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HEALTH CARE MANAGEMENT’S GREATEST CYBER SECURITY NEEDS Cyber security threats to organizations, specifically health care, have never been greater. The severity and impact of cyber threats have changed the landscape in which health care organizations of all sizes and complexities operate. A study by the Brookings Institution predicts that one in four data breaches this year will impact the health care industry. Since late 2009, the medical information of more than 155 million Americans has been exposed without their permission through about 1,500 breaches, according to Brookings.

Trustees and executives recognize they’re being held accountable for the data entrusted to their organization. A cyber security mistake can lead to loss of data, trust, customer base and even an organization’s demise. To effectively manage cyber security risks, trustees and executives need greater transparency in the IT activities as well as independent evaluation.

Asking the Right Questions One of the greatest challenges facing most trustees and executives is the complexity of the IT world. Often, those responsible for managing IT systems operate in a bubble. These IT departments likely view themselves as an open book, willing to assist management when requested. Their intentions, although good and admirable, leave trustees and executives in a difficult position as

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they attempt to ascertain and manage cyber risks. If they don’t know which questions to ask, IT isn’t going to give them the information they need. Often the critical challenge is asking the right follow-up questions to an initial response from IT. Trustees and executives also need to understand that the people they entrust to manage their IT systems, in many cases, have the ability to do almost anything to the data residing on those systems. Company and customer data, including financial, health and proprietary data, can be viewed, modified or erased by these people. To further complicate matters, those same individuals have the ability to remove all evidence or audit trail of their activities.

Transparency Matters To fulfill their responsibilities, people with ultimate accountability for the security of an organization’s data need to be clear about the complex processes conducted by their IT personnel, as well as the independent evaluations of their organization’s cyber security activities, initiatives and culture. Likewise, trustees and executives should not be content with information provided by their own IT professionals but should validate the information with an independent assessment.

Jon Ault Technology Advisory Sr Mgr 701.476.8913 jault@eidebailly.com

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Minnesota’s Agricultural Homestead Property Tax Law

E

ver wonder what the abbreviations in the top right corner of your property tax statements mean? If you’re dealing with cropland or livestock facilities, those markers probably indicate whether your property is classified as “homestead” or “nonhomestead” property under the property tax statute. These classifications can have a huge financial impact, and the laws and agency interpretations that determine which classification your land receives are disastrously complicated and out-of-touch with modern family farming practices.

Why Does Agricultural Homestead Classification Matter?

The difference between having

your land classified as ag homestead or ag non-homestead can have a significant impact on your pocketbook. In the short term, losing the homestead classification on farmland usually nearly doubles the owner’s property tax liability.

Long-term, losing agricultural homestead classification can cost a farmer’s estate hundreds of thousands of dollars in Minnesota Estate Tax. This is because the Minnesota Estate Tax Qualified Farm Property Deduction, which is intended to ease the estate tax burden on multi-generation family farms, is only available if the land was classified as agricultural homestead in the year of the decedent’s death. For decedents dying in 2017, the Qualified Farm Proper-

ty Deduction permits a decedent to pass up to $3.2 million in qualifying farmland to family members free of Minnesota Estate Tax. What are the Problems with Current Special Agricultural Homestead Law? Minnesota’s homestead statute permits families to keep farmland classified as agricultural homestead in situations where (a) no one in the family is living on the farm, but the land is still being operated by a family member, or (b) the farmland is held in a family-owned partnership, LLC or corporation. The idea behind the special agricultural homestead is that farming families shouldn’t be penalized just because Mom and Dad move to town, or because they use a basic liability protection and estate planning tool like a family farm LLC or other entity.

The homestead statute is also incredibly complicated and difficult to comply with whenever a family farm entity—like a partnership, LLC or corporation— owns farmland.

Action Items:

• Pay attention to your property tax statements and any classification changes proposed by the county assessor.

• Though there are some creative ways to lessen the property and estate tax consequences when dealing with ag homestead classifications and land owned by entities, the only real solution is for the Minnesota Legislature to fix these statutes. Talk to your state representatives, and let them know that this matters to you and could have a real effect on your family.

MN Valley Business • march 2017 • 1

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F E A T U R E S March 2017 • Volume 9, Issue 6

12

Health care is a major engine of the regional economy and services continue to grow, although changes in health insurance and political uncertainty cause challenges.

18

When Abbie Anderson searched for a weighted blanket to help soothe her Fibromyalgia she found few options, leading her to start her own home-based business.

20

Profinium bank is new to the Mankato market and branch President Paul Osdoba said they pride themselves on changing the idea that the bank industry is boring.

22

Husband and wife team Scott and Marisa Lehmann work together to produce unique kitchen designs at the Backwoods Designs business in Winnebago.

MN Valley Business • march 2017 • 3

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March 2017 • VOLUME 9, ISSUE 6 PUBLISHER Steve Jameson EXECUTIVE EDITOR Joe Spear ASSOCIATE EDITOR Tim Krohn CONTRIBUTING Tim Krohn WRITERS Kent Thiesse Heidi Sampson Dean Swanson Nell Musolf Dan Greenwood PHOTOGRAPHERS Pat Christman Jackson Forderer COVER PHOTO Pat Christman PAGE DESIGNER Christina Sankey ADVERTISING Phil Seibel MANAGER ADVERTISING Jordan Greer Sales Josh Zimmerman Marianne Carlson Theresa Haefner Thomas Frank 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 344-6336, or e-mail mankatomag@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......................10 ■ Business and Industry trends..........24 ■ Retail trends.....................................25 ■ Construction, real estate trends.....26 ■ Gas trends........................................27 ■ Stocks...............................................27 ■ Agriculture Outlook..........................28 ■ Agribusiness trends..........................29 ■ Minnesota Business updates............30 ■ Job trends.........................................30 ■ Greater Mankato Growth..................32 ■ Greater Mankato Growth Member Activities ...........................34

From the editor

By Joe Spear

Assessing the risk of something bad happening

W

e learned in our master’s program in economics that success in the field of forecasting was not about knowing something bad was going to happen but rather by being able to assess the risk of whether something bad was going to happen.

It was sound advice and a key phrase to be noted in employment interviews. As long as we were armed with our coefficients of correlation formulas we could assess the risk of a bad hair day or the end of the world.

It was also a good way to stay employed. One can always be fired for forecasting incorrectly, but it’s at least a little tougher to fire someone who missed correctly assessing the risk of something bad happening. Risk runs both ways.

With that in mind, I’ll try to assess the risk of something bad happening with the Mankato economy, now and into a near-term future, say six months. Of course, if one could rate economic forecasting like we do weather forecasting, we could all be employed for a very long time. (Let’s just say, weather forecasts are usually only accurate for a couple days and weather forecasters seem endlessly forgivable due to their affability).

There are a few observations about the Mankato economy that are worth considering. We know farm income and crop prices have been down significantly for the second year in a row. Our agriculture columnist Kent Thiesse notes farm income was forecast to be off 15 percent to its lowest level since 2009. Prices of commodities key to Mankato area farmers including corn, soybeans, hogs and milk have all been down, although milk prices appear to be up since September.

But if every farm in the Mankato region is a small business, one would expect a ripple effect through some of the other sectors.

4 • march 2017 • MN Valley Business

But looking at for example, Mankato retail trade indicators, they don’t look like they’re down as much as the farm sector.

Vehicle sales for Mankato shows, for example, sales were up five months in 2016 compared to 2015 and down for seven months. In fact, October 2016 vehicle sales were very strong at 1,400 units, while most of the declines seemed more modest. For 2016, vehicle sales were actually up just slightly compared to the year before, less than one percent.

Retail sales as measured by the Mankato retail sales tax were down most of 2016, but again, by smaller amounts. Overall retail sales for Mankato was down only about 6.5 percent for 2016. One might expect some cutting back on bigger ticket items, but overall, the trend is not as down as farm income in percentage terms.

Mankato’s food and beverage industry — restaurants and bars — faced declines in business only about three months out of the year.

In most other months, business seemed on par with 2015. Overall, the food and beverage business was down only 1.5 percent in 2016.

So the conclusion may be that big hits in farm income do not necessarily translate to similarly big hits in consumer spending in the Mankato region. Farm income is not to be considered insignificant however.

In assessing the risk of the Mankato economy, we should also consider larger economic factors.

The Federal Reserve is expected to continue raising interest rates this year. That could impact the cost of homes, as the market already seems tight for certain mid-level price homes. Interest rates could also affect car buying. Another bad year in agriculture and you might see some small “bad” happening.

We must remember, there may be a whole group of young people hitting their 30s who’ve never

known an interest rate hike. Rates have been so low, it’s almost like it never mattered. That’s changing.

But some experts also say the Mankato region may be on the verge of rising labor costs, or on the flip side, higher wages.

Obviously, higher labor costs hurt businesses, but higher wages help the consumer side.

The impending labor shortage is already showing up in literally dozens or hundreds of skilled and professional jobs local employers cannot fill. Already, we’re seeing pressure on wages at the lower levels.

Higher wages could translate into a more robust consumer and retail side should that come to pass.

While it’s important to assess the risk of something bad happening in economics, it’s also good to oconsider that if the risk of something bad happening is low, something good happening will be more likely.

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

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SBDC’s Nelson honored

Julie Nelson, interim regional director of the Small Business Development Center in Mankato, has been selected as an honoree of Finance & Commerce 2017 Julie Nelson P r o g r e s s Minnesota award.

She will be honored at an event in April and profiled in a special publication in Finance & Commerce on April 7.

Progress Minnesota is an acknowledgement of the individuals, companies and associations that are driving business, industrial growth and development in the Twin Cities and the state of Minnesota.

Aukes certified

Ashley Aukes, communications specialist for Region Nine Development Commission, has been named a certified solution provider by Constant Contact, the marketing advisor to more than 650,000 small organizations worldwide.

As a certified solution provider, Aukes has completed the Constant Contact certification program which provides training on Constant Contact tools, marketing best practices, and business development. This training imparts industry-leading knowhow on marketing and services to create meaningful results for program participants and the clients that they serve.

“Being a certified solution provider gives our organization another way to support small businesses and nonprofits throughout the Region Nine

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MN Valley Business • march 2017 • 5

service area,” Nicole Griensewic Mickelson, executive director said.

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U.S. Bank awards $30,000

U.S. Bank awarded more than $30,000 in grants to nonprofits organizations in the Mankato area and $26.2 million in total across the country in 2016. The grants, made through the U.S. Bank Foundation, support the three core pillars of the Community Possible corporate social responsibility platform the bank introduced last year: Work, Home and Play.

“Work, home and play are the building blocks that make our country great: a stable job, a home to call your own and a community connected through the arts, recreation and play,” Bryan Sowers, Mankato market president said in a statement.

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Pork group holds elections

Daryl Timmerman of Mankato was elected to the Minnesota Pork Producers Association during their annual meeting.

Adam Barka of Sleepy Eye and David Mensink from Preston were re-elected to the MPPA board for another term.

Timmerman will fill the seat left open by Nate Brown of Ceylon, who retired after six years of service.

MPPA Board members are elected to three-year terms and work on behalf of Minnesota’s farmers to bring leadership for its members by influencing public policy on a local, state and national level.

Other board members include Adam Barka, Sleepy Eye; Paul FitzSimmons, Mapleton; Kevin Hugoson, Granda; David Mensink, Preston, and Pat Thome, Adams. In addition, Minnesota representatives serving on the National Pork Producers Council board include James Compart of Nicollet and Terry Wolters from Pipestone.

6 • march 2017 • MN Valley Business

MES adds Tax Manager

Morken Eckberg Steiner has added Bronson Power as tax manager. He has 14 years of public accounting and industry experience and will work with individual and business clients providing tax and consulting ser vices. Bronson holds a Bachelor of Arts in accounting and business management and a Master’s degree in business administration. He is also a licensed Cer tified Public Accountant in the state of Minnesota.

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Ellis named partner at Gislason

Gislason & Hunter announced that Ryan C. Ellis from the Minneapolis office has been named Partner. Ellis is a civil litigation attor ney and concentrates his practice on medical malpractice defense where he represents hospitals, clinics, nursing homes, physicians, nurses and other health care providers.

Thiesse, Sapp honored

T h e Minnesota School Boards Association named Lake C r y s t a l Wellcome M e m o r i a l School Board member Kent Thiesse and Kent Thiesse Mankato Area School Board member Jodi Sapp to its 2017 All-State School Board.

The All-State School Board is MSBA’s most prestigious award.

Jodi Sapp Thiesse has served on the school board since 1989. Thiesse also served on the MSBA board of directors and was MSBA’s president from 2010-2012. He is currently one the board of trustees for the MSBA insurance trust.

Sapp joined the Mankato board in 2002 and also had a stint on the MSBA board of directors. She also serves on board of trustees of the Minnesota School District liquid asset fund plus.

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Profinium makes promotions

Profinium appointed Taylor Herman to the position of vice president, p e r s o n a l banking.

In his new role, Herman will lead the p e r s o n a l Taylor Herman banking division for the organization, collaborating with division and market presidents.

Herman has a Bachelor’s degree in management from Saint John’s University, and has more than seven years of experience at Profinium.

Profinium is a locally-owned

community bank with four locations: M a n k a t o , Fair mont, Truman and Owatonna.

Profinium also appointed Ian Bents to the Ian Bents position of executive vice president, business banking and sales.

In his new role, Bents will continue to focus on developing relationships with ag and business clients as well as working with the loan, mortgage, insurance and wealth planning departments to drive sales.

Bents has a Bachelor’s degree in Business Management from Saint Mary’s University and a Graduate School of Banking degree from the University of Wisconsin – Madison, and has more than thirteen years of experience at Profinium.

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MN Valley Business • march 2017 • 7

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Gislason adds Kim to committee

Gislason & Hunter named partner David Kim to the executive committee. This committee is the leadership team for the firm which has 46 attorneys in four David Kim offices including New Ulm, Minneapolis, Mankato and Des Moines, Iowa.

Kim’s practice focuses on all transactional aspects in corporate mergers and acquisitions. He received his Juris Doctor, in 2003 from the University of Iowa College of Law, Iowa City. He also received a Master of Law degree from the University of Iowa College of Law, Iowa City, with a major in International & Comparative Law. Kim received a Bachelor of Arts Degree from the University of Korea College of Law in 1992.

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Murphy joins Pioneer Bank

Long time M a n k a t o business banker Mark Murphy has joined Pioneer Bank as senior vice president and business banker.

David Krause, CEO of Pioneer Mark Murphy Bank made the announcement last week.

“Mark is a respected business banker who has provided value and guidance to many businesses in his 28 years serving the Mankato area,” said President David Krause.

Pioneer Bank has $410 million in assets and has offices in Mankato, North Mankato, St. James, Mapleton, Madelia, Lewisville and a loan production office in Lake Crystal. The bank was recently named one of the top three extraordinary banks in the United States by the Institute for Extraordinary Banking.

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Business Commentary

By Dean Swanson

What you need to know before buying a business

R

ather than building a small business from the ground up, buying an existing company offers the opportunity to move along the path to entrepreneurship more quickly.

With all of the startup tasks already taken care of, a staff in place, an established customer base, existing vendor relationships, and processes and procedures laid out, you have a head start.

But that doesn’t diminish the importance of doing your research before making the decision to buy a business.

Acquiring an existing small business requires substantial examination so you avoid the many pitfalls that befall eager entrepreneurs who leap before they look.

According to William Comiskey, a SCORE mentor at the Southwest Florida SCORE Chapter, “Investing in a business is the same as investing your savings in a mutual fund or stock portfolio to secure both your future and possibly your retirement. You study and review the past performance and the current condition and seek help and advice from professionals on the prospects for the future.”

Before purchasing an existing business, you need to get answers to some critical questions. Here are a few.

Why is the owner selling?

Seek the truth. If the business is in a declining neighborhood or the owner has caught wind of an upcoming market change that will negatively affect revenues or cost structure, you might put

“When you buy an existing business, you’re getting the brand reputation along with it. That will either work for or against you.” yourself at risk of failure from circumstances beyond your control. Uncovering the real reasons for a sale may be difficult. Be wary and realize that smart business owners don’t often walk away from profitable endeavors unless they have strong personal reasons (illness, retirement, etc.), or they have received offers that are too good to refuse.

How is the business doing financially?

If it has been losing money or hasn’t been generating a satisfactory profit, you’ll want to dig deeper into the reasons why.

Unless you’re confident you can operate it more profitably than the current owner, you might end up with a sinking ship on your hands. Be sure to review copies of the financials for the past few years.

What reputation does the business have?

When you buy an existing business, you’re getting the

10 • march 2017 • MN Valley Business

brand reputation along with it.

That will either work for or against you. Turning around an existing business’s poor reputation will be difficult and could take years — and it might even be impossible depending on how negatively the company is perceived by customers, suppliers, and the public.

If the business has a favorable reputation, find out what has made it so. A strong reputation based on personal relationships between the owner and customers might not easily transfer to you. Be particularly cautious of this if the business relies primarily on a few key customers or suppliers.

Are you getting ever ything you need?

Find out if the purchase will include essentials such as: leases and contracts; customer lists; patents, trademarks, service marks, and trade names; key employees who are vital to the business; and other important components.

As Comiskey suggests, you don’t have to embark on the process alone. Consider tapping the expertise of professionals (such as SCORE mentors) who can help you assess the opportunities and risks of buying an existing business.

Since 1964, SCORE “Mentors to America’s Small Business” has helped more than 9 million aspiring entrepreneurs and small business owners through mentoring and business workshops. More than 11,000 volunteer business mentors in over 320 chapters serve their communities through

entrepreneur education dedicated to the formation, growth and success of small businesses. For more information about starting or operating a small business, visit SCORE at www.score.org.

“If it has been losing money or hasn’t been generating a satisfactory profit, you’ll want to dig deeper into the reasons why.”

Dean L. Swanson, Southeast Minnesota SCORE, is a volunteer SCORE mentor and regional vice president.

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MN Valley Business • march 2017 • 11

The Emergency entrance to the Mayo Clinic Health System hospital. The hospital will be undergoing several renovations in 2017.

Healthy growth Region continues to see health care expansion

By Tim Krohn | Photos by Pat Christman and Jackson Forderer

T

he Mankato region’s growth as a medical hub continues and will accelerate as Mayo Clinic Health System launches a major modernization of facilities at the Mankato campus and expands services.

“We will be expanding services in the Mankato area as well as modernizing,” said Dr. James R. Hebl, who was recently named regional vice president, Mayo Clinic Health System southwest Minnesota region.

At Mankato Clinic they have continued to expand their team approach to health care, expanded dermatology, neurology, physical therapy and behavioral health services and are rolling out more online technology for patients to get a diagnosis for minor health issues without coming in to see a doctor.

Randy Farrow, CEO of Mankato Clinic, said all the efforts look at “How we can improve health outcomes

for patients and reduce costs.”

While the two major health providers in the area focus on services and outcomes to meet the demands of a growing and aging population, other health specialties in the region are also growing.

Nancy Green, of River Valley Hearing in North Mankato, said hearing aid services are in growing demand.

“People are living longer,” Green said. “But more people are also recognizing at a younger age the benefits they’ll see with a hearing aid.”

Cover Story

12 • march 2017 • MN Valley Business

Mayo projects

Hebl said major projects for Mankato are receiving final approvals from Mayo Clinic’s board and will transform the campus.

“As we continue integration for Mayo Clinic through

the entire Upper Midwest, and what we refer to as our Pyramid of Care, Mayo Clinic is spending a lot of time transforming the regional hubs.

“The focus is to provide Mayo Clinic care close to home.”

Hebl said that for acute and highly specialized cases that can’t be handled locally, the Rochester Mayo campus can provide “the tip of the pyramid care.”

In Mankato, Mayo will be expanding sub-specialty pediatric care and orthopedic surgery services.

“Along with that will come the need to expand our facility. We will more than double our orthopedic space.”

Much of the physical change on campus will come through major modernization projects, including an upgrade of infrastructure like electrical systems.

“We will be greatly expanding our operating suites and not only increasing the number but modernizing them. And modernizing our pre- and post-operation areas.”

They will also add space and upgrade on-sight radiology and procedural rooms.

While some new buildings are on the longer-range plan (3 to 10 years) much of the coming work will be renovation, modernization and perhaps some additions.

He said they hope to add a “grand patient waiting area and lobby” that would be a new addition to the hospital.

“It’s extremely exciting,” Hebl said.

He said that besides modernizing to improve services, the makeover will help meet growing demand. “We know the Mankato demographic area continues to increase and our projections for growth look very promising.”

The Mankato Mayo system, with satellite hospitals in Waseca, Fairmont, New Prague and St. James, employs 4,000 people.

One addition that won’t take place on the main campus is an eventual makeover of Eastridge Clinic into a pediatric clinic. For the coming year, at least, the building will be used as a training center for employees to learn the new Mayo electronic health records system.

Mayo has been working for years on the $1.2 billion record system, called the Plummer Project after Dr. Henry Plummer, who is credited with forming the core unified medical record infrastructure of Mayo Clinic. Once rolled out, Mayo health providers will be able to access records for patients who visited any Mayo facility, including in Arizona and Florida, “It’s a massive project,” said Hebl of the system that will be launched in the Mankato region in November.

He said the system will make it easier for patients and providers, be more efficient and save money.

He said the increased focus on orthopedics in the Mankato region is part of a growing demand for services across the nation. “It’s an extremely high growth market. Our baby boomer population is approaching the age where those types of surgeries are commonly done.”

Knee and hip replacements already account for the largest category of Medicare payments.

They just hired their fourth orthopedic surgeon locally and have specialists in hips and knees, sports

Randy Farrow, CEO of Mankato Clinic. medicine, and hand wrist and elbow surgery. “We will continue to grow even further.”

He said sports medicine also continues to see demand across the country.

“And as Mankato grows as a sports center, for high schools and collegiate and attracting sports events to the area, that demand will only grow.”

Mayo has also launched health equity initiatives locally to better serve under-served populations. “A small example is a pilot program in St. Peter that focuses on working with the Somalian population.”

The program includes a community health worker who helps the Somali community better navigate the system and helps Mayo better understand cultural differences. “It’s ensuring good use of translators, transportation and making sure we understand the cultural diversity in our communities,” he said.

“With the lessons learned from St. Peter, we hope to grow it in southern Minnesota.”

Clinic growth, challenges

Farrow said the changes in the politics of health care, the uncertainty about the Affordable Care Act and what might replace it and a new presidential administration are all challenges in the complex arena of healthcare and insurance.

“The issue we’ve had in the past year is on the insurance side. Some of these insurers limit who patients can see. We’ve had a lot of patients who’ve been with us a long time who say they can’t see us anymore because of their insurance,” Farrow said.

The issue affects policies for individuals and smaller owner-operated businesses.

“It’s not good for patients who’ve had a long relationship with their provider. And I don’t think it’s good for competition. It particularly hurts smaller

MN Valley Business • march 2017 • 13

Top left: The second floor of the Mayo Clinic Health System in Mankato is one of the areas to receive extensive renovations beginning this year. Top right: Dr. Ryan Foley, an orthopedic doctor, talks with Andrea Hawker, a registered nurse, at Mayo. Bottom: Dr. Paul Bandelin is a Mankato Clinic dermatologist based in St. Peter. providers like us.”

He said the plans are pushing Mankato Clinic patients to the large Mayo network.

Farrow said they have pushed Blue Cross and Medica about the issue but haven’t received a clear answer.

“They’ve just been forced to offer some kind of a product and they’ve come out with a closed product with Mayo. They’ve told us repeatedly that our costs are lower, so it’s not clear what kind of deals are being made. It’s not tied to our quality or cost,” he said.

“I’m not sure there’s any fix. If that trend continues, it’s going to create a challenge for us.”

The insurance changes are causing problems for many smaller providers and rural hospitals and clinics. The Star Tribune reported last month about Blue Cross and Blue Shield of Minnesota policies where people in HMOs are pushed to get care from a subset of providers.

Those policies can force people to leave their current provider and switch to in-network providers that are sometimes farther from

14 • march 2017 • MN Valley Business

their home.

Rural hospitals say it doesn’t provide the best care for patients closest to home and could threaten the viability of rural health care practices.

Blue Cross of ficials acknowledge to the newspaper that the situation is not ideal, but they argue the problem is not with the insurer’s networks, which were approved by regulators and work well for many. Instead, they point to a lack of competitive options because of problems in an individual health insurance market that’s been

shaken by the federal Affordable Care Act. “What we would like to do is offer a portfolio of networks or product offerings that allow people choice … but that type of model really does require a stable environment,” Eric Hoag, the insurer’s vice president for provider relations, told the Star Tribune.

The problems are confined to the state’s individual health insurance market, where about 250,000 state residents, including self-employed small-business owners, purchased coverage last year, and doesn’t carry over to the much larger markets for employer coverage and government programs.

Farrow said the clinic is focusing on things they can control.

“How we can improve health outcomes for patients and reduce costs. We’re starting to see results from that. It’s changed how we deliver care and we’ve moved a lot more toward team-based care.”

That means having a team of

care givers closely track patients, particularly those with chronic or complex issues. But Farrow said the system does put more pressure on physicians and providers who spend more upfront time and deal with more paperwork to ensure patients are tracked and get in for checkups more often.

He said the clinic has added more nurse care coordinators and social workers to lessen the burden.

“We want our physicians to be

able to focus on the patient.”

The Mankato Clinic recently opened a new physical therapy department in the lower level of its Main Street clinic, staffed by five therapists.

“As we look at how we manage patients and manage their health across the continuum, one of the things we didn’t have was physical therapy. If you can get them in early to rehab back pain or something else, it reduces the need for surgery or MRIs later on.”

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Nancy Green of River Valley Hearing.

Dermatology also has been a big growth area for the clinic. “We were fortunate to have a number of dermatology candidates come along. That’s usually a tough recruit. We brought in four new dermatologists in about a year.”

Beyond the derm department at Madison East Center, the clinic opened a dermatology office in St. Peter last year at the River’s Edge Clinic campus.

Neurology is another expansion area for the clinic. “We have three neurologists now and are adding two more. This should really open up access and improve our ability to get patients in more quickly.”

The clinic also has added behavioral health providers at primary care clinics so that physicians who think a patient could benefit can get them to a behavioral health provider quickly and seamlessly.

Farrow said the clinic is continuing to focus on employee engagement.

They were recognized last year, for the second year in a row, as at top workplace by the Star Tribune.

“If we can keep our staff motivated and focused on the

mission and work, that’s obviously going to relate to better care for patients.”

The clinic is also expanding patient access through technology through smartphone or laptop applications for minor health issues. “If you have an earache or sore throat and you don’t want to go into the doctor, this will be an option for patients to try this online service. They will connect with a provider online.”

After providing symptoms and conditions, a physician can provide a diagnosis and an online prescription if needed.

Hearing help

One of the growing areas of demand in the medical field is for hearing aids, driven in large part by the same reason other areas see higher demand: an aging population.

“People are living longer,” Green said. “But more people are also recognizing at a younger age the benefits they’ll see with a hearing aid. They’re better educated about it and know the sooner they deal with it the better in the long run.”

16 • march 2017 • MN Valley Business

She said people are also more aware there is a clear link between hearing loss and decreased cognitive abilities. “Our brain does most of our hearing,” she said.

Green worked for another provider until opening River Valley Hearing on Commerce Drive in North Mankato in 2006.

She also has an office in New Ulm. She recently added another provider, Brian Zins, to her practice.

“I love what I do and I think it shows in how I treat our patients.

In this industry, people can get pushed (into buying a certain device). We don’t do that.”

She said more national franchise practices have cropped up in recent years, often selling specific products. “We’re truly independent and like to use the product that’s right for someone.

We want to give you the facts on the products that would work best and let you make the decision.”

While age is the biggest driver of hearing loss, Green said the most common cause of hearing

loss is noise induced. “Farmers and construction workers, hunters. There again, you hope with increased awareness we can prevent some of the severity of the loss. Ear protection is a big thing.”

She said the small foam earplugs are effective but said those, along with earmuffs are the most effective.

Hearing loss also can be caused by ear infections, hereditary loses and certain drugs.

Green said she talks to many youth groups about preventing hearing loss when they’re listening to things through earbuds or headsets.

“If they exceed 80 decibels for a period of time, they will have hearing loss. They won’t notice it the next day, but there will be hearing loss. If you can hear the sound outside the earphones, it’s too loud.”

Green said a new generation of hearing devices is bringing dramatic change.

“We’re seeing upgraded Blue Tooth devices that are really interesting because you can have improved TV watching and improve the ability to hear on the phone and in social situations. It’s better quality sound, better reliability.”

She said internet-based technology also promises to revolutionize hearing aids. “It’s hearing aids connected to the internet. If you have a door bell and it’s Blue Tooth, we can program that doorbell to tell the hearing aid someone is at the door. That’s the direction things are headed in.”

She said hearing aids are also much more automated to adjust to complex hearing environments such as noisy restaurants.

While technology is improved and the need for hearing aids is high, Green said health insurance companies remain hesitant to include coverage for hearing aids.

“Most of the expense is paid by the patient,” she said. Hearing aids start at around $1,400.

“Lately Medicare supplements and some group policies are starting to help with the expense.”

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17

Allie Anderson, her husband Joel, and sons Tate (left), 8, and Ty, 5, with the original prototype Balanced Blanket made for Tate.

Snug business Balanced Blankets comfort ailments

By Dan Greenwood Photos by Pat Christman

A

bbie Anderson faced two challenges last year that would change her life forever. She was diagnosed with Fibromyalgia, a crippling disease causing severe pain and fatigue. Her symptoms were severe enough to where she had to close her four year old massage therapy business in Elysian. But with one end comes a new beginning, and she soon discovered that one of the very therapies that helped ease her symptoms would sprout into a new business.

Weighted blankets can be therapeutic for a number of ailments ranging from Autism Spectrum Disorder to Restless Leg

Syndrome. Anderson said that she first heard of them while troubleshooting with a pediatric therapist about how to calm her older son down at night.

One common use for weighted blankets is to combat insomnia. The problem though would be obtaining one nearby for a reasonable price.

“I took to the internet and the closest one I found (for sale) was in Illinois,” Anderson said.

But when she called that business the woman only offered 10 pound weighted blankets. Anderson needed one that was heavier to work for her son. A conversation

Cover Spotlight

18 • march 2017 • MN Valley Business

with her mother-in-law who happens to be a talented seamstress made her realize she should try to make a weighted blanket at home that could help her son sleep.

With her own symptoms from Fibromyalgia, Anderson found that it was getting more and more difficult to work as a massage therapist. She said closing the shop was one of the most difficult decisions she had to make, but the fatigue she suffered after going into work became unmanageable. It just so happened that closing her business and her discovery of weighted blankets coincided last October. When she made her first blanket, she decided to try it on herself and her sleep quality improved.

“People with Fibromyalgia - we don’t go into stage four sleep,” Anderson explained. “That is where you rejuvenate. So I can sleep 12 hours and wake up like I have not slept at all. The thought behind the weighted blanket is you put this weight on you and your body releases serotonin which is what calms and relaxes you. You’re doing it naturally without any drugs.”

Growing demand

She says the extra free time she had led her to an online forum where she explained what she made and what the weighted blankets are used for.

“I was bored one night on Facebook,” Anderson said.

She shared a photo of a weighted blanket on a swap group forum (kind of like an online garage sale) and that garnered the attention of a dozen people.

“People star ted asking questions about sizes and uses. ‘I just said, whatever you want. We can make this.’ ” She sought out potential customers from towns like Elysian and Waseca, but found her first customers in Chaska and Lakeville. In one day in November she received three orders. The requests multiplied and by Christmas of last year she delivered nearly a dozen.

“I finally had to cut things off and say ‘I’m Done’ I can’t get any more out before Christmas,” Anderson said.

She commends her mother-inlaw for helping her find the materials to make the blankets. A common fabric that works well is flannel. The blankets are made with a liner and individual pockets with crafter’s pellets made of plastic.

As the requests increased, she saw just how many ailments the blankets can help alleviate. One recent customer requested a smaller lap version of the blanket for an Alzheimer’s patient, although many of her clients are seeking them out for their calming affects during sleep. She says that unlike regular blankets, the weighted blankets are only filled with the plastic pellets, meaning they don’t make a person hot

during the humid Minnesota summers.

But because she is the sole employee of “Balanced Blankets,” and works out of her Mankato home, customers need to be patient. Currently she has a waiting list of 10 people deep.

“I never imagined I was ever going to make more than one for the kids and I,” Anderson said. “I never thought that I was going to be dealing with the public and this was going to go anywhere beyond just helping us.”

Anderson said she hasn’t been more excited than since she started the massage business.

Sometimes the bad can turn to good. MV

MN Valley Business • march 2017 • 19

Paul Osdoba, Market President of Profinium Bank.

Not a boring bank Profinium new to Mankato

By Nell Musolf | Photos by Jackson Forderer

T

he banking industry has long had a reputation for being staid, formal and perhaps a little bit dull. After all, money is a serious topic. That stuffy reputation is being challenged by one of Mankato’s newest banks, Profinium.

Stepping into Profinium’s lobby located at 100 Warren Street in the new Profinium Place tower, it is immediately clear that this isn’t banking as usual. With a bright modern décor that includes 100 year old barn boards that came from the original owners’ family farm in Truman, indirect lighting and sleek furniture the people who make up Profinium are doing their best to take a stand against boring banking. Banking not boring? Is that possible?

For Profinium’s employees, the answer is an emphatic “yes.”

The president of Profinium’s Mankato branch, Paul Osdoba, shared the bank’s pledge: “Act with integrity - always, Deliver the common - extraordinarily, Champion change, creativity and collaboration.”

Osdoba said the bank’s pledge isn’t a goal; it’s how Profinium is working right now.

“Having a work culture where employees feel comfortable and part of the team is extremely important to everyone at Profinium,” Osdoba said. “I would describe our management as a flat level management where everyone is treated with the same respect and consideration.”

Jennifer Heimer, vice president of marketing and training, agreed.

“We’ve had people come in for interviews and read our pledge which is hanging on the wall. One person said, ‘If that’s really the way you run this place then I already know that I want to work here,’ ” Heimer said.

Hiring people who understand the bank’s culture is important.

“We hire people who can and will fit our culture,” Osdoba said. “We can always train new employees so that they can learn how to do their job. Understanding, and wanting to be part of our culture, is the most

Profile

20 • march 2017 • MN Valley Business

Tabitha Pugh, a senior personal banker at Profinium, hands a transaction receipt to a customer at the bank’s downtown location. important thing.”

“A person might not have a background in banking,” Heimer said. “Maybe they have worked in retail or something else instead.

What’s more important to us is that someone has initiative and drive and are willing to learn.”

A big part of that culture revolves around the word “choose.” At Profinium, all employees are encouraged to choose to leave their mark, make a difference and find opportunities in every situation. Helping people making their dreams come true and helping people become more than they imagined is part of every working day.

Roots go to 1875

Profinium’s history stretches back to 1875 with the Peoples’ State Bank in Truman. Eventually that bank merged with the Martin City West Bank and became, in 2003, Profinium.

Profinium has three other branches besides Mankato.

Those branches are located in Fairmont, Truman and Owatonna.

The name Profinium was the result of a contest for a new name held by the bank’s employees.

Broken down, Profinium becomes PROfessional FINancial solutions for the new MillenIUM. “Our goal is really to help people achieve their dreams,” Heimer said. “Whatever people’s goals are we are here to help them achieve them whether it’s a new house, a new car or saving for retirement.”

A significant way the bank helped people achieve their dreams occurred this past holiday season when Profinium teamed up with radio station Minnesota 93 to help people in their communities who were going through a difficult time during the holidays. The program, Achieving Dreams Together, worked with several local families who were facing financial difficulties. Achieving Dreams Together provided services from as basic as groceries to new tires to helping pay the rent to medical bill assistance. Profinium donated over $22,000 to the program.

“Each request was unique and we worked hard to partner with local businesses to make it happen. It was very rewarding,” Heimer said.

“We’re new to town and we

wanted to do something unique,” Osdoba added.

In addition to such Good Samaritan efforts, Profinium offers a full range of services that handle everything from personal and business banking needs to insurance to investment services.

“We do it all,” Osdoba said. “We are equipped to handle whatever our customers need us to do. We offer a full financial help plan to everyone.”

Profinium has just under 100 employees at all four branches, some of who spend time at each location.

“Our CEO is here in Mankato two or three times a week,” Osdoba said.

Mentoring is also a large part of the Profinium culture. New employees are paired up with someone who will help them feel comfortable while showing them the ropes. Celebrations of employees and company-wide achievements are also important.

“I started working at Profinium a few months ago and we’ve already had several celebrations,” Heimer said. “It really is a fun place to work.” MV

MN Valley Business • march 2017 • 21

Scott and Marissa Lehmann started Backwoods Designs in Winnebago a few years ago.

Built to last

Backwoods Designs creates custom kitchens

By Heidi Sampson Photos by Pat Christman

S

cott and Marisa Lehmann, owners of Backwoods Designs of Winnebago, are partners in marriage and business.

The number one question the two fields isn’t what their product is or how long it will take for a particular job to be completed, but how do they work together and manage to stay married.

For Scott and Marisa the answer is easy, they each feel as though the other brings a unique quality to their partnership. Plus, it helps that they enjoy each other’s company.

So where Marisa has the more analytical mind, Scott’s is more creative often producing what their computer software

22 • march 2017 • MN Valley Business

programs say can’t be done.

“We have a good balance,” said Marisa.

“We are able to anticipate what the other needs without talking. So, while I do all the bookwork, I’m also in the shop every day, too, working in the dust right alongside Scott.”

Feature

Internship, mentorship, ownership

Scott attended South Central College in Faribault, which at that time had a two-year carpentry and cabinet program. While Scott’s program focused on construction, it

and communicating with customers. When the 2012-2013 school year started, Marisa came in almost ever y night to Backwoods Designs, where the two would work until 10:30-11 p.m. By the summer of 2013, Marisa left her teaching position to work with Scott full time.

Today, Marisa and Scott are still working together, along with Tuffer, a German Spaniel, who works as their office manager greeting customers at the door.

Built to last

also placed a considerable amount of time on cabinet creation. In order to graduate, he completed an internship with Custom Wood Products, a one-man cabinet shop out of Wells, owned by Dan Drugg. When the internship was completed, Dan offered to hire Scott if he needed a job once he graduated. Scott however, already has a position lined up in construction, which he began after his graduation in 2007.

By 2008, the recession crushed the home building market. With no work in sight and no real idea of when the economy might turn around, Scott was laid off. Instead of waiting for work to appear, Scott called Dan Drugg to see if he needed help. Dan had only one question, ‘Can you star t tomorrow?’

“I was very fortunate to work for him,” said Scott. “He taught me so much during our three and half years of working together. He was a great mentor.”

A time to change

Scott’s grandpa owned Lehmann Sales – a woodworking, metal tools and equipment shop

by Rochester – which provided his grandpa with access to various cabinet shops throughout southeast Minnesota. So when Scott asked if they could tour some cabinet shops, his grandpa was happy to oblige. Scott’s goal was to see how a variety of cabinet shops were completing their work, what they were building, as

well as shop layout. The two viewed several shops during their tour. A day later, his grandpa would go into Rochester for a cancer checkup, only to find out he had three to six months left to live.

“They had a lot of conversations about how to lay out a shop,” said Marisa. “His grandfather was helpful in detailing what tools were necessary and what tools were for when they have a lot of money and could spend more to get them.”

Although Scott had purchased all of his grandpa’s tools before he passed away in 2011, he was still missing a business plan and a shop. Unsure what to do next, Scott went to Faribault County Development Corporation where Lindsy Warmka assisted him in figuring out what was needed for each part of his business creation, such as what the bank would need versus the city or county.

Scott and Marisa stumbled across their current building, in which Scott spent six months working to remodel for his needs.

The building was sided, insulated and gutted to make way for new electrical, an office and cabinet workshop.

By the summer of 2012, Marisa was on summer break having landed a position teaching at the middle school in Blue Earth.

During that summer, Marisa spent her time off learning how to handle billing, what areas she could assist Scott with in the shop

In the beginning, Backwoods Design’s kitchen process – from build to install – would take roughly 6-8 weeks for completion.

Now, an average kitchen takes four weeks, as Scott and Marisa have streamlined their process.

Backwoods Designs see their projects all the way through. They build the cabinets, draws and doors from scratch. The only items they order are the hinges and door tracks. All of their lumber comes from a lumber company out of Preston, whose trees come from the same southeast corner of Minnesota.

“We’ve found that the finished product turns out better,” Scott of the local lumber.

If an average kitchen lasts 25 years – with most changes happening due to a house being sold – the couple strives for craftsmanship that lasts for the long haul. They’ve also produced quite a bit of furniture, creating entertainment centers, hutches and buffets. They’ve also completely stained three homes in which, they were original hired only for the kitchen.

“Everyone has that end table or coffee table from their grandma,” said Scott. “It’s that one item that is built to last for generations.

That’s what we are trying to do here. Our customers realize the value of purchasing an item of superior quality, once, rather than five times over from a box store.

When we finish a home, our customers know that they have a quality product meant to last for generations.” MV

MN Valley Business • march 2017 • 23

Business and Industry Trends ■

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24 • March 2017 • MN Valley Business 4.95”x4.95”

MN Valley Business December 2016

Energy Sulfur emissions falling

Sulfur dioxide (SO2) emissions produced in the generation of electricity at power plants in the United States declined by 73 percent from 2006 to 2015, a much larger reduction than the 32 percent decrease in coal-fired electricity generation over that period. From 2014 to 2015, the most recent year with complete power plant emissions data, SO2 emissions fell 26 percent — the largest annual drop in percentage terms in the previous decade.

Nearly all electricity-related SO2 emissions are associated with coal-fired generation.

Several factors have contributed to lower SO2 emissions: Changes in the electricity generation mix Electricity generation from coal fell 14 percent from 2014 to 2015. This drop was mostly offset by an increase in electricity generation from natural gas, but because natural gas has only trace amounts of sulfur, the net effect resulted in fewer SO2 emissions.

Installation of environmental equipment To comply with the federal Mercury and Air Toxics rule, several coal and oil-fired plants installed pollution control equipment. Plants had to comply by 2015, or for some plants that received one-year extensions, by 2016. Two types of pollution control technologies installed for MATS compliance that also reduced SO2 emissions are dry sorbet injection systems (DSI) and flue gas desulfurization (FGD) systems, also known as scrubbers. Between December 2014 and.

Retail/Consumer Spending Vehicle Sales Mankato — Number of vehicles sold - 2015 - 2016 701 874

1500 1200 900 600 300 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Sales tax figures, City of Mankato

Lower use of the most-polluting plants Different coal-fired plants produce SO2 at different rates. Plants that produce more than two metric tons of SO2 per million kilowatthours of electricity generation were used less often in 2015.

Ohio, Indiana, and Kentucky had the highest SO2 emissions rates in 2014, but each state experienced substantial decreases in 2015. These states were among the top five states to retire coal capacity during 2015.

Crude oil stable

Global crude oil prices traded within a relatively narrow range at the start of the year compared with recent history. Brent crude oil prices increased by $1.09 per barrel from January 3 to settle at $56.56 on February 2. U.S. benchmark crude oil West Texas Intermediate increased $1.21 over the same period, settling at $53.54.

Brent and WTI average spot prices in January were both about $1 per barrel higher compared with December averages

Gas prices drop

The front-month futures price of reformulated blendstock for oxygenate blending (RBOB, the petroleum component of gasoline used in many parts of the country) declined 9 cents per gallon from Jan. 3 to settle at $1.53 on Feb. 2.

Fuel consumption up

Global liquid fuels consumption is expected to grow by 1.6 million barrels per day in 2017 and by 1.5 million barrels per day in 2018.

GDP projections

The projection for real oil-weighted world GDP growth is 2.7 percent in 2017 and 3 percent in 2018.

Many economic and financial data series point to improved future economic growth for both developed and emerging market economies, which supports the oil consumption growth outlook.

Sales tax collections Mankato (In thousands)

- 2015 - 2016

Includes restaurants, bars, telecommunications and general merchandise store sales.

Excludes most clothing, grocery store sales.

$427 $425

600 500 400 300 200 100 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Sales tax figures, City of Mankato

Lodging tax collections Mankato/North Mankato - 2015 - 2016 70000

$56,559 $52,400

52500 35000 17500 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: City of Mankato

Mankato food and beverage tax - 2015 - 2016 175000 140000

$58,935

105000

$57,100

70000 35000 0

J

F

M

Source: City of Mankato

A

M

J

J

A

S

O

N

D

C. Sankey

MN Valley Business • March 2017 • 25

Construction/Real Estate Residential building permits Mankato

Residential building permits North Mankato

- 2015 - 2016 (in thousands)

- 2015 - 2016 (in thousands)

18000

$1,207 $2,968

13500

4000

9000

2000

4500

1000

0

J

F

M

A

M

J

J

A

S

O

N

0

D

Source: City of Mankato

$452 $542

3000

J

F

M

A

M

J

J

A

S

O

N

D

Source: City of North Mankato

Information based on Multiple Listing Service and may not reflect all sales

Existing home sales: Mankato region - 2015 - 2016

Median home sale price: Mankato region - 2015 - 2016 (in thousands)

$153,500 $161,2500

250

300

214 192

240

200 150

180

100

120

50

60 0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Realtors Association of Southern Minnesota

0

J

F

M

A

M

J

J

A

S

O

N

D

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

— 2015 — 2016 5.5

- 2015 - 2016 40

5.0

15

30

4.5

11

4.1% 20

4.0 3.5

10

4.0%

3.0

J

F

M

A

M

J

J

A

S

O

N

D

Source: Freddie Mac

J

F

M

A

M

J

J

A

S

O

N

D

Source: Cities of Mankato/North Mankato

Commercial building permits Mankato

Commercial building permits North Mankato

- 2015 - 2016 (in thousands)

- 2015 - 2016 (in thousands) $202 4000 $1,211

12000 10000

3000

$1,744

8000

$1,279

6000 4000

2000 1000

2000 0

0

J

F

M

A

M

J

J

A

S

O

Source: City of Mankato

26 • March 2017 • MN Valley Business

N

D

0

J

F

M

A

Source: City of North Mankato

M

J

J

A

S

O

N

D

C. Sankey

Power generation

Gas Prices Gas prices-Mankato

— 2016 — 2017

5 4 $2.25

3 2 1 0

$1.39

J

F

M

A

M

J

J

A

S

O

Gas prices-Minnesota

N

D

— 2016 — 2017

5 4 3

$2.26

2 1 0

$1.45

J

F

M

A

M

J

J

A

S

O

Stocks of local interest Archer Daniels Ameriprise Best Buy Crown Cork & Seal Consolidated Comm.

Fastenal General Growth General Mills Hutchinson Technology Itron Johnson Outdoors 3M Target U.S. Bancorp Wells Financial Winland Xcel

N

D C. Sankey

Source: GasBuddy.com

Jan. 12

Feb. 8

Percent change

$43.67

$43.59 $121.68 $43.42

-0.2% +5.5% -1.7%

$53.09 $25.41 $49.63 $24.92 $62.00 $4.00 $62.92

-2.4% -3.0% +3.2% -0.1% +1.2% 0.0% +0.9% -10.1% -0.4% -10.8% +2.5% +1.9% -8.0%

$115.37 $44.15 $54.39 $26.20 $48.08 $24.95 $61.27 $4.00 $62.35 $35.38 $177.48 $71.32 $51.45 $39.25 $1.75 $40.79

$31.80 $176.74 $63.61 $52.76 $40.00 $1.61 $41.99

Total U.S. electricity generation from utility-scale plants averaged 11,150 gigawatthours per day in 2016. Forecast U.S. generation declines by 0.1 percent in 2017, then grows by 1.5 percent in 2018.

The share of U.S. total utility-scale electricity generation from natural gas will fall from 34 percent last year to an average of 32 percent in 2017 as a result of higher expected natural gas prices. The forecast natural gas share is forecast to rise slightly to 33 percent in 2018.

Coal’s generation share rises from 30 percent in 2016 to average 31 percent in both 2017 and 2018.

Nonhydropower renewables are forecast to provide 9 percent of electricity generation in 2017 and 10 percent in 2018. The generation share of hydropower is forecast to be relatively unchanged from 2017 to 2018, and the nuclear share declines slightly in 2018.

The U.S. residential electricity price averaged 12.3 cents per kilowatthour in January 2017 and is expected to average 12.5 cents/ kWh in the first quarter of 2017. EIA expects the annual average U.S. residential electricity price to increase by 3 percent in 2017 and by 2.4 percent in 2018.

Coal production drops

U.S. coal production is estimated to have declined by 158 million short tons (18 percent) in 2016, which would be the lowest level since 1978. EIA expects growth in coal-fired electricity generation to contribute to a 3 percent increase in coal production in 2017. Coal production is expect to increase by 1 percent in 2018.

Read us online!

+2.9% C. Sankey

MN Valley Business • March 2017 • 27

■

Agricultural Outlook

By Kent Thiesse

D

Farmers have big stake in foreign trade agreements

uring the 2016 presidential election, and even more so since the beginning of 2017, trade agreements between the United States and other countries have come under scrutiny. In late January, new president Donald Trump signed an executive order to end U.S. participation in the Trans Pacific Partnership trade agreement. President Trump has also indicated a desire to renegotiate the North American Free Trade Agreement, which governs foreign trade with Mexico and Canada. NAFTA and other U.S. trade agreements are very important for the export of many agricultural products and ultimately to farm profitability.

The TPP trade agreement was reached in 2015, involving 12 countries in North and South America and Asia, including the United States, Mexico, Japan, Vietnam, and Chile. The TPP agreement would have reduced tariffs on the export of U.S. products going to participating nations. Many of the Asian nations have been growing export markets for some U.S. agricultural products in recent years. However, the TPP agreement would have also reduced tariffs and duties on goods coming into the U.S. from other countries, which may compete with similar goods already being produced in the U.S. Concerns with TPP have been raised by many groups and political leaders, including some agriculture organizations, related to monetary policies, labor laws, and the lack of environmental regulations in some of the participating countries. Even if President Trump had not signed the executive order for the U.S. to withdraw from TPP, there were no guarantees that the TPP agreement would have passed Congress. Several congressional leaders, and other major 2016 presidential candidates, have expressed reservations about the TPP trade agreement in the past.

The NAFTA trade agreement with Mexico and Canada, which has been in place for 21 years, has been criticized quite extensively by the new administration.

The NAFTA agreement allows many goods and services to be traded back and forth between the participating countries without tariffs. President Trump and others have indicated the desire to renegotiate the NAFTA trade agreement. U.S. agriculture exports have grown from $9 billion per year to approximately $39 billion in the past two decades, since the NAFTA agreement was enacted.

The U.S. currently has a market-share of about 65 percent for ag products purchased by Canada and Mexico.

In 2015, the U.S. had an overall negative trade balance with Mexico of $58 billion, exporting $238 billion in in products and importing $295 billion in

28 • March 2017 • MN Valley Business

Mexican products. The two countries had an additional $52.4 billion in trade between the two countries surrounding various services, with the U.S. having a $9.2 billion surplus. In 2015, the U.S. sent $18 billion in ag products to Mexico, led by corn ($2.3 billion), soybeans, dairy products, pork and pork products, and beef (all between $1.1 to $1.4 billion). The U.S. imports of ag products from Mexico totaled about $21 billion in 2015, including fresh vegetables ($4.8 billion), fresh fruit ($4.3 billion), as well as wine and beer, snack foods, and processed fruits and vegetables.

Mexico is actually the third largest U.S. trade partner, trailing only China and Canada.

Trade relations with China are also of particular importance to the agriculture industry, with China being the largest market for U.S. agricultural products.

According to USDA data, U.S. exports to China peaked at $26 billion in 2012, and have declined slightly since then, primarily due to changes in the value of the U.S. dollar relative to China’s currency. In addition, China’s rapidly growing economy has slowed a bit in recent years. China is major buyer of U.S. soybeans, coarse grains, and feed products to support China’s growing livestock industry. In recent years, there has also been growing demand in China for U.S. dairy products, pork, and other food products.

Much of the recent discussion in the media and by political leaders has been how the U.S. is losing on trade agreements with other countries. While that may be true in some industries, it is not necessarily true in many segments of the agriculture industry.

According to the latest U.S. trade data, the U.S. is expected to export $129.7 billion in agricultural goods in fiscal year 2016, and import $113.1 billion, resulting in a $16.6 trade surplus. Despite slow growth in overall U.S. trade, the export levels of many agricultural products are expected to increase in the coming year, including exports of corn, soybeans, and wheat.

Approximately 47 percent of the total 2016 U.S. soybean production of 4.3 billion bushels is expected to be exported during the 2016-17 marketing year, with China being the largest customer. The U.S. accounts for approximately 40 percent of the international corn trade, with Japan being largest importer of U.S. corn. USDA is estimating total U.S. corn exports for 2016-17 at just over 2 billion bushels, which is about 15 percent of the total U.S. corn production of 15.1 billion bushels in 2016. U.S. wheat production in 2016 was 2.3 billion bushels, with about 42 percent of that total expected to be exported to foreign countries.

In addition to the large growth in grain exports in the past 20 years, there has also been significant

growth in the export levels of many consumer orientated products, many of them derived from agricultural production. This includes meats, processed meat products, dairy products, fruits, vegetables, nuts, oils, and beverages. Foreign exports of fruits, vegetables, and other horticulture related products are expected to total approximately $33 billion for 2016, with total U.S. exports of meat, dairy, and other livestock products close behind at about $25.6 billion. Mexico also purchased approximately 2 million metric tons of dried distillers grains from the U.S. in 2015-16, which is a key by-product of corn-based ethanol production in the U.S. The export of Minnesota agriculture and agriculture products totaled $7.35 billion in 2014, accounting for about one-third of the State’s total export dollars from all goods and services generated from sales to foreign countries. Minnesota ranked fourth in the U.S. in total agricultural exports in 2014, trailing only California, Illinois, and Iowa. Soybeans are the largest are the largest Minnesota ag export, with whole soybeans and soybean meal accounting for 32 percent of the total value of the State’s ag exports. Soybean exports are followed by corn (13 percent), pork (11 percent), and animal feed (11 percent) in value for Minnesota ag export products.

Lead by soybean purchases from Minnesota, China is the biggest purchaser of Minnesota’s agricultural products, purchasing 19 percent of the State’s ag products, followed closely by Canada (14 percent) and Mexico (13 percent).

The impact of trade agreements and the levels of agricultural exports not only varies by commodity, but also varies by different areas of the U.S. For example, Minnesota had total agricultural cash receipts of just under $20 billion in 2014, with agricultural exports accounting for nearly 39 percent of the total. According to the same USDA trade report, agriculture exports accounted for approximately 36 percent of total U.S. agriculture receipts in 2014. Of the major U.S. agricultural states, the most dependent on export markets in 2014, expressing the value of ag exports as a percentage of total ag receipts were North Dakota (52 percent), Illinois (48 percent), and California, Indiana, and Ohio (all at 44 percent). The least export dependent States were Texas (26 percent), Kansas and Nebraska (both at 29 percent).

Iowa was similar to Minnesota, with an estimated 37 percent of gross cash receipts being derived from the value of ag exports.

Trade negotiations are very complex, and usually take years to develop. Many times it is not just economic issues that are difficult to negotiate with other nations, but also labor, environmental, and social issues that may vary among the negotiating countries. It is probably far too early to predict dire consequences to the U.S. from any renegotiation of trade deals under NAFTA or with China, or with any other country, and we should remember that there are possibilities for new trade deals to be developed between the U.S. and other countries.

However, we need to recognize that the agriculture industry, and ultimately farm operators and rural communities, have a lot to gain or lose, depending on the outcome of future U.S. trade relations and trade deals with our foreign partners.

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

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

Agriculture/ Agribusiness Corn prices — southern Minnesota

(dollars per bushel)

— 2016 — 2017

8

$3.20

6 4 2

$3.18

0

J

F

M

A

M

J

J

A

S

O

N

D

Source: USDA

Soybean prices — southern Minnesota

(dollars per bushel)

— 2016 — 2017

20 16

$9.49

12 8

$8.12

4 0

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

100 85

$70.07

70 55

$63.61

40 25

J

F

M

A

M

J

J

A

S

O

N

D

Source: USDA

Milk prices

Minimum prices, class 1 milk Dollars per hundredweight

— 2016 — 2017 25 22

$19.25

19 16

$15.91

13 10

J

F

M

A

M

J

J

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 2017 • 29

Minnesota Business Updates

■

■ 3M has strong earnings 3M Co, the maker of Scotch tape and Post-it notes, reported better-than-expected quarterly profit, as the company kept a tight lid on costs.

The company, which gets more than 60 percent of its revenue from outside the United States, has been restructuring its business through divestures and layoffs in an effort to reduce expenses.

3M’s operating expenses fell 2.3 percent in the fourth quarter ended Dec. 31.

St. Paul, Minnesota-based 3M reaffirmed its 2017 earnings forecast of $8.45 to $8.80 per share and organic local currency sales growth of 1 percent to 3 percent.

Net income attributable to the company rose to $1.15 billion, or $1.88 per share, in the quarter, from $1.04 billion, or $1.66 per share, a year earlier.

Net sales fell 0.4 percent to $7.33 billion.

■ Target trims agenda After sales and traffic continued to slide during the holidays, Target Corp. is scaling back big portions of its innovation agenda to double down on its core business, according to the Star Tribune.

The Minneapolis-based retailer has killed Goldfish, a secretive e-commerce start-up it green-lighted a year ago, and has shelved a prototype for a robot-infused

store of the future that was slated to soon be built, according to four sources familiar with the matter.

Other smaller projects from the innovation team also have been eliminated or reduced in recent weeks.

The cutbacks have left some within the company unsettled about Target’s long-term plans for growth and innovation, especially as more consumers are flocking to Amazon.com. The online behemoth is known for innovation, including its one-hour Prime Now delivery service and a new store concept without registers that it recently opened in Seattle.

■ General Mills turns to kale General Mills, facing sluggish sales as consumers seek less processed products, is turning to a foodie favorite to help snap a slump weighing down the U.S. packaged food industry.

The maker of Cheerios and Progresso soup, which has seen sales fall in 12 of the last 13 quarters, is leading a $6 million funding round for Rhythm Superfoods, an Austin, Texas-based startup best known for its kale chips. It’s the latest investment from General Mills 301 Inc., the venture fund launched in 2015 to put money into food startups capitalizing on the shift in eating trends.

■ Best Buy’s porn controversy Best Buy is at the center of a controversy of having

Employment/Unemployment Initial unemployment claims Nine-county Mankato region Major November Industry ‘15 ‘16 Construction Manufacturing Retail Services Total*

640 473 63 2,996 1,475

Local non-farm jobs Percent change ‘14-’15

738 261 46 2,921 1,337

+15.3% -45.0% -27.0% -2.5% -9.4%

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.

Minnesota initial unemployment claims Major Industry Construction Manufacturing Retail Services Total*

November ‘15 ‘16 12,355 5,871 1,443 6,707 26,376

12,141 4,599 1,482 6,220 24,442

- 2015 - 2016

Nine-county Mankato region

129,315

133000 122000 111000 100000

J

F

M

A

M

J

J

A

S

Minnesota Local non-farm jobs

Percent change ‘14-’15 -1.7% -22.0% +2.7% -7.2% -7.3%

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.

30 • March 2017 • MN Valley Business

O

N

D

- 2015 - 2016

(in thousands)

2,924

3000 2000 1000 0

J

F

M

A

M

J

J

A

S

O

N

D

submitted to an FBI agent a hard drive evidencing child pornography. The drive is from a faulty computer, which belongs to Dr. Mark Rettenmaier, a California gynecologist that was under repair by Best Buy’s Geek Squad. According to the agent who is now arguing that the computer had once stored images known as the “Jenny” shots, Rettenmaier has a case to answer. In fact, the agent went as far as obtaining a search warrant for the doctor’s house to seek for more evidence.

Surprisingly, at the time of searching the physician’s computer, nobody knew that the company’s repair technicians routinely did so in search of files that would earn them as much as $500. They were literally FBI informants given that Geek Squad technician John “Trey” Westphal was behind the identification of the nude image on Rettenmaier’s computer. However, Rettenmaier who is now fighting charges of child porn possession maintains that the FBI conducted an illegal search.

Whether or not the technician found and presented vital information regarding child pornography to the FBI, the whole operation has raised more questions than solutions.

■ Good GGP report General Growth Properties posted its quarterly earnings data. The real estate investment trust reported $0.43 EPS for the quarter, meeting analysts’ consensus estimates of $0.43. GGP had a net margin of 52.33 percent and a return on equity of 15.19 percent.

The company earned $610.30 million during the quarter, compared to analyst estimates of $602.50

million. During the same period in the prior year, the firm earned $0.20 earnings per share. The business’s quarterly revenue was down 5.3 percent on a year-overyear basis.

■ Retailers fight Trump plans More than 100 retailers including Wal-Mart and Target as well as key trade associations are launching a new coalition aimed at fighting a Republican proposal on how imports get taxed, which they believe would harm their businesses.

The National Retail Federation, along with the American International Automobile Dealers Association, the National Grocers Association and others are joining forces to form Americans for Affordable Products, which will run a campaign to educate consumers and show lawmakers that the socalled Border Adjusted Tax plan would lead to higher prices of as much as 20 percent on everyday items including clothing, food and even gas.

The diversified group, which also includes such companies as Nike, Best Buy, luxury conglomerate LVMH and Dollar General, is trying to make their opposition heard even while Congress and the president try to sort out exactly what adjustments to put forth.

Congressional Republicans want to eliminate tax incentives that encourage U.S. companies to move overseas, sharply cut the corporate tax rate to 20 percent from 35 percent, and encourage more factory output at home. But opponents say the plan would have a harmful rippling effect, causing companies to even lay off workers.

Employment/Unemployment Local number of unemployed

- 2015 - 2016

Nine-county Mankato region

(includes all of Blue Earth and Nicollet Counties)

8000

4,841

6000

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

4000 2000 0

Mankato/North Mankato Metropolitan statistical area

J

F

M

A

M

J

J

A

S

O

N

2015

2016

2.2% 58,862 1,297

2.4% 57,441 1,439

D

Unemployment rates Counties, state, nation Minnesota number of unemployed

- 2015 - 2016

200000 150000

96,182

100000 50000 0

J

F

M

A

M

J

J

A

S

O

N

D

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

November 2015 2.2% 3.2% 3.6% 3.5% 2.8% 2.8% 3.1% 3.5% 4.1% 2.9% 3.1% 4.8%

November 2016 2.5% 3.2% 3.8% 3.7% 3.2% 3.2% 3.2% 3.3% 4.0% 3.0% 3.2% 4.4%

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

MN Valley Business • March 2017 • 31

The CRITICAL Mankato WorkforceGreater Shortage

Talent Task Force Powered by:

#katotalent

I

undertake coordinated actions that Powered by:not only fill normal job vacancies but also meet the growth of our regional economy. The task force unveiled it as the guiding document at the January 17th Workforce Talent Summit.

With more than 160 businesses & community leaders participating in the strategic work sessions, it was evident the need for effective solutions is great. Thank you to everyone who attended!

t’s been well chronicled that our economy faces a looming workforce shortage. This is perhaps one of the most critical and daunting of economic development challenges our region will ever face.

Over the next five years, employers – already struggling to fill open positions – will see this challenge accelerate due to the confluence of an aging workforce, a diminishing worker pool and the need to fuel an anticipated 20% growth in new employment due to economic growth.

Greater Mankato Growth

With a laser focus on our region’s future, Greater Mankato Growth convened a talent task force of 13 key business and community leaders charged with initiating a collective community response, stemming from a framework of strategic priorities. The Greater Mankato Talent Task Force has developed a framework, reviewed by the Greater Mankato Growth, Inc. Board of Directors and a focus group of business executives, whereby our community can

Greater Mankato Growth, Inc. President and CEO, Jonathan Zierdt said “The looming workforce shortage cannot be taken on by any one private, public, or community organization.

This must be a communitywide endeavor. The Greater TALENT TASK FORCE VISION Mankato community will The community can VISION (what future dothewe want to achieve?): secure required need to coordinate its efforts talent to meet the looming The community can secure the required talent employment demands & fuel to fill job vacancies and the maintenance & growth of our to meet the looming employment demands regional economy. increase the overall pool of & fuel the maintenance & growth of our talent.” He went on to say Workforce Demographics regional economy.

Document & communicate changes in “Proactive and purposeful workforce demographics over the next 10 years. talent attraction and retention Workforce Talent MISSION (why do Preparation we exist?): will make the biggest impact Promote ongoing talent development & lifelong learnEngage the community strategies action ing with a focus on highin demand skills & jobs& in the region. plans on the workforce shortage. which create greater clarity & alignment of Competitive Compensation & Benefits By participating in this employer / employee expectations toMankato increase Research & publish current data on the Greater area the summit, attendees were cost ofGreater living relative toMankato earnings in the upper Midwest. overall talent pool & enhance long-term empowered to lead and Innovative Recruitment & Retention Initiatives talent retention.

Identify & promote innovative best practices in recruitment & retention. help direct the future of our Public Policy regional workforce.”

Shape public policy encouraging the development of talent.

Talent Task Force

Powered by: • general appeal of thee commuunity • fuurther the willigness to investt • beinng done well; enhancee even fuurther (additioonaal entertainment, make it “cool” to live here)

Livab bility • Qua alityy of Life e

TALENT TASK FORCE VISION

The community can secure the required talent to meet the looming employment demands & fuel the maintenance & growth of our regional economy.

MISSION (why do we exist?): Engage the community in strategies & action plans which create greater clarity & alignment of employer/ employee expectations to increase the overall talent pool & enhance long-term talent retention.

Workforce Demographics Document & communicate changes in workforce demographics over the next 10 years.

Workforce Talent Preparation Promote ongoing talent development & lifelong learning with a focus on high demand skills & jobs in the region.

Competitive Compensation & Benefits Research & publish current data on the Greater Mankato area cost of living relative to earnings in the upper Midwest.

Jonathan Zierdt, President & CEO of Greater Mankato Growth, Inc. addresses the attendees at the January 17th Workforce Talent Summit at South Central College, North Mankato Campus.

• general appeal of thee commuunity Innovative Recruitment & Retention Initiatives Identify & promote innovative best practices in recruitment & retention.

Public Policy Shape public policy encouraging the development of talent.

Board_v1.indd 1

• fuurther the willigness to investt • beinng done well; enhancee even fuurther (additioonaal entertainment, make it “cool” to live here)

Livab bility • Qua alityy of Life e

32 • march 2017 • MN Valley Business

TALENT TASK FORCE MISSION (why do we exist?):

1/10/17 4:31 PM

The Workforce Talent Summit is open to all business professionals and community members of Greater Mankato. Registration is strongly encouraged but not required to help the task force better prepare for the event.

The second installment of the Workforce Talent Summit will be held on Tuesday, March 28 at South Central College from 2 to approximately 4:30 pm. You are invited to join the collective work that’s already been started, and more importantly engage and mobilize with the broader community and business professionals to participate in developing and advancing solutions in areas where you are most able to help. This effort needs everyone’s insight, resources and influence to approach this specific community visioning work.

To register for the second workforce talent summit where the work groups will reconvene, please register by Friday, March 24th at greatermankato.com/talent.

VISION VISION

The Thecommunity communitycan can secure securethe therequired required talent talentto tomeet meetthe thelooming looming employment employmentdemands demands&&fuel fuel the themaintenance maintenance&&growth growthof ofour our regional regionaleconomy. economy.

Workforce WorkforceDemographics Demographics Document Document&&communicate communicatechanges changesin in workforce workforcedemographics demographicsover overthe thenext next10 10years. years.

Workforce WorkforceTalent TalentPreparation Preparation Promote Promoteongoing ongoingtalent talentdevelopment development&&lifelong lifelonglearnlearning ingwith withaafocus focuson onhigh highdemand demandskills skills&&jobs jobsin inthe theregion. region.

Competitive CompetitiveCompensation Compensation&&Benefits Benefits Research Research&&publish publishcurrent currentdata dataon onthe theGreater GreaterMankato Mankatoarea area cost costof ofliving livingrelative relativeto toearnings earningsin inthe theupper upperMidwest.

Midwest.

Innovative InnovativeRecruitment Recruitment&&Retention RetentionInitiatives Initiatives Identify Identify&&promote promoteinnovative innovativebest bestpractices practicesin inrecruitment recruitment&&retention. retention.

Public PublicPolicy Policy Shape Shapepublic publicpolicy policyencouraging encouragingthe thedevelopment developmentof oftalent. talent.

••general eecommu uunity generalappeal appealofofthe the commu nity VISION (what future do we want to achieve?): The community can secure the required ••fufu uurther rtherthe thewilligness willignesstotoinvest investtt talent to meet the looming employment demands & fuel the maintenance & growth Greater Mankato ••bein nnggdone eeeven uurther oona aallentertainment, bein donewell; well;enhance enhance evenfufu rther(additio (additio na entertainment,make makeitit“cool” “cool”totolive livehere) ofhere) our regional economy.

Talent Task Force

MISSION (why do we exist?): Engage the community in strategies & action plans which create greater clarity & alignment of employer / employee expectations to increase the overall talent pool & enhance long-term talent retention.

Livab bbility aality yy of ee Livab ility •• Qua Qua lity of Life Life

TALENT TASK FORCE STRATEGIC COMMITMENTS (specific areas where efforts will be concentrated)

Workforce Demographics

Workforce Talent Preparation

Competitive Compensation & Benefits

Document & communicate changes in workforce demographics over the next ten years.

Promote ongoing talent development & lifelong learning with a focus on high demand skills & jobs in the region.

Research & publish current data on the Greater Mankato area cost of living relative to the earnings in the upper Midwest.

Identify & promote innovative best practices in recruitment & retention.

Shape public policy encouraging the development of talent.

Action Plan:

Action Plan:

Action Plan:

Action Plan:

Action Plan:

•

•

•

•

• •

•

•

•

Complete gap analysis on demographic data to determine skill set / job expectations - current & projected Shape employer, community & parent expectations & “state of readiness” through training & communications (e.g. generational, diversity, etc.)

Broad career pathway and curriculum & exposure (career life cycle): • Career counseling • YEAP (apprenticeships) • High school career pathways • Internships • Business tours SKill-oriented programming in higher education

• •

•

Assemble a single, shared source of reliable, credible cost of living data Assemble single, shared source of reliable, credible pay / earnings data Spotlight breadth of employer provided benefits & community assets as components of total compensation & prosperity Create an accessible “hub” to house & promote this information • Includes employment opportunities

•

•

• • • •

•

Leverage what employers & community offers that work to attract and retain workforce.

Remove financial hurdles: • Forgive student loans • Tuition reimbursement • Scholarships Eliminate access barriers: • Transportation (e.g. rideshare, busing) • Child care (after school programs) Boomerang strategy Testimonials & success stories Mankato mentors for new community members Affinity groups connecting to & sharing information (e.g. rental properties, child care = our own version of Yelp) Employment brand; ecosystem of career growth

Public Policy

• •

Health Insurance Labor issues / regulations (work-based learning) Bonding Small / niche business startup & support

The above action plans are examples of initial thoughts and will need to be built out further by each of the work teams.

MN Valley Business • march 2017 • 33

Greater Mankato Growth

• •

Assemble a single, shared source of reliable, credible demographic data: • Workforce - current & projected • Jobs/Skills - current & projected Distribution & open access Understand differences in access to & equity in labor force participation.

Innovative Recruitment & Retention Initiatives

Growth in Greater Mankato RIBBON CUTTING

RIBBON CUTTING

RIBBON CUTTING

JP Fitness 5 Civic Center Plaza, Mankato

SouthPoint Financial Credit Union 1800 Commerce Drive, Suite A, North Mankato

Cambria Gallery 1850 Adams Street, Suite 420, River Hills Mall, Mankato

PINNACLE AWARD

RIBBON CUTTING

Vine Faith in Action 421 East Hickory Street, Mankato

Clinical Science Building Minnesota State University, Mankato 150 South Road, Mankato

Greater Mankato Growth

Cavaliers

Cavalier Calls on the Newest Greater Mankato Growth Members

Arizona Olive Oil Company 521 North Riverfront Drive, Mankato arizonaoliveoilco.com

Good Counsel Wealth Management 40 Good Counsel Drive, Mankato weilage.com

Hope Interfaith Center 114 Pohl Road, Mankato hopeinterfaithcenter.com

Complete Nutrition 121 Sioux Road #101, Mankato completenutrition.com

34 • march 2017 • MN Valley Business

5:00 - 7:00 pm March 7 April 4 May 2 June 6 July 11 August 1 September 5 October 3 November 7 December 5

Pub 500 Discover Chiropractic, Body Concepts & Hatanpa Insurance Agency - State Farm iSpace Furniture & Tailwind Group KEYC News 12 and Fox 12 Mankato Unique Specialty & Classics Snell Motors Cambria MRCI - East Park Mayo Clinic Heath System Courtyard by Marriott Hotel & Event Center

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

Profinium, Inc. M² Lofts Kato Insurance Agency Advanced Pain Management AT&T Blethen, Gage & Krause Ecumen Pathstone Living True Facade Pictures Old Main Village City of Eagle Lake

2017 Business Before Hours Sponsored by:

January Business After Hours hosted by CliftonLarsonAllen

January Business Before Hours hosted by New Perspective Senior Living

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.

Greater Mankato Growth MN Valley Business • march 2017 • 35

JOIN US AT

GREATER MANKATO

AT THE CAPITOL WEDNESDAY, MARCH 8, 2017 Join Greater Mankato Growth as we partner with the Minnesota and Rochester Chambers of Commerce to hold a joint event that will be bigger, better and will have more impact than ever.

Greater Mankato Growth

To register and for more information visit greatermankato.com/capitol.

March 9, 2017 11:30 am - 1:00 pm

Register today at: greatermankato.com/future Honoring our Volunteers of the Year: David Wittenberg, Sandra Oachs, Betty Ouren

36 • march 2017 • MN Valley Business

what is the

MANKATO

?

SPORTS COMMISSION

I

n last month’s article, we highlighted the grant opportunities for new sporting events to help bolster the economic impact of our region’s sports tourism economy. Last fall, you most likely heard about the Sports Commission and its efforts to extend our one-half cent local option sales tax as a partial funding mechanism for improvements to existing and possible construction of new regional recreation facilities. While many people have heard of us, we routinely get asked, “What is the Mankato Sports Commission?”.

WHAT

The Mankato Sports Commission was established in 2014 after a multi-year process and assistance from the Rochester (MN) Amateur Sports Commission. It is a division of Visit Mankato, the local Convention & Visitors Bureau, which is housed under the umbrella of Greater Mankato Growth, Inc. The primary purpose is to increase the economic impact of sports in our region. People who travel to Mankato for a sporting event (tournament, game, camp, etc.) spend money on everything from sports drinks to hotel rooms. They eat at our restaurants, shop at our stores and fill up the family vehicle at a gas station before heading home. When out-of-towners travel here for a sporting event, they are fueling our local economy in numerous ways. We work with a wide array of organizations and often provide support at events as opposed to owning/operating events. That support comes in a variety of ways including grant dollars, marketing assistance, research, securing venues, hotel room blocks and more.

I have been the Sports Commission Director since February 2015. During that time, we have expanded our reach in terms of the number of events we support and continue to pursue others that can provide a boost during those weekends that are historically slower in terms of hotel occupancy. The commission itself is currently comprised of 18 volunteers who serve a three-year term with the opportunity to be reappointed for a second term. These volunteers come from varying professional backgrounds, but all share the common traits of a love for sports and a desire to make the Greater Mankato area a better

place. The expertise and guidance they bring from their personal and professional lives in areas like marketing, communications and sales is extremely valuable. Go to the “About Us” tab on our website at MktoSports.com and click “Our Commissioners” to see the names and faces of these generous community members.

WHY

Last month we shared our goal of filling the “slower” weekends through our grant program. This is just one of the goals of the commission – it’s ‘up to bat’. There are many other initiatives ‘on deck’ and ‘in the hole’. With the recent launch of the website, our vision is to knock that one out of the park and have it be the go-to resource or “hub” for all things sports-related for our community, as well as visitors and other organizations. Want to find out what sporting events are going on in town on a Saturday afternoon? Check out our calendar. New to town and wondering how to sign up your daughter for softball?

Check out the local organization’s pages. In addition to the website, we are also actively working with local organizations to offer support and find out what they’d like to see from us in the future.

With communication being a current focal point for the commission, we ask that you check out our website at MktoSports.com and become a member. You will find instructions in the “Become a Member” tab of the home page menu. If you are part of an organization that may benefit from our assistance, visit the website and you will find contact information for me or our Commissioners. Or better yet, introduce yourself when you see me at a youth sporting event, a Minnesota State University, Mankato Mavericks hockey game or my favorite place to relax on a summer evening - the “Frank” - for a MoonDogs game.

@MktoSports

#MktoSports

MktoSports.com

Dave Wittenberg, Chair

Brett Skilbred, Vice-Chair

Chris Willaert, Director

MN Valley Business • march 2017 • 37

Greater Mankato Growth

WHO

By: Chris Willaert, Sports Commission Director

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