call for the first time in 2010, with Silver Seas and Oceana adding Anchorage to their itinerary this year. ACVB works extensively with travel agents, presenting training sessions to approximately 3,000 agents a year. “We motivate and educate them to sell Anchorage,” said Saupe, with an emphasis on how to sell pre- and post-cruise stays in Anchorage. To reach travel agents, ACVB representatives travel to between 30 and 40 trade shows a

www.akbizmag.com • Alaska Business Monthly • October 2011

year, including the National Travel Association convention and the American Bus Association conference for motor coach operators. The Anchorage CVB has 1,140 members, the majority from Anchorage, but also with many from across the state. “We offer a good marketing program, good traffic through our visitor information center and they want to be in our visitors’ guide,” said Saupe. Many CVBs in the state offer “trade-off memberships,” in which they become members of each other’s CVB. “The communities really cross-promote each other,” she added.

DIVERSITY IN TRAVELERS South America is a new market ACVB is developing. “We’re pretty excited about it,” said Saupe. “It is a market that is realizing they have some discretionary income and are able to start traveling.” She also noted a trend in the last few years has been for more multi-generational travel, with extended families traveling to Alaska for special events such as family reunions and anniversaries. “We’re seeing lots more kids coming to Alaska than we did five or six years ago.” ACVB has responded to this trend by pitching story ideas to publications such as Chicago Parent, as well as to family oriented websites and bloggers. ACVB also offers suggestions for family friendly activities in and around Anchorage on its extensive website, including short video travel features presenting an “offbeat and colorful view of Anchorage and Southcentral Alaska.” ACVB, with its large membership and ample tax base has a large enough budget to market broadly. CVBs in smaller communities, however, often have to focus their marketing efforts more narrowly, developing strength in one particular area. The Juneau CVB relies heavily on broadcast and print media. “Press public relations is the keystone to our leisure marketing,” said Lorene Palmer, JCVB CEO. They work closely with the media, doing everything from factchecking to organizing press trips. They also contract with a travel media company that puts out press releases to their database members. The success of JCVB’s efforts is monitored by

tracking the mention of Juneau in the media. Developing social media has not been a priority for JCVB. “It is labor intensive to maintain that social conversation,” said Palmer. “It takes much time and staff to build an audience and keep it engaged.” Kodiak, in contrast, has a sizable presence on the Internet, boasting the largest number of friends on Facebook – more than 9,000 – of any community in the state. “We worked very hard to develop content to be at the forefront of social media,” said Janet Buckingham, executive director of the Kodiak

Island CVB. “I post something every day to keep in communication with our friends.” She says she prefers to do most of the posting herself rather than delegate the task, because “it is important how you communicate with friends and I enjoy doing it.” Buckingham says Facebook provides a convenient forum for visitors to share their experiences, and “everyone has a good story, a happy story to tell about Kodiak. Other people come to the site and read those stories and see the great photos. It’s like having a world-wide marketing arm.”

Welcome to

KETCHIKAN

Your Alaska Destination for Meetings and Events. The place where you can accomplish your agenda, while nurturing your soul.

Ketchikan Visitors Bureau Helping to serve all your event needs.

+MTMJZI\QVO \PM ¹AMIZ WN \PM )Z\Q[\º

www.meetinalaska.com www.facebook.com/Ketchikan

www.akbizmag.com • Alaska Business Monthly • October 2011

149

KICVB markets Kodiak as an authentic working town. “That we are a commercial fishing village more than a tourist destination is one of the draws. People are looking for that authenticity in the travel experience,” said Buckingham. They also capitalize on the presence of what Buckingham called the “legendary Kodiak bear.” “We are pretty fortunate to have the Kodiak bear that no one else does. It is a big marketing tool. The bear does a lot of our hard work for us.” Kodiak has enjoyed a 14 percent increase in bed tax in the last three years. Some of that may be attributable to the popularity of the reality show “Deadliest Catch,” which has drawn attention to Kodiak because four boats on the program have ported there.

150

Photo by Wayde Carroll/Courtesy of ACVB

IDENTITY IS CVB GOAL Each CVB works to establish an identity for its community and to promote the advantages of its location. The Juneau CVB identifies itself as the capital city and educates meeting planners about Juneau’s accessibility from Anchorage. “Being the capital city is a good way to identify the city and define its role. People are interested in visiting the Alaska Capitol,” said Palmer. The Fairbanks CVB emphasizes the friendliness of the community and the appropriateness of the location for conferences related to northern topics such arctic research, cold-weather testing and sports such as curling and crosscountry skiing. “One of the benefits of getting people here at a meeting is to expose them to Alaska as a destination. There is so much more to see and do than they can pack in and so they come back,” said Renfrew. Conferences brought $3.25 million to Fairbanks from January to June of this year. Fairbanks has been chosen as the site of the Outdoor Writers Association of America convention in 2012, the first time the organization will have come to Alaska in their 85-year history. More than 250 outdoor, travel and adventure writers, as well as press from radio and television, will be attending the event at Chena Hot Springs Resort. “Our goal is they’ll have so much fun they’ll go home and write about Fairbanks in publications across the world,” said Renfrew.

Sledding is a favorite wintertime activity statewide, and brings quality of life to communities.

The Fairbanks CVB also works with the University of Alaska to bring groups to town, such as the Mycological Society of America, which had their annual conference in Fairbanks this August. The CVB worked with a UAF professor who belongs to the society, helping put together a packet including bid materials and quotes from hotels and excursions. Often the CVB will invite an organization’s board to Fairbanks for a site inspection. Once they’ve chosen Fairbanks as a site, a CVB staff member will attend the current year’s con-

ference to drive members’ interest in coming to Fairbanks the following year. “The more people attend, the more successful for the organization and the better the economic impact for the community,” said Renfrew. To attract individual travelers, the Fairbanks CVB participates in four or five consumer shows a year, focusing on the larger markets such as the New York Times Travel Show and the Los Angeles Travel and Adventure Show. To market Fairbanks to international visitors, the CVB partners with the

www.akbizmag.com • Alaska Business Monthly • October 2011

Photo by Helen Thomas/Courtesy of ACVB

Alaska Travel Industry Association. Smaller convention and visitors bureaus throughout the state rely on ATIA to represent their communities around the world. Some of the larger CVBs, such as Fairbanks and Anchorage, offer workshops on the ATIA “sales missions” to Japan, Europe and Australia, holding receptions and doing presentations to tour operators and travel agents. “By doing these workshops, we see an increase each year,” said Renfrew. “We help them create better package tours to be exactly what their clients are looking for.” The Fairbanks CVB is also capitalizing on the new presence of Edelweiss Air, which is now flying into Anchorage. “We’re really working on the German-speaking market, particularly our Swiss market. We’re maximizing the potential by hosting familiarization tours with Swiss and German tour operators,” said Renfrew. Whether they are attracting the independent traveler on a budget, a multi-generational family splurging on a once-in-a-lifetime trip, or a national or even international

Nothing beats a girl and her dog during wintertime.

convention, CVBs are performing a valuable role in revitalizing the travel industry in Alaska. “One important thing about CVBs is they bring primary dollars into town,” said

Palmer. “What motivates me is that new dollars help people stay employed and that is the heart of economic development, to inject new ❑ dollars from outside.”

www.akbizmag.com • Alaska Business Monthly • October 2011

151

ALASKA CHAMBER & CVB DIRECTORY Alaska State Chamber of Commerce Rachael Petro, President/CEO 630 E. Fifth Ave., Ste. 102 Anchorage, AK 99501 Phone: 907-278-2722 Fax: 907-278-6643 www.alaskachamber.com info@alaskachamber.com Anchor Point Chamber of Commerce Jonni Roos, Chamber Assistant PO Box 610 Anchor Point, AK 99556 Phone: 907-235-2600 Fax: 907-235-2600 www.anchorpointchamber.org info@anchorpointchamber.org Anchorage Chamber of Commerce Sami Glascott, President 1016 W. Sixth Ave., Ste. 303 Anchorage, AK 99501 Phone: 907-272-2401 Fax: 907-272-4117 www.anchoragechamber.org info@anchoragechamber.org Anchorage Convention & Visitors Bureau Julie Saupe, President/CEO 524 W. Fourth Ave. Anchorage, AK 99501 Phone: 907-276-4118 Fax: 907-278-5559 www.Anchorage.net info@anchorage.net Bethel Chamber of Commerce Jerry Drake, President PO Box 329 Bethel, AK 99559 Phone: 907-543-2911 Fax: 907-543-2255 www.bethelakchamber.org bethelchamber1@alaska.com Big Lake Chamber of Commerce Randi Perlman, Executive Director PO Box 520067 Big Lake, AK 99652 Phone: 907-892-6109 Fax: 9070-829-6189 www.biglakechamber.org biglake@mtaonline.net Chugiak-Eagle River Chamber Susan Gorski, Executive Director 12001 Business Blvd., Ste. 108 Eagle River, AK 99577 Phone: 907-694-4702 Fax: 907-694-1205 www.cer.org info@cer.org Cooper Landing Chamber of Commerce & Visitors Bureau Cheryle James PO Box 809 Cooper Landing, AK 99572 Phone: 907-595-8888 Fax: 907-595-8888 www.cooperlandingchamber.com info@cooperlandingchamber.com Copper Valley Chamber of Commerce Robert Ulrich, President PO Box 469 Glennallen, AK 99588

152

Phone: 907-822-5555 Fax: 907-822-5558 www.traveltoalaska.com info@traveltoalaska.com Cordova Chamber & Visitor Center Martin Moe, Executive Director PO Box 99 Cordova, AK 99574 Phone: 907-424-7260 Fax: 907-424-7259 www.cordovachamber.com visitcordova@ak.net Delta Chamber of Commerce Brenda Peterson, Executive Director PO Box 987 Delta Junction, AK 99737 Phone: 907-895-5068 Fax: 907-895-5141 www.deltachamber.org deltacc@deltachamber.org Dillingham Chamber of Commerce Pamela Sadloslly PO Box 348 Dillingham, AK 99576 Phone: 907-842-5115 Fax: 907-842-4097 www.dillinghamak.com dlgchmbr@nushtel.com Fairbanks Convention & Visitors Bureau Deb Hickok, President/CEO 101 Dunkel St., Ste. 111 Fairbanks, AK 99701 Phone: 907-459-3765 Fax: 907-459-3787 www.explorefairbanks.com info@explorefairbanks.com Girdwood Chamber of Commerce Bud Gibbs, President PO Box 1313 Girdwood, AK 99587 Phone: no phone Fax: no fax www.girdwoodchamber.com girdwoodchamber@gmail.com

Greater Sitka Chamber of Commerce Jennifer Robinson, Executive Director PO Box 638 Sitka, AK 99835 Phone: 907-747-8604 Fax: 907-747-7413 www.sitkachamber.com jen@sitkachamber.com Greater Wasilla Chamber of Commerce Lyn Carden, Executive Director 415 E. Railroad Ave. Wasilla, AK 99654 Phone: 907-376-1299 Fax: 907-373-2560 www.wasillachamber.org contact@wasillachamber.org Haines Chamber of Commerce Zbigniew “Ned” Rozbicki, President PO Box 1449 Haines, AK 99827 Phone: 907-766-2202 Fax: 907-766-2271 www.haineschamber.org chamber@haineschamber.org Haines Convention & Visitors Bureau Lori Stepansky, Executive Director PO Box 530 Haines, AK 99827 Phone: 907-766-2234 Fax: 907-766-3155 www.haines.ak.us hcvb@haines.ak.us Homer Chamber of Commerce Monte Davis, Executive Director 201 Sterling Hwy. Homer, AK 99603 Phone: 907-235-7740 Fax: 907-235-8766 www.homeralaska.org info@homeralaska.org Houston Chamber of Commerce PO Box 356 Houston, AK 99694 Phone: 907-373-0826 Fax: 907-892-0829

Greater Fairbanks Chamber of Commerce Lisa Herbert, Executive Director 100 Cushman St., Ste. 102 Fairbanks, AK 99701 Phone: 907-452-1105 Fax: 907-456-6968 www.fairbankschamber.org info@fairbankschamber.org

Juneau Chamber of Commerce Cathie Roemmich, CEO 3100 Channel Dr., Ste. 300 Juneau, AK 99801 Phone: 907-463-3488 Fax: 907-463-3489 www.juneauchamber.com juneauchamber@gci.net

Greater Ketchikan Chamber of Commerce Blaine Ashcraft, Executive Director PO Box 5957 Ketchikan, AK 99901 Phone: 907-225-3184 Fax: 907-225-3187 www.ketchikanchamber.com info@ketchikanchamber.com

Juneau Convention & Visitors Bureau Lorene Palmer, President/CEO One Sealaska Plaza, Ste. 305 Juneau, AK 99801 Phone: 907-586-1737 Fax: 907-586-1449 www.traveljuneau.com meetinginfo@traveljuneau.com

Greater Palmer Chamber of Commerce Jillyan Hendrickson, Executive Director 550 S. Alaska St., Ste.101 Palmer, AK 99645 Phone: 907-745-2880 Fax: 907-746-4164 www.palmerchamber.org info@palmerchamber.org

Kenai Chamber of Commerce Johna Beech, Executive Director 402 Overland St. Kenai, AK 99611 Phone: 907-283-7989 Fax: 907-283-7183 www.kenaichamber.org info@kenaichamber.org

www.akbizmag.com • Alaska Business Monthly • October 2011

ALASKA CHAMBER & CVB DIRECTORY Kenai Convention & Visitors Bureau Natasha Ala, Executive Director 11471 Kenai Spur Hwy. Kenai, AK 99611 Phone: 907-283-1991 Fax: 907-283-2230 www.visitkenai.com info@visitkenai.com Ketchikan Visitors Bureau Patti Mackey, President/CEO 131 Front St. Ketchikan, AK 99901 Phone: 907-225-6166 Fax: 907-225-4250 www.meetinalaska.com info@meetinalaska.com

North Pole Community Chamber of Commerce Betsy Bear, President Board of Dir. PO Box 55071 North Pole, AK 99705 Phone: 907-488-2242 Fax: no fax www.northpolechamber.us Petersburg Chamber of Commerce Sally N. Dwyer, Executive Director PO Box 649 Petersburg, AK 99833 Phone: 907-772-3646 Fax: 907-772-2453 www.petersburg.org pcoc@alaska.com

Klondike Visitors Association PO Box 389 Dawson City, YT Y0B 1G0 Canada Phone: 867-993-5575 Fax: 867-993-6415 www.dawsoncity.ca kva@dawson.net

Prince of Wales Island Chamber Janice Bush, President PO Box 490 Klawock, AK 99925 Phone: 907-755-2626 Fax: 907-755-2627 www.princeofwalescoc.org powcc@aptalaska.net

Kodiak Chamber of Commerce Trevor Brown, Executive Director 100 East Marine Way, Ste. 300 Kodiak, AK 99615 Phone: 907-486-5557 Fax: 907-486-7605 www.kodiak.org chamber@kodiak.org

Seldovia Chamber of Commerce Darlene Crawford, President PO Drawer F Seldovia, AK 99663 Phone: 907-234-7612 Fax: no fax www.xyz.net/~seldovia

Kodiak Island Convention & Visitors Bureau Janet Buckingham, Executive Director 100 E. Marine Way, Ste. 200 Kodiak, AK 99615 Phone: 907-486-4782 Fax: 907-486-6545 www.kodiak.org visit@kodiak.org

Seward Chamber & CVB Cindy Clock, Executive Director PO Box 749 Seward, AK 99664 Phone: 907-224-8051 Fax: 907-224-5353 www.seward.com chamber@seward.net

Matanuska-Susitna Convention & Visitors Bureau Bonnie Quill, Executive Director 7744 E. Visitors View Ct. Palmer, AK 99645 Phone: 907-746-5000 Fax: 907-746-2688 www.alaskavisit.com info@alaskavisit.com

Sitka Convention & Visitors Bureau Tonia Rioux, Executive Director PO Box 1226 Sitka, AK 99835 Phone: 907-747-5940 Fax: 907-747-3739 www.sitka.org scvb@sitka.org

Nikiski Chamber of Commerce Judene Van Cleave PO Box 8053 Nikiski, AK 99635 Phone: 907-776-5551 Fax: 907-776-8836 Nome Chamber of Commerce Mitch Erickson, Executive Director PO Box 250 Nome, AK 99762 Phone: 907-443-3879 Fax: 907-443-5832 www.visitnomealaska.com nomeinfo@gci.net Nome Convention & Visitors Bureau Mike Cavin, Executive Director PO Box 250 Nome, AK 99762 Phone: 907-443-6555 Fax: 907-443-5832 www.visitnomealaska.com visit@mynomealaska.com

Skagway Convention & Visitors Bureau Buckwheat Donahue, Executive Director PO Box 1029 Skagway, AK 99840 Phone: 907-983-2854 Fax: 907-983-3854 www.skagway.com info@skagway.com Soldotna Chamber & Visitor Center Michelle Glaves, Executive Director 44790 Sterling Hwy. Soldotna, AK 99669 Phone: 907-262-9814 Fax: 907-262-3566 www.soldotnachamber.com info@soldotnachamber.com

Talkeetna Chamber of Commerce Trisha Costello, Chamber President PO Box 334 Talkeetna, AK 99676 Phone: 907-733-2330 Fax: 907-733-3940 www.talkeetnachamber.org info@talkeetnachamber.org Tok Chamber of Commerce John A. Rusyniak, President PO Box 389 Tok, AK 99780 Phone: 907-883-5775 Fax: 907-883-5773 www.tokalaskainfo.com info@tokalaskainfo.com Unalaska/Port of Dutch Harbor CVB Alyssa Sensky, Executive Director PO Box 545 Unalaska, AK 99685 Phone: 907-581-2612 Fax: 907-581-2613 www.unalaska.info Unalaskacvb@gmail.com Valdez Convention & Visitors Bureau David Petersen, Executive Director PO Box 1603 Valdez, AK 99686 Phone: 907-835-2984 Fax: 907-835-4845 www.valdezalaska.org info@valdezalaska.org Wrangell Convention & Visitors Bureau Carol Rushmore, Director PO Box 1350 Wrangell, AK 99929 Phone: 907-874-2829 Fax: 907-874-3952 www.wrangellalaska.org wrangell@wrangell.com Yakutat Chamber of Commerce Terri Bogren, Tourism Director PO Box 510 Yakutat, AK 99689 Phone: 907-784-3933 Fax: no fax www.yakutatalaska.com yakutattourism@live.com Yukon Convention Bureau Tammie Hennigar, Managing Director 205-4133 Fourth Ave. Whitehorse, YT Y1A 1H8 Canada Phone: 867-668-3555 Fax: 867-668-3550 www.meetingsyukon.com info@ycb.ca

Sunshine Chamber of Commerce Virgie Hartley-McKeown PO Box 793 WIllow, AK 99688 Phone: 907-733-1416 Fax: 907-733-1816

www.akbizmag.com • Alaska Business Monthly • October 2011

153

ƛȽɃɀȷȳɀΎƫȳɀɄȷȱȳΎȴȽɀΎƱȽɃɀΎƝɄȳɀɇΎƦȳȳȲ ƛȽɃ Alaskan Owned & Operated No Job Too Big or Too Small One-time or Regular Service Anchorage or Anywhere!

ƫȷȼȱȳΎ̸̶̰̰

3OHDVH FRQWDFW RXU RI¿FH DQG RQH RI RXU family member representatives will be happy to assist you with questions or to arrange courier service.

(907) 345-4980 www.rosiesdelivery.com

Why do you need an inventory? .QRZLQJ ZKDW \RX RZQ LV WKH ÀUVW VWHS LQ UHFRYHULQJ IURP D ORVV 'R \RX KDYH DQ LQYHQWRU\ RI \RXU SHUVRQDO SURSHUW\"

• Protect valuable personal or business assets if lost, stolen, destroyed by ﬁre or natural disaster • Insurance Coverage and Recovery • Divorce • Estate Planning • Moving • Rental /Vacation properties • Business Sale or Purchase

d Owne n a k s Ala perated &O

www.NorthernInventory.com (907) 830-5506

154

3URSDQH

LV JUHHQ

www.akbizmag.com • Alaska Business Monthly • October 2011

Congratulations to Juneau's first Green Star award-certified organization. Job well done!

$ODVNDÂ¶V 3UHPLHU 3KRWRERRWK 5HQWDO &RPSDQ\ $QFKRUDJH Â&#x2021; )DLUEDQNV Â&#x2021; *LUGZRRG Â&#x2021; 7KH 9DOOH\

www.greenstarinc.org

Â&#x2039;

DNSKRWRERRWK FRP

5HDO &ODVVLF 3KRWRERRWKV &XVWRPL]HG IRU FRUSRUDWH KROLGD\ SDUWLHV HYHQWV PHHWLQJV RU FKDULW\ VSRQVRUVKLS

&DOO XV WRGD \ RU 5DUH PRPHQWV ZLOG ODXJKWHU FDSWXUH WKH IXQ

Â&#x2039;

www.akbizmag.com â&#x20AC;¢ Alaska Business Monthly â&#x20AC;¢ October 2011

155

RURAL BUSINESS

Photo by Larry Lairs

Alaska Commercial Co. customers awaiting the outcome of a drawing held during the grand re-opening in Hooper Bay.

Alaska Commercial Co. Melding with rural communities BY STEPHANIE JAEGER

laska Commercial Co.’s long history began in 1776 when Russia’s empress, Catherine the Great, allowed fur traders in Alaska to establish the Russian-American Trading Co. Operating trading posts throughout Alaska, the Russian-American Trading Co. bartered goods for furs and gold until the United States bought Alaska in 1867. Two San Francisco merchants then bought the company and renamed it Alaska Commercial Co. From 1867

156

until the end of the gold rush, Alaska Commercial Co. (ACC) supplied groceries and other goods to trappers, explorers and gold miners throughout rural Alaska. ACC’s stores became village centers where mail was delivered, travelers found places to stay and community activities took place. Until the 1900s, Alaska’s economy was not a cash economy and customers traded pelts, gold, artifacts, fish and anything of value for groceries and other merchandise.

MORE HISTORY In 1922, the company was sold and re-named the Northern Commercial Co. with its headquarters moved to Seattle. Adding heavy equipment and machinery to its grocery and general merchandise product mix, the company contributed to the infrastructure development of rural Alaska. In 1974, the Northern Commercial Co. was sold again and divided into three different companies. The department stores in

www.akbizmag.com • Alaska Business Monthly • October 2011

Anchorage, Fairbanks and Kenai were sold to Nordstrom. The heavy equipment company was sold to the Skinner Corp. in Seattle. In 1977, the rural stores were sold to the Alaska Community Enterprise Development Corp. (CEDC) and these 11 stores became the first of the contemporary Alaska Commercial Co. In 1992, the Northwest Co., Canada’s largest rural retailer, bought ACC, making the two companies North America’s largest rural retailer. In only

managers are more likely to stay in their villages and to know the local people and be responsive to their needs.” Managers earn a bonus and participate in profit sharing in their stores. “In larger communities, managers often stay 10 years or more.” Pickett added. “In smaller communities, where it is much more expensive to live, managers may stay only three to five years.” ACC is trying to improve their hiring and retention efforts in small communities

The recession has had varying effects on the Northwest Co.’s business in Alaska. 10 years, ACC grew from 11 to 30 stores in 21 rural Alaska communities. ACC’s sales have increased from $11 million to more than $80 million while retail prices have decreased and the assortment of goods available has improved. ACC’s stores have become important sources of employment in rural Alaska communities and have continued to be centers of village life.

BUILDING THE BASE Since the Northwest Co. bought ACC, it has remodeled its old stores and built new ones. The most recent opened in December 2010 in Hooper Bay, and was built in conjunction with the Sea Lion Corp., the local Native corporation. Now the company has 33 stores and Quikstops throughout rural Alaska. In most communities they have changed their name to AC Value Centers, although some of the older stores still display the Alaska Commercial Co. signs. Two older stores – in Kotlik and Emmonok – are being remodeled and enlarged. “This year the Northwest Co. plans to invest $4 million in its rural stores,” said Walter Pickett, vice president of operations and general manager of ACC. “In the cold and windy environments of rural Alaska, stores often need new refrigeration units and fronts.” In an effort to reduce electricity costs and overhead, the Northwest Co. has been working on changing refrigeration units and light bulbs to more energy efficient kinds, hoping to pass the savings on to customers, who often pay as much as $8 to $9 per gallon for gasoline. “We try to employ long-term managers and workers, and prefer to employ local people,” Pickett said. “Local

because hiring and training new managers adds to their operating expenses. The largest stores are in the larger towns such as Sitka, Bethel and Dillingham. Only four AC Value Centers are in towns that have no other stores. Competing companies include Safeway and Alaska Native corporation cooperatives Omni and ANICA. In smaller communities the only employers may be the school, post office and the AC Value Center. Goods are delivered to AC Value Centers by barge to southern Alaska and by plane in the north. “In the south, the water does not freeze in the winter and we can use barges all year,” Pickett said. “Barges can be used in some Interior areas in the summer, but in the winter we use the bypass mail system, a subsidized mail system available in Alaska. Hazardous materials are shipped by air freight through Lynden and Northern Air Cargo.”

ECONOMIC INDICATORS The recession has had varying effects on the Northwest Co.’s business in Alaska. “In Southeast Alaska there has been some decrease in business because of the downturn in the tourist market,” Pickett said. “But because of some infrastructure projects that were financed by stimulus money, such as the building of a new hospital in Nome and a runway in Kotzebue, more people coming into these towns to work has increased our business.” Commercial fishing seasons and markets seem to have a large effect on their business. When fishing decreases in coastal areas such as Dillingham, ACC’s business at the Dillingham store falls. AC Value Centers now offer many

more goods and services than ACC stores offered in the past. Besides groceries, they sell electronics, from computers to MP3 players; home furnishings and appliances; house wares and hardware, including construction tools; ATVs, snow machines, boats and motor parts; used cars, trucks and SUVs; sporting goods; toys; seasonal goods and all types of clothing. They have added take-out food and fast food centers to their larger stores and their website has recipes for healthy eating. Only five AC Value stores have liquor stores. These are licensed and follow local laws controlling the sale of alcoholic beverages. There are no pharmacies in any of the AC Value Centers. The Northwest Co. has developed a few of their own brands such as Alaska Commercial Co.’s white and wheat breads, hamburger and hot dog buns and beef jerky. Their other food brand is Flavorite, which includes butter and canned foods, and they have a health and beauty brand called Equaline that is used for beauty aids and over-thecounter medications.

COMMUNITY PARTNER Just as the early ACC stores were community centers, contemporary AC Value stores help local people and contribute to their communities. “We focus a lot of our efforts on children,” Pickett said. “We are one of the largest contributors to the Alaska School Activities Association, the Boy Scouts, Girl Scouts and Little League.” The North West Co. donates money, services, local sponsorships and volunteer time to the American Diabetes Association, Muscular Dystrophy Association, Junior Achievement and business instruction in schools. “We donate food to food banks, charity, and the women’s shelters in Bethel and Dillingham,” Pickett said. “Our stores also work in diabetes education and the prevention and treatment of obesity in the Native elder population.” Pickett has been working for the Alaska Commercial Co. for the past 14 years. “I especially like going to the communities and meeting the people,” he said. “They always thank us for building and improving the stores and the elders and children ❑ are very grateful.”

www.akbizmag.com • Alaska Business Monthly • October 2011

157

MARKETING

Groupon Business Coupons Social media buying comes to Anchorage BY DEBORAH JEANNE SERGEANT

ocial media buying programs have changed how people spend. Groupon.com has more than 15 million unique visitors per month since its launch in 2008, and now there are numerous similar companies online offering the “half-off” deals it made popular. Social buying programs are a great way of increasing foot traffic,” said Michael “Buzz” Bizinski, owner of Buzzbizz Studios in Anchorage.

THE DEAL Here’s how it works: Social buying programs alert members to a local, daily deal through email, Twitter or Facebook. The limited-time deal will be “on” if a minimum number sells, and members are encouraged to tell friends through social media. When enough deals sell, members’ credit cards are charged and they are sent a link to their printable coupon. If too few commit, the deal is “off” and no one is charged. “A business can increase traffic during their slowest time,” Bizinski said. “People have saved their businesses like that. It creates opportunity for creating return traffic.” Alaska Computer Support offered its second Groupon deal a few months ago – a computer diagnostic, cleaning and performance upgrade at $69 instead of the usual $239.99. Owner Michael Wheeler says he only sold two Groupons when he tried a 50 percent-off deal for his first Groupon, so he made the second deal irresistible and sold all 20 coupons. Sticking with a small maximum number of coupons helped ensure demand would not overwhelm the computer firm. C. J. von Imhof, who co-owns Acai Alaska in Anchorage, anticipated an

158

eager response to their Groupon offer of $6 for $12 worth of products last November. He stocked supplies in advance and had extra staff ready, wise moves since Acai Alaska sold out their 600 coupons in two days and customers began redeeming right away. Acai Alaska had a few glitches, such as staff not having time to correctly enter the coupon codes into the computer. The next time Acai Alaska tried Groupon months later, they used an iPhone to read and instantly redeem coupons. Social-media buying programs usually require a 50 percent-or-more discount and divide that amount with the vendor, creating a thin- or no-profit margin for some businesses. “Social buying programs are better suited for those who have a consumable rather than a long-term tangible product,” Bizinski says, “unless there’s a service contract or a repeatable service.”

TARGET NEW CUSTOMERS Businesses selling an experience can increase exposure without incurring much overhead or touching the price margin. Anchorage Glacier Pilots General Manager Jon Dyson said he was surprised to sell 150 Groupons in an Ultimate Fan Pack for $25 each (a $60 value). The deal included admission and two drinks. Because the deals were redeemable any time during the 2011 baseball season, the staff didn’t get overwhelmed or have to process the coupons on any particular day. “A lot of people came who otherwise wouldn’t come to a game,” Dyson said. Before signing up with a social buying program, read the fine print. Ask whether or not you will be able to cap

the number of offers, how long customers will have to redeem their coupons to make sure you can accommodate them, and if you will receive their email addresses. Groupon doesn’t share email addresses with participating companies to prevent subscribers from receiving spam; but you could simply ask people redeeming their coupons if they’d like to sign up for emails from you. Some people cruise businesses for deals and never spend beyond the deal. At Acai Alaska, Groupon “has brought in some new faces,” von Imhof said. “Many of the people who missed it went to our website. They would still come in, so we got a number of new customers who came in without it. I saw some people who came in one time, but we have a really good product, so some do come back. “The first time we did a Groupon eight months ago, it seemed people bought just for the deal,” von Imhoff said. “The second time, about half who came in for the promotion started buying other stuff.” Ask if you can tie in a required purchase, such as a half-off lunch with purchase of a beverage to build in more profit margin. Coach staff to provide top-notch service. Wooing new customers can draw more of them into long-term relationships. “More people know we are here,” Wheeler said. “We have tried radio to no avail. TV has been okay. This is a quick way to get in front of a lot of people. “Do the math,” he added. “Make sure that you can afford to do what you are doing and remember that it doesn’t all happen at once. I have done Groupons for two of my companies and both ❑ have been successes.”

www.akbizmag.com • Alaska Business Monthly • October 2011

ALASKA TRENDS

BY WILLIAM COX Alaska Trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

Alaska Bankruptcies - Anchorage versus Fairbanks

he increasing rate of bankruptcies experienced in Alaska and the U.S. is due to many economic factors related to the downturn in the economy since the beginning of the recession in December 2007.1 Some of the factors that have contributed to this increase include but are not limited to higher unemployment and underemployment, limited access to capital due to more stringent loan requirements by banks, variable rate mortgages whose rates have reset, and businesses become increasingly cautious and waiting as long as possible before increasing their staff. The chart shows bankruptcy figures for both Anchorage and Fairbanks on a monthly basis from January 2009 through June 2011. As shown in the chart, Anchorage experienced a steady increase in the frequency of bankruptcies since January 2009, but with less volatility than Fairbanks, increasing from 35 bankruptcies in January 2009 to 66 in June 2011, an 89 percent increase. The bankruptcies

within Fairbanks, while more volatile, returned to near their January 2009 levels. Bankruptcies in Fairbanks increased approximately 25 percent from eight in January 2009 up to 10 in June 2011. 2 It is unclear what caused the large spike in Fairbanks bankruptcies and simultaneous decline in Anchorage bankruptcies in January 2011. ❑

Sources: 1 Federal Reserve Bank of Dallas: Economic Letter – Insights from the Federal Reserve Bank of Dallas http://dallasfed.org/research/eclett/2010/el1001.html 2 United States Bankruptcy Court: http://www.akb.uscourts.gov/

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

www.akbizmag.com • Alaska Business Monthly • October 2011

159

ALASKA TRENDS Indicator

Units

GENERAL Personal Income – Alaska Personal Income – United States Consumer Prices – Anchorage Consumer Prices – United States Bankruptcies Alaska Total Anchorage Total Fairbanks Total EMPLOYMENT Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Sectoral Distribution – Alaska Total Nonfarm Goods Producing Services Providing Mining and Logging Mining Oil & Gas Construction Manufacturing Seafood Processing Trade/Transportation/Utilities Wholesale Trade Retail Trade Food & Beverage Stores General Merchandise Stores Trans/Warehouse/Utilities Air Transportation Truck Transportation Information Telecommunications Financial Activities Professional & Business Svcs Educational & Health Services Health Care Leisure & Hospitality Accommodation Food Svcs & Drinking Places Other Services Government Federal Government State Government State Education Local Government Local Education Tribal Government1 Labor Force Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast

160

Period

Latest Report Period

Previous Report Period (revised)

Year Ago Period

Year Over Year Change

US $ US $ 1982-1984 = 100 1982-1984 = 100

1st Q11 1st Q11 1st H11 1st H11

32,413 12,915,008 200.28 223.60

31,709 12,686,624 195.46 218.58

30,853 12,334,336 194.834 217.535

5.06% 4.71% 2.79% 2.79%

Number Filed Number Filed Number Filed

June June June

85 66 10

75 57 14

98 73 20

-13.27% -9.59% -50.00%

Thousands Thousands Thousands Thousands Thousands

June June June June June

343.28 185.65 43.73 39.00 38.50

337.35 183.89 43.66 39.16 36.58

337.49 180.55 43.47 39.15 38.42

1.72% 2.82% 0.60% -0.38% 0.20%

Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands

June June June June June June June June June June June June June June June June June June June June June June June June June June June June June June June June June June

349.5 53.0 296.5 17.0 16.5 13.5 18.9 17.1 10.8 68.1 6.5 37.6 6.5 10.4 24.0 6.3 3.6 6.5 4.4 14.9 28.0 43.1 31.8 39.1 8.1 23.4 12.1 84.7 17.7 25.7 6.4 41.3 23.1 3.9

328.5 41.7 286.8 16.3 15.8 13.2 16.2 9.2 5.6 65.9 6.2 36.5 6.3 10.0 23.2 6.0 3.3 6.5 4.3 14.9 26.6 43.2 31.6 34.2 7.1 21.7 11.7 83.8 17.3 25.3 7.0 41.2 23.9 3.8

342.8 50.0 292.8 16.0 15.7 13.1 18.6 15.4 11.6 66.7 6.5 37.1 6.5 10.2 23.1 6.0 3.4 6.4 4.2 15.3 27.5 41.6 30.0 36.9 10.2 21.4 11.8 86.6 19.0 25.7 6.4 41.9 23.2 3.9

1.95% 6.00% 1.26% 6.25% 5.10% 3.05% 1.61% 11.04% -6.90% 2.10% 0.00% 1.35% 0.00% 1.96% 3.90% 5.00% 5.88% 1.56% 4.76% -2.61% 1.82% 3.61% 6.00% 5.96% -20.59% 9.35% 2.54% -2.19% -6.84% 0.00% 0.00% -1.43% -0.43% 0.00%

Thousands Thousands Thousands Thousands Thousands

June June June June June

372.56 200.13 47.07 41.96 42.07

364.05 196.97 46.70 41.87 39.87

365.74 194.90 46.67 41.96 41.77

1.87% 2.69% 0.86% 0.00% 0.72%

www.akbizmag.com • Alaska Business Monthly • October 2011