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JULY/AUGUST 2012

Contents

THE MAGAZINE FOR GROWING BUSINESSES IN SOUTHERN MINNESOTA

STAFF & CONTRIBUTORS Publisher: Jeffry Irish

COVER STORY

Curtain Call

Editor: Daniel J. Vance

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Art Director/Staff Photographer: Kris Kathmann

Mickey Goldmill, Mary Maxwell Gates, and Hamilton Jordan. Although often forgotten, all played behind-the-scenes roles pushing others out onto the public stage. Fictional Goldmill trained chicken-chasing Rocky Balboa to beat brash-bashing Apollo Creed in front of a national television audience; well-connected Mary Maxwell Gates helped maneuver son Bill Gates’ Microsoft into the limelight; and Hamilton Jordan quietly engineered Jimmy Carter’s improbable White House run.

PROFILES

Earth Wind & Fire

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Interim Advertising Manager: Daniel J. Vance Contributing Photographers: Jeff Silker, Art Sidner Contributing Writers: Carlienne Frisch, Veronique de Rugy Production: Becky Wagner Kelly Hanson Josh Swanson

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8,400 for July/August 2012 Published bimonthly

CORRESPONDENCE Send press releases and other correspondence: c/o Editor, Connect Business Magazine P.O. Box 452, Nicollet, MN 56074 E-mail: editor@connectbiz.com (please place press releases in email body) Web: www.connectbiz.com

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Phone: 507.232.3463 Fax: 507.232.3373

ADVERTISING

COLUMNS

Editor’s Letter Off-The-Cuff

Mailing: Midwest Mailing, Mankato

CIRCULATION

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Stepping through the door of the Jarraff Industries office on the north side of St. Peter, the reporter first sees a four-foot-high stuffed giraffe. Too big to be a child’s toy, the giraffe wears a kerchief proclaiming the name of the business. It doesn’t take much imagination to make the connection between the long-necked animal and the tree-cutting equipment George Boyum began producing 35 years ago.

Printing: Corporate Graphics, N. Mankato Cover Photo: Jeff Silker

Years later, a physician said he should have died.

In 1980, then 25-year-old Tim Lipetzky was an electrician working inside a Lakefield hospital when he felt an ache arcing through his stomach. He told a registered nurse about the pain, but would wave it off before leaving that night. At home later, his wife pestered him into visiting a doctor. It hurt.

The Zookeeper

Circulation: Dave Maakestad

Call: (507) 232-3463

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ABOUT CONNECT Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising.

IN EVERY ISSUE

Bulletin Board

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Business Trends

35

Hot Startz!

49

Press Releases

54

National Opinion

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Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, web design, illustration and product photography. conceptanddesign.com

Reason.com Contributing Editor Veronique de Rugy believes the U.S. may be more Europe than Europe.

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Copyright 2012. Printed in U.S.A.

EDITOR’S LETTER

5,000-Watt Spotlight Some people crave limelight and neon; others prefer backlight or no light. Our cover story, 46-year-old Marcia Bahr, Mankato Clinic director of marketing and communications and Jersey Mike’s Subs co-owner, feels more comfortable with the latter. For more than 20 years, she has been in total darkness in a theater balcony focusing a 5,000-watt spotlight onto her employers and a number of nonprofit organizations to draw your attention their way. This issue, we turn the spotlight on her.

In our Connect Business Magazine reading area, marketing seems one area where few businesspeople have considerable professional expertise, fewer treat marketing as science, and fewer yet market really well. Bahr can check off all three boxes. Besides having an innate ability to weave a narrative, she has been a marketing sine qua non for high-profile employers in four industries: radio, franchise restaurant, telecommunications, and healthcare. Learn from her.

Also this issue: We feature green energy maven L&S Electric and its sister companies in Springfield—our first company profile from a city marking our westernmost boundary; and Jarraff Industries in St. Peter, which has been selling tree-trimming product into Europe.

Sursum ad summum,

Daniel J. Vance Editor

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By Daniel J. Vance Photo by Jeff Silker

Mickey Goldmill, Mary Maxwell Gates, and Hamilton Jordan. Although often forgotten, all played a behind-the-scenes role pushing others out onto the public stage. Fictional Goldmill trained chicken-chasing Rocky Balboa to beat brash-bashing Apollo Creed in front of a national television audience; well-connected Mary Maxwell Gates helped maneuver son Bill Gates’ Microsoft into the national limelight; and Hamilton Jordan quietly engineered Jimmy Carter’s improbable White House run.

Add Mankatoan Marcia Bahr. For more than 20 years here, she has lived vicariously through the businesses and organizations she preps for the stage. Their public acclaim has been hers enjoyed, but only backstage.

Since 1990, chronologically, 46-year-old Bahr has been a KXLP-FM account executive, Domino’s and Subway marketing manager, Midwest Wireless vice president of marketing and communications, Alltel marketing consultant, and currently, director of marketing and communications of locally owned, 120-physician Mankato Clinic.

She has been a faithful backstage helper for South Central College, Salvation Army, and Mankato Clinic Foundation. Along with others, she quietly co-owns Jersey Mike’s Subs of hilltop Mankato.

Perhaps no one person regionally has more top-tier marketing and public relations experience in more industries. Though generally unaware of Bahr—who today remembers Mary Maxwell Gates?—southern Minnesotans certainly recognize the names of businesses she has helped build up.

One of her finest accomplishments was her backstage role helping Mankato-based Midwest Wireless take a bow and final curtain call in 2005-06 after selling to Alltel for $1.075 billion. continued >

Seasoned Mankato marketing and communications professional shares wealth of wisdom from radio, franchise restaurant, telecommunications, and healthcare industries.

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Curtain Call

Her family practices responsible, ethical agriculture for life. It’s The R.E.A.L. Story. And we salute them for raising some of our most valuable exports. ©2012 Minnesota Soybean Research and Promotion Council

With 12 years of service and three tours of duty, serving her country is in her blood.

But she also loves getting back to the family farm in Minnesota Lake.

Describe your involvement with the Area News Consortium.

It meets once or twice a year for networking, so when a community crisis occurs, we all know the communication contact at different organizations. It consists of people from healthcare, area counties, City of Mankato, MNDOT, the universities, and the American Red Cross. We share email to keep each other informed about local happenings. For example, I receive City of Mankato email about road closures the same time the newspaper (Free Press) does.

It’s helpful for our planning. The first time this group was put to the test since I became a member was when H1N1 flu hit and suddenly we had a plan to vaccinate over 5,000 people. Having those relationships in place helped communicate and plan what needed doing.

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In regard to H1N1, discuss how the decision was made to remove magazines and children’s toys from Mankato Clinic lobby areas?

The public was concerned about germs and we wanted to do whatever necessary to reduce that concern. We removed magazines and toys for a time. We also had masks for patients available, which we encouraged them to wear if they were experiencing H1N1 respiratory symptoms, and we had hand sanitizer everywhere.

Was your decision made to relieve the fear or to halt the spread of germs? If it was for the latter, then why were magazines allowed back in? The germs are still there.

We discussed that at length. We were seeing a decline in patient satisfaction scores concerning the comfort of our waiting areas because we didn’t have anything for patients to read. Some patients really wanted those magazines back. In fact, we learned some people enjoy coming to the Clinic just to read magazines while waiting.

It was their only “me” time during the day.

Tell me about your family when growing up.

I had two sisters, but lost one 15 years

Marcia Bahr | Mankato Clinic

ago to lung cancer. I’m by far the baby of the family. My dad was a taxidermist with a shop in our basement and my mother worked in the post office. My family is outdoorsy and enjoys hunting, fishing, and hiking. My father had his private pilot’s license, owned a plane, and often flew us to our cabin in northern Minnesota, sometimes after church on Sunday just to mow the lawn and fly back. Or we would fly somewhere to eat. We knew where all the restaurants were within walking distance of airports. Ours is a close-knit family. I was raised like an only child, but feel I’m part of a much larger family because of my oldest sister, who has four children not much younger than me.

Did what happen with your sister with cancer prepare you for what you’re doing at Mankato Clinic?

Yes, I think so. I’ve seen what families with illness go through. My sister still living is a registered nurse. When families need to come together in times of crisis, often you (automatically) start playing the family role you played growing up.

When my sister was sick with cancer, my dad died suddenly—we lost them both in a five-month period in 1997-98. My sister (the nurse) was the caregiver and talked to the doctors and translated for the rest of the family about my sister’s (and father’s) condition. The role I played was in event planning, such as the funerals and making sure everything was in place so my mom didn’t have to worry about details.

When my dad died from what was probably a heart attack, I’d been at Midwest Wireless only a few months and had just had a baby. He was out deer hunting and was using a pistol because of earlier losing the use of one arm from a stroke. Since I was a little kid, he had said he would die with his boots on doing what he loved.

(Long silence.)

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Curtain Call

help your employer prepare for healthcare-related crises.

I’ve seen the connection. In a crisis—whether in public relations or healthcare like H1N1—I believe I have the inner strength to be calm and figure out the next steps that need taking. I believe that comes from having gone through what I’ve been through.

Take me through your career path.

I loved business and took every business class Braham High School offered. I lasted one semester at Bemidji State as an accounting major.

I realized soon there was no way I wanted to be an accountant forever.

Jay Weir

You would just marry one later.

Exactly. (Laughter.) I looked through the course catalog and everything I read about mass communications sounded interesting:

Curtain Call

Mike Donohoe

Culture Club CONNECT: You mentioned the fun environment. What was there about Dennis Miller that helped create the culture?

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BAHR: He was fun and liked joking. He was open-minded. At times, he seemed a curmudgeon unable to change his mind, but if you had your facts together and went with an idea, he listened.

Many times, he changed his mind. He said to me the other day he often went into meetings with senior managers with a set plan. But nine times out of ten, he said, we would develop a different plan. Everyone participated. We thought things through and bounced ideas. Marketing and engineering knew what each other did.

For example, after our sale, we did a presentation in Little Rock to Alltel on how we chose cell site locations. You’d think only engineering would make that decision, but marketing and sales were also involved. In our algorithm, everyone’s votes counted. Obviously, engineering’s vote was worth more, but if our sales director knew we could get press if we put a cell site in a certain town because that town had been asking for one—we might place one there. Or we might place a tower in what seemed the middle of nowhere because it was near a business that used 350 cell phones.

Marcia Bahr | Mankato Clinic

In a crisis—whether in public relations or healthcare like H1N1—I believe I have the inner strength to be calm and figure out the next steps that need taking. I believe that comes from having gone through what I’ve been through. writing, working with media, broadcasting. I would be out talking and working with people and not always tied to a desk. My dad accepted my decision to change majors only after I graduated in 1987 and landed a sales job at a Bemidji radio station. I thought it was a great way to get into the news department, but then the news director seemed unhappy and suddenly that job didn’t look fun. What I liked about my job was putting together advertising plans and seeing results. I loved planning promotions. It was fun being creative and getting businesses excited about advertising.

Can you mention one instance of doing it?

In high school, I loved classic cars. My dream car (which I never had) was a 1964½ Candy Apple Red Ford Mustang with an automatic 289. I don’t drive a stick. For high school graduation, I got a white

1967 Mustang with a black vinyl roof. My parents and I split the cost.

I loved that car—it was my baby. When I was selling for the Bemidji radio station, a body shop owner there had an older Mustang he wanted to sell and along with another radio sales rep I thought we could get that car rebuilt and give it away as a promotion. We asked all these businesses to trade ads for new tires, a whole new engine, new metallic blue paint—I still have the pictures. All summer we drove that car in parades and events. When a business bought a radio remote, customers could register to win the Mustang. We later did the same promotion at KXLP in Mankato after I moved here to work for them.

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When did you move here and why?

My husband and I knew there wasn’t much opportunity in

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Curtain Call

Bemidji. He had an accounting degree.

We decided in 1990 that whoever found a job first, that’s where we’d move. Literally, the next week, my old boss from the radio station in Bemidji, who was then working in Owatonna, said Chris Painter at KXLP in Mankato needed a sales representative.

One account I would have in Mankato was Domino’s Pizza, owned by Kevin Bores.

One day while I was calling on Kevin, he slid over a job description and said he was too busy to handle marketing. He said he and his partner, Subway owner Dave Gruenzner, felt the same way. He wanted to know if I was interested. My heart was pounding. Everything sounded exciting.

I thought it would be fun on the other side of the desk and buy rather than sell

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What did you learn about sales by being on the other side of the desk?

Some salespeople calling on me were doing consultative selling, meaning they sold what they believed would work best for me in terms of our marketing goals and reaching our key demographics.

Then there were salespeople just wanting to sell what they could earn commissions on from special packages. I could tell the difference. When in radio sales, I knew clients that were busy with so many aspects of running a business they didn’t necessarily have a marketing plan, but knew they needed to promote their business.

The next advertising person walking in probably got the sale, even if it wasn’t the best choice for their business. When I was with Domino’s, some sales reps attempted to sell advertising without considering my marketing plan. They were trying to sell a package because a bonus was attached and not because it fit my needs.

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What did you learn from Domino’s and Subway?

How to create a marketing plan and an advertising calendar and how to manage a budget while getting the biggest bang you can for your buck. I also learned it was important to get involved in community events and to give back to the community.

It gave people opportunities to understand and try your product. People like doing business with locally owned companies that care about the community. It’s part of being a good corporate citizen.

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Being involved with Domino’s and Subway, you were no doubt introduced to having to prepare for public relations challenges. Food can get people sick despite adequate prevention measures, for example.

That was where I had to draw from my college experience. We had a situation in which an employee under 16 was working longer hours than he should have been.

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advertising. The position involved advertising planning and placement, working with store managers, and public relations.

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JULY/AUGUST 2012

Marcia Bahr | Mankato Clinic

We were fined. The State of Minnesota sent us a copy of the news release they sent to the local media. I don’t remember the kid’s name, but he was a good student and his parents didn’t mind him working past nine o’clock. He looked older than 18.

The store manager may not have realized he was underage, plus employees would trade shifts at the last minute. Early on, we were very open with the media, it was in the paper one day, and it faded away. You have to be open and honest and transparent with the media.

Is that more your training or your personality?

Both. If a situation occurs and you know it’s going to the media, you’re better off being upfront and sending out a news release stating your side of the story first.

“No comment” is not an option.

After five years with Domino’s, you went to Midwest Wireless.

That must have been a big change going from pizzas to cell phones.

Oh, it was. (Laughter.) It was like drinking water from a fire hose. A friend’s husband had started there as an engineer and mentioned they were looking for a marketing person. The more I researched, the more I realized this company would grow. I was eight months pregnant and went shopping for the most professionallooking maternity outfit I could find. They wanted a second interview. I was seated in the room before (President) Dennis Miller came in. At the end, he asked if there was anything else I wanted to say. I didn’t know if he knew I was pregnant because I had been sitting down. So I said, “You do realize I’m eight months pregnant.” He said, “Well, yeah!” (Laughter.) So I got that job and worked two weeks before taking a six-week maternity leave.

You mentioned the excitement of going up in your father’s airplane. Was working the next eight or nine years with Midwest Wireless an airplane ride?

Oh, it was like being (Elton John’s)

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This was my job, it was so fun, and the people were great. You just can’t replicate that culture. Many times, I was pinching myself.

Was this real? Are we really in Mankato, Minnesota, doing what we’re doing with this company? It was the biggest secret in town.

Rocketman. (Laughter.) It was nothing like an airplane ride. It was so much faster. It was always straight up as fast as possible.

While we’re on it, tell the story about Dennis Miller and Rocketman.

One of my public relations goals at Midwest Wireless was to get Dennis Miller on the cover of Connect Business Magazine. Finally, when you asked him to be on the cover, we got the biggest kick out of your calling him “Rocketman.” The day the magazine broke, we had an upper management meeting. I had a boom box under the table cued to Rocketman. As Dennis entered the room, the music blared. Of course, he knew I did it.

With the changing technology, did you even have time to assimilate everything?

It was constant change. It was always hard work. It was always fun. I remember days just walking down the hall thinking, “I don’t believe I get paid to be here.” This was my job, it was so fun, and the people were great. You just can’t replicate that culture. Many times, I was pinching myself. Was this real? Are we really in Mankato, Minnesota, doing what we’re doing with this company? It was the biggest secret in town. People didn’t understand how technologically advanced we were versus the industry. In some areas, we were first in the country. Who did the first two-way text messaging in the United States? AT&T claims it, but that’s not true.

How difficult was it keeping secrecy when Midwest Wireless received bids from Verizon and Alltel?

Here is a secret: Verizon never kicked the tires. Everyone assumed they were interested, but they weren’t. Most organizations looking at Midwest Wireless were private equity firms.

Here’s a favorite Dennis Miller story: the day of the Midwest Wireless auction, I was on the telephone with a New York public relations firm discussing the news release announcing a private equity firm was purchasing us. Dennis comes running down the hall saying, “Hold up. Everything is fluid right now.” I didn’t know

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Marcia Bahr | Mankato Clinic

what he meant, but told the public relations firm to put everything on hold. Here only hours before the signing of an agreement with a private equity firm, Dennis was hearing from Alltel’s CEO saying they wanted to buy us. Initially, their offer wasn’t in the ballpark.

At the last minute, Alltel offered more than $1 billion. We re-did the news release and implemented a communications plan. It had gone down to the wire.

But this wasn’t the only challenging communications issue regarding the sale. Earlier, the Midwest Wireless board in August 2005 had decided to evaluate business options and hired an investment bank to explore opportunities such as a possible sale. This was a completely confidential decision and only a handful of people at Midwest Wireless knew. But one evening in September, Dennis Miller called me at home saying he learned the Wall Street Journal knew of the sale. So we needed a plan and fast. Along with a public relations firm, we worked late getting a plan together knowing next morning a Wall Street Journal story would break. Our plan focused on getting our employees in the loop first. Dennis sent everyone an email at 6:00 a.m. We had employee meetings in our auditorium and teleconferences for employees in other communities. Then the press began calling.

The next day was tougher because The Free Press announced Midwest Wireless was for sale and wanted to know what this meant to the community, employees, and customers. The headline said Verizon would probably be buying us. Everyone assumed Verizon.

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So we needed a plan and fast.

Along with a public relations firm, we worked late getting a plan together knowing next morning a Wall Street Journal story would break. Our plan focused on getting our employees in the loop first.

Dennis sent everyone an email at 6:00 a.m. We had employee meetings in our auditorium and teleconferences for employees in other communities. Then the press began calling.

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Minnesota society of Professional engineers

2012 AwArd winners MALM AWARDED 2012 ENGINEER OF THE YEAR AWARD Brian Malm, Principal Project Manager in the Mankato office, has been awarded the 2012 engineer of the year award from the Minnesota society of Professional engineers. Brian has been an active member of the traverse Des sioux (tDs) chapter of the Minnesota society of Professional engineers (MnsPe). He has served as secretary, treasurer, Vice President and President of the chapter. He is also the current chair of MnsPe’s legislative committee.

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Initially, we were selling to businesspeople, but by 2001 cell phones were becoming more an everyday device and we were attracting younger customers. We wanted someone with the “cool teacher” look.

That happened in September 2005, and you closed in November with Alltel.

We actually signed the definitive agreement with Alltel in November and the deal closed October 2006. The deal had to pass FCC and Department of Justice approval, and Alltel had to divest of some businesses. That process took almost a year. In that year, we had to run business as usual not knowing our future. I was proud of my staff for keeping focused. Sales were great that year.

When people remember Midwest Wireless, they often think of the male actor who was on your billboards, print, and television advertising. Who came up with that advertising campaign?

David Mann was the face of Midwest Wireless. For a long time, our TV advertising consisted of voiceovers and graphics, but in 2001, to create the message we wanted, we needed a spokesperson speaking directly to the camera. Because it was winter, we decided on a TV shoot in Atlanta because in winter it looked like Minnesota in spring. We searched for a spokesperson in New York, Chicago, Atlanta, and Minneapolis—the latter on a whim, figuring if we found someone local we could more easily continue the campaign.

I watched 100 audition tapes and liked the first one I saw from Minneapolis. We kept coming back to him. He looked Minnesotan.

By this point, our demographics were getting younger. Initially, we were selling to businesspeople, but by 2001 cell phones were becoming more an everyday device and we were attracting younger customers. We wanted someone with the “cool teacher” look. We didn’t know then David had such a great voice and we ended up using him six years for radio and print, too.

While with Alltel, what drew you to Mankato Clinic?

I stayed with Alltel eight months to help with the transition knowing March 31, 2008, would be my last day. In February, Roger Greenwald, then Mankato Clinic CEO, called saying their director of public relations was leaving. (That position later became director of marketing and communications.)

Marcia Bahr | Mankato Clinic

It’s one thing selling pizzas and cell phones. Was the learning curve steeper with healthcare?

It was a huge change. However, it had been more difficult transitioning from food to technology than technology to healthcare.

My job as a marketing person is to always look through the eyes of customers. I had been a healthcare patient before, but had owned a cell phone only six months before starting at Midwest Wireless and the technology was changing. It was more difficult than learning healthcare. When Mankato Clinic changed over to electronic health records and created a patient portal for patients to access records, I had already experienced something like that at Midwest Wireless.

You were talking about electronic health records.

About 20 months ago, Mankato Clinic had a potential breach of health information involving 3,200 patients. An employee’s laptop was stolen.

It was stolen from an employee’s car. It was against our policy to even leave a laptop in a car and against policy to have patient records downloaded to a laptop. But it happened. At that point, we did not have encryption software on our laptops. Fortunately, the information didn’t list Social Security numbers or financial information. We learned a very valuable lesson from this incident. Now encryption software is loaded onto all laptops and also software that eventually erases everything on the hard drive if you try to get in without the right password.

Out of 3,200 people, at least a handful had to be angry.

We sent a letter to all and posted the letter on our website for a year. Since then, we had someone gain access into the Main Street Clinic and steal laptops, but because of the lesson learned from the first incident, there wasn’t any employee information on them. Plus,

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Organizational involvement: Messiah Lutheran (North Mankato), Salvation Army board, South Central College Foundation, Mankato Clinic Foundation (president), Area News Consortium, and MoJo Sisters Literary Guild.

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the police caught the person very quickly and it was determined there was no attempt to access any information off the laptops.

As for our patient portal, it is completely secure and a huge convenience for our patients to be able to access their health records online. Our portal is safer than your online banking information. To access it, you have to visit the Clinic in person with a picture ID and then we send you an invitation to the email address of your choice. You can only have access to your own records. If you want access to your children’s records, you have to go through another process.

You have so many locations in Mankato. Why not combine them under one roof, such as at Madison East?

We’re working on long-term strategic space planning. We’re running out of space and have many options going forward. We own the green space near our North Mankato Clinic, so we could consider building there for potential future growth or at the least replace the aging North Mankato building on Lookout Drive. We also own about 20 acres on the Wickersham Campus that would definitely be an option for expansion.

But we first have to consider any expansion options from the patient’s point of view.

What is most convenient for them?

For example, many like going to North Mankato because it’s small, easy to park, and you know everyone. Most users of our internal medicine services at our Main Street Clinic don’t like the idea of driving all the way to Wickersham. Also, many of our patients ride buses and there isn’t a bus route to Wickersham. There’s more to decision-making than having one building where everyone can go.

Multiple locations can be convenient for patients. Madison East has been a great option. We have shifted most of our non-clinical departments there to free up space for clinical departments. The parking is great and the location central to the rest of our facilities.

Marcia Bahr | Mankato Clinic

You see your physicians’ human side. What one thing would you say to our readers about them?

First and foremost, they all have their patient’s needs in mind. Sometimes patients may not feel that way because healthcare has become so complicated with regulations and insurance companies, which creates extra work for physicians. This can be frustrating for the physicians because they find it difficult to dedicate as much time as they would like to patients. Physicians like face-to-face time with patients and healing and helping. That’s why they became doctors. Things are changing so rapidly in our industry for them due to healthcare reform. It’s getting more like the wireless industry where change is inevitable and coming faster and faster.

And you have been well prepared for change.

Yes, I feel like I’ve been down this road before and we are well positioned as a clinic to focus on it.

What about Jersey Mike’s Subs on the Mankato hilltop?

My husband and I own it with partners Mike Nolan and Kevin Bores. Kevin called out of the blue to say he was starting something fun and asked if my husband and I would be interested. We’ve always had an entrepreneurial spirit. Although Kevin handles most of the marketing, he does consult with me. My husband does bookkeeping and payroll. Our son works there. My husband had an easier time making the decision to buy in. I’m more conservative and frugal and like saving.

Our plan is to have more than one store.

We have to see if Mankato can support another location and what markets we would consider next.

Jersey Mike’s is unique because everything is fresh. We slice the meat in front of you. We slice all our vegetables and roast our beef every morning. We try having a friendly, outgoing crew that badgers you a bit in a friendly, fun, East continues next page > Coast-like way.

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THE ESSENTIALS

Mankato Clinic Address: 1230 East Main Street Mankato, MN 56001 Web: Mankatoclinic.com Telephone: 625-1811

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In southern Minnesota, it’s really important to be a generalist. You need to know something about everything. You can’t just be focused on public relations or event planning or building an advertising plan or your media mix. You have to understand the business side and your return on investment for your marketing dollar and how those pieces relate.

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What are some common mistakes people make in marketing?

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You have to know what your brand stands for. For example, at Midwest Wireless, we went through a strategic planning session to define our identity. Could we compete on operational excellence, being consumer centric, the high-tech leader first to market with all the cool things, or being the brand giant, like Coca-Cola? In this session involving upper management, we had people in each camp. Engineering thought we were the high-tech leader and some thought it was operational excellence, and so on.

We soon realized the only place we could compete well was in being a customer centric brand and so we re-launched a branding campaign with the tag line, “We answer to you.” It’s one thing to have a tag line, but another to live up to it. But we knew we were already living up to it. The biggest mistake is being everything to everyone.

Editor Daniel J. Vance writes from Vernon Center.

Comment on this story at connectbiz.com

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CONNECTING BACK

Read the entire articles at connectbiz.com

1 YEAR AGO

JULY/AUGUST 2011 Mike Nolan of Minnesota State-based Small Business Development Center appeared on our cover and his introduction included this paragraph: “In the Internet’s early days, Nolan began four Internet-based companies right after his 30th birthday, including Minnesotacars.com.

He would co-own and sell three radio stations by age 35, and begin traveling the world and earning an MBA in Australia at age 40.”

Other companies featured: Pediatric Therapy Services (Mankato) and Foty Lock & Safe (Fairmont).

Memorable quote: “I have known great entrepreneurs who are introverted numbers geeks and others with bigger-than-life personalities. The ones who get it realize they can’t do it alone.”— Mike Nolan, referring to the characteristics of successful entrepreneurs.

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5 YEARS AGO

JULY/AUGUST 2007 Our cover story was Flip Schulke, who grew up in New Ulm and became a world-famous freelance photographer.

Other featured companies: Professional Cleaning Services (Le Sueur) and Bolton & Menk (Mankato).

Memorable quote: “I am a total German, meaning everything has to be eins, zwei, drei—in order. It was built into my genes. I wasn’t taught it. That is the way people were in New Ulm then.”—Flip Schulke.

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JULY/AUGUST 2002 Cover story: Lowell Andreas (Mankato).

Profiled companies: Nicollet South Bike Shop (Nicollet) and Coughlan Companies (Mankato).

WESTMAN-MANKATO • 800-625-4118 • 507-625-4118 15 YEARS AGO

JULY/AUGUST 1997 Cover Story: Karl Johnson of North Mankato.

Profiled companies: Arneson Distributing (Sleepy Eye) and Russell Associates (Le Sueur).

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Springfield-based company generating excitement with green energy, electricity, and hot pizza.

Years later, a physician said he should have died.

In 1980, then 25-year-old Tim Lipetzky was an electrician working inside a Lakefield hospital when he felt an ache arcing through his stomach. He told a registered nurse about the pain, but would wave it off before leaving that night. At home later, his wife pestered him into visiting a doctor. It hurt.

“I had cancer,” said Lipetzsky in a Connect Business Magazine interview from his 23-employee L&S Electric headquarters in Springfield, where he also owns the nation’s first stand-alone Hot Stuff Pizza Buffet franchise and Green Energy Products, a solar and wind energy business with a satellite office in Mankato. Almost whispering, Lipetzky went on about his experience: “They did a chest x-ray before surgery and found a tumor on my right lung the size of a softball. It was advanced testicular cancer. The tumors had moved into my stomach and lung. But I felt good. I was 25 and had never been sick a day in life and never missed a day of school or work.”

After his first surgery, a nerve-wracking eight-hour affair in Rochester, he couldn’t work for more than eleven months. Brutal chemotherapy treatments sapped energy. His wife had just given birth to their first child. Lipetzky tried applying for government assistance, but was rejected due to having $1,500 in savings—even though his medical bills had reached $20,000. He was accepted for food stamps, but was so embarrassed to redeem any he snuck off to grocery shop in Marshall, far from the eyes of neighbors and friends.

“The way we were brought up, you just didn’t take handouts,” he explained.

When returning to work in July 1981, he pledged to his wife they would never again face another devastating financial hardship. Once was enough. In an effort to make good on his pledge and build a financial cushion, Lipetzky started L&S Electric in early 1984 with about $500 saved up. continued > JULY/AUGUST 2012

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Earth Wind & Fire

“The way we were brought up, you just didn’t take handouts.”

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The fifth of eleven children born into a close-knit Roman Catholic family, Lipetzky grew up on a family farm ten miles north of Springfield, where he began his first business venture at age 6. While at the Sleepy Eye auction yard, an auctioneer and his father both urged him to buy two scrawny piglets. “And I will never forget when they were sold my father gave me $66 for them,” said Lipetzky. “The money was in silver dollars and I could hardly hold the coins because of the weight. After that, I was always doing things with business.”

The Lipetzkys often worked and lived as a team, which sometimes involved playing softball, walking the beans or doing kitchen work—and everyone had their turn. He said, “I feel sorry for some of the smaller families today that have just one or two kids. They don’t get to build the relationships with their brothers and sisters, especially if there are a lot of years in between.”

After Mass each week, Lipetzky’s father gave each of his children a nickel to buy candy, which was their only weekly treat.

Family reunions usually had up to 40 children playing outdoor games. The entire

family grieved when the oldest son died in Vietnam in 1969. Mom worked part-time, and dad was a full-time farmer raising dairy cattle, chickens, hogs, and tending 200 acres. Theirs was a frugal, conservative lifestyle light years away from one experienced by modern American children that thumb cell phones and manipulate Xboxes.

Lipetzky would become an electrician for Brandt Electric and meet Korean-born Hyon at a dance in Sanborn. She had been living with her sister in Minnesota. The couple dated and married in 1979 and right away had a child three months before Lipetzky was diagnosed with cancer.

His first surgery, which lasted more than eight hours, left a Zorro-like scar across his stomach from one side of his body to the other. He went on chemotherapy, which back then was a physically exhausting seven-day ordeal every six weeks. The day he drove to his scheduled lung surgery at St. Mary’s in Rochester was the same day deranged John Hinckley shot at President Reagan. By then, Lipetzky weighed just 114 pounds and would lose the upper right lobe

Earth Wind & Fire

Hot Stuff Pizza On July 1, Tim Lipetzky’s Hot Stuff Pizza Buffet franchise opened in a former Chevrolet dealership building in Springfield.

He said, “My son said he always liked Hot Stuff Pizza. I told him to contact them to see if we could do a stand-alone restaurant.

So we contacted Orion Foods of Sioux Falls. They were thinking along the same line. So Springfield has the nation’s first standalone Hot Stuff Pizza Buffet franchise. They have it in 1,100 convenience stores and one stand-alone. Ours is the prototype.”

26

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L&S Electric | Springfield

“As a boss, I’m not really the boss.

Everyone working for me is the boss.

They tell me what we should do. I’m here only to put out fires.” of his lung in surgery that day. At least two doctors over time would say he shouldn’t have survived the ordeal.

“And every day since, the first thing I say after waking up is, ‘Thank you, Lord, for another day,” he said. “I sometimes wonder why I had a second chance. Some people don’t.”

After an 11-month recovery and several more years of working for Brandt Electric, “in March 1984, I broke out on my own (with a partner),” he said. “I just felt it was time and was worth the risk. It was difficult because I was used to getting a weekly check and the economy wasn’t going very well. But I was ready for having my own business. All those years working for Brandt Electric, I would raise pigs, rent land, and farm on the side. I was always

doing something on the side anyway.” And he also had that financial pledge he made to his wife.

He won his first two bids within 24 hours of each other: Tauer’s Grocery Store in Springfield and a Windom hospital clinic addition. He also had some work regularly coming from Sanborn Manufacturing in Springfield. By the end of his first year— even though he struggled at times eking out payroll—he had 13 employees.

By 1990-91, the company was going great guns with up to 40 employees and was the first business settling into the industrial park on Springfield’s west side. The company began a seven-year stretch of having a maintenance crew work on site in Marshall at a corn processing plant. Also about 1990, the company became a subcontractor for a Tracy business specializing in lighting

THE ESSENTIALS

L&S Electric Location: 1315 W. Central Street Springfield, MN 56087 Web: greenenergyproductsllc.com Telephone: 723-4885

retrofits for Xcel Energy customers.

“And also that same year (1990), we ran into a company that asked about our providing cardboard storage for them,” said Lipetzky. “So we rented a building to and hauled cardboard for Rapid Packaging, who supplied cardboard product to a large window company. “ He attributed the company’s success through this growth period and beyond to a lot of hard work he and his employees spent building relationships with customers and contractors, which included being competitive with pricing, on time with product, and on schedule with contractors and owners.

(His first employee, Larry Kohout, still works for him as an estimator.) He believed in his employees and gave them a great deal of power on job sites to make many of their own decisions. They have always tried doing continues next page>

JULY/AUGUST 2012

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Earth Wind & Fire

keep them healthy and happy. occupational medicine services Mankato Clinic Urgent Care @ Adams Street is your provider of Occupational Medicine Services.

Our staff will collaborate with you to help manage risk factors, keep your employees healthy and happy and get them back to work quickly and

“We had started looking at doing solar and wind, and started calling Sunpower (a solar manufacturer) and emailing them weekly for eight months straight. We became their first dealership in Minnesota.” that “little extra” to make sure the owners or contractors were happy, he said.

He said, “As a boss, I’m not really the boss.

Everyone working for me is the boss. They tell me what we should do. I’m here only to put out fires.”

Having talented and hard-working employees he could trust gave Lipetzky the confidence and extra hour or two daily to try his hand at dabbling in side businesses—something he had done his entire life. His electric business was booming. In the late ‘90s, he began two new business diversions for fun and profit: Springfield Fish, which was a company that raised 2,000 yellow-striped perch at a time for resale to a buyer in Wisconsin; and a day trading career of buying and selling stocks through Scottrade.com. Both of these diversions ended within a few

years. The perch company went belly-up when the sole buyer stopped buying and competition was rumored coming; and day trading ended when his wife felt he was neglecting L&S Electric. The former company—Springfield Fish—never made much money, while day trading turned a tidy profit and could have been a fulltime career even though this was during the stock boom years of 1998-2001 when many people made money trading stocks.

L&S Electric maintained growth into 2005 until two rather large electric jobs literally ended the same weekend. Lipetzky had 42 hungry employees and not enough work.

The company couldn’t get a bid, he said.

He had to lay off almost half his workforce.

“The economy was beginning to go down, too” he said. “It was difficult letting people go. I just had to hang my head and tell them I was sorry. My dad gave me

safely after an injury.

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Earth Wind & Fire

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Keep Working, Tim L&S Electric owner Tim Lipetzky said, “Having family members come into the business has helped me provide a future for them. My son Phil and daughter-in-law are here. One daughter is a graphic designer and another a web designer—both from Minneapolis. I could have retired six years ago, but feel an obligation to them. My accountant says I should keep working because I will never adapt when I retire. I don’t hunt, fish or golf.”

L&S Electric | Springfield

advice by saying I had to do what was best for the company to make sure it survived.

If the company didn’t survive, then literally everyone was out of a job.” That same year, he bought out his partner, who by that time held only five percent of the business and ended up started a company in Willmar.

Just like cancer moved him to start a new business, having to lay off so many eventually did the same. He saw the bread-andbutter construction market fading, profit margins narrowing, and he had only so much operating capital to keep L&S Electric employees working in shop between jobs.

He had to diversify—and fast.

In early 2008 after much preparation, he launched Green Energy Products. He said, “We had started looking at doing solar and wind, and started calling Sunpower (a solar manufacturer) and emailing them weekly for eight months straight. We became their first dealership in Minnesota.” His starting Green Energy Products, he said, not only provided a much needed revenue influx, but also probably saved L&S Electric, the mother company.

Asked to give Connect Business Magazine readers his best solar sales pitch, he said, “First off, it will lower your operating costs.

I feel it’s a very good investment because Sunpower has the most efficient solar panels. For example, they just made the Guinness Book of World Records this year for having the most efficient panel. Even on a cloudy day, you will do anywhere from

30 to 70 percent (of maximum energy production). I’m a believer that if I want you to buy solar or wind, I should own some myself. So I have three solar systems and three wind generators, so I can get my own production data. Payback is in the eight- to twelve-year range depending on rates and incentives. It has a 25-year warranty and the life expectancy of a Sunpower solar panel is more than 50 years. My electric bill last month was a minus $3.25. As for the environment, because of my 18 solar panels I have not emitted 30,000 pounds of CO2.”

As for wind power, Green Energy Products buys from Southwest Wind of Flagstaff, Arizona, which manufactures smaller wind generators retailing for about $15,000. Customer payback has been seven to twelve years depending on wind conditions, which can vary considerably from year to year.

Said Lipetzky, “We have installed about 50 (wind turbines) in the Midwest and 120 solar systems. One thing not discussed in terms of payback is the residual value. For example, my son started out in solar with a different brand at his home. When we became Sunpower dealers, he took the old one down after two years and was able to sell it for what he had paid initially.”

The company recently opened a new Mankato office next to Zanz Mexican Restaurant after having been in the nearby Mankato Design Center. Tim Schwartz of Brown and Brown Insurance helped find a location. The Mankato office has been

Earth Wind & Fire

Community Involved Lipetzky volunteers up to 15 hours monthly with the Springfield power utility, which includes offering advice on long-term power contract decisions. For years, he was on the Springfield hospital building and finance committee, and worked on that entity joining Mayo Clinic Health System.

Earth Wind & Fire

managed by Drew McCabe, an MSU construction management graduate Lipetzky hired on sight at Red Lobster where McCabe was working as a part-time waiter while going through school.

Today, Green Energy Products doesn’t have any employees per se, only crosspollination with L&S Electric, which has workers commuting to job sites from their homes all over, including Willmar, New Ulm, Jeffers, Lamberton, Springfield, and Mankato. L&S Electric itself lately has been staying busy working on a hospital project in Slayton, a clinic addition in Marshall, a remodel at the Jackson hospital, and ongoing work for hospitals in Springfield and Windom. The company also does some lighting retrofit and energy management work. Lipetzky sees his 28-year-old business as being centrally located: Marshall is 56 miles away, Willmar 61, Worthington 57, Jackson 42, New Ulm 28, and Mankato 58.

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That 1980-81 cancer scare changed Lipetzky inside out. He said he still hasn’t figured out why he received a second chance, but then again, maybe other people have. This soft-spoken, humble man makes a habit of doing random acts of kindness for people less fortunate.

For example, he said, “One winter day, my wife and I went to Mankato. On the way back, there were these homeless guys on the east end of Springfield. When the workday was over for us, they were walking out on Highway 14 near our shop. I went out and asked what they were doing. They wanted to get to the Salvation Army in Brookings. So I gave them a ride 90 miles to Brookings. I wasn’t doing anything. They had gotten a ride earlier with someone in a motor home. The bags they had were still in the back of the motor home because the guy had forgotten to unload the bags.

One of the homeless guys was frostbitten.

In Brookings, I got them a motel room and went to Wal-Mart to buy clothing. I always think back that could have been me.”

Editor Daniel J. Vance writes from Vernon Center.

Your local independent agency representing

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OUTSTANDING

BULLETIN BOARD

Any chamber of commerce, convention and visitors bureau, or economic development organization in our reading area—large or small, from Amboy to Waterville—can post on our free bulletin board. For details, email editor@connectbiz.com.

Stub Highway 253 music, and a Girl Scouts fundraiser meal. Don’t forget to visit Giant Park and Giant Museum.

Fairmont Bob Wallace, Fairmont Area Chamber

Madelia Karla Grev, Madelia Chamber

Come to Madelia on July 12-14 for our annual Park Days Celebration in Watona Park.

New this year, the Chamber kicks off the weekend on Thursday July 12 with a family cookout, games, and movie in the park starting at 6 p.m. The weekend includes a burnout competition, fireworks, musical entertainment, children’s theater, The Grand Parade, kids pedal pull, and a variety of sporting events, vendors, and food. Visit our website visitmadelia. com or call 642-8822.

Blue Earth Cindy Lyon, Blue Earth Chamber The Anton Chekhov play The Cherry Orchard will be August 8-12 for $15. Call 526-2916 or visit blueearthchamber.com for details.

The Chamber hosts “Art in the Park” performances this summer at Gazebo Park with the final one being August 23 at the Water Park for a “Pool Party Splash” that includes swim suit contests, free swim,

Martin County is Minnesota’s leading pork producing county. To recognize the importance of the pork industry to Martin County and the State of Minnesota, the Martin County Pork Producers and the Fairmont Area Chamber of Commerce have joined together to host the 20th Annual Minnesota State Pork Masters Golf Outing on Monday July 23 at Rose Lake Golf Club. Nearly 100 sponsors and over 250 golfers will participate to raise funds for Ag-Awareness and Scholarships.

Faribault County Lindsey Warmka, FCDC Coxworth Water Conditioning, owned and operated by Jeremy and Tara Coxworth, has expanded operations to include a water bottling facility. Created as a home-based business, Coxworth Water has grown by leaps and bounds and serves Martin and Faribault Counties and northern Iowa. It’s located on Main Street in Blue Earth. For more information on products and services—including coffee, softener salt, and other water conditioning equipment—telephone Jeremy or Tara at 526-3799.

Lake Crystal Julie Reed, Lake Crystal Chamber Crystal Seasons Living Community welcomes new Human Resources Director Deb Gravell, who has been employed with The Thro Company 27 years. Formerly employed as a certified nursing assistant and scheduler, Deb is looking forward to being

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Jonathan Zierdt, Greater Mankato Growth

Lynette Peterson, North Mankato Convention & Visitors Bureau

Since its launch in 2009, the community-wide online events calendar greatermankatoevents. com has had more than 200,000 visits from more than 120,000 unique visitors. If your business or an organization with which you are involved has an upcoming event, post it for free on this popular, comprehensive events calendar. You can also visit the site to learn when potential customers might be in your area for an event. For more information, visit greatermankatoevents.com.

The Belgrade Blues Festival will be held on Belgrade Avenue in lower North Mankato on Saturday July 21. Come relax to the music and support Belgrade Avenue businesses. Finally, the City of North Mankato will host the Men’s Fast Pitch ASA National Championships for Class A, B and C West at Caswell Park August 30 through September 2. We anticipate a great tournament and look forward to some exciting softball.

part of Crystal Seasons Living Community as it continues growing.

Mayo Clinic Health System is now established in the same building as Crystal Seasons—and tenants will no longer have to leave the building to receive high-quality healthcare.

and experience the fun and fanfare of Vikings Village. For more information and/or to learn what else Greater Mankato has to offer, see the Greater Mankato Convention & Visitors Bureau website at visitgreatermankato.com.

Mankato Christine Nessler, Greater Mankato CVB

Mankato Julie Nelson, South Central Minnesota Small

Vikings Training Camp 2012 will be July 26 through August 16—the 47th year the Minnesota Vikings have called Mankato their summer home. Last year, fans came from 28 states, over 100 Minnesota cities, and Canada and England to watch daily practices

LegalCORPS has developed a pilot program to help Minnesotans bring new innovations to market. Its Inventor Assistance Program (IAP) will arrange free or low-cost patent law assistance for low-income

Business Development Center

BULLETIN BOARD

Local Chamber & Economic Development News

inventors who have submitted provisional U.S. patent applications for viable inventions. To receive free assistance, applicants must meet income guidelines and their inventions must be viable for patent protection. For more information, visit legalcorps.org/inventors/ inventors or contact Janet Schafer of Legal CORPS at 612-278-6348.

Sleepy Eye Kurt Kramer, Sleepy Eye EDA

New Ulm Terry Sveine, New Ulm CVB

The Veteran’s Park Project has progressed well. The parking lot and sidewalks have been completed, and some landscaping beds and the water line have been installed. Concrete and paver work will begin soon.

Local businesses have provided some financing for Phase One completion. Another recent activity involving local businesses—along with our local high schools—is a possible “On the Job Training” program involving high school seniors connecting with businesses to learn trades and occupations.

Get ready to be German for a day—July 20-22 in New Ulm is Bavarian Blast time. Now in its seventh year, “The Blast” just continues to get better, this year adding a beer barrel-rolling contest; a sauerkraut-eating contest; a brat fest; and even more crafts. The music selection is excellent with the high-energy Alex Meixner Band leading the charge, along with many past favorites and new ones.

Dance your lederhosen off. See bavarianblast.com.

Sleepy Eye Julie Schmitt, Sleepy Eye Chamber Sleepy Eye Chamber of Commerce began a Business to Business Education and Networking series involving 10 local businesses presenting information on the nature of their business, their target market, and what items or services they sell or specialize in. The intent is to help drive more business and referrals to Chamber members. The first two sessions were well attended and successful.

Waseca Kim Foels, Waseca Area Chamber

Springfield Marlys Vanderwerf, Springfield Chamber Springfield business in the spotlight: Springfield Signs. Owner Adam Wensich has twelve years experience in the industry. His company can create signs of all kinds and dimensions, including banners, labels, vehicle wraps, and truck lettering. Springfield Sign adds a new dimension to Springfield’s Main Street while servicing the local area with unique designs and signs. You can reach their business at 10 East Central Street at 723-7446.

Waseca Area Chamber of Commerce invites you to Lakefest festivities July 4—a family event at Clear Lake Park. The day has a five-mile run/walk, the Lakefest Freedom Fun Run, with registration beginning 7:30 am. Live, free music entertainment in the band shell from 1:00 p.m. to dusk. Food vendors, games, and craft sales. Boat parade 4 p.m. Bring a lawn chair and watch the fireworks over Clear Lake. For other summer events, see discoverwaseca.com/visitors.

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BUSINESS TRENDS

HEALTHCARE

From a highly charged New Ulm Journal editorial: “Our nation is one—or was, until the social engineers of the Obama administration took over—in which the freedom of the individual to make his own decisions about issues that concern only him is paramount.

The national healthcare law—Obamacare—wipes away that liberty and sets the stage for worse to come.”

The Journal in late May was prompted to opine after learning of 43 Roman Catholic universities, archdioceses, hospitals, charities, high schools, nursing homes, organizations serving people with disabilities, and print publications suing the federal government over a provision of Obamacare forcing these institutions and others to provide employee health insurance coverage for birth control and abortion-inducing drugs.

It is possible the Supreme Court will strike down all of Obamacare before we publish our July/August issue. If it does—

and the 43 Roman Catholic institutions drop their lawsuit—the debate will still rage on about whether the federal government can force religious institutions to buy something that goes against their faith.

One Catholic university joining the lawsuit, Franciscan University of Steubenville (Oh.), already has ended its student health insurance program to follow conscience rather than submit to federal decree. Referring to Franciscan, foxnews.com reported, “In its decision to drop coverage, the school cited the contraception mandate, but also a requirement that the maximum coverage amount be increased to $100,000 for policyholders—claiming that would have made premiums skyrocket. A university official told Fox News Radio the students’ basic $600 policy was going to double in cost in the fall and triple next year and that the school’s insurance provider said the increases were the result of the federal Patient Protection and Affordable Care Act.” Catholic businesses and organizations (and employees) potentially affected in our reading area include Divine Providence Nursing Home (Sleepy Eye), Presentation College (Fairmont), Benedictine Living Community of St. Peter, Mankato Area Catholic Schools, New Ulm Area Catholic Schools, St. Mary’s Church & School

(Sleepy Eye), St. Mary’s Catholic School (Madelia), St. John Vianney School (Fairmont), Sacred Heart School (Waseca), St. Casimir’s School (Wells), St. Anne’s School (Le Sueur), School Sisters of Notre Dame (Mankato), St. Raphael’s Catholic School (Springfield), and John Ireland Catholic School (St. Peter).

It appears at least one school won’t comply. In a Connect Business Magazine interview, Business Manager Matt Grausam of St. Mary’s Church & School in Sleepy Eye said, “Yes, the (Obamacare) mandate would affect us. Our church doesn’t believe in many stipulations of the mandate. So we ultimately wouldn’t be able to offer health insurance to our employees because we don’t believe in what the mandates state.

It would be a difficult situation for us. For us, it comes down to faith, and trust, and God, knowing he will take care of us if we fight for what we believe in.”

But again, the possibility still exists St. Mary’s Church & School (and potentially other Catholic organizations) won’t have to take a stand. The New Ulm Journal explained: “The so-called ‘individual mandate’ already is before the Supreme Court, which is expected to issue a ruling this summer. If it decides against Obamacare, the Catholic lawsuit may be moot. Let’s hope so.”

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BUSINESS TRENDS

ENERGY

While U.S. coal consumption has fallen due to cheap natural gas and new rules for power plants, U.S. coal exports have been rapidly rising—much to the chagrin of environmentalists who see increased usage anywhere as a global environmental threat. U.S. coal exports in 2011 were the highest since 1991, double that of 2006, and worth $16 billion.

According to U.S. Energy Information Administration numbers, U.S. coal exports from 2010-11 increased 31 percent overall, which includes 41 percent to Europe, 54

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percent to Asia, 56 percent to Africa, 18 percent to South America, and 183 percent to Australia. In 2011, the U.S. exported 107 million short tons (mst). The nations receiving the most U.S. coal last year were The Netherlands (10.8 mst), South Korea (10.4 mst), Brazil (8.6 mst), United Kingdom (6.9 mst), Japan (6.9 mst), Canada (6.9 mst), Italy (5.6 mst), and China (5.6 mst). As for countries with the most rapid growth, from 2010-11 alone, coal exports jumped 81 percent to South Korea, 102 percent to Ukraine, 100 percent to Denmark, 118 percent to Japan, and 162 percent to Morocco.

All this has occurred as U.S. consumption drops. According to EIA, U.S. coal consumption for electric power purposes—by far the biggest user of coal—fell from 1.04 billion tons in 2008 to .92 billion tons in 2011. The U.S. produces about 1.1 billion tons of coal annually.

Coal’s U.S. power supply market share has dropped 20 percent over the last few years. With demand flagging, producers

have been scrambling for markets outside the United States. It wasn’t long ago when the DM&E Railroad was pushing hard for the right to transport Wyoming and Montana coal through southern Minnesota to hungry power plants. My how times have changed: Now coal producers are clamoring for improved East and West Coast port capacity to increase exports rather than improved rail for shipment domestically.

Port upgrade proposals are pending in Washington state (to handle Powder River Basin coal, for example), on the East Coast, and in Houston, Texas.

TAXES

The Tax Foundation reported New York State had the largest negative net population migration of any state from 2000-10 losing 1.3 million people and $45.6 billion in income, according to cnsnews. com. Not surprisingly, New York also had the highest tax burden for people of any state from 1977-2006 and second highest in 1984 and 2007-10. In part, this information came from The Tax Foundation’s state-by-

state online migration calculator—and makes interesting reading. According to that calculator, what surprised most were the state of Minnesota’s results, such as to what states the Gopher State had lost/ gained net tax filers and lost/gained adjusted gross income.

From 2000-10, the ten states gaining the highest number of former Minnesota tax filers (the Tax Foundation could only measure the number of tax returns, not people) were Florida (9,461), Arizona (8,429), California (6,016), Texas (5,805), Colorado (4,921), Washington (2,920), Nevada (2,072), Oregon (1,970), North Carolina (1,735), and Georgia (1,690). These ten states gained a net 45,019 former Minnesota tax filers and $3.9 billion in adjusted gross income (inflation-adjusted to 2010 dollars).

The ten states losing the highest number of tax filers to Minnesota were Iowa (5,325), Michigan (3,770), Wisconsin (3,653), North Dakota (2,981), Illinois (2,778), Ohio (1,196), Indiana (946), New Jersey

(858) Nebraska (823), and Kansas (401).

These ten states lost a net 22,731 tax filers to Minnesota and $1.8 billion in adjusted gross income (inflation-adjusted to 2010 dollars).

The Tax Foundation stated: “Interstate migration is not the only factor that affects state population growth. Foreign migration, new births, and deaths must also be considered to get a complete picture of a state’s population and our tool does not include that data.” The Tax Foundation also noted that individual tax returns include dependent children and that married couples generally file a single joint return. So its numbers do not measure actual population flows; but does measure adjusted gross income gain/loss.

The State of Minnesota could lose a great deal of tax revenue in years ahead if a significant portion of the Baby Boomer generation decides to follow their parents’ lead by retiring to tax havens such as Florida and Texas.

OFF-THE-CUFF

As always, Vernon Center on July 4 begets big bangs and a parade of orange and red fire trucks and a heavenly sprinkling of kiddie candy.

It’s where I have Independence Day fun. So in that spirit, I’m going to have fun with this column and light some M-80s. Hold your ears and away we go….

Over the years, I have read so many online news articles about government mismanagement of tax money that seeing new examples usually just causes shrugged shoulders and heavy sighs and nothing more. But on rare occasions I become a bit worked up and sometimes write about it here. That writing acts as a catharsis. It’s great mental health therapy. While reading a news article recently from nbcbayarea.com, I became a tad more worked up than usual. For whatever reason, I couldn’t stop thinking about how hard many of you (and I) work to earn the tax money our government sometimes wastes (see below)—and how government inefficiency causes so much needless personal suffering....

From nbcbayarea.com: Two federal stimulus grants of $1.5 million combined are funding University of California San Francisco (UCSF) research studies on “the accurate reporting of someone’s sexual history” and “erectile dysfunction of overweight middle-aged men.” I don’t know about you, but to me $1.5 million seems a lot.

The first of the two UCSF studies, which cost us $1.26 million, involves California researchers trying to identify ways to better assess the HIV/AIDS risk of people with multiple partners and those with sexually risky behaviors by improving their sex survey response accuracy on sexual behavior questions. According to UCSF’s grant application on recovery.gov, the researchers interviewed 200 people

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using “an innovative method of administering a survey interview— conversational interviewing—that has shown remarkable improvements in respondents’ understanding of survey questions and in the accuracy of the responses when compared to administering it using the standardized interviewing method.”

An NBC Bay Area Investigative Unit (from a San Francisco TV station) learned the study included 200 people interviewed, 11 university researchers, two consultants, and created/saved exactly 0.78 jobs, which most certainly meant the 11 researchers were already on salary. Somehow they spent $6,300 per person interviewed.

I can do the math. Had that $1.26 million been used exclusively to actually create jobs it could have employed, for example, 11 additional full-time university researchers earning $50 an hour for about 57 weeks.

But for some reason that $1.26 million resulted in only 0.78 jobs created/saved—in other words, the equivalent of one part-time worker.....

In the other grant you and I paid for, according to recovery.org, UCSF was a $251,000 subrecipient of a $726,000 Rhode Island hospital grant designed “to complete the scientific planning and administrative activities required to conduct a clinical trial on the efficacy of Daniel J. Vance lifestyle intervention to treat obese men with Editor erective dysfunction…Recent studies suggest that lifestyle intervention (weight loss and increased activity) may offer a promising new approach that could improve erectile dysfunction and reduce cardiovascular disease risk.”

I don’t know about you, but to me $726,000 seems a lot—especially when the project created/saved just 1.61 jobs. I can do the math. That $251,000 sent to San Francisco alone could have created summer jobs for 70 unemployed, inner-city youths working at $10 an hour for 30 hours a week over 12 weeks.....

Three logical questions: How many jobs could you create with $1.5 million? Could you surpass the overall federal stimulus ratio of one job created/saved for every $278,000 spent? And finally, and most

BY DANIEL J. VANCE

importantly, how many Americans right now—or Minnesotans, for that matter—are unemployed and on food stamps and emotionally suffering because this inefficient “jobs” stimulus package specifically created to employ them didn’t?

As editor, I often hear business owners large and small describe the constant pressure they feel knowing the effectiveness (or lack thereof) of their business decisions ultimately will affect their employees’ lives and families. Many deeply fear unwisely spending their money and because of it perhaps having to lay off employees. Somehow I don’t believe government decision makers—Republican, Democrat, and bureaucrat alike—feel that same burden and pressure when supposedly trying to create the maximum number of jobs per taxpayer dollar spent.....

Now I feel a catharsis coming on. Thanks for reading over the last 18 years southern Minnesota’s first and only locally owned business magazine. Stay tuned because we have a surprise brewing for our September/October issue. Until then, have a great summer.

Editor Daniel J. Vance self-syndicates the newspaper column “Disabilities.” Email press releases and letters to the Editor by August 1 for the September/October issue. We may edit for space and clarity.

MAY ’12 ISSUE CORRECTIONS The telephone number of Elder Care Services should have been 507-243-3603.

Lastly, we compared in this column, NBA teams in states with no personal income tax and their remarkable successes on the basketball court with NBA teams in states with the highest personal income tax rates and their collective on-court blues. For example, the six NBA teams in states without any personal income tax averaged 47.9 wins a year from 2002-11 and the seven teams in the highest–tax states won only 38.7. We stated that NBA teams in no-tax states apparently had a distinct advantage in being able to offer the best NBA players a huge tax break.

However, our list of NBA teams in high-tax states, which included the District of Columbia, omitted the Washington Wizards because of our believing they were headquartered in Maryland. However, they have called high-tax Washington D.C. home since 1997. But it would appear the inclusion of the Wizards would only strengthen our hypothesis that NBA teams in high-tax states are at a huge disadvantage in being able to lure top-tier talent. The woeful—and highly taxed—Wizards players averaged only 34.1 wins annually from 2002-11.

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By Carlienne A. Frisch Photo by Kris Kathmann

St. Peter business m anufactures tree-trim ming equipment to clear and maintain utility right-of-ways in Nort h America and Euro pe.

Stepping through th e door of the Jarraff Industries office on Peter, the reporter fir the north side of St. st sees a four-foot-h igh stuffed giraffe. Too big toy, the giraffe wear to be a child’s s a kerchief proclaim ing the name of the much imagination to business. It doesn’t tak make the connectio e n between the longtree-cutting equipm necked animal and ent George Boyum th e be gan producing 35 ye His daughter, Heid ars ago. i Boyum, Jarraff Indu stries’ 44-year-old pr of her office to greet esident, steps out the visitor, but she’s edged out on the we year-old German wi lcome by Sky, an eig re-haired pointer. Th hte dog’s tail wag is fo visitor’s hand. As Bo llowed by a lick on th yum and the reporte e r settle at a table, Sk able on the office co y makes herself com uch near a file cabin fortet covered by giraffes stuffed giraffes, delic of all sorts—cuddly ate metal giraffes, an d a gir affe in the shape of a wooden puzzle. completed Jarraff Industries has been part of Boy um’s life from the tim ster taking part in tra e she was a youngde shows during fam ily vacations. “It was “My mother, Jan Bo a lot of fun,” she said yum, was a teacher . at St. Peter State Ho porting the family du spital for 20 years, su ring the business sta prt-up. She wasn’t invo but enjoyed develop lved in the business, ing relationships at trade shows. I absorb but didn’t realize it at ed many things there, the time.” continues >

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The Zookeeper

Jarraff All-Terrain Tree Trimmer

Boyum began telling the company story, saying, “We provide utility, pipeline and other contractors with the high quality, innovative equipment they need to safely and efficiently clear land and maintain utility right-of-ways. In either a wheeled or a track configuration, the Jarraff is self-contained and requires virtually no set-up time. This allows smaller crews to do more in less time, and since workers never leave the ground, the Jarraff provides safety to the job. Other, older technology required two or more operators at a job site—one in the bucket truck and two or three people as a ground crew, including a safety person. With the Jarraff, one person is in the equipment, while the other can be running the chipper.”

It was 1978 when George Boyum conjured up the machine that changed right-of-way maintenance in the utility industry. Though he had an education in biology, rather than engineering, Boyum began manufacturing the prototype of the Jarraff All-Terrain Tree Trimmer in the rural St. Peter farm shop of his first employee, Keith deVlaemink (now deceased), and soon rented other buildings in Mankato.

The prototype Jarraff mounted on a pickup truck had an airoperated boom and a pneumatic chain saw operated by a hand-held control panel. The machine was lightweight, able to negotiate rough 42

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Jarraff Industries | St. Peter

It was 1978 when George Boyum conjured up the machine that changed right-of-way maintenance in the utility industry. terrain, required no set-up time, and had a high degree of stability without outriggers.

Representatives from Louisiana Power and Light Company (LPL), who were searching for a machine with those characteristics to replace their traditional “cherry picker,” heard about the Jarraff and contacted its inventor. He began making alterations to meet their exact specifications, including converting the system from air to hydraulic operation. The chain saw was replaced by a high-speed circular saw. An operator’s chair with lever-type controls replaced hand-held controls.

The Jarraff, still mounted on a pickup truck, trimmed its first trees in a demonstration held in Little Rock, Ark., in 1978. The next step was to mount the Jarraff on a four-wheel-drive flatbed with dual wheels. It was then Jarraff Industries, Inc. entered into an agreement with Asplundh Tree Expert Company, a Pennsylvania firm

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Branching Out • St. Peter Area Chamber of Commerce Board • The Chamber’s Business Education Committee (involving students with businesses) • St. Peter Development Corporation • Enterprise Minnesota (providing support and education for Minnesota Manufacturing companies) • International Society of Arbor Culture • Utility Arborist Association • Tree Care Industry • National Federation of Independent Business JULY/AUGUST 2012

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The Zookeeper

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that worked closely with Louisiana Power and Light. At the same time, LPL arranged for a $50,000 research and development contribution to Boyum’s efforts, resulting in the first fully operational Jarraff trimming the trees in LPL’s Northern Division in May 1979. The Jarraff then had a reach of 60 feet. (The current reach is 75 feet.)

The first models had insulated, extendable booms to isolate the operator from electricity in case of accidental contact between the boom and a high-power line, or a branch that had fallen on the power line. The telescoping boom was made entirely of non-conductive and high-tensile fiberglass and was flexible to withstand impacts.

George Boyum’s first marketing effort was to make cold calls on prospective customers, with only a moderate rate of success.

“Father hopped in a semi, with a machine in the back, and drove south,” his daughter recalled. “Even though we already had Louisiana Power and Light as a customer, he found educating potential customers was quite a challenge at first. He sold only two machines the first year. Now we sell 90 to 100 pieces each year, depending on the economy. It’s a niche market, but right-ofways must be cleared. The reason is simple: During any kind of storm, if a tree falls on

a power line, the pole may break, and the power goes out. Having a maintenance program to remove encroaching limbs helps keep the lights on.”

From the time she was in her early teens, Boyum worked in the company’s office for her father. “He was more the entrepreneurial one and I was more organized,” she said. “I also delivered and picked up parts.”

Her career goal, though, was to be a marine biologist. As a competitive swimmer, she felt completely comfortable in the water and loved dolphins. “But I now have ear problems that prevent my swimming,” she said.

After graduating from Mankato West High School, she enrolled at Minnesota State University, taking general education and some business courses. She left and returned a couple of times, but didn’t finish a degree.

“I don’t like sitting in a classroom,” she said. “Many of our customers are in the same situation; they just got into their business, got their hands dirty, and are very successful. This isn’t a promotion for not going to a college or trade school. It’s all very important.”

After leaving MSU, Boyum sought to find herself in Colorado, where she skied, visited friends, and got her first dog, Apollo.

The Zookeeper

Boyum’s Roots 1) Grew up in North Mankato, the older of two children.

2) Favorite school subject: Humanities because the teacher related well with students and thus made an ordinary subject interesting.

3) Least favorite subject: English, because I have some level of dyslexia.

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4) Preparation for this business: Going to trade shows and working for my father as I grew up; some business classes in college.

Jarraff Industries | St. Peter

“In 2003, we sold one Jarraff to a gentleman from France who learned about us through a trade magazine. He became our first representative in Europe, but was not as enthusiastic as the gentleman with whom we now contract.

Our European representative is from the Netherlands and has access to eight countries—Germany, the Netherlands, Belgium, Italy, Switzerland, Austria, France and Spain.”

She eventually returned to Minnesota, leaving Apollo with an ex-boyfriend.

“I moved to Minneapolis and worked for Northwest Airlines for nine years,” said Boyum. “The most valuable experience was in customer service and refunds. My department was working during strikes. I walked through picket lines, never thinking anything of it. The planes were not flying, so people wanted their money back. Then, after taking concessions at NWA, I lived in and out of my car for three months. My father took my cat for me. I could have come to Mankato every night and driven back and forth, but I had wonderful friends

who would take me in and have dinner and a pillow for me. They all are still my best friends.”

With her father nearing retirement, Boyum moved to St. Peter in 1999. She and her brother, Lee (now retired), continued the business. He was in charge of product development and engineering. (“Lee was born wired as a hands-on engineer,” she said. “Our parents say he graduated from LEGO university.”) She jumped into sales and marketing.

“I had no idea how huge the arbor culture and utility industry was until I got back into

it,” Boyum said. “My father introduced two pieces of equipment in Australia in 1984.

That equipment is still running, but now some customers are retiring their 20-yearold equipment and replacing it. The equipment is still sold directly to contractors there, and sales vary from year to year.”

The company wasn’t all ‘under one roof ’ until 1998. “We had a rented Quonset hut in LeHillier (Mankato) and various buildings in St. Peter,” Boyum said. “Now we have several buildings in the present location.

The main Jarraff shop and offices were built here in 1998 because we were renting a building on this site from the St. Peter

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The Zookeeper

Geo-Boy Brush Cutter Tractor

Development Corporation. That’s where we now do our Geo-Boy Brush Cutter assembly. We built a large Jarraff assembly building, a welding and fabrication building, and this office.”

Helping Boyum manage the 36-employee company is a female operations manager. Boyum said, “Although I know more about the manufacturing process than I ever have, I’m learning still more from Kim, who has a manufacturing and accounting background.”

Two supervisors, one in welding and fabrication, and the other in assembly, report to the operations manager. A former customer is sales manager.

“We now do more trade shows,” Boyum said, “and are better at educating customers. We have articles and ads in trade magazines.

Our website and all other advertising is designed by Lime Valley Advertising. There is also word-of-mouth. Customers can be as small as a mom-and-pop business, up to utility companies, electrical co-ops, municipalities, and other government entities, such as Fish and Wildlife.”

Although her father was the first to take Jarraff international, Boyum has expanded the overseas market. “In 2003, we sold one Jarraff to a gentleman from France who learned about us through a trade magazine,” she said. “He became our first representative in Europe, but was not as enthusiastic as the gentleman with whom we now contract. Our European representative is from the Netherlands and has access to eight countries—Germany, the Netherlands, Belgium, Italy, Switzerland, Austria, France and Spain. About 15 percent of our sales in the past year were to Europe.”

Boyum’s days are fairly streamlined, each often a continuation of the previous day’s activities.

“I greet employees and check for problems in operations, which ultimately are reflected in our delivery dates,” she said. “We make 99 percent of our delivery dates. We have contract engineers, a full-time manufacturing engineer and student interns from MSU’s Engineering Department. And there are more meetings than I ever imagined.” continues on page 48 > 46

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Jarraff Industries | St. Peter

“I work 50 hours a week, less than before, but it seems non-stop because I’m thinking all the time. It’s unique, being a woman in a male-dominated industry.”

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1) Family: Sky, a German wire-haired pointer.

2) Of what accomplishment are you most proud? The growth of the business and adding a new product line—a back yard, smaller mechanical tree trimmer.

3) Most valued intangible: My health.

4) Three words that describe you: Giving, caring and fun-loving. I enjoy laughing. I’d rather use energy on that than on yelling and being counterproductive.

5) What would you change? The older I get, the more I find history interesting—I like to learn where things came from, how they evolved, and the similarities you see in things. I also wish I knew five different languages because we have customers in several countries in Europe.

6) If not in this business, what would you be doing? I’d probably be working for Delta Airlines in Atlanta or look to see what business need was not being met locally and go down that path. I enjoy working.

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The Zookeeper

In addition to routine employee and ingardening and traveling. With my father I’ve THE ESSENTIALS surance meetings, there are meetings of the been to Norway, our homeland, and traveled many community groups with which Boyum with friends to tropical destinations. I have is involved. (See Sidebar #1) There’s also the a feeling I’ll be in France before the end of Location: 1730 Gault Street peer counsel group in Owatonna that prothe year.”

St. Peter, MN 56082 vides a forum for owners of manufacturing Web: jarraff.com Boyum’s six regularly scheduled annual companies as a means of support, opinion Telephone: 934-8688 trade shows have taken her to Venezuela exchange and education. (with the Tree Care Industry Association), Despite her marketing acumen, Boyum beAustralia, Quebec City, Vancouver, and lieves her greatest strength is innovation. She throughout the U.S. In 2009, she went to Chile and Brazil on a trade explained, “I consider myself the company’s research and developmission with then-Governor Tim Pawlenty. ment person because I spend the most time with the customers and “The trip was well thought out,“ she said. “The trade mission made listen to what they talk about. The Jarraff was extremely innovative connections for anyone interested. We had translators. It was a real 35 years ago. Now I ask customers, ‘Do you have all the tools you one-on-one experience, but we also had round-table discussions, need or is there something we should be looking into?’ I’m always and spent time with the national Chambers of Commerce in both thinking, ‘What can we do to make this happen?’ Our most recent Brazil and Chile. Latin America is certainly a future business despiece of equipment is a smaller mechanical tree trimmer, the mini tination for Jarraff Industries. I have wonderful connections there Jarraff, which is designed more for residential areas. I feel with this that will help make that happen.” machine we can meet a need that contractors have had for years.

“My goal is to have two more pieces of equipment, which will “Keeping our customers happy is not difficult. I don’t think of complement our existing equipment, and still maintain the atit as a business philosophy, but if anybody can help our customers, mosphere of a family business,” Boyum said. “This can be a challenge it’s us. We need to remember that we’re the best at what we do. in itself as we grow.”

I work 50 hours a week, less than before, but it seems non-stop As Boyum and the reporter rise from their chairs, Sky joins because I’m thinking all the time. It’s unique, being a woman in a them at the door, eager for a farewell scratch from the visitor. It just male-dominated industry.” might be that the dog has the choicest role at Jarraff Industries.

Boyum does, however, have a knack for balancing work with some play. “I like jogging and walking outdoors,” she said. “I walk with the Carlienne A. Frisch writes from Mankato. breast cancer team even though I have no connection. I have a Jet Ski and enjoy boating. I spend time at my place on Lake Jefferson, Comment on this story at connectbiz.com and on occasion hunt upland birds for Sky’s benefit. I also enjoy

Jarraff Industries

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HOT STARTZ!

Very New or Re-formed Businesses or Professionals New To Our Reading Area

ST. PETER

Sew Boutique

ART SIDNER

When Kay Brandt was 10 and growing up in Tyler, Minnesota, her mother wasn’t making Barbie doll clothing fast enough and that made Brandt anxious. Said now 35-year-old Brandt of Sew Boutique in a telephone interview, “I wanted more outfits and my mother would give me pieces of fabric and her safety pins and I made outfits for hours. I decided my first Barbie outfit would be a princess cut prom dress.”

A love for Barbie dress-up morphed into Brandt in high school making half her personal wardrobe. Then her parents bought her a sewing machine as a graduation gift. While at Alexandria Technical College earning a degree in graphic art, she worked at a tailor shop. In time, she became a graphic artist at Home Magazine in Mankato and worked her way up to creative services manager. Although “really enjoying” her art department and co-workers, she left last year to pursue other interests, including painting and sewing, which she had been doing on the side for years anyway.

“I’ve been working on freshening up the building (in St. Peter) since January this year,” said Brandt, “and I opened Sew Boutique on May 1. Besides being a seamstress/tailor, I make custom clothing for people with physical challenges or disabilities, including people who have lost their range of mobility and have trouble dressing themselves.”

She makes wedding and prom dresses, does hems, mending,

and zippers, and trims men’s suits. No wedding or prom dress fits perfectly and everyone has a unique shape, she said.

“I love fabric, and fashion, and want people not only looking good in what they are wearing, but also feeling comfortable,” she said.

Brandt also offers over 100 pieces of original local art for sale, including her own.

SEW BOUTIQUE Location: 213 South Minnesota Telephone: 507-934-7397 Web: sewboutique.biz

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HOT STARTZ!

Very New or Re-formed Businesses or Professionals New To Our Reading Area

Symmetry Nutrition Club Along with his family, then 15-year-old Justin Brandt (no relation to Kay Brandt, previous page) in 1988 moved from Green Bay to Mankato after his father accepted a job transfer. After high school, he held a number of sales and customer service jobs, culminating in sales positions with Kato Engineering and Katolight.

When the latter company restructured in 2009, Brandt became unemployed. While working on a social work degree from Minnesota State University, he soon discovered a line of natural shakes/ smoothies that helped him lose 40 pounds and “doubled my energy level,” said 39-year-old Brandt in a telephone interview.

“Until then, I was living the opposite of a healthy nutritious lifestyle,” he continued. “I was suffering the consequences, including being tired all the time, overweight, and depressed.

It had come mostly from eating the American diet.”

He was introduced to a line of nutritious shakes through Energy Zone, a business in Mankato. After that business left town, Brandt and partner Rhonda Anderson liked the type of business so much they opened their own version at 634 South Front in September 2011. Symmetry Nutrition Club is as an independent distributor for a national brand using multi-level marketing.

To build their business, said Brandt, “Rhonda and I have invited thousands of people. We give customers a free nutrition meal—a smoothie—the first time in. About 90 percent of people love the taste and are surprised how good they feel from one smoothie.”

Since opening, the business has helped hundreds of people lose weight and feel better, said Brandt. Each pharmaceuticalgrade shake/smoothie has 30 grams protein, six grams fiber,

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24 vitamins/minerals, and 230 calories. Most customers use the shakes/smoothies to replace one meal a day. Brandt and Anderson also coach and educate people on eating properly.

Symmetry shakes/smoothies can be enjoyed on site or taken home as a mix. Currently, they have 200 online customers and sell about 60 smoothies per day on Front Street.

Said Brandt, “I like seeing customers get weight-loss results and have more energy.”

SYMMETRY NUTRITION CLUB Hours: 7-3 M-F and 10-3 Saturday Telephone: 317-2777 Location: 634 South Front

ART SIDNER

MANKATO

Left to right: Rhonda Anderson, Brady Barrett, and Justin Brandt

Comment on Hot Startz! at connectbiz.com

ST. PETER

Lawson Media And Publishing Change has been 27-year-old Rob Lawson’s life. Born in Arkansas, he has lived there and in Mississippi, New Mexico, Wyoming, South Dakota, and multiple cities in Minnesota— and probably other states he doesn’t remember. It was this constant change of locale that in part would prepare Lawson for the ever-changing world of media. He had to adapt.

“I’ve always been a creative person and was into art and music at an early age,” Lawson said in a telephone interview.

“My mom buying me a toy keyboard started my passion for music. That (passion) really kicked in when I was 17 at Lake Superior College with a major in radio broadcasting. It was the only thing I was interested in then. I eventually transferred to MSU (and graduated in 2007 with a journalism degree).”

In college, he wrote for the MSU Reporter and interned for Southwest Newspapers Group and No Alternative Media, which included Mankato-based Static Magazine and Two Fish Studios. After other experiences, he became editor of the Maple River Messenger before starting Lawson Media and Publishing in 2011, with the latter including Slanted Magazine (debut issue May ’12, similar to the former Static Magazine) and Mankato Gazette, an online news and tourism resource.

His offices are at 322 1/2 South Minnesota in St. Peter.

“I worked for newspapers for five years,” he said. “The media

market is changing. Some newspapers understand how to respond and others don’t.” The Mankato Gazette, which is in the “baby stages,” he said, fills a need for people in the community wanting to connect to others by giving them opportunities to submit their own news and opinion and have a say in content.

“I have an undying passion for learning, meeting new people and getting their perspectives, and documenting it,” he said. “I like seeing the reactions and getting input because that’s what’s most important to sustaining a business. You learn what customers like and don’t like. And I have spent a lot of time trying to figure that out.”

LAWSON MEDIA AND PUBLISHING Web: Lawsonmediapub.com Phone: 612-460-5851

ART SIDNER

To be considered for one of three spots in the September Hot Startz!, email the editor at editor@connectbiz.com.

Businesses considered must have started—or changed greatly in form—within one year of our publishing date.

Professionals chosen must be new to our reading area.

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Southern Minnesota Surgical introduced a new restrictive surgical procedure to help patients lose weight, the laparoscopic sleeve gastrectomy.

Southern Minnesota Initiative Fund awarded Wellcome Manor Family Services a $15,000 grant.

Fairmont From the Chamber: new members include Precision Carpet & Upholstery Care, Bents Motor Company, Moore’s Auto Repair, Sommer Outdoors, and Doolittle Carpet & Paint.

Fairmont City Council named Mike Humpal, CecD, as city administrator; he will continue his role as community development director.

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From the Chamber: new members include Danks Hydro Jetting, Symmetry Nutrition Club, and Lions Club of Lake Crystal.

Le Sueur From the Chamber: new local businesses include St. Anne’s School and Community Insurance Agency of Le Sueur.

Charles Frauendiest of Modern Woodmen of America was named to the Modern Woodmen’s President’s Cabinet.

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Clean.

Clayton Jones, and Earl Kunz in property maintenance.

Mankato From Bolton & Menk: Jon Rippke was elected board chair and Bradley DeWolf became the fifth company president, succeeding Rippke.

From HickoryTech Corporation: The company’s SuiteSolution CABS Module was enhanced to comply with FCC USF/ ICC reform for VoIP usage; the company reported first quarter earnings of $2.3 million and revenues of $46.9 million, up 22 percent over last year; subsidiary Enventis deployed a Cisco Unified Computing System at Young America headquarters in Edina.

Ecumen Pathstone Living received gifts and pledges of $140,000 to establish the Loretta A. Snilsberg Restorative Care Endowment Fund.

Edward Jones added financial advisor Sue Van Boening at 201 N. Broad.

Winners of the Mankato Symphony Orchestra Kevin Kanne Memorial Young Artist competition included Selena Janzen (violin), Luke Simonson (oboe), and Mary Goedtke.

From Marco: Company CEO Jeff Gau was named an Upper Midwest finalist in the Ernst & Young Entrepreneur Of The Year 2012 program; the company received 2012 Perfect Image Awards from imageSource Magazine at the ITEX National Expo & Conference, including “Dealer of the Year” and “Outstanding Managed Services Program“; the company received HTG Peer Groups awards for “Top Revenue Award” for their business model and CIO Steve

MANKATO

Bolton & Menk From Bolton & Menk: the firm placed #242 in the annual Top 500 engineering design firm rankings listed in Engineering News-Record.

Knutson won the “Group Member of the Year Award” for the large dealer group.

The CityArt Walking Sculpture Tour debuted 34 new sculptures in downtown North Mankato and Mankato.

Crawler Welding announced the retirement of William (Bill) Snelson after 35 years of ownership; Wyatt Hanson purchased Bill Snelson’s 50 percent ownership.

Widseth Smith Nolting added an eighth office in Grand Forks by merging with FS Engineering.

Mankato Vision Center carries PixelOptics emPower! eyeglasses.

Greater Mankato Business Accelerator selected Bethany Lutheran College student Zak Fick as the 2012 Brian Fazio Business Creation Project winner, earning him $5,000 in seed funding.

Jones and Magnus Attorneys at Law added attorneys Marla M. Zack and Jennifer Thonl.

From Greater Mankato Growth: new members include Brett’s Building, Mankato Place, Friends of the Deep Valley Libraries, Nimbus Studios, Lisa Tscherter’s Kitchen & Catering, and Buster’s Sports Bar & Grill.

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10 nationwide in terms of quality of life issues and prestige; it ranked the company No. 3 for informal training and No. 4 for formal training.

Mankato Motel Group announced Microtel Inn & Suites at 200 St Andrews Drive was renamed Microtel Inn & Suites

by Wyndham.

In honor of National Jerky Day (June 12), Jack Link’s Jerky partnered with artist Jason Mecier to create artwork made entirely of Jack Link’s Jerky and displayed in the Mall of America rotunda.

Keith Balster joined USBank as vice president private banking in the bank’s Private Client Group in Mankato.

AmericInn Hotel & Conference CenterMankato took part in a corporate event preparing hundreds of gift items for military families.

Zonta Club of Mankato, Business & Professional Women, and Women Executives in Business named Yellow Rose Award recipients Heather Thielges, Sue Chambers, and Diane Volden.

From Zonta Club of Mankato: MSU student Ozlem Barin was named the nominee of a 2012 Zonta International/Zonta Club of Mankato Jane M. Klausman Women in Business Scholarship; Sarah Weber earned the 2012 Zonta Club of Mankato Young Women in Public Affairs Award.

Jeremy Dobay was named district manager for Wells Fargo Greater Mankato district, which includes stores at Mankato Main, Mankato East, MSU Mankato, North Mankato, Albert Lea, Blue Earth, New Prague, New Ulm and Waseca.

Mankato Marathon winners will receive cash prizes, including $250 for first place.

Louise Dickmeyer was named president of People Driven Performance.

Minnesota State University named Mike Hastings men’s hockey head coach.

Larry Van Tol joined ProGrowth Bank Mankato office as vice president business development.

Joan Benoit Samuelson will be headline speaker of the 2012 Orthopaedic & Fracture Clinic Speaker Series for the Mankato Marathon.

From Greater Mankato Growth: Minnesota Chamber program Grow Minnesota! earned a Finance & Commerce Progress Minnesota award.

Educare Foundation approved Ed Waltman Mini Grants helping Mankato Area Public Schools offer enhanced educational opportunities to students at Washington Elementary, East Junior High, Dakota Meadows Middle, and East High School.

Hennepin County Bar Association gave Leonard, Street and Deinard a 2012 HCBA Diversity Award recognizing the firm’s community outreach and recruiting history.

New Ulm Allina Health kicked off Neighborhood Health Connection in New Ulm and Winthrop to help communities get healthier via free health screenings, fitness challenges, and funding to support healthy activities.

The 2012 Athena Award went to Bobbi McCrea.

New Ulm Medical Center added Dr. Tawnya Kreilkamp (family physician).

NEW ULM

New Ulm Medical Center Foundation New Ulm Medical Center Foundation surpassed its fundraising goal for expanding and renovating the Virginia Piper Cancer Institute—New Ulm, with donors giving $503,777.

NEW ULM

Sisters Bridal & Tux Sisters Bridal & Tux earned the Diamond Award from Savvi Formalwear of Minneapolis.

From the Chamber: new members include BeMobile Verizon Wireless, The Picker Uppers, Artisans at the Grand, Lime Valley Advertising, and Treasured Heritage Keepsakes; new Chamber board member candidates include Shari Fischer (Somsen, Mueller, Lowther & Franta), Betsy Pieser (New Ulm Furniture), Sarah Weidman (Beacon Promotions), and Mike Wise (Connecting Point Technology).

From the Chamber: M&R Paving and Excavating is building a new office behind J&R Schugel; Microtel Inn & Suites received “Surprise and Delight” award at the 2012 Wyndham Hotel Group Global Conference; Century 21 Koeckeritz Realty received a “Pinnacle Award” at the Century 21 Awards Banquet; also earning awards, Brenda Nosbush (Quality Service Pinnacle Award and Masters Ruby), Diane Debban (Quality Service Award and Masters Ruby), and Joyce Krenz (Quality Service Pinnacle Award and Masters Emerald); The Minnesota Bed & Breakfast Association held its annual conference in New Ulm—association president is Shannon McKeeth of Bingham Hall Bed and Breakfast of New Ulm; and New Ulm Visitor Center greeter Rosie Portner won the “Community Service Award of the Sts. Joseph and Elizabeth Catholic United Financial Council at New Ulm Cathedral Parish.

From the Chamber: Realtor Ruth Schaefer joined Valley Properties; Dr. Brandon Rignell joined New Ulm Chiropractic; Michael Olson began with Edward Jones at 26 N. Broadway; new Hy-Vee store manager is Brian Amsberry; Brent Gostonczik became the new manager of Jake’s Pizza; Rachelle Kraus and Jim Heil joined

Century 21 Koeckeritz Realty; certified occupational therapy assistant Wendy Guggisberg of New Ulm Medical Center received Allina’s “Award of Excellence”; Anytime Fitness hired Lori Mathiowetz as health and well-being coordinator; and Citizens David Hirth Agency promoted Nick Hage to assistant manager.

Nicollet From the Chamber: new members include Bolton & Menk, Crossroads Carwash and Girl Scouts of Minnesota and Wisconsin Rivervalleys.

North Mankato Brunton Architects hired Greg Swanson as project manager/production manager and Justin Johnson, AIT, Assoc. AIA. Mankato Kasota Stone named Bob Altmann general manager and Dick Miller sales manager.

NORTH MANKATO

Coughlan Companies From Coughlan Companies: Capstone launched The Capstone Literacy Center to boost reading skills of grades 1-12 Greater Mankato readers.

St. James Mayo Clinic Health System—St. James hired speech language pathologist Ann Lewis, lab manager Michelle Green, and general surgeon Dr. LeRoy Hodges.

Pioneer Bank launched Kasasa 360 and Mobile Banking, which provides account holders around-the-clock access to personal finance management through an online and mobile-based platform.

SLEEPY EYE

SouthPoint Federal Credit Union President Dick Nesvold of SouthPoint Federal Credit Union earned the 2012 “Professional of the Year Award” from Minnesota Credit Union Network.

St. Peter From the Chamber: new members include The Pulse Fitness Studio, Good Times Manufacturing, Hesse Insurance Agency, Creations by Lorelei, and Opie’s Computers.

Springfield From the Chamber: new businesses include Bright Beginnings (daycare), Hot Stuff Pizza Buffet, Clements Lumber, Knights of Columbus Insurance, and Springfield Signs; relocations include A NU You Massage and Seams to Fit/ Tuxes 2.

Waseca From the Chamber: new members include Building & Equipment Outlet, Singlestad Farms, Airwave Solutions, Harguth Farms, Prairie Dental Arts, Akorn Creations, and Waseca Realty; business relocations include Generations Antiques and Gifts to 204 N. State, and Service Master to 515 S. State; Erica Schroeder is Thrifty White Drug chief pharmacist.

From the Chamber: new businesses include Woodridge Interiors; Edina Realty opened an office at 111 N. State #104; Whitestone Cleaners celebrated 30 years in business.

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NATIONAL OPINION

Americans often tout the contrast between the bloated, tax-funded welfare states of the Old World and our leaner, cheaper government. But the data reveals the U.S. may be closer to Europe than we think.

Contrary to common belief, the American tax system is more progressive than those of most industrialized democracies.

A 2008 report by the Organization for Economic Cooperation and Development (OECD), titled “Growing Unequal,” gave two different estimates of the progressivity

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of tax systems in 24 industrialized countries.

One ranking found the U.S. has the most progressive tax structure; in the other, Ireland beat America by a nose. France, which has a notoriously generous welfare state, ranked 10th out of 24 in both the OECD progressivity indexes.

Other countries have higher tax rates than the U.S. but manage to be less progressive overall. How can this be? The answer is the rate structure alone doesn’t necessarily tell you much about the progressivity of a country’s tax system. The top rates kick in at much lower income levels in Europe than the United States, making E.U. tax codes more regressive than ours.

In his new book The Benefit and the Burden (Simon & Schuster), economics columnist Bruce Bartlett presents a chart showing the top statutory personal income tax rate and an “all-in rate” that includes payroll taxes in selected countries as measured by the OECD. Bartlett calculated that the “average [European] worker making an annual income in the $40,000 to $50,000

range is in the top marginal tax bracket.”

A comparison of France and the U.S. is revealing: The top marginal income tax rate in the U.S. is 35 percent and kicks in at $379,000. In France the top rate is 41 percent and kicks in at $96,000.

The U.S. federal government also relies much more heavily on the income tax, Veronique de rather than the reRugy gressive consumption taxes—such as the value-added tax (VAT), retail sales taxes, and gasoline and tobacco taxes—favored by most OECD nations. European countries generally have lighter taxes on capital as well, another regressive feature.

Finally, the U.S. tax code allows large deductions and personal exemptions for low-income households, distributing social benefits in the form of policies such as the child tax credit and the earned income

tax credit. These adjustments increase progressivity.

Judging solely from government outlays, it appears to be true the United States has a smaller, more efficient government than the big welfare states of Europe. Relative to the size of GDP, U.S. government spending is about 16 percent smaller than the average for the European Union. But the difference is largely illusory. European governments tend to channel much less spending through their tax codes than the U.S. A November 2011 OECD paper titled “Is the European Welfare State Really More Expensive?” calculates the share of tax breaks used in OECD countries, separating out those used primarily for social purposes. The data show not only that the U.S. offers more tax breaks for social purposes as a share of GDP than any other country (almost 2 percent as opposed to the 0.5 percent OECD average) but also that roughly two-thirds are tax breaks toward current private benefits (such as encouraging people to have children). These breaks,

which total some $84 billion a year, are better thought of as welfare spending via the tax code.

Only by measuring tax breaks do you begin to see the true girth of the American welfare state. According to OECD data, net social welfare outlays in the U.S. consumed 27.5 percent of GDP in 2007—above the OECD average of 23.3 percent.

These social spending figures should not be confused with the amount a government spends to help poor people. Many tax breaks disproportionately benefit the middle class, not the least well off. The same is also true for spending; only 14 percent of the U.S. budget goes to lower-income Americans.

Which raises the issue of fairness. Basic principles of fairness tell us that people with roughly the same income should pay roughly the same amount of taxes. Unfortunately, the amount of taxes Americans pay today has little to do with how much money they make and more to do with how many kids they have, whether they rent or own a house, which state they live in, and

whether they make their money in the form of wages or capital gains. This system is not only unfair; it is also highly inefficient, as the disparities encourage taxpayers to shift their income and investment around to reduce their tax burden.

Unlike their European counterparts, American lawmakers understand low marginal rates are crucial to promoting economic growth. But when these lower rates are considered in conjunction with the fact the U.S. government looks deceptively smaller on paper than those of many European countries, it is easy to overestimate our differences with Europe.

In fact, in many respects, the U.S. government’s tax framework may be worse than Europe’s. It disproportionately relies on the top earners to raise revenue, it exempts a large class of taxpayers from paying any income taxes, and it conceals spending in the form of tax breaks.

Reason.com Contributing Editor Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University.

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