Prairie Business August 2013

August 2013

Building a Strong Workforce Industry, higher ed collaborations focus on specialized training

ALSO Making Headway Manufacturers see gradual bottom-line improvements

pg. 26

Teaching Teachers Engineers dedicate time, money to teacher internship program

pg. 32

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|INSIDE| AUGUST 2013 VOL 14 ISSUE 8

FEATURES

DEPARTMENTS 6 Editor’s Note

BY KRIS BEVILL

Always learning 8 Business Advice

BY MATTHEW D. MOHR

Limiting sales to create profit 10 Finance

BY MATT VARILEK

5 factors to consider when borrowing for your small business 12 Research & Technology

BY DELORE ZIMMERMAN

Staying on top 14 Economic Development

BY PAT COSTELLO

SD launches new economic development programs 16 Prairie News 20 Prairie People 22 Business Development Seeking a share of the shale boom 34 Architecture/Engineering 3D technology gives firm the desired edge

24 Teaming Up to Train Today's Workforce HIGHER EDUCATION

Collaboration between private industry and higher education institutions pays off

36 Entrepreneurs Passion for education leads to business venture 38 Internship Teaching teachers

30 Manufacturing Might MANUFACTURING

40 Energy

Manufacturers maintain optimistic outlook for continued growth as they confront health care, workforce challenges

41 Business to Business 44 Crew Camps Managing the Temporary 48 By the Numbers

Follow us on Twitter https://twitter.com/PrairieBiz Check us out on Facebook https://www.facebook.com/PrairieBusiness

On the Cover North Dakota State College of Science collaborates with Case IH to offer a specialized diesel technology program.

PHOTO: NORTH DAKOTA STATE COLLEGE OF SCIENCE

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Prairie Business Magazine August 2013

Scan this with your smartphone's QR Reader to visit our website.

Next Month The September issue of Prairie Business magazine will highlight what real estate developers look for in communities and explore the recent surge in investments from international development firms in western North Dakota. The issue will also include a look at the benefits of mobile marketing.

|EDITOR’S NOTE|

Always learning his issue takes a look at several aspects of education, from business-higher education partnerships to teacher internships.

Contributing writer Kylie Blanchard covers industry-higher education collaborations for her article, “Teaming Up to Train Today’s Workeforce.” Pick an industry and chances are there is a company in the area working with educators to provide students with industry-specific training. Kylie’s article provides a great snapshot of the diverse array of partnerships being forged in this way.

In “Teaching teachers,” we highlight a program developed in Fargo-Moorhead to provide K-12 teachers with a firsthand look at the engineering design process, the cornerstone of STEM (science, technology, engineering and math) learning. The program wouldn’t be possible without participating businesses, which provide financial support and a considerable amount of time training the teachers. Considering the hectic summer schedule of most engineers, it would be understandable if they passed on the extra work. But instead, companies I spoke with said it was worth the effort and they would do it again because they understand the value of providing real-life examples for teachers to share with the next generation of workers.

Finally, we’re happy to share the story of a teacher-turned-entrepreneur. After working as a teacher for nearly two decades, Ellen Jacobson made a career change and opened North Dakota’s first Sylvan Learning Center 18 years ago. Becoming a business owner with no prior experience has been challenging at times, but she is the first to say it’s nothing compared to the hard work of being a teacher. As we approach a new school year, that sentiment is a great reminder to thank the many teachers working tirelessly to shape our future business leaders.

T

KRIS BEVILL Editor kbevill@prairiebizmag.com

Knowing my

ONLINE

program is one of the nation’s best feels great.

Be seen. Be heard.

U.S. News & World R Repor eport reported that Minot State’s online graduate programs in business and MSU’’ss un undergraduate online programs ranked among the nation’s best online education programs. Recognizing Recognizing the growing significance of online education, we think you will find our programs affordable and of great value. Go to www w.MinotStateU.edu/online or call 1-800-777-0750.

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Prairie Business Magazine August 2013

Business Prairie

northern plains business resource

MIKE JACOBS, Publisher RONA JOHNSON, Executive Editor KRIS BEVILL, Editor BETH BOHLMAN, Circulation Manager KRIS WOLFF, Layout Design, Ad Design Sales Director:

JOHN FETSCH 701.212.1026 jfetsch@prairiebizmag.com Sales:

BRAD BOYD - western ND/western SD 800.641.0683 bboyd@prairiebizmag.com SHELLY LARSON - eastern ND/western MN 701.866.3628 slarson@prairiebizmag.com Editor: KRIS BEVILL 701.306.8561

kbevill@prairiebizmag.com

Editorial Advisors: Dwaine Chapel, Executive Director, Research Park at South Dakota State University; Bruce Gjovig, Director, Center for Innovation; Lisa Gulland-Nelson, Vice President, Marketing and P.R., Greater Fargo Moorhead EDC; Tonya Joe (T.J.) Hansen, Assistant Professor of Economics, Minnesota State University Moorhead; Dusty Johnson, Chief of Staff for South Dakota Gov. Dennis Daugaard’s office; Brekka Kramer, General Manager of Odney; Matthew Mohr, President/CEO, Dacotah Paper Company; Nancy Straw, President, West Central Initiative Prairie Business magazine is published monthly by the Grand Forks Herald and Forum Communications Company with offices at 375 2nd Avenue North, Grand Forks, ND 58203.

Qualifying subscriptions are available free of charge. Back issue quantities are limited and subject to availability ($2/copy prepaid). The opinions of writers featured in Prairie Business are their own. Unsolicited manuscripts, photographs, artwork are encouraged but will not be returned without a self-addressed, stamped envelope.

Subscriptions Free subscriptions are available online to qualified requestors at www.prairiebizmag.com Address corrections Prairie Business magazine PO Box 6008 Grand Forks, ND 58206-6008 Beth Bohlman: bbohlman@prairiebizmag.com Online www.prairiebizmag.com

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|BUSINESS ADVICE|

Limiting sales to create profit

BY MATTHEW D. MOHR

ne strategy for increasing short-term sales quickly is to have “limited time offers.”

Limiting the time of availability of a product leads to a sense of urgency with buyers. The strategy usually works well, especially in retail environments. A good strategy can also lead to higher profits.

When shopping with my daughter recently, she purchased some new makeup which was being sold under the approach of a limited edition. I asked my daughter why she would want to buy makeup which would be only available for a short time. She informed me the company limits production so you feel more unique, then about the time it’s customers would be finishing what they bought, the next limited edition is released. In essence, the cosmetics company created perpetual buyers of it’s products by having continual limited edition sales, plus the relative exclusivity or appearance of restricted supply allowed the sellers to charge a much higher price while insuring continued sales volume.

O

If you haven’t had a chance to meet in Minot, you really should. With state-of-the-art meeting facilities and the recent addition of over ten new hotels, Minot is the obvious place to plan your next convention or conference. We’re ready for you.

visitminot.org 1.800.264.2626 8

Prairie Business Magazine August 2013

Terry Redlin, the great artist from Watertown, S.D., established a huge business and generated great wealth through the release of limited edition prints of his artwork. At one time collectors essentially waited in line for his next print to be produced and sold. An active market for his artwork still exists. Redlin art is hung throughout the world due to the use of this limited edition sales strategy.

Perpetuating this strategy takes a very strong marketing group and the creative insight to produce new products over time to insure perpetual sales.

The strategy is a sophisticated enhancement of the old marketing notion of “flavor of the month.” Just about any business could use this approach to market its product as long as the creativity exists to keep it going.

PB

Matthew D. Mohr CEO, Dacotah Paper Co. mmohr@dacotahpaper.com

|FINANCE|

5 factors to consider when borrowing for your small business

BY MATT VARILEK

t the Small Business Administration, we are hearing from more entrepreneurs who feel now might be the right time to invest in starting or expanding a small business. Here are five factors to consider when borrowing to start or expand your small business:

A

1) Do your homework.

Have you prepared your business plan? Are your financials in order? These can be daunting questions, especially the first time you seek business financing.

They'll help you make sure your plan clearly expresses who your customers are, why they should do business with you and how you will compete to maintain market advantage and gain new customers.

Your plan also must communicate your expected business conditions, including a practical marketing strategy, and provide projected financial statements.

Lenders can usually see through financials that are too optimistic or lack insight. It's best to be candid and openly discuss the value and risks of your business assumptions.

2) Be passionate about your business.

If you aren't excited about your business, there's no way a lender will be. This is the place your sweat equity matters. Have you spent time learning your trade or perfecting your craft and put in the time to show yourself and others that you've found a business you're passionate about? Have you learned how to manage a small business through practical experience or by taking evening classes?

Potential lenders need to believe in you.

3) Know your credit rating and use it to your advantage.

Small business owners are successful because of their independence, ideas, passion and drive. But they generally aren't accountants, and as a result they are often unaware of just how important actively managing business credit is to their success. Start by taking a good hard look at your business and personal credit.

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Prairie Business Magazine August 2013

If your credit is not strong, work to improve it over time. Strong business credit can help small businesses ensure positive cash flow by securing more financing at better terms. Good credit can ensure that small businesses get financing when they need it. According to the SBA, insufficient or delayed financing is the second most common reason for business failure. For businesses with poor credit ratings, top national banks may increase loan interest rates an average of 8 to 12 percent, which increases overall expenses.

4) Get to know lenders in your local community.

Before requesting a loan, find out which lenders in your market make loans to small businesses like yours.

Not all lenders specialize in small business loans. Some focus only on firms in certain industries or avoid sectors they consider a high risk. Others are open to smaller businesses or startups, while some prefer to lend to more established firms.

Many lenders also work with SBA Loan Guaranty Programs and will promote themselves as an SBA lender with dedicated staff knowing how best to process and market different products.

5) Have skin in the game, and be prepared to offer collateral.

Lenders want to make sure that you will repay their loan and almost all of them will require you to have real equity in your business. Depending on the bank's policies, this can be from 30 to 50 percent for new and startup businesses. Collateral can consist of assets that are usable in the business as well as personal assets.

You know your business best and applying for a loan can be intimidating, especially for those doing it for the first time, but the SBA and our resource partners are willing to work with you every step of the way. PB Matt Varilek SBA Regional Administrator, Region VIII matthew.varilek@sba.gov

|RESEARCH & TECHNOLOGY|

Staying on top

BY DELORE ZIMMERMAN

orth Dakota’s recent good fortune has put it at the top of national rankings of economic performance. The western oil boom, a robust agriculture market and a highly capable manufacturing sector that is increasingly adept at reaching out to international markets are the primary ingredients of this recipe for success.

For those of us who have been involved in economic development initiatives over the last few decades this admittedly comes as a somewhat unexpected but welcome turn of events. Now, however, we must ask the question: What will it take to stay on top, not only here in North Dakota but also in the adjacent states and provinces that are integral parts of our larger regional economy? Some of the answers to this question can be gleaned by looking at rankings where we have not fared so well.

The U.S. Chamber of Commerce Foundation’s 2013 Enterprising States study, for example, ranked North Dakota No. 1 for overall economic performance among the 50 states. Yet, North Dakota ranks 48th for its share of high-tech businesses and 38th for its concentration of jobs in science, technology, engineering and math (STEM) occupations. Neighboring South Dakota fares just as poorly, ranking 46th for STEM job concentration and 40th for its share of high-tech businesses. Minnesota does much better, ranking 9th for STEM job concentration and 14th for its share of hightech businesses. It’s not a stretch, however, to conclude that Minnesota’s higher standing is due primarily to what is going on in the Twin Cities and that the regions bordering the Dakotas share their lower rankings.

Our state’s technology enterprise and career shortfall is confirmed by other nationally recognized studies.

N

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Prairie Business Magazine August 2013

The Milken Institute’s 2012 State Technology and Science Index ranked North Dakota 40th for its technology and science workforce and 33rd for technology concentration and dynamism. The good news is that since 2002 North Dakota has improved from an overall index ranking of 45th to 32nd, which is primarily attributed to investments in human capital and inputs into research and development. Risk capital and entrepreneurial infrastructure has also improved (from 50th to 38th) but together these rankings show that we have probably plateaued instead of surged forward compared to other states.

But does it really matter that our state and neighboring regional economies are underperforming in sprouting and growing science and technology-based ventures and careers? Is it worth our time and resources to go from a third-tier to second-tier state when we seem to be doing quite well already? If it is indeed worthy, which I fervently believe, then what steps must be taken?

A North Dakota Science and Technology Business Plan that builds on our existing, competitive industry sectors is a good first step. It would develop forwardlooking, integrated policies and an investment strategy for promoting invention, innovation and entrepreneurial activity, transferring technology from our universities and, most importantly, capture the imagination and aspirations of our young and seasoned scientists, technologists and entrepreneurs. PB Delore Zimmerman President, Praxis Strategy Group Executive Director, Red River Valley Research Corridor delore@praxissg.com Twitter: @DeloreZimmerman

! First unde undergraduate Software Engineering Major in North Dakota beginning fall 2013

! $10.3 mi million renovation and expansion of Rhoades Science Center completed in summer 2013 ! Great Pl Plains STEM Education Center providing professio professional development opportunities in science, technolo technology, engineering and mathematics for K–12 teachers and other public and private partners

! Online M Master of Education degree program ranked #22 in the nation, with new M.Ed. concentrations in element elementary education and English education, along with teaching and technology, teaching English language learners, technology education, and library an and information technologies

#1 1P Public Regional College in the Midwest for the ssecond year in a row!

www.vcsu.edu 1.800.532.8641 www.prairiebizmag.com

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|ECONOMIC DEVELOPMENT|

SD launches new economic development programs

BY PAT COSTELLO

n economic development, we are constantly building. Whether it is building new facilities, building a job pool, or building stronger communities, we are always building.

During this past legislative session, South Dakota legislators from both parties worked together to help us with these efforts, and in doing so, took a tremendous step forward for economic development. They created SB 235, and from that, the Building South Dakota legislation was born.

The Building South Dakota legislation is a package of programs that take a multi-faceted approach to economic development, focusing on education, housing, infrastructure, local economic development efforts, and large and small project needs. The Board of Economic Development administers four of the programs resulting from the legislation, with the South Dakota Housing Development Authority and the Department of Education administering the remaining two programs.

Here is a little on each of the board’s four programs: • The Economic Development Partnership Program is a grant program that provides matching funds to nonprofit development corporations, municipalities, counties or other political subdivisions of the state to assist with training needs, new staff, or elevating existing part-time staff, for the purpose of developing or expanding local and community economic development programs. The grants may be also be used to commence or replenish local revolving loan funds that develop or expand housing, community development and economic development programs.

• The Local Infrastructure Improvement Program provides grants to assist funding the construction or reconstruction of infrastructure for the purpose of serving economic development projects.

Any local development corporation or political subdivision of the state may apply.

• The Reinvestment Payment Program provides reinvestment payments to support companies in off-

I

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Prairie Business Magazine August 2013

setting the upfront costs associated with relocating or expanding operations, and/or upgrading equipment in South Dakota, and is intended for ventures that would not have occurred without the assistance. Under this program, project owners are eligible to receive a reinvestment payment that is not to exceed the South Dakota sales and use tax paid on project costs, on new or expanded facilities with project costs exceeding $20 million or equipment upgrades with costs exceeding $2 million.

• The South Dakota Jobs Grant Program is open to companies pursuing new or expanded facilities with total project costs of less than $20 million or equipment upgrades with total project costs of less than $2 million. The program provides grant funds that assist companies in offsetting the upfront costs associated with relocating or expanding operations, and/or upgrading equipment in South Dakota. Applications are considered based on the likelihood of whether or not the project would progress without the grant.

The Economic Development Partnership Program and the Local Infrastructure Improvement Program closed the first round of applications on July 31. The next round of applications for these programs closes on Oct. 31. The Reinvestment Payment Program and the South Dakota Jobs Grant Program both accept applications on an ongoing basis.

Each of these programs will play a vital part in boosting economic development efforts in South Dakota. I’m looking forward to using each of these new tools to help businesses create jobs and foster development in our state.

For more information and for applications, please visit www.sdreadytowork.com, and click on the “Financing & Incentives” tab. PB Pat Costello Commissioner, S.D. Governor’s Office of Economic Development Pat.Costello@state.sd.us Twitter: @sdgoed

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Prairie News

Industry News & Trends

Apartment communities under construction in Williston

The Dakota Ridge Apartments project is one of multiple large apartment communities currently under construction in Williston, N.D. IMAGE: GRANITE PEAK PARTNERS INC.

A ground breaking was recently held for a 300-unit apartment community known as North Gate Apartment Homes in Williston, N.D. The $39.5 million high-end apartment project is a partnership between Bozeman, Mont.-based Braxton Development and Indiana-based The Sterling Group and will consist of 12 buildings with apartments ranging in rent from $1,950 to $3,500 per month. Features will include a locker area in each building where residents can store items with oil residue. The property is expected to open next spring. A sister property, dubbed Sierra Ridge Apartment Homes, is located in Dickinson, N.D. Santa Barbara, Calif.-based real estate development firm Granite Peak Partners Inc. recently broke ground on a $68 million, 300-unit apartment community. The first phase of the Dakota Ridge Apartments project, consisting of six buildings housing 180 two- and three-bedroom apartments, is expected to be complete next May. The entire project consists of 10 buildings and a clubhouse. Unique features will include mudrooms in each apartment and extra-large garages designed to accommodate oversize pickup trucks. Partners on the project include Minneapolis-based Adolfson and Peterson as general contractor, Bismarck-based engineering firm KLJ and property managers Greystar Real Estate Partners.

Work begins on Sanford Health’s Bagley clinic A groundbreaking ceremony was held June 26 for a Sanford Health clinic in Bagley, Minn.

Kraus-Anderson Construction Co. is building the approximately 10,800-square-foot clinic and Bemidji, Minn.-based MJ Architectural Studios Inc. is designing the facility.

The $1.5 million project is being developed

by Greater Bemidji, which will lease the space to Sanford Health.

DSU to offer accounting degrees online Beginning this fall, Dakota State University in Madison, S.D., will begin offering bachelor of business administration degrees in accounting and its bachelor of science degrees in professional accounting online. The online option is an effort to provide added convenience for commuting students and to offer DSU degrees to a wider audience.

NJ engineering firm expands to Bismarck Langan Engineering and Environmental Services, a New Jersey-based site engineering

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Prairie Business Magazine August 2013

and environmental consulting services firm with nearly 700 employees, recently opened a regional office in Bismarck, N.D., in order to support opportunities related to the Bakken region.

According to the firm, its expansion to North Dakota is an outgrowth of work it conducted in the Marcellus and Utica shale gas plays in Pennsylvania, West Virginia and Ohio.

SDTBC selects 6 companies for Accelerator program Six entrepreneurial teams have been selected to take part in this year's Accelerator program at the South Dakota Technology Business Center. Selected participants are: Braced With Style, FarmCast Group, Fointar, Sidewalk Technologies, Nanofiber Seperations LLC and Prom-tect SD. Entrepreneurs will attend monthly, one-day sessions for six months while preparing to grow their businesses and pitch to investors and will also compete for portions of a $20,000 pool of funds and in-kind services.

The 2013 Accelerator program is sponsored by Forward Sioux Falls and South Dakota EPSCoR — the Experimental Program to Stimulate Competitive Research. EPSCoR is funded by the National Science Foundation.

Eide Bailly adds Utah firm Lake, Hill & Myers, a Salt Lake City-based CPA (certified public accountant) firm, joined Eide Bailly July 1 as the company’s second Utah location. Ogden, Utah-based Schmitt, Griffiths, Smith & Co. joined Eide Bailly in November 2012. Dave Stende, managing partner/CEO at Eide Bailly said the addition of a second firm will strengthen the company’s presence in the western region of the U.S. The company has 21 offices in 10 states west of the Mississippi River.

LHM brings 24 employees to Eide Bailly, including five partners. Kevin Anderson will serve as partner-in-charge of both Utah offices.

He also serves in that role for the company’s Boise, Idaho, office.

Eide Bailly’s total revenues for the fiscal year ending April 30, 2013 totaled $167 million.

LHM is expected to add $3.5 million to the combined firm.

Raven Industries collaborates with Google Raven Industries Inc. is involved in a pilot project with Google to provide high-speed wireless Internet accessibility to rural, remote and underserved areas of the world. Raven is design-

|PRAIRIE NEWS| ing high-tech balloons as part of Project Loon, which will be used as a platform for providing Internet access to hard-to-reach regions. A successful trial was held in June in New Zealand involving 30 balloons provided by Raven Aerostar. According to Raven Aerostar, the project is in its early stages. The company expects several years of testing and engineering advancements as the project is expanded to other countries.

DFC Consultants gains BBB accreditation Fargo-based DFC Consultants Ltd., a software solutions company specializing in Microsoft Dynamics GP, CRM and DFC Property Management software, has received an A+ rating from the Better Business Bureau for its positive track record, honesty, transparency and integrity. DFC has been in business for 24 years and maintains offices in Fargo, Bismarck and Dickinson, N.D. The company has seen a 20 percent customer growth rate over the past three years.

Home of Economy expands in Jamestown Home of Economy, a retail store with six locations throughout North Dakota, is relocating its Jamestown store to the recently closed Kmart site, about one mile south of its current location. The 87,000square-foot space will make the Jamestown store the largest Home of

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|PRAIRIE NEWS|

The Cambria Suites West Fargo and nearby West Fargo Convention Center are expected to open in spring 2014. IMAGE: KAJ HOSPITALITY

Cambria Suites expands to ND Choice Hotels International Inc. and South Dakota-based KAJ Hospitality have begun construction of a Cambria Suites in West Fargo, N.D. The four-story, 103-room hotel and 15,000-square-foot conference center is expected to open next spring. It will be the first Cambria Suites

Economy in the company’s history. The company plans to hire additional staff to man the larger location and will add full tire service to the Jamestown store’s offerings. The new store is expected to open mid-August.

Home of Economy is headquartered in Grand Forks and also has stores in Devils Lake, Grafton, Williston and Minot.

ND projects receive USDA loan guarantees Jasper Schneider, USDA Rural Development director for North Dakota, announced that the department has awarded more than $5 million in loan guarantees for two projects in the state.

Horsch Anderson LLC in Mapleton received a $5 million loan guarantee to construct an agricultural equipment manufacturing facility. When complete, the plant is expected to employ 40 people. Bell State Bank and Trust of Fargo partnered with the USDA on the guarantee.

Mayville State University Foundation received a $375,000 loan guarantee to rehabilitate Northwest Hall into an alumni center.

Goose River Bank of Mayville partnered with the USDA on the guarantee.

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Prairie Business Magazine August 2013

in North Dakota.

KAJ Hospitality, led by father-son team Kevin and Aaron Johnson, is owner/developer of the hotel and conference center. KAJ Hospitality has offices in Sioux Falls and Mitchell, S.D., and Wichita, Kan.

Avera expands outpatient therapy Avera Queen of Peace Hospital has acquired University Physical Therapy in Mitchell, S.D. The outpatient rehab center will be called Avera University Physical Therapy. The acquisition was made to expand Avera’s outpatient presence in Mitchell, according to the organization. Avera plans to retain the facility’s existing staff. Scott Houwman, who established University Physical Therapy in 1998, will continue in his role as physical therapist at the facility in addition to becoming sports enhancement and outreach therapy coordinator for Avera.

Rapid City firm nabs SD’s first ADDY award Rapid City, S.D.-based marketing and communications firm Message received a National Gold ADDY award during the 2013 American Advertising Awards for a video created on behalf of Black Hills Ammunition. It was the first National Gold ADDY awarded to a South Dakota advertiser.

The American Advertising Awards (formerly the National ADDY Awards) receives

more than 60,000 entries annually. Entries are judged at local, regional and national levels as part of the selection process.

M State, MSUM partner offer reduced tuition program Minnesota State Community and Technical College has launched a program, dubbed up2U, which will allow M State graduates to attend their junior year at Minnesota State University Moorhead at reduced rates.

To qualify, students must enroll in at least nine credits at any of M State’s four campuses or eCampus, maintain a grade point average of at least 2.0 and complete a transfer degree within three years, and then enroll at MSUM to complete a four-year degree. In return, students may receive up to a full-year scholarship for one year at MSUM, equating to a savings of more than $4,000.

M State expects about 150 students to participate in the program this year.

First International opens Moorhead branch First International Bank & Trust recently held a grand opening for its newest location in

|PRAIRIE NEWS|

Daktronics and Sony Electronics will team up to provide a multi-million dollar video display installation at Levi’s Stadium in Santa Clara, Calif. PHOTO: DAKTRONICS

Daktronics, Sony partner to make video super system Brookings, S.D.-based Daktronics, together with Sony Electronics, will manufacture a true high-definition integrated LED video super system for Levi’s Stadium in Santa Clara, Calif. The stadium, opening in 2014, will be the new home of the San Francisco 49ers.

The multi-million dollar installation will include Daktronics’ latest

Moorhead, Minn. While the bank has served Moorhead customers for some time, the new store is its first Minnesota location and was opened in order to accommodate Moorhead’s growth. Earlier this year, the bank also celebrated grand openings at new locations in Williston and Minot, N.D. Established in 1910, the bank is owned by Watford City Bancschares Inc.

offering — digital audio mesh. The product consists of freeform LED elements which are mounted over the speaker system, allowing sound to pass through uninhibited while providing full video capability in a space that would traditionally be unusable.

The University of North Dakota Aerospace Foundation recently provided $25,000 to the Los Angeles Unified School District’s aircraft mechanics school. The donation will be used to award scholarships to low-income students pursuing an education in fields such as trained airframe and power plant mechanics.

South Dakota State University, South Dakota School of Mines & Technology, the University of South Dakota and private-sector involvement from Avera Health and Sanford Health, according to the South Dakota Board of Regents. Researchers will use the center to investigate new disease resistant and more productive plants and methods to heal injuries and maintain human health.

Additionally, two new Governor Research Centers — Advanced Manufacturing Process Technology Transition and Training, and Composite and Nanocomposite Advanced Manufacturing — will be located on the SDSM&T campus. Centers were chosen based on strong industry relations with companies such as Raven Technologies, Falcon Plastics and RPM, as well as out-of-state companies such as aircraft component manufacturer MOOG.

SD adds Governor Research Centers

Dickinson named top small town in US

A new South Dakota Research & Innovation Center has been created to link university-based research and National Science Foundation research priorities. The new center reflects collaboration among researchers from

Livability.com has named Dickinson, N.D., the Top Small Town in the U.S., based on its population and economic growth rate, employment trends, cost of living and other economic factors as well as quality of life. Brookings, S.D.,

UND Aerospace Foundation donates to Calif. school

ranked fifth on the Top 10 list. Alexandria, Minn., took seventh place.

Jamestown Regional Med Center partners with Sanford Jamestown Regional Medical Center has partnered with Sanford Health to provide electronic health records (EHRs) for its patients and to pursue a plan to offer expanded services, including cancer care. JRMC, a 25-bed facility, will continue to operate as an independent, community-owned hospital.

ND leads nation in housing development According to estimates from the U.S. Census, North Dakota’s housing development rate grew by 2.3 percent last year, more than any other state. The national average growth rate was just 0.3 percent. Williams and Ward counties, home to Williston and Minot, ranked first and second in the nation in terms of growth in new housing development.

More than 7,000 housing units were added in the state last year.

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|PRAIRIE PEOPLE| Godlewski to oversee Shingobee Builders Minn., ND projects

NCTC hires vp of academic, student affairs

Carey Castle

Northland Community and Technical College has hired Carey Castle to serve as vice president of academic and student affairs. He is replacing Kent Hanson, who accepted the presidency at AnokaRamsey Community College and Anoka Technical College.

Castle has 12 years of progressive leadership experience in higher education and served 26 years in the United States Air Force. Prior to joining Northland, he was the associate vice president for education at Greenville Technical College in Greenville, S.C.

Tony Godlewski

Bremer Bank names Erickson to lead Fargo charter

Dillman named to Interstate Engineering board

Travis Dillman

Travis Dillman has been named corporate secretary of Jamestown, N.D.-based Interstate Engineering’s board of directors. Dillman, a principal engineer, has worked at the company since 1997 and has expertise in the design and rehabilitation of streets, water, sewer and other infrastructure projects.

Russ Erickson

Russ Erickson has been appointed president and CEO of Bremer Bank's Fargo charter. He will oversee all operations, staff and business at the bank's 10 North Dakota locations and its locations in Detroit Lakes, Moorhead and Perham, Minn.

Erickson has worked at Bremer for 32 years, most recently serving as president and CEO of the Grand Forks charter.

N.D. Guaranty & Title Co. selects new manager

Wells Fargo names Skaley business relationship manager

Jessica Holcolm has been promoted to manager of North Dakota Guaranty & Title Co.’s Bismarck closing office. Tim Pearson, president of the company, appointed Holcolm to the role and said her extensive background in title and closing made her well-suited for the new position.

Curt Skaley has been named business relationship manager for Wells Fargo in Bismarck, N.D. In this role, he will work with business customers to help meet their commercial deposit, cash management and credit needs.

Skaley joined Wells Fargo in 2010 as a personal banker in Sturgis, S.D. In April 2012, he transferred to Bismarck as a business banking trainee.

Jessica Holcolm

Regional Minn. Job Service team wins state recognition

The northwest/north central Minnesota Job Service team includes members representing Bemidji, Detroit Lakes, Moorhead, Fergus Falls, Alexandria, Brainerd, Crookston and Thief River Falls.

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Loretto, Minn.-based Shingobee Builders Inc. has promoted Tony Godlewski to vice president in charge of the company’s St. Cloud, Minn., office, where he will oversee the project management team providing construction services in greater Minnesota and North Dakota. Godlewski has worked for 20 years as a project manager at the company and recently led its expansion into North Dakota, managing several commercial projects in the Bakken region.

Prairie Business Magazine August 2013

Curt Skaley

The Minnesota Job Service team from the northwest/north central region has been named “Job Service Team of the Year” by the Minnesota Department of Employment & Economic Development.

The first-time award, announced at the June 13 Workforce Development Training in Rochester, Minn., recognizes the team that provides “outstanding service to job-seeking customers, exceptional returns to taxpayer dollars and a model of performance as a team.” It also recognized that the northwest/north central team "has functioned strongly and increased their effectiveness.”

Those honored include: Tim Qualley, Melody Gorden, Angele Hartell, (Bemidji), Steve Retzer (Detroit Lakes/Moorhead), Rick Schara and John Weisenberger (Fergus Falls) Sam Kuehl and Karen Wells (Alexandria), Trudi Amundson, Peter Svendsen, Jack Gagnon, Kris Henifin and Cathy Kliber (Brainerd), Jaclyn Brekken, Bonny Stechmann (Crookston/Thief River Falls).

|PRAIRIE PEOPLE|

Building Quality Assurance

Dave West

NMF announces staff changes Dave West, senior program officer of business finance at the Northwest Minnesota Foundation, has retired from the position and is being replaced by Diane Morey, who previously served as senior program officer – business development.

West began working for NMF, then the Northwest Initiative Fund, in 1990 and had an integral role in building its loan portfolio from three loans to a current portfolio valued at $20 million.

Amy Tobkin will move into Morey’s previous position. Tobkin had been serving as a business development specialist for NMF and will be replaced in that role by Phil Knutson.

Knutson most recently worked as the development director for the Community Violence Intervention Center in Grand Forks, N.D.

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www.prairiebizmag.com

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|BUSINESS DEVELOPMENT|

Seeking a share of the shale boom SD launches study to evaluate ND’s Williston Basin-related activities

BY KRIS BEVILL

s the oil and gas industry continues to drive billions of dollars of activity in North Dakota, its southerly neighbor is looking for ways it too can benefit from the economic boom. In May, the Governor’s Office of Economic Development hired Black Hills Business Strategy to conduct a 14-month-long study to evaluate opportunities for the state to capture a bigger piece of the energy pie.

Hunter Roberts, state energy policy director, says some South Dakota businesses are already reaping the benefits of North Dakota’s boom, particularly in the areas of manufacturing, modular home construction and professional services. “With South Dakota’s proximity to the Bakken shale and Williston Basin, we are really positioned well to accelerate activity in this industry,” he says. “We are not only looking to bring new business in to South Dakota, but also to assist our existing companies that have the potential to serve this market.”

Black Hills Business Strategy is a Rapid City,

A

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Prairie Business Magazine August 2013

S.D.-based consulting firm that specializes in management consulting, turnarounds, mergers and acquisitions. Jim Quinn, managing partner, says several members of the firm have years of experience working for the oil and gas industry and therefore can provide a unique perspective to the South Dakota study.

“How do you actually penetrate that market? If you’re not up there day in and day out you may not know about an opportunity, or even if you are, you get so inundated because of the sheer volume of activity around you that you may miss it,” he says. “Having this independent outsider look at it, and with our oil industry experience, we can provide a valuable resource for the state and South Dakota companies.”

The study will be split into three stages. The first stage, nearly complete at press time in mid-July, is focused on identifying operators, subcontractors and suppliers in the Williston Basin that offer the best opportunities for job creation in South Dakota.

The second stage of the project will consist of one-on-one conversations with identified compa-

|BUSINESS DEVELOPMENT|

nies to learn what products or services South Dakota companies can offer them. “What we’re really trying to target are the things that they’re either having trouble obtaining or they’re paying high prices on or the quality is not quite what they expect,” Quinn says.

That portion of the study is expected to take about four months to complete.

Finally, the firm will work with the GOED to identify South Dakota companies that may be able to meet the Williston Basin’s unmet demands. The state may also explore opportunities for outside companies to relocate or set up branch offices in the state. A road map of the oil and gas supply chain will be created and shared with South Dakota businesses with the intent of expediting the sales process for companies interested in entering the supply chain.

The GOED will also continue to exhibit at trade shows in the region to promote opportunities in the state. “We feel this is a good plan to assist our businesses in capturing the oil boom opportunity, but ultimately it is up to business to take the risk, learn where they fit in the industry, make the sales and to capture the opportunity for themselves,” he says.

The overall goal of the project is to create jobs. But if that effort is successful, it is also possible that new job opportunities, combined with quality of life differences between Bakken and South Dakota communities, will help limit the number of South Dakotans migrating north to pursue oil field work. “We can offer an opportunity for them to get out of what I call ‘the blast zone’ of the boom itself,” Quinn says.

“You’re not going to stop the guys who are after the money, but if they have an opportunity to get a good, quality job in their area of expertise, work for a small company here, keep the family environment and not have to put up with man camps, I think we could attract a lot of these guys to stay here instead of go up there.” PB Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

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|HIGHER EDUCATION|

Teaming Up to Train Today’s Workforce Collaboration between private industry and higher education institutions pays off

BY KYLIE BLANCHARD

North Dakota State College of Science collaborates with Case IH to offer a specialized diesel technology program.

Class size is limited to about 20 students annually.

PHOTO: NORTH DAKOTA STATE COLLEGE OF SCIENCE

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Prairie Business Magazine August 2013

A diesel technology student at North Dakota State College of Science in Wahpeton, N.D., works on a Case IH tractor during a specialized training program developed jointly by the company and college. PHOTO: NORTH DAKOTA STATE COLLEGE OF SCIENCE

ooperation between industry and higher education plays an important role in building a strong workforce for the future. Across the region, businesses are experiencing the benefits of working with colleges and universities to develop programs that prepare students with the skill sets to meet their workforce needs.

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Developing UAS technologies The University of North Dakota in Grand Forks; Northland Community & Technical College in Thief River Falls, Minn.; and Northrop Grumman Aerospace Systems, a leading manufacturer of unmanned aerial systems (UAS) technologies based in Redondo Beach, Calif., have recently found success in collaboratively developing UAS training programs and technologies through the schools’ aerospace programs.

“This relationship started to develop in 2009, with preliminary meetings and discussions about how our institutions could work together,” says Dan Klug, chief development officer at Northland. “Northland is one of the premier schools for aerospace maintenance, and UND is one of the premier schools for training pilots. We seemed to complement each other well.”

“The collaboration really covers the full gamut of technologies in the aviation industry,” adds Jonathan Beck, Northland’s UAS program manager. “The aviation industry is changing so quickly, it takes the feedback of industry leaders and other institutions to ensure our programs are meeting the needs of tomorrow’s workforce.”

Klug says the strategic alliance helps to identify opportunities in unmanned aircraft technologies. Currently, Northland is training UAS maintenance crews and data analysts and UND is working towards training UAS pilots and sensor operators.

“Northrop Grumman is currently helping UND to get approval from the State Department for license to train unmanned aircraft pilots, and our institution is working to develop a training system,” says Alan Palmer, director of the UND Unmanned Aerial Systems Center of Excellence.

Palmer says having a relationship with a large company brings many benefits to the schools. “UND and Northland want to be associated with Northrop Grumman because we want to create opportunities for our students. We want to educate and train our students so they can get great jobs within the industry.”

To date, Northrop Grumman has hired three of Northland’s UAS maintenance graduates. “This relationship allows the college to do what it does best, train people and respond to industry needs in the state, nation and internationally,” Klug says. “We truly believe this alliance demonstrates the opportunity for UAS technology to add a strong industry sector to this region.”

Diesel tech program At the start of 2013, the North Dakota State College of Science in Wahpeton and North Dakota Case IH dealers unveiled a two-year diesel technology program focused on Case IH agricultural equipment and technologies.

“Case IH dealers throughout North Dakota asked NDSCS to

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|HIGHER EDUCATION|

The University of North Dakota, Northland Community & Technical College and Northrop Grumman Aerospace Systems collaborate to provide unmanned aerial systems technologies training. PHOTO: NORTHLAND COMMUNITY & TECHNICAL COLLEGE

develop a customized curriculum that would focus on Case IH equipment and technology,” says Barbara Bang, dean of the NDSCS Technologies & Services Division. “The need for skilled diesel technicians is at a critical point for their companies.”

Bang says Case IH dealers worked with NDSCS faculty and staff for two years to develop the program. “This is a collaborative effort where the dealers provide the resources, including equipment and technology, to be used in the classroom and NDSCS provides instruction, facilities and equipment.”

Each student entering the program is sponsored by a participating Case IH dealer with periodic on-site internships built into the program’s curriculum. When the student graduates, the intent of the program is they will have full-time employment with the dealer.

“The curriculum is designed to include all basic diesel technology theory and extensive hands-on laboratory experience, but much of it is focused on Case IH specific equipment and technology,” Bang says, adding the type of sponsorship provided to each student is determined by the dealer and could include financial assistance, tuition coverage and tools.

“As we continue to provide best-in-class solutions for our customers and suppliers, we must invest in recruiting and educating future technicians throughout our system,” David Meyer, Titan Machinery chairman and CEO, said in a January press release announcing the partnership.

“Partnering with NDSCS allows North Dakota Case IH dealers to ensure the ongoing quality of the technicians pipeline in our state.”

Twenty-two freshmen will be accepted into the program for the upcoming fall semester, according to Bang. “This program is our way of

responding to strong industry and business requests.”

Developing engineering talent The relationship between Rapid City’s South Dakota School of Mines & Technology and Caterpillar Inc., a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, has been ongoing for nearly four decades. However, it was recently expanded through the establishment of the Black Hills Engineering Design Center in the Black Hills Business Development Center located on the SDSM&T campus.

“Six years ago when the Black Hills Business Development Center first opened, a Caterpillar employee and SDSMT alumni felt it would be logical to open the design center in the development center to be close to students and graduates,” says Terri Haverly, executive director of the Black Hills Business Development Center.

Wayne Baumberger, facility manager of the Black Hills Engineering Design Center, says this arrangement has provided Caterpillar with the opportunity to recruit engineering talent from SDSM&T. “The Black Hills Engineering Design Center provides design detailing and engineering services to the business units within Caterpillar. Caterpillar hires individuals to fill design technician and engineering rolls and we typically hire local talent,” he says. “We offer a variety of technical positions that require either associates degrees or engineering degrees, and we also have internships available for these positions.”

The school provides a talent pipeline of students for internships and full-time positions, says Darrell Sawyer, director of the SDSM&T Career (continued on page 28)

26

Prairie Business Magazine August 2013

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|HIGHER EDUCATION| (continued from page 26)

and Professional Development Center. “This partnership provides SDSM&T students and graduates with excellent opportunities in the local area for internships and eventually full-time positions,” he notes. “It also provides opportunities for SDSM&T alumni currently working outside the region to move back to the Black Hills.”

“Caterpillar is a world-class company with a long-standing history,” Haverly says. “When we talk about attracting companies that create the kinds of jobs that will keep our young people here, this is exactly the type of company we mean.”

Students gain experience The collaboration between South Dakota State University, Brookings, and Brookings Municipalities Utilities has been in place since 1981, providing educational support for the university and filling staffing needs for the BMU wastewater treatment plant.

“It provides a valuable hands-on experience for the students that helps them become better designers and engineers,” says Christopher Schmit, director of the SDSU Water and Environmental Engineering Research Center. “Furthermore, it provides stability for the graduate programs by providing assistantships that allow the program to recruit more students. Lastly, the partnership allows access to the wastewater treatment plant and its staff, and this access is used to help perform research projects.”

The program at the wastewater treatment plant allows SDSU to provide student operators during all night and overnight shifts. SDSU provides operating personnel for 16 hours per weekday and 24 hours on weekends

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and holidays. The students make rounds at the plant, take readings of the processes and equipment, perform internal testing, respond to alarms and adjust the plant accordingly to make sure it is running properly.

“The program has provided a consistent labor base for operating the facility,” says Paul Melby, BMU utilities operations manager. “The Brookings Utility Board has been very satisfied with the collaboration between SDSU and BMU, and the program and the program directors have met or exceeded all expectations.”

Schmit says researchers are also available to BMU to help solve technical and operational problems at the plant. “These partnerships highlight the significant advantages of working with and having universities available to the public. The universities provide a highly talented pool of individuals that allows these entities to get highly trained and educated individuals to work on problems and, in the case of the BMU, to help operate the plant.

The partnerships also allow access to state-of-the-art equipment and technology at the universities that may not be available to the general public.”

Schmit says the collaboration also provides the necessary tools to train the region’s future workforce. “The university relies on these partnerships to bring resources and problems to us so the university can do what it does best and help to solve problems while training new members of the workforce to add to the economic development of the state and region.”

PB

Kylie Blanchard Contributing writer 701-391-0373, kylie.blanchard@hotmail.com

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Prairie Business Magazine February 2012

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7KH %HQHÀWV RI &RPPLVVLRQLQJ Commissioned buildings lower operating costs increase occupant comfort

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+DQGV RQ $SSURDFK Finding a commissioning agent that spends time to go back out and verify each item is crucial to making sure the components are installed corUHFWO\ (DFK GHÀFLHQF\ LWHP YDULDQFH LQ FRQVWUXFWLRQ IURP GHVLJQ VKRXOG be individually tracked until there is a satisfactory resolution.

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Showplace Wood Products employee Clint Struiksma assembles cabinetry at the company’s South Dakota manufacturing facility.

PHOTO: SHOWPLACE WOOD PRODUCTS

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Prairie Business Magazine August 2013

|MANUFACTURING|

Manufacturing Might Manufacturers maintain optimistic outlook as they confront health care, workforce challenges

BY KRIS BEVILL

ince 2008, Enterprise Minnesota has been regularly checking the pulse of the state’s manufacturing industry by conducting an annual survey of small- to mid-sized manufacturers, asking them to provide the company outlook and explain the issues they are confronting. Bob Kill, president of the nonprofit consulting firm, which serves as Minnesota’s affiliate of the federal government’s Manufacturing Extension Partnership program, says it is the most in-depth survey of its kind in the nation. This year’s survey encompasses the views of 400 manufacturing executives from a cross-section of Minnesota companies. As in previous years, pollsters asked participants to provide input on a variety of topics, including the potential for industry growth, changes in revenue, the federal government budget, work force and recruitment and health care. While the survey includes only Minnesota manufacturers, Kill says the findings could also be applied to the Dakotas and other surrounding states.

Overall, manufacturers in Minnesota reported cautious optimism regarding the current state of the manufacturing industry and expressed more confidence in the financial future of their companies and in the future of the industry compared to the cusp of the recession in 2008, as would be expected.

For the fifth year in a row, Minnesota’s manufacturers said health care coverage is the most important issue facing their companies. The majority of survey participants said they expect the problem to get worse before it gets better. More executives also now view health care as a recruitment tool than ever before, although the number of firms reporting that they offer some type of wellness or

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|MANUFACTURING| health management program is on the decline. Only 30 percent of participating firms offered those types of benefits this year, compared to 31 percent last year and 34 percent in 2011.

Kill noted this year’s forecast is a more gray outlook than previous years because several of the factors contributing to the overall outlook are outside of the industry’s control. For example, this year, for the first time ever, uncertainty surrounding the federal budget and taxes shared the top spot with health care as the No. 1 concern among survey participants. Concern over the ability to attract and retain employees also continues to increase, growing from 14 percent in 2011 to around 30 percent today.

Dave Thomas, CEO of Detroit Lakes, Minn.-based control products manufacturing firm SJE Rhombus says his company is experiencing a situation similar to what is reflected in the State of Manufacturing report. While business for the company has increased somewhat this year and is expected to continue to increase in coming years, his outlook for the industry is cautiously optimistic. “We see it as being stronger than it’s been, but certainly not the best of times,” he says.

“We’re very happy with our progress. We’re happy with how the markets are developing. But there’s still some headwinds that we’re battling in terms of economic uncertainty, health care cost uncertainty and government spending uncertainty.”

SJE Rhombus employs approximately 400 people companywide, and about half of them work at the company’s headquarters in Detroit Lakes. Thomas says workforce recruitment is always a concern, but the company boasts strong employee retention, which he credits to the company being employee owned and to efforts made to ensure workplace pride. He agrees that rising health care costs and the impacts of the Affordable Care Act are major concerns and says the company is still evaluating how to deal with anticipated changes.

Paul Sova, president and chief operating officer of Harrisburg, S.D.-based cabinet maker Showplace Wood Products, says his company is also continuing to evaluate how best to handle health care changes in coming years. The company has so far absorbed increases in health care costs, but it’s unclear how long that trend can continue. He estimates that fees and taxes associated with the implementation of the Affordable Care Act next year will cost Showplace $100,000.

But while some companies are opting to drop health care plans for employees as costs increase, Sova says that is not an option Showplace is willing to entertain. “We believe, especially in this environment, as competitive as it is, that to get people to come to work we need to offer benefits that are top flight and we will continue to do that,” he says.

Among the benefits Showplace offers are an on-site fit-

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Prairie Business Magazine February 2012

ness center and regular visits from a physician’s assistant to provide checkups for company employees and their children.

The company is also 100 percent employee owned. Still, Sova says workforce recruitment and retention continues to be a challenge for all light manufacturers in South Dakota, due to the state’s overall low unemployment rates and aging population. The company has been growing for the past three years, however, and has added 64 employees since the beginning of this year as it responds to increased customer demand. About 430 employees now work at the company’s two manufacturing facilities in Harrisburg and Beresford, S.D. Sova notes that inflation and foreign imports are also of particular concern for cabinet manufacturers and will be ongoing issues for that sector of the industry. He believes inflated wood costs may be alleviated somewhat as supply catches up with demand post-recession, but he is wary about cheaply priced, foreign-made cabinets entering the U.S. market. “That’s a growing threat and we are concerned about that,” he says, adding that the foreign cabinets generally sell at a lower price point than Showplace products and haven’t yet impacted the company’s business.

Showplace sells its products throughout the U.S., but maintains its largest presence in the Midwest. The company was impacted somewhat by the recession and has been recovering for the past few years, growing at a rate of between 6 and 8 percent. Sova anticipates continued growth at Showplace as the housing market continues to improve and as consumers gain more confidence and are willing to spend money on renovations in their existing homes. In the short term, Sova says Showplace is more optimistic about the second half of 2013 than it has been about the second half of the past few years, based upon strong outlooks for housing starts and remodeling.

“That’s really contrary to what we have seen in the past three years, where the second half has been a bit of a disappointment in cabinet building and American housing,” he says. “We believe this year things are different. The dynamics are better and our business is going to be stronger. We’re bullish about the remainder of this year and next year.”

Housing starts also strongly impact the business of West Fargo, N.D.-based Bobcat Co. and are a major factor in the equipment manufacturer’s tempered outlook. “Things are certainly better than they were, but there’s still a sea climb to get back to where they were,” says Laura Ness Owens, communications director.

Bobcat currently employs about 2,000 people at locations throughout North Dakota. The company restructured in 2009 and closed its Bismarck, N.D., manufacturing facility, but it has since restrengthened its presence in the state’s capitol and has

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|MANUFACTURING| experienced growth at all of its locations. “We have continued to rebuild our business and we now are producing a majority of our attachments in Bismarck in our former product manufacturing facility,” Ness Owens says. The company currently employs more than 600 people in Bismarck, up from a low point of about 250 a few years ago. About 50 new employees have been added there in the past year as the company prepares to open its Acceleration Center next summer. The facility will serve as a research and development facility where the company’s brightest minds can collaborate on new product design and testing, which Ness Owens says will help the company maintain its reputation as being a leader in innovation. “We’ve hung our hat on innovation for many years and as our company has grown it has spread out,” she says. “We know that if we bring those minds together we can do even more.”

As with other manufacturers, a number of factors play into Bobcat’s challenge of finding and retaining skilled workers.

However, in Bismarck particularly, Bobcat must also compete with oil and gas-related jobs, which presents a significant, but not insurmountable challenge, she says. To compete, Bobcat works closely with area universities to recruit new workers and will continue to build its reputation as being a good place to work.

Looking ahead, Ness Owens also expresses cautious optimism and points to a strong agriculture industry, improved housing reports and strong sales numbers as positive growth indicators for the company. “In terms of our business, we’ve seen some good solid growth over the last couple of years,” she says. “We’re comfortable with the growth that we’ve seen and we’re certainly busy, but there’s always opportunity.” PB Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

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|ARCHITECTURE/ENGINEERING|

Laura Cruff, electrical designer at Obermiller Nelson Engineering Inc., uses Autodesk Revit, a 3D modeling software program, to map out details of a project. PHOTO: OBERMILLER NELSON ENGINEERING INC.

3D technology gives firm the desired edge Engineering firm says hefty price worth the cost to expand its abilities

BY KRIS BEVILL bout four years ago, leaders at Obermiller Nelson Engineering Inc. decided that in order for the firm to set itself apart from other mechanical and electrical specialists in the region, it needed a technology upgrade.

Autodesk Revit, building information modeling software that enables architects and engineers to plot out every single detail of a project in three dimensions rather than two, was being embraced by large engineering firms elsewhere, but had yet to be utilized in this region. ONE determined it was worth the cost and time to install Revit and learn how to use it.

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Prairie Business Magazine August 2013

Today, Dave Obermiller, managing partner of ONE, says he believes the firm has met its goal of setting the bar for Revit use in the region. And while it has been a costly endeavor (he estimates the firm has spent more than $300,000 in equipment and software costs and training over four years) being Revit-capable has proven to expand the types of projects the firm is able to work on, a trend which he expects to continue as 3D software continues to gain popularity among architects and building owners.

“Owners are starting to make the choice based on what they feel a 3D model of their building will do for

|ARCHITECTURE/ENGINEERING| them in the long term,” he says. “I’m not going to say it’s the industry standard yet, but about 40 percent of our work is being done in Revit right now. We are the leaders in the regional market for experience and this has been extremely valuable for our clients. That experience has been huge for us because it takes a long time to get good at a building design software that is so complex.”

According to Obermiller, the 3D software is popular with architects because it requires projects to become a more coordinated effort between the designers and engineers. Additionally, contractors can use Revit models to confirm aspects like ductwork and piping placement, allowing them to pre-manufacture some of those items and thus potentially lowering the project cost for the owner. To date, ONE has used Revit for a number of large projects in the area, including the Williston Area Recreation Center and Sanford Health’s Moorhead, Minn., clinic, both of which are currently under construction. The firm will also be using Revit for its work on the new medical school at the University of North Dakota, a project which Obermiller says the firm wouldn’t be working on if it hadn’t made the decision years ago to invest in the software. “There’s no way that we could have learned Revit while we were working on the project,” he says.

Generally, Obermiller says large organizations and institutions or other entities with multiple buildings are more likely to request Revit for their projects than single-building owners. The software’s building

information model offers owners the ability to keep track of every detail of the building, right down to the type of light bulbs used in each fixture, but it requires dedicated staff and training to utilize the model at that level and single building owners typically do not have those resources available to them, Obermiller says. Still, he’s noticing growing interest from building owners large and small, which means more opportunities for ONE to put its expertise to use. “We’re finding that it is putting us in a position to be capable of working on these projects,” he says. “It doesn’t have to be a choice for us.” PB Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

MAKING IT’S MARK ON

MINNESOTA (BY LEAVING LESS OF ONE)

28% WATER SAVINGS

Outstanding Conservationist for 2011 MN Association of Soil & Water Conservation Districts

The University of Minnesota West Central Research and Outreach Center (WCROC) in Morris, Minnesota conducts research and education to instill renewable energy practices into public practice. JLG’s sustainable and high performance techniques make the Center a living experiment for green building practices – not only reducing energy consumption by 55.9%, but actually generating 2.51% in renewable energy – making the WCROC a leader in renewable and green research, while also leading by example.

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35

|ENTREPRENEURS|

Passion for education leads to business venture

BY KRIS BEVILL llen Jacobson was a veteran teacher looking for a change. After spending 18 years teaching at various grade-school levels, she still had a passion for helping children, but she wasn’t sure if the classroom was where she wanted to be. She took a year of absence to re-evaluate her future and happened to glance through the classified ads the one day that Sylvan Learning Center advertised for a franchise opportunity in her hometown of Bismarck, N.D. “I just knew there was such a need for something like that,” she says. “The more I found out about the business, the more I thought, ‘I know I can do this.’”

Jacobson had no prior business experience, but as she says, sometimes naivety has its benefits, and before long she was the proud owner of Sylvan Learning Center’s first North Dakota location, which opened in July 1995. “If I looked back, I never would have had the courage to do it,” she says. “I think it was meant to be because everything fell

E

The Sylvan Learning Center in Bismarck, N.D., provides individualized tutoring for hundreds of students each year. PHOTO: RYAN WEIGEL

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Prairie Business Magazine August 2013

into place; not that there weren’t some challenges along the way. I had to learn a lot and I decided to do what I could do best and hire the rest.”

Jacobson acquired loans to cover about $100,000 in expenses needed to cover her start-up costs, including franchise fees, equipment and furnishings. After two months of operating, she was breaking even. Seven years later she made her final loan payment and the center continues to operate successfully to this day.

Working alongside Jacobson since day one has been her daughter, Kari Weigel, who took over majority ownership of the Bismarck location last December as Ellen eyes retirement. Weigel was just 17 when her mom decided to open the Bismarck center, but she played a role in choosing the location, setting up shop to open for business and working in the center until leaving for college.

She remained involved in the business somewhat while living in the Twin Cities for several years after college, but

|ENTREPRENEURS| it wasn’t until 2004, after moving back to Bismarck with her husband and young family, that she returned to a full-time position and began preparing to take over the business.

Now, not only does she own 70 percent of the Bismarck location, she is expanding the business throughout North Dakota.

Weigel and her husband, Ryan, opened a Sylvan Learning Center in Fargo in late June, filling a gap that was left by the previous franchise owner’s decision to close. The Fargo center will employ 10 people to start and will grow with demand. Weigel expects the Fargo location could eventually surpass the Bismarck center, which generates about $1 million in revenues annually.

Additionally, Weigel and Jacobson are planning to expand Sylvan’s services to better provide for learners in the western part of North Dakota. Weigel says families and educators have been urging them to open locations in communities impacted by the Bakken for some time, but until recently it just wasn’t feasible. “It was way too expensive and we couldn’t afford to do a whole center in any of those locations,” she says.

However, Sylvan recently unveiled a digital platform, known as SylvanSync, making it possible for franchisees to set up satellite locations. Weigel anticipates opening a satellite location in Williston by the start of the school year. The pair is seeking partners in Minot and Dickinson with libraries, schools or other businesses that will allow them to hold instruction sessions a few times a week, and plans to open satellite locations there in the future.

Jacobson laughs when reminiscing about her sudden plunge into business ownership 18 years ago, but she has no regrets about her career change and doesn’t miss the classroom. “That’s a tough job,” she says, adding that at the center she gets to see the entire gamut of education and finds it fulfilling and fascinating. “I love the business aspect of it, but we still get the best of both worlds because we’re working with parents and their most precious items — their children.” PB Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

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The 40 under 40 issue of Prairie Business magazine actively supports and celebrates young professionals. The award honors individuals who strive toward the highest levels of personal and professional accomplishments, who excel in their chosen field, devote time and energy to their community in a meaningful way, and forge paths of leadership.

To nominate someone, please go to prairiebizmag.com and click on the “40 under40 Submission” tab. The deadline for submissions is Oct. 1.

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37

|INTERNSHIP| unique program developed by the Greater Fargo Moorhead Economic Development Corp., North Dakota State University and the West Fargo STEM Center to provide engineering internships for K-12 teachers is receiving rave reviews from interns and industry alike. Now in its third year, the program was initially created to bridge the gap between education and industry, providing teachers with the opportunity to see the engineering design process put to use in real-world situations and inspire them to translate their experience back to students.

Since its pilot year in 2011, the program has grown from just one participant to six this year, including Microsoft, Sanford Health, John Deere Electronic Solutions, Bobcat Co., Ulteig and Moore Engineering. Companies are asked to provide interns a learning experience four days a week for four weeks and contribute $1,000 toward the intern’s $2,000 stipend.

Representatives say the effort and cost is worthwhile in order to support STEM (science, technology, engineering and math) learning for the next wave of potential employees and many stand ready to sign up for future years and to possibly expand the program to more communities within their reach.

“The companies have been great,” says Lisa Gulland-Nelson, GFMEDC vice president of marketing and public relations. “They work really hard to make the program successful and beneficial to the teacher.”

JDES was the first company to sign on in 2011 and has hosted interns every year since. Sam Wheeldon, technical manager – electronic design at JDES, says the company strives to support STEM-related activities throughout the region as part of John Deere’s global initiative to inspire future workers through STEM education and real-world experiences. “These efforts allow us to develop closer partnerships with local schools and teachers which have and continue to enable future STEM ties,” he says. “John Deere considers STEM literacy increasingly important for all students regardless of career choice to support 21st century learning and jobs.”

Sanford Health, Bobcat and Microsoft have taken part in the program since 2012.

Sanford’s office of continuous improvement employs five engineers who focus on improving efficiencies and patient satisfaction throughout the network. Director David Peterson says the organization has enjoyed taking part in the internship program and hopes to continue to participate in future years. “The [department] is always interested in helping out the community and it seemed like a great fit to have our engineers mentor a teacher in this way,” he says.

Ulteig and Moore Engineering were both first-time participants in the program this year, but representatives from both firms say they would gladly take part again. “I think it’s our responsibility to give back,” says Sharon Miller, Ulteig’s human resources director. “Also, we are influencing young people who could eventually be on our staff. We’re influencing the future workforce.”

Joni Smith, human resources manager at Moore Engineering, says that while it can be a challenge for busy staff to train and advise the intern, the program was “absolutely” worth the effort. “We thought it was a good idea for a teacher to take back to the classroom real-life examples of the workforce and how they can apply things like math to the classroom,” she says.

Teacher interns are selected through an application process. This year’s participants included special education teachers, elementary teachers and high school science, math and business education teachers. Bradley Bowen, an assistant professor at NDSU, serves as the program administrator and ensures that the teachers have a good experience.

Third-grade teacher Cheryl Bombenger had already been incorporating STEM teaching into her classroom for several years prior to her internship at Ulteig this summer and says she became passionate about STEM after hearing “grim” statistics about the lack of STEM-related workers in the U.S. She plans to use her intern experience to continue teaching students about various aspects of engineering, but particularly how to apply problem-solving thinking to all parts of life. “When we think about engineering we always think about the really hard stuff that engineers have to do,” she says. “[Engineers] speak a miraculous language that is really hard for the rest of us to understand, but as a third-grader what we’re talking about is the engineering design process, which is really just a thinking process. Even as little tiny kids, they can do that.”

A

Teaching teachers Summer internship provides real-life engineering experience for educators

BY KRIS BEVILL

Third-grade teacher Cheryl Bombenger spent four weeks as an intern at Ulteig as part of the Teachers in Industry K-12 Teacher Internship Program, created to provide teachers with hands-on engineering industry experience. PHOTO: ULTEIG

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Prairie Business Magazine August 2013

PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

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CONNECT Substations 101:

Powerful conne ctions that affect our same

When you pass a substation, you ma y regard itt as litttle more than a jumble of metal and wires humming quietly as you rolll by. Once you understand the power behind substations and why they’re important, you may see them dif fffer e ently.

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Lead Engineer M ark Schei c id describ bes the transmissi on le evel as !6<!#:>=622& "> >:7;%>" )789 89> *>(7/ /722778& to route lin nes in n difffer e ent ways. “If y ou need to take the liin ne out of servicce, you can temporarily in ncrease the capaci ty on other lines,” he expla ained. “Thiss willl provid de an opportunity to work around the lin ne and then put that liine n back in nto servicce e.”

daily y lives

Substati b ons act as nodes that allo ow thiis switching of tran smission lin ne paths to occcur .

Determining the transmission liine voltage level involv es knowing how much power the end user needs and the distance the line travels. “Planning is an important !0<8 #= 89> :&:8>' ' /> >$06:> &#6 +;6< > out how many contingenc ies need to be buiilt into the system,,”” Scheid c said. A metropolitan area requires a larger source of power than a rural community, so redundancies, such as additional rela ys and more loops, are included for o instances when a line needs to be taken out of service. continues on page 4>>>

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39

BNSF expands regional presence Bismarck office focuses on economic development across Dakotas, Minnesota

BY KYLIE BLANCHARD

NSF Railway Co. recently opened a new economic development office in Bismarck, N.D., expanding the company’s presence in the state and giving BNSF the ability to better serve existing and new customers across the region.

“Adding an economic development office in North Dakota helps us continue strong relationships with state and local economic development partners across the region, as well as create new opportunities to support economic growth,” says Amy McBeth, BNSF Railway spokesperson.

She says an office in Bismarck now allows the railroad’s employees to offer additional on-the-ground assistance and allows staff to work closely with economic development groups in helping them consider the best transportation options for a variety of projects.

The Bismarck office will promote economic development in North Dakota, South Dakota and Minnesota. Since 2010, BNSF has been instrumental in locating over 100 new or expanded facilities in these three states, as well as creating more than 900 jobs and providing more than $700 million in investments.

The company has also made significant investments in the railroad infrastructure in the region. “In these states

B

BNSF Railway Co. currently hauls more than 50 percent of the crude produced in the Bakken. PHOTO: BNSF RAILWAY CO.

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Prairie Business Magazine August 2013

combined, we plan to invest more than $350 million on infrastructure this year,” McBeth says. “This is a private investment in our network to serve our customers. This allows us to add sidings and extend sidings, and expand tracks in our yards, among other work. These investments benefit all of our customers and all segments of our business in the region.”

In North Dakota alone, BNSF employs more than 1,500 people, hiring more than 400 individuals in the last two years to fill existing and new positions. McBeth says the company expects to hire an additional 300 employees in the state over the coming year. The handful of employees housed in the new Bismarck office includes sales, marketing and economic development staff.

BNSF handles nearly 2 million carloads in North Dakota each year and has experienced rapid growth in the transportation of crude oil by rail. Currently, the company hauls more than 50 percent of the total Bakken crude production in the state. However, agricultural transportation remained the company’s largest business in the state in 2012.

PB

Kylie Blanchard Contributing writer 701-391-0373, kylie.blanchard@hotmail.com

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41

|ENERGY| WBI Energy Proposed Pipeline Project

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BI Energy Inc., the pipeline and energy services subsidiary of MDU Resources Group Inc., plans to begin seeking customers this month for natural gas supplied via a proposed 400-mile pipeline system capable of transporting approximately 400 million cubic feet (MCF) per day of gas from the Williston Basin to end-users in eastern North Dakota and western Minnesota.

Barry Haugen, executive vice president and chief operating officer at WBI, says the company is “cautiously optimistic” there will be sufficient demand for the product and says the targeted areas for use have been historically underserved markets for natural gas.

According to WBI, natural gas demand in the upper Midwest varies significantly from summer to winter, with a community the size of Fargo-Moorhead having a demand as high as 100 MCF per day on a cold day in winter. This demand is about 25 percent of the proposed pipeline’s capacity of 400 MCF per day. Industrial users consume much more gas, however, and are WBI’s primary target end-users.

Fertilizer plants, such as the proposed plants to be built near Jamestown and Grand Forks, N.D., could use as much as 80 to 90 MCF per day. “They would be very big users and very large potential customers,” Haugen says.

The proposed route for the pipeline system would begin about 20 miles southwest of Williston and stretch throughout North Dakota to an interconnection with Viking Gas Transmission northeast of Moorhead, Minn., opening up the possibility for service to customers in Minnesota and other Midwest markets in addition to North Dakota. Pipeline capacity could be expanded to more than 500 MCF per day if demand warrants the increase, according to WBI. It is possible that the permitting and land acquisition process could begin later this year, keeping the project on track to be constructed and complete in 2016. Because Bakken natural gas is liquids rich it must be processed at

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The 400-mile-long natural gas pipeline system proposed by WBI Energy Inc. would deliver at least 400 million cubic feet per day of natural gas from the Bakken region to customers in eastern North Dakota and western Minnesota.

IMAGE: WBI ENERGY INC.

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Prairie Business Magazine August 2013

receipt points before being shipped via pipeline, but Haugen says WBI believes the pipeline’s needs could be met without requiring additional processing plants in the Bakken. “At this point, the processing capacity and what’s on the drawing board appears to be adequate, at least for near-term projections,” he says.

Aside from providing markets with a fuel source, WBI’s pipeline plan presents at least a partial solution to the questions of how to utilize increasing amounts of natural gas produced in the Bakken and decrease the amount of fuel flared at well sites. According to the North Dakota Industrial Commission Department of Mineral Resources, natural gas production at Bakken wells reached an all-time high in April, topping 860 MCF per day. Those numbers are expected to only increase in the future as oil wells age and the gas-to-oil ratio continues to climb.

The growing amount of gas produced in the Bakken means more take-away options will be necessary to utilize the gas, but it also means greater concern over the amount of gas being flared. Natural gas processors have been adding gathering and processing capacity to handle more of the gas produced, but the percentage of gas flared at Bakken well sites continues to hover at around 30 percent. The Department of Mineral Resources reported that 29 percent of the more than 26 billion cubic feet of gas produced in March was flared, equating to about 242 MCF per day. Haugen says it would be difficult to identify a direct correlation between the pipeline project and flaring levels, but that the addition of any facility that moves gas out of the Bakken will help reduce flaring.

“There’s always timing issues, but we’re of the opinion that any infrastructure like this that provides additional markets for that gas is going to help alleviate flaring for sure.” PB Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

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43

|CREW CAMPS|

Managing the Temporary The good and bad of crew camp lodging

BY KRIS BEVILL

Target Logistics' Bear Paw Lodge outside of Williston, N.D., provides 496 beds for oil and gas industry workers. The facility is one of seven temporary housing units operated by Target Logistics in Williams County.

PHOTO: TARGET LOGISTICS

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Prairie Business Magazine August 2013

emporary housing has been a hot topic in northwestern North Dakota for several years as communities continually struggle to accommodate the thousands of new residents who have converged on the region to power the Bakken’s energy boom. Whether described as man camps, crew camps, workforce housing, or extended-stay hotels, temporary lodging has come to be viewed by some as a necessary evil that should exist only until permanent housing is built; others see it as the solution to what may be a long-term, but still temporary, population explosion.

As other counties throughout the region grapple with how to prepare for an onslaught of construction workers as large projects such as fertilizer plants and diesel refineries are built, the topic of temporary versus permanent housing is no longer just a Williston Basin issue. Do you encourage new developments with the hopes of attracting new permanent residents, or do you embrace temporary housing?

If you allow temporary housing, how do you control the quality of the operations? It’s up to each county to determine regulations and housing strategies, but thanks to the last several years of boom times in

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|CREW CAMPS|

western North Dakota, there are now examples for others to learn from.

Heart of the matter Williams County, which includes the city of Williston, has had the often unenviable experience of being the epicenter of the largest oil boom of our time. For half a decade, the county has served as Ground Zero for magnificent growth, and all of its side effects. Crew camp lodges and RV parks of varying degrees of quality began springing up seemingly overnight as the boom began and provided shelter for workers when other housing wasn’t available. They have now become common sights along the roadways of Williams County, but county officials would prefer to limit, and eventually eliminate, temporary housing in favor of newly built permanent residences. In 2011, the county placed a moratorium on new temporary housing units while it evaluated options and growth patterns, allowing only those with previously approved permits to operate. After two years of deliberations, the commission recently decided to gradually phaseout existing temporary housing facilities. As part of the decision, RV parks in the county will be allowed to operate only until October 2014. Other temporary housing facilities must apply for conditional use permits and, if approved, will be allowed to operate until 2015.

Frustrating situation For operators of temporary housing facilities, the county’s delayed decision making has meant two years of uncertainty and frustration. Target Logistics, the largest provider of turnkey workforce housing in the U.S., provides more than 4,000 beds in the state, about half of which are spread throughout seven facilities within Williams County. Travis Kelly, Target Logistics’ North Dakota region vice president, says that as a resident of Williston he understands the county’s desire to re-evaluate the housing situation and encourage permanent residents to join the community, but he is frustrated with the length of time the county took to make a decision and believes that eliminating temporary housing is not the most effective way to encourage workers to make the Williston Basin their permanent home.

“I understand the desire for growth in the community,” he says. “I get it. The more rooftops you get in, the more attractive of a community it is to bring in some of the larger department stores, which is going to enhance the quality of life and hopefully attract more families. But I think that’s going to happen naturally. You will attract some families to

come here and make it home, it’s just not going to be at the scale the county would like.”

Of the more than 2,500 beds under Target Logistics roofs in Williams County, the number of vacant spaces at those facilities in mid-July numbered in the single digits.

Target Logistics’ properties are consistently fully booked in the area but Kelly says he agrees with the county’s position that the market for temporary lodging in Williams County is fairly saturated, adding that if it were allowed to expand, Target Logistics would only add about 100 to 200 new beds in the Williston area. However, he emphasizes that the existing temporary housing serves a legitimate need, which will continue for several years, and offers more positives than negatives to the region. For example, while it is widely held that the Williston Basin boom will last for at least 20 years, should the boom suddenly go bust, temporary facilities are made to be moved and leave no lasting impact on the county’s infrastructure, whereas permanent housing would be vacated and left to the community to deal with. And while there may be a portion of workers who would like to obtain permanent housing, many of the region’s newcomers are working their way out of debt and need time to establish good credit history before they can qualify for financing to buy a home. “I think there are people who want to make this their home and be back together as a family, but it’s going to take a little more time,” he says. “You don’t crawl out of debt to purchase a home in 12 months.”

Kelly says another concern he has with the county’s phase-out plan is that there doesn’t seem to be a reasonable plan to accommodate residents of RV parks elsewhere when those camps are banned. “I think they’ve painted themselves into a corner somewhat in the fact that by the time the RVs have to go, those folks either have to buy a home, find an apartment to lease, or they’re just gone all together,” he says.

“And we know that’s not going to happen. They’ll just find a better place to hide.”

Uncertain impacts Will the hiding place become surrounding counties that do not have the same types of restrictions in place? That remains to be seen, but it is a likely possibility. Ray Pacheco, Williams County planning director, says he’s not sure what impact the county’s phase-out plan will have on bordering counties and that the counties have not worked together to develop to a regional plan. “County and city planners are so busy that it’s hard to get together and brainstorm or come up with solutions,” he says. “There are a lot of good things you

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|CREW CAMPS|

RV camps like this one will be no longer allowed to operate in Williams County, N.D., after October 2014. PHOTO: PRAIRIE BUSINESS MAGAZINE

can take from other counties. We just don’t have a lot of time to sit and chat.”

Pacheco says he hasn’t heard any complaints from temporary housing operators regarding the phase-out plan, but he also agrees that temporary facilities are a necessary solution to Williams County’s housing issues, at least for now. “Until housing prices and rent prices drop, it will be hard for a lot of these companies to kick their employees out in a sense and say, ‘Now you have to go find an apartment,’ when nobody can afford the rent,” he says. “Just because [apartments and houses] are available, it doesn’t mean these guys are going to rush in and rent them, especially if they’re trying to bring their families here. The prices are just way too high at this point.”

With available housing priced out of the individual buyer’s range and temporary housing options eliminated, Kelly suggests that the outcome will be hundreds of unregulated “mini-man camps” consisting of houses that have been purchased by oil companies and used to provide lodging for a handful of workers. “That’s not how you grow a community,” he says. “I think the misconception is that if the oil company buys the house they’ll have the guy’s family move up and live in the house. That’s just not going to happen.”

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Prairie Business Magazine August 2013

Different state, same situation Communities within the Permian Basin of Texas have been dealing with oil booms and busts since the 1920s.

Compared to the Williston Basin, communities there have more infrastructure in place to accommodate new cycles of activity, but despite decades of experience, they continue to confront housing shortages with each boom and utilize temporary housing, to some extent, to fill the gap. Guy Edwards, economic development director for the Odessa Chamber of Commerce, says access to affordable housing is the No. 1 problem in the region and he expects it will be several years before available housing meets demand. He anticipates that when the housing supply catches up to demand, not all workers will seek permanent housing and some may not qualify for financing, so temporary housing will continue to serve a purpose for those workers. Odessa requires building permits for all temporary housing facilities, including RV parks, but the county does not, so most of the temporary housing in the county is located outside of city limits, he says.

According to Pecos Mayor Venetta Seals, available housing in the tiny town has become nearly non-existent and rental prices have skyrocketed, making temporary housing a necessi-

|CREW CAMPS|

ty. Neither Pecos nor its county has restrictions on temporary housing, however, “we really don’t want any more,” she says.

Currently, Pecos has one 200-bed facility in town. Three others are located outside city limits. Illegally parked RVs, of which there are many, are a major issue for the townspeople.

Seals says she agrees that workforce housing provides a temporary means to an end, but the city would prefer to encourage the development of permanent housing at the risk of overbuilding. While she initially voted to allow workforce housing within the city, she does not anticipate approving plans for additional temporary housing units to be built within city limits. “I don’t know that I’d really want another one because we need those plots for permanent housing,” she says.

Plan ahead Williams County may not have had the luxury of preplanning for its population explosion and the pros and cons of temporary housing, but Kelly and Pacheco recommend that communities in our region that are able to prepare for a sudden influx of workers can learn from what the county has been through and use that experience to their advantage.

For example, Kelly recommends that communities invite operators to the table to discuss what is possible and

what is not when it comes to temporary housing facilities.

“Education is a big thing,” he says. “I love to meet with communities and help them out. I understand as a resident what I’d like to see and what I wouldn’t like to see, but I also know what’s feasible and what is not.” He also urges other communities to put ordinances in place ahead of time and to establish permit fees for temporary housing and collect those fees before facilities are built. “That’s one thing Williams County didn’t do and it allowed a lot of these people who didn’t have any desire to operate a camp to go through the permitting process, get it ready and then try to dump it off on a third party that has no real vested interest in it,” he says.

Pacheco says he is willing to speak with fellow planners who are confronting similar issues to try to help resolve issues they may be facing. “Getting out of the office is not always the easiest thing when you’re going 24 hours a day on a job, but somehow it needs to be done.” PB Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

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|BY THE NUMBERS|

| SPONSORED BY Apr-12

EMPLOYMENT Apr-13 Apr-12

North Dakota

3.30%

3.00%

386,442

378,942

Bismarck MSA

3

2.7

59,214

59,502

Fargo MSA

4.2

4.2

114,703

113,629

Grand Forks MSA

4.7

5.1

51,166

51,815

Dickinson MiSA

1.7

1.5

20,984

19,483

Jamestown MiSA

3.9

3.1

9,835

10,431

Minot MiSA

3.6

2.7

35,465

34,639

Wahpeton MiSA

4.6

4

11,257

11,454

Williston MiSA

0.9

0.7

42,353

32,797

South Dakota

4.10%

4.40%

430,059

426,214

Rapid City MSA

4.2

4.5

64,183

63,783

Sioux Falls MSA

3.5

3.9

129,778

126,851

Aberdeen MiSA

3.4

3.5

22,669

22,589

Brookings MiSA

3.3

3.6

18,654

18,442

Huron MiSA

3.4

3.2

9,725

9,578

Mitchell MiSA

3.5

3.5

13,047

12,888

Pierre MiSA

3.1

3.3

11,726

11,701

Spearfish MiSA

4.2

4.8

12,183

12,146

Vermillion MiSA

3.7

3.6

7,547

7,560

Watertown MiSA

3.9

3.9

18,456

18,432

Yankton MiSA Minnesota

3.7 5.30%

3.8 5.60%

11,589 2,827,202

11,441 2,802,168

5

5.2

1,784,353

1,753,996

Alexandria MiSA

5

4.7

19,705

19,784

Bemidji MiSA

7.6

7.1

20,265

20,566

Brainerd MiSA

8.2

7.6

42,250

42,600

Fairmont MiSA

5.2

5

10,820

10,969

Fergus Falls MiSA

6.4

5.3

28,489

29,141

Hutchinson MiSA

6.6

6.8

18,244

18,420

Marshall MiSA

4.8

4.1

14,151

14,369

Red Wing MiSA

5.3

5

24,071

24,103

Willmar MiSA

5.2

4.7

23,773

23,766

Winona MiSA Worthington MiSA

4.4 4.1

4.5 3.7

27,840 10,949

28,156 11,190

Minneapolis-St. Paul MSA

Exchange 1.6 1.5 Canadian Dollars to One U.S. Dollar

Apr-13

1.4 1.3 1.2 1.1 1 0.9

Jan2000 Jan2002

Jan2004

Jan2006

Jan2008

Jan2010

Jan2012

Jan2014

Interest Rates 7

Effective federal funds rate 10-year treasury constant maturity rate

6 5 4

Percent

Employment UNEMPLOYMENT RATE

|

3 2 1 0

Jan2000 Jan2002

Jan2004

Jan2006

Jan2008

Jan2010

Jan2012

Jan2014

National Student Loan Default Rate 24 22

Oil Production

Apr-13 Apr-12

18 16 14 12

Cohort Default Rate

Cohort Default Rate

20

10 8

Producing Wells

Average Daily Production

Total Permits

8,758 7,306

793,249 509,503

202 167

6 4

1985

1990

1995

2000

2005

2010

Year

Public Expenditure on Higher Ed 2,000,000,000

SD

ND

1,800,000,000 1,600,000,000 1,400,000,000 1,200,000,000 100,000,000 800,000,000

Cohort Default Rate

Price 87.85 78.17

Cohort Default Rate

Apr-13 Apr-12

Average Rig Count 186 209

600,000,000 400,000,000

Data provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at david.flynn@business.und.edu.

200,000,000 0

2010 Source: State Higher Education Executive Officers Association (sheeo.org)

48

Prairie Business Magazine August 2013

2011 Fiscal Year

2012

MN