Prairie Business December 2013

Page 1

December 2013
The region's Top 40 business professionals under the age of 40 pg. 30 ALSO Need for Speed Initiative aims to improve ND's broadband infrastructure pg. 50 Location, Location Grand Forks bills its centrality as boon to business pg. 56
Rising to the Top

NorthDakota. DoingBusinessBetter.

NorthDakotawastheidealplace forField ofView,LLCtodevelopitsaerialimaging technologythathelpsfarmerssavetimeandmoney.Withstrongagriculture,technology andaviationsectors,we’redoingbusinessbetter.LearnmoreabouttheNor thDakota DepartmentofCommerceandcompaniesinthestateat www.NDBusiness.com

PhotocourtesyofFieldofView,LLC

30 40 UNDER 40 Rising to the Top

The average age of employees at Fargo-based app development company Myriad Devices is 23 years old. From left: Nate Heinold, mobile strategist; Peter Granlund, project manager; Sean Maki, marketing strategist; Jake Joraanstad, CEO; Rick Berg, vice president of business development North Dakota and Jeremy Johnson, director of sales and marketing.

6 Editor’s Note

of the best

8 Business Advice

Check your variances

10 Finance

Helping young people get a job — or create one

12 Research & Technology

BY

Incubators play viable role in business development

14 Economic Development BY

Using internships to find employees in a hot job market

16 Prairie News

22 Prairie People

26 Business Development

USD Research Park, biomed facility to open in 2014

56 Talk of the Town Location, location, location

60 Information Technology Grant provides health IT training for rural SD providers

64 Economic Outlook Cautiously confident

66 Architecture & Engineering BY

Business division adds dimension to Grand Forks design firm

68 Energy

72 Business to Business

74 By the Numbers Next

Check us out on Facebook https://www.facebook.com/PrairieBusiness

4 Prairie Business Magazine December 2013 |INSIDE| December 2013VOL 14 ISSUE 12 FEATURES
DEPARTMENTS
Month The January issue of Prairie Business magazine will cover efforts to address the Bakken's flaring problem, the growth and staying power of local financial institutions and an update on the area's manufacturing sector.
PHOTO: JOHN BROSE
CONNECTIVITY
for Speed
Our annual selection of the region's Top 40 business professionals under the age of 40
Need
North Dakota IT council sets out to map , improve state’s broadband infrastructure 50
Scan this with your smartphone's QR Reader to visit our website.
Follow us on Twitter https://twitter.com/PrairieBiz

Helping young people get a job — or create one

Early in your career, you may have an eye on a certain company or organization you’d love to work for. But if you can’t find quite the right fit with a job that already exists, why not create it yourself with help from the U.S. Small Business Administration? At SBA, our mission is to help small business owners succeed and we’ve got great tools to help young people start their own businesses, based on their own ideas and vision.

Across our region, young people are taking the plunge into entrepreneurship, looking to start the next social media phenomenon, adding value in marketing and graphic design, or inventing brand new products that make the world a better place. But sometimes the best business ideas come from people who are new to building a business. That’s where the SBA can help.

Through a network of offices and partner organizations across North Dakota, South Dakota and Minnesota, we offer several proven tools and resources to help new entrepreneurs succeed. Specifically, our resources include the “3 C’s” — capital, contracting and counseling.

Capital: Our loan and equity investment programs help to put more capital in the hands of small businesses through a network of partner banks, credit unions, certified development companies and venture capital funds. Our partners can provide anything from a multimillion dollar piece of manufacturing equipment through our 504 loan program to a low-cost loan for a few thousand dollars through our Microloan program.

Counseling: We also offer business advice and training on topics like marketing, accounting and finance to more than a million aspiring entrepreneurs each year. This free and confidential assistance can boost the chances of your business turning a profit and improve your chances

of securing the kind of financing you may need to grow.

Contracting: Finally, we help small business owners to pursue contracting opportunities with the federal government, including additional incentives and tools for women, veterans and disadvantaged businesses.

SBA knows young entrepreneurs have different sorts of needs. They are online and mobile, more so than any other group, so we’ve launched a new set of online tools with links to resources and free online courses geared specifically toward young entrepreneurs. Check it out at www.sba.gov/content/young-entrepreneurs.

Take a course or listen to our podcast for the essential steps in starting your business. These and other SBA resources will stimulate your thinking and move you forward on the path towards entrepreneurship. In addition, the new SBA online community posts articles and advice from tens of thousands of small business owners and fledgling entrepreneurs. Sometimes the best advice comes not from the “experts,” but from other young business people facing the same issues you are. Join the conversation at www.sba.gov/community.

If you’d prefer to explore these issues faceto-face or on the phone with an SBA adviser or resource partner, get in touch with your closest SBA office at www.sba.gov/direct.

We know from Facebook and Google and countless other businesses across the country that young people are changing the world and strengthening our economy through entrepreneurship. At SBA we’re working hard so that more young people can find jobs — and create them. PB

10 Prairie Business Magazine December 2013 |FINANCE|

Burden or Bundle: Service Providers and Your 401(k) Plan

Awell-executed 401(k) plan provides many advantages for employees, business owners, and the overall operation of a business.

The basic services of a 401(k) plan are recordkeeping, administration, trustee, and investment. Every plan needs these services to function and to stay in compliance with the Department of Labor, Internal Revenue Service, and the plan’s own provisions. What you may not understand are the different ways these services can be delivered. Let’s take a look at them.

Unbundled – Multiple independent providers are brought together. Associated costs may be higher because each provider charges its full fee. Communicating with many service providers, as well as unclear service expectations, increases the time an employer spends on administration.

Unbundled may work well for large employers with a dedicated human resources benefits team, but may be a burden for smaller employers.

Bundled – One single provider for all services. Easier employer administration because of just one contact. Recordkeeping and administration costs might be slightly lower because the provider is able to offset these costs with higher investment management fees associated with its own proprietary investment funds. Bundled providers are often large, impersonal financial institutions.

Alliance – Alliance providers combine the best features of both the bundled and unbundled models. The employer has the convenience of one contact, the alliance leader, that brings together one or more providers. With more cost savings and higher-quality service, the

alliance approach is the fastestgrowing delivery method among all plans.

Heartland Trust Company is the alliance leader! We keep many services in house and have aligned with an industryleading investment platform and recordkeeping service to provide the best retirement services for your business.

As North Dakota’s oldest independent trust company, Heartland Trust has been providing customized 401(k) service and wealth management for more than 23 years.

Contact Brian Halverson and Heartland Trust Company to reduce the time you spend administering your 401(k) plan and get back to improving your bottom line!

*Understanding 401(k) Service Delivery Models, www.401khelpcenter.com

ADVERTISEMENT ADVERTISEMENT
000998009r1

Incubators play viable role in business development

Starting a new business is not an easy task.

The innovator most certainly knows the details of his/her idea, product or service, but may lack some of the essential skills needed to turn the idea into a successful business. A community with a one-stop shop for inquiring entrepreneurs eases the difficulty of getting started. The use of incubators as an economic development tool has become an effective way to spark job creation and provide a place for entrepreneurs to turn their ideas into a viable business. These facilities promote innovation and job creation by providing essential resources and services to early-stage companies in an attempt to increase their success rate.

Incubators commonly provide market research of the idea, product or service, business plan assistance, financial assistance in the form of a small business development representative or licensed certified public accountant, and intellectual property expertise in the form of a licensed attorney.

Entrepreneurs play an important role in developing economies. Developing home-grown businesses balances economic development efforts. Communities do not need to rely solely on recruiting existing businesses from other locations. They can assist in a ground-up venture by using a business incubator.

A successful incubator understands the entrepreneurial temperature of its community and educational systems, is able to match the needs of local talent to appropriate resources, identifies potential projects and understands what entrepreneurs are talking about.

In smaller communities it is difficult to specialize in a specific niche such as culinary arts, science and technology, retail, or arts and crafts. In

these instances it would be more appropriate to provide essential needs through broad services and resources. An incubator needs to be flexible and willing to take on community projects and entrepreneurial needs.

Incubators are community successes. Success rests on the shoulders of many, not a few. Mentors and coaches need to be identified as well. These people may have specific success in an industry cluster, but can provide initial knowledge to get an entrepreneur started on the right path to success.

The incubator staff works with all facets of the community to recruit the aforementioned mentors, coaches, business leaders, attorneys, accountants, and more to create the team. The incubator staff and team should be trained to provide a unique and positive experience to the entrepreneur. The incubator needs to have a business plan, financial plan and growth strategy to be successful. It needs to be a successful business as well.

Staff should also work to set up networking events to provide entrepreneurs with opportunities to meet business leaders and other successful innovators. If possible, set up speaking engagements for successful entrepreneurs to share their experiences. What did they do right? What did they do wrong? What might they suggest to expedite the problem?

The use of an incubator as an economic development tool for a community is a viable way to develop the next generation of entrepreneurs. They create jobs and assist in developing innovative ideas into sound businesses. PB

12 Prairie Business Magazine December 2013 |RESEARCH & TECHNOLOGY|

Using internships to find employees in a hot job market

The job market is mighty hot for certain skills in our region. As an economic development official, workforce is one of my highest priorities to grow and retain the region’s economy. I want to highlight what the hottest jobs are according to one useful and credentialed source we use, the Minnesota Regional Career Supplement, published by the Minnesota Department of Employment and Economic Development.

This publication shows the potential job availability and wages for the hottest occupations in west-central Minnesota. The information in the publication can help users find the right job or college program and understand which skills employers in the region will be looking for.

The occupations featured in this publication are selected because they have a bright outlook, or are in high demand in the west-central region and are projected to stay that way. Many of these jobs also offer high pay compared to other occupations in the region.

The occupations in this article, however, are not the only good career opportunities in this region. Visit www.iseek.org/jobs/regional.html to see job availability and salary information for more than 400 occupations in the west-central region and other parts of Minnesota.

Some of the good career opportunities in this region include: construction equipment operators; bookkeeping and accounting clerks; executive secretaries; teacher assistants; accountants and auditors; emergency medical technicians, licensed practical nurses, medical and health services managers, and registered nurses; institution and cafeteria cooks; network and computer systems professionals; computer-controlled machine tool operators, industrial machinery mechanics, inspectors and machinists; industrial engineers, electrical engineers and technicians.

Fergus Falls, Minn., is hosting a Career Expo on Dec. 5 at the Fergus Falls High School for grades nine through 12. The event features IT jobs with Best Buy’s GEEK Squad, which routinely has positions available in our region, along with health care institutions, manufacturers and a host of agricultural and business entities.

I am told that in 2014 more businesses will begin offering job shadowing opportunities, as well as internships, to both college and high school students. The Minnesota High Tech Association is offering a dollar-for-dollar matching stipend of 50 percent of a student intern's wages (up to $2,500) on a first-come, first-hired basis. The students are recruited and prescreened by MHTA. To qualify, students must be at least 18 years of age, a Minnesota resident or attending a college in Minnesota, and have good grades. They must be in their second year in a two-year school or a junior in a four-year school and must be pursuing science, technology, engineering or math degrees.

Qualifying businesses must be a for-profit business and have 250 employees or less. The internship must offer hands-on industry experience and be involved in one of these industries: aerospace/defense, agriculture, food, forestry, biotechnology and life sciences, engineering services, fuels, energy, energy management, IT/computer technology, mining, materials, manufacturing and processing.

One of the best ways to find an employee is through an internship. I encourage employers to take a look at this program offered through the private sector Minnesota High Tech Association. PB

14 Prairie Business Magazine December 2013 |ECONOMIC DEVELOPMENT|
15 www.prairiebizmag.com xcelenergy.com RELIABLE ENERGY AT AN AFFORDABLE PRICE. Because our community’s economic vitality depends on energy, Xcel Energy works hard to provide reliable, affordably priced energy to the homes and businesses we serve. Through investment in capital projects that ensure we can continue to meet our customers’ needs, we’re working to build a strong energy future… and a strong local economy. Visit xcelenergy.com for more information. ECONOMIC POWER BELIEVE in the to build GROWTH R001988519

Minot, Williston engineering/architect firms merge

Minot, N.D.-based engineering firm Ackerman-Estvold has merged with Williston, N.D.-based civil engineering firm AmeriTech Engineering Corp. and Williston-based architectural building planning and construction facilitating services firm ABC Building Concepts LLC. Ackerman-Estvold President and CEO Ryan Ackerman says the merger will expand the firm’s on-the-ground presence over a larger geographical area. The firm now includes more than 75 employees in Minot and Williston.

Valley Imports gets Porsche award

Fargo-based auto dealership Valley Imports was recently awarded Porsche’s 25 Years of Service award. Valley Imports has sold an estimated 1,750 new and pre-owned Porsches since opening in 1975. Many unique models have been sold through the dealership over the past 38 years, including one of only 124 Carrera GT2 RS models sold in the U.S.

VCSU celebrates completion of science center renovation

State officials, including Lt. Gov. Drew Wrigley, and Valley City State University faculty, staff and students recently dedicated the university’s newly renovated Rhoades Science Center, The center, which is focused on STEM

(science, technology, engineering and math) education, underwent a $10.3 million renovation using funding provided through the 2011 legislative session. The renovation included a complete interior remodel of the center, which was originally built in 1973, and a 27,000square-foot addition.

Fargo, Williston, Denver companies form JV for Williston Jet Center

Fargo Jet Center has formed a joint venture with Denver-based Ross Aviation and Williston, N.D.-based Overland Aviation to purchase the assets of Williston’s current fixedbased operation (FBO) and operate it as Williston Jet Center. Tanner Overland has been named general manager of the new operation. Aircraft maintenance and air taxi charter services will be provided in cooperation with Fargo Jet Center. Jim Sweeney, president of Williston Jet Center, says plans are underway to improve the FBO’s existing facilities to accommodate Williston’s growth in demand.

Essentia gets top grade in ACO accreditation

Essentia Health is one of the first two organizations in the U.S. to receive the highest level of accreditation as an Accountable Care Organization. The level 3 designation from the National Committee for Quality Assurance recognizes Essentia’s efforts to protect patient rights,

Sanford Pentagon opens for business

The five-sided, 16,000-squarefoot, 3,200-seat Sanford Pentagon in Sioux Falls, S.D., opened in October with an NBA exhibition game between the Minnesota Timberwolves and the Milwaukee Bucks. The facility, which features nine basketball courts, including a 1950s-‘60s-inspired Heritage Court, is expected to host a variety of events that will draw attendees from the entire upper Midwest.

offer accessible health care, have a solid foundation of patient-centered primary care, use care coordination to manage populations of patients, and monitor practice patterns and use performance data to improve quality.

SDSU offers biochemistry Ph.D

South Dakota State University has received approval from the South Dakota Board of Regents to offer a doctoral degree in biochemistry. The university has offered a biochemistry track within its doctoral program in chemistry since 2005, but found it difficult to recruit students to the program who wanted to pursue a biochemistry degree. The new degree is expected to assist in recruitment and retention, and to support the state’s emphasis on bioscience as a sector for development.

Iowa manufacturer expands to South Dakota

Granite, Iowa-based Agile Manufacturing LLC, a manufacturer of material handling equipment for agricultural and industrial applications, is expanding its operations to Worthing, S.D. The expansion will create 10 jobs initially. The South Dakota Governor’s Office of Economic Development provided low-interest financing to assist with the expansion.

Granite is located just outside Sioux Falls, S.D. Worthing is located in Lincoln County and is a suburb of Sioux Falls.

16 Prairie Business Magazine December 2013 Prairie News Industry News & Trends
The Sanford Pentagon in Sioux Falls, S.D., features nine basketball courts, including a 1950s-‘60s-style Heritage Court. PHOTO: SANFORD HEALTH

Hoge named interim director of NDSU research park

Long-time board member Chuck Hoge has been named interim executive director of the North Dakota State University Research and Technology Park. In this role, he will be responsible for supporting the park’s clients by maintaining programs, especially for startup companies in the technology incubator. He takes the place of previous interim executive director Brenda Wyland, who accepted a position as director of marketing for Appareo Systems.

Hoge has served on the board of directors for the NDSU Research and Technology Park for most of its existence. He brings executive-level leadership experience as former president and CEO of Bobcat Co. and former CEO of Otter Tail Corp.’s manufacturing platform.

The park is initiating a strategic planning process to determine its future direction and will search for a permanent executive director after the strategic plan is developed in early 2014.

Rapid City Regional Hospital announces COO

Michael “Mick” Gibbs has accepted the position of chief operating officer at Rapid City (S.D.) Regional Hospital. Gibbs served most recently as vice president for the heart, vascular, surgery and radiology programs at Sanford Health in Fargo. He also served as vice president of clinic operations at Sanford Health in Fargo from 2008 to 2010. Prior to that, he spent eight years at Regional Health, serving in various positions including CEO of Gordon Memorial Hospital in Gordon, Neb., and vice president of professional services at RCRH.

Ressler named ND IT chief information officer

North Dakota Gov. Jack Dalrymple named Mike Ressler chief information officer (CIO) of the state’s Information Technology department. Ressler has served as interim CIO since June. Prior to being appointed interim chief, Ressler served as deputy CIO and director of operations since 1997. For the past 16 years, he has been responsible for the department’s overall strategic planning, management and operations.

EAPC adds Schimke as health care services director

EAPC Architects Engineers has hired Stanley Schimke as director of health care services. He has 27 years of experience in medical architecture and was most recently employed with Mohagen | Hansen Architectural Group in Wayzata, Minn., where he was director of health care. His focus at EAPC will be on building longterm strategic relationships, marketing health care projects and clients, and leading project teams and staff mentoring.

Anderson to head public relations at KK BOLD offices

Debra Anderson has been selected to serve as director of public relations for KK BOLD offices in Bismarck and Minot, N.D. She brings 25 years of experience in health and education public relations and marketing to the position. She is a graduate of the University of North Dakota and a native of Westhope, N.D.

WBI Energy promotes 3

WBI Energy Inc., a subsidiary of MDU Resources Group Inc., has promoted three of its employees.

Scott Fradenburgh has been promoted to vice president of operations. He began his career with the company in 1981 and has held numerous positions since that time, most recently as director of pipeline operations.

Rob Johnson has been promoted to vice president of market services. He has been with the company since 1983 and served most recently as director of market services and system planning.

Stephanie Barth has been promoted to controller. She joined the company in 1996 and served most recently as director –financial planning and reporting.

22 Prairie Business Magazine December 2013 |PRAIRIE PEOPLE|
Chuck Hoge Stanley Schimke Michael “Mick” Gibbs Mike Ressler Scott Fradenburgh Rob Johnson Stephanie Barth Debra Anderson

Rachel Contracting names Klimmek vice president/ND group manager

Minneapolis area-based civil contracting firm Rachel Contracting has promoted Kevin Klimmek to the position of vice president/North Dakota group manager. The newly created position is in response to the continually increasing level of activity in northwest North Dakota, according to the company. The company is currently involved in several projects in the area. Klimmek served previously as a senior project manager/estimator for the company. He has 20 years of construction-related experience in the heavy civil industry primarily in Arizona, Minnesota and North Dakota.

School of Mines music director named SD professor of the year

James Feiszli, director of music at the South Dakota School of Mines & Technology has been named the 2013 South Dakota Professor of the Year by the Carnegie Foundation for the Advancement of Teaching. The awards program celebrates outstanding instructors across the country and is sponsored by the Council for the Advancement and Support of Education and the Carnegie Foundation for the Advancement of Teaching.

Feiszli received the award in recognition for his success in building a music program at a school for engineering and technology, recognizing the connections between music learning and engineering/science learning and demonstrating the advantages of learning both disciplines simultaneously, according to the judging panel.

Feiszli joined the school in 1983. In 2011, he received the presidential award for outstanding professor.

Home Federal Bank hires F-M regional president

Sioux Falls, S.D.-based Home Federal Bank has hired Brent Wersinger as Fargo-Moorhead regional president. In this position, he will lead and expand the bank’s business development efforts in North Dakota. Wersinger served previously as vice president/business banking manager at Western State Bank.

MSU Moorhead professor named Minn. professor of the year

Brian Wisenden, a biosciences professor at Minnesota State University Moorhead, has been named the 2013 Minnesota Professor of the Year by the Carnegie Foundation for the Advancement of Teaching. The awards program celebrates outstanding instructors across the country and is sponsored by the Council for the Advancement and Support of Education and the Carnegie Foundation for the Advancement of Teaching.

Wisenden joined MSUM’s biosciences department in 1998 and is credited by his peers for playing a crucial role in creating a vibrant research community throughout the department. He is the 10th professor at MSUM to be recognized by the Carnegie Foundation and the third member of MSUM biosciences department to receive the award in the past eight years.

Marco promotes Pflepsen

Marco Inc. has promoted Dan Pflepsen to IT sales manager for the northwest region. Plfepsen has more than eight years of experience in the IT industry and has a sales and management degree from St. Cloud (Minn.) Technical College. He has been with Marco since 2005.

SDSU Foundation expands development staff

Reid Jensen has joined the South Dakota State University Foundation as development director for the student affairs division. He has 15 years of experience in financial services, trust administration and banking.

Amanda Nielsen has joined the foundation as development director for the College of Education and Human Sciences. She previously served as a development manager for the National Multiple Sclerosis Society in Sioux Falls, S.D.

24 Prairie Business Magazine December 2013 |PRAIRIE PEOPLE|
Reid Jensen Brian Wisenden Kevin Klimmek Brent Wersinger James Feiszli Amanda Nielsen Dan Pflepsen

USD Research Park, biomed facility to open in 2014

USD, SD Technology Business Center partner to advance park, establish biomed test space

Early-stage companies in South Dakota will soon have new spaces available to test their products and advance their companies. In November, the South Dakota Technology Business Center, a Sioux Falls business incubator, announced its staff will take on management responsibilities for the 80-acre University of South Dakota Research Park, which is to be located adjacent to the University Center, just two miles north of the SDTBC in Sioux Falls. The SDTBC also assists USD in managing the Graduate Education and Applied Research center, which anchors the park.

The research park also recently put in place a nine-member board of directors, which will hold its first meeting early this month. An architectural and engineering team

is expected to be selected to complete the park’s master plan by the end of the year and the park should be ready to sign tenant leases in early summer.

Rich Naser, executive director of SDTBC, says the center’s partnership with the research park fits well with its purpose as an incubation center. “It’s a great opportunity for us because we take companies, grow them to a certain point and then kick them out into the community, and the research park provides some of those companies their next location and opportunity for assistance to continue to grow. We’re very excited that the University of South Dakota and the Board of Regents are interested in engaging us in this economic development activity in Sioux Falls,” he says, adding that the city and local

26 Prairie Business Magazine December 2013
|BUSINESS DEVELOPMENT|
The University of South Dakota Research Park will comprise 80 acres of land, highlighted here in yellow, will be located adjacent to the University Center in Sioux Falls, S.D., and anchored by the existing Graduate Education and Applied Research center. IMAGE: GOOGLE MAPS

Rising to the Top

The northern Plains is known for its skilled, hard-working people, and this year’s selection of the top 40 business professionals under the age of 40 exemplifies the high level of talent that exists in our region. Honorees this year include small business owners, investors, scientists, economic developers, technology experts and other professionals who have risen to the top of their respective fields at young ages, whether in careers they have worked in for years or new ventures.

We noticed a common theme throughout the nomination review process this year and that is the large extent to which nominators value the strong leadership qualities and positive attitudes reflected by those who have achieved success. Many of the honorees serve in mentorship roles for others in their profession and/or community and continue to inspire others to work toward their professional and personal goals. We are humbled by their dedication and proud to present this year’s honorees.

30 Prairie Business Magazine December 2013 |40 UNDER 40|

(24)

Jake was a sophomore majoring in computer engineering at North Dakota State University when he built his first mobile app and made $500, selling it at 99 cents per download on the Android app store. He says he always knew he was “an idea person,” but he never considered himself an entrepreneur or someone who would launch a business until after he joined an extra-curricular group at NDSU called ICE (innovation, creativity and entrepreneurship) and experienced success from his first mobile app. It encouraged him to pursue mobile technology as a potential business idea, but he knew it would be next to impossible to create a profitable business by building and selling 99-cent apps. He decided it would be more profitable to establish a company that could provide mobile app-building services directly to other companies.

Jake set out to build a mobile app technology company along with a couple of partners and founded Myriad Devices in 2010. (One of his first employees was his 16-year-old brother, Nathan. After an introduction into coding by way of a YouTube video, Jake says Nathan quickly became one of the company’s most-skilled employees). The company was accepted into NDSU’s Research and Technology Park incubator and expanded under the guidance of the tech incubator until 2012, at which point the young tech firm had grown to include 12 mostly part-time employees and was deemed ready to strike out on its own.

The company then moved to its current location in north Fargo and has continued to grow, without any outside financial backing, led by Jake, President and Chairman Ryan Raguse and Chief Strategy Officer James Dravitz. By the end of this year it will have doubled its number of employees and made the majority of them full-time positions. This year will also mark the company’s first $1 million in annual revenue. The firm has snagged a number of big-name clients, including NDSU, Bobcat Co., American Crystal Sugar Co. and Microsoft, all looking to increase efficiency through the use of in-house apps developed by Myriad. The company also continues to build apps for the app store. One of them, developed in partnership with NDSU Agriculture Communication, recently earned White House recognition for its usefulness in assisting people in disaster situations. The app, called the Winter Survival Kit, is designed for motorists who become stranded in winter weather. It allows them to alert authorities and selected contacts to their location and provides the user with safety tips and a tool to calculate how long their vehicle’s fuel will last. The Federal Emergency Management Agency recognized the app this fall for its innovative use of technology and nominated it for recognition by the White House as part of its Champion of Change program. “It was a pretty incredible feeling,” Jake says. “The partnership with NDSU has been really awesome because they were also one of our first customers, so to see one of the apps that we worked on with them for three years succeed like that was really cool.”

A native of tiny Rolla, N.D., Jake is a firm believer in former Great Plains Software/Microsoft leader Doug Burgum’s philosophy that a world-

class company can be built with Class “B” students, and he intends to continue growing Myriad Devices rapidly. The company has set its sights on becoming one of the nation’s top five mobile app development firms within the next five years from its base in Fargo. “No doubt about it, that’s our game plan,” he says.

The tech sector in general has a very bright future in Fargo, he says, and he predicts the city will soon serve as the region’s tech epicenter, thanks in part to a strong base established years ago by Great Plains Software. But there are also challenges associated with being a young business leader in a young industry in the northern Plains that need to be addressed in order for the sector to blossom as it could. Jake says more students need tech-specific training and he hopes the region’s universities will continue to collaborate with businesses to develop a skilled workforce and attract additional students to the area. There is also a lack of investors willing to support tech companies and Jake says he would like to see more successful business people take on mentorship and guidance roles for young business leaders like him. “I don’t see a lot of the older generation who have been involved in big things like this come back and help in an advisory role,” he says. “If there were more people looking to give back to the young generation who are trying to build the future of North Dakota, I’d love to talk to more of those people.” Despite the challenges, however, Jake says he enjoys being a business owner in Fargo and is excited to be part of an emerging sector in a community that supports it. “The tide’s rising for everybody,” he says. “I think the future is really bright for tech companies in Fargo.”

31 www.prairiebizmag.com
|40 UNDER 40|
PHOTO: JOHN BROSE

One of the most interesting questions to ask Greg is, “What do you do?” A self-proclaimed contrarian, Greg plays various roles in many activities throughout the area and hesitates to name one particular employer or job that best describes his career. His nominators describe him as “a connector, a leader in elevating whole communities, a mover and a shaker, good at mobilizing ideas.” But what does that mean? For Greg, it means collaborating with many people to achieve a goal of moving the community forward, embracing startups and young thought leaders and inspiring everyone to contribute to making Fargo, and the entire Midwest, the best place for business and life.

“My vision is to create this as the world’s greatest community to live, to be a creative entrepreneur …. To create a community of contributors,” he says. “I think it’s a really special place right now.”

Originally from West Fargo, N.D., Greg’s first entrepreneurial venture was born 10 days after entering the University of Minnesota’s Carlson School of Management. There, along with a group of friends, he launched Students Today, Leaders Forever, to promote leadership through service among students. Greg continued his involvement with the group for seven years before establishing a succession plan to ensure the group’s longevity after his exit. Now in its 10th year, STLF has welcomed more than 20,000 participants in 14 states since its launch, accounting for more than 250,000 hours of service work.

Following the success of STLF, Greg spent about a year traveling the world before returning to the U.S., where he was offered a Rotary Ambassadorial scholarship to study social change at the University of Manchester. Needing to wait a year before classes started, he joined Fargo-based development firm The Kilbourne Group as a fellow and special assistant to Doug Burgum and he served in that role for more than a year. The experience engaged him so deeply in the community that he decided to forgo the opportunity for graduate school in order to continue to serve Fargo.

Greg currently serves as an adjunct professor for Concordia College’s Offutt School of Business in Moorhead, Minn. Greg helped design and is implementing the school’s Global Business in India program — a three-week course he teaches in Bangalore which focuses on

social entrepreneurship and corporate market capitalism of transnational companies. He is also one of four founding members of Emerging Prairie, a platform launched this year to highlight Fargo’s emerging tech sector. He organizes midnight brunches, which are held regularly in Fargo as a method of connecting community members with local artists. He is the curator of TEDxFargo events and helped to organize the city’s first Start-Up Weekend as well as monthly social entrepreneurialism discussion groups. His overall goal through all of these events is, of course, to connect people, as well as to provide newcomers and their families access to the community.

In 2014, Greg intends to participate in recurring events like TEDx as well as help to unveil some new ideas, including a startup district which would subsidize young entrepreneurs’ rent in a specific neighborhood with the dual goal of providing financial support and encouraging a collaborative environment among young entrepreneurs. He is also part of a group that intends to launch a website called DinnerTies.com. The concept of the site is to match the culinary preference of Fargo visitors to residents who are willing to invite them over for dinner and, literally, give them a taste of Fargo.

While he often gets singled out as being a driving force behind a number of the area’s unique events, Greg is quick to point out that he is always part of a team. “I get to do what I do because of so many amazing people.”

32 Prairie Business Magazine December 2013
|40 UNDER 40|
PHOTO: DANIEL FRANCIS

Rosemary was a stay-at-home mom prior to founding Titan Oil Field Services in 2011 along with a group of investors from Washington state and Bryce Shypkoski. The company, which provides roustabout services at well sites, has been growing ever since and currently employs more than 40 people. This year, the company generated more than $6 million in sales.

Rosemary is a native of Washington but has lived in Dickinson for the past seven years and says the booming economy of the Bakken inspired her to become a business owner. “It’s unlimited opportunities right now for the types of businesses you can start out here,” she says.

Her parents owned multiple businesses, so she says she had always been interested in becoming her own boss, although never anticipated that she would one day co-own an oil field services company. She credits her parents for setting an example to follow in business and says she’s received valuable guidance from small-business experts at the U.S. Small Business Administration and the Strom Center at Dickinson State University.

Knowing that its business is currently based on an industry that can boom and bust in a flash, Rosemary says the company is keeping its eye on where the industry is headed and would like to diversify to serve other industries as well. “We don’t think it will slow down anytime soon, but I think it will steady out,” she says. “So we’re always looking at diversifying our customer base and finding other services that might have a little more longevity, just in case.”

33 www.prairiebizmag.com
Rosemary (29)
|40 UNDER 40|

Until recently, eastern South Dakota was in need of a venture firm willing to support innovative startups through the difficult “valley of death” stage of development. According to his nominators, Mark has been the answer to this need. He joined the early-stage venture capital firm shortly after its creation in 2009 and has since served as the organization’s “ace-in-the-hole” on all fronts — raising capital, securing grants, supporting researchers’ ideas and creating companies. He has raised more than $6 million in investment capital and led the review of hundreds of investment opportunities, resulting in, to date, 10 new companies, more than 35 patent applications and millions of dollars in grant funding to support the companies’ efforts. He has fostered collaborations with more than 35 strategic partners and played a key role in creating the Ag Tech Center in east-central South Dakota to further support aquaculture and bioprocessing research activities in the region.

Before joining SDIP, Mark served as the president and chief operating officer of an early-stage private equity firm in Denver and as managing director of a merger and acquisition advisory services firm. Since joining SDIP, his hard work and skill level have won him the respect and admiration of all who work closely with him. Firm co-founder Van Fishback says he has “a gift” for encouraging inventors and doing whatever necessary to support their projects. Pat Costello, commissioner of the South Dakota Governor’s Office of Economic Development, commends his leadership skills and ability to seek out new business concepts and support their successful launch.

Researchers at South Dakota State University say their collaborators at other universities are envious of the active system Mark and his team have developed with the university’s technology transfer office and they commend his fluency in science, engineering and business. They describe

his leadership style as inspiring, inclusive, honest and approachable. “In a nutshell, Mark’s work and business ethics are beyond compare,” say SDSU researchers William Gibbons and Michael Brown.

Mark credits the team members at SDIP for its success and says he is motivated by them and the firm’s focus on producing solutions to global challenges. “I have had the good fortune to work with thousands of good people at good companies throughout my career, but the talent and passion of our team members at Innovation Partners is unmatched,” he says. “Without them, it would be impossible for us to build new businesses focused on important issues such as food security, human health and sustainable energy.”

A native of South Dakota, Mark left the state after college to pursue a career with a global accounting firm. He has since lived and worked in a number of places around the country, but he eagerly accepted the chance to return to his home state when SDIP’s original limited partners, Gene McGowan, Van Fishback and Al Kurtenbach, offered him the opportunity to lead the firm. “We are providing opportunities for faculty and students to stay in the area and pursue challenging career opportunities that would not otherwise exist,” he says.

34 Prairie Business Magazine December 2013 |40 UNDER 40|

Amber Larson

(33)

Marketing Manager

Bartlett & West

Bismarck, N.D.

Amber joined engineering firm Barlett & West in 2012 after having already racked up an impressive career in marketing working for companies including MDU Resources Group Inc., St. Alexius Medical Center and the Bismarck Tribune. Her experience in social media marketing along with her creativity and detailed execution make her a stand-out in her field. Her determination to accomplish goals is obvious in her work as well as in her personal life. Last year, she convinced her husband to run the Bismarck half-marathon to celebrate their sixth anniversary. Together they trained and ran all 13.1 miles side by side.

David Wald

(38)

Financial Advisor

Securian Financial Advisors of North Dakota

Bismarck, N.D.

David’s dedication to his clients and knowledge of the industry has qualified him for the firm’s Advisor of the Year award every year since joining Securian in 2008. His outstanding client service skills, ethics and professionalism have also earned him recognition from the Million Dollar Round Table – The Premier Association of Financial Professionals. David has qualified for MDRT four times and has also qualified for the MDRT’s Top of the Table, an exclusive forum for the world’s most successful life insurance and financial services professionals. David is chairman of the board for Easter Seals/Goodwill of North Dakota, serves as secretary of the National Association of Insurance and Financial Advisors board, board member of Dakota West Arts Council and has been a participant in Junior Achievement for seven years. He is also a past U.S. and Canadian kickboxing champion and currently referees professional Mixed Martial Arts matches in his free time.

Tobin (Toby) Morris

(39)

Senior Vice President

Dougherty and Co.

Pierre, S.D.

Unflagging energy, dedication to follow-through, attention to detail and a sense of humor are all qualities that make Toby an outstanding member of the region’s business community, according to his nominators. Toby’s passion is supporting private economic development in South Dakota’s rural communities, a passion which began in 1997 when he joined the South Dakota Governor’s Office of Economic Development. He spent six years at GOED, half of them as director of business and community development, before entering the private sector. Toby is known for his Tax Increment Finance expertise and has played a role in establishing many projects throughout the state in the past three years, including the Bel Brands Cheese Plant in Brookings, the Harrold Terminal in Harrold and Miller, Eagle Creek in Pierre and Liberty Grain in Kimball. Since 2003, he has helped finance over $1 billion of improvements in the state.

Dawn

(35)

Bismarck, N.D.

A native of Mandan, N.D., Dawn joined the Downtowners group in 2007 and has since launched the redevelopment of Bismarck’s city center into a vibrant and growing downtown. Under her leadership, millions of dollars have been invested in downtown projects and membership in the Downtowners has grown by nearly 70 percent. The group has also created annual public events including a ribfest, an art and wine walk and a monthly 1st Thursdays business event. The Downtowners also co-created the inaugural North Dakota Downtown Conference, held in late October in downtown Bismarck. Dawn is also a member of several local groups, including the Bismarck-Mandan Young Professionals, and represents the Downtowners on a number of city committees and task forces.

36
Prairie Business Magazine December 2013 |40 UNDER 40| (continued on page 38)
Amber Larson David Wald Tobin (Toby) Morris Dawn Kopp

Jared Stober

(30)

Vice President

Marketing and Sales Flax USA Bismarck, N.D.

Jared began his career with his family’s flax seed company when he was a high school senior. After earning a business degree in marketing and entrepreneurship at the University of North Dakota, he took on a full-time role at the company and expanded the company’s distribution to a national level, including major retailers such as Sam’s Club, Costco and Wal-Mart. He also recently accepted the position of program manager for the North Dakota Department of Commerce’s entrepreneurship program and looks forward to launching a revamped program by early 2014 that will provide specialized support for other entrepreneurs and foster a statewide entrepreneurial ecosystem.

Jon Godfread

(31)

Vice President Government Affairs

Greater North Dakota Chamber Bismarck, N.D.

In the two years since joining the chamber, Jon has taken on weighty topics including leading a successful grassroots effort to defeat a ballet measure to move property tax decisions from local to state control, and helping to form the North Dakota Outdoor Heritage Fund. During the 2013 legislative session, his efforts helped lead to the largest tax cuts in the state’s history. A native North Dakotan, Jon attended the University of Northern Iowa and served as team captain for the NCAA Tournament team. He played professional basketball in Germany before returning to the U.S. to earn a law degree and master’s degree from the University of North Dakota. He was a manager at Alerus Financial and served in several state legislative roles before joining the GNDC in 2011.

John Weber

(39)

Product Line Manager for Enterprise “Applications”

National Information Solutions Cooperative Mandan, N.D.

John joined NISC in 1997 as a software developer and has since led several large projects, including serving as lead designer on a three-year project to rewrite the group’s accounting software for telecom and utility industries. He is currently responsible for building new products, prioritizing and scheduling enhancements, and marketing products that generate more than $15 million in revenue annually. He is a past president of Junior Chamber International USA and has served three years on the group’s international board of directors. He has also served six years on the board for Missouri Slope Areawide United Way.

Jason Westbrock

(39)

Vice President

Barr Engineering Bismarck, N.D.

Since opening the firm’s Bismarck branch in 2008, Jason has grown the number of Bismarck employees to 19 and has instituted a positive workplace culture, prompting the North Dakota Young Professionals Network to name it the best place to work in North Dakota and the Bismarck-Mandan YP Network to twice name it among the best local places to work. Following the 2011 Minot area flood, Jason was selected by the state water commission to develop a flood protection plan for residents of the Mouse River Valley. He currently serves as project manager for the Mouse River Enhanced Flood Protection project. He has also broadened the firm’s exposure in the energy industry and built brand recognition among its client sectors. His leadership, hard work and willingness to mentor staff have resulted in a dramatic growth of the firm’s revenues.

38 Prairie Business Magazine December 2013
|40 UNDER 40| (continued from page 36) (continued on page 40)
Jared Stober Jon Godfread John Weber Jason Westbrock

Quentin Obrigewitsch

(34)

West Region Survey Production Manager

KLJ Dickinson, N.D.

Quentin has more than 12 years of survey experience and currently leads all survey work for engineering firm KLJ’s west region offices. The continuous growth of western North Dakota’s energy industry requires him to be a consistent leader, manage an extensive workload and provide strong coordination and comprehensive oversight for multiple ongoing projects. Quentin is a graduate of North Dakota State College of Science and is a member of the North Dakota Society of Professional Land Surveyors.

Nathan Johnson

(34)

Administrator, CEO PioneerCare

Fergus Falls, Minn.

When Nathan joined PioneerCare as administrator in 2008, a new care center was being constructed and an organizationwide shift was being made from an institutional model of care to a household model. He successfully steered staff and residents through the culture change and has since become actively involved in addressing workforce issues in the care provider industry. He is a member of the workforce solutions council for Aging Services of Minnesota and frequently speaks with public officials on the topic. This year, he was appointed CEO of PioneerCare and received a master’s degree in health care administration from Bellevue University in Omaha, Neb. He serves on the board of directors for the United Way of Otter Tail County, Aging Services of Minnesota and Care Ventures Cooperative and is a member of the Otter Risers Kiwanis. He is also a founding board member of the local chapter of Let’s Go Fishing, which is focused on making the sport accessible to older adults.

Tommy Leikas

(29)

Owner

Glisten.com

Fargo, N.D.

He’s not even 30 yet, but Tommy has already racked up an impressive record as an Internet entrepreneur. He launched his first e-commerce website while attending the University of North Dakota, with investment help from the student-run Dakota Venture Group. He eventually sold the site for a profit and launched TopHoops.com, which he also sold for a profit just three years after launching the site. He rolled the profits into Glisten.com, a high-end skin and beauty products site launched last year and based in Fargo. In June, he secured $1 million in angel investments and expects to soon offer more than 10,000 products through the site. In September, Tommy was inducted into the UND Entrepreneur Department’s Young Entrepreneur Hall of Fame for his outstanding entrepreneurial success.

Daniel Abeln

(29)

Project Manager Architecture

EAPC Architects Engineers

Grand Forks, N.D.

Daniel joined EAPC in 2010 and quickly became known for his excellent communication skills, with co-workers and with clients. He excels in project management and has a passion for providing a high level of quality control and efficiency improvements for customers. He holds a bachelor’s degree in environmental design and a master’s degree in architecture from North Dakota State University, and a master’s degree in business administrationfrom the University of Nebraska. He is an associate member of the American Institute of Architects, a LEED accredited professional and has a knowledge base in Revit.

(continued on page 42)

40 Prairie Business Magazine December 2013
|40 UNDER 40|(continued from page 38)
Quentin Obrigewitsch Nathan Johnson Tommy Leikas Daniel Abeln

Brenda Wyland

(37)

Director of Marketing

Appareo Systems LLC

Fargo, N.D.

Brenda recently joined Appareo Systems after spending five years in various roles, including a year as interim executive director, at North Dakota State University’s Research & Technology Park. Her duties at the research park included managing a $1.7 million angel fund, fostering public-private partnerships, overseeing the park’s startup companies and representing the park at the local, state and national level. Prior to that, she served as economic development director at the South Eastern Council of Governments in Sioux Falls, S.D. Brenda holds a master’s degree from the University of Sioux Falls, a bachelor’s degree from NDSU and an associate degree from Southeast Technical Institute in Sioux Falls.

Sean Todd

(34)

Director of Managed Services

NetWork Center Inc.

Fargo, N.D.

After working in the IT field for the education and health care industries for several years, Sean joined NetWork Center in 2007 as a network systems analyst. He was soon promoted into management and served in several roles before being promoted to his current position in 2011. Sean has a diverse knowledge of the technical industry and stands out for his dedication to customers, teammates and the company. He enjoys providing guidance to employees and customers and has been named employee of the year by his co-workers for three consecutive years.

Jamie Lunski

(39)

President

HB Sound & Light Grand Forks, N.D.

At the age of 19, Jamie turned a passion for music and theater into a business venture with the launch of his Grand Forksbased sound and light company, providing services for local shows, events and small commercial projects. Twenty years later, Jamie has grown his business to a regionally known technology company with locations in Grand Forks and Fargo, with more than 30 full-time employees and more than 250 part-time employees throughout North Dakota. The company provides services for customers of all sizes and has a flair for staging events. Jamie takes great pride in the community and the company often sponsors arts and entertainment activities.

Lyndsay Ulrickson

(30)

Executive Director

Souris Basin Planning Council Minot, N.D.

Lyndsay joined the Souris Basin Planning Council as a development specialist a few months after the historic Mouse River flood of 2011 and immediately began work on flood recovery assistance for several affected counties. She also wrote grants for the city of Minot and obtained millions of dollars in funding for city projects, despite having no prior grant writing experience. She was named executive director of the council this year and continues to work on a number of projects for the region, including small business gap financing for businesses and grant administration. Lyndsay is second vice president of the Minot Sertoma Club and is a member of the Ward County Advisory Council and the Minot Area Chamber of Commerce Junior Achievements. Before joining the planning council, she worked for six years at Capital Financial Services Inc. in Minot, most recently as business development manager.

(continued on page 44)

42 Prairie Business Magazine December 2013
|40 UNDER 40| (continued from page 40)
Brenda Wyland Sean Todd Jamie Lunski Lyndsay Ulrickson

Ryan Ogaard

(36)

Vice President/ Chief Information Officer

American State Bank & Trust Co.

Williston, N.D.

In his spare time, Ryan is a talented magician and contributes his talents to a variety of community events. In his professional life, he is also a bit of a magician, delivering the magic of technology to his workplace. Ryan joined the $515 million community-owned bank in 2009 and has since created an intranet that has become the go-to place for all of the bank’s internal needs, convinced the board of directors to use handheld devices for communications/information sharing and made the bank’s IT department an approachable and comfortable environment for all employees, all while overseeing the bank’s computer and information systems. Ryan is also a very active community member and was recognized for his efforts earlier this year with the Community Spirit award from the Williston Area Chamber of Commerce.

Matthew R. Kostelecky

(35)

President

B.J. Kadrmas Inc.

Dickinson, N.D.

A Dickinson, N.D., native, Matthew received a bachelor’s degree in mass communications from Minnesota State University at Moorhead and worked for several years outside of North Dakota before returning to his hometown to take on a new business venture. He joined energy land service company B.J. Kadrmas in 2008 and purchased the 30-year-old firm in 2010. This year, Matthew also became president of the company. He manages approximately 20 employees and contracted landmen and oversees millions of dollars of right-of-way and lease acquisitions. The firm’s business portfolio has increased by about 30 percent since Matthew bought the company and he plans to continue to expand its reach by adding wind, coal and other energy sources to its portfolio. Matthew is a member of many industry organizations, including the American Association of Professional Landmen, the International Right of Way Association and the American Petroleum Institute. Locally, he serves as advertising chairman for the Landman’s Association of North Dakota and is a member of the Dickinson Area Chamber of Commerce.

Amy Krueger

(39)

Executive Director

Williston Convention & Visitors Bureau

Williston, N.D.

Amy joined the Williston CVB in 2006 as a sales director and was promoted to executive director in 2008. Since then, the organization’s staff has doubled in size and the group has enhanced existing events and added new events to invite visitors to the changing city and to engage its current residents. In August, the CVB launched its new branding campaign, labeling Williston as Boomtown, USA, to acknowledge its history of booms in various industries and its current role as a major energy hub. Amy embraces the challenges associated with overseeing a CVB in a dynamically changing environment and serves on many local committees and boards, including Build a Better Tomorrow, the Clean City Committee and the Williston Downtowners Association. She was also recently elected to the board of directors for the Upper Midwest CVB.

Jaclyn Bugbee

(36)

Executive Director

Ruth Meiers

Bismarck, N.D.

Jaci is an accountant by trade and worked in that role for a number of companies in the region before focusing on fundraising and community development in positions with the Bismarck State College Foundation and the St. Alexius Foundation. In 2011, she joined the Ruth Meiers Hospitality House as executive director. The organization, which provides support for the homeless in Bismarck-Mandan, has grown significantly under her leadership, from an annual budget of about $800,000 in 2011 to $2 million this year. The group currently provides more than 200 shelter beds and eight supportive service programs in the community and is acquiring another facility in Bismarck in order to meet the community’s needs for longer-term housing for homeless veterans and their families, as well as support the growing number of newcomers who are drawn to the area’s energy industry.

44 Prairie Business Magazine December 2013 |40 UNDER 40| (continued from page 42)
Ryan Ogaard Matthew R. Kostelecky Amy Krueger Jaclyn Bugbee

Dane Braun

(26)

Staff Executive Director

North Dakota Farmers Union

Jamestown, N.D.

Dane joined the North Dakota agriculture department after receiving a master’s degree in agriculture economics from North Dakota State University and participated in working groups with other key ag groups to pass the humane animal treatment law rewrite during this year’s legislative session. Afterwards, he accepted his current position at North Dakota Farmers Union and has already earned a reputation for leadership and effective management. He is passionate about agriculture, doing right by the state’s farmers and ranchers and growing the ag industry alongside its booming energy industry. He plans to one day return to his family farm in Wheaton, Minn., where he will become the fourth generation to farm his family’s land.

Travis Kelley

(38)

Regional Vice President

Target Logistics

Williston, N.D.

As regional vice president for modular housing provider Target Logistics, Travis oversees the company’s 12 Bakken properties which provide lodging for approximately 4,000 energy industry workers. Travis and his family live in Williston, where he is based, and in the few years that he has lived and worked in North Dakota he has become the face of Target Logistics in the Bakken as well as a recognized authority on workforce lodging, site construction, catering, transportation and security. He is a member of the Williston Area Chamber of Commerce board of directors.

Greg Jahner

(38)

Senior Manager for Programming and Professional Services

National Information Solutions Cooperative

Mandan, N.D

Greg joined NISC after graduating from Minnesota State University at Moorhead in 1998 and has been a key member of numerous major initiatives that have helped the cooperative grow by ten-fold, including a methodology to leverage web tools to increase the speed of implementation for accounting software for clients throughout the country. In his current role, Greg oversees 50 employees across four offices located throughout the country. His group provides accounting and business solutions software and services to 640 cooperative members and contributes $15 million in annual revenues to NISC.

Diana Pfister

(38)

Vice President-Compliance

Dacotah Bank

Aberdeen, S.D.

Diana has spent nearly her entire professional career at the bank and has worked her way up from bookkeeper to her current role, which she has held since 2005. Diana has overseen the bank’s state and federal regulatory compliance since 2000, when the bank had $600,000 in assets and 24 locations. Currently, the bank has $2 billion in assets and operates 33 locations. The compliance and security department has grown from one employee to a staff of 10. Diana is a member of the bank’s steering committee and has participated on panels sponsored by the Federal Reserve System addressing various regulatory compliance issues.

45 www.prairiebizmag.com
Dane Braun Travis Kelley Greg Jahner Diana Pfister

Josh Buchholz

(39)

General Manager

Fargo-Moorhead RedHawks

Fargo, N.D.

Josh has spent 18 seasons with the Fargo-Moorhead RedHawks, serving in a variety of roles including clubhouse manager and director of baseball operations. He has served as the team’s general manager since 2005 and was named Northern League Executive of the Year in 2008 and 2010, and American Association Executive of the Year in 2012. He has been a part of five league championship teams, three of which he led as general manager. Josh is a native of Moorhead, Minn., and is a graduate of Concordia College in Moorhead.

Djamel Khali

(34)

Vice President

North American Operations

Ally Precision Industries

Sioux Falls, S.D.

Djamel possesses the ability to identify the gaps and needs of the agriculture application industry and to provide solutions that both minimize cost and increase efficiency. He has taken on the challenge of introducing a product suite that meets the requests of the application world and has brought leading manufacturers together to meet that goal. His technical expertise is unmatched, he favors a hands-on approach to learning and embraces change rather than accepting existing industry standards, characteristics which have made him a leader in his industry.

Mariah Prussia

(36)

Owner Xtreme Measures

Fargo, N.D.

Mariah opened Xtreme Measures, a women’s fitness facility, in 2007 with the goal of empowering women one rep at a time, one voice at a time. She is also the co-founder of The NOW Project, a nonprofit organization focused on teaching women and children self-defense, and is collaborating with Positive Motion to create workout videos focused on incorporating daily exercise in schools.

Matt Fischer

(33)

Promotional Consultant

S & S Promotional Group

COO, GW Gear

Grand Forks, N.D.

Matt began his career as a promotional consultant with S & S Promotional Group after graduating from North Dakota State University in 2005. A native of Grand Forks, he was a key member of the Greater Grand Forks Young Professionals group during its formation and continues to guide other young professionals and inspire them to take on leadership roles in their community. He frequently participates on advisory boards and boards of directors for various organizations and community projects and is well respected among his peers.

46 Prairie Business Magazine December 2013
Josh Buchholz Djamel Khali Mariah Prussia Matt Fischer

Ryan Goehner

(29)

Chief Financial Officer

Dakotaland Federal Credit Union

Huron, S.D.

Soon after joining the credit union as a financial officer in 2011, Ryan became a certified public accountant and was promoted to chief financial officer. He volunteers for Kiwanis International, Junior Achievement, Meals on Wheels and United Way Day of Caring. He holds bachelor’s degrees in business administration and accounting, and a master’s degree in public accounting from the University of South Dakota. Prior to joining DFCU, he worked for four years as a senior accountant at Williams & Co. in Yankton, S.D.

Shawn Gaddie, PE

(33)

AE2S Nexus Division Manager

AE2S Nexus

Grand Forks, N.D.

Shawn has spent 10 years in the engineering consulting industry, nine of them with AE2S. He has been instrumental in the firm’s growth from a 60-person company to the more than 200-person company it is today. He has served in various roles within the firm, including Grand Forks office operations manager and his current position as manager of the firm’s financial division, where he focuses on developing new and innovative ways to bridge the gap between financing and infrastructure solutions for the firm’s clients. He also currently serves as a specialized consultant for evaluating a proposed billion-dollar fertilizer plant to be built near Grand Forks.

Michael Helt

(33)

Relationship Banker

Alerus Financial

Grand Forks, N.D.

Michael joined Alerus Financial in 2004 and is responsible for assisting customers in identifying solutions for their financial needs. He is a member of the Greater Grand Forks Chamber of Commerce small business and leadership committees, the Holy Family Catholic Church’s Knights of Columbus Council and the Greater Grand Forks Young Professionals. He plays a vital role in recruiting members for the young professionals group and is active in securing sponsorships and participation for group events.

David Batcheller

(31)

President and COO

Appareo Systems LLC

Fargo, N.D.

David joined Appareo Systems in 2005 as a sales analyst and quickly progressed through the ranks, becoming chief operating officer in 2009 and president in 2012. During his tenure with the company, it has grown from fewer than 10 employees to more than 115. It currently operates locations in Fargo, Phoenix and Paris and has positioned itself as a leader in aerospace and agriculture. David places emphasis on recruiting the skilled engineers the company needs to continue growing and makes every effort to meet with interested students in order to keep as many locally trained engineers in the area as possible.

47 www.prairiebizmag.com
Ryan Goehner Shawn Gaddie Michael Helt David Batcheller

Eric Newell

(39) President

Stoneridge Software

Barnesville, Minn.

After spending 13 years at Great Plains Software-turned-Microsoft, Eric made the leap to small business owner in 2012 with the launch of Stoneridge Software, a Microsoft partner organization targeted toward improving the efficiency of business’ operational and financial processes. In one year, the business has grown to include 18 employees and has grossed more than $1.5 million in revenue, serving clients throughout the upper Midwest from its headquarters in tiny Barnesville, Minn. Eric chairs Barnesville’s Economic Development Authority Board and has served on the local school board and on the Community Education Advisory Board.

Kirsten Jensen

(39)

Director of Digital Marketing

Onsharp

Fargo, N.D.

She joined the company just months ago, but Kirsten’s 15 years of marketing and technology experience have already made her an invaluable member of Onsharp. Since joining the company, she has implemented a peer review process, rebuilt its digital marketing program from the ground up and increased the productivity of the digital marketing team by nearly 20 percent. She is also a member of the company’s leadership team. Before joining Onsharp, Kirsten worked for MeritCare Health Systems/Sanford Health for 13 years, most recently as director of digital marketing.

Karla Isley

(37)

Vice President of Contract Administration

Noridian Healthcare Solutions Fargo, N.D.

Karla joined Noridian in 2000 as a systems coordinator and has since served in a number of leadership roles. She was recently promoted to her current position and is responsible for all contractual requirements of the company’s federal contracts and for providing support for the company’s state Medicaid and health insurance exchange programs, among other duties, and has earned a reputation for leadership and industry involvement in the evolving health care landscape.

Karla Olson

(37)

Associate and Owner

APEX Engineering Group

Horace, N.D.

APEX opened in 2010 and has since grown from two locations and 20 employees to five locations and 52 employees serving more than 200 clients. Karla is a process engineer specializing in wastewater treatment and regularly travels from her home in Horace, near Fargo, to work sites in Minot and Dickinson. Some of her current projects include the expansion of Dickinson’s wastewater treatment system and the implementation of a system to supply reuse water to the nearby Dakota Prairie diesel refinery. Karla is a member of several industry groups and currently serves as the North Dakota delegate for the national Water Environment Federation. PB

48 Prairie Business Magazine December 2013
Eric Newell Kirsten Jensen Karla Isley Karla Olson

Need for Speed

North Dakota IT council sets out to map, improve state’s broadband infrastructure

As people and businesses become more reliant upon the Internet for day-to-day activities, the question of Internet access is no longer whether it’s available, but what kind of service is available? High-speed Internet service delivered via fiber optic networks is growing in importance as more people turn to the Internet to live-stream movies and upload videos at home and perform activities such as real-time content sharing and video conferencing at their offices. Significant bandwidth infrastructure is needed to avoid delays and crashes, but not everyone has

50 Prairie Business Magazine December 2013 |CONNECTIVITY|

Doug Burgum, Arthur Ventures co-founder and former Great Plains Software/Microsoft executive, during a technology conference in Fargo. Burgum’s “Vision 2015” called for North Dakota to capitalize on its current economic success by utilizing public/private partnerships to make the state’s Internet speed and bandwidth infrastructure the best in the world by 2015, creating an environment that would attract new businesses and make it easier for existing businesses to expand.

Interested parties gathered for a series of informal discussions shortly after Burgum unveiled his vision and at its meeting in October, the ITCND’s board of directors agreed to champion a modified version of Burgum’s challenge, noting that it fits within the group’s goal of encouraging access to affordable, state-ofthe-art IT services for all North Dakotans. The group set a course to achieve “world-class” speed and infrastructure throughout the state via a phased plan, beginning with a proposal to complete an assessment of the state’s current broadband infrastructure, user demands, and economic impact, potentially followed by a pilot project in downtown Fargo. Completing those items is expected to cost about $75,000 and the group plans to move ahead with the project only after it obtains the full cost through pledges from ITCND members and other interested parties. Contributors will receive a seat on the initiative’s advisory board, providing them the opportunity to help direct future phases of the project, which could include additional pilot sites and the implementation of a statewide fiber network.

Why Fargo?

ITCND President Gary Inman is spearheading the initiative and has taken on the role of educating stakeholders and raising funds to complete the project. By mid-November, the project had not been fully funded, although it appeared likely it would be by the end of the month, and a tentative plan was in place to send out a request for proposal in mid-December for engineering firms to submit plans for the feasibility, supply/demand and economic impact studies.

Inman says initial reactions from economic developers and stakeholders throughout the state have been positive, albeit with some expected skepticism over the choice of Fargo as a pilot site. However, he says after people see the statistics for Internet in Fargo compared to elsewhere in the state, it becomes quite clear why North Dakota’s largest city was selected as a starting point.

Data available from Ookla, a globally recognized broadband testing network, shows a distinct difference in Internet speed and cost for Fargo compared to other cities in the state, including neighboring West Fargo. On Nov. 10, for example, Ookla showed Fargo’s download speed at about 16 megabits per second (Mpbs) compared to 24 Mpbs in West Fargo. Meanwhile, users were

enjoying nearly 27 Mpbs in Grand Forks and about 29 Mpbs in Bismarck. For today’s average user, a minimum of 10 Mpbs would adequately support most activities. However, 50 Mpbs is considered fairly standard high-speed bandwidth currently. By comparison, 1 gigabit per second (Gbps), the equivalent of 1,024 Mpbs, is the intiative’s initial bandwidth target for a fully deployed fiber network, in anticipation of rapidly increasingly bandwidth demands in the future.

Fargo users are also paying significantly more for Internet access compared to other cities in the state, according to the Ookla index. The Nov. 10 data showed that Fargo users were paying about $5 per Mbps, compared to about $1.50 per Mbps in Grand Forks.

Aside from the speed and cost issues in Fargo indicated by Ookla data, ITCND selected Fargo for its first pilot site based on the fact that while rural telecommunications providers have access to federal funds to support fiber network installations, urban providers are not offered the same level of financial assistance. Therefore, while notable headway has been made in expanding fiber networks to rural areas, resulting in existing examples of 100 percent high-speed coverage areas in some parts of the state, there is no such example in the state’s cities.

52 Prairie Business Magazine December 2013 |CONNECTIVITY|
Gary Inman, president, Information Technology Council of North Dakota

“There’s actually a significant amount of fiber already in the ground all across the state and a couple of pockets that are already in this 100 percent mode, where we’d like the entire state to get to,” Inman says. “We already know what a rural piece of this would look like. We don’t know fully what the urban part would be.”

Affordability Test

Service providers say they are willing to support the initiative, but argue that Fargo’s connectivity issue is not from a lack of infrastructure. Rather, they believe users are simply either unaware of the services available to them or choose not to pay the price for high-speed connections.

“You could invest hundreds of millions of dollars to give every place in Fargo accessibility to 1 gigabit Internet, but not every building will be occupied by people who are willing to pay for it,” says Brian Crommett, sales and service manager for 702 Communications. “I don’t think it’s realistic to think Fargo will explode into this technology haven just because there’s fast Internet there.”

Crommett also points out that Ookla data may be somewhat misleading because it reports the median speed of actual use rather than availability. Therefore, while 50 Mbps is widely available throughout the city, if the majority of users purchase plans with less bandwidth, the overall speed test ratings would reflect that lower speed. “If our [Ookla] results are coming back under 20 Mpbs, it means people aren’t buying 50,” he says. “It’s not that they can’t get it. It’s that they aren’t paying for it.”

Installing fiber networks involves a substantial up-front investment by service providers in any environment. In urban areas, however, the complexities of installing around existing infrastructure, combined with a sometimes lengthy permitting processes, can make the installation particularly difficult and costly. Crommett says it costs service providers about $15 per foot to install fiber in Fargo, so providing fiber service to a multiblock area downtown could easily cost tens of thousands of dollars. Providers are willing to front the cost if they are guaranteed a market, but if it is unknown whether users in the building will sign up for service or if several providers are trenching in fiber to the same building, the potential to recoup those costs is greatly reduced. For that reason, Crommett says providers support the initiative’s goal of mapping “lit” buildings in downtown Fargo and highlighting areas that may be in need of service, although he believes in-need areas will be few. “We think it’s to every service provider’s benefit that the business community at large knows where the fiber is in town now and perhaps help us to identify areas that are underserved,” he says. “I know there are areas on the outskirts of town that don’t have access to high-

speed, but I think everybody will be surprised to see how many buildings could have 1 gigabit Internet if they were interested in paying for it.”

Burgum suggested in his Vision 2015 that cash-rich North Dakota could financially support fiber network installation in some way, either by paying to install it or subsidizing the cost for providers to do it, in order to expand accessibility and reduce the cost to consumers. Service providers don’t want to risk losing the competitive advantage of installing service to a specific building or area, however, and are leery of any state or city involvement. The ITCND says it is exploring all options for private and/or public funding. In addition to soliciting private sector contributions, Inman plans to participate in a state legislative interim IT committee meeting this month to inform the committee of the initiative and obtain legislative input on possible solutions.

“I don’t know exactly what the right answer is,” he says. “Phase 1 is about gathering the data, looking at the specific problems and understanding the biggest challenges that drive cost. Once we know where the biggest cost-drivers are, we can start to look at how to provide changes.”

Gearing up for 1G

Inman emphasizes that the overall goal of the initiative is not just to improve access throughout the state now, but to anticipate the needs of the future and ensure that future user demands are met at an affordable price. It remains to be determined exactly what speed qualifies as “world-class speed” now or five years from now, or at what cost users would deem high-speed service affordable, but Inman hopes to identify those specifics during the initial phase mapping project and supply/demand analysis. He says the analysis will include discussions with the state’s agriculture, energy and health care industries and will also take into consideration future reliability of overall transmission infrastructure. He anticipates setting goals for high-speed availability expansions and costreduction measures after the mapping project and supply/demand analysis are complete, perhaps as early as mid- to late-January. “The data will tell us what goals we can set,” he says.

Travis Durick, broadband technology manager for North Dakota’s IT department, says the current state of broadband availability in the Peace Garden state is not bad, but it could be improved. For the past two years, Durick has served as program manager for the state’s federally funded broadband mapping project, which provides a general look at broadband availability throughout the state. He’s witnessed significant broadband expansion projects come to fruition in that time and believes high-speed access is improving overall, but he supports the Dakota Fiber Initiative and its mission to map broadband access on a more granular scale. “I think it’s great,” he says. “There are

54 Prairie Business Magazine December 2013 |CONNECTIVITY|

lots of community-oriented programs in the country looking at similar problems. It’s fun to see the business community get involved and start voicing their opinions as far as what they want to see in the future.”

Durick says whether the initiative settles on 1 Gbps as a goal or a lesser speed, he appreciates that equal emphasis is being given to upload and download speeds. “Download speed has been the focus for a long time but upload speed is becoming more and more important,” he says. “Internet connections are becoming less about content consumption and more about interaction — sending your video and content out has become just as important as seeing other content. I think that’s even more true in a business scenario — Internet collaborations, Internet conferencing — being able to leverage those connections is even more important for business.”

Crommet says that as bandwidth demands increase in coming years, so too will protocols to reduce the amount of bandwidth necessary for high-speed activities. Service providers are nonetheless intent on installing infrastructure to provide the highest-speed access possible to those who want it, he says. “The future is fiber and the future is gigabit and that’s what we are all working towards right now.” PB

55 www.prairiebizmag.com Congratulations Mark Luecke on your 40 Under 40 Recognition! We appreciate your leadership, vision and collaborations. Innovation Partners’ Board of Managers and its Investment Partners www.southdakotainnovation.com
|CONNECTIVITY|

Location, location, location

Centrally located Grand Forks plans for continued, sustained growth

Don Pottinger, Northern Plains Nitrogen CEO, announces plans to build and operate a $1.7 billion nitrogen fertilizer production facility near Grand Forks, N.D., during a news conference on May 9, 2013, in Grand Forks. At left is North Dakota Gov. Jack Dalrymple and at right is Larry Mackie, NPN chief operations officer. PHOTO: FORUM NEWS SERVICE

56 Prairie Business Magazine December 2013 |TALK OF THE TOWN|

other communities and is responsible for attracting many of its new and expanding businesses — location.

“Grand Forks is being looked at from a strategic location standpoint,” says Klaus Thiessen, president and CEO of the Grand Forks Region Economic Development Corp. The city provides a central base for access to both U.S. coasts, which is a selling point for several companies currently considering locating in Grand Forks, he says. Regionally, the city serves a mid-point between the Bakken oil fields in western North Dakota and Port of Duluth-Superior in Duluth, Minn. It’s proximity to thousands of college students is another selling point for businesses looking to establish or expand where workforce is readily available, he says.

Access to the Bakken

Certainly, the city’s easy access to the Bakken via U.S. Highway 2 is a selling point not lost on local leaders. About a year ago, a collaborative marketing effort was launched to attract Bakken-related companies to the community, emphasizing that companies could avoid dealing with workforce shortages and a lack of housing and business space by relocating to Grand Forks and commuting a few hours to the oil patch when necessary. The initiative achieved some initial success, drawing several manufacturers to the area. Among them was Steffes Corp., which having grown weary of the constant turnover at its Dickinson, N.D., plant, opened a Grand Forks facility at the end of 2012 in hopes that it would be able to attract and retain skilled workers.

Rodger Pearson, Steffes Corp.’s Grand Forks division manager, says the first year of operations has proven the company’s decision to be a wise one.

“The skilled and professional employees that we have hired since we opened have exceeded our expectations for safety, quality and productivity,” he says.

The company’s Grand Forks staff has grown from 27 employees at the end of last year to 80 employees currently and Pearson says he expects the company will continue to grow as it diversifies to serve other manufacturers in addition to the oil industry.

Grand Sky

Much attention is also being paid to the development of the UAS business park and the air base’s potential to become a federal UAS test site. In October, the U.S. Air Force announced its intent to sign an enhanced use lease with Grand Forks

County to develop the park, known as Grand Sky, on 217 acres at the air base. FD Stonewater and Lynxs Group was selected to develop the master plan for the park, which could possibly undergo construction beginning in the spring. Northrop Grumman has said it will anchor the park, creating anywhere from 50 to 500 jobs at its offices there. When complete, the park could provide up to 2,000 jobs over the next 20 years.

The attraction for both the business park and the test site again hinges heavily on location, in addition to an existing knowledge base and potential workforce. According to Theissen, the establishment of the business park was spurred by the fact that multiple higher learning institutions in the area provide UAS-related training, including Northland Community and Technical College in East Grand Forks and Thief River Falls, Minn.; the University of North Dakota in Grand Forks and Lake Region State College in Devils Lake, N.D. The Center for Unmanned Aircraft Systems Research, Education and Training is located at UND and the university is the first in the world to offer a four-year UAS degree.

“We have this base of education and training and, more importantly, we’re producing the people they need,” he says. “And we are at the leading edge. We’re not just saying we want to be, we are considered to be at the leading edge internationally in a number of areas for education and training.”

Value-Added Ag

The city’s economy is diversifying, but the mainstay of Grand Forks’ economy will continue to be value-added agriculture. A number of companies in this sector have recently announced expansions, including Philadelphia Macaroni Co., Reile’s Transfer and Delivery Inc., Black Gold Farms and True North Equipment. Thiessen says the presence of these types of companies and their recent expansions are very significant for the community and representative of the continued steady growth being experienced in the area due to a strong ag economy.

In May, Northern Plains Nitrogen announced plans to locate a $1.7 billion fertilizer plant near Grand Forks. The proposed plant will utilize natural gas from the Bakken to produce approximately 2,400 tons of ammonia per day, which will be converted to other products and utilized by farmers throughout the Midwest and several Canadian provinces.

NPN Chairman Darin Anderson says the company hopes to raise between $3 million and $9 million through private investors by the end of the year to support a front-end

58 Prairie Business Magazine December 2013
|TALK OF THE TOWN|

Grant provides health IT training for rural SD providers

Need for health IT expertise spurs development of enhanced training course

Data entry and analysis has become part of the job for many health care workers throughout the country, particularly in rural areas where clinics are staffed by a handful of workers and cannot afford to retain a full-time information technology (IT) expert. However, many of those health care professionals are not trained in IT and while they may be able to perform those duties adequately, there is a need to enhance the skills and knowledge of workers performing those tasks. A network of health care providers known as the Prairie Health IT Network, led by Howard, S.D.,-based

(continued on page 62)

60 Prairie Business Magazine December 2013 |INFORMATION TECHNOLOGY|

Cautiously confident

Wells Fargo investment strategist predicts continued slow US economy recovery in 2014

Jim Paulsen, chief investment strategist at Wells Capital Management, opened his remarks during a recent invite-only economic outlook luncheon in Fargo, N.D., by acknowledging the economic strength of the region. “It’s always a pleasure to come to the economic center of the U.S.,” he said, as attendees quietly laughed and nodded in agreement.

The outlook for the rest of the country, however, is not quite as rosy. Although it is certainly improved compared to recent years, he said.

Paulsen pointed out early in his speech that consumer and business confidence is currently at a five-year high and has been the primary impact on the nation’s economy over the past year. He noted that for the first three years of recovery following the Great Recession, confidence was very low and inhibited growth. That is no longer as significant a factor heading into 2014. “We still think we have problems, but we no longer believe the world is going to end,” he said.

Another positive factor emerging this year has been global growth, he said. Economies in Europe and Japan have begun to improve, unemployment is decreasing and manufacturing and housing sectors have been expanding throughout those areas of the world as well, which could produce dividends for American companies if the U.S. dollar remains low. He noted that this may already be occurring in some areas, such as manufacturing, which experienced an uptick in demand this year.

But while the outlook is cautiously optimistic, Paulsen pointed out that the economic recovery is far from over and predicted that it will be a full decade before confidence returns to pre-recession levels. For 2014, he expects the U.S. will experience

a 3 percent growth rate, continued falling unemployment and a volatile stock market. He does not expect inflation to be a factor in the coming year, although he did note the potential for a mini-inflation scare if velocity (the rate at which money is spent) increases. Further, he expects velocity to be a constant economic stimulator for the next few years, he said.

One of the most significant factors owing to the slow U.S. recovery is its aging workforce, according to Paulsen. He said the available supply of labor is growing at a third of the pace it grew in the 1960s and that the U.S. labor force is simply not available to support economic growth of 5 to 8 percent.

One unknown, and potentially unprecedented, factor that is particularly impactful in the northern Plains region is energy independence. Paulsen said he expects the U.S. becoming energy independent to provide a “huge” economic stimulus, but because it has never happened before he could not address specific potential impacts.

In a regional outlook released Nov. 18, Wells Fargo economists noted that the Midwest economy is well-positioned for the coming year. The group expects oil production in the Bakken to continue driving demand for energy infrastructure investment and industrial products and to positively impact the economies of states surrounding North Dakota. The agriculture sector is expected to be “somewhat of a moderating influence” in 2014, according to the economists, who said the bumper corn crop of 2013 is likely a high-water mark for the commodity.

64 Prairie Business Magazine December 2013 |ECONOMIC OUTLOOK|

Business division adds dimension to Grand Forks design firm

EAPC Business Excellence focuses on productivity improvement processes

What could you do with a 50 percent productivity improvement? A new business division at EAPC Architects and Engineers offers EAPC clients another tool to improve their bottom line by removing waste and improving operational flow.

Architects and Engineers.

There are four components to the division: operational excellence, business strategy and planning, quality management and tools, and assessment and audit.

“Business Excellence is complimentary to the design and management EAPC does for our customers’ building and industrial projects in the sense that my focus is to look at the people and interactions within a building or process and to see how we can do better,” says Chad Frost, director of Business Excellence for EAPC

Frost may collaborate with building designers and clients to pinpoint areas where a company’s process can be streamlined and the square footage reduced. Business Excellence is also a way for EAPC to add value for its clients after a design project is complete by offering continuous improvement services to customers’ actual operations inside the building.

66 Prairie Business Magazine December 2013 |ARCHITECTURE & ENGINEERING|
Chad Frost, director of Business Excellence at EAPC Architects and Engineers, works with employees at Retrax to create efficiencies in its production processes.

ND energy industry gains young professionals group

Group focuses on networking, education for young energy workers

What do Bismarck, N.D., Dubai, Hong Kong and Denver have in common? Each city now hosts a chapter of Young Professionals in Energy, a nonprofit group focused on delivering networking opportunities to young members of the global energy industry. Founded in 2005, the group currently consists of 25 chapters worldwide with thousands of members, including 12,000 members in its Houston chapter. The Bismarck chapter is one of the organization’s newest branches, but membership is growing quickly and the Bismarck branch may soon be one of several YPE chapters in the booming Bakken, a sign of the region’s significance in the global energy industry and the role that young professionals play in supporting that industry.

“I think it is good publicity for the area and shows we are a focus point in the industry,” says Adam Landstrom, founder and executive director of the Bismarck chapter. “Not very many of these groups are based in a small metro area.”

Landstrom is 27 years old and has worked in the energy industry as a landman since graduating from the University of North Dakota and passing the state bar exam in 2011. He

68 Prairie Business Magazine December 2013
Adam Landstrom, founder and executive director of the Young Professionals in Energy Bismarck, N.D., chapter, currently works as a landman for Hess Corp. in Minot, N.D. PHOTO: WHITNEY MONTONYE

US oil production outstrips imports

Production in ND, Texas shale plays expected to continue outpacing US refinery demand

U.S. crude oil production in October exceeded imports for the first time in nearly two decades, starting a trend that is likely to continue for the foreseeable future as the country benefits from one of the biggest oil booms in history.

The Energy Information Administration says oil production in October was 7.7 million barrels per day (bpd), the highest for that month in 25 years, which surpassed net imports of 7.6 million bpd.

It is the latest milestone reached by the world's largest oil consumer after the shale oil revolution reversed declining output and gave fresh momentum to the oil industry in states such as North Dakota and Texas.

"I think this is huge and it's another step in this revolution that we're seeing in the energy market," says Phil Flynn, an energy analyst at the Price Futures Group in Chicago. "We're seeing our reliance on imports of crude fall every day."

In its monthly Short Term Energy Outlook, the EIA forecast U.S. oil production rising to 8.88 million bpd in December 2014 and average 8.49 million bpd throughout that year.

from 1970-1974, according to energy consultancy PIRA.

With U.S. crude oil exports virtually banned, the boom has benefited U.S. oil refineries by providing them with plentiful and cheap feedstock. Some in the industry have been speculating whether export restrictions — imposed after the 1970s Arab oil embargo provided a rude awakening to the dependence of the country on foreign oil — could be eased in years to come.

"Some natural gas and liquefied natural gas exports have begun and if that goes fairly well, it may have the U.S. revisit some of the rules we put in place after the crisis in the 70s and rethink some of those policies. That's how different the world is now," Flynn says.

Refiners, however, are free to sell gasoline and diesel and other fuels abroad without restriction. Exports hit a record high in September of 3.4 million bpd, EIA data shows.

The U.S. Energy Information Administration expects domestic oil production to exceed imports for the foreseeable future, due in part to oil produced in the Bakken.

Imports, meanwhile, will fall to as low as 5.8 million bpd in December next year and average 6.54 million bpd for the year. The EIA forecasts show production outstripping net imports for every month until the end of 2014.

The White House said the country had crossed a "historical milestone in energy independence" and credited falling oil demand to President Barack Obama's policies of increasing vehicle fuel efficiency and encouraging biofuel production.

U.S. output including natural gas liquids and biofuels has swelled 3.2 million bpd since 2009, the fastest expansion over a four-year period since a surge in Saudi Arabia's output

Rising production out of shale plays such as the Bakken in North Dakota and the Eagle Ford in Texas, coupled with pipeline bottlenecks, has caused cash and futures prices for U.S. oil to fall. WTI, the U.S. benchmark futures contract, traded at a discount of more than $20 earlier this year against international benchmark Brent, although that has since narrowed.

"EIA forecasts that growing non-OPEC crude production will continue to outpace refinery demand, leading to an average WTI discount to Brent of $10 per barrel in the fourth quarter of 2013 and $8 per barrel in 2014," EIA head Adam Sieminski said in a statement. PB

70 Prairie Business Magazine December 2013 |ENERGY|

Nominate her for Prairie Business magazine’s Top 25 Women in Business issue in March.

We are looking for women who are not only business leaders, but also excel in other areas such as leadership, community service, mentoring, entrepreneurship or balancing family and work.

Know a creative, confident, successful businesswoman in the area?
January
2014
To nominate someone, please go to prairiebizmag.com and click on the “Top 25 Women in Business” tab. Submission Deadline
17,

Interest

74 Prairie Business Magazine December 2013 Employment UNEMPLOYMENT RATE EMPLOYMENT Aug-12Aug-13 Aug-12Aug-13 North Dakota 3.00%3.20%387,796380,319 Bismarck MSA 2.52.6 61,44461,743 Fargo MSA 3.33.5116,850116,212 Grand Forks MSA 44.5 49,99851,030 Dickinson MiSA 1.41.7 22,27320,640 Jamestown MiSA 2.83.2 9,96810,632 Minot MiSA 2.52.7 36,52535,780 Wahpeton MiSA 3.53.8 11,33611,345 Williston MiSA 0.70.8 46,74236,330 South Dakota 3.80%4.50%431,332425,290 Rapid City MSA 3.44.3 68,72467,355 Sioux Falls MSA 34 130,539125,982 Aberdeen MiSA 3.43.6 22,14022,182 Brookings MiSA 3.24.1 17,35417,109 Huron MiSA 3.13.1 9,8869,737 Mitchell MiSA 2.83.4 13,37413,024 Pierre MiSA 2.63.3 12,20411,998 Spearfish MiSA 3.64.3 12,82312,581 Vermillion MiSA 3.94.5 6,5146,545 Watertown MiSA 2.93.5 19,08918,705 Yankton MiSA 3.2 4 11,60811,379 Minnesota 5.10%5.70%2,818,3062,796,185 Minneapolis-St. Paul MSA4.75.61,793,8351,758,120 Alexandria MiSA 3.74.4 20,61220,374 Bemidji MiSA 6.17.1 20,62220,135 Brainerd MiSA 5.96.5 44,83945,428 Fairmont MiSA 4.65.2 11,10510,758 Fergus Falls MiSA 4.34.8 30,35730,126 Hutchinson MiSA 56.3 19,14519,127 Marshall MiSA 4.14.4 13,84314,328 Red Wing MiSA 4.75.1 24,44225,046 Willmar MiSA 44.8 23,99122,972 Winona MiSA 4.65.3 27,90528,151 Worthington MiSA 3.64.3 10,99111,032 Exchange
Aug-13 Aug-12 183 198 $93.97 $80.65 Average Rig CountPrice Aug-13 Aug-12 9,452 7,701 911,242 701,409 Producing Wells Average Daily Production Oil Production |BY THE NUMBERS| | SPONSORED BY | Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 Canadian Dollars to One U.S. Dollar Jan2000 Jan2002 Jan2004 Jan2006 Jan2008 Jan2010 Jan2012 Jan2014 7 6 5 4 3 2 1 0 Percent E ective federal funds rate 10-year treasury constant maturity rate Change in percent of state population
of state population under 40
Total Permits Aug-13 Aug-12 276 262 2006 2007 2008 2009 2010 2011 2012 2.5 2 1.5 1 0.5 0 -0.5 -1 -1.5 -2 % of total population MN ND SD year 2005 2006 2007 2008 2009 2010 2011 2012 55 54.5 54 53.5 53 52.5 52 51.5 51 % of total population MN ND SD year
Rates
Percent
Data provided by David Flynn, chair of the University of North Dakota Department of Economics. Reach him at david.flynn@business.und.edu.

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.