Mnvalley mar18

The Definitive Business Journal for the Greater Minnesota River Valley March 2018

Charley Serrill, manager of Nicollet Bike Shop, holds up a fat tire in the showroom. Photo by Jackson Forderer

Great outdoors

Businesses cater to active outdoor enthusiasts Also in this issue • IGNITION SPORTS IN NORTH MANKATO • ENTERPRISE MINNESOTA • MARY HALE’S DOLL CLOTHES

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I

n late December 2017, President Donald Trump signed into law the Tax Cuts and Jobs Act of 2017. In addition to modifying the income tax brackets and numerous other tax provisions, the law significantly modified how spousal maintenance (alimony) payments are taxed at the federal level.

For any Minnesota divorce finalized after December 31, 2018, spousal maintenance will no longer be taxable to the recipient or tax deductible for the payor. The “current law,” where spousal maintenance is taxable to the recipient and tax deductible for the payor remains in effect for divorce matters finalized prior to January 1, 2019. Parties who divorce before January 1, 2019 though can have the

new law apply to modifications occurring after January 1, 2019, if the modification document expressly provides that the new law applies.

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Andrew M. Tatge is a partner and chair of the Family Law and Divorce Practice Group at Gislason & Hunter LLP (www.gislason.com). He regularly represents farmers, business owners, professionals, and other high income and high net worth individuals (or their spouses) in divorce and related actions. He also writes and speaks regularly on divorce issues related to business owners and family farm and he regularly presents a seminar on Divorce for Farmers on behalf of the National Business Institute. Andrew can be reached at atatge@gislason. com or (507) 387-1115. This information is general in nature and should not be construed for tax or legal advice.

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MN Valley Business • MARCH 2018 • 1

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F E A T U R E S March 2018 • Volume 10, Issue 6

10

New technology has improved sports and recreation gear sold by area businesses, allowing people to enjoy the great outdoors through all the seasons.

14

Jason Tompkins moved his Ignition Fitness and Sports to a large space in Upper North Mankato where he focuses on developing individualized training programs.

16

Many area manufacturing leaders get together frequently in the peer council groups sponsored by Enterprise Minnesota, talking over mutual issues and solutions.

18

Mary Hale has always enjoyed sewing doll clothes and specializes in doll clothes for American Girl and Barbie, and with an eye for detail in her creations.

MN Valley Business • MARCH 2018 • 3

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MARCH 2018 • VOLUME 10, ISSUE 6

By Joe Spear

PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Tim Penny Dan Greenwood James Figy Amanda Dyslin PHOTOGRAPHERS Pat Christman Jackson Forderer COVER PHOTO Jackson Forderer PAGE DESIGNER Christina Sankey ADVERTISING Joan Streit Sales Jordan Greer-Friesz Josh Zimmerman Marianne Carlson Theresa Haefner ADVERTISING Barb Wass ASSISTANT ADVERTISING Sue Hammar DESIGNERS Christina Sankey CIRCULATION Justin Niles DIRECTOR For editorial inquiries, call Tim Krohn at 507-344-6383.

For advertising, call 344-6364, or e-mail advertising@mankatofreepress.com.

MN Valley Business is published by The Free Press Media monthly at 418 South 2nd Street Mankato MN 56001.

■ Local Business memos/ Company news.....................................5 ■ Business Commentary.........................8 ■ Business and Industry trends..........20 ■ Retail trends.....................................21 ■ Agriculture Outlook..........................22 ■ Agribusiness trends..........................23 ■ Construction, real estate trends.....24 ■ Gas trends........................................25 ■ Stocks...............................................25 ■ Minnesota Business updates............26 ■ Job trends.........................................26 ■ Schmidt Foundation.........................28 ■ Greater Mankato Growth..................30 ■ Greater Mankato Growth Member Activities ............................32

From the editor

Great Outdoors:

A Mankato opportunity

T

his month’s cover story suggests great oppor tunities for the Mankato region in the business of the outdoors.

We surely have plenty of outdoor assets. The Red Jacket and Sakatah trails may one day be joined by Minnesota River Trail going along the length of the river from Lac qui Parle County to Fort Snelling.

We’re developing a system of parks from Riverfront and Sibley parks in Mankato to Benson Park, a more “natural” flavor of a park in North Mankato. Riverfront Park is the entertainment park, while Sibley is also developing an entertainment flavor with its gazebos used for weddings and of course, the winter trademark event Kiwanis Holiday Lights.

The “opportunities” part of the traditional SWOT (strengths, weaknesses, oppor tunities, threats) analysis should clearly include our outdoor assets and how we can leverage them in a world where REI, Bass Pro Shop, Cabelas and others are also on the rise.

The Outdoor Industr y Association pegged consumer spending on outdoor recreation at $646 billion in 2012.

Mankato is putting in miles and miles of bike lanes, and while the co-existence between motorists and bicyclists remains tenuous in social media chat rooms, we’re making progress.

But we’ve got to think big. Can we ever imagine the Minnesota River as pristine? How about whitewater rapids as it flows from Mankato to St. Peter? It could happen if we think big.

The biggest factor for creating muddy water is stream bank erosion. While we can argue whether that is caused by farm tiling or heavier rains, if we have

4 • MARCH 2018 • MN Valley Business

one goal, we can achieve it.

We have a case study. In 1972, Maine’s Androscoggin River was a cesspool with everything from slaughter houses to papermaking factories allowed to dump their waste directly into the river. An 11-year old girl who lived on the river wrote then Maine Democrat Sen. Edmund Muskie to “do something about it.”

He did. He authored the Clean Water Act in 1972 that essentially required any business dumping into a river to get a permit to do so. Congress easily overrode the veto of then President Richard Nixon.

Today, 45 years later, the Androscoggin River has clear, pristine water flowing through the Maine countryside, with an abundance of aquatic life.

Could we do the same thing here: Require any farm tile or city piping that runs directly into the river to have a permit? Think about it.

Cleaning up a river shouldn’t be seen as a burden or cost, although clearly farmers would have to consider alternatives to draining their soil from too much moisture.

In Maine, the clean river brought economic development.

Lynne Lewis, an environmental economics professor at Bates College, told the Lewiston, Maine, Sun Journal that the billions of dollars spent to enforce the Clean Water Act has generated millions of dollars in economic development and growth.

Clean waters spurred economic activity along rivers, created recreational opportunities that brought money to cities and helped boost waterfront real estate values.

These activities ended up putting more tax dollars into government coffers.

And cooperation between

economic interests is possible.

About a year ago, a coalition of business, government and environmental groups set standards along 72 miles of the Mississippi River in the Twin Cities. The plan sets guidelines for everything from the height of buildings near the river to stream bank erosion control.

Mankato has a few natural landmarks in its trails and woods, but the biggest natural landmark, and the biggest opportunity remains Mankato’s proximity to the Minnesota River. We’ve waited too long to address this opportunity. While some progress has been made, the river remains a muddy, ugly detraction from an otherwise attractive outdoor area.

Streambank permitting may seem like a radical idea, but it may be more radical to do nothing.

It’s time to stop writing off the river because we’ll never be able to clean it up.

Joe Spear is executive editor of Minnesota Valley Business. Contact him at jspear@mankatofreepress.com or 344-6382.

Follow on Twitter @jfspear.

Local Business People/ Company News

■

Blethen adds two partners

Blethen, Gage and Krause has added two partners, Paul Shneider and Kimberly Literovich. Both focus on business law, estate planning, and real estate law.

The firm has provided legal services since 1896.

■■■

Bishop named top architect

Sarah Bishop, formerly of Mankato, was named by Mountain Living Magazine as one of the “Top Architects and Designers in the Rocky Mountain West.”

Bishop, daughter of Jim and Margrethe Eidet of Mankato, is an interior designer and owner of SRE Designs in Park City, Utah.

She is a graduate of Mankato West High School and Minnesota State University.

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EI Microcircuits certified

Read us online!

EI Microcircuits, a full service electronic manufacturing services provider, has achieved certification to AS9100D. AS9100 is the international quality management standard for the aerospace and defense industry.

The standard requires a comprehensive quality management system for safe and reliable products that are delivered on time, according to President Eric Else.

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www.lidcomm.com Karla Jo Olson Broker

Morken adds partner

Morken Eckberg Steiner of Mankato and Hutchinson has added Bronson Power as partner.

He is a member of the American Society of CPAs and Minnesota Society of Certified Public Accountants and has 14 years of public accounting and industry experience.

He received his Bachelor of Arts in Accounting and Business Management from Luther College and his MBA from Minnesota State University.

■■■

Capstone names publisher

Capstone, a publisher of children’s books and digital products and services, has named Patricia Stockland as Capstone Publisher. Stockland brings 20 years of experience in publishing and a background in product development and management, and will lead the product development group at Capstone.

Stockland rejoins Capstone after an 11-year hiatus, most recently serving as publisher with Cantata Learning, a publisher of educational books and music.

She holds an M.A. in literature from Minnesota State University.

■■■

Capstone names VP

Capstone named Darin Rasmussen vice president of Digital Product Development and Management. Rasmussen brings more than 15 years of experience in education technology, SaaS and publishing businesses to his new role, and will oversee Capstone’s digital product team.

Rasmussen has led digital product management, software development, marketing and sales teams throughout his career. Most recently he served as the founder and CEO of 808 Hats, LLC, a marketing and management consulting firm for technology and SaaS companies.

■■■

MN Valley Business • MARCH 2018 • 5

Consolidated employees honored

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Two Mankato Consolidated Communications employees were honored with the company’s top awards.

Kelli Bohm received the company’s highest honor, the President’s Award.

Shannon Bishop received the company’s Community Service Award.

Bishop, a product analyst in Mankato, volunteers much of her time with Mending Spirits Animal Rescue.

Consolidated Communications will make a $500 contribution to Mending Spirits in support of Bishop’s volunteer work.

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JOIN THE FAMILY! 6 • MARCH 2018 • MN Valley Business

PrairieCare expands programs

PrairieCare Medical Group is adding two psychiatrists and a program to its Mankato clinical site.

The site opened last summer with the goal of providing individualized psychiatric care.

They are also starting a new College Age Intensive Outpatient Program. According to a recent national sur vey of college students, 1 in 3 reported prolonged periods of depression and 1 in 4 reported having suicidal thoughts or feelings.

Dr. Maria Harmandayan and Dr. Eve Berryhill will lead the extension of services.

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MN Valley Business • MARCH 2018 • 7

■

Business Commentary

By Tim Penny

Creating an entrepreneurial ecosystem

A

t Southern Minnesota Initiative Foundation we know that growth comes from within. In all of our programming we aim to lift up the communities in our region by providing them with resources and a framework for success, but it is the people within our partner communities who ultimately create the future they want to see.

As we seek to increase our involvement in small towns (populations of 5,000 or below), I am excited to see energy building around our new Rural

Entrepreneurial Venture program. REV is a unique, longterm commitment that focuses on developing processes and systems for sustainable economic growth in rural communities.

In implementing REV we are using a proven-model for economic development from the Center for Rural Entrepreneurship. The goal of the program is to energize entrepreneurs within small towns, and organize leadership to assess current and future needs and build systems that will transform the economy.

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myminnesotabusiness.com or call 507-389-8875 MSU Strategic Partnership Center, 424 North Riverfront Drive, Suite 210, Mankato, MN Funded in part through a cooperative agreement with the U.S. Small Business Administration, Minnesota Department of Employment and Economic Development and regional support partners. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the program sponsors. Programs are open to the public on a nondiscriminatory basis. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact the SBDC at 507-389-8875.

8 • MARCH 2018 • MN Valley Business

The towns that go through this process will start to see a more resilient economy with more diverse entrepreneurs, and will develop better resources to support entrepreneurs even when the economy is bad.

After reviewing applications from small towns across our southern Minnesota region, we selected the following five REV communities that exhibited a readiness to “grow their own” and work towards creating a climate where entrepreneurs will thrive: Blue Earth (Faribault County), Lake City (Wabasha County), Lanesboro & Spring Valley (Fillmore County), Le Sueur (Le Sueur County), and Spring Grove (Houston County).

Our coaches (SMIF staff and partners – Region Nine and University of Minnesota Extension) are committed to working with each of these communities for a three year period.

We hit the ground running with REV at the beginning of the new year. Our coaches had their first meetings with core leadership teams in each town.

Depending on the community, the core leadership teams are comprised of representatives from Chambers of Commerce, City Council, Economic Development Authorities, local businesses, and other civicallyengaged leaders. Each team was provided with a Development Opportunity Profile which examines the economic trends from their town over the past decade. There have already been rich discussions from each group as a result of this important first step. In order to create a sustainable plan for the future it

is critical to review the opportunities that have led to successful environments for entrepreneurs in the past. In that same vein, the core leadership teams are also discussing the challenges that have historically created barriers for development.

We can only plan for tomorrow by learning from the past.

Over the next few months the core leadership teams will also start to identify who the key entrepreneurs are in each town and where “energy areas” exist.

These energy areas are pockets of the industrial or business sectors where there is the greatest potential to build upon existing entrepreneurship activity. The teams will also dedicate their time to building capacity and recruiting more people to be actively involved in the REV process.

Change doesn’t happen overnight which is why it is extremely important to set tangible goals in order to keep building momentum. REV communities will be guided by ‘push cycles’, each lasting several months. At the end of each push cycle, there will be a check in on the status of the goals and action planning for the next cycle. It may take several years before an entrepreneurial ecosystem is thriving in each community, but even so we anticipate seeing positive change and progress at every stage of these cycles.

Obviously each town has a different set of strengths and challenges which is why the outcomes of REV will look different in each community. But it is our view that no one knows how to build a future better than the people who live and work in these communities. We look forward to supporting this REV process over the next three years.

Keep an eye on our social media and website for updates on how these communities are progressing.

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Tim Penny is president and CEO of Southern Minnesota Initiative. timp@smifoundation.org or 507-455-3215.

MN Valley Business • MARCH 2018 • 9

Jerry Vetter, owner of Vetter Sales and Service, has been selling Polaris vehicles and products since 1964 in Kasota. He said that his sales of side-by-side vehicles has grown leaps and bounds, and added, “If five years ago someone would’ve said we would sell this many side-bysides, I wouldn’t believe them.”

Outdoors in all seasons Tech improves gear for year-round uses

By Tim Krohn | Photos by Jackson Forderer

W

hether there’s snow on the ground, a hot summer sun in the sky or a carpet of brown leaves on the ground in fall, southern Minnesota residents love to get outside and have some fun.

While many businesses sell a variety of seasonal outdoor recreation items, many are finding their products are more often being used year-round.

Bicycling, once a summer affair, is increasingly being enjoyed in all seasons, thanks to some new technology.

“Fat tire bikes have only been in existence eight or nine years, but they’re really ver y popular, especially here in Minnesota,” said Charley Serrill, manager of Nicollet Bike Shop in Old Town Mankato.

Cover Story

10 • MARCH 2018 • MN Valley Business

Jessi Green bags up minnows at Corner Bait in Madison Lake, owned by her and husband Nate.

The big tires provide the needed grip and stability to bike through winter slush, spring mud and through any condition handled by traditional trail or mountain bikes.

For 50 years, Vetter Sales & Service in Kasota has catered to snowmobilers, being the sixth oldest Polaris dealer worldwide.

“Snowmobiles has turned into the smallest part of business now,” said Jerry Vetter.

Instead their showroom is filled with four-wheeler ATVs and the bigger side-by-sides that can fit multiple passengers.

The vehicles are a favorite of farmers, hunters and outdoor enthusiasts for their ability to get around any time of the year.

At Corner Bait in Madison Lake, owners Nate and Jessi Greene are beginning to transition from winter ice fishing to early spring and summer fishing on area lakes.

And whether it’s new versions of ice augers in the winter or fish locators for summer, the big trend in fishing is technology.

“People are switching from old school to modern technology,” Nate said.

High tech fishin’

Beside the normal bait and fishing tackle sold at Corner Bait, the hot items heading out the door over the past winter have been ice augers.

“Everyone is switching over to electric augers,” Nate said. “They don’t have to mix gas or have propane or mess with the motors.”

The lighter-weight electric augers have been

improved to the point they’re a must-have for many anglers who take to the frozen lakes.

“They can go through 1,600 inches of ice per charge on the higher end models. And they have good power,” he said.

“We didn’t stock any gas or propane ones this year, just electric ones. It’s through the roof.”

The other big tech-loaded tool is the Humminbird Helix GPS fish locator used for summer or winter fishing.

“This still has the flashing lights, but it has lake maps built in to all of them with all the contours and holes showing. I found places on Madison Lake I didn’t know existed,” Greene said.

He said the units also create a detailed representation of everything under the water. “You can see the weeds, if there’s a tree down there it shows all the branches.”

And for summer anglers the unit not only shows the view straight down but has side imaging going out 100 feet on both sides of the boat.

“It’s a real game changer,” Greene said.

Since the invention of Dardevle and Red Eye Wiggler spoons, Rapala floating minnow and curly tail grub there haven’t been a lot of huge new products in the tackle section. But there are always new designs, shapes, colors and bells and whistles to keep anglers interested.

And technology is improving on even the tiniest of fishing lures.

“Venom this year came out with a new lighted jig that lasts up to 45 minutes, which is pretty crazy. Most glow-in-the-dark jigs only glow 5 or 6 minutes.”

MN Valley Business • MARCH 2018 • 11

Charley Serrill (left) helps Nathan Gassman check out fat tire bikes at Nicollet Bike Shop.

The jig is held in front of an included flashlight for a few seconds to charge it up.

Fat and versatile

Serrill said that when fat tire bikes first came out they were considered a specialized purchase.

“Originally they were very specific for riding on snow in the winter. But in the last couple of years people are using them all year-round. They used to be the third or fourth bike someone bought but now they’re finding they’re very versatile and it can be the only bike you own.”

The bike shop has been leading group rides with fat tire bikes on the river ice and along the river’s edge when the water is low in summer. “They handle sand and mud and rocks very well,” Serrill said.

“They enable you to ride in conditions or places or times of the year you wouldn’t normally be able to ride so they’re great for that. And any skill level can hop on them and all ride together.”

He said the asking price at a quality bike for a fat tire starts at $1,400, with much of the expense in the wheels, tires and suspension.

“But with more big companies into making them now there are more becoming available for less. They used to be $3,000 or $4,000.”

Mountain bikes are also still a big item at the shop.

“There was a surge of mountain biking in the ’90s and 2000s and then it was on a downtrend, but it’s trending back up now. The Kiwanis (Park) mountain bike trails helps. There’s a high school race league now, too, and Minnesota is one of more popular states for that.”

12 • MARCH 2018 • MN Valley Business

Aaron Buege works on a woman’s road bike at Nicollet Bike Shop.

Mankato has an active high school team and Mount Kato ski hill hosts the state high school event where 1,200 racers converge. “A few years ago there were only about 300 racers.

For those who’d rather stick to roads for their biking, there is plenty new as well.

“There’s a hugely popular thing now called All Road or Gravel Road style of bikes. It looks like a road bike but adds disc brakes and wider rims and tires so you can ride them on smooth roads and rough roads and gravel,” Serrill said.

“People like biking on the roads less traveled, it’s safer and more scenic. There are a lot of scenic roads around here that are gravel.”

Hitting the trails with power

While four-wheeler ATVs are still popular, it is the larger sideby-sides that draw the most excitement at Vetter Sales & Service “People on the farm, sportsmen, or people with smaller acreage — five or six acres — all love them,” Vetter said.

“But there are still people with a need for the ATVs. They like to use them to trail ride and weave around the trees and the side-bysides are wider and aren’t as maneuverable.”

For those without their own acreage, trail riding with either ATVs or side-by-sides means heading north of the Mille Lacs area or east to the Winona area and Mississippi River. Or heading out of state.

“There’re groups that go to the Black Hills or Wisconsin. There’s a number of people that go to Idaho, they have trails in the mountains.

He said the side-by-sides are good work horses for farmers and sportsmen, carrying people and gear around rugged terrain.

“Polaris came out with the Polaris General. It’s between a smaller sports unit and a larger utility side-by-side. It has a dump box, two- or four-wheel drive, or a turf mode for driving on the lawn,” Vetter said.

And the largest, six-passenger side-by-sides are popular in the land of 10,000 lakes.

“A lot of people who live at the lake, or maybe their house is a block from the water, they get these big six-passenger units and load all their gear and people and go down to the lake.”

While side-by-sides and ATVs rule, what started Vetter’s business decades ago are still important.

“There’s still a lot of people with snowmobiles. When we have snow it’s great, but with our weather situation the past five years it’s been very difficult to ride them without trailering them and going three or four hours north. Or a lot of people go out west.” MV

Jesse Allen puts a canopy on a Polaris side-by-side at Vetter Sales and Service in Kasota.

Vetter does repairs on all Polaris vehicles.

The showroom at Vetter Sales and Service includes Polaris snowmobiles, jackets, helmets, side-by-sides and other accessories.

A rack of helmets for sale at Vetter Sales and Service in Kasota. The business sells Polaris snowmobiles, ATVs, helmets, side by sides and other accessories.

MN Valley Business • MARCH 2018 • 13

Jason Tompkins, owner of Ignition Fitness and Sports, with a kettlebell in the main room of the athletic facility in North Mankato.

Ignition has been in their new building on Commerce Drive for a little over a year and they now have seasonal interns from Gustavus and Minnesota State.

More than a workout Ignition Fitness tailors training routine

By Dan Greenwood Photos by Jackson Forderer

R

ight after school gets out on Friday, over a dozen middle school kids opt for exercise over video games at Ignition Fitness and Sports in Upper North Mankato. Rock music blares from the speakers as they stretch and self-massage with foam rollers before beginning an hour long workout.

Owner Jason Tompkins walks through the 15,000 square-foot-gym explaining the process. Clients move through the gym in a systematic fashion, allowing large groups of people to pass through the space in an efficient manner. Tompkins says it makes sense to do certain things first in the

program so he built this space to accommodate that.

After they stretch, the kids move on to power exercises using hurdles, box jumps and a footwork ladder. Then the intensity of the workout peaks with running drills and using larger machinery.

The weight machines use air compression; allowing more sensitive adjustments related to skill level. Tompkins says that’s essential to what he and his trainers are trying to accomplish.

“The reason we have so much equipment is we want the best tool for the job,” Tompkins explains. “It’s really all about

Cover Spotlight

14 • MARCH 2018 • MN Valley Business

Students in the Athlete Performance class use mini bands to stretch before the more strenuous parts of the class at Ignition Fitness and Sports. adapting our exercises to the individuals that we’re working with.”

Tompkins bought the expansive building from the Thin Film Technology Corp. about a year ago with plans to expand it into a health campus. He says this part of the city is underserved, with a few fast food restaurants and a Walgreens making up the local businesses.

Individualized approach

He opened Ignition Fitness and Sports in 2014 after coaching soccer at St. Peter High School and Gustavus College, renting a building near the Children’s Museum in Mankato. But he was always looking for something bigger that would be less hidden from view. Cars on Highway 14 zoom past the new location, providing plenty of visibility. Plus, the building is easier to reach for out-of-towners; Tompkins says they make up a large portion of this client base.

“We are a destination facility.

We have folks that come from all over. People that drive an hour plus away.”

He says that’s because what he and his trainers are trying to achieve is unique in comparison to other gyms and fitness centers.

“There’s a big misconception about fitness and what it should be. The perception is that if you’re not crushing somebody every single workout it’s not a good work out.”

Tompkins says that ver y attitude is scaring people away from gyms and getting the help they need.

Trainer Matthew Merrick works with students in the Athlete Performance class at Ignition Fitness and Sports. The class works with ages 10 and up and owner Jason Tompkins said he hopes to be offering more classes for the age group in the future.

“A lot of people have shied away from other gyms because it’s more about what the trainer wants than what the client needs.”

Ignition Fitness and Sports takes a client-centered approach instead.

“We can take an adult who comes in and they may have a unique set of needs, maybe a history of back issues,” Tompkins said. “We’ll put them in a customized environment and build them a program for their unique needs. We don’t want you to just be good at the gym. We want it to transfer outside of these walls.”

Trainer Amanda Jensen agrees.

She’s certified through the American College of Sports Medicine and started out at Ignition Fitness and Sports as an intern, before Tompkins hired her to stay on. She says their approach to clients is holistic.

“We’re preparing them for different things in their life versus just getting strong,” Jensen said.

“It pertains to people’s lives every day, not just when you’re here.”

On average, Tompkins and his trainers work with 60 to 70 clients every week, but that number grows in the summer months, when athletes from Minnesota State University and even professionals come to train based on their specific goals.

A big reason Tompkins chose the current location for Ignition Fitness and Sports is because

Jason Tompkins (left), owner of Ignition Fitness and Sports, talks with Izayah Harrison about Harrison’s sore shoulder during a class at Ignition. Tompkins said they also work on strength and conditioning with different Minnesota State athletic teams. there is adjacent land along Highway 14 that could be used for expansion. He envisions a health campus not just for fitness and exercise, but something that would incorporate massage, physical fitness, healthy foods and a gathering place for people to socialize. He points to the Wysiwyg Juice Company and the St. Peter Food Co-Op as blue prints for social gathering places that he hopes to emulate.

“That’s part of our mission, to create better lifestyles. We want people to come to our gym, but we want our gym to enhance their lifestyles, so they can be better outside of the gym, to take better care of themselves.” MV

MN Valley Business • MARCH 2018 • 15

Dennis Skluzacek, plant manager of Elkay Wood Products, in one of the main aisles at the company’s building in New Ulm.

Enterprising help Peer councils assist manufacturers

S

By James Figy | Photos by Jackson Forderer

ix years ago, Dennis Skluzacek took a big step.

He transferred from his role as a process engineer at plumbing, cabinetry and food service products manufacturer Elkay to manage the company’s New Ulm plant. This change presented many new challenges, but he was able to meet them with the help of the other manufacturing operations managers in his Enterprise Minnesota peer council.

“There’s not a standard operating procedure for what I do. To have a group of people that you can bounce ideas off of and really use their past experiences to help guide you was invaluable,” Skluzacek said.

Enterprise Minnesota provides consultation and networking opportunities for manufacturers across

the state. The monthly peer councils bring together manufacturing leaders from different industries who serve in similar capacities at their companies.

Mankato is home of the southern Minnesota operations manager council. The group includes members from near, including V-Tek Incorporated in Mankato, and far, such as Winnebago Manufacturing Company in Blue Earth and Akkerman Incorporated in Brownsdale. The meetings allow members to troubleshoot current problems and discover ideas to implement, said Tony Zwart, director of aluminum operations for Le Sueur Incorporated, which specializes in aluminum casting and plastic injection molding.

Profile

16 • MARCH 2018 • MN Valley Business

“Each meeting of fers opportunities to grow both personally and professionally,” he said. “All of our businesses have been positively impacted by the insights shared in every meeting.”

‘Continuous improvement’

The first peer council started 15 years ago in Owatonna to assist manufacturing CEOs, and it continues to this day. Some Mankato-area executives commute to those or other gatherings, according to Enterprise Minnesota CEO Bob Kill.

“There’s two or three people who go from the Mankato area to Owatonna or the south Metro,” he said. “...It’s basically a day out of the month to meet with your peers and go to an advisory board meeting, so that travel is really considered pretty manageable.”

Joining a peer council costs $4,800 per year, but members find the price reasonable for what they receive.

At the meetings, each member gives an update on new challenges or advances at his or her company, Skluzacek said. Then they address any “fast burn” problems that need to be remedied quickly.

A guest speaker, who’s either an Enterprise Minnesota consultant or a professional in a different field, talks to the group, Zwart said. Then there’s time for discussion before lunch.

“The peer group size is ideal for deep discussions facing each of us within our own responsibilities,” he said. “It’s a good mix of younger and more seasoned leaders offering great insights on virtually any challenge being faced within a fast-paced, everchanging manufacturing world.”

Although Enterprise Minnesota is now an independent 501(c)(3), the Minnesota legislature originally created it as a public corporation in 1987. It started as the Greater Minnesota Corporation, but changed names to Minnesota Technology four years later. The “publicly funded economic development organization” transformed into a private, “fee-for-service consulting organization” in 2004, according to its website. Kill, who has led

Dale Ringle picks up a cabinet door at the Elkay Wood Products plant in New Ulm.

Automated Permanent mold lines at Le Sueur Inc. in Le Sueur. the organization for 11 years, oversaw its most recent rebranding, when it took the name Enterprise Minnesota in 2008.

Over the years, Enterprise Minnesota has grown in many ways, including the number of issues it can help with, Kill said.

“What I’ve seen is a transition of our organization from being primarily focused on continuous improvement or lean manufacturing to now helping companies in their quality management systems, ISO certification, strategic plans and marketing,” he said. “…Now we’re doing an awful lot in what I call talent and employee development, especially finding the workforce of the future.”

While it’s helpful to talk about these issues, Skluzacek always enjoys when meetings are held at another member’s plant. While touring the plants, everyone can see how things are done in different industries and watch for practices that could easily transfer to their own. None of the peer councils contain competing businesses, so members can trust each other with information and advice.

“It’s an environment where you can openly share what’s going on.

You can get feedback, and people are not going to judge you,” Skluzacek said. “They’re not going to question what you’re doing. They’re there to really help you and make your life better.”

MV

MN Valley Business • MARCH 2018 • 17

Mary Hale looks over a night gown that she made for a doll in about 15 minutes at her home in Mankato.

Hale said that she will walk through a fabric store and imagine what kind of clothes she could make from the fabric she sees.

Tiny treasures

Seamstress specializes American Girl doll clothes

By Amanda Dyslin Photos by Jackson Forderer

I

t’s like a dream closet for fancy gals – hanger upon hanger of white lace, pink tulle, satin in every color of the rainbow, that little black number that can be dressed up or down for the occasion.

Mar y Hale is the designer and seamstress behind these dozens of gowns and cocktail dresses taking up space in her Mankato home, part of her La Petite Boutique business inventory that she stockpiles this time of year for big sales later on.

What puts the “La Petite” in her boutique?

The size of the garments, of course, which are just a few inches tall.

Hale specializes in doll clothes for American Girl and Barbie, and with an eye for detail in her creations, coupled with modest prices (about $2 to $15), she does quite a good business.

“Our first time at (the Holiday Expo at Madison East), I made $1,800,” Hale said in disbelief.

The fifth of 13 children, Hale learned to sew from her mother at 11 years old.

“My mother was a beautiful seamstress,” Hale said. “Back in the ’50s, we really played with our dolls. I remember even having new wigs put on them. And it seemed like every year she made a new wardrobe (for the dolls).”

The first project Hale’s mom had her sew was a pair of green corduroy slacks. She remembers sewing right down the front and mistakenly creating a “funky looking skirt” before learning one of the most important lessons of sewing: taking stitches out and starting again.

“I was so proud of those pants,” she said.

Even in junior and senior high school, Hale doesn’t remember being concerned with what was fashionable. It was the love of creating, of making something herself, that kept her interested in sewing. She took home economics all through school at Waldorf-Pemberton, picking up many new

Feature

18 • MARCH 2018 • MN Valley Business

skills along the way for those six years.

Hale made everything from shift dresses to aprons to summer clothes, including shorts and tank tops.

“I liked the sewing better than the cooking, although now I love to bake,” she said.

After graduating, Hale began her career doing secretarial work at various places. But her passion for sewing continued on the side, and her creation of doll clothes began in the early 1970s.

She was working at EF Johnson Co. in Waseca, and a coworker asked if Hale could make clothes for her daughter’s doll. She made up a bunch, and word seemed to spread.

“I made all these baby doll clothes, and they sold like hot cakes,” Hale said.

The same thing happened after making Barbie clothes for her husband’s nieces, and Hale was offered some display space in a Waseca beauty salon to sell her wares.

Then, of course, the Cabbage Patch doll craze hit in the 1980s, and she rode that wave, too.

Cyndy Butler, Hale’s sister, was one of her first customers. She remembers how unique making and selling doll clothes was when Hale first started.

“At the time, I knew of no one (doing it),” she said. “She made such elaborate evening gowns and wedding gowns for the Barbies.”

Butler, who also sews and sells wares with Hale at craft fairs and

expos, bought a bunch of pieces one year for her daughter, Kalli Foulkrod.

“For Christmas, I bought a pile of stuff to put under the Christmas tree,” she said.

American Girl became Hale’s bread and butter about 15 years ago. The $100-plus dolls are 18 inches and portray girls of varying ethnicities ages 8 to 11.

They are sold with books that tell their elaborate back stories about different periods of American history, as well as contemporary life. Girls can now also buy dolls that look like themselves, with the same eye color, skin color, hair length, etc.

After retiring three years ago, Hale has ramped up her La Petite Boutique efforts. In addition to doll clothes that range from footie pajamas to wedding gowns, she makes human garments from scratch, and she does alterations and mending. She does prom dresses and wedding gowns, memory bears (teddy bears made from a loved one’s clothing), quilts and numerous other projects.

“The fancier, the better,” Hale said of her favorite types of projects. “Suits I’m not so good at. Trousers I can do.”

Hale believes in setting reasonable prices for her work.

For alterations, mending and “sewing from scratch” projects, Hale charges $15 per hour, and she works with a timer to ensure she’s fairly charging her customers. For doll clothes, many Barbie outfits are just $2, and

fancy gowns for American Girl can be as little as $11. Some of the gowns are even made from the satin and lace of real wedding gowns.

“They are very high quality and very reasonably priced,” Butler said. “It’s so cute to watch (children). They’ll come with their moms, and their moms will say, ‘Do you like this?’ And they’ll say, ‘No, I like this.’”

On average, Hale said she spends about four hours per day sewing, which she still does on her mother’s Necchi sewing machine from the early 1960s.

Hale has some arthritis in her hands and shoulder, she said, and there are busy days when she sews for eight hours and can definitely feel it. But she loves the work.

She loves when women bring her their mother’s wedding gown and ask for baptismal gowns for their children to be made from it.

She loves when vintage doll clothes are brought to her with the hope that she can mend them and bring them back to life.

She also loves to chat with little girls about what they want for their dolls. One such conversation introduced her to the Disney juggernaut “Frozen,” which led to her popular “Frozen”-inspired dresses for American Girl.

Hale has passed on her love of sewing, too. She taught her daughter, Catie Hale, to sew.

“She bought her first sewing machine when she was 16, from money she earned doing a paper route,” she said.

Catie’s 9-year-old granddaughter, Jazmyne, uses her mom’s sewing machine, too.

And Catie’s 12-year-old son even surprised his grandma Mary with a special gift a couple of Christmases ago. He gave her a square piece of blue fabric, decorated with candy canes, upon which he had sewn, “I love you,” with a heart in place of the “O” in “love.”

Hale was in tears, she said.

“He used Mom’s machine to make it,” she said with a smile.

MV

For more information about La Petite Boutique,email Hale at hail52mary@gmail.com, or call 507-625-3612.

MN Valley Business • MARCH 2018 • 19

■

Business and Industry Trends

Energy Wind to surpass hydropower

As one of the first technologies used to generate electricity, hydroelectric power has historically provided the largest share of renewable electricity generation in the United States. However, this year the Energy Information Administration expects wind power to surpass hydroelectricity.

Because few new hydro plants are expected to come online in the next two years, hydroelectric generation in 2018 and 2019 will largely depend on precipitation and water runoff. Although changes in weather patterns also affect wind generation, the forecast for wind power output is more dependent on the capacity and timing of new wind turbines coming online.

Both hydro and wind generation follow seasonal patterns. Hydro generation is typically highest in the spring when precipitation and melting snowpack increase water runoff. Wind generation is typically highest in the spring and fall.

Hydroelectric generation forecasts over the next two years are mostly based on projections of water runoff. After a relatively wet year in 2017—when hydro provided 7.4 percent of

total utility-scale generation—hydro generation is expected to be slightly lower at 6.5 percent of total utility-scale generation in 2018 and 6.6 percent in 2019.

EIA expects significant levels of new wind capacity to come online in 2018 and 2019. Surveys show wind capacity increasing by 8.3 gigawatts (GW) in 2018 and 8.0 GW in 2019.

EIA expects wind to provide 6.4 percent and 6.9 percent of total utility-scale electricity generation in the United States in 2018 and 2019, respectively, up from 6.3 percent in 2017.

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20 • MARCH 2018 • MN Valley Business

Natural gas costs steady into ’19

The Energy Information Administration expects the Henry Hub natural gas spot price to average $2.88 per million British thermal units (MMBtu) in 2018 and $2.92/MMBtu in 2019, slightly lower than the 2017 average of $2.99/MMBtu. Lower prices in 2018 and 2019 reflect expectations of increased natural gas production and relatively flat consumption.

EIA expects natural gas consumption will increase slightly in both 2018 and 2019. On an annual basis, EIA expects combined residential and commercial natural gas consumption to increase by 1.3 billion cubic feet per day in 2018 because of colder weather closer to the recent historical average after a very warm early 2017, then remain nearly the same in 2019.

Dry natural gas production should increase in both 2018 and 2019, exceeding domestic consumption of natural gas for the first time since 1966.

CO2 emissions to increase

After declining by 1 percent in 2017, energy-related carbon dioxide (CO2) emissions are forecast to increase by 1.7 percent in 2018 and by 0.2 percent in 2019. Energy-related CO2 emissions are sensitive to changes in weather, economic growth, and energy prices.

Renewables to decrease

After increasing by 13 percent in 2017, total generation from renewables in all sectors (including utility- and small-scale generators) is expected to decrease by 3 percent in 2018 and then to increase by 7 percent in 2019.

Forecast electricity generation from hydropower decreases by 12 percent in 2018 and increases by 2 percent in 2019. This change in hydropower generation drives the decrease in overall renewable generation growth in 2018.

Generation from renewable energy other than hydropower in the electric power sector is forecast to grow by 3 percent in 2018 and by 9 percent in 2019.

EIA estimates that total U.S. small-scale solar capacity was 16 gigawatts (GW) at the end of 2017. EIA expects that capacity to be 19 GW at the end of 2018 and 23 GW at the end of 2019.

Ethanol production to be steady

Biodiesel production averaged an estimated 105,000 barrels per day (b/d) in 2017, and it is forecast to increase to an average of 117,000 b/d in 2018 and to 128,000 b/d in 2019. In large part because of recent duties imposed on foreign biodiesel imports from Argentina and Indonesia, net imports of biomassbased diesel are expected to fall from an estimated 41,000 b/d in 2017 to 32,000 b/d in 2018 and then rise to 35,000 b/d in 2019.

Ethanol production averaged an estimated 1 million barrels per day in 2017 and is forecast to average roughly the same in both 2018 and 2019.

Ethanol consumption averaged about 940,000 b/d in 2017 and is forecast to be 960,000 b/d in 2018 and 970,000 b/d in 2019.

Retail/Consumer Spending Vehicle Sales Mankato — Number of vehicles sold - 2016 - 2017 1500

917 701

1200 900 600 300 0

J

F

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A

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A

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O

N

D

Source: Sales tax figures, City of Mankato Includes restaurants, bars, telecommunications and general merchandise store sales.

Excludes most clothing, grocery store sales. $428

Sales tax collections Mankato (In thousands)

- 2016 - 2017

600

$419

500 400 300 200 100 0

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A

M

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A

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O

N

D

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato

- 2016 - 2017 $32,300 $27,978

70000 52500 35000 17500 0

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A

M

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J

A

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O

N

D

Source: City of Mankato

Mankato food and beverage tax - 2016 - 2017 175000 140000

$60,900 $58,935

105000 70000 35000 0

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Source: City of Mankato

A

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D

C. Sankey

MN Valley Business • MARCH 2018 • 21

■

Agricultural Outlook

By Kent Thiesse

Land values remain surprisingly strong M

any agricultural experts Iowa average farm land values and economists have (2006-2017) been warning for the past few years that we could be YEAR AVE. VALUE % CHANGE headed for a significant correction PER ACRE in farm land values in the Midwest. 2006 $3,204 +10.0% Based on recent data, there 2007 $3,908 +22.0% appears to be evidence that a 2008 $4,468 +14.3% reduction in average land values 2009 $4,371 (2.2%) did occur in some regions of the 2010 $5,064 +15.9% U.S., including the Upper $6,708 +32.5% Midwest, from 2014-2016. 2011 $8,296 +23.7% However, there are also 2012 $8,716 +5.1% indications that land values may 2013 have stabilized somewhat in the 2014 $7,943 (8.9%) past 12-15 months. The question 2015 $7,633 (3.9%) now is whether or not we have 2016 $7,183 (5.9%) seen the “bottom” in farm land 2017 $7,326 +2.0% values, or if there is potential for Source: Iowa State University 2017 Farmland Value Survey. further declines in land values.

Iowa farm land values rose at an Iowa State University does a incredible pace from 2000 to 2013, comprehensive land value survey with only one minor decline in each December, which is 2009, before more significant regarded as one of the best declines of 8.9 percent in 2014, 3.9 resources on trends in Midwest percent in 2015, and 5.9 percent farm land sales. Following is a in 2016. This was the first time table showing the average value that the Iowa land value survey of Iowa farm land for the past 12 has shown three consecutive years (2006-2017), and the years of decline since the midaverage percentage change in 1980’s. The 2017 Iowa Farmland farm land values from one year to Value Survey showed a slight the next. Iowa farm land values increase of 2 percent, or $143 per

acre, compared to a year earlier, breaking the string of three consecutive years of declining land values.

There was an increase in average 2017 land values in land values in eight of the nine crop reporting districts in Iowa, with the greatest increase at 3.8 percent in the East Central District. The Northwest District showed an increase of 1.6 percent in land values from December, 2016 to December, 2017, and reported the highest average land values in Iowa at $9,388 per acre.

Economists at Iowa State University felt that the 2017 increase in land values was the result of the record crop yields in 2016, as well as being aided by the limited supply of available land for sale in many areas of the State.

Trends in farm land values in Southern Minnesota are probably fairly close to the trends shown in the Iowa land value sur vey, reflecting the lower crop prices and tighter profit margins in recent years. Similar to Iowa, land values in many portions of Southern Minnesota have seemed

Area farm land sales value (2013 – 2016) County Blue Earth Brown Faribault Le Sueur Martin Nicollet Waseca Watonwan

2013

# of Sales

Ave. $$/Acre

2014

# of Sales

2015

Ave. # of $$/Acre Sales

2016

Ave. # of $$/Acre Sales

Ave. $$/Acre

$$$

Change (2015-2016)

43 $8,426 19 $7,546 22 $7,675 26 $7,164 ($511/A.) 33 $8,36 30 $8,064 12 $7,748 6 $6,696 ($1,052/A.) 21 $8,269 29 $7,309 43 $7,104 24 $7,246 +$142/A. 18 $ 6,113 22 $6,582 1 $5,144 10 $5,353 +$209/A. 26 $ 8,408 20 $8,400 21 $7,344 15 $7,541 +$197/A. 23 $ 9,682 10 $8,219 17 $8,049 10 $8,243 +$194/A. 19 $ 7,811 12 $6,95 16 $5,793 8 $6,690 +$897/A. 14 $ 7,976 19 $6,966 8 $7,202 15 $7,483 +$281/A.

Source: University of Minnesota “Land Economics” web site

22 • MARCH 2018 • MN Valley Business

%

Decline (2013-2016)

(15.0%) (20.0%) (12.4%) (12.4%) (10.3%) (14.9%) (14.4%) (6.2%)

to stabilize in the past year due to strong crop yields in 2016 and 2017, along with a limited amount of land sales in some locations. Some isolated land sales across Southern Minnesota have still been reported at fairly high values per acre; however, the overall land value trend in the past 3-4 years has been a decline of 10-15 percent from the peak land values in 2013 and early 2014, before stabilizing in the past 12-15 months.

One of the best sources of farm real estate values in Minnesota is the U of M’s “Land Economics” web site at: www.landeconomics.umn.edu. This web site is updated annually after September 30, and accesses a data base of various land values, based on farm land valuations reported to the State Revenue Office by County Assessors Offices throughout the State each year, which are adjusted annually based on actual land sales in a given County. This web site allows for selected sorts by County, State Economic Regions, Watersheds, etc., as well as by types of land.

Following are the average values per tillable acre for actual farm land sales for the four most recent years (2013-2016) in some selected South Central Minnesota counties, including the number of farm land sales in each of those years, as well as the change in average 8 land sales values from 2015 to 2016, and the percentage change in average land values from 2013 to 2016: See6 blue shaded graphic on previous page.

4 Some key obser vations on the south central Minnesota land 2 sales data:

• Average farm land values declined in all counties 0 2013 to 2016; however, there was a wide from J F M A M J J A S O N D variation in the level of the decline, ranging from just over 6 percent in Watonwan County to 20 percent in Brown County. All other counties were between 10-15 percent reduction in average land 8 values.

• Average land value declines from 2013 to 2016 were 100 6 at lower levels in Watonwan and Martin Counties, 85 benefitted from more consistent crop yields which than4 most other counties in the region.

70 • 2016 average land values were slightly higher than 2015 values most of the listed counties, representing 2 55 the exceptional crop yields in 2016. Blue Earth and 400 County had lower corn yields in 2016.

Brown J F M A M J J A S O N D • The volume of land sales in 2015 and 2016 has been 25 quite limited J F inM some A counties M J Jin the A region, S O which N D can have an impact on the listed average land values.

• This data seems to support a decline of 10-15 percent in the average farm land values across the 100 region, from the peak real estate values in 2013, but also85 indicates that land values have somewhat stabilized.

70

Many areas of the Upper Midwest experienced record55corn and soybean yields in 2016, with several locations 40 reporting another year of very good crop yields in 2017. This has seemed to stabilize land values25somewhat J F Mduring A MtheJ past J 12-15 A S months O N inD many locations of the region. There continues to be fairly strong demand by both farm operators and investors to purchase land, which has also helped stabilize land values. Most likely, the future trends in

Agriculture/ Agribusiness Corn prices — southern Minnesota

(dollars per bushel)

— 2016 — 2017

8

20

6

16

$3.03

12

4

8

2 0

$3.01

J

F

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A

M

J

J

A

S

O

N

4

D

0

J

Source: USDA

Soybean prices — southern Minnesota

(dollars per bushel)

— 2016 — 2017 8 20 100 16 6 85 $9.45 12 470 8 255 $8.79 4 40 0 0 J F M A M J J A S O N D 25 J F M A M J J A S O N D J F M A M J J A S O N D Source: USDA

Iowa-Minnesota hog prices

185 pound carcass, negotiated price, weighted average

— 2016 — 2017

20 100 25 16 85 22 12 70 19 8 55 16 4 40 13 0 J F 25 10 J F J F Source: USDA

25

$69.78

22 19 16

M M M

A M J A M J A M J

Milk prices

J J J

$53.85 A S O N D A S O N D A S O N D

Minimum prices, class 1 milk Dollars per hundredweight

— 2016 — 2017 25 22

$18.68

19 16 13 10

$15.44 J

F

20 25 16 22 12 19 8 16 4 13 0 J 10

M

A

M

J

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A

S

O

N

D

Source: USDA. Based on federal milk orders.

Corn and soybean prices are for rail delivery points in Southern Minnesota.

Milk prices are for Upper Midwest points.

C. Sankey

MN Valley Business • MARCH 2018 • 23

13 10

J

J

Construction/Real Estate Residential building permits Mankato

Commercial building permits Mankato

- 2016 - 2017 (in thousands)

- 2016 - 2017 (in thousands)

$996 $1,109

18000

12000 10000

13500

4000

4500

2000

0

J

F

M

A

M

J

J

A

S

O

N

0

D

Source: City of Mankato

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A

M

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D

Source: City of Mankato Information based on Multiple Listing Service and may not reflect all sales

Existing home sales: Mankato region - 2016 - 2017 (in thousands)

Median home sale price: Mankato region - 2016 - 2017 (in thousands)

250

300

132 143

240

$163,500

200

$143,000

150

180

100

120

50

60

0 J

F

M

A

M

J

J

A

S

O

N

D

Source: Realtors Association of Southern Minnesota

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F

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A

M

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A

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Source: Realtor Association of Southern Minnesota

Interest Rates: 30-year fixed-rate mortgage

Includes single family homes attached and detached, and town homes and condos

Housing starts: Mankato/North Mankato

— 2016 — 2017

- 2017 - 2018

5.5

50

5.0

Dealer Area

40

4.5

Got water?

4.1%

30

4.0

4

20

3.5 3.0

$2,227

6000

9000

0

$3,992

8000

4.1% J

F

M

A

M

J

J

A

S

O

Source: Freddie Mac

N

10 D

0

Got water?

Read us online!

J

F

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A

M

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A

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Dealer Area

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507.625.3089

Artfully1107 crafted with a wide Cross St. | North Mankato range of stone and wood visuals.

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24 • MARCH 2018 • MN Valley Business

D

Artfully crafted with a wide range of stone and wood visuals.

Wonderfully waterproof thanks to Shaw’s LifeGuard Resilient core.

Artfully crafted with a wide range of stone and wood visuals.

Wonderfully waterproof thanks to Shaw’s LifeGuard Resilient core.

Source: Cities of Mankato/North Mankato

Gas Prices

5

Gas prices-Mankato

— 2017 — 2018

54 43 $2.48

32 21 10 0

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F

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F

$2.25

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Gas prices-Minnesota

— 2017 — 2018

5

Kent Thiesse is farm management analyst and vice president, MinnStar Bank, Lake Crystal.

507- 381-7960; kent.thiesse@ minnstarbank.com

54 $2.58

43 32

$2.26

21 10

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D

C. Sankey

Source: GasBuddy.com

0

crop prices, along with the level of 2018 crop yields and profitability in livestock production, will determine if land values continue to stabilize, or if we see further declines in land values later this year. The Federal Reserve Bank has increased the prime interest rate by one percent in the past 15 months, which has led to some modest increases in long-term interest rate for real estate loans.

Additional increases in the prime interest rate in the next year or two would likely have a negative impact on land values.

J

F

Stocks of local interest

Jan. 9

Feb. 7

Percent change

Archer Daniels

$40.05

$42.40

+5.9%

Ameriprise

$173.92

$160.10

-8.0%

Best Buy

$69.34

$76.39

+10.2%

Crown Cork & Seal

$56.31

$54.87

-2.6%

Consolidated Comm.

$12.38

$11.72

-5.3%

Fastenal

$53.58

$53.09

-1.0%

General Growth

$23.18

$22.09

-4.7%

General Mills

$58.89

$54.75

-7.0%

Itron

$70.25

$68.45

-2.6%

Johnson Outdoors

$61.59

$67.03

+8.8%

3M

$241.00

$233.16

-3.2%

Target

$69.41

$73.51

+6.0%

U.S. Bancorp

$55.99

$54.79

-2.1%

Winland

$1.50

$1.50

0.0%

Xcel

$46.50

$46.13

-7.2%

Need help reaching the top?

507.344.6364

advertising@mankatofreepress.com

C. Sankey

MN Valley Business • MARCH 2018 • 25

Minnesota Business Updates

■

and $3.8 million in maintenance projects for the coming year.

The work will include construction of a new restroom and new pet exhibition area, improvements to the livestock complex and upgrades to infrastructure.

The projects will be funded through State Fair operating revenue and grants from the Minnesota State Fair Foundation.

The board also decided to keep admission prices the same last year.

■ Cargill big on big data Cargill is hiring data scientists to find ways to profit from the scraps of information picked up as food commodities flow through its factories, silos and ports.

The move is an attempt to update its envied information edge for the digital era.

The wider availability of data — from weather patterns to ship movements — has diminished the value of inside knowledge of commodity markets. Now the company is attempting to better exploit the seven petabytes of information in its proprietary data network, according to the Financial Times.

Using information from shipping patterns to the sound of shrimp eating, the company believes data scientists can help it turn a bigger profit.

Among the initiatives is machine learning, a branch of artificial intelligence that sifts through vast data sets to find patterns that can guide decisions.

■ Target launches same-day delivery Target is launching its same-day delivery service in dozens of stores.

Reps with the retailer say the same-day delivery services will cover products ranging from groceries to electronics.

The company previously announced that about half of its stores will have the service beginning this year.

The move comes after the company said it would acquire same-day delivery company Shipt for $550 million.

In its previous announcement, the company said that the service will be an option at the majority of Target stores by the 2018 holiday season.

■ State Fair getting upgrades The Minnesota State Fairgrounds is getting an $11.1 million facelift.

The State Fair’s board approved $7.2 million in capital improvements

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major November Industry 2016 2017 Construction Manufacturing Retail Services Total*

705 171 50 194 1,120

Local non-farm jobs Percent change ‘16-’17

655 228 54 204 1,141

2800

-7.1% +33.3% +8.0% +5.2% +1.9%

122000

Construction 122000 122000 Manufacturing Retail 111000 Services 111000 Total*

12,691 3,395 1,215 3,250 20,551

12,356 2,534 1,239 3,181 19,310

2100 1400

111000

700 100000

Minnesota initial unemployment claims November 2016 2017

3500

133000

Services consist of administration, educational, health care and social assistance, food and other miscellaneous services. *Categories don’t equal total because some categories not listed.

Major Industry 133000 133000

- 2016 - 2017 131,308 126,882

Nine-county Mankato region

J

F

M

A

M

J

Minnesota Local non-farm jobs (in thousands)

Percent change ‘16-’17

8000 3500 3500 6000 2800 2800 4000 2100 2100

-2.6% -25.4% +2.0% -2.1% -6.0%

Services consist of administration, educational, health care and social 100000 assistance, food andJ otherF miscellaneous services.

M A M J J A S O 100000 J don’t F equal M total A because M Jsome Jcategories A not S listed.

O N *Categories

26 • MARCH 2018 • MN Valley Business

J

A

S

O

N

D

D

N

D

0

J

- 2016 - 2017 2,986 2,874

2000 1400 1400

700

0

700 0 J F M A M J J A S O N D 0 J F M A M J J A S O N D J F M A M J J A S O N D

200000 150000 100000 50000 0

J

O

O

“A return to double-digit sales and pretax earnings growth in 2017 was a great way to celebrate our 50th year in business,” said Dan Florness, president and CEO. Total employment at Fastenal increased to 17,519, a 7.7 percent year-over-year increase.

■ Feds reduce mining review The U.S. Forest Service says it’s downgrading an environmental review of a proposal to withdraw certain national forest land in Minnesota from minerals exploration for up to 20 years.

The land includes the site where Twin Metals wants to mine for copper and nickel, near the Boundary Waters Canoe Area Wilderness.

Supporters of the project have touted the jobs it would bring, but opponents fear the mining could lead to sulfuric acid polluting the area’s pristine waters.

The Forest Service says it will do an environmental assessment rather than a more rigorous study, because no significant environmental impacts have been identified during a long public scoping period.

■ Bank of America ends eBanking Bank of America is eliminating eBanking accounts this month, transferring their owners into accounts that charge a maintenance fee if they don’t maintain a minimum balance or get direct deposit 133000 The eBanking account had offered customers a checking account without any monthly fees, provided they conduct their business online or at ATMs 122000 Now, the bank has swapped those remaining customers into Core Checking, an account that requires customers to maintain a minimum daily balance of 111000 $1,500. Customers are charged $12 a month if they cannot meet the requirements.

100000 Critics Jworry F the M move A M will J disproportionately J A S O N hurt D the bank’s low-income customers, who would be the likeliest to struggle to meet the Core Checking requirements.

■ Fastenal sees boost from manufacturing Increasing i n d u s t r i a l production and manufacturing growth, especially from heavy-equipment makers, led to a nearly133000 15 percent increase in sales for Fastenal in its 133000 quarter. fourth Sales for the Winona-based distributor of industrial 122000 parts 122000and equipment rose to $1.1 billion for the quarter and rose 10.8 percent for the year to $4.4 billion.

Earnings were $152.4 million, or 53 cents per share, 111000 up 33 percent from the same period the year before.

111000

3500

3500 ■ Medical device tax suspended 8000

100000 J F

J M

M J

J A

J S

A O

Local number of unemployed

4000 2100 1400 2000

N

D

O D

8000 6000

3,242 3,925

4000

0 F F

J A A

J S S

A S O N O N D O N D

200000 150000

80,545 96,182

100000 50000 D

0

J

F

0 0 J F JM

J

F M A M AJ FA M

M

A

M

J

J

A

S

O

N

D

0

M MJ

J JA

J JS

A AO

S N S

O D O

N N

D D

(includes all of Blue Earth and Nicollet Counties) 200000 150000

November

100000

D

0

J

0 F

J M

F M A A M J

M J

J A

2016

2017

2.5% 58,835 1,519

1.9% 60,489 1,160

J S

A O

S N

O D

N

D

Unemployment rates Counties, state, nation County/area

- 2016 - 2017

700 J

50000

Unemployment rate Number of non-farm jobs 50000 50000 Number of unemployed

100000

J F M A M M A M J J M A M J J

1400

Mankato/North Mankato Metropolitan statistical area

150000

2000

700 0 J 0 J

D 0

200000

Minnesota number of unemployed

N

N

- 2016 - 2017

Nine-county Mankato region 8000 3500 6000 2800

S N

2100

200000

700 2000

Employment/Unemployment

F M A A M J

2800

2800 stopgap bill President Donald Trump signed to The 2800 end the federal government shutdown included a two- 150000 6000 2100 2100 year suspension of the medical device excise tax of 2.3 percent.

4000 This is a continuation of a two-year suspension 100000 1400 1400 in 2016 and 2017 and will be retroactive to Jan. 1.

700

100000

3500

Blue Earth Brown Faribault Le Sueur Martin Nicollet Sibley Waseca Watonwan Minneapolis/St. Paul Minnesota U.S.

November 2016

November 2017

2.6% 3.3% 4.0% 4.0% 3.3% 2.4% 3.4% 3.5% 3.9% 3.3% 3.4% 4.4%

2.0% 2.4% 3.0% 3.5% 2.6% 1.7% 2.3% 2.9% 3.2% 2.4% 2.6% 3.9%

Source: Minnesota Department of Employment and Economic Development C. Sankey

Minnesota initial unemployment MN Valley Business • MARCH 2018 claims • 27

0

J

Sponsored by the Carl & Verna Schmidt Foundation

Socially responsible investing gets a Trump bump

By Stan Choe | Associated Press

D

ecades after she began investing, Diana Casey for the first time put money in mutual funds that aim to invest in a socially responsible way. Her inspiration?

President Donald Trump.

A 49-year-old lawyer, she was turned of f by comments that thencandidate Trump made about immigrants, women, the disabled and other groups. After Trump captured the White House, Casey was feeling disgusted.

“It really flicked a switch that I need to be more involved and do more to get our country back on track,” Casey said. “To me, that meant paying attention to where I put my money.”

Using cash that was sitting in the bank, and shifting some funds in her Individual Retirement Account, Casey reconfigured her portfolio so that she now has about a third of her investments in socially responsible funds, up from zero before Trump was elected. Those investments include a fund that holds stocks in companies where women are well represented on the board and in executive offices.

Others have made a similar move, defying predictions that a Trump White House would have a chilling effect on the socially responsible investing industry. Last year, investors plugged $6.4 billion into socially responsible mutual funds and exchangetraded funds, according to Jon Hale, head of sustainable investing research at Morningstar. That’s up 10 percent from 2016, and more than triple the rate of 2015.

The industry was already enjoying accelerating growth before Trump, and investment companies were rushing to open new funds that consider “environmental, social and governance” issues to tap into the demand. The term has become so widespread that many funds simply put “ESG” in their names for shorthand.

After Trump’s election, though, the expectation was that a Republican-led Washington would enact policies at odds with ESG funds. It would favor the coal and oil

28 • MARCH 2018 • MN Valley Business

industries, for example, which would undercut profits for the renewable energy companies at the hear t of many environmentally focused funds.

Instead, dollars continued to flow into socially responsible investments, and the industry launched 39 mutual funds and ETFs last year, a record, said Hale.

“More and more products are out there now, and everything is poised to see ongoing growth,” he said.

Because much of the industry is so young, many funds have limited track records for measuring performance. One stereotype says that socially responsible investors need to sacrifice returns, but studies by Morningstar, Morgan Stanley and others in recent years have disputed that.

Researchers say that stocks of companies that score well on gender diversity have historically generated slightly better returns, for example. And companies with strong environmental, social and corporategovernance policies can have fewer incidents that can lead to sharp drops in stock price, such as an environmental disaster or business-practice scandal. “I do think we’re at a moment where the whole notion of the corporation is changing,” said Joe Keefe, chief executive of Pax World Funds, which launched the country’s first socially responsible mutual fund in 1971 and now manages about $4.7 billion. “I think companies understand that customers have the expectation that the company stand for something, has values.”

Companies are increasingly taking their customers, employees and communities into consideration when making their decisions, not just their shareholders and the next quarter’s results. And Wall Street is pushing them further along that path.

The CEO of BlackRock, the world’s largest investment firm, sent a letter this month to his counterparts at the largest publicly traded companies telling them that “to prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.”

MV

Sponsored by the Carl & Verna Schmidt Foundation

Higher bond yields come with growing questions

By Marley Jay | Associated Press

H

igher bond yields are finally here, and investors have to consider what, if any, changes to make to their portfolios.

Short-term yields haven’t been this high for almost a decade, and long-term yields have also risen. Investors expect rates to keep going up as the economy improves and as the Federal Reserve continues to raises rates above their historically low levels. At the same time, the Fed is letting its huge bond portfolio shrink.

Low bond yields are one of the key reasons stocks have climbed higher and higher in recent years, and it’s possible the increase in yields will break stocks out of their pattern of steady gains. Higher bond yields may tempt investors who want income, and they also tend to slow down economic growth by making it more expensive to borrow money, which could be bad for stocks.

Jack Ablin, chief investment officer for BMO Capital Markets, said higher bond yields have been a long time coming, so investors might not need to make big adjustments just yet. But if yields climb further, Ablin’s prepared to make big changes. Bonds could even become more appealing than stocks, which have started to look expensive.

How should investors react to the rise in yields? High-dividend stocks have already lagged the market, so should investors avoid them now?

There are a lot of investors who are incomeoriented, so income is a key part of what they’re trying to do. I’m not sure we’d necessarily say avoid income.

But for the most part we’ve positioned for higher rates and we just haven’t gotten them. So I haven’t necessarily changed anything big picture. This rise we expected last year appears to be coming through nowadays.

This is probably the longest anticipated bond bear market in history. Now it appears that while the Federal Reserve has curtailed its (easing) program, many of the global central banks are doing the same.

The rise in rates means the prices of many types of bonds are falling.

Are any bonds doing well?

When Treasury yields rise, that tends to create a competition. You have to look at it asset class by asset class, but in general I would say more high-yield bonds should do well because they have higher coupons and shorter maturities. LIBOR-based floating rates loan should do well.

And rates are going up for a couple of reasons, including less buying from the central banks of Europe and Japan. But what’s driving the reduced buying from the foreign central banks is better growth.

It’s that growth that’s fueling demand for oil and natural gas.

How high are yields likely to go?

I’m not an economist, so I couldn’t say. But historically, the yield of the 10-year note has tracked the gross domestic product, and nominal GDP is about 4 percent. So fair value for the 10-year is about 4 percent. That’s where it should be, but that’s where it should have been a year ago.

Yields need to rise about 150 basis points across the board for that to be fair value. If that happens, it’s going to create problems for equities because then we’ll have some competition. For now, the equity market is the only game in town because the bond yields are so meager. If the yield on the 10-year Treasury gets to 3.5 percent, then I’m selling equities.

We have to be prepared for shifting our asset allocations around.

If rates rise enough, it’s going to pull the rug out from under the stock market if the fundamentals don’t improve enough. MV

MN Valley Business • MARCH 2018 • 29

100 Block North Front Street looking South Photograph courtesy of the Blue Earth County Historical Society

Greater Mankato Growth, Inc. Annual Meeting

TAKIN’ CARE OF BUSINESS FOR 150 YEARS March 8, 2018 - 11:30 am - 1:00 pm

Greater Mankato Growth

Honoring our Volunteers of the Year:

John Hemstock

Maureen Waltman

Randy Zellmer

Jodie Hermer

Register online by March 1:

greatermankato.com/annual-meeting A special THANK YOU to our event sponsors!

30 • MARCH 2018 • MN Valley Business

Local Movers, Shakers and Game Changers

OPPORTUNITY. L IV ES . H ERE.

by Bridget Norland, Director of Marketing & Communications

O

n January 15, Cambria was presented with the Business Pathfinder Award at the Martin Luther King, Jr. Community Celebration.

Each year, Greater Mankato Growth honors a member business that strives for equal treatment, human rights and non-violence in the workplace.

The establishment of Cambria’s English Language Program exemplifies all of this and more.

Cambria is investing in diverse populations through this program. The vision began when Cambria hired an English Language and Leadership Development Specialist to design and implement this proactive initiative. As the program’s architect, Kamille Kolar has been instrumental in fostering the growth of the program from 13 to more than 100 students in less than a year. The English Language Program demonstrates the company’s desire for their employees to succeed – not just professionally, but personally as well.

Thus, More Mankato was born. The website, moremankato.com can be used by businesses to showcase the community to employee recruits, inform families considering moving to the area and present cool spots to tourists. It includes 360° videos, photos and drone imagery to highlight community amenities and it is supported by a comprehensive marketing campaign.

Leading you through each tour stop is your local tour guide, or ambassador, allowing you to feel that personal connection to each area of our community (from sports and schools, to service clubs or shopping, to entertainment or economy).

Special thanks to major community employers for their support: Mayo Clinic Health System, ISG, Nidec (Kato Engineering), Mankato Clinic and Minnesota State University, Mankato. Have questions? Contact our office at 507.385.6640.

This type of innovation will fuel the necessary talent attraction and retention. Our regional employment figures have shown growth, even reaching all-time highs and breaking the 60,000 jobs benchmark, but even so, employers remain stressed by the workforce shortage.

Virtual Tour of Children’s Museum of Southern Minnesota on moremankato.com. #moremankato

Pathfinder Awards The Pathfinder Award and Young Pathfinder Award were also presented to two deserving individuals. Diana Joseph was honored with the Pathfinder Award for fostering deeper ties among community members in ways that nurture empathy and universal respect necessary to support the struggle for equitable treatment and for the recognition of human rights.

The Young Pathfinder Award was presented to Lauren Senden. This award recognizes the hard work, commitment and courage displayed by young people and organizations as they strive to achieve fair and equal treatment for all, healthy communities and peaceful resolution to conflicts. For more information visit greatermankato.com/mlk.

MN Valley Business • MARCH 2018 • 31

Greater Mankato Growth

At the first of Greater Mankato Growth’s two Talent Summits, more than 160 community members and business leaders designed strategies to address the talent shortage. From these summits and the creation of a Talent Council, many creative ideas were conceived. An identified key priority from this initiative was a “go-to hub” for prospective residents and visitors to learn about the community.

Growth in Greater Mankato RIBBON CUTTING

RIBBON CUTTING

NEW LOCATION

African Fashions 416 Park Lane, Mankato

Kato Physical Medicine 800 South Front Street, Mankato

Office Space Design 606 North Riverfront Drive, Mankato

Cavalier Calls on the Newest Greater Mankato Growth Members

Greater Mankato Growth

Aerial Imagery Media 340 Harrison Avenue, North Mankato aerialimagerymedia.com

Medieval Metalwerx 3000 Technology Drive, Mankato facebook.com/medievalmetalwerx

Boys & Girls Club Mankato 709 South Broad Street, Mankato

Timeless Interiors Mankato timelessinteriorsmn.com

SAVE $I00 WITH THE MEMBER REFERRAL DISCOUNT 32 • MARCH 2018 • MN Valley Business

Cavaliers

Wintrust Mortgage 1600 Madison Avenue, Suite 103, Mankato wintrustmortgage.com/Deb-Ikier

For each business you refer that becomes a member, you will receive $I00 off your next year's membership, up to the value of your membership.

Business must mention your referral.

For more information visit: greatermankato.com/maximize-membership

5:00 - 7:00 pm March 6 April 3 May 1 June 5 July 10 August 7 September 4 October 2 November 6 December 4

Open Door Health Center Gislason & Hunter Prime Your Business Farrish Johnson Law Office Presidio Maschka, Riedy, Ries & Frentz Law Firm Stifel Prime Your Business Children’s Museum of Southern Minnesota J. Longs for Men

7:30 - 9:00 am March 21 April 18 May 16 June 20 July 18 August 15 September 19 October 17 November 14 December 19

Alpha Media Mankato Mayo Clinic Health System Mankato Golf Club Cambria Gallery - River Hills Mall iSpace Environments LIV Aveda Salon & Spa Minneopa Golf Club MRCI Affinity Plus Federal Credit Union Nesbit Agency

2018 Business After Hours Sponsored by:

January Business After Hours hosted by River Hills Hotel

January Business Before Hours hosted by JP Fitness

Business After and Business Before Hours gives representatives from GMG member businesses at the Engaged Level or higher an opportunity to get together with one another to exchange ideas and learn about each other’s businesses. For more information on these and other member events, visit greatermankato.com/events.

*Pricing goes up after March 10.

$99* $89* $499*

Greater Mankato Leadership Institute is pleased to host a workshop featuring Dr. Randy Richards:

Conflict Awareness & Positive Solutions Wednesday, March 28, 2018 • 8:00 am - 12 pm Courtyard by Marriott, Mankato, MN (Continental breakfast & registration 8:00-8:30 am)

In most aspects of our lives, conflict is almost inevitable. Dr. Richards’ workshop will help us recognize conflict patterns and then provide tools to manage and resolve these struggles in a successful way. During this workshop, attendees will have the opportunity to utilize their own experiences as case studies. Dr. Richards will help participants work through these scenarios using a simple, step-by-step process. This event is open to all employees of GMG Members (engaged level or higher). Register at greatermankato.com/events.

MN Valley Business • MARCH 2018 • 33

Greater Mankato Growth

Individual Tickets Leadership Alumni Tickets Reserved Tables/Teams of 6

OH, THE PLACES YOU’LL GO...

TAKE ADVANTAGE OF VACATION TIME

By Katie Adelman, Marketing and Communications Coordinator

T

Greater Mankato Growth

here’s an adage that goes something like this: So much to do and so little time. It seems true in today’s demanding Bike one of Mankato’s trails culture to be in multiple places at once and to do a million other things. When can we expect a break from this constant bombardment of obligations? During a vacation, that’s when! The problem is finding the time and using it.

According to the U.S. Travel Association’s Project: Time Off Coalition, a group of organizations committed to changing the thinking and behavior of Americans about their vacation time, Americans say vacation is important.

Yet 54 percent of them aren’t using their hard-earned time off. Its 2016 research found American workers took almost a full week less of vacation than in 2000, “resulting in a stockpile of 600 million unused vacation days.” Similarly, 56 percent of Minnesotans have unused vacation days—13.2 million to be exact—leaving $1.5 billion in untapped economic benefit. Imagine the R&R benefits to be had during one of these so-called vacations. In fact, vacations are vital to promoting better health, strengthening relationships, thinking creatively, and improving workplace performance. All that’s needed is proper planning.

However, only 51 percent of households set aside time to plan their vacation each year. It’s been proven that people who plan are more likely Canoe on Mankato’s river system to use all their days off.

34 • MARCH 2018 • MN Valley Business

That’s why, in 2017, Project: Time Off started National Plan for Vacation Day, a day to help encourage Americans to plan vacation days for the upcoming year.

In its inaugural year, more than 600 organizations from all 50 states banded together to raise awareness of the important of planning a vacation.

This year, approximately 5.18 million people were reached via social media on National Plan For Vacation Day January 30. Visit Mankato raised awareness by participating in the #PlanForVacation Facebook and Twitter thunderclap (a pre-determinded time by multiple Take part in the CityArt users to share Walking Sculpture Tour similar content).

An article mentioning the ways to spend your vacation in Mankato was compiled and pushed on social media as a tool for people to use when planning a vacation. To learn more about how to spend your planned time off in Mankato, visit visitmankatomn.com/planforvacation.

Whether you expect to travel abroad or simply look forward to a stay-cation, take back your calendar and plan that much-needed vacation. Who knows where it might take you!

T

he City Center Partnership joined Minnesota State University, Mankato in celebrating National Girls & Women in Sports Day on February 3. During Women’s Ice Day in the City Center, participants met some of MSU’s women athletes, learned about the positive impact of sports for girls, heard from Women’s Hockey Coach John Harrington (part of the 1980 “Miracle on Ice” Gold Medal-winning Olympic team) about the Maverick Women’s Team and cheered on the team against Bemidji State.

Coach Harrington signing autographs.

Future athletes were able to watch MSU athletes train in their Verizon Center facility.

MSU athletes spent time with young attendees, even joining in on coloring Stomper!

Athletes from MSU women’s teams enjoyed spending time inspiring youth.

Stomper was on hand for the festivities.

MN Valley Business • MARCH 2018 • 35

Greater Mankato Growth

Thank you to all who participated and supported the event, including the Verizon Center and Wells Fargo.

Photos submitted by Stacey Straka.

RENOWNED AND RENEWED: RTJ TURNS 25

Acclaimed as one of the world's great golf destinations, Alabama's Robert Trent Jones Golf Trail invites you to celebrate its 25th year by offering fantastic deals. Unlimited golf packages are easy on your wallet. All of the original RTJ Golf Trail sites have been renovated and are ready for your arrival. Celebrate our silver anniversary while saving some silver yourself.

Âť Plan your visit to the RTJ Golf Trail by calling 1.800.949.4444 or visiting rtjgolf.com.

facebook.com/rtjgolf

twitter.com/rtjgolf ÂŤ

to

Nathaniel Branwall, Othmane Sekkat, Riccardo Prodocimi, Victoria Camasmie and Wade Davis

ome prevail with start-up business ideas, and some S through ground-breaking innovations. Others, like four students from the College of Business at Minnesota

State University, Mankato, prevail by pouring their hearts into a case competition, working from four different continents over winter break.

This was the third year Minnesota State Mankato was represented at the NDCC and was the only university from Minnesota at the competition. Four business students from diverse backgrounds were selected to take up the challenge this year; Victoria Camasmie from Brazil, Riccardo Prodocimi from Italy, Othmane Sekkat from Morocco and Nathaniel Branwall from Stillwater, Minnesota. The group of was coached by Wade Davis, professor of business law.

“This year, we had a global team with a global perspective, who were very dedicated towards the experience. Indeed, I was the faculty coach and provided guidance, but the drive came from them. They were very dedicated and serious about the experience,” said Davis.

Each team is given 15 minutes to present their case in front of a judging panel. The judging panel consisted of CEOs and managers from different global companies, followed by a 10-minute Q&A panel.

The Minnesota State Mankato team made the final round this year, placing them among the top seven out of 35

“A representative from Proctor & Gamble went up to the students and told them “as soon as you were four minutes into your presentation, I knew you would win your bracket,” said Davis.

While Drexel University won the competition, the team stressed the relevance and importance of this as a positive and impactful learning experience.

Camasmie elaborated, “one thing I learned - and I know it sounds cliché – is that you don’t have to win to really gain the most of an experience like this one. On the last night, during dinner, one of the recruiters approached me and asked if his company can use our idea, which made me feel like we didn’t need to officially win to win; he liked our idea and wanted to implement it. He even connected with me on LinkedIn and told me he would message me and even send me a selfie once our initiative kicks off.”

“Conferences and competitions provide real-world experiences that test student’s capabilities and reinforce that they are no different than those who attend elite universities. Regional and national conferences and competitions are often life-changing. Students who attend them often tell me and others that they are among their top memories and experiences at the University,” said Brenda Flannery, dean of the College of Business at Minnesota State Mankato.

“I believe these types of experiences expose students to new people, new places and new opportunities.

They meet students and business professionals from across that United States that expands their friendships, networks and possibilities. As a business school, our participation also elevates our brand for students, alumni and industry partners,” she added.

MN Valley Business • MARCH 2018 • 37

Minnesota State University, Mankato College of Business

The National Diversity Case Competition is an annual competition and networking event hosted by the Kelley School of Business at Indiana University. The NDCC held its seventh annual event in January. Select diverse collegiate teams from all over the nation were picked to attend and present strategies on a specific case. This year, the case was “embracing your authentic self,”

by Target Corporation, the event’s platinum sponsor.

From a human resource and talent management angle, Target wanted solutions on how to push its employees to embrace and promote the diversity of their own personalities and interests in the workplace.

competing teams. This put the University on a competing level with teams from Indiana University, Michigan State, Drexel University, University of Washington and others.

HAND OR WRIST ISSUES?

Don’t let arthritis, carpal tunnel or a fracture limit your potential. Regain functionality in your hand or wrist by visiting our orthopedic experts in Mankato.

Mayo Clinic Health System in Mankato Call 1-877-412-7575 to schedule an appointment. mayoclinichealthsystem.org

MN Valley Business • MARCH 2018 • 38