Forge December/January 2018-2019

Business

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Health

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E d u c at i o n

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Government

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Agriculture

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Philanthropy

december/january

MINNESOTA TRUCKING INDUSTRY KEEPS MOVING FORWARD S p e cia l R e p o r t

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Volume 2, Issue 6 December 2018/January 2019

Businesses at a Crossroads In one of my favorite scenes from “Alice in Wonderland,” young Alice comes to a crossroads where, for the first time, she meets the ever-smiling Cheshire Cat. “Excuse me, sir,” Alice says, “but could you tell me which road I should take from here?”

“It depends on where you want to get to,” says the Cat. “Oh, it doesn’t matter where I get to,” says Alice.

“Then it really doesn’t matter which road you take,” says the Cat. I think of that scene at the end of every year and the beginning of every new year because, for all of us the new year is, in very many ways, like standing at a crossroads with our past behind us and our future, individually and collectively, stretching out before us.

The difference between our crossroads and that of Alice is that it matters very much which road we take because it matters very much where we are headed.

So how do we know which road — or roads, for there are likely to be many — we should take in the upcoming year?

One way to decide which road to take is to remember our past. Perhaps that is why at this time of year we often think of Janus, the figure in ancient Roman mythology after whom the month of January is said to have been named. Janus, the god of beginnings and transformations, is often depicted as having two faces — one that looked forward into the future and one that looked back to the past.

This issue of Forge does just that 4 |

with a new occasional feature that we are calling “Looking Back/Looking Forward” — a feature that looks at the past of a particular business in Steele County even as that business is taking a new step in its future. This issue we look at Owatonna’s own Jostens.

Our cover story, “Minnesota Trucking Industry Keeps Moving Forward,” looks at what’s in store for the trucking industry — an industry that quite literally is dependent on which roads it takes. Writer James Figy also looks at some of the difficulties — roadblocks, you might call them — facing the industry.

Writer Grace Webb looks at some aspects of business that are in all of our immediate futures when she looks at various seasons in “Preparing for a Minnesota Winter,” “Time for Taxes” and “Worker Shortage Affects Seasonal Jobs.”

And writer Annie Granlund — new to Forge magazine, but certainly not to Steele County — joins me in a series of articles updating the progress of the renaissance, if you will, of downtown Owatonna. It’s truly a time when the past and the future intersect.

As always, the issue is chock full of other content, including the insights of our various columnists whom we know you will enjoy.

Finally, you may have noticed that we bade goodbye to our former editor James Anderson. James, an old friend and colleague of mine, has moved on and we’re sorry to see him go. We wish him good luck and godspeed as he takes his steps into the future.

PUBLISHER: Tom Murray EXECUTIVE EDITOR: Jeffrey Jackson CONTRIBUTING WRITERS: James Figy Grace Webb Annie Granlund COVER DESIGN: Brendan Cox PAGE DESIGN: Tri M Graphics ADVERTISING MANAGER: Ginny Bergerson ADVERTISING SALES: Kyle Shaw Cash Alladin Crystal Hobart Kristie Biehn Pam DeMorett ADVERTISING ASSISTANT: Lisa Richmond CIRCULATION DIRECTOR: Tez Zernechel For editorial inquiries, contact Jeffrey Jackson at 507-444-2371 or jjackson@owatonna.com For advertising inquiries, please call 507-444-2386 or email gbergerson@owatonna.com

FORGE Magazine is published by

Southern Minn Media 135 West Pearl St. Owatonna, MN 55060

keeping steele strong

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LOOKNG BACK/LOOKING FORWARD

DEC/JAN

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AROUND THE WATER COOLER HEALTHY WORKPLACE FROM THE FOUNDATION PARTNERS FOR GROWTH

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ECONOMIC DASHBOARD FROM THE CHAMBER KNOW THE LAW LOCAL LEARNING

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DOWNTOWN REPORT

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SPECIAL REPORT

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CHANGE IN HANDS, CHANGE IN PLANS

SPECIAL REPORT

MINNESOTA TRUCKING INDUSTRY KEEPS MOVING FORWARD

MINIMIZER PARTNERS WITH RACING SERIES TO MAKE TRUCKING COOL

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WORKER SHORTAGE AFFECTS SEASONAL JOBS

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SPECIAL REPORT

PREPARING FOR A MINNESOTA WINTER www.forgesteelecounty.com | 5

LOOKING BACK/LOOKING FORWARD

CHAPTERS OF A SUCCESS STORY FOR 12 DECADES, JOSTENS HAS BEEN A PART OF OWATONNA BUSINESS AND INDUSTRY

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hen it was announced in early November that Jostens, the class-ring king, was being sold by its parent company, Newell Brands, to Platinum Equity, a private investment firm based in Los Angeles, for $1.3 billion, thoughts of many turned not only to the future of the company, but also to its past.

Consider the words of Louis Samson, a Platinum Equity partner, in a statement he released at the time of the sale: “For more than a century, Jostens has helped people commemorate the most important moments in their lives, from high school graduations to NBA championships. It’s an iconic brand with passionate employees and a strong connection to its customers.”

What many may not realize is that that iconic brand that has been at it for more than a century got its start right here in Steele County, specifically, in Owatonna.

The story begins in 1897 when Otto H. Josten opened a jewelry and watch repair shop on the upper floor of the Metropolitan Opera House in downtown Owatonna.

Josten was born in Wisconsin and learned the jeweler’s craft in

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Owatonna’s own Jostens designed and manufactured the New England Patriots Super Bowl ring pictured here in 2015, which celebrated the team’s fourth championship. (Photo courtesy of Jostens, Inc.)

During World War II, with the shortage of gold available to make jewelry, Jostens cut back on jewelry production and turned to producing war supplies. Before the war’s end, the company would earn the coveted Army-Navy “E” Award — an honor presented to companies whose production facilities were regarded as achieving “Excellence in Production” of war equipment — in 1944 for manufacturing such equipment as the Norden bombsight. (Press file photo)

Milwaukee and LaCrosse. He first was in partnership with a jeweler in Northfield, and a few years later, he established his own store in Clarinda, Iowa. After less than two years, he sold that store and set up another one in Iowa City, Iowa.

In 1883, he was offered a position with a well-established business in Owatonna. The business was soon destroyed by fire and Josten went into partnership with a traveling jewelry salesman.

With that background, Josten rented his office space and started his own jewelry business. The business, which grew slowly but steadily over the next 20 years, was incorporated as Josten Manufacturing Co. and continued its watch and jewelry repair while adding the manufacturing of pins,

emlems, rings and other jewelry to commemorate special events.

By the 1920s, Josten had been joined in the business by his son, Bob. In 1922, the younger Josten introduced his father to Daniel C. Gainey, a high school teacher and coach he had met.

Gainey was offered a job as a salesman for the company, accepted it, and began an association with Jostens that would continue until Gainey’s death in 1979.

That association would see the company become a major manufacturer of scholastic and commemorative products.

Otto Josten’s business was booming by the mid-1920s, much of it due to the sales skills of Gainey and the other sales people. As the

school jewelry business grew, the percentage of business coming from its original watch and jewelry repair business declined.

Finally, in 1930, the jewelry and watch repair business was spun off into a separate company. Also in that year, the company moved from the Opera House to a newly built headquarters on Broadway in downtown Owatonna.

The company continued to grow as Gainey moved from sales representative to sales manager and finally to chairman and president.

Josten had retired from the dayto-day running of the company in 1925, turning the job over to Gainey, though Otto Josten remained as president of the company until 1935.

The company continued to prosper www.forgesteelecounty.com | 7

throughout the Great Depression, but the 1940s and the entry of the United States into World War II brought major changes to Jostens.

expand its facility size, increase the number of hours workers were on the job and increase the number of women workers.

Because of the war effort, the U.S. government cut by 75 percent the amount of gold available to Jostens to make its jewelry. To compensate, the company cut back jewelry production and turned to producing war supplies. Before the war’s end, the company would earn the coveted Army-Navy “E” Award — an honor presented to companies whose production facilities were regarded as achieving “Excellence in Production” of war equipment — in 1944 for manufacturing such equipment as the Norden bombsight.

It was in 1951 that Jostens went into the business of producing high school yearbooks. In 1953, the company made an agreement with Western Publishing and Lithography to operate a joint printing plant in Missouri. In 1960, Jostens purchased a publishing company in Topeka, Kansas.

Increased production of war supplies caused the company to

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In 1960, the company also opened a plant in Tennessee to produce graduation announcements.

Also during the 1950s, the company began acquiring other businesses. When it purchased an Illinois company making

scholastic jewelry in 1959, the scholastic award business was moved from Owatonna to Illinois.

In 1956, the company also opened a second ring production facility in Santa Barbara, California, and in 1958, the company began making diplomas.

Beginning with the very first Super Bowl, Jostens has been involved in making Super Bowl rings. The story is told — perhaps apocryphal, perhaps not — of the very first Super Bowl ring, a ring that is said to have begun with a phone call from Green Bay Packers Coach Vince Lombardi.

Lombardi, it is said, wanted a ring that would commemorate the victory of that championship game, and so he called a company that, by 1967, already had a long

Jostens artists from the 1930 are hard at work. The company, which began in Owatonna in 1897, at one time employed about 800 people at its Owatonna operation. (Press file photo)

SPECIAL REPORT tradition of innovation and service.

That company was Jostens.

Over the years, the rings have evolved.

That first championship ring, made for the Packers, was 1 karat and had a single stone. The ring manufactured in 2017 for the New England Patriots after their victory in Super Bowl LI, by way of contrast, was considerably larger. Five karats with 283 diamonds.

The championship rings that Jostens now makes — not just for the NFL, but also for the World Series champs, the NBA, the NHL and others — actually begin in a design studio in Montreal, Canada.

Once accepted, the design goes to a couple of facilities — a tooling facility in Eagan, Minnesota, and a manufacturing plant in Denton, Texas.

The company’s customer service department — including the customer service team that handles the Champ Division that produces the Super Bowl rings — in based in Owatonna.

Over the years, throughout the 1960s and `70s, plants for various operations were opened throughout the United States and outside the United States in Canada and Venezuela.

Gainey remained in charge until his retirement in 1968.

By that time, Jostens had nearly 800 employees working in Owatonna. In 1969, many corporate employees were moved to leased offices in Minneapolis. In 1975, a new corporate headquarters was opened in Minneapolis.

Visant Holding Corp. In October of that year, Jarden Corp. purchased Visant , thus giving Jarden access to Jostens.

In a statement released by Platinum Equity upon its purchase of Jostens in early November, Jostens CEO Chuck Mooty spoke positively of the sale.

“I am confident that Platinum Equity is the perfect partner to help Jostens write the next chapter of a success story that goes back more than 100 years,” Mooty said.

“They’ll bring new resources and a fresh perspective, backed by a track record of helping companies like ours thrive as a standalone business.”

Jostens’ net sales for 2017 were $768 million.

In 2015, the company was owned by

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Around the

Water Cooler

Brian and Sue Stendel receive Child Foster Care Award On Friday, Sept. 28 Brian and Sue Stendel received the Child Foster Care Award from the Minnesota Social Service Association-Region 9. The Stendel’s were recognized for their 35+ years serving foster care youth in Southern Minnesota.

The Minnesota Social Service Association holds regional fall conferences each year that provides continuing education for human service professionals in that region. The Stendel’s were recognized during this event.

Free Clinic of Steele County receives generous contribution from Federated Insurance Free Clinic of Steele County recently received a generous $3,000 donation, courtesy of Federated Insurance in Owatonna. The Free Clinic began offering dental services last fall, thanks to the generosity of the Nelson family, and added support from Allina Health and Federated Insurance, who raised $36,000. With the need growing, Federated Insurance’s recent contribution will allow the Free Clinic to fully equip the second dental chair they recently received, allowing them to see more patients.

The Free Clinic of Steele County offers basic dental services, such as: dental fillings, extractions, X-Rays and dental cleanings.

They also offer basic dental hygiene education. Due to the increasing demand of dental services, the second chair will allow the Free Clinic to see more patients in a shorter amount of time.

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Federated Insurance makes gift to the Owatonna Foundation Federated Insurance recently contributed $50,000 to the Owatonna Foundation to assist the Foundation with their efforts to fund capital projects related to the community, arts, recreation, and education. The Owatonna Foundation, now in its 60th year, serves Owatonna and its environs by providing capital grants. The Foundation also funds both traditional and non-traditional scholarships for 2 year colleges and technical schools.

“The Owatonna Foundation is involved in the capital projects that will help attract and retain quality people to the area,” said Federated Insurance Chairman and CEO Jeff Fetters. “Our partnership with the Owatonna Foundation dates back 50 years, and I’m proud to keep the tradition and commitment to ensuring our local community is strong and vibrant.”

Southern Minnesota Initiative Foundation awards $73,400 in grants Southern Minnesota Initiative Foundation (SMIF) recently approved eight grants totaling $73,400 to support small towns of 5,000 or less in SMIF’s 20-county region.

The Small Town Grants Program seeks to build sustainable and vibrant communities by engaging community members, enhancing existing leadership and creating opportunities for new leadership to emerge.

Rather than funding one-time projects, the program seeks to build collaborative efforts and partnerships that will perpetuate collaboration for future work.

“For the past 32 years, we’ve seen people come together to enhance their communities,” said SMIF President and CEO Tim Penny. “SMIF’s Small Town Grants program is intended to put air under the wings of some of those ideas, whether the community needs help with strategic planning, funds to implement a project or a stipend to support a leadership development program.”

For more information on SMIF’s grantmaking, contact Jennifer Heien at jenniferh@ smifoundation.org or 507-214-7040.

Janita Paulson Joins RE/MAX Venture Matt Gillard, Broker/Owner of RE/MAX Venture is pleased to announce Janita Paulson as the newest agent to join the Owatonna RE/MAX office.

“Throughout my career I have been involved with finding solutions for people’s needs, working around construction timetables and processes, and above all providing appropriate contact and follow up with customers,” said Paulson.

“I will be bringing those skills and knowledge to the relationships I develop in this exciting new chapter.”

Paulson adds, “I know I will really enjoy working with Matt & Deb and the entire team at RE/MAX Venture. Not only do they have a reputation for taking excellent care of their real estate clients, they also have a great reputation for making a positive impact in the community.”

“Janita has a wonderful spirit for serving others,” said Gillard. “That makes her an excellent fit with our company culture of serving our clients and their needs, and giving back to the community. We are very excited to have her as part of our team.”

Thronson announces new office location in Owatonna Eric Thronson, BFA, a financial advisor with Wealth Management Solutions, a private wealth advisory practice of Ameriprise Financial Services, Inc., recently opened a new office at 3095 S. County Road 45, Ste. 1, Owatonna.

“I am excited about the opportunity to get back to Owatonna and serve more clients, while continuing to help my existing clients achieve their financial dreams and goals,” said Thronson.

Thronson previously worked with the team in Austin, MN. As a financial advisor, Eric provides financial advice that is built on a solid understanding of client needs and expectations through one-on-one relationships with his clients. For more information, please contact Eric Thronson at (507) 413-6888 or visit their office at 3095 S. County Road 45, Ste. 1, Owatonna, MN 55060.

Want to share your company's news?

Send word of your hirings promotions, awards and more to FORGE@owatonna.com.

Dr. Dillinger joins Horizon EyeCare Professionals Horizon EyeCare Professionals, Owatonna Vision Source, is excited to welcome Eric Dillinger, OD, to their eye care team! He joins optometrists Doctor Beth Gilthvedt, Doctor Nick Vincelli, and Doctor Penny Vizina in providing a wide range of eye services and vision products to people in southern Minnesota.

He brings a strong background in diagnosis and treatment of ocular disease and experience in all aspects of eye care to Horizon EyeCare.

He graduated with honors from Indiana State University with a Bachelor of Science in Chemistry, received a Master’s Degree in Biology from Indiana University-Purdue University Indianapolis, and was awarded his Doctor of Optometry Degree (O.D.) from Indiana University School of Optometry. While attending the Indiana University School of Optometry Dr. Eric was an associate instructor in geometric optics and tutored other students in a variety of subjects.

In June 2018 Dr. Eric completed a year long residency in ocular disease at the University of Miami’s Bascom Palmer Eye Institute, the #1 ranked eye hospital in the United States. Dr. Eric is especially interested in contact lenses, primary eye care, ocular diseases as well as systemic diseases and medications that affect the eyes and vision. www.forgesteelecounty.com | 11

Around the Water Cooler Owatonna Foundation receives donation from AmesburyTruth The Owatonna Foundation recently received a $2000 donation from AmesburyTruth. As the leading provider of products in the North American window and door industry, AmesburyTruth has been setting the standard for quality and durability for over a century. Their components have been tested and specifically engineered to enhance the form and function of their customers' doors and windows. Amesbury began as a manufacturer and supplier of door and window hardware. Through the years, its reputation for product quality and exemplary customer service helped it grow to become what it is today: North America's leading service provider of products and solutions for the window and door industry. Truth Hardware began in 1914 as a blacksmith shop in Ellendale, Minnesota. In 1955, the company began designing and manufacturing windows and door hardware.

Through relentless innovation and commitment to quality, Truth Hardware became the industry's leading hardware manufacturer, offering well over 100 different products. Truth Hardware and Amesbury merged in 2013. By joining forces, AmesburyTruth became an industry-leading organization offering an extensive product line and considerable global resources.

Federated Insurance selects location in Mankato Federated Insurance is solidifying plans for the location of its recently announced Mankato, Minnesota, processing office. The company has entered into an agreement to purchase the building at 2000 Technology Drive. Closing on the sale of the property is pending.

The well-maintained building was a sound choice, based on its proximity to U.S. Highway 14, turn-key readiness, ample parking, and ability to accommodate growth.

Federated Insurance has had double-digit property and casualty premium growth in seven of the last eight years, and expects the trend to continue. The new location will provide support services for continued expansion. The facility’s opening date and new-staff hiring timeline are yet to be determined.

Big Brothers Big Sisters of Southern Minnesota Unveils New Brand Positioning Aimed at Volunteer Recruitment Big Brothers Big Sisters of Southern Minnesota along with more than 270 Big Brother Big Sisters affiliates across the country, today unveiled a new, modern look and brand repositioning with a goal of recruiting more diverse volunteers. Months of research, including focus groups with potential Bigs, as well as current Bigs, Littles, donors, staff, and leadership showed that the brand was not effectively connecting with younger, prospective mentors or conveying the urgent mission of Big Brothers Big Sisters. The organization is intentionally pivoting from messages of the importance of mentoring, to messages of the urgent need for the adults in the community to step up to defend the potential of every child. The mission will remain the same, as will the core model of building bridges in communities by connecting one adult with one child and supporting that match at every stage, but the organization will focus on a child’s potential, and our role as adults in helping children achieve their best possible futures.

The brand repositioning and new look are just the beginning. In the coming year, Big Brothers Big Sisters of Southern Minnesota will transition to a new, modern, nationwide technology system, participate in new training, and use the new positioning to refocus efforts on recruiting local volunteers. Big Brothers Big Sisters of Southern Minnesota has seen a 27% growth in children served in the last two years and recently was announced nationally as the Agency of the Year.

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HEALTHY WORKPLACE Scott Riester M.D., Ph.D., M.P.H. MCHS

7 STEPS EMPLOYERS CAN TAKE TO MAXIMIZE THE HEALTH AND SAFETY OF THEIR DRIVERS D

id you know that truck driving is among the most hazardous occupations in the United States? It’s true. Motor vehicle accidents account for about 40 percent of work-related deaths each year. Workers who are on the road are continually at risk for involvement in serious motor vehicle collisions. Furthermore, drivers often find themselves working irregular hours and can be away from home for long periods of time, making it difficult to find time to exercise and eat a healthy diet. Fortunately, there are many steps that both employees and employers can take to help improve the overall health and well-being of drivers. Here are a few considerations for professional drivers and their employers to ensure safe travels with every mile on the road.

1

Hardwire safety measures.

When we think about truck driver health, the first thing that often comes to mind is the sedentary lifestyle and what can be done to promote regular exercise and a healthy diet. Although this is important to address, there are several other safety measures that take priority. First and foremost, all truck drivers and their passengers should wear seat belts when driving.

Wearing a seat belt can reduce the risk of death by 80% in the case of a serious accident. For employers, it’s important to make sure that all trucks are equipped with the proper seat belts and that the importance of compliance with seat belt laws is strictly enforced. Employers should make sure that all of their commercial vehicles are routinely inspected to ensure that vehicles are in proper working order and

that all safety related equipment is in optimal condition. Regular truck maintenance can also reduce noise which can protect drivers from work-related hearing loss. It can also reduce excessive vibration that, in some cases, can cause osteoarthritis and chronic back problems with long-term exposure.

2

Prohibit or limit electronic device use while driving.

With the increasing use of cellphones, distracted driving has become a growing problem in the United States. The Federal Motor Carrier Safety Administration (FMCSA) currently prohibits the use of hand-held cellphones while transporting. The use of hands-free devices is still permitted. However, these devices can still distract drivers and are probably not any safer.

The use of hands-free devices has www.forgesteelecounty.com | 13

been associated with motor vehicle collisions rates that are similar to what has been seen for drivers who use hand-held devices. Many trucking companies have taken steps to limit cellphone use among drivers; some employers have even banned the use of all electronic devices while driving. Drivers should be encouraged to pull over and stop if they plan to use a cellphone or other hand held device. Distracted driving is a major cause of serious accidents and truck drivers should also be on the lookout for drivers around them who may be driving distracted.

3

Stay awake. In addition to distracted driving, another major threat to driver safety is drowsydriving. According to the Centers for Disease Control and Prevention (CDC), 1 in 25 drivers report having fallen asleep while driving in the past 30 days. Risk factors for falling asleep at the wheel include not getting enough sleep every night, shift work with an irregular sleep schedule, an undiagnosed sleep disorder such as sleep apnea, and the use of medications that cause drowsiness. Employers should actively take steps to make sure their drivers have a regular sleep schedule and are getting adequate sleep. Flexibility should be built into drivers’ schedules to allow for breaks when they feel tired. Drivers should also be given sufficient time to meet deadlines and should be actively encouraged to pull over when they are tired. When employers are heavily focused meeting tight deadlines it can push drivers to their limits, increasing the chances for a serious accident. Although motor vehicle crashes may appear to be uncommon occurrences, it is well worthwhile to take preventive measures as the consequences can be very costly when they do happen.

4

Consider important preventive screenings.

Sleep apnea, a common cause of drowsy-driving, has been a major topic of discussion in recent years. Drivers with sleep apnea are known to have increased accident

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rates compared to drivers without sleep apnea. Major risk factors for sleep apnea include obesity, high blood pressure, having a large neck circumference, and daytime sleepiness. The diagnosis of sleep apnea is usually confirmed with an overnight sleep study; in many cases testing can be performed in a patient’s own home without the need to go to the hospital. When drivers with sleep apnea are adequately treated it reduces day time sleepiness, and improves overall concentration and awareness. It can also reduce blood pressure and decrease a driver’s overall risk of having a heart attack or stroke. Many employers are starting to offer routine sleep apnea screening for their employees to help reduce accident risk and improve overall worker health.

5

Encourage a healthy lifestyle. When on the road for long periods of time it can be very challenging to exercise regularly and eat a healthy diet. Drivers should strive for at least 150 minutes of moderate exercise activity (such as brisk walking) each week. Exercise schedules can often be planned before a driver sets off on a trip. Preplanning and sticking to a routine can help improve compliance with regular physical activity recommendations.

Employers may consider instituting programs in which they monitor how many steps their drivers are taking each day using electronic devices such as cellphones and electronic fitness trackers. Regular exercise and a healthy diet not only decrease the risk of heart disease, diabetes, cancer, among others, it also improves concentration and awareness on the road and can reduce chances of motor vehicle collisions.

6

Terminate tobacco use. For those who use tobacco products, smoking cessation is the single most important thing one can do to improve overall health and well-being. Employers should strongly encourage smoking cessation among their drivers. This may include offering incentives and

rewards, as well as providing low cost access to smoking cessation programs and medical providers.

Quitting smoking is a very difficult undertaking, and the chances for long-term success have been shown to be substantially improved with medical help and supportive services.

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Be vigilant. Although commercial drivers are required to obtain medical clearance to drive at a minimum of every two years, employers should still remain vigilant in monitoring the health of their workers. If an employee has unexpectedly been out of work for an extended period of time, this could be a sign that a driver may have a significant underlying medical problem. If an employer has concerns that an employee may have developed a new medical condition that could impair their ability to drive, the employer can request that the driver undergo a return to work or fitness for duty medical evaluation to ensure that they are safe to drive and that they meet medical guidelines. Having pre-established protocols in place for how to handle medical leave and return to work after an absence can be a valuable resource for employers.

At the end of the day, employers and drivers should work together to identify and address the specific health need and concerns as they arise. A culture of safety and partnership can go a long way toward maximizing the productivity of an organization. There are many hazards on our road ways, and it’s important to remember that the biggest threats to health and safety are still some of the most obvious and well-known hazards. It’s important not to underestimate the importance of the basics, such as wearing a seatbelt and quitting smoking.

Tackling these key issues will improve the health and safety of drivers and the community as a whole. 

Scott Riester, M.D, Ph.D, M.P.H. is an occupational health physician at Mayo Clinic Health System in Albert Lea and Austin.

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FROM THE FOUNDATION Tim Penny SMIF

SUPPORT SMALL BUSINESSES THIS HOLIDAY SEASON T

is the season for spending time with family and friends, enjoying delicious meals and of course, shopping for gifts. The holiday season is always a great reminder to spend dollars locally and lift up our small businesses. At Southern Minnesota Initiative Foundation (SMIF) we invest in the businesses in our 20-county region because we know that they are the backbone of our communities.

According to the National Retail Federation, consumers say they will spend an average of $1,007 during the holiday season this year, up 4.1 percent from last year. In the same survey, 23 percent of consumers said they plan to purchase gifts at local, small businesses.

Shopping at small businesses also recirculates dollars within a community – the gift that keeps on giving.

At SMIF, we invest in businesses through our lending and equity programs, technical assistance, economic development grants and more. In 2018 we invested $1.8 million in economic development initiatives and provided support to 711 entrepreneurs through lending or programming.

One of the emerging markets that we have supported, and watched flourish, is the local foods market.

We do this primarily through our involvement in the FEAST! Local Foods Network, a partnership of more than 60 organizations, businesses and

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individuals committed to growing a sustainable, local and regional food system. We provide support for food and farming entrepreneurs through peer networks, financing and a major upcoming local foods event that connects the public with our regional food-makers.

The 5th annual FEAST! Local Foods Marketplace will be held on December 1 at the Rochester Mayo Civic Center. The Marketplace is the perfect opportunity to support local businesses and find unique gifts.

Visitors can sip, sample and stock up on locally-made foods and drinks that range from cheese and chocolate, to kombucha and kimchi from a selection of 100 exhibitors. SMIF, in partnership with Renewing the Countryside, the Minnesota Department of Agriculture, and other organizations, hosts this event each year to encourage shopping that will have a major impact on these area producers.

This time of year is also the perfect time to celebrate the achievements of our entrepreneurs. Many of our loan clients were recently honored in Southern Minn Scene’s Best of 2018, including Haute Skin Spa & Tanning (Owatonna and Faribault), Imminent Brewing (Northfield), Pleasant Grove Pizza Farm (Waseca), Ron’s Repair (Owatonna) and Sollid Yoga (Owatonna). We are also looking forward to hearing the results

of the 2019 Good Food Awards, as Grandma’s Gourmets, a loan client and FEAST! Marketplace exhibitor, is in the running for their Strawberry + Balsamic + Black Pepper Jam in the Preserves category of this national contest.

We give thanks to all of these entrepreneurs who are contributing to a vibrant region. Consider supporting your local businesses this holiday season. Shopping small will have a big impact on the place you call home.

To learn more about the FEAST! Local Foods Marketplace, visit local-feast.org/marketplace.

As always, I welcome your comments and questions. You can reach me at timp@smifoundation. org or 507-455-3215.  Tim Penny is the President & CEO of Southern Minnesota Initiative Foundation.

Tim represented Minnesota’s First Congressional District in the U.S. House of Representatives from 1982 – 1994.

Southern Minnesota Initiative Foundation (SMIF), a donor-supported foundation, invests for economic growth in the 20 counties of south central and southeastern Minnesota. The Foundation has provided more than $111 million in grants, loans and programming within the region during the past 32 years. SMIF's key interests include early childhood, community and economic development. To learn more about our work and mission, visit www.smifoundation.org.

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COVER STORY

MINNESOTA TRUCKING INDUSTRY KEEPS MOVING FORWARD W

hen Josh Ihlenfeld began driving a big rig, he didn’t plan to join the trucking industry. He simply intended to learn how to use what he viewed as another piece of farm equipment. However, this experience turned into a 20-year career for Ihlenfeld, owner of Owatonna-based TraLo, Inc. “Basically, we bought a truck to haul our grain, and everything evolved from there,” he said.

18 |

James Figy FEAtURE WRITER

www.forgesteelecounty.com | 19

TraLo has changed over the years — growing from a small operation to a fleet of 85 trucks — and so has the industry.

Now electronic logging is mandatory, strict hours of service are enforced, automation is increasing its foothold and qualified drivers are increasingly more difficult to find. Though these remain the top concerns, they are not the only issues the industry faces. But the largest challenges, experts say, offer some of the greatest opportunities for growth.

After all, trucking won’t disappear, according to John Hausladen, president and CEO of the Minnesota Trucking Association. MTA figures show that Minnesotans depend on heavy trucks to transport 18 percent of manufactured tonnage, and more than twothirds of communities in the state rely on trucks for all goods.

“Trucking is here to stay. It is the dominant mode,” Hausladen said. “…There’s going to be trucking, so there are going to be jobs.”

The problem for the state’s 18,350 trucking companies is finding enough drivers who are qualified, reliable and able to keep pace with changes brought by automation and electronic logs.

WHAT’S DRIVING THE DRIVER SHORTAGE?

The 135,350 trucking industry jobs in Minnesota account for roughly one in 18 statewide, according to MTA. However, this falls short of the need for full-time employees and independent owner-operators.

20 |

The shortage has become a self-perpetuating problem, according to Mike McDonough, general manager of McDonough Truck Line in Faribault. Economic growth has led to increased consumer spending, requiring additional trucks to transport more goods. Also, consumers now expect online orders to be delivered within two days or less.

John Hausladen Everything combined has required drivers to work unsustainable hours, McDonough said. Drivers are legally allowed to be on duty 14 hours per day and drive 11 of those hours, and most days, they hit the maximum.

“The guys that have been driving a while, they say, ‘Man, I’m too old for this. I don’t need this anymore,’” he said. “The work is running off drivers because we are busier than we’ve ever been. And the work needs to get done, yet there aren’t enough drivers to do it.”

In fact, the trucking industry was short 50,000 drivers in 2017 out of a base of roughly 500,000 drivers, according to Robert Costello, chief economist & senior vice president for the

American Trucking Associations.

Costello explained during a March 2018 webinar that the estimate of 10 million CDL holders in the U.S. doesn’t reflect reality. Many CDL holders have aged out of the workforce or aren’t pursuing work in the industry. Others operate cement mixers, dump trucks and other heavy vehicles that do not factor into the lack of long-haul drivers.

“If things do not change, we could get to 175,000 short by 2026,” he said.

Along with ramping up recruitment, companies are trying to reduce the employee turnover rate. McDonough said that at a conference, an executive from a national transportation company said this will require paying higher wages and expecting less.

Although McDonough sees this as generally true, it’s not the only strategy — and certainly not the best.

To defeat the perpetual cycle, McDonough Truck Line has begun focusing more on drivers’ quality of life in recent years. It also turns down jobs that would overextend the drivers, because these often lead to poor customer experiences anyway.

“Our company motto has been for years and years: ‘Large enough to serve, small enough to care.’ We feel that that’s our recipe for success,” he said.

For Ihlenfeld, the key is building authentic relationships with employees, which increases their sense of connection and loyalty to the company.

“You’ve just got to treat them like a human,” he said. “They can pick up the phone and call us anytime. We try to be their friend and be there for them, not

just treat them like a number.”

It seems simple, but it’s not always easy. This is a fast-paced work environment in which metrics and electronic logs are paramount, in which new coworkers could soon be robots.

NEW TECHNOLOGY FOR THE LONG HAUL

Trucking technology continues to increase, and while some components are the result of regulations, others provide innovative opportunities for truckers and trucking companies.

The technology that impacts every truck driver is electronic logging. The hours of service regulation that limits a driver’s workday to 14 hours has been around since 2004, but the requirement to log those hours electronically just took effect last year.

Besides having to foot the bill for the equipment, these systems are unpopular because they slow down deliveries and lack flexibility for logging hours, according to Ihlenfeld.

“You’re gone longer than you were before because of electronic logs, and it’s because you can’t control everything. The shippers and receivers might tie up a truck at the dock for half a day. Then all that does is affect our drivers and the time that they might be able to see their families,” he said, adding that TraLo strives to keep both the technology and time away minimal.

Although electronic logs aren’t cutting edge, automation

technology is just now arriving.

In October, the U.S. Department of Transportation released the “2018 Federal Guide to SelfDriving Cars and Automated Driving.” This states that the terms driver and operator “may in fact include an automated system,” and mentions multiple benefits of autonomous trucks.

“The integration of automation across our transportation system has the potential to in-crease productivity and facilitate freight movement. But most importantly, automation has

These cab-brake in emergencies, monitor acceleration through adaptive cruise control, reduce speeds around curves to prevent vehicle rollovers and ensure that the vehicle doesn’t veer into another lane.

“These are all things that assist the driver, but the driver is still there. The driver is still in control,” Hausladen said. “…It’s an extra cost, but it enhances safety, so that’s critical.”

One step further, autonomous vehicles will offer similar benefits to trucking companies, and these are already on the road. Nevada granted the Freightliner Inspiration " There has been a driver shortage to Truck from Daimler the some degree for the 20 years I’ve first autonomous truck license in the world been in business, but it has been in 2015, and many more acute now in the last year and companies have entered the market since. a half."

However, it’s inaccurate ~ Bill Collins, Interstate Truck Driving School to call these “driverless trucks,” McDonough said, because they will have a human driver present for the potential to impact safety the foreseeable future. significantly — by reducing “What you’ll see first will crashes caused by human error,” probably be convoys where the report states. you have a human lead, an Although many believe that automated truck behind, automation steals human maybe another one behind workers’ jobs, Hausladen said that and then a human rear. truck drivers shouldn’t be The two trucks in the middle worried and should welcome are automated and the front useful autonomous vehicle and the back are not,” he said. technologies.

“That’s mainly because you “We think the role will likely have to have someone there to change and in some instances transfer paperwork and to sign become more like a pilot,” he for goods as required by law. So said. “Planes still have pilots, but automation is coming, but not in for the long distance between the sense that we think.” takeoff and landing, they’re Automation technologies will using technology to assist the likely ease the driver shortage, driver.” too, even if they don’t fully The most basic technologies will eliminate the problem. assist with collision mitigation. (continued on page 22) www.forgesteelecounty.com | 21

TRAINING THE TRUCKERS OF THE FUTURE

Despite the recent focus on the lack of qualified drivers, Bill Collins, owner of Interstate Truck Driving School in South St. Paul, doesn’t believe it’s a new issue.

“There has been a driver shortage to some degree for the 20 years I’ve been in business, but it has been more acute now in the last year and a half," he said.

Although this is a problem for the industry, it also presents an opportunity for those

QH

deciding to pursue a career in trucking. MTA statistics show the average industry salary was about $50,000 in 2016. This rate has continued to increase and is driving enrollment for CDL training, Collins said.

“I have students that are coming through school and are then making $1,800 a week. That’s $90,000 a year,” Collins said, adding that although some drivers are banking on lower expectations, a strong work ethic is still required to succeed in the industry. “Those people are working their butts off, so it’s not an easy job. It’s definitely

more than a 40-hour-per-week proposition to make that kind of money.”

Similar CDL programs are offered throughout Minnesota, including at Riverland Community College in Owatonna. Among other requirements, the Riverland program mandates that students complete 44 hours behind the wheel.

“The truck driving program at Riverland is a comprehensive program and covers all varieties of CDL required vehicles,” the website states. “…The instructor for the program keeps current in

BY THE NUMBERS

SAFER TRUCKING FOR MOTORISTS AND THE ENVIRONMENT The trucking industry transports nearly all goods to Minnesota communities, but concerns remain about how safe and environmentally responsible it is. The following statistics from the Minnesota Trucking Association and American Transport Research Institute illustrate how the industry has continued to take these issues seriously and worked to improve them.

3

The number of ways that MTA members commit to improving safety, which include improving driver training, investing in cuttingedge safety technologies and participating in local, statewide and national safety initiatives.

97 98 22 |

The percentage that sulfur emissions from diesel engines have dropped since 1999.

17

71

The percentage of highway transportation fuel that is used by trucks versus other vehicles.

The percentage that the large truck fatal crash rate dropped in the U.S. from 1975 to 2015.

The percentage that particulate matter and nitrogen oxides emissions have been reduced by contemporary diesel truck engines, compared to similar engines made before 1990.

the transportation industry and provides thorough training and has partnerships with quality companies such as Minnesota Department of Transportation, Rochester City Lines and XPO Logistics who hire our graduates.”

At Interstate, most students are in their late 40s and wanting to change careers. The few younger students are often veterans looking for work after leaving the military. However, the workforce is also diversifying, and Collins said that unlike in other industries, there’s no observable pay gap for women or people of color.

The biggest misconception

Proud Supporters of 4-H & FFA

about working in the trucking industry, according to Hausladen, is that there’s just one type of person and one type of work.

“The type of equipment you drive, the type of freight you haul, where you haul it, whether you work for yourself or whether you work for someone else — it’s just very diverse,” he said. “If you like interfacing with all of the technology, we have that. If you like seeing the open road, we have that. If you like being your own boss, we have that.

If you like complex things, like moving bridges and wind turbines, that take extra skill, we have that.”

But if there’s one thing to remember about the industry, it’s that “trucking moves America forward,” according to Hausladen. Despite labor shortages and technology challenges, the industry’s outlook remains positive in Minnesota.

“Good businesspeople who have a good business model are going to fill an important need, and people are going to want to work with them,” he said. “For those who have a good workforce that can fill the trucks and keep them running, there’s a lot of opportunity.” 

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CHANGE IN HANDS, CHANGE IN PLANS SHIFT IN OWNERSHIP OF DOWNTOWN APARTMENT COMPLEX COULD MEAN SHIFT IN CONCEPT

A

delay in one of the downtown apartment projects in Owatonna could actually lead to a bigger project with more units available for rent.

Last year, the City of Owatonna signed a development agreement with Steve Nicolai of Nicolai Builders for the construction of a 33-unit apartment complex with underground parking in the 24 |

100 block of East Pearl Street in downtown Owatonna. The original agreement between the city and Nicolai said that the project would start at the end of last year, which it did, and be finished by the end of this year, which it won’t be.

back.” At the first meeting of the Owatonna City Council in November, Klecker went before the council where he requested — and received — permission to change the development agreement for the Pearl Street apartment project.

In September, Troy Klecker, the city’s community development director, said that the project had been “delayed” and “pushed

The delay came in part because the architect with whom Nicolai had worked died unexpectedly this summer, meaning that

Jeffrey Jackson executive editor

DOWNTOWN REPORT

Nicolai had to start over.

“Then the bids were coming in higher than expected,” Klecker said subsequent to the council meeting. “And he [Nicolai] was hesitant on doing the project.”

Enter Mac Hamilton.

Hamilton, the CEO of the Rochesterbased Hamilton Real Estate, already had completed one apartment complex project in the city this year and had started a second project just a block away from the Pearl Street project that promises to be finished by spring. When he heard what was going on — or rather not going on — expressed some interest in taking over the Pearl Street project if and when Nicolai wanted to bow out. As Nicolai inched toward stepping away, the city stepped in.

“We connected those two,” Klecker said.

And the end result was a purchase agreement between Hamilton and Nicolai for the property. Nicolai was out; Hamilton was in.

When Klecker went before the city council, he was asking for a transfer of the development agreement with the city from Nicolai to Hamilton, as well as a transfer of the tax-increment financing plan. And it was approved with the understanding that there were likely to be changes in the development agreement itself, Klecker said.

“What Steve Nicolai wanted to do was not exactly what Mac Hamilton wanted to do,” Klecker said.

For one thing, he added, Hamilton was envisaging a bigger project with more than the 33 units than Nicolai had planned.

One major difference was the size and the scope of the project.

“It’s a bigger piece of property” than what Hamilton was using for his five-story 54-unit apartment

complex on East Vine Street, just a block away from the Pearl Street location, said Klecker. “There’s the potential for more units.”

Pointe, near the Hy-Vee supermarket on 18th Street SW in the south part of town — a complex where the apartments are less expensive.

The details of Hamilton’s plan for the Pearl Street location have not been finalized. First, the city council needed to grant approval to the transfer of both the TIF plan and the development agreement, as well as the understanding that the development agreement would undergo some changes. Now that the council has given its imprimatur, the details can be worked out.

Klecker said he is not certain which route Hamilton will take on the Pearl Street apartment complex — the higher-end apartments like those being built on Vine Street or the more moderately priced apartments like South Pointe.

Hamilton did confirm Friday, however, that they have a “general concept” of what the apartment complex will be.

“It will be on a grander scale than what was planned [by Nicolai],” Hamilton said.

Klecker said he did not know how many units would be planned for the Pearl Street complex under Hamilton’s direction, though he expected 50 to 60 rather than the 33 that Nicolai had planned.

Hamilton couldn’t quite answer that question either.

“Potentially there could be 60 units there,” he said. “We will have to see if we still have demand in the market.”

Nor is it clear at this point what type of apartments they will be.

Hamilton’s project on nearby Vine Street advertises itself as “Luxury Apartment Homes.” Hamilton has said that apartments on Vine will be “A-level,” with higher-end appliances, quartz countertops and a higher grade of finish. Because of that, the apartments are likely to be more expensive — what Hamilton has called a “new standard for rent” — with a one-bedroom apartment likely renting for just over $1,000 a month, and a two-bedroom, two-bath apartment going for $1,400 to $1,500.

But early this year, Hamilton opened 37-unit complex, known as South

“My initial thought is that they won’t be as high end as those on Vine Street, but more comparable to those on the south end of town,” Klecker said, adding that he imagined the apartments would fit into the décor of downtown.

For his part, Hamilton wasn’t sure. And again, he said, much of it may depend on how the Vine Street development is going and whether there will continue to be enthusiasm to be downtown, which he believes there will be. Indeed, even with construction of the Vine Street development still underway and not slated to be finished until next spring, Hamilton said that he already has leased two apartments.

“Two down, 52 to go,” he said.

The decision on what the Pearl Street complex will be like also could be tempered by other things quite out of the reach of the enthusiasm that potential residents might have for the apartments — things like interest rates and cost of construction, both of which could go up, Hamilton said.

Still, he remains excited and enthusiastic about the projects in Owatonna.

“We think the town is going to grow and prosper,” he said. “In fact, we’re betting on it.” 

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DOWNTOWN REPORT

BACK TO THE BEGINNING

Nicole Winter opened her first store in 1996, located inside the old Arnold Hotel in downtown Owatonna. After 22 years, four names, and three cities, she has officially moved back to downtown in the Zamboni Building with her new boutique, Urban Loft. (Annie Granlund/People’s Press)

OWATONNA STORE OWNER RETURNS TO DOWNTOWN

T

he hearts of hundreds of retail shoppers broke this summer when Nicole Winter announced that she would be closing the doors to Urban Finds & Bistro at the Medford Outlet Center.

“Business out there had just really slowed down,” Winter explained about her decision, which was announced in mid-July. “It just 28 |

seemed like the right thing to do.”

The mourning didn’t last long, however, when Winter surprised the community recently with a Facebook post declaring that Urban Finds would be returning under a new name and in a new location.

plan isn’t the same as the big plan, and doors open that you can’t not go through,” Winter wrote on Oct. 2. “Announcing my newest adventure — Urban Loft! Located in beautiful downtown Owatonna in a dream building, and opening so soon.”

“I know I told everyone that Urban Finds & Bistro was closed for good. But sometimes your

The announcement was more than well received, as her post quickly garnered more than 100

Annie Granlund feature writer

shares, more than 200 comments, and well over 1,000 reactions.

The surprises kept rolling in as Winter officially opened doors to her business only nine days later in the Zamboni Building at 303 N. Cedar Avenue.

“The response has been so nice,” she said. “All the other businesses downtown have been very welcoming, and I already feel like I’m part of the group.”

The opening of Urban Loft actually marks Winter’s return to downtown Owatonna. In 1996, Winter opened the store for the very first time under a different name in the old Arnold Hotel, which has since been torn down and replaced with Arrow Ace Hardware.

“When that building sold they gave me a 30-day notice to leave,” Winter said, stating that her boutique was then called the Arnold Hotel Antiques and Gift Shoppe until she left in 2002. “Then I moved to Faribault, but just didn’t feel right.”

In Faribault she had renamed her store Farmhouse Primitives, but after two years took the chance and relocated to the Medford Outlet Mall as Mustard Seed Primitives.

“I was open for five years and sold it, but then bought it back five years later,” Winter laughed.

It was in 2014 that she officially opened Urban Finds & Bistro, bringing food back to the outlet mall for the first time in five years. As stores moved in and out of the mall all around her, however, she made the decision to close up shop once again.

“Closing this last time was very emotional,” she stated. “I just kept thinking, is this really the end?”

Just before Winter cleared out of her space in Medford, she said she received a phone call from the owner of the Zamboni Building informing her that the space that formally housed the Owatonna Fit Lab was available.

“I had called them about the space quite a while before I had decided to close, but the owner had plans to sell the building,” Winter said. “I guess the plans fell through, so now I’m back downtown where it all started.”

Winter said that all of the new businesses that will be coming downtown was extra icing on the cake in her decision to relocate and reopen. As an Owatonna native and a big advocate for a strong downtown, Winter said she is excited to see the new activity that businesses such as the breweries and hotel will bring next summer.

In the first week of Urban Loft’s grand opening, Winter said she has seen a lot of old customers as well as plenty of new faces stroll into her store.

She has also received plenty of inquiries on whether or not the bistro will also make a return.

“There is potential here where I could do food with some adjusting,” she said, noting the hook ups that would allow her to install a kitchen. “It would be nice, and I’ve looked into getting an investor and moving into a bigger spot downtown, but that is a far-off dream. In the

near future I could see doing coffee and desserts here. That’s something I can and will do.”

Other than the absence of coffee and food, almost everything about Urban Finds has transferred to Urban Loft.

Winter said she plans to still provide clothing, accessories, home décor, seasonal items, and Minnesota-themed everything in the store, as well as upscaled and refurbished pieces. She no longer will be offering consignment options, but stated that she will still be purchasing from a variety of vendors. Winter said she also hopes to start making “house calls” for decorating, something she was able to do the last time she was located downtown.

As for the loft inside her new store, Winter said she is still keeping an open mind. While she knows she could easily pack it full of more inventory, she also enjoys the idea of keeping the space a bit more open to provide a venue for downtown events.

“I just want this to be a friendly place for everyone,” Winter said.

Admitting that she didn’t have a plan for what she was going to do after her Medford location closed, Winter said that it just made sense to keep the store alive and well in the place where it all began.

“I just don’t see myself doing anything else,” she laughed. “This is my niche.”

Urban Loft is open Monday thru Friday from 9 a.m. to 6 p.m., on Thursdays from 9 a.m. to 8 p.m., and on Saturdays from 9 a.m. to 4 p.m.  www.forgesteelecounty.com | 29

MINIMIZER PARTNERS WITH RACING SERIES TO MAKE TRUCKING COOL

Y

ou wouldn’t want to see one of these big rigs in the rearview mirror.

The 22-foot-long, 6-ton racing semis in the Bandit Big Rig Series races are fine-tuned, high horsepower machines, according to Jason Johnson, general manager of the Bandit series. The trucks can exceed 100 mph on half-mile tracks across the U.S., colliding along the way.

“You hold your breath when they go into turn one, and you don’t exhale until the checkered flag flies,” Johnson said. “We’re not a demolition derby, but … they’re going for a win.”

At Bandit series events, there’s 30 |

serious excitement, not just about the races but also about semitruck driving in general. This is what attracted one of the racing series’ top sponsors, Minimizer.

The Blooming Prairie-based manufacturer designs, tests and sells durable aftermarket semitruck parts, ranging from floor mats and seats to brackets and its signature poly rubber fenders.

These parts are useful on a daily basis, but they’re not that exciting, according Steve Hansen, director of marketing for Minimizer. The company’s partnership with the Bandit series gives greater visibility to the parts, but more importantly,

it creates an appeal for workers to enter the trucking industry at a time when companies are having difficulty finding enough drivers.

“It’s hard to make truck parts cool. It just isn’t a very cool topic,” Hansen said. “But semi-truck racing is cool.”

‘TESTED AND TORTURED’ Dick Kruckeberg founded Minimizer in 1984 after he became frustrated with the current semi-truck fenders on the market. The idea for creating poly rubber fenders came from two specific events that happened while he was still a semi driver, Hansen said.

James Figy FEAtURE WRITER

The first occurred when Kruckeberg had just purchased a new set of stainless steel fenders, which were standard at the time. During his first delivery with the fenders, a forklift smashed into the side of his trailer, wrecking them.

“He was upset, thinking, ‘I wish that the fenders had some give to them so that they could pop back,’” Hansen said.

The second happened not long after that when Kruckeberg’s wife ran over a garbage can while backing out of their driveway.

“It was a Rubbermaid garbage can, so when he popped it back out, that’s when he got the idea that it’d be cool if they could make fenders out of this [material],” Hansen said.

Kruckeberg leveraged his connections in Blooming Prairie

SPECIAL REPORT to create the first version of these fenders. It wasn’t long before other truckers began asking him to make the same durable fenders for them.

Now led by Craig Kruckeberg, the founder’s son, Minimizer produces many parts at its Blooming Prairie headquarters, and the rest are manufactured in the U.S., largely in Minnesota and the Midwest.

Beyond expanding its product line over the years, the company has grown its distribution network to include roughly 4,000 stores, and it has increased its staff.

produced videos to demonstrate the products’ durability – whether that means pounding them repeatedly with a sledgehammer or running them over with a tank.

However, one of the best ways to show this, Hansen said, is by partnering with the Bandit series and having Minimizer parts on all of the trucks.

‘THE BIGGEST THING IN RACING’

“Fifteen years ago, we had 10 employees, and now we’ve got closer to 100 employees. There’s been quite a bit of growth over the last decade,” Hansen said.

During Bandit Big Rig Series events, the trucks are put to the test, Johnson said. There have been 18 trucks for the past two years, with Craig Kruckeberg and his son, Tyler, driving some seasons. That number will grow to 24 trucks in 2019.

Minimizer assures all products are “tested and tortured” and offers a lifetime warranty. The company has

The races include qualifying rounds, heat races and a 30-lap main event. But sandwiched in

www.forgesteelecounty.com | 31

between is the Bandit Shootout, a king-of-the-hill-style race during which two trucks at a time compete to have the fastest lap.

the Florida panhandle, then up to Erie, Penn. Then they’re sprinkled through the Midwest and down in the southeast,” Johnson said.

“The winner stays on, the loser falls off, and then the next challenger comes,” Johnson said. “We do that in reverse order of how they qualified. So the two slowest guys will start it, and then you have to work your way up that hill.”

However, the Bandit series events are “Minimizer is leading the forefront as about more than racing semis. Before one of the most widely recognized the races begin, all semi drivers from names in the aftermarket truck the area are invited to participate in a accessory lines. The Bandit Big Rig “fan-series truck show,” Johnson said.

Series is really unique because there’s Organizations provide information not another thing out there like about joining the trucking industry it. We like to say we’re the biggest at each event, and the series gives thing in racing,” he said. “…We’re away a Bandit edition Minimizer just trying to make trucking cool.” truck seat to a CDL license holder.

The series, which also is based in Blooming Prairie, will host 12 events across the U.S. in 2019.

“Those stretch basically from Minnesota down to Texas, over to

32 |

Johnson believes that the partnership has been rewarding for both the

Bandit series and Minimizer. He hopes to strengthen the relationship and promote careers in the trucking industry over the coming seasons.

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www.forgesteelecounty.com | 33

PARTNERS FOR GROWTH Greg Kruschke OPED

Redevelopment and Long-Term Payoff E

conomic redevelopment is a City initiative to spark redevelopment with private investors.

Redevelopment provides a trickledown effect for economic growth.

“A community can’t sit back and ignore redevelopment projects.

We must take initiative to drive development because of the trickle-down benefits it creates for economic growth,” states City of Owatonna Community Development Director Troy Klecker.

Each Owatonna redevelopment project has its unique challenges

Get Your

that’s why it’s important Owatonna Partners for Economic Development (OPED) exists— multiple economic development organizations are partnered and focused to fast-track decisions and the development process most efficiently and effectively possible.

Owatonna is unique in that the City of Owatonna is the leading developer with more than 225 acres of land available for development.

The advantages of the city as a developer is that they can address a private developer’s land needs quickly with the city-owned land.

Also, annexation is an option if the private developer’s need requires it.

Speed is vital at the time of a deal or sale for business development.

But for the process to be quick for a developer, the City had to take years of long-term planning. Acquiring land, placing utilities, and annexation has to have already taken place to accommodate development quickly.

Also, key is the relationship OPED has with United Properties. United Properties is a privately owned commercial real estate company that focuses on investment and development of office, industrial,

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retail, mixed-use and senior housing properties in the Twin Cities of Minneapolis and Saint Paul, Denver and other select markets like Owatonna. They can open doors OPED is unable to access in how they identify projects and make connections. With their continued interest in the Owatonna Industrial Park, it allows for joint marketing of projects that may be interested in Minnesota or Iowa. Their credibility allows us to make connections to companies, brokers and site selectors that are crucial in the decisionmaking process for new projects.

Perception might be that the City has free giveaways and incentives with redevelopment projects—but it’s not accurate. Tax Increment Finance (TIF) money is used with projects.

TIF dollars are from the State of Minnesota and are heavily regulated, so every project that receives these dollars are fully examined and held accountable for pay-back.

According to the Minnesota Department of Revenue, tax increment financing (TIF) is a method of financing real estate development costs to promote development, redevelopment, and housing in areas where it would not otherwise occur.

TIF authorities such as cities, city or county housing and redevelopment authorities, port authorities, economic development authorities, or rural development financing authorities use TIF revenues to encourage developers to invest in new projects.

TIF finances development by “capturing” the incremental property taxes generated by the increased value of new development. Without development, there is no increment to capture, but once there is development, tax increment provides a revenue stream that can be used to finance a project directly or reimburse qualifying expenditures.

More than land, the city has also used TIF dollars for downtown redevelopment projects. A recent example of this is the old Arnold House building in downtown Owatonna. The city purchased and demoed the site, financing through TIF so that redevelopment could occur.

Since the city took this action, Dave Nieman with Ace Hardware was able to construct a new building for his business. With their building available, Torey’s Restaurant was able to expand in that space—a positive trickledown growth of business with the city kick-starting the redevelopment.

“The Arnold House, in downtown Owatonna, was a great building during its time, but being vacant for so long needed to come down. A call to the owner of Ace Hardware set everything in motion to demo the Arnold House and build a new Ace Hardware store in that location. It is truly great to have a new hardware store in our downtown location,” states Tom Kuntz, mayor of Owatonna.

Another successful redevelopment project included multiple entities-

-Mayo Clinic, Sacred Heart Church, Fareway Foods and the City. This partnership took the old hospital site on South Oak Avenue and developed it into the Fareway Foods and Sacred Heart Church that we see today.

“The addition of Fareway Grocery store has been a great addition to the city of Owatonna. It replaced a hospital that had been vacant for years. It was a great partnership between the City of Owatonna, Steele County, the Sacred Heart church and Fairway Foods to make it happen,” shares Mayor of Owatonna Tom Kuntz.

A few of the long-term payoff benefits with economic redevelopment, include: • Business expansion • Increased tax base • New building with a higher tax base • Potential jobs are added • Surrounding properties invest in updates Redevelopment is more than land and buildings. It is the spark to business growth and has long-term payoffs for Owatonna, our regional center.  Greg Kruschke is the Owatonna community development manager and partner with Owatonna Partners for Economic Development, OwatonnaDevelopment.com

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ECONOMIC

DASHBOARD Comparison Report of building in Owatonna 2017/18 80000000

2017 Total YTD

70000000

2017 Industrial YTD

60000000

2017 Commercial YTD

50000000

2018 Total YTD

40000000

2018 Industrial YTD 2018 Commercial YTD

30000000 20000000 10000000 0 Millions

Jan 17

Jan 18

Feb 17

Feb 18

Mar 17

Mar 18

April 17

April 18

May 17

May 18

June 17

June 18

July 17

July 18

Aug 17

Aug 18

Sep 17

Sep 18

Oct 17

Oct 18

Nov 17

Nov 18

Dec 17

Dec 18

Source: City of Owatonna

Comparison Report of Homes for Sale to Newly Listed Homes Owatonna

200

2017 New Home Listings

2018 New Home Listings

2017 Homes for Sale

2018 Homes for Sale

150

100

50

0

Jan 17

Jan 18

Feb 17

Feb 18

Mar 17

Mar 18

April 17

April 18

May 17

May 18

June 17

June 18

July 17

July 18

Aug 17

Aug 18

Sep 17

Sep 18

Oct 17

Oct 18

Nov 17

Nov 18

Dec 17

Dec 18

Blooming Prairie

Source: SEMAR

25

2017 New Home Listings

2018 New Home Listings

2017 Homes for Sale

2018 Homes for Sale

20

15

10

5

0

Jan 17

Jan 18

Feb 17

Feb 18

Mar 17

Mar 18

April 17

April 18

May 17

May 18

June 17

June 18

July 17

July 18

Aug 17

Aug 18

Sep 17

Sep 18

Oct 17

Oct 18

Nov 17

Nov 18

Dec 17

Dec 18

Source: SEMAR

36 |

30 Year Fixed Mortgage Rates 2017 2018

5

INTEREST RATE

4.5

4 3.5 3

Jan Feb Mar April May June July Aug Sep Oct Nov Dec Source: Freddie Mac

TIPS&TRICKS

MORE THAN HALF OF GREATER MINNESOTA JOB OPENINGS IN LOW-WAGE OCCUPATIONS The Minnesota Department of Employment and Economic Development (DEED) reports that there are 60,000 job openings in Greater Minnesota — the most openings since the state first conducted the Job Vacancy Survey in 2001.

That’s the good news for job seekers.

Number of Homes Sold OWATONNA

QH

SOLD

BLOOMING PRAIRIE

2017

2018

2017

2018

JAN

15

15

0

3

FEB

20

16

0

0

MAR

24

23

5

2

APR

26

25

0

1

MAY

43

33

4

3

JUN

49

43

0

6

JUL

40

42

4

2

AUG

40

43

2

7

SEP

34

27

6

6

OCT

34

31

3

2

NOV

28

3

DEC

19

1

The bad news — or at least the not-so-good news — is that most of the overall gain in jobs was caused by a sharp increase in low-wage occupations, six of them in particular — food preparation and serving, sales, personal care, office support, janitorial and farming.

Compared with four years ago, when DEED did its last survey before the state began raising its minimum wage, job openings are up 108 percent in the six occupations listed above. The increase for these occupations is four times greater than for the other occupations in the survey.

In the current survey, 53 percent of all occupations in Greater Minnesota — that’s all of the state’s economic regions excluding the seven-county metro region — are in the same six low-wage occupations. For these openings, the median wage is $11.60 per hour.

Other findings for Greater Minnesota include: • Only half of all openings offer health care.

• Only 24 percent of all openings require education or training beyond high school.

• The median wage for all openings is $13.70 per hour.

To make ends meet in a family of three with two workers—one full-time, one part-time—each worker must earn between a regional low of $14.25 per hour and a regional high of $19.45 per hour, according to DEED’s Cost of Living report.

The Cost of Living report, which show how much is required to meet basic needs in 12 Greater Minnesota economic regions, can be found online at http://mn.gov/ deed/data /data-tools/col/index.jsp.

Source: SEMAR

www.forgesteelecounty.com | 37

Owatonna Area Chamber of Commerce and Tourism

O WA T ONN A T OURISM Holiday Concert to Benefit Steele County Toys for Tots

Friday, December 7, 6:30pm (Doors open at 6:00 pm) Fellowship Hall at Trinity Lutheran Church. Musical performances will include the local talent of: OHS Carolers, Tim & Andrea Van Gelder, Trinity Bell Choirs (Angelus Bells & BELLievers), Golden Tones, OHS Jazz Band and many more. Emcees: Tim Van Gelder and Amanda Weinkauf. Attendees are encouraged to bring an unwrapped toy or make a freewill donation (there is no charge to attend the concert).

“Bold & Cold”

January 19-27, 2019 A week-long winter celebration with events and activities that are designed to highlight the Minnesota psyche of “cold noses and warm hearts!” For the young and young-atheart participants, including a medallion hunt, a candlelight cross country ski, hockey tournament, ice sculpture contest, Crazy Days shopping event and much, much more!

A Traditional Musical Christmas

Sat., December 15, 2 pm, 7 pm All the classic carols of the season sung by the most beautiful voices will awaken the Christmas spirit in even the Scrooge in you, making for a memorable experience.

In the spirit of the holidays and with a sweet treat to send you on your way with warm wishes for all. Tickets at the door are $10. Adults and $24 for a family two adults, and four children under 12.

Holiday in

visitowatonna.org

38 |

For more information about the Owatonna Area Chamber of Commerce and Tourism, go to

CALENDAR OF EVENTS Owatonna Area Chamber of Commerce and Tourism

2019 EVENTS $15 for event or $40 for a Y-Pro Pass (all 8 events in 2019!)

Events include Lunch n Learn, Social, Community Service, and Fitness.

It’s a great way to connect with 21-39 year old’s in the Owatonna area.

For date/time/location, visit Owatonna.org and click "Chamber Events"

BUSINESS BOOT CAMP

Location: Owatonna Public Library – Gainey Room Time: Noon to 1 p.m.

The Business Bootcamp series focuses on small business needs. This one hour training and networking session includes thought-provoking speakers, a great network and lunch!

Thurs., Dec. 20. 2018 Speaker: David Traub, APG Topic: Marketing for Workforce

Pictured above: YPro building at a Habitat for Humanity house October 2018.

Thurs., Jan. 17, 2019 Speaker: Eric Therwanger Topic: Erik's 3 Pillars of Business Greatness

Allows organizations to achieve greater results by providing dynamic programs and resources for the enhancement of leadership development, strategic planning, and sales excellence-building a stronger foundation.

BUSINESS AFTER HOURS 5:30 p.m. to 7:00 p.m.

Tuesday, Dec. 4, 2018

Sponsors:

Location: Owatonna Country Club 1991 Lemond Road, Owatonna

Tuesday, Jan. 29, 2019

This meeting is open to employers interested in working with our initiatives to get students opportunities to experience and work in your business.

Sponsor:

11:00 AM- 12 Noon

Fridays, Dec. 14, 2018 & Jan. 25, 2019

**Note one week later**

Location: Horizon EyeCare Professionals a Vision Source Premier Practice 2560 Harvest LN NW, Owatonna Dr. Beth, Dr. Nick, Dr. Penny, Dr. Eric

WORKFORCE: STEELE CO. WORKS/SCHOOL TO WORK MEETING

Professionals

Location: TBD Agenda: Workforce efforts to date, ways for business to connect & more Pictured above: Recent Workforce meeting at Riverland Community College-Owatonna.

www.owatonna.org or call 507-451-7970 or email oacct@owatonna.org

www.forgesteelecounty.com | 39

Owatonna Area Chamber of Commerce and Tourism

Future Focus Employer & Students Connecting

share the message

2018 2019 2020

Business Tours and Career Exposure 150+ Juniors and Seniors Annually through Made in Owatonna Days

The Mission

Advancing the prosperity of our member businesses and the vitality of the area.

Number of Students Assisted 130 directly with Workforce Coordinator

The Guiding Principles

Students Hired Locally 35 directly through this program

Develop Talent Restore the Core

· Responsibility Accountable for managing and governing the OACCT with integrity.

· Relationships Open communications and transparency in all endeavors to benefit the OACCT, members and Community Partners the area.

Job Shadows/Internships 20 seniors without a post-high school plan placed at local business

Strengthen Economy

*

· Representation * Recognizing the diverse AREA CHAMBERof OF COMMERCE & TOURISM with needs businesses innovative approaches, solutions and determined leadership.

Business Investors*

Attract & Retain Talent:

Attract, develop and retain a highly qualified, well-trained workforce capable of meeting the area’s employment needs.

Attract Tourism *

Restore the Core: Revitalize Owatonna’s Downtown District to become a vibrant and economic center of community life.

Champion a Strong Economy:

Advocate for probusiness policies, be a key resource on community issues and collaborate with partners on local economic development.

Attract Tourism: Position Owatonna as a destination for leisure, meeting/convention, tournament, reunion and group tour travel.

*Denotes funders of the Workforce Entry Coordinator position in the high schools of Steele County.

320 Hoffman Dr., Owatonna, MN 55060 | 507.451.7970 | oacct@owatonna.org | owatonna.org |

40 |

KNOW THE LAW Kristin Haberman Attorney

SMALL BUSINESS SUCCESSION PLANNING

A

challenge many small family business owners face is the identification of the long-term goals of the business and personal objectives of the owner. The trucking industry is overwhelmingly comprised of small business owners with 90% of the industry made up of companies with ten or less trucks.1 Most of these small business owners and entrepreneurs are forced to focus on the day-to-day operations and meeting the short-term needs of the company, its customers, and its employees. Many small business owners don’t have the luxury of setting aside time in their demanding schedules to address the “distant future” of their growing business, specifically the long-term objective of business succession.

But what happens to the business when its key person is no longer available, either by choice or by chance, is one of the most important issues to address. Every new business owner needs to enter the business with a general idea or plan on how to get out. Developing this exit strategy is not an easy task. It takes time, and usually requires the input of the owner’s accountant, attorney, and financial advisor.

A small business succession plan is often a part of the owner’s estate plan. Developing the plan requires an evaluation of the current status of the business. That status can be determined by answering the following question: If the business

owner died tomorrow, what would happen to the business?

The possible outcomes are: 1. I t would be closed, and the assets sold or distributed.

2. I t could be sold as an ongoing business.

3. It could continue for a period of time, but ultimately sold or closed.

4. It would continue as a successful, ongoing business.

An owner’s succession plan, or lack thereof, can be as simple as the intention to dissolve the business upon the owner’s death. If the business is of the type that it can be sold to an unidentified buyer upon the owner’s death, then the owner, and the owner’s family, should be aware that the selling price will likely be less than what it would be, if the owner had a succession plan in place. An owner with a business in this status may be wise to identify prospective buyers, and possibly entering into an option to purchase agreement.

If the business could maintain operations for a period of time, but ultimately it would need to be sold or closed, mostly likely the business is very dependent on its owner for leadership, innovated decision-making, and customer/ vendor relations. A business in this status could benefit from its owner identifying a future replacement. If the business’s status

is that it would continue to operate successfully, the business is in the best possible position with regard to options. The death, disability, or retirement of the owner will not severely negatively impact the ongoing continuation of the business, or its customers, vendors, employees, or the owner’s family.

Each succession plan is unique, due to each person’s individual circumstances. Factors to consider for each succession plan include the owner’s family dynamics, age, health, retirement goals, managers, employees, culture of the company, and financial health of the business.

Once each of these factors is assessed and the status of the business without its key person is evaluated, the owner’s trusted advisors can assist the owner in developing the legal documents, agreements, and tools which may now, or in the future, transfer ownership, groom successor managers, and evaluate cash flow and tax planning.

Although business succession planning is not a high priority on the task list of most small business owners, it is an important topic to address, for the personal benefit of the owner, the owner’s family, employees, vendors, and customers.  Kristin Haberman is an attorney for Einhaus, Mattison, Carver & Haberman, P.A., devoting much of her practice to estate planning.

1 Owner Operator Independent Drivers Association, https://www.ooida.com/MediaCenter/trucking-facts.asp.

www.forgesteelecounty.com | 41

E

very year, people across Minnesota are faced with the same challenge as spring draws near: taxes. Some people take the old fashioned way and do their own, writing everything down on paper forms and mailing them in. Others get a little help from online software programs. Others go all out and simply hire a professional.

42 |

Professional tax accountants can be a life line to workers and business owners trying to juggle federal and state tax laws, which are constantly changing. So many factors are at play: deductions, itemizations, multiple jobs, life changes and other issues. This year, things got even more complicated –yet paradoxically,

Grace Webb FEAtURE WRITER

SPECIAL REPORT

also less so—thanks to the Tax Cuts and Jobs Act signed into law by President Trump on Dec. 22 in 2017. This law resulted in the biggest tax reform in 30 years, which is finally taking effect this tax season.

A LOT TO LEARN

Area accountants have been preparing for this new era of tax law for months, according to Dan Branstad, a certified public accountant at Carlson Branstad PC in Owatonna. Branstad said his firm was already trying to predict clients’ taxes under the new law for this year’s taxes, just so they could have an idea.

“There are numerous changes out there that we’re all trying to get ready for,” he said. “We did a little bit of planning for our clients last year, and we tried to apply what the new law’s [effects] would be based on 2017 data. We’re thankful that our software incorporated a lot of that tax law into it.”

Sandy Flom, a CPA and CFA in Faribault, said she has been meeting with her clients throughout the year as well to do tax projections. In addition, both Flom and Branstad said their firms attend continuing education classes throughout the year to learn more about tax changes. Brandstad attended the Minnesota Society of CPAs Tax Conference in November, while Flom also plans to attend the last Minnesota tax update in January “Congress always seems to have a way of passing something in December, after the election, and then making it retroactive for the year,” she explained. “I always want the latest and greatest to figure out what they’re trying to do.”

Flom added her firm relies on “really good” software to stay current, constantly updating her programs. Every year, there’s another upgrade.

“Our software is about $17,000,” she said. “So when somebody buys their version online for $49, it doesn’t really have all the same bells and whistles.”

PROMISING PREDICTIONS Both Branstad and Flom said initial predictions indicate that the vast majority of Minnesotans are going to save money this year, at least on the federal level.

“We found that a lot of our clients are going to pay a smaller amount of tax,” Branstad said.

Flom agreed, adding that after she ran the numbers, only two of 150 clients saw an increase in federal taxes, and that was only because they lost deductions because their children were too old to qualify anymore.

“The typical family that has a couple of kids, they’ll save big money,” she said. “If everything else is exactly the same, just the extra three percent [decrease across income levels] in your taxes definitely

helps. People owe more money to Minnesota, but when you subtract the refund from the federal, they’re still a couple thousand dollars ahead.”

Flom said that despite the major changes in the federal tax law, most individuals should still be able to do their own taxes if they are simple employees and take the standard federal deduction. However, if people own their own business, are contractors or have unusual situations, such as farmers, she highly recommends going to see an accountant.

“Anybody who has any type of business, you definitely need to go to a CPA because there are so many changes in the tax law,” she said.

She said her firm had already picked up several new clients by the end of the year, and she estimates that the tax reform will bring about 250 new clients to her for the 2017 tax season.

“People who’ve done their own taxes in the past, now they think it just looks wrong [when they use the new forms],” she said. “Most people don’t do their taxes wrong on purpose but they’ll look at it and go, ‘I’m not taking the chance.’”

STARTING EARLY According to Branstad, the IRS isn’t even ready to process tax returns until the end of January or beginning of February, so tax preparations can’t actually start until the first part of February. But that doesn’t mean his firm and others like it aren’t able to plan ahead and start preparing.

“For some clients, we try to do a lot of work ahead of time if we can,” he said. “We encourage them to stay on top of things and call us when certain things come up. Don’t wait until tax season to ask the questions.

Ask us during the off season so we can prepare for it, and you can prepare for it as well. That really helps.”

He said many of his clients come to him in November or early December to start preparing. He added that he’ll also call clients if he knows that certain tax laws will impact them. Flom said her business is similar, with about 150 clients coming in during the last two months of the year to try to estimate taxes based on information they’ve gathered throughout the year. In addition, her firm sends out “organizers” to clients around Thanksgiving so that they are able to make better estimates of income and expenses throughout the year, as well as double-checking with businesses to make sure they have all the right addresses for employee 1099s.

“We’ve tried to educate the clients to when something comes up, they call us,” she said. “We’re not the accounting firm where, if you call in, you get a bill for a five-minute conversation. I’d rather have them call in so we at least know what’s going on.”  www.forgesteelecounty.com | 43

QH

TIPS&TRICKS

TRUCKING THE SmartWay

Trucking organizations are working to reduce their environmental footprint. A key program is SmartWay, which the EPA formed in conjunction with 15 leading transportation companies in 2004.

SmartWay aims to reduce smog and poor air quality created by transportation emissions to decrease negative effects on U.S. citizens’ health and welfare. It does this by providing systems for recording fuel use and emissions, supporting new technologies and recommending efficient transportation providers, equipment and strategies for company decision makers.

Despite many advances, transportation still contributes more than 50 percent of nitrogen oxides, 30 percent of volatile organic compounds and 20 percent of particulate matter emissions in the nation, according to the EPA. “As freight activity in the United States increases, projections are that … growth in air emissions from freight will exceed growth in emissions from all other transportation activities, including passenger transportation,” the EPA website states.

In the U.S. and Canada, 3,542 trucking companies are SmartWay partners, and more than 250 serve as affiliates that promote sustainable strategies. The Minnesota Trucking Association supports these efforts and encourages members to join.

“Through the … SmartWay Transport Partnership, the trucking industry is working with government and businesses to quantify greenhouse gas emissions and take steps to reduce them,” the MTA website states.

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35

Grace Webb FEAtURE WRITER

WORKER SHORTAGE AFFECTS SEASONAL JOBS A

that’s not just retail. That’s just in general in Steele County. So that certainly compounds that challenge for people who are looking for that seasonal help.”

s the holidays approach, retail businesses across southeastern Minnesota are hiring seasonal workers—or at least, they’re trying. But a worker shortage throughout the state is making it difficult to find enough employees to fill these temporary spots.

YEAR-ROUND LOW NUMBERS

“The low employment rate in general certainly is making the seasonal hiring even more difficult,” said Brad Meier, president and CEO of the Owatonna Chamber of Commerce and Tourism. “There are quite frankly more jobs available than there are people to fill all of them right now, and

According to Mark Schultz, a regional labor market analyst for the Minnesota Department of Employment and Economic Development (DEED), Minnesota is experiencing an “incredibly low” job seeker-per-vacancy ratio, which has affected jobs all year and will continue into the holiday season.

Schultz said this ratio is particularly low in the southern region, with southeast Minnesota sitting at a 0.8-to-1 number — meaning that there are only eight unemployed people for every 10 job openings.

He added that the numbers have actually been increasing slightly; as of the fourth quarter (running from October-December) of 2017, southeast Minnesota’s ratio was 0.6.

“It’s not the lowest in the state, but it’s still pretty low,” Schultz said, adding that three other regions sit at .5-to-1, while the upper Minnesota Valley region has the www.forgesteelecounty.com | 45

best ratio at 1.3. “It’s a phenomenon that’s going on in every region.”

According to Schultz, it’s difficult to say just what is a healthy job seeker-to-vacancy ratio. During the recession, the southeast region shot up to 9.5-to-1, which was “definitely unhealthy.” As the area recovered, it hovered around 3-to-1.

Many factors affect this ratio, from unemployment to workforce participation rate. Minnesota has the second-largest workforce participation rate in the country—a solid 71.2 percent, according to DEED — and only 3.1 percent unemployment (again according to DEED). That number is even lower in Steele County, with unemployment down to 2.2 percent. It stands to reason, then, that there are fewer people still looking for work — which is a good thing for employees, but not so great for employers.

“From an employer perspective, it’s not a good thing because they just can’t find people to fill the openings,” Shultz said.

SEASONAL DIFFICULTIES The lack of available workers might be most obvious during “busy” shopping times, especially the winter holidays.

According to the most recent numbers from the second quarter of 2018 (running from April-June), there were about 250 job openings for supervisors in the area and 719 openings for retail sales workers.

While Schultz said it’s hard to make predictions about 2018’s fourth quarter, he pointed to last year, where retail job openings leapt from 316 in the second quarter to 780 in the fourth quarter.

“I can’t say for sure, but my best estimate would be based on trends, it’d be at least on par 46 |

with that, if not even higher,” he said. “We’ve got a lot of vacancies in retail, and we don’t have a lot of people to fill them.”

Schultz said one difficulty in attracting seasonal workers is the face that many openings are part-time. Even in the second quarter of this year, 67 percent of job vacancies were part-time. In addition, the median wage for retail sales workers in the area is $11.66 per hour. Schultz said this all mixes into a “triple threat”: low pay, part-time, short-term work that is unappealing to many job hunters.

“For someone who just needs a filler job or to make a little extra money, it’s a good opportunity for them,” Schultz said. “But it’s not a career move. [The average retail job] is not enough to meet the basic cost of living needs, especially when it’s part-time.”

aged 16-19 is “pretty low” in the area. In Minnesota, workers aged 16-19 have about a 53.5 labor force participation rate, according to Twin Cities Business. The Bureau of Labor Statistics reported that “youth” workers (16-24 years of age) tend to migrate towards service industry jobs, with only about 18 percent of these workers finding jobs in the retail industry.

“Area businesses are trying to engage younger workers,” Schultz said. “There’s room for improvement there.”

He added that area businesses are also trying to retain older workers longer as more Baby Boomers age out of the work force. Right now, Baby Boomers make up about 29 percent of the country’s labor force, according to the Pew Research Center. Meanwhile, AARP reports that 10,000 Baby Boomers reach traditional retirement every day.

Many don’t stop working as soon as they qualify for retirement, but many do—roughly 47 percent, according to the Harris Poll.

Walmart Supercenter #1038 in Waseca has found a way to address some of these concerns by simply not hiring temporary workers to fill their seasonal needs.

Instead, manager Kara Sturgill said they hired full-time permanent employees who can stay on after the holiday season ends.

“Businesses are trying to keep them on longer, or attract the retirees to come work at least for part-time hours,” Schultz said.

“We had some trouble finding workers this summer,” she said, “but we didn’t have any trouble leading up to the holiday season.”

Meier said he has seen Owatonna area business owners doing the same thing as they look for more seasonal employees.

EXPANDING THE APPLICANT POOL Schultz said that some businesses are getting creative when it comes to finding more available workers, from engaging younger workers to retaining older ones.

“It’s about expanding who you would consider for a job,” he said.

According to Schultz, the labor force participation rate for workers

“Employers are starting to be very creative about how they how find workers, whether it is maybe looking for a nontraditional workforce or pulling in some folks who’ve retired,” he said, adding that wages have increased as employers strive to fill those empty positions.

“They’re trying to find ways to have people there working that maybe in the past hadn’t been there.” 

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A PREVIEW OF THE CHRISTMAS BUYING SEASON ACROSS THE REGION

Winter weather in Minnesota presents its own set of problems as snow piles up higher and higher. (File photo)

PREPARING FOR A M A

s temperatures drop, Minnesotans are once again preparing for another winter season in a state that’s famous for sub-zero temperatures and relentless snowstorms. It’s not just average Minnesotans who need to winterize their vehicles, though—across southern Minnesota, outdoor businesses are also preparing for what is often their busiest season.

PREPARING THE EQUIPMENT According to Noah Kreitinger, who has worked at Dean’s Towing in Owatonna for 15 years, it’s crucial to winterize the business’s 20-plus trucks so that they don’t run into problems as the temperature drops. Kreitinger explained that he and his coworkers treat their trucks’ air systems to ensure there is no summer moisture left inside them, since that can cause the air brakes to freeze up and stop working.

“That’s an ongoing problem all winter long,” he said. “You can take them inside and warm them up, but it’s almost 48 |

impossible to get all the moisture out [if you don’t do it early]. It’s much easier to handle when it’s still warm out.”

Tom Sweet, founder of Sweet Towing and Repair, said that his business begins gearing up for the winter season weeks in advance, adding that they were already “halfway through” by the end of October. He said that the process is very similar to how regular people winterize their cars: checking hydraulic fluids, cables, chains and tires to make sure everything is in good shape. Sweet said they also add special snow tires to their trucks for the winter season.

“The best thing to do [for anyone] is get snow tires,” he stressed.

Meanwhile, Kreitinger said they don’t use snow tires at Dean’s, but they do order new tire chains every year.

“If [the chain] comes apart, it’ll do thousands of dollars of damage, so we just get new tire chains for all our big trucks,” he said.

While Dean’s and Sweet Towing focus on roadside assistance and auto repair, Owatonna Groundsmasters

Grace Webb FEAtURE WRITER

SPECIAL REPORT

A crew from Dean’s Towing recover a loaded semi that slid into a ditch on Interstate 35 during wintry conditions. (Submitted photo)

MINNESOTA WINTER PREPARING YOURSELF FOR WINTER The best way to stay safe on the road during snowy winter months is to be prepared, according to area experts in the business. Krietinger stresses the need to make sure your tires are in good shape, ensuring they’re properly inflated and have enough tread. He said it’s also important to check that your windshield wiper fluid is full and that your charging system is working correctly.

“It’s so much easier to handle that stuff when it’s slightly warm than when you’re on the side of the road,” he said. “Obviously, there’s always going to be something out of your control, but a lot of this stuff is preventable.

Turn your fan off before you turn off your car. I always shut my radio off and shut my fan off, so when I start it, it doesn’t have to try to run all that stuff.”

Sweet added that it’s important to make sure your coolant will function at 40 degrees below zero and echoed Krietinger’s concerns about tires.

“If you think your tires are questionable, replace them,” he said. “A good tire in the winter is No. 1.”

He added that it’s important to have a “snow emergency” kit in your car that includes a pair of boots, a heavy coat and a blanket.

“That way, you won’t be freezing while you wait [for help],” he explained. www.forgesteelecounty.com | 49

DON'T WAIT FOR A MOTOR CLUB has a thriving snow plow service in snowy months, and longtime employee Jake Busho said they start planning snow routes as early as late summer. Busho, who has worked at Groundsmasters his “entire life” (since it is a family business), said preparations include bidding new accounts, planning the routes, purchasing materials and buying new equipment if necessary.

“The biggest thing is, after we get the first part of the season, late summer/early fall, we’re [already] bidding snowstorm accounts,” he said.

THRIVING BUSINESS It may come as no surprise that towing businesses often receive more calls during winter months because of icy, snowy conditions. Kreitinger said Dean’s Towing sees about a 25 percent increase in business in the winter compared to the summer, and Busho said that Groundsmasters increases its normal 40-person staff to up to 60 full- and part-time employees during the winter months. Meanwhile, Sweet said winter is “definitely busier.”

“Obviously, you have an uptick of people going into the ditch,” Kreitinger said. “If you have a weak fuel pump or weak charging system, you’ll find that out in the winter. During the extreme cold, like last winter, you cannot believe the number of flat tires.”

Sweet said the majority of his business comes from “normal breakdown stuff,” as he calls it: batteries not starting, a belt that breaks, or a radiator that is acting up. Meanwhile, Owatonna Groundsmasters only winter work revolves around commercial plowing, so Busko said they’ll do salting or sanding during ice storms, but the rest of their downtime is spent repairing snow equipment, getting next season’s equipment ready, and perhaps doing some tree work. For Groundsmasters, de-winterizing the equipment takes almost as long as winterizing it, since it includes washing and neutralizing the salt off plows, greasing the sanders and doing maintenance to put it away until next winter.

The cold weather cuts both ways, though. While it brings great business for these companies, it also affects their own equipment. Kreitinger said last year, the cold was so pervasive that his trucks turned into “blocks of ice” that needed four batteries to start them.

According to Kreitinger, it’s more important to get somewhere safe after a breakdown than to wait for roadside assistance from companies such as AAA or Allstate’s Motor Club. He said these clubs tend to hunt for the cheapest towing option, not necessarily the closest, leaving members stranded for hours.

“I get to people who’ve sat for hours,” he said.

“Last winter, I had five or six people calling, crying, [because they’d] sat so long waiting for motor clubs. People need to realize that you don’t have to sit and wait for them. It’s not worth sitting on the side of the road for 3 hours.”

Instead, he urges people to call a local towing company to ensure they are safe and taken care of, and reach out to their motor clubs afterwards to figure out reimbursement. “[Some clubs] quit answering phones during a cold stretch,” he said. “Don’t wait for that. Just call somebody and get out of there.”

“We had to tow them to a warm place and charge the batteries and get the diesel treated,” he said.

STAYING SAFE While the winter season brings good business, all of these businesses are focused first on safety—both for their employees and the people they serve.

Kreitinger said that when numerous people are calling his business in need of towing, safety is always the top priority—meaning that Dean’s will usually rescue people on the side of the road or in a ditch before coming to help someone with a dead car in their driveway.

“We really cater to the police and try to keep the roads clear in those [snowy] periods,” he said. “If you call from the safety of your home, you’re going to get on the backburner because it’s just not dangerous.

People get frustrated about a 4-hour ETA, but we only have so many guys, and most of the time we’re running around the clock. It’s not necessarily first come first serve. It just comes down to public safety.”

But these workers need to be aware of their own safety,

Owatonna Groundsmasters, Inc.

Dean’s Towing

Sweet Towing and Repair

1520 State Ave NW 507-455-0081 www.groundsmasters.net Owatonna Groundsmasters, Inc.

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Dean’s Towing

Sweet Towing and Repair

50 |

too, he added, since assisting stranded drivers can often be extremely dangerous. Kreitinger’s vehicle has been hit twice while he was assisting a customer, while Busho said that people have hit his company’s plows while they were working on parking lots or while they were on the road. Sweet’s tow truck has also been hit while he was on the job.

“When you get out on the road, if it’s snowing, even if it doesn’t look slippery, slow down,” Sweet urged. “Nobody slows down in an inch of snow, but an inch of snow is just as slippery as six. When you get six inches, everyone has trouble getting around. It’s very dangerous out on the freeway, pulling someone out. You want to make a tow truck driver’s day? If you see them on the side of the road, move over to the other lane and slow down.”

" If someone calls for a battery change, we might say we’ll be there in 30 minutes, but state patrol might call us about someone on the side of the road, and we have to drop everyone and give that first priority. It’s not because we’re picking or choosing; you just can’t leave people sitting on the side of the road." ~ Noah Kreitinger, Dean’s Towing

According to the U.S. government’s latest workplace fatality census, driving a truck was the most hazardous occupation in the United States last year, and highway accidents were the leading cause of deaths of workers in all lines of work. In fact, according to AAA, a tow truck driver is killed every six days.

Kreitinger pointed out that Minnesota has a “Move Over Law” that requires drivers to keep over one full lane away from stopped emergency vehicles with flashing lights activated, and those emergency vehicles include tow trucks. Drivers are also required to slow down if they’re not able to safely move over a lane.

“Imagine when it’s just us and no warning in the middle of the night,” he said. “With all the distractions, it’s extraordinarily dangerous. When people break down, it’s not always in the best location. If it’s icy, if it’s poor visibility, it’s extremely dangerous.

Drive like it’s someone in your family.” 

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This website features a tab with the steps you need to get started, links to information about job and training opportunities in a variety of fields and an interactive searchable jobs database.

In addition, you can schedule one on one appointments to help you figure out your next steps.

Contact Anisha Zak to learn more through her OHS school email or AnishaZak@ workforcedevelopmentinc.org.

Steele County Works is a Collaboration of:

www.forgesteelecounty.com | 51

LOCAL LEARNING Ron Fleischmann South Central College

TURNING PASSION INTO A PAYCHECK

S

outhern Minnesotans with a passion for all things on four wheels have a lot to be excited about. With transportation careers in big demand, car and truck enthusiasts can turn their passion into a paycheck and South Central College has three outstanding programs to help prepare students entering into the revved-up world of engines, parts, dings and dents.

Anyone wanting to enter this fluid career area should feel confident about their choice. The demand for the great “American” motor car – whether it be American, Japanese, or German engineered – is as great as it’s ever been and shows no signs of slowing down. This means that for every automobile and truck sold, there will be years of scheduled maintenance, emergency repairs and realignments ahead for auto service, auto body and engine specialists providing job security far into the future.

Contemporary systems are complex and automotive service technicians must rely upon a comprehensive, hands-on education to become familiar with the many mechanical and electrical components. The Automotive Service program at SCC is a proven leader in providing students with the skills necessary for entry level employment in this ever changing industry. The courses are taught by Automotive Service Excellence (ASE) Certified Master Automobile Technicians and the program has been an ASE Education Foundation (formerly NATEF) Accredited Automotive Training Program since 1998.

Recently, SCC was awarded a grant to help update and expand its Automotive Service program. A $16,000 grant from the Bosch Community Fund will help the college add environmentally friendly hybrid and electric car technology in its curriculum. The funds will be combined with donations from other community partners and

52 |

used for curriculum development and the purchase of automotive training aids and a hybrid/electric vehicle.

South Central College also offers an Auto Body and Collision Technology program that provides ample opportunities to train for routine collision repair work or prepare for future auto body specialization. SCC’s Auto Body and Collision Technology instructors are I-CAR Platinum Class professionals, the highest designation possible and certified ASE Master Technicians. As an I-CAR training alliance member, the Auto Body program prepares students for industry standard ASE certifications and I-CAR Pro Level Technician status.

Finally, SCC offers the Agribusiness Service Technician program that trains students to work on diesel engines and equipment. With both gasoline and diesel equipment maintenance becoming increasingly advanced, expert technicians are in high demand. Graduates from this program are prepared to work for farm and industrial dealers, food processing companies, independent repair shops, trucking and bus companies, as well as related diesel industries.

As with all of its program offerings, the transportation programs at South Central College remain current and meet the demands of the marketplace. Instructors keep up with industry standards and practices and with up-to-date curriculum and certifications that are available. In this way, SCC continues to assist its students in finding meaningful, well-paying careers, while helping whole industry sectors find employees equipped with the necessary skills to support their products and services. Ron Fleischmann is the interim dean of career and technical education at South Central College

www.forgesteelecounty.com | 53

IN THE

FEB/MAR

ISSUE

WOMEN IN BUSINESS March is Women’s History Month — a time when our society acknowledges and celebrates the contributions of women. Of course, we’re of the opinion that those contributions ought to be acknowledged and celebrated every month, every week and every day. Still, we also like to take one edition every year — see our February-March 2018 edition — and dedicate it to women in business. We did it once and we’re doing it again. So back by popular demand, we will be celebrating the woman in Steele County who achieve wonderful things in Steele County every day. Watch out for the February/ March 2019 issue of Forge Magazine, where, once again, we will be talking to some of the indispensable women with leadership roles in business, government and the nonprofit sector, who together make Owatonna and Steele County a great place to live. Is that all there will be? Of course not. We’ll bring all the features, columns and local business news you’ve come to expect. Got a tip? Suggestions? Email Executive Editor Jeffrey Jackson at FORGE@owatonna.com or jjackson@owatonna.com. Until then, from all of us at Forge, happy holidays and a joyous 2019.

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