Edition Progress g BRAINERD LAKES AREA
B R A I N E R D D I S PAT C H L A B O R D AY S P E C I A L
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SERVING THE BRAINERD LAKES AREA AND CENTRAL MINNESOTA SINCE 1881
September 3, 2018 • September 6, 2018
Renee Richardson / Brainerd Dispatch
Construction crews work inside the new Thrifty White Pharmacy building going up on the corner of Washington Street and Second Street North in Brainerd near Hardee’s. Shingobee Builders Inc. is the general contractor on the project.
Lakes area economy is red hot
correction. And businesses are watching interest rates for increases, but Mau said there is optimism about the future. “I’m feeling very positive,” he said. After the Great Recession hit, crushing construction and then nearly everything else, Mau said it wasn’t until 2011 and 2012 when business got back to pre-recession levels. “This year is as good as it gets,” Mau said. Another area feeling positive is the Cuyuna Lakes area. A recent Thursday night had lots of vehicles in Crosby loaded with mountain bikes and kayaks along with pedestrians and a large group of helmeted children riding their bicycles. Nick Miller, who is an owner of Prairie Bay’s Iron Range Eatery in Crosby, said the expansion to the Range has been a good one and the change is evident with the pedal and paddle economy blooming. Tyler Glynn, economic development officer with Brainerd Lakes Area Economic Development Corporation, said another indicator is a rise in housing permits. Strong wages help people feel confident in establishing themselves as homeowners. There is a shortage of employees for manufacturing positions. But the draw of the lakes area is readily seen when Mike Bjerkness, workforce director at BLAEDC, posts a human resource director spot for area companies and gets 40, 50 and 60 applicants. On the retail side, new businesses joining the community are also a sign
Renee Richardson Managing Editor Employees are in short supply and that’s not going to change anytime soon, forcing employers to be more flexible in order to keep workers and find ways to automate where possible. “And that’s not just a Brainerd issue, that’s a Minnesota issue, that’s a coast to coast issue,” said Matt Kilian, Brainerd Lakes Chamber of Commerce president, noting they’ve known for a long time now there will be a lack of people in the workforce. As baby boomers get older and are retiring from the workforce every day, Forbes used Pew Research Center data to note the baby boomer representation in the workforce is reducing steadily, with an about 10 percent reduction forecasted in the next decade. It’s an obstacles and opportunities mix. “So businesses are dealing with that in different ways, some of these jobs are just getting phased out because they are able to use technology in different ways,” Kilian said. Kilian said businesses are also looking at more flexibility in scheduling, parttime work and in the people they consider to fill openings. That is meaning more opportunities for prospective workers who may have been on the sidelines — those with disabilities, older workers and those with criminal histories. “I think this is the silver lining, potentially, for the workforce shortage, is that more people have opportunities,” Kilian said. “We’re utilizing a lot more of the workforce now, which I think is good. And the other thing I think is good from the labor side, is that there is an increased amount of attention on the work experience.”
ECONOMY IS RED HOT: Page S6
FLEXIBILITY: Page S5
Construction points to confidence, investment in future Renee Richardson Managing Editor Small and mid-size business owners in retail and service industries and manufacturers in the lakes area agree the economy is cooking. While motorists may remember the summer of 2018 for its challenges with major road arteries closed for construction, business owners may think of it as an indicator of investment confidence, job creation and record revenue. “From my perspective, from the chamber’s perspective, business in the Brainerd lakes area couldn’t be much better,” Matt Kilian, Brainerd Lakes Chamber of Commerce president said. Kilian said 2017 was a remarkable year for businesses. “And this year, for a lot of them, has exceeded last year based on what we see in tourism and retail and capital purchases — and construction is a telling indicator of confidence in their business and the economy,” Kilian said. “I hope it keeps going, but right now I think we are at a fever pitch and it doesn’t seem to be showing any signs of stopping.” For workers, that means a plethora of opportunities. Hiring signs continue to be a common sight. Area manufacturers and restaurateurs point to the challenge in hiring to meet the demand or help fuel expansions. Businesses may point to 2008, in the superheated economy before everything came crashing down, as a record year. Last year, Kilian said, chamber members reported a best year ever and this year is exceeding that marker. Construction spending is a telling indi-
cator of confidence. And construction — noticeably absent during the Great Recession — is visible specifically in Brainerd and Baxter. Not only through the public investment in infrastructure with roads, roundabouts and trails — not to mention the publicly approved spending to renovate and build facilities with the recent referendum for the Brainerd School District — but in the private sector for residential, commercial, medical and commercial spending on construction, from Casey’s General Store in Baxter to Thrifty White Pharmacy in Brainerd and a plethora of Dollar Generals across the lakes area communities. Other examples are the CentraCare Specialty Clinic in Baxter, the completed $7.7 million expansion of Essentia Health’s Baxter Clinic, and groundbreaking for a Cuyuna Regional Medical Center clinic in Breezy Point. In Nisswa, Nor-Son crews are busy on a $30 million expansion to construct a 60-room hotel, wedding chapel and recreation center at Grand View Lodge. The expansion will allow the resort to accommodate as many as 1,500 guests. Steve Mau, owner of Brainerd General Rental, also has plans for a major project to tear down his current building just off Highway 371 in Baxter and build a new facility on the same lot. Mau bought the business here in 2001 and while the business hasn’t gotten back to where it was in 2008, Mau said last year was good and this year is shaping out to be even better. So much better that Mau described it as red hot to the point he wondered if there was another shoe to drop in a market
Flexibility a key in employee retention
Table of Contents Lakes area economy is red hot................................ S1 Flexibility a key in employee retention.................. S1 Destination Downtown Business Challenge ........ S2 Falls Fabricating........................................................... S3 Aeropipe fills Parker Hannifin void in Deerwood .. .. S4 Family celebrates Ruttger’s 120th anniversary.....S13 Challenges for lodging industry............................S13 Cuyuna Range recognized .....................................S14 Diversity of businesses helps boost Baxter Village ..S25
Brainerd Lakes Regional Airport .........................S26 All in the Family .....................................................S27 Maple Ridge Produce .............................................S37 Aitkin Bakery ..........................................................S39 Pequot Lakes businesses reflect on year ..............S41 Sportland Corners property in Nisswa.................S43 RemWhirl strives to keep up with whirlwind of new architectural trends.....................................S44 Deerwood ice hockey camp is fun for all ...........S46
Mother-daughter profit from sew-sew work ......S49 Dogs go full tilt at Full Tilt Agility Training .......S52 Brainerd business owner breaks glass ceiling .....S54 Stories in these pages for the annual Progress Labor Day edition have photo galleries and videos. To see these stories in a different way, go to the Dispatch homepage for links to videos and the Dispatch podcast -- DispatchCast.